October 18, 1999 - Volume v, #42
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

CASTLE WILL OFFER GROWMARK NICHE PROGRAMS

Three store programs, or "modules," developed by GROWMARK are now available to Castle dealers, after being introduced at Castle's latest area group leaders' meeting. The niche turnkey businesses were developed for GROWMARK's own co-op members in Ontario. But Castle will make it available to its dealers, starting with Ontario.

The modules are Growers Edge (lawn and garden), Pet Headquarters (food and accessories), and a line of heavy duty work clothing.

"It's a niche market opportunity for people in the LBM business," says David Morton, business development manager for Castle, of the modules. To illustrate the appropriateness of a module such as Gardener's Edge, Morton estimates that as much as 60% of the Castle membership is already involved in lawn and garden to some degree. "This will really let dealers upgrade the operation and delivery of lawn and garden products," he says.

Negotiations are underway to add a third party to help GROWMARK roll the modules out to Castle dealers in the other nine provinces.

* * * * * * *

SEARS CANADA TOYS WITH UTILITY SALES

In the face of deregulation of Canadian utilities, Sears Canada is exploring the potential of selling gas and electrical services. The initiative, which was first announced at the Hardlines Marketing Conference in Toronto last month, is another extension of the services offered by Sears under its HomeCentral program.

Larry Moore, vice-president of service sales for Sears Canada, says, "This gives continuity to the relationship with the appliances sold in the stores. It would further solidify a long-term relationship with customers , he says. Sears will likely form an alliance with a gas or electrical manufacturer. If given the go-ahead, a pilot program will be rolled out next year.

For third quarter ended September 30, West Fraser Timber Co. earned $56.7 million on sales of $610 million, compared with earnings of $12.5 million on sales of $514 million a year earlier. For the three quarters, earnings were $107.9 million on sales of $1.64 million, compared with a loss of $0.7 million on sales of $1.39 million in the same period last year. Third quarter sales for the retail division were $602.9 million, up from $510.9 million a year earlier. Earnings grew from $212.0 million to $227.4 million. Same-store sales increased 6%.

Castle Building Centres has added the following members: Eganville Country Depot, Eganville, Ont.; Crown Building Centre, Summerside, P.E.I.; Hector Building Supplies, Pictou and Stellarton, N.S.; J&H Industries Ltd., Milton and Shelburne, N.S.; and Meetah Building Supplies, Nelson House, Man.

Home Depot Canada will open its 50th store this Thursday in Victoria. It will be a regular 113,000-sq.ft. outlet with 13,000-sq.ft. garden centre.

Ainsworth Lumber Co. Ltd. has received provincial government approval to build two new facilities in Alberta: a combination OSB/particleboard plant next to its existing Grande Prairie facility and a hardwood sawmill located in the Valleyview area. The total cost of these two facilities is expected to be $140 million. Start-up of construction is scheduled for June 2000 with commencement of production expected by September 2001.

MAAX Inc. announces that it has just completed the acquisition of all of the shares of Boiseries Imperial, located in Cookshire, Qué. Boiseries Imperial manufactures hardwood kitchen cabinet doors and operates a 31,000 square foot manufacturing plant in which employs 82 employees.

Slocan Forest Products Ltd. had net earnings for the third quarter of 1999 of $34.2 million, compared with net earnings of $4.5 million for the third quarter of 1998. Sales in the third quarter of 1999 were $284.5 million, compared with sales of $248.1 million for the third quarter of 1998. For the first nine months of the year, the company had net earnings of $88.3 million or $2.31 per share compared with a net loss of $21.6 million or $0.56 per share for the first nine months of 1998. Sales for the first nine months of 1999 were $843.8 million, compared with $713.1 million in 1998.

TruServ Corp. in the U.S. has made a strategic alliance with United Stationers, a wholesale distributor of office supply products. The arrangement provides TruServ member dealers with access to a United's network of services and products, ranging from office supplies to cleaning products.

Newell Rubbermaid Inc. has announced its intention to purchase 51.24% the shares of Reynolds SA, a French manufacturer and supplier of writing instruments with 1998 sales US$82 million. Reynold sells in 70 countries.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	32.85
Canfor	13.30	4.25	11.75
Goodfellow	11.80	6.00	11.50
Hudsons Bay	23.85	4.00	17.10
MacMillan Blo.	27.85	12.05	24.00
Sears Canada	34.35	15.25	31.05
Taiga Forest	14.75	8.65	14.00
West Fraser	41.00	9.05	34.50

"To burn always with this hard, gem-like flame, to maintain this ecstasy, is success in life."
&endash; Walter Pater (1839-94)

PEOPLE ON THE MOVE

Louise Turgeon has joined Royal International as sales manager responsible for Québec and the Maritimes. She was formerly with Tremco and Cimatec. Mona Caplan has joined Royal as sales manager responsible for Ontario and Western Canada. She was formerly with Olfa and The Mibro Group. (1-800-465-4566)

Peter Bowes has joined Fiskars Canada as sales director, responsible for all aspects of the company's Canadian sales activities. He was formerly marketing and sales director for Karcher Canada. (905-940-8460)

"Today's competitive marketplace demands that you refixture and remodel - perhaps as often as every five years. Today's customer expects your store to look fresh and attractive. You've got to expand, in space and in products, to bring in new customers. Above all, you've got to make your business attractive to the next generation of owners as well as customers. If that next generation is to be your daughters or your, you've got to consider them now, not at some time in the future when you want to get out of the business."

- Dan Cotter, retiring chairman of TruServ Corp., in his farewell speech at the latest TruServ dealer market. These words echoed his remarks at our own Hardlines Marketing Conference last month.

U.S. online retail sales should reach US$20.2 billion this year as seven million Internet shoppers make their first electronic commerce purchases, a Forrester Research Inc. survey reports. A separate survey on holiday shopping said most shoppers would use emerging e-commerce businesses rather than websites tied to department stores or catalogues. Greenfield's survey said 70% of Internet users planned to do some or all of their holiday shopping online, with Amazon.com , CDnow and eToys Inc. being the main destinations, while Toys R Us's website was ranked fourth.

According to a report from Reuters, the U.S. wants out of the controversial softwood trade agreement with Canada when it expires in 2001. Such a decision could increase tensions between the trading partners, a U.S. trade official has told Ottawa. But another U.S. trade official said Washington may be willing to negotiate a new trade pact that would address American concerns about Canadian timber pricing. The current agreement expires April 1, 2001.

In September, the consumer price index rose 2.6%, indicating that Canadians paid that much more for goods and services than they did a year ago. The rise was due primarily to increased energy costs. Not including energy prices, the index rose 1.5% in September. Homeowners' maintenance and repair costs increased 3.7% in September while mortgage interest costs rose 0.4%.

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 18, 1999 - Volume v, #42
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

CASTLE WILL OFFER GROWMARK NICHE PROGRAMS

Three store programs, or "modules," developed by GROWMARK are now available to Castle dealers, after being introduced at Castle's latest area group leaders' meeting. The niche turnkey businesses were developed for GROWMARK's own co-op members in Ontario. But Castle will make it available to its dealers, starting with Ontario.

The modules are Growers Edge (lawn and garden), Pet Headquarters (food and accessories), and a line of heavy duty work clothing.

"It's a niche market opportunity for people in the LBM business," says David Morton, business development manager for Castle, of the modules. To illustrate the appropriateness of a module such as Gardener's Edge, Morton estimates that as much as 60% of the Castle membership is already involved in lawn and garden to some degree. "This will really let dealers upgrade the operation and delivery of lawn and garden products," he says.

Negotiations are underway to add a third party to help GROWMARK roll the modules out to Castle dealers in the other nine provinces.

* * * * * * *

SEARS CANADA TOYS WITH UTILITY SALES

In the face of deregulation of Canadian utilities, Sears Canada is exploring the potential of selling gas and electrical services. The initiative, which was first announced at the Hardlines Marketing Conference in Toronto last month, is another extension of the services offered by Sears under its HomeCentral program.

Larry Moore, vice-president of service sales for Sears Canada, says, "This gives continuity to the relationship with the appliances sold in the stores. It would further solidify a long-term relationship with customers , he says. Sears will likely form an alliance with a gas or electrical manufacturer. If given the go-ahead, a pilot program will be rolled out next year.

For third quarter ended September 30, West Fraser Timber Co. earned $56.7 million on sales of $610 million, compared with earnings of $12.5 million on sales of $514 million a year earlier. For the three quarters, earnings were $107.9 million on sales of $1.64 million, compared with a loss of $0.7 million on sales of $1.39 million in the same period last year. Third quarter sales for the retail division were $602.9 million, up from $510.9 million a year earlier. Earnings grew from $212.0 million to $227.4 million. Same-store sales increased 6%.

Castle Building Centres has added the following members: Eganville Country Depot, Eganville, Ont.; Crown Building Centre, Summerside, P.E.I.; Hector Building Supplies, Pictou and Stellarton, N.S.; J&H Industries Ltd., Milton and Shelburne, N.S.; and Meetah Building Supplies, Nelson House, Man.

Home Depot Canada will open its 50th store this Thursday in Victoria. It will be a regular 113,000-sq.ft. outlet with 13,000-sq.ft. garden centre.

Ainsworth Lumber Co. Ltd. has received provincial government approval to build two new facilities in Alberta: a combination OSB/particleboard plant next to its existing Grande Prairie facility and a hardwood sawmill located in the Valleyview area. The total cost of these two facilities is expected to be $140 million. Start-up of construction is scheduled for June 2000 with commencement of production expected by September 2001.

MAAX Inc. announces that it has just completed the acquisition of all of the shares of Boiseries Imperial, located in Cookshire, Qué. Boiseries Imperial manufactures hardwood kitchen cabinet doors and operates a 31,000 square foot manufacturing plant in which employs 82 employees.

Slocan Forest Products Ltd. had net earnings for the third quarter of 1999 of $34.2 million, compared with net earnings of $4.5 million for the third quarter of 1998. Sales in the third quarter of 1999 were $284.5 million, compared with sales of $248.1 million for the third quarter of 1998. For the first nine months of the year, the company had net earnings of $88.3 million or $2.31 per share compared with a net loss of $21.6 million or $0.56 per share for the first nine months of 1998. Sales for the first nine months of 1999 were $843.8 million, compared with $713.1 million in 1998.

TruServ Corp. in the U.S. has made a strategic alliance with United Stationers, a wholesale distributor of office supply products. The arrangement provides TruServ member dealers with access to a United's network of services and products, ranging from office supplies to cleaning products.

Newell Rubbermaid Inc. has announced its intention to purchase 51.24% the shares of Reynolds SA, a French manufacturer and supplier of writing instruments with 1998 sales US$82 million. Reynold sells in 70 countries.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	32.85
Canfor	13.30	4.25	11.75
Goodfellow	11.80	6.00	11.50
Hudsons Bay	23.85	4.00	17.10
MacMillan Blo.	27.85	12.05	24.00
Sears Canada	34.35	15.25	31.05
Taiga Forest	14.75	8.65	14.00
West Fraser	41.00	9.05	34.50

"To burn always with this hard, gem-like flame, to maintain this ecstasy, is success in life."
&endash; Walter Pater (1839-94)

PEOPLE ON THE MOVE

Louise Turgeon has joined Royal International as sales manager responsible for Québec and the Maritimes. She was formerly with Tremco and Cimatec. Mona Caplan has joined Royal as sales manager responsible for Ontario and Western Canada. She was formerly with Olfa and The Mibro Group. (1-800-465-4566)

Peter Bowes has joined Fiskars Canada as sales director, responsible for all aspects of the company's Canadian sales activities. He was formerly marketing and sales director for Karcher Canada. (905-940-8460)

"Today's competitive marketplace demands that you refixture and remodel - perhaps as often as every five years. Today's customer expects your store to look fresh and attractive. You've got to expand, in space and in products, to bring in new customers. Above all, you've got to make your business attractive to the next generation of owners as well as customers. If that next generation is to be your daughters or your, you've got to consider them now, not at some time in the future when you want to get out of the business."

- Dan Cotter, retiring chairman of TruServ Corp., in his farewell speech at the latest TruServ dealer market. These words echoed his remarks at our own Hardlines Marketing Conference last month.

U.S. online retail sales should reach US$20.2 billion this year as seven million Internet shoppers make their first electronic commerce purchases, a Forrester Research Inc. survey reports. A separate survey on holiday shopping said most shoppers would use emerging e-commerce businesses rather than websites tied to department stores or catalogues. Greenfield's survey said 70% of Internet users planned to do some or all of their holiday shopping online, with Amazon.com , CDnow and eToys Inc. being the main destinations, while Toys R Us's website was ranked fourth.

According to a report from Reuters, the U.S. wants out of the controversial softwood trade agreement with Canada when it expires in 2001. Such a decision could increase tensions between the trading partners, a U.S. trade official has told Ottawa. But another U.S. trade official said Washington may be willing to negotiate a new trade pact that would address American concerns about Canadian timber pricing. The current agreement expires April 1, 2001.

In September, the consumer price index rose 2.6%, indicating that Canadians paid that much more for goods and services than they did a year ago. The rise was due primarily to increased energy costs. Not including energy prices, the index rose 1.5% in September. Homeowners' maintenance and repair costs increased 3.7% in September while mortgage interest costs rose 0.4%.

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.