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Michael McLarney, Editor & President
mike@hardlines.caBeverly Allen, Publisher
bev@hardlines.caJohn Caulfield, Contributing Editor
Phone: 416-489-3396
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March 9 , 2009, Volume xv, #10 |
In This Issue: | ||||||||||||||||||||||||||||||
“Happiness is not a state to arrive at, but a manner of traveling.” —Margaret Lee Runbeck (American author, 1905-1956) |
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Home Hardware CEO shares outlook | ||||||||||||||||||||||||||||||
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Business conditions erode in fourth quarter | ||||||||||||||||||||||||||||||
WORLD HEADQUARTERS — As conditions worsened in the country through the end of 2008, the retailers, vendors, and agents/reps working in the retail home improvement industry finally felt the pinch in earnest in the fourth quarter.Hardlines conducted its latest Business Conditions Survey of the industry in January 2009 to determine how business has changed in the fourth quarter of 2008.
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Home Depot reveals strategies for surviving 2009 | ||||||||||||||||||||||||||||||
ATLANTA — Home Depot announced last week year-end results that included a 17.3 percent drop in revenue and same-store sales that were off by 13 percent. However, Frank Blake, chairman and CEO of Home Depot, noted that, despite his company’s dismal financial performance, it still made strides to right itself last year. It reduced its inventory levels by more than $1 billion, to $10.7 billion, and got out of non-core businesses, including its non-performing Expo Design Centers.Nevertheless, Blake expects sales in 2009 to be off by another 9 percent, same-store sales to be negative, and profitability to be down another 7 percent. “2009 is an even more uncertain planning horizon,” he said during a teleconference last week. Last month, the company announced it would impose a salary freeze on all of its officers this year. It also earmarked $1 billion for capital expenditures for 2009, down from $1.85 billion in 2008 and $3.39 billion in 2007. It further expects to increase its store count by only 12 units, adding to the 2,233 units in its continuing operations in North America and China as of the end of last year. Home Depot generates about 10 percent of its annual revenue outside of the U.S., said company CFO Carol Tomé. Six of the 12 store openings announced will be international, including three in Canada. During the teleconference, Blake and other officers identified areas where Home Depot has to do better this year: • The company needs to improve its supply chain. In January, the company has opened its fifth regional distribution center, in Allentown, Pa., and by the end of 2009 its RDCs will handle product for more than 1,000 of its stores. By 2010, all of its stores will be served by RDCs. • It needs to improve its merchandising tools. While every department reported negative same-store sales growth last year, the company managed to hold the line on its gross margins, which Craig Menear, Home Depot’s executive vice president of merchandising, attributes in part to Depot’s “portfolio” strategy, where it is trying to capture project sales. (The company has some work to do here, as customer transactions over $500 fell by double-digit percentages last year.) Home Depot also returned to what was once its calling card: everyday low prices as opposed to promotional pricing. And while the company scaled back its inventory, its in-stock position in 2008 was the strongest in five years, said Blake. • It needs to continue to improve its customer service and in-store processes. Blake said that Home Depot invested $250 million last year in increasing manpower hours in its stores and improving its associates’ efficiency. • Home Depot also installed a new SAP computer system into its Canadian operations, and will evaluate that system this year to see whether to expand it to its American operations. | ||||||||||||||||||||||||||||||
Home Hardware recruits celebrity chef Anna Olson | ||||||||||||||||||||||||||||||
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Quebec retail sales increase in 2008 | ||||||||||||||||||||||||||||||
MONTREAL — Retail sales in both Quebec and Canada grew in 2008 for the thirteenth consecutive year, says a new study commissioned by the Retail Council of Quebec.In 2008, retail sales in Quebec increased by 4.7 percent, to $94.7 billion. In Quebec, electronic products and appliances grew by 7.9 percent, while household accessories stores were up 7.2 percent and hardware stores were up 5.0 percent. In all of Canada, sales increased by 3.4 percent, to $426.2 billion. Personal disposable income increased from $24,505 in 2007 to $25,560 in 2008 in Quebec. The personal disposable income of Canadians was $28,511 in 2008. The gap in disposable income between Quebec and Canada grew to -10.4 percent, from -9.2 percent in 2007. | ||||||||||||||||||||||||||||||
Vise-Grip saves life on battlefield | ||||||||||||||||||||||||||||||
LAS VEGAS — Irwin Industrial Tools, a Newell Rubbermaid company, and maker of the Vise-Grip locking pliers, held a “Tell Us Your Irwin Vise-Grip Story” contest to determine who had the most unusual or imaginative experience using the tool. That award went to Dr. Bryan Fox of Chesapeake, Va., an orthopedic surgeon for the United States Navy. He used a Vise-Grip to perform spinal surgery during Operation Iraqi Freedom.A member of the U.S. Navy for more than 25 years, Dr. Fox found a unique use for his Vise-Grip as a spine surgeon on the battlefield in the Middle East. In the heat of battle, Dr. Fox needed to perform emergency surgery on an injured soldier who had a combination of screws and rods that had been implanted into his infected spine. Without the tools necessary to deal with the soldier’s spine implants, Dr. Fox used a pair of Vise-Grips to remove the rods and screws, effectively saving the soldier’s life. | ||||||||||||||||||||||||||||||
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NEWS IN BRIEF |
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HARDLINES Quarterly Report 1Q Just Released! * How many new home enhancement store formats were introduced to Canada last year? * How many buying groups disappeared last year?![]() |
PEOPLE ON THE MOVE |
Peter Casey, an industry veteran who spent most of his career in the gypsum wallboard business (starting at the Lafarge plant in Corner Brook, moving to Federal Gypsum in Port Hawesbury ,N.S., until that plant closed in June 2008), has opened his own agency, Casey Agencies. He represents the following companies in Atlantic Canada: Acadia Distribution – Newfoundland and Cape Breton; Horizon Laminates – Newfoundland and Maritimes; Nuway Cabinet Doors – Newfoundland and Maritimes; Square Deal Distributors – Newfoundland and Maritimes; Kento Windows and Entrance Systems – Maritimes; SBS Limited – Maritimes. (pcasey@nl.rogers.com or 709-728-1951) To place a listing in our “People on the Move” section, please send me the information, including the person’s name, title and contact email or phone number, if desired at mike@hardlines.ca. We reserve the right to edit items for length.—Michael |
ECONOMIC INDICATORS |
The value of building permits issued in January fell 4.6 percent, to $4.4 billion. In the residential sector, the value of permits fell 17.5 percent to $2.2 billion. Both multi-family and single-family permits suffered declines. The value of permits in the non-residential sector increased 12.2 percent to $2.3 billion, due mainly to higher construction intentions for institutional and commercial permits in Ontario. (Stats Canada) |
NOTED... |
AQMAT, the Quebec Hardware and Building Materials Association, is hosting its first-ever “Congrès des décideurs” at the Hyatt Regency Hotel, Complexe Desjardins, in Montréal. The one-day event, March 15, will feature Hardlines’ own rédacteur en chef, Michael McLarney (don’t worry, they’ll have simultaneous translation for this). Also: Normand Bergeron, Deputy Minister of Natural Resources for the province of Quebec. For more info and to register, click here or call: 450-646-5842. |
MORE NOTED... |
Someone asked me how big the Orgill dealer show was. Held last month in Orlando, Fla., it was spread across more than 500,000 square feet. Featuring about 1,000 exhibitor booths, Orgill claims the show is the largest independent show in North America. —Michael |
Industry Resumés |
Well-spoken, energetic, confident, and personable, the type of person on whom your customers and employees will rely. Click here to download this resumé |
A seasoned veteran with a wealth of experience, on the front lines of Retailing. Personable, energetic and dedicated to providing Exceptional Customer Service. Click here to download this resumé |
A sales leader experienced in coaching, managing and developing sales teams. Click here to download this resumé |
A high energy, results oriented, hands on sales professional with proven successes. A leader and team player , able to get the job done. Click here to download this resumé |
Results-oriented, charismatic and confident female for Account Management in the Calgary area. Inheritant aptitude and seven renovation projects under belt ensures industry product knowledge. Click here to download this resumé |
A problem solving Sales and Marketing Manager with over 25 Years of marketing, sales and communication experience with major retail, industrial and automotive accounts in Canada. Click here to download this resumé |
LBM and home improvement industry specialist looking for a position that he can add value to the corporation or buying group. Click here to download this resumé |
Accomplished strategic marketing management professional and team leader who leverages strong interpersonal skills, flexibility and teamwork to achieve business objectives. Click here to download this resumé |
A Senior Marketing Professional with extensive experience in the non-food CPG industry, focusing on product and channel management.. Click here to download this resumé |
I am an accomplished sales professional and solution-oriented person who thrives in challenging, fast paced environments where my performance directly impacts the bottom line. Click here to download this resumé |
Experienced Sales Accounts Manager - Senior Buyer with 20 years of knowledge and contacts in the building supply industry. Click here to download this resumé |
Enthusiastic, versatile buyer/category manager with experience in sourcing a wide assortment of goods and services. Click here to download this resumé |
Entrepreneurially focused, front-line retail marketing professional with organizational and strategic marketing talents. Click here to download this resumé |
Seasoned Territory Manager - skilled in building and maintaining customer relationships in the retail building supply channel and industrial tooling & consumables sector. Click here to download this resumé |
Well respected Sales Professional, established relationships in Mid West and South West Ontario. An excellent team player who achieves ongoing success with peers and customers. Click here to download this resumé |
Strategic Sales and Marketing Executive available to achieve your top line and bottom line results during these challenging economic times…..If it is leadership, entrepreneurial spirit and passion you seek, look no further. Click here to download this resumé |
Sales professional - established relationships with key clients in the hardware, building materials, and paint industries, team player, superior business development skills, competitive, enjoys challenges. Click here to download this resumé |
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