March 13,
2000 - Volume vi, #10
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
Check out our incredible Classifieds
section at the end of this issue!
Hardlines is a little early this week because I'm off to the
Cologne International Hardware Fair. I'll be back Friday, March 17 -
in time for some St. Patrick's Day celebrations. Someone will be
holding down the fort at the World Headquarters until then in case
you need to call. And, of course, I'll have a report on the Cologne
Show in the next issue. - Michael
This week in Hardlines:
SODISCO-HOWDEN
BUYS WESTERN WHOLESALER Sodisco-Howden
Group has bought up Langley, B.C.-based hardware wholesaler
Smith-Barregar, giving the company a solid presence in the west, and
especially B.C. Smith-Barregar, which has been selling general
hardware to western retailers since 1946, has seen its sales drop
dramatically in recent years. One of its key customers was
Lumberland, which was bought by Revy Home Centres early in 1997.
Since then, the company has been a victim of the soft economy in B.C.
Despite
these challenges, Smith-Barregar continually restructured its
operations and upgraded its facilities, including RF technology in
the warehouse, under the direction of its president and CEO, Ross
Mascoe. Today, it ships to about 400 stores from B.C. to Manitoba. As
a result, the company is "a profitable entity," says SHG president
and CEO Tony Molluso. Molluso adds
the company will continue to operate under the S-B name as a division
of SHG, and its existing six-person sales team will remain intact.
"Our intention was not to make any changes," he says. However, Mascoe
has decided to stay on only until the transition is complete.
S-B's
general hardware assortment does not include paint, plumbing or
heating, so about 10,000 more SKUs will be added from SHG's London,
Ont. Howden division to service the west. * * * * * *
*RONA
FINALIZES CASHWAY PURCHASE On March 7,
RONA Inc. finalized its deal to purchase all shares of Cashway
Building Centres Ltd. The total cost of the transaction was close to
$50 million. The operations of Cashway will be consolidated with
RONA's and its 61 stores across Ontario will operate under the
banner, RONA Cashway. Cashway's gross revenues in 1999 were $322
million. Jim Pybus, formerly president and COO of Cashway, is now
president of RONA Cashway. "The
acquisition of Cashway spearheads RONA's dynamic development strategy
for Canada,'' says Robert Dutton, RONA's president and CEO.
COMPANIES IN THE NEWSImperial
Manufacturing Group has recently acquired the assets of Talarico Inc.
(Sheet Metal Division) located in LaSalle, Qué. From this new
facility, Imperial will manufacture HVAC pipe and fittings under the
newly incorporated name I.S.M. Industries Inc. For the year
ended January 31, 2000, sales by Hudson's Bay Co. grew 3.1% to $7.296
billion, from $7.075 billion in the previous year. Sales for The Bay
increased 4.4% to $2.594 billion. Same-store sales rose by 4.7%.
Earnings before interest and taxes (EBIT) for the year were $128.2
million, up 146.3% from $52.1 million last year. The Bay had 99
stores comprising 16.9 billion sq.ft. At Zellers, sales for the year
increased 2.2% to $4.598 billion. Same-store sales rose by 2.3%. EBIT
for the year rose 11.8% to $149.6 million from $133.8 million.
Zellers ended the year with 328 stores in 28.3 billion sq.ft.
RONA Inc.'s
new division, focused on the company's expanding retail operations
across Canada, is operating as RONA-Retail, with new offices at 2 St.
Clair Ave. West, Suite 1700, Toronto, Ont. M4V 1L5. The Bay held
job fairs last Friday and Saturday to hire 640 new sales people for
four new stores in Ontario. The job fairs were held in the malls of
the new store locations in Newmarket, Pickering, London and Hamilton.
Sears Canada
will open a new Sears department store at Guildford Place shopping
centre in Surrey, B.C. at the location formerly occupied by Eaton's.
Few changes will be made to the existing store in time for a spring
opening. A major retrofit will take place in 2001. This is Sears's
second department store in Surrey. CANADIAN
STOCK WATCH