March 6, 2000 - Volume vi, #9
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154 Check out our incredible Classifieds section at the end of this issue!Once again, I want to thank everybody who attended or sponsored our first ever HARDLINES CONTRACTOR CONFERENCE 2000. (And watch for details of our NEXT exciting contractor event):- Steve Johns of Lumber and Building Materials Association of Ontario
- Ian Gray at Dimensions Retail Systems
- Christine Waldeck of American Tools
- Steve Payne, Canadian Contractor magazine* * * * * * *CANADA'S TOP RETAILERS: THE HARDLINES WHO'S WHOThis directory must be useful because it's selling like hotcakes. I don't think there's a sales team left in Canada that doesn't have one. But if you're one of the unlucky few, order your copy of the Hardlines Who's Who today. It's a comprehensive guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers and their responsibilities. The cost for the Hardlines Who's Who is only $105 for Hardlines subscribers and $135 for non-subscribers. Order your own copy of the Hardlines Who's Who today! This week in Hardlines:STAR BUILDING MATERIALS FLOURISHES AMIDST WINNIPEG BOX STORESYes, DIY sales at Star Building Materials are down 40% since the boxes arrived in Winnipeg two years ago, Don Vincent admits. But they only accounted for 5% of the overall business to start with. "We've more than made up for it in other ways," says the company's general manager.While he misses the margins of retail, he doesn't miss the headaches that come with the high maintenance of DIYers, choosing instead to focus on the healthy contractor trade in the Winnipeg market. In 1997, Star had sales of about $28 million. The company has since bought Kilcona Lumber and the contractor division of Dominion Lumber &emdash; and built a new truss shop. The result is healthy sales increases and a niche that keeps Star from going toe-to-toe with the boxes. It specializes in commodities, leaving the décor and fixtures to Home Depot and Revy.Vincent says margins on commodities, especially drywall and insulation, are affected by the big boxes, but he won't compete on price in those lines. "It's a bit of a dilemma, but we're not going to sell it below cost."* * * * * * *HOME AND BEAVER FOCUS ON INTEGRATIONEven though it's part of Home Hardware now, Beaver Lumber continues aggressively to market the Beaver brand as an option for independent dealers. Jack Costigan, in charge of business development for Beaver, says potential new members will be encouraged to take the Beaver banner if they are building materials dealers. "The Beaver name is more accepted from a lumber and building materials perspective," he says. "That's one of the strong points of our brand."Beaver and Home have stores which conflict only in 25 markets, and reconciling those conflicts will be done on a case-by-case basis, with no changes before year's end.COMPANIES IN THE NEWSInstead of holding its own warehouse sale for dealers again this spring, Smith-Barregar threw its support behind the BSDA of B.C.'s second annual conference, taking a major participation role. The event ran this weekend in Richmond and played host to delegates from 125 stores.Home Depot Canada has remodelled its North Surrey store, even holding a grand re-opening this past weekend to re-establish its commitment to a market that's still soft. Revy has already announced it will yank its Surrey store, while Home Depot's two stores there are reportedly underperformers for the company.CGC Inc. has announced a new corporate identity, CGC, A USG Company, and a new logo. The company formerly operated under two divisions, Canadian Gypsum Co. and CGC Interiors.For the year ended December 31, 1999, Premdor had sales of US$1.14 billion, a 20% increase over the US$952.4 million reported in the same period in 1998. Net income for the year was US$43.8 million, up 42% over US$30.8 million in the same period a year earlier. Sales for the three month period ended December 31, 1999 were US$285.2 million, a 20% increase over the US$237.9 million reported in the same period in 1998. Net income for the fourth quarter was US$9.8 million, a 35% increase over the same period in 1998.Wal-Mart Stores is ending butchering operations at 180 Supercenter stores, following the chain's first successful U.S. vote to unionize. The United Food and Commercial Workers Union claimed the traditionally non-union company was trying to block future membership drives by meat workers that could in turn open the door for organizing other employees. The controversy centres on the 10-person department at a Wal-Mart Supercenter in Jacksonville, Tex., which voted 7-3 to join the UFCW. The first Wal-Mart store in Windsor, Ont., is the only other outlet in the chain that has unionized workers.Do it Best Corp. has increased its commitment to the nautical market by adding 275 Seachoice Products to its lineup. The company makes DIYproducts for small- and medium-sized boat repairs and improvements.Lafarge Corp. and Rock-Tenn Co, a U.S. recycled paperboard producer, will form a joint venture to produce gypsum paperboard liner for Lafarge's U.S. drywall manufacturing plants. Called Seven Hills Paperboard, it will own and operate a paperboard mill located at Rock-Tenn's Lynchburg, Va., manufacturing site. Lafarge owns 51% and Rock-Tenn 49% of the joint venture.CANADIAN STOCK WATCH