HARDLINES™
Five years serving Canada's home improvement industry
May 8, 2000 - Volume vi, #18
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:
* Kent works on next big box, developing small stores too
* Lansing's refurbished store focuses solely on contractors
* Tim-BR Mart takes on the Stanley Cup
* Canadian Tire records lower profits in first quarter
* * * * * *Hardlines Networking EventPERSONAL MANAGEMENT WORKSHOP El Rancho Relaxo Bar & Grille May 24, 4-9 p.m., Toronto"Getting Organized" &emdash; 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!Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts, sharpen their personal skills &emdash; 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!* * * * * *Looking for new personnel or new lines? Hardlines Classifieds are read each week by North America's key decision makers in home improvement retailing and manufacturing. Get results fast. Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.* * * * * *KENT PLANS NEXT BIG BOX, DEVELOPS PROTOTYPE FOR SMALL STORESKent Building Materials is continuing expansion of both its big box and traditional formats as it braces for the arrival of Home Depot in Atlantic Canada. Kent currently has five big boxes and 13 building centres. A sixth box is slated to open in St. John, N.B., this fall, where an existing Kent store is being closed to make way for the large-surface outlet. Another big box will open in the Spring of 2001 in St. John's, Nfld., making it the second for that city. It will be in Mount Pearl, on the opposite side of the city from the existing store.Kent's inaugural box store, in Halifax, is currently undergoing expansion from 85,000 sq.ft. to more than 100,000 sq.ft.Kent is also committed to its traditional format stores, however, says Stewart Valcour, general manager of Kent. The company is currently refurbishing the Truro, N.S., store, which will become the prototype for a concept featuring a larger yard and expanded assortments. "If it flies, we'll try this concept at other locations," says Valcour.* * * * * *TIM-BR MART NAME GETS NATIONAL PROMO DURING PLAYOFFSSince expanding the Tim-BR Mart name to all its English-market dealers, Matreco member groups across the country have been working to build brand recognition among consumers, usually with programs specific to each market. Promotion goes national with a TV ad on the Stanley Cup playoffs, which debuted during the Leafs/Devils game on April 29. Various versions of the commercial were produced, including a series of product tags.Tim-Br-Marts Ltd. in Western Canada lent their (slightly modified) brand name to fellow Matreco members A.W.A.R.D. in Atlantic Canada and Homecare in Ontario as a way to generate a national brand for its member dealers."The biggest challenge is making sure the groups represent the same culture across the country," says Phil Otto of Design Communications. His Bedford, N.S., promotion and design company developed the updated Tim-BR Mart look and logo. He says the brand's values of home town quality, price and service are important to help consumers "to differentiate from the big boxes and support the guy in your community."Each group continues its own initiatives. For example, A.W.A.R.D. just its newest home plans catalogue &endash; a book of home designs and floor plans under the Tim-BR Mart brand. "Our members benefit greatly from the home plans catalogue, because it ensure building supplies are sold as a package, instead of piece by piece," says Tom Smith, president of A.W.A.R.D. Homecare in Ontario, the latest Matreco member to adopt the the Tim-BR Mart banner for its dealers, uses ongoing promotions at Toronto Blue Jays baseball games at SkyDome. Every week the group hosts "Tim-BR Mart Tuesday," complete with deck giveaways and chances to win a cottage.In the west, Tim-BR-Marts sponsors Shell Busey's popular Home Check TV program, as well as NASCAR racing and Vancouver Grizzlies games.* * * * * *LANSING REFURBISHES ETOBICOKE STORE FOR CONTRACTOR BUSINESSIn response to its growing trade and contractor business, Lansing Buildall has just finished a $1.5-million expansion of its Martin Grove store in Etobicoke, Ont. Originally refitted as Lansing's model home centre (and head office location), the new format of the store is geared mainly to the trades. It has been expanded to 42,000 sq.ft. of retail, including six-ft. wide aisles with longer runs, 12-ft. high warehouse style racking and a new contractor desk. The entire indoor warehouse section of the location was converted to retail, increasing it from 33,000 sq.ft.The store features an additional 1,100 products, including trade-specific items like welding equipment and pneumatics, says Rob Wilbrink, vice-president, operations for Lansing Buildall. While a new kitchen and bath boutique has been added, other lines, such as décor, furniture, housewares and some general seasonal, have been scaled back. Thanks to the additional space, "a lot of mouldings came back into the store."The store now stocks $10 million in inventory. "We've really streamlined the store, with a main aisle running across the front of the store and one across the back, with long runs in between," reminiscent of a grocery store, Wilbrink adds.A grand opening was held last Wednesday, with an open house for Lansing's builder and trade customers.* * * * * *CANADIAN TIRE'S FIRST QUARTER RESULTS IMPACTED BY GOOD WEATHER, CEO PAYOUTCanadian Tire Corp.'s revenues for the first quarter reached $1,104.3 million, up 16.2% from a year earlier, reflecting an 11.7% increase in its retail business. However, consolidated net earnings dropped to $24.2 million, from $31.8 million in the first quarter of 1999, due in part to reduced margins in gasoline, reflected in its petroleum division's results.CTC dealers reported first quarter retail sales up 4.4% over the same period of last year. Same-store sales were flat, reflecting a strong first quarter last year, when winter storms in Eastern Canada pushed sales up 10.6%.Canadian Tire Retail's gross operating revenue was $833.0 million, up 11.7% from $745.9 million recorded a year earlier, reflecting an 11.5% rise in first quarter shipments to associate dealers. Operating earnings for the quarter were $19.0 million, compared with $28.9 million.The decline was was attributed to a $4 million payout to CEO Stephen Bachand, who announced he will retire this year, and to expenses associated with the opening of eight new stores. A total of 196 new-format stores have been opened since the beginning of the program. CTC opened 51 new-format stores in 1999 and expects to open 45 more this year, plus up to 20 PartSource stores.COMPANIES IN THE NEWSHome Depot, eh? The Home Depot Canada has determined its moniker for Québec will be "Home Depot" without the definite article preceding it. In fact, the name without the "The" will become the one used throughout Canada, and may eventually be the form of the name as the company grows internationally.TORBSA Ltd. has added the following new member: Clare Interior Supplies Ltd., Hamilton, Ont.Cameron Ashley Building Products has accepted an offer by Guardian Industries to acquire all its outstanding shares for US$18.35 per share.Lowe's intends to invest US$2.2 billion on expansion this year. According to The Hard Fax in the U.S., Lowe's willl open about 95 new stores, including the relocation of 17 older, small-format stores.Correction: Sales for Tim-BR-Marts Ltd. were reported incorrectly last week. Sales by all dealers reached $1.2 billion in 1999.CANADIAN STOCK WATCH