November 22, 1999 - Volume v, #47
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

Be sure and join us at the Hardlines Show Breakfast at the Canadian Hardware and Building Materials Show on February 6, 2000, 7:30-9 a.m. There we'll award the Newsmaker of the Year and kick off the show with a rock n' roll twist. Remember, this event is for Hardlines subscribers and guests only, so don't miss it!
- Michael

Sponsors who are helping make our Birthday Breakfast a success:
Sterling Commerce,
Intactix,
Dimensions Retail Systems,
Hamilton Discount,
The Canadian Hardware and Building Materials Show and Hardware Merchandising.

* * * * * * *

WHO ARE THE TOP PLAYERS IN THE U.S.?
I get asked this question a lot, so we've created this directory. 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. Complete with company name, address, phone and fax, chief executive, number of stores and annual sales. Just $45 for subscribers. Call or e-mail us for more information.

HOME DEPOT'S CONTRACTOR CATALOGUE WILL LAUNCH IN FEBRUARY

After test-driving the program in the U.S. for several months, Home Depot will launch Maintenance Warehouse here in Canada in February. The catalogue business serves the building and facilities management market with maintenance, repair and operations products.

The new division is an extension of Home Depot's Maintenance Warehouse operation in the U.S., where it offers more than 12,000 products. John Scinocca, formerly hardware buyer for eastern Canada, has been put in charge of Maintenance Warehouse here. A sales team is also being put in place.

The new venture will let commercial customers place orders through a toll-free line and have their orders delivered the next day from a warehouse to be located in the GTA.

While Maintenance Warehouse was a recognized brand in the U.S. when Home Depot took it over, it is virtually unkown here. Therefore, a new name will be chosen for it, one that is expected to feature the Home Depot name prominently.

* * * * * * *

REPLACEMENT NAMED FOR AWARD FOUNDER

Eighteen years after founding AWARD, John MacDougall, the Atlantic buying group's president, is preparing to step down. His replacement is T.P. (Tom) Smith, vice-president of food merchandising and distribution for Co-op Atlantic. Smith, currently based in Moncton, will move to Halifax to take over at AWARD in late November.

MacDougall will accompany him to the annual Matreco negotiations (of which AWARD is a member) in December in Toronto, winding up his involvement in the group by year's end.

MacDougall started AWARD in 1981 when he was appproached by four local dealers to help them develop a co-op buying format. The group now has 68 shareholders with 97 stores and 1998 retail sales of $280 million.

In its third quarter ended September 30, RONA Inc. had sales of $257.1 million, an increase of 16.1% from $221.5 million in the third quarter of 1998. Net earnings were $3.9 million, up 23.6% over 1998, when net earnings were $3.1 million. For the first three quarters of the current fiscal year, sales totalled $762.1 million, compared with $639.5 million for the same period in 1998, a 19.2% increase. Net earnings increased 14.7% to reach $12.0 million, from $10.4 million during the same period in 1998.

Canadian Tire has opened three new-format stores in Edmonton: a 48,000-sq.ft. store on Calgary Trail South, a 44,000-sq.ft. store at the Kingsway and a 45,000-sq.ft. store in Mill Woods. Edmonton now has seven stores. CTC embarked on a $1 billion expansion plan in 1993, which will eventually convert up to 350 stores to the new format. By the end of the year, more than 180 stores will have been converted.

Creditors and shareholders of The T. Eaton Co. Ltd. have agreed to a plan that will enable Eaton's to continue as a going concern with Sears Canada Inc. becoming its sole shareholder. Through this structure the Sears-held Eaton's will be the owner of 16 current Eaton's store locations and other assets, including the Eaton's name. Toronto's downtown Eaton Centre location is among the stores that will continue to keep the Eaton's name:

Brentwood Mall, Burnaby, B.C.
St-Vitale Centre, Winnipeg, Manitoba
Galleries La Capitale, Quebec City, Québec
Westmount Shopping Centre, London, Ontario
Sherway Gardens, Toronto, Ontario
Yorkdale S.C., Toronto, Ontario
Halifax S.C., Halifax, Nova Scotia
Scarborough Town Centre, Toronto, Ontario
Eaton Centre, Victoria, B.C.
Pacific Centre, Vancouver, B.C.
Polo Park, Winnipeg, Manitoba
Eaton Centre, Toronto, Ontario
Southcentre Mall, Calgary, Alberta
Orchard Park Shopping Centre, Kelowna, B.C.
Rideau Centre, Ottawa, Ontario
Calgary Eaton Centre, Calgary, Alberta.

All other assets of Eaton's will be transferred to a newly incorporated company which will be liquidated by the current Monitor under the Companies' Creditors Arrangement Act. All of the liabilities of Eaton's other than those which are designated to remain with Eaton's will be compromised under the plan and the compromised liabilities will be assumed by the new company.

Last Friday, Sears Canada opened its first Sears Furniture and Appliance store in Atlantic Canada. Located at the Bayers Lake Power Centre in Halifax, the 43,000-sq.ft. store is part of a multi-million dollar national plan to take furniture out of Sears department stores and build free-standing furniture and accessories stores. The company plans to have 25 furniture and appliance stores open by the end of 1999.

TruServ Corp. in Chicago is giving its $50 million advertising account to Marc USA, which had previously shared the business with Chicago's Leo Burnett. The award makes Marc responsible for all of the hardware cooperative's advertising needs as it moves to combine the True Value, ServiStar and Coast to Coast names under the True Value brand.

The Home Depot has announced a three-for-two stock split, payable December 30, 1999. The stock split will be the Depot's 13th since the company went public in 1981.

The 326 lb. seven-foot former WWF Champion "Kane" made a special appearance last Friday at the Sears in Fairview Mall, North York, Ont. (Damn, I missed this one! - M.M.)

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.45
Canfor	14.85	4.25	14.85
Goodfellow	11.80	6.00	11.10
Hudsons Bay	23.85	4.00	16.60
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	37.10	15.25	37.00
Taiga Forest	14.75	8.65	13.15
West Fraser	41.00	9.05	30.25

"The function of culture is to teach you new ways of dealing with the world."
- Brian Eno (British musician)

PEOPLE ON THE MOVE

John Kitchen, president of Lansing Buildall and vice-president of Revy Ontario Division, has been chosen as this year's Industry Achievement Award winner by the Lumber & Building Materials Association of Ontario. John's father, Bill Kitchen, was the first award winner 11 years ago. The award will be presented at the LBMAO's Annual Gala Dinner on February 7, 2000, at the Toronto Marriot Eaton Centre Hotel.

Steve Bedford has assumed the role of manager of the buying department of the Revy Ontario Division. He was formerly category manager for hardware, hand and power tools. Bedford takes over from John Kitchen, who had been dividing his duties as buying director and president of Lansing Buildall and vice-president of Revy Ontario. Bedford remains in charge of some buying duties, reporting directly to Kitchen … Dean Andrey takes over Bedford's duties as category manager of Revy Ontario for seasonal products. (416-241-8844)

Rick Wysocki has been appointed regional manager of the Ontario division of All Weather Windows. He was most recently national product manager at Beaver Lumber. His appointment, along with the construction of a new branch in Newmarket, is part of the company's plan to enter the Ontario market in 2000. (905-954-1742)

"Our experience with Maintenance Warehouse has demonstrated that this is a great business to be in. This new division of our company provides us the opportunity to increase our penetration of commercial accounts, including our professional customer base, a marketplace that has excellent growth potential in Canada."

- Annette Verschuren, president of Home Depot Canada, on the announced launch of its catalogue direct mail business in Canada.

Retail spending was up 0.4% in September from August, according to Stats Canada. This follows a 1.3% gain in August. Holding prices constant, retail sales remained essentially unchanged in September (&endash;0.1%). Retail sales in the third quarter were up 3.1% over the second quarter.

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.

2. "Canada Night" Reception in Cologne&endash; A night of networking with fellow Canadian retailers and vendors, and a presentation by key European buyers.

3. Pre-show seminar &endash; Hardlines and the Canadian office of the Cologne Trade Fairs will jointly present tips on how to maximize your presence at the Show.

4. Hardlines Handbook of the European market &endash; a helpful guide to European markets.

5. Store tours &endash; We'll take you on a tour of the European big-boxes and independents so you can take home the latest ideas for merchandising, packaging and store layout.

6. Spouses' program &endash; Join us to discover the sights and scenes of historic Cologne.

Come to the Cologne International Hardware Fair/DIY'TEC with HARDLINES, March 12-15, 2000, in Cologne, Germany.

Travel to the International Hardware Fair in Cologne to position yourself as a key player in the 21st century. Find out where the growth opportunities lie, discover how the world's markets are changing and learn about the latest new products.

Hardlines has arranged special travel packages that will make your trip painless and affordable. Not only will we help you with your travel arrangements, but we'll also ensure your trip is beneficial to both you and your company.

Affordable, comprehensive travel packages are available in two- and five-star accommodations. Just email us for more information. Our recommended Canadian travel agent will contact you to arrange your personalized travel package.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.

November 22, 1999 - Volume v, #47
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

Be sure and join us at the Hardlines Show Breakfast at the Canadian Hardware and Building Materials Show on February 6, 2000, 7:30-9 a.m. There we'll award the Newsmaker of the Year and kick off the show with a rock n' roll twist. Remember, this event is for Hardlines subscribers and guests only, so don't miss it!
- Michael

Sponsors who are helping make our Birthday Breakfast a success:
Sterling Commerce,
Intactix,
Dimensions Retail Systems,
Hamilton Discount,
The Canadian Hardware and Building Materials Show and Hardware Merchandising.

* * * * * * *

WHO ARE THE TOP PLAYERS IN THE U.S.?
I get asked this question a lot, so we've created this directory. 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. Complete with company name, address, phone and fax, chief executive, number of stores and annual sales. Just $45 for subscribers. Call or e-mail us for more information.

HOME DEPOT'S CONTRACTOR CATALOGUE WILL LAUNCH IN FEBRUARY

After test-driving the program in the U.S. for several months, Home Depot will launch Maintenance Warehouse here in Canada in February. The catalogue business serves the building and facilities management market with maintenance, repair and operations products.

The new division is an extension of Home Depot's Maintenance Warehouse operation in the U.S., where it offers more than 12,000 products. John Scinocca, formerly hardware buyer for eastern Canada, has been put in charge of Maintenance Warehouse here. A sales team is also being put in place.

The new venture will let commercial customers place orders through a toll-free line and have their orders delivered the next day from a warehouse to be located in the GTA.

While Maintenance Warehouse was a recognized brand in the U.S. when Home Depot took it over, it is virtually unkown here. Therefore, a new name will be chosen for it, one that is expected to feature the Home Depot name prominently.

* * * * * * *

REPLACEMENT NAMED FOR AWARD FOUNDER

Eighteen years after founding AWARD, John MacDougall, the Atlantic buying group's president, is preparing to step down. His replacement is T.P. (Tom) Smith, vice-president of food merchandising and distribution for Co-op Atlantic. Smith, currently based in Moncton, will move to Halifax to take over at AWARD in late November.

MacDougall will accompany him to the annual Matreco negotiations (of which AWARD is a member) in December in Toronto, winding up his involvement in the group by year's end.

MacDougall started AWARD in 1981 when he was appproached by four local dealers to help them develop a co-op buying format. The group now has 68 shareholders with 97 stores and 1998 retail sales of $280 million.

In its third quarter ended September 30, RONA Inc. had sales of $257.1 million, an increase of 16.1% from $221.5 million in the third quarter of 1998. Net earnings were $3.9 million, up 23.6% over 1998, when net earnings were $3.1 million. For the first three quarters of the current fiscal year, sales totalled $762.1 million, compared with $639.5 million for the same period in 1998, a 19.2% increase. Net earnings increased 14.7% to reach $12.0 million, from $10.4 million during the same period in 1998.

Canadian Tire has opened three new-format stores in Edmonton: a 48,000-sq.ft. store on Calgary Trail South, a 44,000-sq.ft. store at the Kingsway and a 45,000-sq.ft. store in Mill Woods. Edmonton now has seven stores. CTC embarked on a $1 billion expansion plan in 1993, which will eventually convert up to 350 stores to the new format. By the end of the year, more than 180 stores will have been converted.

Creditors and shareholders of The T. Eaton Co. Ltd. have agreed to a plan that will enable Eaton's to continue as a going concern with Sears Canada Inc. becoming its sole shareholder. Through this structure the Sears-held Eaton's will be the owner of 16 current Eaton's store locations and other assets, including the Eaton's name. Toronto's downtown Eaton Centre location is among the stores that will continue to keep the Eaton's name:

Brentwood Mall, Burnaby, B.C.
St-Vitale Centre, Winnipeg, Manitoba
Galleries La Capitale, Quebec City, Québec
Westmount Shopping Centre, London, Ontario
Sherway Gardens, Toronto, Ontario
Yorkdale S.C., Toronto, Ontario
Halifax S.C., Halifax, Nova Scotia
Scarborough Town Centre, Toronto, Ontario
Eaton Centre, Victoria, B.C.
Pacific Centre, Vancouver, B.C.
Polo Park, Winnipeg, Manitoba
Eaton Centre, Toronto, Ontario
Southcentre Mall, Calgary, Alberta
Orchard Park Shopping Centre, Kelowna, B.C.
Rideau Centre, Ottawa, Ontario
Calgary Eaton Centre, Calgary, Alberta.

All other assets of Eaton's will be transferred to a newly incorporated company which will be liquidated by the current Monitor under the Companies' Creditors Arrangement Act. All of the liabilities of Eaton's other than those which are designated to remain with Eaton's will be compromised under the plan and the compromised liabilities will be assumed by the new company.

Last Friday, Sears Canada opened its first Sears Furniture and Appliance store in Atlantic Canada. Located at the Bayers Lake Power Centre in Halifax, the 43,000-sq.ft. store is part of a multi-million dollar national plan to take furniture out of Sears department stores and build free-standing furniture and accessories stores. The company plans to have 25 furniture and appliance stores open by the end of 1999.

TruServ Corp. in Chicago is giving its $50 million advertising account to Marc USA, which had previously shared the business with Chicago's Leo Burnett. The award makes Marc responsible for all of the hardware cooperative's advertising needs as it moves to combine the True Value, ServiStar and Coast to Coast names under the True Value brand.

The Home Depot has announced a three-for-two stock split, payable December 30, 1999. The stock split will be the Depot's 13th since the company went public in 1981.

The 326 lb. seven-foot former WWF Champion "Kane" made a special appearance last Friday at the Sears in Fairview Mall, North York, Ont. (Damn, I missed this one! - M.M.)

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.45
Canfor	14.85	4.25	14.85
Goodfellow	11.80	6.00	11.10
Hudsons Bay	23.85	4.00	16.60
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	37.10	15.25	37.00
Taiga Forest	14.75	8.65	13.15
West Fraser	41.00	9.05	30.25

"The function of culture is to teach you new ways of dealing with the world."
- Brian Eno (British musician)

PEOPLE ON THE MOVE

John Kitchen, president of Lansing Buildall and vice-president of Revy Ontario Division, has been chosen as this year's Industry Achievement Award winner by the Lumber & Building Materials Association of Ontario. John's father, Bill Kitchen, was the first award winner 11 years ago. The award will be presented at the LBMAO's Annual Gala Dinner on February 7, 2000, at the Toronto Marriot Eaton Centre Hotel.

Steve Bedford has assumed the role of manager of the buying department of the Revy Ontario Division. He was formerly category manager for hardware, hand and power tools. Bedford takes over from John Kitchen, who had been dividing his duties as buying director and president of Lansing Buildall and vice-president of Revy Ontario. Bedford remains in charge of some buying duties, reporting directly to Kitchen … Dean Andrey takes over Bedford's duties as category manager of Revy Ontario for seasonal products. (416-241-8844)

Rick Wysocki has been appointed regional manager of the Ontario division of All Weather Windows. He was most recently national product manager at Beaver Lumber. His appointment, along with the construction of a new branch in Newmarket, is part of the company's plan to enter the Ontario market in 2000. (905-954-1742)

"Our experience with Maintenance Warehouse has demonstrated that this is a great business to be in. This new division of our company provides us the opportunity to increase our penetration of commercial accounts, including our professional customer base, a marketplace that has excellent growth potential in Canada."

- Annette Verschuren, president of Home Depot Canada, on the announced launch of its catalogue direct mail business in Canada.

Retail spending was up 0.4% in September from August, according to Stats Canada. This follows a 1.3% gain in August. Holding prices constant, retail sales remained essentially unchanged in September (&endash;0.1%). Retail sales in the third quarter were up 3.1% over the second quarter.

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.

2. "Canada Night" Reception in Cologne&endash; A night of networking with fellow Canadian retailers and vendors, and a presentation by key European buyers.

3. Pre-show seminar &endash; Hardlines and the Canadian office of the Cologne Trade Fairs will jointly present tips on how to maximize your presence at the Show.

4. Hardlines Handbook of the European market &endash; a helpful guide to European markets.

5. Store tours &endash; We'll take you on a tour of the European big-boxes and independents so you can take home the latest ideas for merchandising, packaging and store layout.

6. Spouses' program &endash; Join us to discover the sights and scenes of historic Cologne.

Come to the Cologne International Hardware Fair/DIY'TEC with HARDLINES, March 12-15, 2000, in Cologne, Germany.

Travel to the International Hardware Fair in Cologne to position yourself as a key player in the 21st century. Find out where the growth opportunities lie, discover how the world's markets are changing and learn about the latest new products.

Hardlines has arranged special travel packages that will make your trip painless and affordable. Not only will we help you with your travel arrangements, but we'll also ensure your trip is beneficial to both you and your company.

Affordable, comprehensive travel packages are available in two- and five-star accommodations. Just email us for more information. Our recommended Canadian travel agent will contact you to arrange your personalized travel package.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.