HARDLINES™
Canada’s electronic information service for the home improvement industry
June 04, 2001
Volume vii, #23
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Chester Dawe buyout makes it biggest in Newfoundland
* New conference from Hardlines will provide education, industry awareness
* HomeBase rolls out new concept House2Home in California
* Lowe’s to erect new distribution centre for U.S. mid-Atlantic
* * * * * *
NOW IN ITS 2nd PRINTING! (go to hardlines.ca <https://hardlines.ca/> and click on "Publications")
"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! Contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396 for more information.
* * * * * *
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 hardlines.ca <https://hardlines.ca/> and click on "Conferences and events")
To get our special hotel rate for the Hardlines Marketing Conference at the Four Points Sheraton, call 1-800-737-3211.
______________________________________________
ARE YOU UP ON OUR DAILY NEWS?
Our website has daily updates on retail and industry news that matter to you.
Keep informed. Visit http://hardlines.ca every day.
* * * * * *
Chester Dawe acquisition creates Atlantic powerhouse
Consolidation continues in Newfoundland with the acquisition today of Hickman's Building Centres by Chester Dawe Ltd. The cost of the deal was not disclosed, but will result in the largest building materials retailer in Newfoundland — and second largest in Atlantic Canada: a seven-store chain with 300 employees that generates $65 million in annual sales.
The takeover consists of three stores, all of which will operate under the Chester Dawe name. They fit well with Chester Dawe’s four existing stores, which are situated on the periphery of St. John’s. Hickman’s flagship store is a 110,000-sq.ft. site on O’Leary Avenue, while the Hickman’s store in South River Conception Bay represents a new market for Chester Dawe. The last store is in Fortune, a thriving out port five hours from St. John’s.
According to Phil Budden, general manager of Chester Dawe, all the staff at each store will remain in place, while much of the management from Hickman’s will move over, as well. Russ Mitchell, vice-president of Hickman’s, will stay on as CFO, while Brian Humphries will carry over his role as comptroller to Chester Dawe. Doug Piercey will move over as assistant operations and purchasing manager, reporting to Charlie Dowden.
Both companies are family owned and they both have comparable sales. And while both serve a mix of retail and contractor customers, Hickman’s has a higher percentage of trade business, something Chester Dawe sees an a opportunity. "We certainly anticipate getting more access to the contractor business," says Budden. The
The key difference, however, is their affiliations. Chester Dawe is one of the key members of the AWARD buying group; Hickman’s was a member of ILDC.
A.E. Hickman Co. was established by the Hickman family in 1905 as a wholesale business. Over the years the retail business developed and in 1982 Hickman’s Building Centres was formed. Once a mainstay of the province, its sales — and store count — have dwindled over the years. It had six stores in the mid-’90s, but by 1999, that had shrunk to five, two of which were shed last year, including one that was sold to Notre Dame Agencies. Sales, too, continued to fall: in 2000 they hit $32.5 million, down from a high of $37 million in 1998. However, the addition of those volumes to Chester Dawe’s will make Chester Dawe second only to Saint John-based Kent Building Supplies in Atlantic Canada.
Primary financing for the takeover came from the Newfoundland and Labrador Credit Union, as well as the two families involved through Dawe’s Investments Ltd. and A.E. Hickman Co. Ltd.
______________________________________________
Newest Hardlines conference focuses on
education on issues affecting competitiveness
The Hardlines Retail Strategies Symposium is a brand new education conference from Hardlines. The educational mandate of the half-day event responds to an industry-wide need for increased awareness of competitive issues affecting retailers. The topics covered include:
- size and positioning of the Canadian home improvement retail market;
- expansion and strategies of big box players;
- overview of the U.S. market and its current trends.
The Symposium will include an overview of Canadian market, discussing its dominant players and their competitive positioning. Buying group consolidation and retailers’ strategies to target specific customers such as contractors and female shoppers will also be discussed. Also: an analysis of the U.S. market and its key players, by John Caulfield, editor of National Home Centre News.
The Hardlines Retail Strategies Symposium will be held at the Four Points Sheraton, Toronto Airport on September 12, 2001, from 1 p.m. to 4:30 p.m. Cost is $149. It’s recommended as a stand-alone, or as an introduction to the Sixth Annual Hardlines Marketing Conference on September 13. For more information about both events, call Bev at 416-489-3396; fax: 416-489-6154, or email bev@hardlines.ca .
______________________________________________
HomeBase pushes rollout of new concept stores
The first of two waves of House2Home openings occurred last weekend with the opening of 17 of the 100,000-sq.ft. home decorating big boxes in the Los Angeles area. The stores represent HomeBase’s new retail strategy as it converts from a traditional home improvement warehouse. A total of 37 stores will open by July.
The new concept, coined "The Incredible Home Decorating Superstore," features four specialty categories: outdoor living (patio furniture, barbecues, lawn and garden, outdoor lighting, fountains and other décor); indoor living (custom-order flooring, carpets and rugs, lighting, window coverings and home furniture); home décor and accessories (bedding and bath, storage, candles, silk flowers, tabletop/kitchenware); seasonal and party goods (customized balloon bouquets and party favours, holiday merchandise).
HomeBase had US$1.44 billion in sales in 2001, down from US$1.53 billion in 2000. Faced with sliding sales, it introduced the House2Home test stores in December 2000. It intends to convert all its warehouse stores to the new home decorating superstore concept.
______________________________________________
COMPANIES IN THE NEWS
Rona Inc. announced improved first quarter profits in spite of slower sales of seasonal products. The company earned $2.8 million in the quarter ended March 31, a 6% increase from the $2.6 million of the corresponding time a year ago. Net earnings rose 12%. Sales increased 3.6% to $253.6 million from $244.8 million. Rona and its 250 unionized workers at the Boucherville distribution centre in Québec signed a new six-year collective agreement during the first quarter.
Weyerhaeuser Co. has sent a letter to shareholders of Willamette Industries Inc. encouraging them to vote for Weyerhaeuser’s slate of director nominees at the former’s upcoming annual meeting. A change in the board will inevitably affect Willamette’s continued disregard for Weyerhaeuser’s bids to acquire the company. "We believe [Willamette’s] management has made its position abundantly clear: it is simply not interested in selling," says the company. "But in remaining unyielding towards negotiating with Weyerhaeuser, Willamette has shown a high degree of disregard for the wishes of its own shareholders, as expressed in their response to the tender offer."
The U.S. has formally rejected an Ottawa proposal to appoint special envoys for the softwood lumber dispute. Government officials insisted they are not disturbed by Washington’s rejection of the envoy approach. The U.S. Coalition for Fair Lumber Imports wants the U.S. administration to impose duties as high as 78%, or nearly $8 billion a year, on Canadian lumber exports to the U.S. Canadian producers supply about 34% of the U.S. lumber market, worth about $10 billion a year to Canadian exporters.
Lowe’s Cos. will build a regional distribution centre in Northampton County, NC at a cost of US$90 million. The 1.3 million-sq.ft. facility will be erected on a 225-acre site and will supply 90-plus Lowe’s outlets in the U.S. mid-Atlantic region. Construction begins this summer and is expected to finish in about 18 months.
Canadian Tire’s commitment to higher quality goods is reflected in its latest offerings of bicycles. Claiming one in three bikes in Canada are bought from CTC, the company is trying to crack the market for more serious users, especially in off-road cycling. Adult/youth bikes are priced from $90 to $700. For kids’ bikes, the range is from $30 to $110.
Home Depot’s board of directors has declared a quarterly cash dividend of four cents per share, payable June 28, 2001. This is the 56th consecutive quarter that the company has paid a cash dividend. At his first annual meeting of the company, president and CEO Bob Nardelli noted that Home Depot more than doubled its sales in the past four years, generating US$46 billion in fiscal 2000. He also told shareholders Home Depot is mindful of global growth, and for the time being will focus on Puerto Rico, Argentina, Chile and Mexico, where it already has stores. The retailer has no immediate plans to move into Europe.
CORRECTION: I reported the sales at retail in 2000 of ILDC’s members incorrectly last week. They were actually $2 billion.
_____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
23.10 |
| Canfor |
16.95 |
7.65 |
11.19 |
| Goodfellow |
11.00 |
8.00 |
9.00 |
| Home Depot |
49.74 |
47.61 |
49.26 |
| Hudson's Bay |
17.65 |
12.40 |
16.25 |
| Lowe's |
64.90 |
34.25 |
69.30 |
| Sears Canada |
37.25 |
18.55 |
22.40 |
| Taiga Forest |
10.00 |
6.80 |
7.60 |
| West Fraser |
36.50 |
21.00 |
35.95 |
______________________________________________
"Children’s talent to endure stems from their ignorance of alternatives."
— Maya Angelou (American poet)
_______________________________________________
MARKET INDICATORS
Gross domestic product edged up 0.1% in March. Manufacturing was buoyed by higher output of automotive and pharmaceutical goods, and by a pause in the sharp contraction seen by electronic equipment makers. GDP in the wholesaling and retailing industries was little changed in March. Retail sales edged up 0.3% as auto sales picked up when consumers took advantage of dealer incentives.
Recent gains in retailer stocks reflect investor confidence that an economic recovery will arrive with this year's holiday shopping season. But fourth-quarter planning by the retailers hasn't shown that same faith. Current valuations of retail stocks, from Wal-Mart Stores Inc. to Home Depot Inc. to Gap Inc., are banking on a stronger holiday season this year, but the companies appear to be hedging their bets, buying fewer goods and hoping to make up in profit margins what they lose on volume.
U.S. consumers seem to have shrugged off the likelihood of a recession and future layoffs as they continue to spend more than they earn. The University of Michigan's final May consumer sentiment index, which measures consumers' attitudes about the economy, rose to 92.0 in May from 88.4 in April. Analysts are seeing this data as an indication that consumers remain confident enough to spend at levels sufficient to support overall economic activity.
______________________________________________
PEOPLE ON THE MOVE
Chester E. Dawe, president of Chester Dawe Ltd. in St. John’s, NF, celebrated his 97th birthday on May 17. Mr. Dawe continues to remain active in the company he founded in 1941.
______________________________________________
NOTED ...
Seven hundred retailers from across the country will gather at Retail Council of Canada’s 37th Annual Conference on June 18 & 19, 2001. The "New Game, New Rules" program will include a panel exchange between George Heller, president & CEO, Hudson's Bay Co., Mark A. Cohen, chairman & CEO of Sears Canada and Chris Dawson, vice president, Bain & Co. to discuss strategies to increase revenue, margins, growth & loyalty.
______________________________________________
OVERHEARD ...
… "I’m pretty proud that this is a non-Bay Street financed deal. We’re financed by Newfoundlanders, owned by Newfoundlanders, we’re serving Newfoundlanders and, wherever possible, we’re sourcing our products from Newfoundlanders."
— Phil Budden, general manager of Chester Dawe Ltd., comments on his company’s takeover of Hickman’s Building Centres with financing from the people of Newfoundland, through the Newfoundland and Labrador Credit Union, a non-chartered bank that provided the bulk of the financing for the deal.
… "Retailers and vendors alike need to understand our distinct industry landscape in order to increase their competitiveness. Profits are dependent on educated, market-based decisions."
— Michael McLarney, Editor and Publisher of the Hardlines Information Network, shamelessly promoting our brand new Retail Strategies Symposium on September 12, 2001.
______________________________________________
* * * * *HARDLINES MARKETPLACE* * * *
(Check out Hardlines Classifieds on the web: https://hardlines.ca/html/classifieds_new.asp
______________________________________________
NORAL INSTORE
BOOST your retail profile with instore sales support
for your products and merchandising.
Visit http://www.noralmarketing.com or call 519-439-6800 ext. 201
* * * * * *
WE KNOW THE MARKET AND THE MARKET KNOWS US!
Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.
Find out how Don Flynn and his team at Lenmark Communications can bring innovative solutions to your marketing challenges. Phone 905-475-5222; Fax 905-475-6369; dflynn@lenmarkgroup.com; www.lenmarkgroup.com
______________________________________________
SALES MANAGER — ONTARIO EAST:
ProfitMaster Canada is a national provider of information technology and e-Business Solutions to the Hardware and Building Supply Industry. Our empowered workplace environment delivers the daily challenges that motivate the team of associates to reap outstanding rewards. Due to exceptional growth we are seeking highly motivated professionals to round out our team.
Reporting to the President, the SALES MANAGER will be responsible for:
- Overseeing all sales in their region
- Initiating new client opportunities and determining district potential
- Preparing forecast information
- Developing relationships with current accounts in region
- Establishing and maintaining corporate partnerships
Requirements: post-secondary education in business/accounting or retail management; sales management experience; strong analytical, problem-solving and decision making skills; excellent communication and computer skills; ability to work well in a fast-paced team environment.
Please reply in confidence via e-mail only to hrsales@pmcanada.com
* * * * * *
SALES MANAGER, SASKATOON CUSTOMER SERVICE CENTRE:
Weyerhaeuser is seeking a sales motivated leader for this position. Duties and responsibilities will include planning and directing the CSC sales and marketing activities, providing coaching and leadership to the associates and developing successful customer relationships.
Requirements: Prior sales and management experience in the building materials distribution industry desired. Enthusiastic team leader with strong, interpersonal, relationship and communication skills. Product management experiences an asset.
Submit reúsumeú prior to June 8/01 to Weyerhaeuser 11553 154th St, Edmonton, AB T5M 3N7 Attn.: Bernie Roth; email: Bernie.Roth@Weyerhaeuser.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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca
______________________________________________
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 forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week — but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 (or $29.85 HST = $228.85) per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.
HARDLINES™
Canada’s electronic information service for the home improvement industry
June 04, 2001
Volume vii, #23
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Chester Dawe buyout makes it biggest in Newfoundland
* New conference from Hardlines will provide education, industry awareness
* HomeBase rolls out new concept House2Home in California
* Lowe’s to erect new distribution centre for U.S. mid-Atlantic
* * * * * *
NOW IN ITS 2nd PRINTING! (go to hardlines.ca <https://hardlines.ca/> and click on "Publications")
"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! Contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396 for more information.
* * * * * *
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 hardlines.ca <https://hardlines.ca/> and click on "Conferences and events")
To get our special hotel rate for the Hardlines Marketing Conference at the Four Points Sheraton, call 1-800-737-3211.
______________________________________________
ARE YOU UP ON OUR DAILY NEWS?
Our website has daily updates on retail and industry news that matter to you.
Keep informed. Visit http://hardlines.ca every day.
* * * * * *
Chester Dawe acquisition creates Atlantic powerhouse
Consolidation continues in Newfoundland with the acquisition today of Hickman's Building Centres by Chester Dawe Ltd. The cost of the deal was not disclosed, but will result in the largest building materials retailer in Newfoundland — and second largest in Atlantic Canada: a seven-store chain with 300 employees that generates $65 million in annual sales.
The takeover consists of three stores, all of which will operate under the Chester Dawe name. They fit well with Chester Dawe’s four existing stores, which are situated on the periphery of St. John’s. Hickman’s flagship store is a 110,000-sq.ft. site on O’Leary Avenue, while the Hickman’s store in South River Conception Bay represents a new market for Chester Dawe. The last store is in Fortune, a thriving out port five hours from St. John’s.
According to Phil Budden, general manager of Chester Dawe, all the staff at each store will remain in place, while much of the management from Hickman’s will move over, as well. Russ Mitchell, vice-president of Hickman’s, will stay on as CFO, while Brian Humphries will carry over his role as comptroller to Chester Dawe. Doug Piercey will move over as assistant operations and purchasing manager, reporting to Charlie Dowden.
Both companies are family owned and they both have comparable sales. And while both serve a mix of retail and contractor customers, Hickman’s has a higher percentage of trade business, something Chester Dawe sees an a opportunity. "We certainly anticipate getting more access to the contractor business," says Budden. The
The key difference, however, is their affiliations. Chester Dawe is one of the key members of the AWARD buying group; Hickman’s was a member of ILDC.
A.E. Hickman Co. was established by the Hickman family in 1905 as a wholesale business. Over the years the retail business developed and in 1982 Hickman’s Building Centres was formed. Once a mainstay of the province, its sales — and store count — have dwindled over the years. It had six stores in the mid-’90s, but by 1999, that had shrunk to five, two of which were shed last year, including one that was sold to Notre Dame Agencies. Sales, too, continued to fall: in 2000 they hit $32.5 million, down from a high of $37 million in 1998. However, the addition of those volumes to Chester Dawe’s will make Chester Dawe second only to Saint John-based Kent Building Supplies in Atlantic Canada.
Primary financing for the takeover came from the Newfoundland and Labrador Credit Union, as well as the two families involved through Dawe’s Investments Ltd. and A.E. Hickman Co. Ltd.
______________________________________________
Newest Hardlines conference focuses on
education on issues affecting competitiveness
The Hardlines Retail Strategies Symposium is a brand new education conference from Hardlines. The educational mandate of the half-day event responds to an industry-wide need for increased awareness of competitive issues affecting retailers. The topics covered include:
- size and positioning of the Canadian home improvement retail market;
- expansion and strategies of big box players;
- overview of the U.S. market and its current trends.
The Symposium will include an overview of Canadian market, discussing its dominant players and their competitive positioning. Buying group consolidation and retailers’ strategies to target specific customers such as contractors and female shoppers will also be discussed. Also: an analysis of the U.S. market and its key players, by John Caulfield, editor of National Home Centre News.
The Hardlines Retail Strategies Symposium will be held at the Four Points Sheraton, Toronto Airport on September 12, 2001, from 1 p.m. to 4:30 p.m. Cost is $149. It’s recommended as a stand-alone, or as an introduction to the Sixth Annual Hardlines Marketing Conference on September 13. For more information about both events, call Bev at 416-489-3396; fax: 416-489-6154, or email bev@hardlines.ca .
______________________________________________
HomeBase pushes rollout of new concept stores
The first of two waves of House2Home openings occurred last weekend with the opening of 17 of the 100,000-sq.ft. home decorating big boxes in the Los Angeles area. The stores represent HomeBase’s new retail strategy as it converts from a traditional home improvement warehouse. A total of 37 stores will open by July.
The new concept, coined "The Incredible Home Decorating Superstore," features four specialty categories: outdoor living (patio furniture, barbecues, lawn and garden, outdoor lighting, fountains and other décor); indoor living (custom-order flooring, carpets and rugs, lighting, window coverings and home furniture); home décor and accessories (bedding and bath, storage, candles, silk flowers, tabletop/kitchenware); seasonal and party goods (customized balloon bouquets and party favours, holiday merchandise).
HomeBase had US$1.44 billion in sales in 2001, down from US$1.53 billion in 2000. Faced with sliding sales, it introduced the House2Home test stores in December 2000. It intends to convert all its warehouse stores to the new home decorating superstore concept.
______________________________________________
COMPANIES IN THE NEWS
Rona Inc. announced improved first quarter profits in spite of slower sales of seasonal products. The company earned $2.8 million in the quarter ended March 31, a 6% increase from the $2.6 million of the corresponding time a year ago. Net earnings rose 12%. Sales increased 3.6% to $253.6 million from $244.8 million. Rona and its 250 unionized workers at the Boucherville distribution centre in Québec signed a new six-year collective agreement during the first quarter.
Weyerhaeuser Co. has sent a letter to shareholders of Willamette Industries Inc. encouraging them to vote for Weyerhaeuser’s slate of director nominees at the former’s upcoming annual meeting. A change in the board will inevitably affect Willamette’s continued disregard for Weyerhaeuser’s bids to acquire the company. "We believe [Willamette’s] management has made its position abundantly clear: it is simply not interested in selling," says the company. "But in remaining unyielding towards negotiating with Weyerhaeuser, Willamette has shown a high degree of disregard for the wishes of its own shareholders, as expressed in their response to the tender offer."
The U.S. has formally rejected an Ottawa proposal to appoint special envoys for the softwood lumber dispute. Government officials insisted they are not disturbed by Washington’s rejection of the envoy approach. The U.S. Coalition for Fair Lumber Imports wants the U.S. administration to impose duties as high as 78%, or nearly $8 billion a year, on Canadian lumber exports to the U.S. Canadian producers supply about 34% of the U.S. lumber market, worth about $10 billion a year to Canadian exporters.
Lowe’s Cos. will build a regional distribution centre in Northampton County, NC at a cost of US$90 million. The 1.3 million-sq.ft. facility will be erected on a 225-acre site and will supply 90-plus Lowe’s outlets in the U.S. mid-Atlantic region. Construction begins this summer and is expected to finish in about 18 months.
Canadian Tire’s commitment to higher quality goods is reflected in its latest offerings of bicycles. Claiming one in three bikes in Canada are bought from CTC, the company is trying to crack the market for more serious users, especially in off-road cycling. Adult/youth bikes are priced from $90 to $700. For kids’ bikes, the range is from $30 to $110.
Home Depot’s board of directors has declared a quarterly cash dividend of four cents per share, payable June 28, 2001. This is the 56th consecutive quarter that the company has paid a cash dividend. At his first annual meeting of the company, president and CEO Bob Nardelli noted that Home Depot more than doubled its sales in the past four years, generating US$46 billion in fiscal 2000. He also told shareholders Home Depot is mindful of global growth, and for the time being will focus on Puerto Rico, Argentina, Chile and Mexico, where it already has stores. The retailer has no immediate plans to move into Europe.
CORRECTION: I reported the sales at retail in 2000 of ILDC’s members incorrectly last week. They were actually $2 billion.
_____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
23.10 |
| Canfor |
16.95 |
7.65 |
11.19 |
| Goodfellow |
11.00 |
8.00 |
9.00 |
| Home Depot |
49.74 |
47.61 |
49.26 |
| Hudson's Bay |
17.65 |
12.40 |
16.25 |
| Lowe's |
64.90 |
34.25 |
69.30 |
| Sears Canada |
37.25 |
18.55 |
22.40 |
| Taiga Forest |
10.00 |
6.80 |
7.60 |
| West Fraser |
36.50 |
21.00 |
35.95 |
______________________________________________
"Children’s talent to endure stems from their ignorance of alternatives."
— Maya Angelou (American poet)
_______________________________________________
MARKET INDICATORS
Gross domestic product edged up 0.1% in March. Manufacturing was buoyed by higher output of automotive and pharmaceutical goods, and by a pause in the sharp contraction seen by electronic equipment makers. GDP in the wholesaling and retailing industries was little changed in March. Retail sales edged up 0.3% as auto sales picked up when consumers took advantage of dealer incentives.
Recent gains in retailer stocks reflect investor confidence that an economic recovery will arrive with this year's holiday shopping season. But fourth-quarter planning by the retailers hasn't shown that same faith. Current valuations of retail stocks, from Wal-Mart Stores Inc. to Home Depot Inc. to Gap Inc., are banking on a stronger holiday season this year, but the companies appear to be hedging their bets, buying fewer goods and hoping to make up in profit margins what they lose on volume.
U.S. consumers seem to have shrugged off the likelihood of a recession and future layoffs as they continue to spend more than they earn. The University of Michigan's final May consumer sentiment index, which measures consumers' attitudes about the economy, rose to 92.0 in May from 88.4 in April. Analysts are seeing this data as an indication that consumers remain confident enough to spend at levels sufficient to support overall economic activity.
______________________________________________
PEOPLE ON THE MOVE
Chester E. Dawe, president of Chester Dawe Ltd. in St. John’s, NF, celebrated his 97th birthday on May 17. Mr. Dawe continues to remain active in the company he founded in 1941.
______________________________________________
NOTED ...
Seven hundred retailers from across the country will gather at Retail Council of Canada’s 37th Annual Conference on June 18 & 19, 2001. The "New Game, New Rules" program will include a panel exchange between George Heller, president & CEO, Hudson's Bay Co., Mark A. Cohen, chairman & CEO of Sears Canada and Chris Dawson, vice president, Bain & Co. to discuss strategies to increase revenue, margins, growth & loyalty.
______________________________________________
OVERHEARD ...
… "I’m pretty proud that this is a non-Bay Street financed deal. We’re financed by Newfoundlanders, owned by Newfoundlanders, we’re serving Newfoundlanders and, wherever possible, we’re sourcing our products from Newfoundlanders."
— Phil Budden, general manager of Chester Dawe Ltd., comments on his company’s takeover of Hickman’s Building Centres with financing from the people of Newfoundland, through the Newfoundland and Labrador Credit Union, a non-chartered bank that provided the bulk of the financing for the deal.
… "Retailers and vendors alike need to understand our distinct industry landscape in order to increase their competitiveness. Profits are dependent on educated, market-based decisions."
— Michael McLarney, Editor and Publisher of the Hardlines Information Network, shamelessly promoting our brand new Retail Strategies Symposium on September 12, 2001.
______________________________________________
* * * * *HARDLINES MARKETPLACE* * * *
(Check out Hardlines Classifieds on the web: https://hardlines.ca/html/classifieds_new.asp
______________________________________________
NORAL INSTORE
BOOST your retail profile with instore sales support
for your products and merchandising.
Visit http://www.noralmarketing.com or call 519-439-6800 ext. 201
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WE KNOW THE MARKET AND THE MARKET KNOWS US!
Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.
Find out how Don Flynn and his team at Lenmark Communications can bring innovative solutions to your marketing challenges. Phone 905-475-5222; Fax 905-475-6369; dflynn@lenmarkgroup.com; www.lenmarkgroup.com
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SALES MANAGER — ONTARIO EAST:
ProfitMaster Canada is a national provider of information technology and e-Business Solutions to the Hardware and Building Supply Industry. Our empowered workplace environment delivers the daily challenges that motivate the team of associates to reap outstanding rewards. Due to exceptional growth we are seeking highly motivated professionals to round out our team.
Reporting to the President, the SALES MANAGER will be responsible for:
- Overseeing all sales in their region
- Initiating new client opportunities and determining district potential
- Preparing forecast information
- Developing relationships with current accounts in region
- Establishing and maintaining corporate partnerships
Requirements: post-secondary education in business/accounting or retail management; sales management experience; strong analytical, problem-solving and decision making skills; excellent communication and computer skills; ability to work well in a fast-paced team environment.
Please reply in confidence via e-mail only to hrsales@pmcanada.com
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SALES MANAGER, SASKATOON CUSTOMER SERVICE CENTRE:
Weyerhaeuser is seeking a sales motivated leader for this position. Duties and responsibilities will include planning and directing the CSC sales and marketing activities, providing coaching and leadership to the associates and developing successful customer relationships.
Requirements: Prior sales and management experience in the building materials distribution industry desired. Enthusiastic team leader with strong, interpersonal, relationship and communication skills. Product management experiences an asset.
Submit reúsumeú prior to June 8/01 to Weyerhaeuser 11553 154th St, Edmonton, AB T5M 3N7 Attn.: Bernie Roth; email: Bernie.Roth@Weyerhaeuser.com
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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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca
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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 forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week — but let us handle your internal routing from this end!
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Subscription: $199+$13.93 GST = $212.93 (or $29.85 HST = $228.85) per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.