HARDLINES
Canada’s electronic information service for home improvement industry
October 1, 2001
Volume vii, #40
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Canadian Tire’s new strategy includes possible acquisitions, geographic expansion
* Home Hardware puts push on Home Furniture stores
* Canfor adopts CSA forestry certification
* Rona looks to other banners for new recruits
* * * * * *
WANT THE BIG PICTURE?
GO TO THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:
Contact Trade Show Travel by phone (1-877-873-7469) or fax (403-247-1510) to arrange your trip. Packages include return air fare and accommodations, as well as admission to the Exhibition. BOOK EARLY!
Packages also include an invitation to the internationally famous Canada Night Reception, sponsored by Hardlines and Cologne International Trade Shows. We’ll see you in Cologne.
* * * * * *
DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?
THEN YOU NEED HARDLINES RETAIL REPORT 2001 –
A turnkey PowerPoint presentation to wow your boss at planning time. Beverly said we had to have this after getting so many calls every year from people looking for a snapshot of the market: This CD-ROM presentation looks fabulous: it comes complete with charts, photos and pie charts. It includes:
- size of market, including provincial breakouts
- market share by retail format
- growth and strategies of the big boxes & Canadian Tire
- top 10 home improvement retailers
- ranking of buying groups
A MUST for anyone trying to explain the Canadian market. Priced VERY LOW at only $179 + taxes for Hardlines subscribers! (WAY more expensive for non-subscribers!) Call 416.489.3396 or nancy@hardlines.ca to order your CD now.
* * * * * *
"HARDLINES INDUSTRY REPORT - HOME IMPROVEMENT RETAILING IN CANADA"
This huge report offers a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends – and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers! For more information, contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396.
(go to https://hardlines.ca/html/industry_report.html)
______________________________________________
HOME FURNITURE BOOSTS SELECTION,
LAUNCHES AD CAMPAIGN
Home Furniture, the specialty home furnishings banner of Home Hardware Stores, is trying to raise its consumer profile with a beefed up catalogue, an expanded private label program and more emphasis on home décor items.
It’s also trying to add dealers: five new stores have come on board already this year, in addition to seven last year, for a total of 60. Home is also eyeing the Toronto market and is looking for sites in the GTA that can be developed for new stores.
Home Furniture’s own furniture brand, Premier Collection, is being expanded to feature more styles and fabric choices. Home’s Paint Experts program, a fixture in its hardware and building centre outlets, is also being promoted to Home Furniture dealers. And with more than 50% of its sales coming from special orders, Home has expanded the range of fabrics and colours consumers can choose from. The chain has launched its first advertising campaign this Fall, which includes a twice-a-year four-colour catalogue.
______________________________________________
CANADIAN TIRE STRATEGY INCLUDES SLOWER
RETAIL EXPANSION, POSSIBLE STRATEGIC ALLIANCES
A pitch to Bay Street analysts last week revealed Canadian Tire’s plans to realize annual revenue increases of at least 10% from 2001 to 2005, and profit increases of up to 15% per year. The presentation was headed up by Canadian Tire’s president and CEO Wayne Sales, who has been at the helm for one year following the exit of his predecessor, Stephen Bachand.
Sales said the company is on target to achieve a 7%-9% increase in profits this year, while sales are expected to rise 6%-8%.
The strategy will pay more attention to its credit card and petroleum businesses. Fine tuning of the merchandising will be seen on Canadian Tire’s shelves by next Spring, with emphasis on more upscale product categories and increased retail space in existing stores. The equity of the Canadian Tire brand in Canada is pushing the company to consider completely new businesses, services and product lines.
Nor does the company rule out the possibility of an acquisition in the U.S. or a strategic partnership. In fact, it is evaluating new opportunities even now that could take it outside of Canada, in either existing businesses or start-ups.
With an eye on U.S. retailers like Target, CTC wants to exploit the huge growth potential it sees in house wares. One way will be with the introduction of "Persona," a new brand for CTC’s private-label house wares products. The brand will be applied to everything from cookware to small kitchen appliances. Some trimming of SKUs in the existing assortment will take place to make room for a wider selection of products, including more upscale assortments, in both national brands and Persona.
Other things to watch for in Spring 2002 will include changes to the automotive section, with more emphasis on high performance accessories, and custom kits. More emphasis will be placed on national brands and a décor-based paint selection, including Pratt & Lambert, Martha Stewart and Thompson. Décor will be enhanced further by the presence of designer names such as Laura Ashley.
According to Mark Foote, president of Canadian Tire Retail, the company will take a page from the big box book by converting some of the warehouse space in its stores to retail. About 40% of the larger stores, for example, are dedicated to the back room. By turning anywhere from one-half to two-thirds of that space into retail, Foote says the company could make room for the new products and proposed new services. The added sales, he says, could boost the top line by up to $800 million.
______________________________________________
CANFOR FIRST TO APPLY NEW CSA
FOREST CERTIFICATION PROGRAM
Canadian Forest Products Ltd. (Canfor) has become the first company to apply CSA’s new sustainable Forest Management Mark. The new program tracks products from a CAN/CSA-Z809-certified forest through all phases of ownership, transportation and transformation prior to reaching the consumer.
The mark will appear on the packaging of products being produced at Canfor’s sawmill in Grande Prairie, AB. The sawmill produces 210 million board feet of dimension lumber a year for customers such as Totem, Home Depot, Lowe’s, Wickes, 84 Lumber and Carolina Holdings.
CSA introduced its marking program in July of this year. CAN/CSA-Z809 forest certification has been in place since 1996. More than 5 million hectares of Canadian forests have been certified to this standard in the last five years.
______________________________________________
QUICK FIX FOR LUMBER THROES
MEETS COLD RECEPTION BY OTTAWA
Doman Industries Ltd., a B.C. coastal lumber producer, has called on the federal government to negotiate an export tax on softwood lumber with the U.S. Lumber industry representatives south of the border have also called on such a tax as an interim step to a long-lasting deal.
The proposed 15% tax would be levied on exports when the price falls below US$250 per 1,000 board feet, which, according to estimates, happens 10%-20% of the time. The tax would be in place for two years while a binational panel sought a permanent solution.
About 2,000 of Doman’s workers, approximately half its labour force, have been laid off throughout the drawn-out talks between Ottawa and Washington. A swift solution that brings the industry back to working order is the basis of the appeal.
Ottawa, however, seems intent on discussions that bring about a long-term solution.
"Minister Pettigrew has suggested many times that we need more than a quick fix," said Sébastien Théberge, spokesman for Pierre Pettigrew, Minister for International Trade. "There’s never been a consensus [among provinces and industry] on an export tax."
_____________________________________________
COMPANIES IN THE NEWS
Rona says it will have more announcements within the next several weeks as it steps up its recruitment drive for new dealers. Continued growth is less likely to come from acquisitions at this time, as the company struggles to rationalize the operations of five different companies into one. Instead, growth is likely to come from existing independents who wish to switch banners in favour of Rona. A big push is being put on Rona’s presence in Western Canada. Also: Rona will break ground on its Gloucester and Mississauga big box stores in next few weeks for opening in Spring 2002 (no word on the Kingston, ON store).
Hudson’s Bay Co. has selected two agencies to give a boost to the promotion of its new loyalty program, HBC Rewards. Padulo Integrated Inc. will handle the retailer’s overall positioning and general advertising, while Vickers & Benson will be the agency of record for direct marketing and in-store initiatives.
Richelieu Hardware has posted strong results for its third quarter, with sales totalling $58.5 million, up 15.7% over 2000. Results for the first nine months saw sales rise 15.3% to $164.6 million. Net earnings grew 17.3% to $10.2 million.
Bed Bath & Beyond Inc. reported its second-quarter profits rose 24%, boosted by relatively strong sales in an otherwise difficult U.S. retail environment. The retailer, which sells bed linen, bath accessories and kitchen items in 359 U.S. stores, said its 2Q net income rose to US$54.0 million from US$43.6 million.
Japanese newspaper Yomiuri Shimbun has reported that Wal-Mart and Mycal Corp., a failed Japanese supermarket operator, were working out a deal which could result in Wal-Mart taking over 96 profitable stores while shutting 48 other Mycal outlets. The U.S. retailer plans to make a decision by the end of September. The US$850.8 million purchase of the country’s fourth-largest supermarket chain operator will represent Wal-Mart’s first foothold in the lucrative Japanese market.
Drugstore chain Walgreen Co. has joined Wal-Mart Stores Inc. in refusing to accept debit cards on the Visa Interlink network. The companies viewed Visa's new strategy as anti-consumer, since the new structure will result in doubled transaction costs for retailers. Customers can still use Interlink debit cards if they sign a receipt at the checkout counter.
_____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
24.07 |
| Canfor |
16.95 |
7.65 |
9.05 |
| Emco |
7.50 |
2.60 |
4.00 |
| Goodfellow |
11.00 |
8.00 |
8.65 |
| Home Depot |
49.74 |
47.61 |
38.37 |
| Hudson's Bay |
17.65 |
12.40 |
15.39 |
| Lowe's |
64.90 |
34.25 |
31.65 |
| Sears Canada |
37.25 |
18.55 |
13.85 |
| Taiga Forest |
10.00 |
6.80 |
7.50 |
| West Fraser |
36.50 |
21.00 |
31.62 |
______________________________________________
"Fanatics seldom laugh. They never laugh at themselves."
– James M. Gillis (American writer)
"If you can’t laugh at yourself, someone else will."
– Mr. Toronto
______________________________________________
MARKET INDICATORS
The Composite Index was flat in August for the second month in a row, according Statistics Canada. Three of the four components that rose were related to household demand. Manufacturing continued to contract, as did business services. The housing index returned to the positive trend it has shown most of the year. Housing starts rebounded in August, regaining almost all of the ground lost in July. Spending on durable goods was restrained by the slack in incomes and labour market conditions. Spending on both furniture and appliances and other durable goods slowed further.
The Canadian Construction Association has released construction growth rate and employment projections that show industry decreases until 2003. The projections reveal that construction GDP is expected to shrink by 1.4% in 2001, and grow by only 1% in 2002 and 1.7% in 2003. By 2004, GDP is expected to climb to 3.1% and 2.8% in 2006.
U.S. consumer confidence fell sharply in September, suffering its largest one-month drop since October 1990, during the Gulf crisis. The Conference Board, a New York-based private business research group, said its monthly index of consumer confidence fell 16.4 points to 97.6 in September, from a downwardly-revised 114.0 in August. This was the lowest reading since January 1996. Wall Street economists had forecast a fall to 105.1.
Sales of existing homes in the U.S. rose at a record pace in the month of August, increasing 5.8% to a seasonally adjusted annual rate of 5.5 million units from a revised rate of 5.2 million units in July. The increase in the pace of existing home sales contrasted with a 6.9% drop in housing starts in August reported by the Commerce Department last week.
* * * * * *
INDUSTRY NEWS. EVERY DAY –
Our website has daily updates on retail and industry news that matter to you.
Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.
* * * * * *
PEOPLE ON THE MOVE
Jim McCrea has accepted the position of aftermarket sales manager, North America for Philips Automotive Lighting in Detroit, MI. He will report to David Davoudi, the new general manager of Philips Automotive Lighting for North America. Davoudi replaces Frank Hiemstra, who will be retiring this year. (1-800-555-0050)
CORRECTION: Paul Secen has been promoted to national marketing manager for Stanley Hardware and Stanley Tools. He was formerly at Stanley Works Global Procurement, purchased products. (905-825-1981)
______________________________________________
OVERHEARD ...
… "The importance of new products? It’s huge. It’s all about new product development, innovation."
– Mark Foote, president of Canadian Tire Retail, while walking the floor of last week’s dealer market in Toronto. He adds that this pursuit of innovation requires a lot of travel to the Orient and to European shows for new ideas.
______________________________________________
* * * * HARDLINES MARKETPLACE* * * *
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp
______________________________________________
NORAL MARKETING:
Representing leading manufacturers since 1986.
We ensure high profile retail presence for a wide range of product lines.
Why not make yours one of them?
www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201
* * * * * *
OUTSIDE SALES BUILDING MATERIALS,
SOUTHWESTERN ONTARIO:
Goodfellow Inc. is looking for a BUILDING MATERIALS SALES REPRESENTATIVE, Southwestern Ontario. Some of the products included in the line are hardwood and flooring, pre-finished siding, composite decking, ceiling tile, lumber and panels.
The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.
Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mlohmus@goodfellowinc.com; fax: 905-854-6104.
* * * * * *
VICE-PRESIDENT RESIDENTIAL MARKETS:
Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.
Business is good, and it’s time to add a Sales and Marketing leader to direct the strategic planning process and drive unprecedented growth in both the Retail (DIY, LBM, Mass Merchants and Co-ops) and new home construction (builders, remodelers, home service organizations) channels.
Based in the Canadian corporate office in Toronto, you’ll also provide collaborative input to the U.S. parent for sales and marketing strategy alignment, utilizing their strong brand management support team. In addition, you will develop and direct the Canadian Sales and Trade Marketing group.
Among your verifiable skills are both strategic planning and tactical execution in the home improvement and new construction markets. You’re as comfortable presenting programs in front of the Customer as you are putting forward your plans to the company President for approval. "Hitting the home run" would appropriately describe some of your individual and team-based business successes.
Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.
Please contact Wolf Gugler, quoting file #02-114. Confidentiality is assured. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite 300, Don Mills, ON; M3B 3N7; Phone: 416-386-1719; email: admin@wolfgugler.com; website: http://www.wolfgugler.com <http://www.wolfgugler.com/>
* * * * * *
RETAIL SALES CONSULTANT:
Ace Hardware Canada Ltd., a worldwide leader in hardware supply and distribution with operations in Markham, Brantford and Calgary, has an immediate vacancy for the position of RETAIL SALES CONSULTANT—Saskatchewan and Manitoba Region.
As the successful candidate, you will have five or more years sales experience in the wholesale hardware or LBM Industry with extensive knowledge of how to provide effective support to retail hardware customers. At Ace Canada, "effective support" means listening and responding to the needs of our customers; attending to detail and providing consistent follow-up. You have a reasonable knowledge of how to use computers to advantage; and most of all, you are highly organized and capable of working both independently and as part of the team.
Ace Canada offers a competitive compensation package and career potential. If you are qualified for this position, please fax or e-mail your résumé, including salary history/expectations to: Vice-President, Operations and Administration, Ace Hardware Canada Ltd., 80 Micro Court, 3rd Floor, Markham, ON; L3R 9Z5; fax 905-475-2721; e-mail: stan.sauer@acehardware.ca
* * * * * *
THE HARDLINES MARKETPLACE: just $16 per line.
A classified ad with Hardlines is the most direct way to industry eyes.
Over 3,000 executives in the industry come in contact with our email and fax publications …
… and have you seen our Marketplace in our new website? https://hardlines.ca/html/classifieds_new.asp
Publish your ad where it matters. Get industry exposure today.
Contact us at 416-489-3396 or email: buzz@hardlines.ca
______________________________________________
Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2001 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Eugenia Canas, Assistant Editor: buzz@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES "FAIR PLAY" POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.
HARDLINES
Canada’s electronic information service for home improvement industry
October 1, 2001
Volume vii, #40
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Canadian Tire’s new strategy includes possible acquisitions, geographic expansion
* Home Hardware puts push on Home Furniture stores
* Canfor adopts CSA forestry certification
* Rona looks to other banners for new recruits
* * * * * *
WANT THE BIG PICTURE?
GO TO THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:
Contact Trade Show Travel by phone (1-877-873-7469) or fax (403-247-1510) to arrange your trip. Packages include return air fare and accommodations, as well as admission to the Exhibition. BOOK EARLY!
Packages also include an invitation to the internationally famous Canada Night Reception, sponsored by Hardlines and Cologne International Trade Shows. We’ll see you in Cologne.
* * * * * *
DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?
THEN YOU NEED HARDLINES RETAIL REPORT 2001 –
A turnkey PowerPoint presentation to wow your boss at planning time. Beverly said we had to have this after getting so many calls every year from people looking for a snapshot of the market: This CD-ROM presentation looks fabulous: it comes complete with charts, photos and pie charts. It includes:
- size of market, including provincial breakouts
- market share by retail format
- growth and strategies of the big boxes & Canadian Tire
- top 10 home improvement retailers
- ranking of buying groups
A MUST for anyone trying to explain the Canadian market. Priced VERY LOW at only $179 + taxes for Hardlines subscribers! (WAY more expensive for non-subscribers!) Call 416.489.3396 or nancy@hardlines.ca to order your CD now.
* * * * * *
"HARDLINES INDUSTRY REPORT - HOME IMPROVEMENT RETAILING IN CANADA"
This huge report offers a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends – and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers! For more information, contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396.
(go to https://hardlines.ca/html/industry_report.html)
______________________________________________
HOME FURNITURE BOOSTS SELECTION,
LAUNCHES AD CAMPAIGN
Home Furniture, the specialty home furnishings banner of Home Hardware Stores, is trying to raise its consumer profile with a beefed up catalogue, an expanded private label program and more emphasis on home décor items.
It’s also trying to add dealers: five new stores have come on board already this year, in addition to seven last year, for a total of 60. Home is also eyeing the Toronto market and is looking for sites in the GTA that can be developed for new stores.
Home Furniture’s own furniture brand, Premier Collection, is being expanded to feature more styles and fabric choices. Home’s Paint Experts program, a fixture in its hardware and building centre outlets, is also being promoted to Home Furniture dealers. And with more than 50% of its sales coming from special orders, Home has expanded the range of fabrics and colours consumers can choose from. The chain has launched its first advertising campaign this Fall, which includes a twice-a-year four-colour catalogue.
______________________________________________
CANADIAN TIRE STRATEGY INCLUDES SLOWER
RETAIL EXPANSION, POSSIBLE STRATEGIC ALLIANCES
A pitch to Bay Street analysts last week revealed Canadian Tire’s plans to realize annual revenue increases of at least 10% from 2001 to 2005, and profit increases of up to 15% per year. The presentation was headed up by Canadian Tire’s president and CEO Wayne Sales, who has been at the helm for one year following the exit of his predecessor, Stephen Bachand.
Sales said the company is on target to achieve a 7%-9% increase in profits this year, while sales are expected to rise 6%-8%.
The strategy will pay more attention to its credit card and petroleum businesses. Fine tuning of the merchandising will be seen on Canadian Tire’s shelves by next Spring, with emphasis on more upscale product categories and increased retail space in existing stores. The equity of the Canadian Tire brand in Canada is pushing the company to consider completely new businesses, services and product lines.
Nor does the company rule out the possibility of an acquisition in the U.S. or a strategic partnership. In fact, it is evaluating new opportunities even now that could take it outside of Canada, in either existing businesses or start-ups.
With an eye on U.S. retailers like Target, CTC wants to exploit the huge growth potential it sees in house wares. One way will be with the introduction of "Persona," a new brand for CTC’s private-label house wares products. The brand will be applied to everything from cookware to small kitchen appliances. Some trimming of SKUs in the existing assortment will take place to make room for a wider selection of products, including more upscale assortments, in both national brands and Persona.
Other things to watch for in Spring 2002 will include changes to the automotive section, with more emphasis on high performance accessories, and custom kits. More emphasis will be placed on national brands and a décor-based paint selection, including Pratt & Lambert, Martha Stewart and Thompson. Décor will be enhanced further by the presence of designer names such as Laura Ashley.
According to Mark Foote, president of Canadian Tire Retail, the company will take a page from the big box book by converting some of the warehouse space in its stores to retail. About 40% of the larger stores, for example, are dedicated to the back room. By turning anywhere from one-half to two-thirds of that space into retail, Foote says the company could make room for the new products and proposed new services. The added sales, he says, could boost the top line by up to $800 million.
______________________________________________
CANFOR FIRST TO APPLY NEW CSA
FOREST CERTIFICATION PROGRAM
Canadian Forest Products Ltd. (Canfor) has become the first company to apply CSA’s new sustainable Forest Management Mark. The new program tracks products from a CAN/CSA-Z809-certified forest through all phases of ownership, transportation and transformation prior to reaching the consumer.
The mark will appear on the packaging of products being produced at Canfor’s sawmill in Grande Prairie, AB. The sawmill produces 210 million board feet of dimension lumber a year for customers such as Totem, Home Depot, Lowe’s, Wickes, 84 Lumber and Carolina Holdings.
CSA introduced its marking program in July of this year. CAN/CSA-Z809 forest certification has been in place since 1996. More than 5 million hectares of Canadian forests have been certified to this standard in the last five years.
______________________________________________
QUICK FIX FOR LUMBER THROES
MEETS COLD RECEPTION BY OTTAWA
Doman Industries Ltd., a B.C. coastal lumber producer, has called on the federal government to negotiate an export tax on softwood lumber with the U.S. Lumber industry representatives south of the border have also called on such a tax as an interim step to a long-lasting deal.
The proposed 15% tax would be levied on exports when the price falls below US$250 per 1,000 board feet, which, according to estimates, happens 10%-20% of the time. The tax would be in place for two years while a binational panel sought a permanent solution.
About 2,000 of Doman’s workers, approximately half its labour force, have been laid off throughout the drawn-out talks between Ottawa and Washington. A swift solution that brings the industry back to working order is the basis of the appeal.
Ottawa, however, seems intent on discussions that bring about a long-term solution.
"Minister Pettigrew has suggested many times that we need more than a quick fix," said Sébastien Théberge, spokesman for Pierre Pettigrew, Minister for International Trade. "There’s never been a consensus [among provinces and industry] on an export tax."
_____________________________________________
COMPANIES IN THE NEWS
Rona says it will have more announcements within the next several weeks as it steps up its recruitment drive for new dealers. Continued growth is less likely to come from acquisitions at this time, as the company struggles to rationalize the operations of five different companies into one. Instead, growth is likely to come from existing independents who wish to switch banners in favour of Rona. A big push is being put on Rona’s presence in Western Canada. Also: Rona will break ground on its Gloucester and Mississauga big box stores in next few weeks for opening in Spring 2002 (no word on the Kingston, ON store).
Hudson’s Bay Co. has selected two agencies to give a boost to the promotion of its new loyalty program, HBC Rewards. Padulo Integrated Inc. will handle the retailer’s overall positioning and general advertising, while Vickers & Benson will be the agency of record for direct marketing and in-store initiatives.
Richelieu Hardware has posted strong results for its third quarter, with sales totalling $58.5 million, up 15.7% over 2000. Results for the first nine months saw sales rise 15.3% to $164.6 million. Net earnings grew 17.3% to $10.2 million.
Bed Bath & Beyond Inc. reported its second-quarter profits rose 24%, boosted by relatively strong sales in an otherwise difficult U.S. retail environment. The retailer, which sells bed linen, bath accessories and kitchen items in 359 U.S. stores, said its 2Q net income rose to US$54.0 million from US$43.6 million.
Japanese newspaper Yomiuri Shimbun has reported that Wal-Mart and Mycal Corp., a failed Japanese supermarket operator, were working out a deal which could result in Wal-Mart taking over 96 profitable stores while shutting 48 other Mycal outlets. The U.S. retailer plans to make a decision by the end of September. The US$850.8 million purchase of the country’s fourth-largest supermarket chain operator will represent Wal-Mart’s first foothold in the lucrative Japanese market.
Drugstore chain Walgreen Co. has joined Wal-Mart Stores Inc. in refusing to accept debit cards on the Visa Interlink network. The companies viewed Visa's new strategy as anti-consumer, since the new structure will result in doubled transaction costs for retailers. Customers can still use Interlink debit cards if they sign a receipt at the checkout counter.
_____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
24.07 |
| Canfor |
16.95 |
7.65 |
9.05 |
| Emco |
7.50 |
2.60 |
4.00 |
| Goodfellow |
11.00 |
8.00 |
8.65 |
| Home Depot |
49.74 |
47.61 |
38.37 |
| Hudson's Bay |
17.65 |
12.40 |
15.39 |
| Lowe's |
64.90 |
34.25 |
31.65 |
| Sears Canada |
37.25 |
18.55 |
13.85 |
| Taiga Forest |
10.00 |
6.80 |
7.50 |
| West Fraser |
36.50 |
21.00 |
31.62 |
______________________________________________
"Fanatics seldom laugh. They never laugh at themselves."
– James M. Gillis (American writer)
"If you can’t laugh at yourself, someone else will."
– Mr. Toronto
______________________________________________
MARKET INDICATORS
The Composite Index was flat in August for the second month in a row, according Statistics Canada. Three of the four components that rose were related to household demand. Manufacturing continued to contract, as did business services. The housing index returned to the positive trend it has shown most of the year. Housing starts rebounded in August, regaining almost all of the ground lost in July. Spending on durable goods was restrained by the slack in incomes and labour market conditions. Spending on both furniture and appliances and other durable goods slowed further.
The Canadian Construction Association has released construction growth rate and employment projections that show industry decreases until 2003. The projections reveal that construction GDP is expected to shrink by 1.4% in 2001, and grow by only 1% in 2002 and 1.7% in 2003. By 2004, GDP is expected to climb to 3.1% and 2.8% in 2006.
U.S. consumer confidence fell sharply in September, suffering its largest one-month drop since October 1990, during the Gulf crisis. The Conference Board, a New York-based private business research group, said its monthly index of consumer confidence fell 16.4 points to 97.6 in September, from a downwardly-revised 114.0 in August. This was the lowest reading since January 1996. Wall Street economists had forecast a fall to 105.1.
Sales of existing homes in the U.S. rose at a record pace in the month of August, increasing 5.8% to a seasonally adjusted annual rate of 5.5 million units from a revised rate of 5.2 million units in July. The increase in the pace of existing home sales contrasted with a 6.9% drop in housing starts in August reported by the Commerce Department last week.
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INDUSTRY NEWS. EVERY DAY –
Our website has daily updates on retail and industry news that matter to you.
Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.
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PEOPLE ON THE MOVE
Jim McCrea has accepted the position of aftermarket sales manager, North America for Philips Automotive Lighting in Detroit, MI. He will report to David Davoudi, the new general manager of Philips Automotive Lighting for North America. Davoudi replaces Frank Hiemstra, who will be retiring this year. (1-800-555-0050)
CORRECTION: Paul Secen has been promoted to national marketing manager for Stanley Hardware and Stanley Tools. He was formerly at Stanley Works Global Procurement, purchased products. (905-825-1981)
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OVERHEARD ...
… "The importance of new products? It’s huge. It’s all about new product development, innovation."
– Mark Foote, president of Canadian Tire Retail, while walking the floor of last week’s dealer market in Toronto. He adds that this pursuit of innovation requires a lot of travel to the Orient and to European shows for new ideas.
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NORAL MARKETING:
Representing leading manufacturers since 1986.
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Why not make yours one of them?
www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201
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OUTSIDE SALES BUILDING MATERIALS,
SOUTHWESTERN ONTARIO:
Goodfellow Inc. is looking for a BUILDING MATERIALS SALES REPRESENTATIVE, Southwestern Ontario. Some of the products included in the line are hardwood and flooring, pre-finished siding, composite decking, ceiling tile, lumber and panels.
The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.
Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mlohmus@goodfellowinc.com; fax: 905-854-6104.
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VICE-PRESIDENT RESIDENTIAL MARKETS:
Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.
Business is good, and it’s time to add a Sales and Marketing leader to direct the strategic planning process and drive unprecedented growth in both the Retail (DIY, LBM, Mass Merchants and Co-ops) and new home construction (builders, remodelers, home service organizations) channels.
Based in the Canadian corporate office in Toronto, you’ll also provide collaborative input to the U.S. parent for sales and marketing strategy alignment, utilizing their strong brand management support team. In addition, you will develop and direct the Canadian Sales and Trade Marketing group.
Among your verifiable skills are both strategic planning and tactical execution in the home improvement and new construction markets. You’re as comfortable presenting programs in front of the Customer as you are putting forward your plans to the company President for approval. "Hitting the home run" would appropriately describe some of your individual and team-based business successes.
Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.
Please contact Wolf Gugler, quoting file #02-114. Confidentiality is assured. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite 300, Don Mills, ON; M3B 3N7; Phone: 416-386-1719; email: admin@wolfgugler.com; website: http://www.wolfgugler.com <http://www.wolfgugler.com/>
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RETAIL SALES CONSULTANT:
Ace Hardware Canada Ltd., a worldwide leader in hardware supply and distribution with operations in Markham, Brantford and Calgary, has an immediate vacancy for the position of RETAIL SALES CONSULTANT—Saskatchewan and Manitoba Region.
As the successful candidate, you will have five or more years sales experience in the wholesale hardware or LBM Industry with extensive knowledge of how to provide effective support to retail hardware customers. At Ace Canada, "effective support" means listening and responding to the needs of our customers; attending to detail and providing consistent follow-up. You have a reasonable knowledge of how to use computers to advantage; and most of all, you are highly organized and capable of working both independently and as part of the team.
Ace Canada offers a competitive compensation package and career potential. If you are qualified for this position, please fax or e-mail your résumé, including salary history/expectations to: Vice-President, Operations and Administration, Ace Hardware Canada Ltd., 80 Micro Court, 3rd Floor, Markham, ON; L3R 9Z5; fax 905-475-2721; e-mail: stan.sauer@acehardware.ca
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