"The most practical kind of politics is the politics of decency." Theodore Roosevelt (1858-1919)

Multicultural shoppers drive Wal-Mart growth

  TORONTO - Evolving customer expectations are influencing all aspects of Wal-Mart's new Supercentre format stores, Jim Thompson, vice-president of merchandising for Wal-Mart Canada, told an audience at the HARDLINES 2007 Conference, held here last week. While the retailer's initial identity in Canada was built on the planks of price, product and people, changes to those platforms are necessary for continued growth, says Thompson. There are currently 17 Supercentre stores in Alberta and Ontario, and the company expects to have 28 by the end of its fiscal year in Feb. 2008. At about 200,000 square feet, and with approximately 135,000 SKUs, these stores are bigger than traditional Wal-Marts, which are about 80,000 square feet and carry about approximately 120,000 SKUs. They also carry more high-end products, particularly in the electronics category, which now includes such brands as Samsung and Dell. Home décor lines have also been expanded to offer more premium items, and are being merchandising in "boutique" settings that show "room solutions". Wal-Mart has identified new Canadians as a key growth driver, and is investing in research in heavily multicultural communities to determine what this shopper wants. Already, the company is tailoring its product mix to these customers. For example, in neighbourhoods with a high percentage of customers of South Asian origin, it is offering steam cookers and bamboo floral products.

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TruServ Canada named HARDLINES Newsmaker of the Year

 WINNIPEG - Forward-thinking initiatives, including assuming management of CanWel Hardware's retail banner business under ProRetail Services, and converting to a corporate structure to increase its flexibility and options, have earned TruServ Canada HARDLINES' 2007 Newsmaker of the Year award. In presenting the award at the HARDLINES Conference Breakfast to Bill Morrison, president and CEO of TruServ Canada, HARDLINES president Michael McLarney said the company was recognized because it displayed a level of entrepreneurialism and innovation rare in a company of its size. "The bold moves TruServ Canada has made reflect its willingness to embrace the challenges of change, and effectively positions it for continued growth," McLarney said.

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RONA CEO touts viability of smaller-format stores

TORONTO - "Warehouse stores will disappear in the not-too-distant future," predicted RONA's president and CEO Robert Dutton during his presentation at the recent HARDLINES Conference. But as a major operator of large-surface stores, RONA itself will not be compromised by this predicted market shift, Dutton went on to say, explaining that he was referring to warehouse stores, and not big boxes. "A store is a concept, not a size," said Dutton. According to Dutton, only traditionally-merchandised warehouse layouts are endangered. Smaller, more sophisticated big box concepts ("such as the ones RONA started developing about ten years ago") will outperform them, Dutton said, citing RONA's own proximity store concept-a mini big-box of about 50,000 square feet. During the question period, Dutton fielded the oft-repeated query of whether Lowe's will buy RONA. Dutton's mock-serious response got a big laugh from the audience. "Look at my eyes, each of you," he said, sternly staring out at the crowd. "We...are...not...for...sale."

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U.S. builder confidence falls to 22-year low

 NATIONAL REPORT - The confidence of American homebuilders that the slumping housing industry will revitalize any time soon has deteriorated to its lowest level in 22 years, according to a monthly index compiled by the National Association of Home Builders (NAHB), based on interviews with 362 companies, including D.R. Horton, which closed more homes than any U.S. builder in 2006. The company reported last week that its orders for the three months ended Sept. 30 plummeted by 39% to 6,374 homes, and the value of those orders dropped 48%. Horton is among the builders that have been discounting and auctioning homes in several communities, to little avail, as 48% of Horton's sales contracts were cancelled in the latest quarter.

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COMPANIES IN THE NEWS

BURNABY, BC - Future Shop stores have added recycling boxes for seven types of unused electronic products. The company, which has 127 stores across Canada, has partnered with an electronic waste management company to provide customers with a drop spot for such items as used batteries and cell phones, as well as CD and MP3 players. Greentec, an e-recycling company with offices in Buffalo, NY and Cambridge, ON, has made the same deal with Best Buy's 48 stores. MISSISSAUGA - Wal-Mart Canada will retrofit 1.75 million lights in 293 stores with higher efficiency bulbs, a follow-up move to the program it launched this summer to reduce store lighting by two-thirds. The giant retailer has already converted approximately half of its stores from 32-watt bulbs to a 25-watt alternative, and estimates that when the program is fully rolled out, overall store electricity use will be reduced by 7% and about more than $5 million will be saved annually. MONTREAL - Optimism about the economy is driving strong consumer purchasing in Quebec, according to a new survey by the Retail Council of Quebec. The survey suggests that 22% of Quebecers plan to purchase automobiles, furniture, or household appliances in the next six months, compared with 20% at this time last year. The highest proportion of consumers intending to make major purchases were found among people under 35, followed by adults between the ages of 45 and 54. In the next six months, Quebec consumers plan to spend about 6% more on hardware/renovation. TORONTO - Hudson's Bay Company (Hbc) has launched a line of five environmentally-friendly shopping bags under its new Global Mind brand. They will be available in select stores by the beginning of November, and customers who purchase the bags will receive 1,000 Hbc Rewards points. TEMISCAMING, QC - Tembec has completed the sale of approximately 345 hectares of land located in and around Fernie, BC to Ridgemont Holdings Ltd. Net proceeds for the transaction will be in excess of $16 million. The sale is part of the company's efforts to improve liquidity by roughly $100 million. SAN FRANSISCO - The Los Angeles-based investment advisor Chapman Capital is calling for Robert Mueller to step down as chairman and CEO of pro dealer Building Material Holding Corp., based here. Chapman advises two investment firms that collectively control about 9% of BMHC's stock. Robert Chapman, Chapman Capital's managing partner, is calling for Mueller's ouster because he believes Mueller's compensation is not in line with the company's recent performance. ATLANTA - Home Depot reported that a laptop computer on which personal information about 10,000 of its employees is stored was stolen from a car outside the home of one of its regional managers in Massachusetts. Ron DeFeo, the retailer's spokesman, said that names, addresses and Social Security numbers of those employees were stored on the computer. DeFeo added that no information about customers was involved, and that the laptop was password-protected. Home Depot officials do not think the thief was after personnel records. SHANGHAI - The China International Hardware Show, which runs here this week, will feature a significantly higher number of exhibitors and an expanded exhibition area than it did last year. More than 1,700 exhibitors from 25 countries are expected to fill 80,000 square metres of exhibition space. That's up from 1,600 exhibitors over 70,000 square metres in 2006. The largest contingents will be from Germany, China, and Italy, while exhibitors from India will account for the greatest increase in exhibition space at the fair. LONDON, U.K. - Home Retail Group, owners of Homebase, has bought 27 stores from Focus DIY, according to the Times Online. This comes just months after the ailing home improvement retailer was bought by a private equity firm for £1. The move will bring to 330 the number of Homebase stores, all of which will carry the Homebase store fronts. Home Retail Group paid £40 million in cash, according to the Times. .

People on the move

Dan Douek has joined Royal International Corp. as vice-president, sales. He was previously director of sales at the Innovak Group. (514-735-4566, ext. 340) Nick Cowling, formerly senior manager of communications and external affairs for Home Depot Canada, has been named group account director, corporate communications for Optimum Public Relations, a division of the Cossette Communications Group. (416-943-8011) Roger Adams, chief marketing officer for Home Depot is leaving to pursue other interests. John Ross, currently Home Depot's vp-advertising, will replace the 51-year-old Adams as interim chief marketing officer, according to TheStreet.com and Reuters.

ECONOMIC INDICATORS

Three months of growth in wholesale trade ended in August, slowed by weaker sales of automotive products, machinery and electronics. Wholesale sales fell 2.0% to an estimated $43.2 billion, offsetting gains of 1.8% in July and 0.3% in June. (StatsCan) Retailers sold $8.8 billion worth of furniture, home furnishings and electronics in the second quarter. Within the category, sales of home furnishings grew by 12.1%, while home electronics rose 7.9% and indoor furniture climbed 6.9%. Sales of hardware, lawn and garden products rose to $9.3 billion, up 6.6%. Hardware and home renovation products rose 8.1%, the highest increase since the third quarter of 2006, while LBM rose 8.2% over the same quarter last year. (StatsCan)

Overhead

"We like everything we see about the Canadian market, and are always open to new opportunities." Ron Beal, president and CEO of Orgill Inc, when asked at the HARDLINES Conference if his company would ever consider a move into Canada.

Classifieds

BRANCH MANAGER

Since 1959, Canadian owned Mitten Inc. has been an industry leader in quality vinyl siding exterior home products. With branches across Canada serving the siding industry and retail lumberyards, we are currently seeking a Branch Manager for our Winnipeg location. Responsible for increasing market penetration, overseeing other sales professionals, administration and warehousing activities in your branch, you will ideally be an experienced, successful sales professional with supervisory and branch management experience in a related industry. Mitten provides a positive work environment with competitive compensation and benefits. If you would like to join a Canadian success story that believes in the value of its workforce, please send your resume stating salary expectations in confidence to: Ms. Connie Barnard, Human Resources Manager, 70 Curtis Avenue North, Paris, Ontario N3L 3T2 or fax: 519-442-3214 or email: connieb@mittenvinyl.com Mitten Inc. hires on the basis of merit and we encourage all qualified persons to apply however, only those selected for an interview will be contacted. No telephone calls please. Deadline for submission of resumes is October 15, 2007.

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