November
15, 1999 - Volume v, #46
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
NEWSMAKER OF THE YEAR AWARD: Next year will mark the fifth
anniversary of Canada's one and only newsletter for the home
improvement industry. Be sure and join us at the Hardlines Show
Breakfast at the Canadian Hardware and Building Materials Show on
February 6, 2000. There we'll award the Newsmaker of the Year
&endash; and kick off the show with a rock n' roll twist. Remember,
this event is for Hardlines subscribers and guests only &endash; so
don't miss it! - Michael
* * * * *
* *WHO ARE
THE TOP PLAYERS IN THE U.S.?I get asked
this question a lot, so now there's a handy directory with the
answers you need. Our brand new TOP 50 Directory of leading home
improvement retailers in the U.S. is a handy, affordable way to
check out the action south of the border. It's not as comprehensive
as our blockbuster Who's Who Directory of Canadian Retailers, so
we've priced it accordingly &endash; just $45 for subscribers. Call
or e-mail
us for more information.
This week in Hardlines:
LBM
EXHIBITORS GET ON BOARD CHS FOR 2000The next
edition of the Canadian Hardware and Building Materials Show,
February 6-8, 2000, is the first to encorporate the LBMAO's own show
and convention. The Canadian Home Centre Show was folded in favour of
joining forces with the CRHA's own hardware show.CHS has
already identified more than 50 new exhibitors who formerly exhibited
at the LBMAO show. Many other LBM companies that had previously
exhibited in both shows will return to CHS in 2000.The LBMAO
will host an industry "Icebreaker" reception on Saturday night,
February 5. The Industry Gala, mounted by the CHHMA to benefit the
Easter Seals Society of Canada, will be held on Sunday night,
February 6. Monday's Awards Night honours the industry's outstanding
products and the LBMAO Annual Gala Dinner takes place later that same
night. And of
course, Sunday morning the show kicks off with the fifth Annual
Hardlines Show Breakfast (see shameless promotion elsewhere in this
issue).More than
20,000 delegates are expected to register as CHS celebrates its 95th
anniversary in Y2K. For more information, call 905-821-3470; fax:
905-821-8946; e-mail: crha@crha.com, or click here: www.crha.com* * * * *
* *RESULTS
POISE SODISCO-HOWDEN FOR FUTURE ACQUISITIONSodisco-Howden
Group's third quarter sales results showed a 20% increase over 3Q
1998 and a year-to-date sales increase of 15.1% to $319.1 million.
This turnaround of the hardware wholesaler's fortunes marks its
eleventh consecutive quarter of improved earnings &endash; and
"positions the company for a possible future acquisition," says
Sodisco-Howden president and CEO Tony Molluso.Buoyed by 3Q
earnings of $3.6 million on sales of $113.7 million, versus $2.7
million on sales of $94.8 million a year earlier, Molluso repeated
his desire to consider growing the company by acquisition. (For the
nine-month period, net earnings grew 155% from $2.0 million to $5.1
million.) Molluso had previously announced (Hardlines, Oct. 25/99)
that two companies were under consideration for possible acquisition,
one of which he expected to close by year's end. COMPANIES IN THE NEWSThe Ontario
Municipal Board has rejected Home Depot Canada's proposal to erect a
store at Cherry Street and Lakeshore Boulevard in downtown Toronto's
waterfront area. According to an article in the Globe & Mail on
Friday, the proposal met with opposition from downtown businesses,
politicians and associations. Large retail development does not fit
in with the OMB's plans for redeveloping the waterfront. The area may
also be developed as part of a proposal for Toronto to bid for the
Olympics in 2008. UFA Farm
Supply Co-op has reached an agreement with Ace Hardware Canada to
have Ace supply some hardware to two of its 34 corporately owned
stores in Alberta on a test basis. The stores, in High River and
Claresholm, will increase their hardware offerings with new programs
from Ace. Product lines are now being finalized, with plumbing,
electrical and hardware under consideration. Amazon.com
Inc. is broadening its product selection online to include home
improvement products, as well as computer software and video games.
The launch was timed to the Christmas season, steered by Amazon
president Joe Galli, former president of Black & Decker. Products
will include hardware, hand and power tools &endash; and even
benchtop tools &endash; and all will have a US$4.95 shipping charge.
Amazon recently bought a North Dakota-based catalogue company, Tool
Crib, to facilitate its expansion into home improvement. Although
reportedly being the most visited site on the Internet, Amazon has
yet to make a profit after four years. (It lost US$197 million in the
third quarter.) Last week,
RONA opened its latest Le Rénovateur Régional, this one
in St-Hyacinthe, Qué. The 90,000-sq.ft. store carries 40,000
SKUs. The dealer-owners are André Gagnon and Jean-Guy
Hébert (who was also named RONA's retailer of the year). Both
are also co-owners of the Rénovateur Régional in
Granby, which opened September 15.Five
Wal-Mart stores opened last Friday: Leamington, Owen Sound and
Pembroke, Ont.; Langley, B.C.; and Saint John, N.B.Home Depot
in the U.S. now sells gift certificates online. Called Home Depot
Gift Cards, they can be purchased in amounts of $10, $25, $50 or
$100, redeemable only at Home Depot stores in the U.S.Corning
Consumer Products Corp. (CCPC) Holding Co. Inc. has completed the
acquisition of General Housewares Corp., following approval by
General's shareholders to accept US$28.75 per share in cash.
General's key brands include Chicago Cutlery and Olfa. Annual sales
in 1998 were U.S.$97 million.Nu-Gro Corp.
has broken off negotiations to purchase Consolidated Envirowaste
Industries Inc. Nu-Gro will seek alternative ways to expand its soil
operations in Western Canada.CANADIAN
STOCK WATCH
"There is no
fear in love; but perfect love casteth out fear."
- John iv: 18PEOPLE ON
THE MOVEPierre
Langevin has joined In-Store Services Canada Inc. as director of
business development. Langevin has spent 30 years in the industry and
will now work with In-Store Services to meet the growing demand for
merchandising services. One of his initial responsibilities will be
to establish the company's presence in Québec.
(905-507-3119)
MARKET INDICATORS
Housing
starts in Canada slipped 2.2% in October to 147,500 units, down from
150,800 units seasonally adjusted in September, according to CMHC.
Urban multiple starts rose 0.7% to 54,700, while urban singles
decreased 5.1% to 72,100 units.* * * * * *
*The new
housing price index increased 1.2% in September over the same month a
year earlier. This was the highest annual increase since December
1997, says Stats Canada. This index of contractors' selling prices
for new houses rose 0.2% from August to September.Calgary had
the highest annual increase (+4.3%), while significant increases also
occurred in Halifax (+3.9%) and Ottawa-Hull (+3.6%). Vancouver and
Victoria had the greatest decreases (-3.3% and &endash;4.6%
respectively). St. John's increased 1.1%, Montréal was up
2.7%, Toronto up 1.7%, Winnipeg up 3.0% and Edmonton up 2.3% over
September 1998."As of
today, more than $50 million worth of forest products have been
sidelined or diverted to other ports at great cost to industry. As
this lock out drags on, sales will be lost and valued customers will
be snapped up by competing jurisdictions. Even the ability to
maintain operations at our mills will soon be in jeopardy." &endash;
from a letter to Prime Minister Jean Chrétien from the Council
of Forest Industries, urging the PM to legislate the re-opening of
the Port of Vancouver's and other B.C. ports. Labour Minister
Claudette Bradshaw later imposed a Sunday deadline for both sides to
reach a collective agreement."It's the
merchandising support that they're bringing to the table that is
really the coup for them." &endash; Barry Hofstetter, senior buyer
for UFA, on the recent supply agreement it has signed with Ace
Hardware Canada.COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:
Join us to attend the world's largest hardware show March 12-15,
2000.
Here's
why:
1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.
"There is no
fear in love; but perfect love casteth out fear."
- John iv: 18PEOPLE ON
THE MOVEPierre
Langevin has joined In-Store Services Canada Inc. as director of
business development. Langevin has spent 30 years in the industry and
will now work with In-Store Services to meet the growing demand for
merchandising services. One of his initial responsibilities will be
to establish the company's presence in Québec.
(905-507-3119)
MARKET INDICATORS
Housing
starts in Canada slipped 2.2% in October to 147,500 units, down from
150,800 units seasonally adjusted in September, according to CMHC.
Urban multiple starts rose 0.7% to 54,700, while urban singles
decreased 5.1% to 72,100 units.* * * * * *
*The new
housing price index increased 1.2% in September over the same month a
year earlier. This was the highest annual increase since December
1997, says Stats Canada. This index of contractors' selling prices
for new houses rose 0.2% from August to September.Calgary had
the highest annual increase (+4.3%), while significant increases also
occurred in Halifax (+3.9%) and Ottawa-Hull (+3.6%). Vancouver and
Victoria had the greatest decreases (-3.3% and &endash;4.6%
respectively). St. John's increased 1.1%, Montréal was up
2.7%, Toronto up 1.7%, Winnipeg up 3.0% and Edmonton up 2.3% over
September 1998."As of
today, more than $50 million worth of forest products have been
sidelined or diverted to other ports at great cost to industry. As
this lock out drags on, sales will be lost and valued customers will
be snapped up by competing jurisdictions. Even the ability to
maintain operations at our mills will soon be in jeopardy." &endash;
from a letter to Prime Minister Jean Chrétien from the Council
of Forest Industries, urging the PM to legislate the re-opening of
the Port of Vancouver's and other B.C. ports. Labour Minister
Claudette Bradshaw later imposed a Sunday deadline for both sides to
reach a collective agreement."It's the
merchandising support that they're bringing to the table that is
really the coup for them." &endash; Barry Hofstetter, senior buyer
for UFA, on the recent supply agreement it has signed with Ace
Hardware Canada.COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:
Join us to attend the world's largest hardware show March 12-15,
2000.
Here's
why:
1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.