HARDLINES™
Five years serving Canada's home improvement industry
May 15, 2000 - Volume vi, #19
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:
* Sodisco-Howden focuses on Pro banner
* Sears wants to be $10 billion company by 2003
* Hardlines Conference to feature Newell president
* New house prices up 2% year over year
* * * * * *Hardlines Networking EventPERSONAL MANAGEMENT WORKSHOP El Rancho Relaxo Bar & Grille May 24, 4-9 p.m., Toronto"GETTING ORGANIZED" -- Management Workshop with organizational guru Estelle Gee. We'll have some fun breaking the ice and learning some important self-management skills. Plus: Country & western band The Wayward Angels. Don't forget to bring lots of business cards!WHERE: El Rancho Relaxo Bar & Grill WHEN: May 24, 4-9 p.m., Toronto Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts, sharpen their personal skills -- and just have fun. Call Bev for details at 416-489-3396, extension 2. Call Beverly at 426-489-3396, ext. 2, or e-mail: bev@hardlinesfax.com for details!Ticketsare only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more!Check out last year's event!We are pleased to have ACNielsen join us as sponsor of the Third Annual Hardlines Networking Event. We also wish to thank the following companies for their support:Ace Hardware CanadaBeaver LumberCanadian Tire Corp.Hardware Merchandising
Home Hardware Stores Ltd.
Proforma (our print guy)
Sensible Insurance (our financial advisor)* * * * * *"MAKE THE CONNECTION" -- with Annette Verschuren, President of Home Depot Canada, who will be guest speaker at the inaugural event and membership drive of the Women's Consumer Products Network, Tuesday, May 16, 2000: 5:30 Reception, 6:30 Dinner. At the Sheraton Parkway Hotel, 600 Hwy #7 E., Richmond Hill, Ont.June 27: WCPN Golf Tournament.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 is proud to be a sponsor of the WCPN)* * * * * *SODISCO-HOWDEN REDUCES BANNER NAMES, FLYERSSodisco-Howden Group Inc. has completed the first stage of the rationalization of its various banners. Almost 400 of the company's 750 bannered dealers -- 350 of them in Québec -- have made the switch to the Pro name. The move to create one national store brand for its franchise dealers is also expected to provide cost savings by eliminating multiple flyers.Sodisco-Howden has historically operated a variety of banners for its franchise dealers, including Mat Expert, Novico, Pro and Unitotal. Novico, which had some stores in English Canada, was dropped there last year.Commenting on the transition, Pierre Racette, vice-president marketing for Sodisco-Howden, says the Pro brand "appeals to the independent dealer who wants to maintain their independence. We are the alternative for the independent dealer."Focus on the Pro banner will include an expanded private label program. Private label products will grow from the current 300-400 to as many as 1,000 by next year. Sodisco-Howden produces 30 million flyers a year, but had to create 96 versions under five different banner names. Now those flyers will be under one name.The exception to this deal is Do-it center, the banner operated by the Howden division for its larger home centre dealers. It will remain a stand-alone program., says Bill Wilson, vice-president and general manager of the Howden division, and the company will continue to invest in the the banner and make it available to new dealers. There are about 55 Do-it dealers across the country, with four new dealer inquiries currently under review, says Wilson.* * * * * *SEARS EXPECTS BIG SALES FROM INTERNETSears Canada intends to be a $10 billion company by 2003, by growing at twice the rate of the market and changing from a "vertical" structure to a "horizontal" one. Paul Walters, CEO of Sears Canada, shared his company's plans at a recent meeting in Toronto of the Canadian Hardware and Housewares Manufacturers Association.Plans include more stores, expanded online sales ($170 million this year and $665 million by 2003), and nationwide reselling of gas and electricity (as tested last year in Ottawa). Hardware sales remain strong even with the company's emphasis on other categories. "Craftsman does great even though we treat it poorly," he admits.* * * * * *HARDLINES CONFERENCE WILL INCLUDE VENDOR PERSPECTIVEThe president of Canada's only adult video chain and the head of one of the world's most diverse hardlines manufacturers will take turns at the podium of the fifth annual Hardlines Marketing Conference, September 14, 2000.Tom Ferguson, president and COO of Newell Rubbermaid, will offer a vendor's perspective on the challenges that change has brought to home improvement retailing. Newell Rubbermaid owns numerous companies around the world in hardlines, décor and stationery. Randy Jorgensen, founder of AOV Canada, will present an innovative niche concept that has led the way in new retail formats and online interactivity.These speakers join our keynote, Pat Farrah, executive vice-president of merchandising for The Home Depot in Atlanta; Sid Doolittle, retail analyst from MacMillan/Doolittle in Chicago; Will Raap, president of Gardener's Supply in Burlington, Va.; and Tim Silk, from the faculty of the University of Western Ontario's Ivey Business School.The Hardlines Marketing Conference is held each year in Toronto to provide a showcase for the stories and insights of leading retail figures from around the world. This year's conference will be held at the Marriott Hotel in Toronto on September 14, and will play host to more than 175 retail and supplier executives. For more information, call us at 416-489-3396 or browse our site.* * * * * *MILLWORK PREPARES TO DO BATTLE WITH THE BIG BOXMillwork Home Centre celebrated its 50th anniversary this past weekend, with a grand re-opening celebration. The I.L.D.C. member has a 55,000-sq.ft. store in Oshawa and another, smaller one, in Ajax, Ont. and estimated sales of $40 million. The Oshawa store underwent refurbishing that included new, warehouse-style fixturing. As it prepares for the arrival of big boxes right in Oshawa, Millwork touts its Canadian owned and operated status, and founder Ed Lupton's distinction as one of this country's retailers of the century, as chosen by Hardware Merchandising magazine.COMPANIES IN THE NEWSWith total sales by all dealers climbing 9.25% to $985 million in 1999, Sexton Group hopes to reach $1 billion this year. Sexton has 244 members, mainly in Western Canada.Several U.S. organizations, including the National Association of Home Builders, Home Depot and other big buyers of lumber, have formed a new coalition, American Consumers for Affordable Homes. The coalition has launched a push in Congress to block the Clinton administration from renewing the 1996 softwood lumber agreement, which puts quotas on lumber being shipped from Canada. Meanwhile, U.S. lumber companies are seeking a bridging agreement that would continue some form of quotas until Canadian provinces agree to end their so-called subsidies.Sears Canada opened a new Sears Furniture and Appliances store in Sherbrooke, Qué., on Saturday. The 43,000-sq.ft. store has a staff of 27, including 14 furniture/home decor and major appliance consultants. The store offers 36,000 sq.ft. of furniture, rugs and accent decor items, while a 6,500-sq.ft. Brand Central department features major appliances.Do it Best Corp. has launched a new online service: free Internet service to its member dealers and their customers. The program is intended to create a virtual community while saving its customers money. The deal, which is supported by advertising, is being offered in partnership with FreeInternet.com, an Internet service provider.Sears, Roebuck and Co. reports that it's considering building free-standing home electronics and appliance stores, in the face of growing competition. Home Depot will carry appliances as of this summer. The stores will range in size from 12,000 to 15,000 sq.ft.CANADIAN STOCK WATCH