October 12, 1999 - Volume v, #41
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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!

GROWMARK PURSUES WOMEN ONLINE

The latest retailer to throw its hat into the e-commerce ring has its roots firmly planted in Ontario's rural market. GROWMARK has added an online catalogue for its family of co-op dealers throughout the province. Janice Mundell, the company's director of advertising, introduced the site officially, after a year of internal testing, at GROWMARK's spring-Summer Marketing Conference, held October 7-8 in Toronto.

She said the opportunities are not just with consumers, but with business to business, for lines such as workwear. "We must recognize that Internet marketing is not a fad," she added. With an estimated 4 million Canadians already online, she said, 48% of them are women &emdash; a prime growth market for the rural stores.

Tony DiEmanuele, director of merchandising, agrees that women are a key market. Gardener's Edge, a live goods program for its stores, has strong appeal for women and has grown 40% over the past year. With 16 stores in the program since its inception two years ago, another 14 are already slated for the year ahead, including one in Wheaton, Ill.

GROWMARK now has 150 stores in Ontario, with overall sales up about 6% for the year ended August 31, 1999.

* * * * * * *

HOME HARDWARE TESTS LOYALTY CARD

A new loyalty card is being tested in 50 Home Hardware stores across the country. Called Home Advantage, the card rewards customers who swipe the card at POS with chances to win prizes, including trips and merchandise. It also lets Home collect data on shopping habits of its preferred customers.

The program is not being advertised instore. Instead, dealers are being encouraged to sign up 500-1,000 of their best customers on a one-on-one basis. The program was developed by Information-Driven Technologies in Toronto and will be rolled out to all Home dealers in the fall of 2000.

Goodfellow Inc.'s sales for its fiscal year ended August 31, 1999, rose 15% to $386.99 million, up from $335.70 a year earlier. Net income (before extraordinary items) reached $6.63 million, compared with $4.16 million, a 59% increase. The increase was attributed to the addition of more lines and a new sales territory in the U.S. northwest, as well as a distribution agreement with IsobordT, , a new greenfield-venture strawboard fibreboard plant in Elie, Man. This environmentally positive product added close to $10 million in sales. Goodfellow president Richard Goodfellow said all sales regions showed strong growth and profitability, including Western Canada, "where conditions remained difficult."

Westburne Inc. has completed the purchase of Valley Plumbing Supply Inc., a distributor based in Sacramento, Calif. It has also entered into an agreement to purchase the assets of Colotex Electric Supply Co., an electrical distributor based in Loveland, Col. Both deals are expected to generate estimated additional sales of $50 million and add 10 branches to Westburne's existing network of approximately 500.

Weyerhaeuser Co. and MacMillan Bloedel Ltd. announced that B.C's Minister of Forests has offered approval in principle to transfer control of forest tenures and permits to Weyerhaeuser from MacMillan Bloedel. The license areas include more than 800,000 hectares of public forest land (more than 2 million acres) located in B.C.'s coastal region, with an annual harvest volume of 5.6 million cubic metres (196.5 million cubic feet).

Sears Canada, through its Sears Club customer rewards program, has teamed up with the Canadian Plus frequent flyer program. More than 7 million Sears Club members can now convert their Sears Club points to their Canadian Plus account. These points can be used towards travel on Canadian Airlines and any of its redemption partners.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	33.45
Canfor	13.30	4.25	11.15
Goodfellow	11.80	6.00	11.45
Hudsons Bay	23.85	4.00	18.50
MacMillan Blo.	27.85	12.05	23.50
Sears Canada	34.35	15.25	33.90
Taiga Forest	14.75	8.65	13.00
West Fraser	41.00	9.05	36.00

"It is dangerous to be sincere unless you are also stupid."
- George Bernard Shaw

Housing starts in Canada rose 3.7% in September, to 152,700 units seasonally adjusted, according to CMHC. This is the highest figure since March 1998. Urban single starts increased 5.6% and urban multiples increased by 2.8%. B.C. was up 6.1%; the Atlantic region increased 31%; Québec was up 51.4%, due largely to a big jump in Montréal; Ontario was actually down slightly, mainly because of drop in multiple starts in Toronto; the Prairies were down 19.3%, with Saskatchewan up and Manitoba and Alberta down.

* * * * * * *

The total value of building permits issued in August declined 9.4% in August to $2.9 billion, according to Stats Canada. Residential permits were down 4.2% to $1.7 billion as a result of weaker demand for multiple housing permits. Non-residential intentions dropped 15.6% to $1.2 billion. Year to date, however, building permits are up 4.5% over the same period in 1998. Residential permit values are up 8.4% over the first eight months of last year with single family permits up 8.7% and multi-family permits up 7.6%.

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.

Six good reasons to travel with Hardlines:

1. Escorted travel from Toronto to Cologne via Frankfurt &endash;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.

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.

October 12, 1999 - Volume v, #41
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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!

GROWMARK PURSUES WOMEN ONLINE

The latest retailer to throw its hat into the e-commerce ring has its roots firmly planted in Ontario's rural market. GROWMARK has added an online catalogue for its family of co-op dealers throughout the province. Janice Mundell, the company's director of advertising, introduced the site officially, after a year of internal testing, at GROWMARK's spring-Summer Marketing Conference, held October 7-8 in Toronto.

She said the opportunities are not just with consumers, but with business to business, for lines such as workwear. "We must recognize that Internet marketing is not a fad," she added. With an estimated 4 million Canadians already online, she said, 48% of them are women &emdash; a prime growth market for the rural stores.

Tony DiEmanuele, director of merchandising, agrees that women are a key market. Gardener's Edge, a live goods program for its stores, has strong appeal for women and has grown 40% over the past year. With 16 stores in the program since its inception two years ago, another 14 are already slated for the year ahead, including one in Wheaton, Ill.

GROWMARK now has 150 stores in Ontario, with overall sales up about 6% for the year ended August 31, 1999.

* * * * * * *

HOME HARDWARE TESTS LOYALTY CARD

A new loyalty card is being tested in 50 Home Hardware stores across the country. Called Home Advantage, the card rewards customers who swipe the card at POS with chances to win prizes, including trips and merchandise. It also lets Home collect data on shopping habits of its preferred customers.

The program is not being advertised instore. Instead, dealers are being encouraged to sign up 500-1,000 of their best customers on a one-on-one basis. The program was developed by Information-Driven Technologies in Toronto and will be rolled out to all Home dealers in the fall of 2000.

Goodfellow Inc.'s sales for its fiscal year ended August 31, 1999, rose 15% to $386.99 million, up from $335.70 a year earlier. Net income (before extraordinary items) reached $6.63 million, compared with $4.16 million, a 59% increase. The increase was attributed to the addition of more lines and a new sales territory in the U.S. northwest, as well as a distribution agreement with IsobordT, , a new greenfield-venture strawboard fibreboard plant in Elie, Man. This environmentally positive product added close to $10 million in sales. Goodfellow president Richard Goodfellow said all sales regions showed strong growth and profitability, including Western Canada, "where conditions remained difficult."

Westburne Inc. has completed the purchase of Valley Plumbing Supply Inc., a distributor based in Sacramento, Calif. It has also entered into an agreement to purchase the assets of Colotex Electric Supply Co., an electrical distributor based in Loveland, Col. Both deals are expected to generate estimated additional sales of $50 million and add 10 branches to Westburne's existing network of approximately 500.

Weyerhaeuser Co. and MacMillan Bloedel Ltd. announced that B.C's Minister of Forests has offered approval in principle to transfer control of forest tenures and permits to Weyerhaeuser from MacMillan Bloedel. The license areas include more than 800,000 hectares of public forest land (more than 2 million acres) located in B.C.'s coastal region, with an annual harvest volume of 5.6 million cubic metres (196.5 million cubic feet).

Sears Canada, through its Sears Club customer rewards program, has teamed up with the Canadian Plus frequent flyer program. More than 7 million Sears Club members can now convert their Sears Club points to their Canadian Plus account. These points can be used towards travel on Canadian Airlines and any of its redemption partners.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	33.45
Canfor	13.30	4.25	11.15
Goodfellow	11.80	6.00	11.45
Hudsons Bay	23.85	4.00	18.50
MacMillan Blo.	27.85	12.05	23.50
Sears Canada	34.35	15.25	33.90
Taiga Forest	14.75	8.65	13.00
West Fraser	41.00	9.05	36.00

"It is dangerous to be sincere unless you are also stupid."
- George Bernard Shaw

Housing starts in Canada rose 3.7% in September, to 152,700 units seasonally adjusted, according to CMHC. This is the highest figure since March 1998. Urban single starts increased 5.6% and urban multiples increased by 2.8%. B.C. was up 6.1%; the Atlantic region increased 31%; Québec was up 51.4%, due largely to a big jump in Montréal; Ontario was actually down slightly, mainly because of drop in multiple starts in Toronto; the Prairies were down 19.3%, with Saskatchewan up and Manitoba and Alberta down.

* * * * * * *

The total value of building permits issued in August declined 9.4% in August to $2.9 billion, according to Stats Canada. Residential permits were down 4.2% to $1.7 billion as a result of weaker demand for multiple housing permits. Non-residential intentions dropped 15.6% to $1.2 billion. Year to date, however, building permits are up 4.5% over the same period in 1998. Residential permit values are up 8.4% over the first eight months of last year with single family permits up 8.7% and multi-family permits up 7.6%.

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.

Six good reasons to travel with Hardlines:

1. Escorted travel from Toronto to Cologne via Frankfurt &endash;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.

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.