Five years serving Canada's home improvement industry
November 6, 2000 - Volume vi, #42
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: email@example.com Check out our incredible Classifieds section!* * * * * *
* Canadian Tire sales down in third quarter
* Rona to focus big box growth in Ontario
* Home Depot tries out HVAC installations in the U.S.
* U.S. retail is down slightly in October
* * * * * *THE HARDLINES MARKETPLACE It's a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here's what you get with each Marketplace Ad:- two weeks in the fax version
- three weeks in the email version
- posted on our website for three weeks
- your ad read by more than 3,000 people every single week
- thousands of hits on our Website!
- our boundless thanks for your support of Hardlines!Bev takes care of the Classifieds so contact her: firstname.lastname@example.org or call her at 416-489-3396.HARDLINES WHO'S WHO 2000-2001 EDITION: The only annual guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. It lists more than 100 companies. Each listing features executives, product categories, sales, number of outlets, buyers, etc. No salesperson or marketing person should be without this little beauty! In fact, some of our subscribers are buying three and four copies, so the whole sales force will be armed with the right names and numbers while they're on the road. Don't be caught without it!The cost is only $125 for subscribers, or $165 for non-subscribers (+ GST/HST).Order onlineor call us at 416-489-3396.BAD WEATHER STALLS CANADIAN TIRE PROFITS IN THIRD QUARTERSales were flat for Canadian Tire dealers in the third quarter, while profits dropped even Sales were flat for Canadian Tire dealers in the third quarter, while profits dropped even further. In the retail sales division, associate dealers' sales were up 6.2% over 1999, and 4.2% for the first nine months over 1999. Same-store sales were flat for the quarter and down 1.6% for the year to date, compared with 1999. According to the company, it had strong sales in home products, tires and automotive service, but sales in sports and leisure were soft because of the cold, wet weather in the third quarter. The retail division had gross operating revenue of $1.027 billion, up 6.1% from $968.0 million in 1999. The increase in gross operating revenue reflects a 6.2% rise in third quarter shipments to associate dealers compared with the same period last year. In the first nine months, CTR's revenue was $2.964 billion, up 6.9% from $2.774 billion a year earlier, reflecting a 6.9% increase in shipments to its dealers. The company's overall performance resulted in third-quarter consolidated net earnings of $43.0 million, compared with $52.5 million in 1999. Net earnings for the year to date were $116.2 million on sales of $1.325 billion, down from $133.0 million on sales of $1.210 billion last year. The profit drop was attributed to higher distribution expenses, the investment in the imminent launch of its e-commerce site called Canadian Tire Online, and increased depreciation expenses. The higher distribution expenses are related to increased wages and the soft performance of of seasonal merchandise in the Spring and Summer.* * * * * *RONA PUTS REGIONAL STORES IN MONTREAL'S BIG BOX MARKETHome Depot's entry last summer into the Montréal area has certainly heated up that market. But despite the arrival of the big guns, Rona Retail Canada is relying on smaller, more targetted ammunition for that competitive market.Two stores have begun construction, in Longueuil and Laval. But they're Régional stores rather than big boxes. The shift coincides with Rona's intention to focus its big box growth in Ontario. Rona Régional stores are "mini-big boxes," typically around 65,000 sq.ft., with high racking and wide assortment. But they're also well lit and interpersed with more upscale boutiques for paint, interior décor and doors and windows.The smaller size means more choice for consumers, says Sylvain Morissette, Rona's director of communications. "The regional stores have the greater assortment along with the intimacy of the boutiques."The new stores are expected to open in Spring 2001. At the same time, a big box Warehouse store will open in Brampton, ON. The search is on, however, says Morissette, for more regional stores in Québec.* * * * * *COMPANIES IN THE NEWSA larger big box-style Kent store is breaking ground in St. John, NB to replace an A larger big box-style Kent store is breaking ground in St. John, NB to replace an existing 35,000-sq.ft. outlet. It is expected to open in Summer 2001. A second big box Kent store is expected to begin construction by Fall 2001.Wal-Mart Canada will open its fourth store in Scarborough, ON in Summer 2001. The new 160,000-sq.ft. store will be located in the Scarborough Town Centre at Highway 401 and McCowan Road.Not to be outdone by Eaton's as it hits consumers' nostalgia buttons with a revived Eaton's catalogue and Eaton's float at the Santa Claus Parade, The Bay has reinstalled its elaborate Christmas window displays of yore, complete with animated characters and fun for the whole family. The displays, once a thing of magic for kids of all ages, it gradually gave way to designer clothing and furniture … until now! Rona inc. will be the title sponsor of a women's cycling team, the company's first international sports sponsorship. Team Rona will initially comprise six athletes, including Geneviève Jeanson, 1999 world junior champion, Olympic athlete and the only Canadian woman to make the top 20 rankings by the International Cycling Union.Canadian Tire Corp. officially broke ground on its new 500,000-sq.ft. distribution centre in southeast Calgary. The facility is slated to open in the first quarter of 2002 and ship more than 10,000,000 cu.ft. of product annually to 125 stores in western Canada. The site will receive product directly from manufacturers and distributors from across Canada, the U.S. and the Orient.Following the buyout of Bay Mills by Saint-Gobain Technical Fabrics America Inc., the company will be known as Saint-Gobain Technical Fabrics Canada (SGTF Canada). However the Bay Mills, Bayex and FibaTape brand names will continue to be used. Premdor Inc.'s sales for the quarter ended September 30 were $319.0 million, a 9% increase over $292.8 million reported in the same period in 1999. For the nine-month period year-to-date, sales were $975.7 million, up 14% over $854.6 million a year earlier. Net income for the quarter was $4.5 million, compared with $12.3 million. GSW Inc. has commenced an action against General Electric Co. and General Electric Canada Inc. GSW is trying to get the courts to order GE to buy out GSW's 49% share of Camco Inc. on the grounds of shareholder oppression. Home Depot in the U.S. is trying out a pilot program to offer installed HVAC services in agreement with The Trane Co. The program, which ties in with Home Depot's acquisition last year of Apex Supply Co. The program involves seven stores in eastern Tennessee, which are showcasing a full range of residential heating and air conditioning products. Sales leads are forwarded to a call centre at Apex Supply, where they are passed along to the Trane dealer for that territory. The customer pays Home Depot, which retains a fee for providing the lead. The pressure on retailers to expand and re-invent themselves has resulted in a bumper crop of old units and excess real estate. They typically dispose of that space by re-leasing it to other chains. Wal-Mart in the U.S., for example, has been expanding its Supercenter concept, making many of its older, strictly discount units redundant. Wal-Mart handled handled 25-30 million sq.ft. of surplus in 1999, most of which was re-leased to supermarkets and drugstores. In the mid-'90s, the company took it real estate business in-house, forming the Wal-Mart Realty division.Home Depot in the U.S. is trying out a pilot program to offer installed HVAC services in agreement with The Trane Co. The program, which ties in with Home Depot's acquisition last year of Apex Supply, involves seven stores in eastern Tennessee, which are showcasing a full range of residential heating and air conditioning products. Sales leads are forwarded to a call centre at Apex Supply, where they are passed along to the Trane dealer for that territory. The customer pays Home Depot, which retains a fee for providing the lead.The pressure on retailers to expand and re-invent themselves has resulted in a bumper crop of old units and excess real estate. They are typically disposed of by re-leasing to other chains. Wal-Mart in the U.S., for example, has been expanding its Supercenter concept, making many of its older, strictly discount units redundant. Wal-Mart handled 25-30 million sq.ft. of surplus in 1999, most of which was re-leased to supermarkets and drugstores. In the mid-'90s, the company took it real estate business in-house, forming the Wal-Mart Realty division. CANADIAN STOCK WATCH