HARDLINES™ Five years serving Canada's home improvement industry June 19, 2000 - Volume vi, #24 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: * Wayne Sales in Harvard * Sodisco-Howden in Vancouver * Canadian Tire in more automotive * Adult Depot in hot water with Home Depot * Building permits in decline * * * * * * HARDLINES APPOINTMENTS I am pleased to announce the following appointments at Hardlines/McLarneyCom: In light of her contribution to the growth of the business, Beverly Allen has been promoted to Marketing Manager for Hardlines, in addition to her duties as Business Manager of McLarneyCom. Nancy Wright joins us at the World Headquarters as Administrative Assistant for Hardlines/McLarneyCom. Thanks to your support, our team keeps growing! - Michael * * * * * * CANADIAN TIRE VP GETS EXECUTIVE TRAINING Wayne Sales, executive vice-president retail at Canadian Tire Corp., has just returned from an advanced management course at Harvard Business School in Boston, renewing speculation about his candidacy for the top job at CTC. Stephen Bachand, the current president and CEO, announced earlier this year that he will retire at the end of 2000. However, the decision to send Sales back to school was made some months before Bachand made his announcement, says CTC. "It doesn't mean Wayne's not a possible candidate," says Alan Goddard, CTC's vice-president, corporate affairs. "But the board is conducting a North America-wide search and expects a decision sometime later in the summer." The Harvard courses run from six to nine weeks in length and cost anywhere from US$30,000-US$45,000. David Grubbe, president and CEO of TruServ Canada, took a crash MBA course at Queen's University in Kingston, Ont., when he was chosen to run that company eight years ago. "Normally, when a company spends that kind of money to send you to one of those things, it's not to make you look better," says Grubbe. Sales graduated from his course this past weekend. SODISCO-HOWDEN WILL SUPPLY HARDWARE TO WINDSOR PLYWOOD The Smith-Barregar division of Sodisco-Howden Group has concluded an agreement to be dominant supplier of hardware to Windsor Plywood. Sodisco bought hardware distributor Smith-Barregar in March and retained its sales staff to service BC. Surrey, BC-based Windsor operates 48 franchise building centres and 13 corporately owned outlets. With the exception of two in the U.S., the stores are in Western Canada. "We have had a strong relationship with Smith-Barregar for many years," says Al Wightman, operations manager for Windsor Plywood. "With the acquisition by Sodisco-Howden, they are now more strategic to us." According to the Hardlines Who's Who, Windsor Plywood is one of Canada's top ten building centre chains.  
COMPANIES IN THE NEWS Hudson's Bay Co. will acquire three former Eaton's locations, two in Ontario (Bramalea and Orleans) and the third in Red Deer, AB. That brings the total number of Eaton's acquisitions by Hudson's Bay to 16. PartSource, the stand-alone automotive retail concept by Canadian Tire, has purchased the assets of Drivers/Auto Village, an automotive chain with nine stores located in Edmonton, Calgary, Saskatoon, Regina and Moose Jaw. They will be converted to franchises, like the 15 existing PartSource stores, which are located in Alberta, Saskatchewan and Ontario. Wayne Scrivens, owner of Drivers/Auto Village, joins the management of PartSource. Canadian Tire expects to roll out as many as 200 PartSource stores across the country. Canadian Tire opened its latest "next generation" store in Mississauga, ON, last week. The 80,000-sq.ft. store has 53,000 sq.ft. of retail (including a 5,000-sq.ft. Kitchen Place) and has an additional 20,000-sq.ft. garden centre. The store replaces a 24,000-sq.ft. outlet. ICI Paints, through its Glidden Paint division, will take over production of the Ralph Lauren Home line of of paints in an exclusive license agreement that becomes effective January 1, 2001. Sherwin Williams will continue to distribute Ralph Lauren paint until that time. Under the new agreement, Glidden will be responsible for the sales, distribution and manufacturing of Ralph Lauren paint, while Ralph Lauren Home will be responsible for the design and marketing.
CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Cameron Ashley 18.31 7.25 18 5/16
Canadian Tire 46.00 19.10 22.90
Canfor 19.25 4.25 13.00
Goodfellow 12.25 7.50 11.00
Home Depot 70.00 35.75 49 13/16
Hudsons Bay 23.85 12.70 17.00
Lowe's Cos. 67.25 40.75 43
Sears Canada 42.50 29.00 32.90
Taiga Forest 14.75 9.00 9.50
West Fraser 41.00 28.00 30.80
"A desk is a dangerous place from which to watch the world." - John Le Carré (British diplomat and novelist)
PEOPLE ON THE MOVE Jack Hayes has departed from Home Depot Canada, where he was vice-president, merchandising. No replacement has been named yet. (604-736-8501) Two Canadian retailers have been awarded International "Young Retailer of the Year." They are Kevin Steckler, co-owner of the True Value hardware store in Sylvan Lake, AB; and Philip Fynbo, manager of Essex Home Hardware in Essex, ON. The prize, jointly sponsored by American Tools, 3M, the American Hardware Manufacturers Association and the National Retail Hardware Association, will be presented at the NRHA's annual convention, which is being held in Canada this year at Deerhurst Inn in Huntsville, ON, July 23-25. (317-290-0338)  
OVERHEARD... Home Depot is feeling the heat in Florida, but not because of the weather. According to a report in the Globe & Mail last week, it's "Adult Depot," a club in West Palm Beach that not only borrows from the Home Depot name, but rips off its trademark orange colour and "Homer" mascot. The only tool in this character's pouch is a sex toy. The world's second largest retailer is suing the club for "degrading" and "diluting" its trademarks.  
MARKET INDICATORS Building permits issued by municipalities declined 8.9% in April from March, according to Stats Canada. A big drop in residential intentions was the main reason. They declined 15.2% in April compared with March, while non-residential permits dropped only 0.7%. The value of building permits for single-family dwellings went down 10.7% to $1.2 billion, the third consecutive monthly decline. Multiple-family building intentions fell 26.9% to $366 million. However, year over year, residential building permits were up 11.8% for the first four months of 2000, compared with 1999.  
UNDERSTANDING THE CANADIAN MARKET: Seminar and reception for foreign consulates, international trade offices, commercial services and potential importers: June 28, 2000, in Toronto. Presented in partnership with the Canadian Hardware and Building Materials Show. If you're one of the above and didn't get an invite, call us! HARDLINES WHO'S WHO: Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July. HARDLINES INDUSTRY REPORT: HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is! FIFTH ANNUAL HARDLINES MARKETING CONFERENCE: September 14, 2000. An incredible one-day symposium featuring some of North America's leaders in retail! Expect about 200 retail and vendor executives to attend! THE WOMEN'S CONSUMER PRODUCTS NETWORK June 27: WCPN Golf Tournament (Sorry - sold out!). August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare. For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org  
Hardlines Classifieds Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America's key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details. * * * * * * * HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: bev@hardlinesfax.com © 2000 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.  
    HARDLINES™ Five years serving Canada's home improvement industry June 19, 2000 - Volume vi, #24 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: * Wayne Sales in Harvard * Sodisco-Howden in Vancouver * Canadian Tire in more automotive * Adult Depot in hot water with Home Depot * Building permits in decline * * * * * * HARDLINES APPOINTMENTS I am pleased to announce the following appointments at Hardlines/McLarneyCom: In light of her contribution to the growth of the business, Beverly Allen has been promoted to Marketing Manager for Hardlines, in addition to her duties as Business Manager of McLarneyCom. Nancy Wright joins us at the World Headquarters as Administrative Assistant for Hardlines/McLarneyCom. Thanks to your support, our team keeps growing! - Michael * * * * * * CANADIAN TIRE VP GETS EXECUTIVE TRAINING Wayne Sales, executive vice-president retail at Canadian Tire Corp., has just returned from an advanced management course at Harvard Business School in Boston, renewing speculation about his candidacy for the top job at CTC. Stephen Bachand, the current president and CEO, announced earlier this year that he will retire at the end of 2000. However, the decision to send Sales back to school was made some months before Bachand made his announcement, says CTC. "It doesn't mean Wayne's not a possible candidate," says Alan Goddard, CTC's vice-president, corporate affairs. "But the board is conducting a North America-wide search and expects a decision sometime later in the summer." The Harvard courses run from six to nine weeks in length and cost anywhere from US$30,000-US$45,000. David Grubbe, president and CEO of TruServ Canada, took a crash MBA course at Queen's University in Kingston, Ont., when he was chosen to run that company eight years ago. "Normally, when a company spends that kind of money to send you to one of those things, it's not to make you look better," says Grubbe. Sales graduated from his course this past weekend. SODISCO-HOWDEN WILL SUPPLY HARDWARE TO WINDSOR PLYWOOD The Smith-Barregar division of Sodisco-Howden Group has concluded an agreement to be dominant supplier of hardware to Windsor Plywood. Sodisco bought hardware distributor Smith-Barregar in March and retained its sales staff to service BC. Surrey, BC-based Windsor operates 48 franchise building centres and 13 corporately owned outlets. With the exception of two in the U.S., the stores are in Western Canada. "We have had a strong relationship with Smith-Barregar for many years," says Al Wightman, operations manager for Windsor Plywood. "With the acquisition by Sodisco-Howden, they are now more strategic to us." According to the Hardlines Who's Who, Windsor Plywood is one of Canada's top ten building centre chains.  
COMPANIES IN THE NEWS Hudson's Bay Co. will acquire three former Eaton's locations, two in Ontario (Bramalea and Orleans) and the third in Red Deer, AB. That brings the total number of Eaton's acquisitions by Hudson's Bay to 16. PartSource, the stand-alone automotive retail concept by Canadian Tire, has purchased the assets of Drivers/Auto Village, an automotive chain with nine stores located in Edmonton, Calgary, Saskatoon, Regina and Moose Jaw. They will be converted to franchises, like the 15 existing PartSource stores, which are located in Alberta, Saskatchewan and Ontario. Wayne Scrivens, owner of Drivers/Auto Village, joins the management of PartSource. Canadian Tire expects to roll out as many as 200 PartSource stores across the country. Canadian Tire opened its latest "next generation" store in Mississauga, ON, last week. The 80,000-sq.ft. store has 53,000 sq.ft. of retail (including a 5,000-sq.ft. Kitchen Place) and has an additional 20,000-sq.ft. garden centre. The store replaces a 24,000-sq.ft. outlet. ICI Paints, through its Glidden Paint division, will take over production of the Ralph Lauren Home line of of paints in an exclusive license agreement that becomes effective January 1, 2001. Sherwin Williams will continue to distribute Ralph Lauren paint until that time. Under the new agreement, Glidden will be responsible for the sales, distribution and manufacturing of Ralph Lauren paint, while Ralph Lauren Home will be responsible for the design and marketing.
CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Cameron Ashley 18.31 7.25 18 5/16
Canadian Tire 46.00 19.10 22.90
Canfor 19.25 4.25 13.00
Goodfellow 12.25 7.50 11.00
Home Depot 70.00 35.75 49 13/16
Hudsons Bay 23.85 12.70 17.00
Lowe's Cos. 67.25 40.75 43
Sears Canada 42.50 29.00 32.90
Taiga Forest 14.75 9.00 9.50
West Fraser 41.00 28.00 30.80
"A desk is a dangerous place from which to watch the world." - John Le Carré (British diplomat and novelist)
PEOPLE ON THE MOVE Jack Hayes has departed from Home Depot Canada, where he was vice-president, merchandising. No replacement has been named yet. (604-736-8501) Two Canadian retailers have been awarded International "Young Retailer of the Year." They are Kevin Steckler, co-owner of the True Value hardware store in Sylvan Lake, AB; and Philip Fynbo, manager of Essex Home Hardware in Essex, ON. The prize, jointly sponsored by American Tools, 3M, the American Hardware Manufacturers Association and the National Retail Hardware Association, will be presented at the NRHA's annual convention, which is being held in Canada this year at Deerhurst Inn in Huntsville, ON, July 23-25. (317-290-0338)  
OVERHEARD... Home Depot is feeling the heat in Florida, but not because of the weather. According to a report in the Globe & Mail last week, it's "Adult Depot," a club in West Palm Beach that not only borrows from the Home Depot name, but rips off its trademark orange colour and "Homer" mascot. The only tool in this character's pouch is a sex toy. The world's second largest retailer is suing the club for "degrading" and "diluting" its trademarks.  
MARKET INDICATORS Building permits issued by municipalities declined 8.9% in April from March, according to Stats Canada. A big drop in residential intentions was the main reason. They declined 15.2% in April compared with March, while non-residential permits dropped only 0.7%. The value of building permits for single-family dwellings went down 10.7% to $1.2 billion, the third consecutive monthly decline. Multiple-family building intentions fell 26.9% to $366 million. However, year over year, residential building permits were up 11.8% for the first four months of 2000, compared with 1999.  
UNDERSTANDING THE CANADIAN MARKET: Seminar and reception for foreign consulates, international trade offices, commercial services and potential importers: June 28, 2000, in Toronto. Presented in partnership with the Canadian Hardware and Building Materials Show. If you're one of the above and didn't get an invite, call us! HARDLINES WHO'S WHO: Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July. HARDLINES INDUSTRY REPORT: HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is! FIFTH ANNUAL HARDLINES MARKETING CONFERENCE: September 14, 2000. An incredible one-day symposium featuring some of North America's leaders in retail! Expect about 200 retail and vendor executives to attend! THE WOMEN'S CONSUMER PRODUCTS NETWORK June 27: WCPN Golf Tournament (Sorry - sold out!). August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare. For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org  
Hardlines Classifieds Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America's key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details. * * * * * * * HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: bev@hardlinesfax.com © 2000 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.