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Phone: 416—489—3396
Michael McLarney, Editor & President
mike@hardlines.ca
Beverly Allen, Publisher
bev@hardlines.ca
Brady Peever, Client Services Manager
brady@hardlines.ca
John Caulfield, Contributing Editor
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October 26, 2009, Volume xv, #40 |
In This Issue:
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“All the world’s a stage and all the men and women merely players: They have their exits and their entrances; and one man in his time plays many parts.” —William Shakespeare (British playwright, 1564-1616) |
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Re-investment in stores essential says Canadian Tire vp | ||||||||||||||||||||
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Buying groups look to gain share in down market | ||||||||||||||||||||
SPECIAL REPORT — The slowdown that began in earnest in this industry in 2007 caught up to the buying groups in 2008, and this year holds little promise of a significant turnaround. However, the independent dealers have been faring better than their main competitor, the big boxes. And dealers organized within LBM buying groups were better off than other independents, according to the latest Buying Group Report from Hardlines. Building centres as a retail sector saw sales drop by 3.4% in 2008, the buying groups collectively were down by almost half that. Buying group purchases remained steady through last year, as well, and these are expected to improve slightly in 2009, as dealers look for ways to consolidate their purchases in a more meaningful fashion. Some groups have proved incredibly resilient this year. Castle Building Centres, with almost 90 dealers in the relatively stable Atlantic Canada market, has managed to stay almost on par with last year's sales, according to the report's estimates. Consolidation continues among the groups, as well. In recent years, Canada's largest buying group has been TIM-BR MART, with $3.4 billion in retail sales generated by more than 650 dealers across the country. TIM-BR MART was overtaken effective Jan. 1, when two buying groups, Delroc Industries and Sexton Group, and two co-ops, Federated Co-operatives Ltd. and La Coop fédérée, joined Independent Lumber Dealers Co-operative. ILDC now represents more than $4 billion in sales through 1,000-plus outlets. Despite consolidation, smaller niche groups continue to flourish. IRLY Distributors, based in Surrey, B.C., continues to add members (see story, this issue), while TORBSA, based in Bolton, Ont., has also seen its membership grow. (The Buying Group Report — including the Incredible Buying Group Org Chart — appears in the latest Hardlines Quarterly Report, being sent this week to our HQR subscribers. To get your copy, contact us at the Information World Headquarters! — Michael)Top. |
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Roots: build your brand inside and out | ||||||||||||||||||||
TORONTO — Communicating your brand — and your company's values —- has to be a process that includes both your customers and your own personnel. ![]() |
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Crossroads C&I partners with Johns Manville | ||||||||||||||||||||
EDMONTON — Johns Manville, the insulation provider owned by Berkshire Hathaway, has been selected as the primary supplier of mechanical insulation products and accessories to Crossroads C&I Distributors, a 46-year-old company based here. Under the agreement, Crossroads C&I will serve as JM's authorized full-line distributor of mechanical insulation products in Alberta, British Columbia, Yukon and Northwest Territories, handling distribution of all of JM's pipe, equipment and air handling insulation products. "Crossroads C&I is the service leader in their markets, and Johns Manville is fortunate to partner with a company so focused on customer satisfaction," says Dave Skelly, director of sales for Johns Manville's Insulation Systems business. "We are excited to establish a full-line relationship with Crossroads C&I for this important geographic region." Beginning immediately, Crossroads C&I customers will have access to the full line of JM pipe and equipment and air handling products. | ||||||||||||||||||||
IRLY's newest member has grave product selection | ||||||||||||||||||||
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Thanks to all our Faithful Hardlines Subscribers and friends who joined us for the 14th Annual Hardlines Conference last week. Bev, Brady and I all feel confident that this was our best event ever! We started the first day with Susan Robinson of IRLY Distributors, who got us working with some great networking exercises. Then we finished on day two with a one-on-one interview with the first lady of home improvement retailing, Annette Verschuren of Home Depot Canada and Asia. What a time we had! — Michael |
DID YOU KNOW…? |
…that we are just exhausted after our Conference (but pleasantly so — what an amazing time we had!), but can't think of anything more you should know for this week. We'll be back on track by our next issue — Michael. |
NEWS IN BRIEF |
PICKERING, Ont. — Signature Aluminum Canada Inc. has announced that it will discontinue the manufacture of aluminum ladders. Referring to "changes in the market place," the company says it will focus on its core business of aluminum extrusions manufacture. Signature has stopped taking orders, but will continue to ship existing orders until Nov. 20.
SILVIS, Ill. — Two Former Ace dealers in the Quad Cities area have filed a suit against Ace Hardware. The plaintiffs charge that Ace's "Vision 21" store program did not achieve sales goals promised by the company. The dealers invested in three larger-format Ace stores between 2005 and 2007, of which two have since closed.
NEW YORK — Wal-Mart CEO Mike Duke told investors here recently that expansion plans will include smaller, "more efficient" stores that will have about 25,000 fewer square feet than regular 195,000-square-foot outlets. The new stores, which will carry food and general merchandise, are seen as a way for Wal-Mart to increase its presence in urban markets.
SAN JOSE, Calif. — Law enforcement officials have placed into custody a married couple who allegedly embezzled at least $1.3 million from Payless Hardware & Rockery, a local Ace Hardware-affiliated store. The Santa Clara County's District Attorney's office has charged Desiree and Ruben Herrera with 14 counts of grand larceny, money laundering and tax fraud. Ms. Herrera had been an accounts receivables clerk with the store from 2002 through 2009. The San Jose Mercury-News reports that the store's office manager, Karey Thatcher, discovered what was going on when, in the process of switching accounting systems, she asked Herrera to begin providing her numbers. Those numbers didn't sync with Thatcher's numbers.
BRENTWOOD, Tenn. — Tractor Supply Company has reported a 1.9% increase in net sales for the third quarter to $747.7 million from $733.9 million. Same-store sales decreased 5.1%, compared with a 6.2% increase in the prior year's third quarter. The same-store sales decline resulted primarily from softness in sales of seasonal big-ticket items and the lift in sales last year of hurricane-related merchandise and seasonal heating products. However, sales in core consumable, usable and edible categories, including animal and pet-related products as well as repair and replacement parts, helped offset the decline.
KINGSLEY, England — The Tesco Express that has just opened here has no cashiers. Instead, the store offers five self-serve checkouts. The company, Britain's largest retailer, is calling it an "assisted service store."
CLEVELAND — Sherwin-Williams, the largest paint company in North America, saw its earnings decline only slightly, by 1% to $175.2 million, during the three months ended Sept. 30. The company's revenue during that period, though, took a steeper dip, by nearly 12% to $1.997 billion. Through nine months, the paint maker's sales were down 12.5% to just under $5.5 billion, and its profit was off 13.2% to $370.5 million.
TOWSON, Md. — Black & Decker saw profits for the third quarter slip 35% to $55.4 million from $85.8 million last year, on revenue of $1.21 billion that was down 23% from $1.57 billion. The company reported weak sales across all categories. Sales were down 20% in the consumer products group and down by more than that for its industrial-products group.
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ECONOMIC INDICATORS |
Retail sales in current dollars rose 0.8% in August to $34.5 billion, offsetting the decline in July. The bulk of the increase came from higher sales at gasoline stations and new car dealers. Excluding these retailers, sales were flat. Sales in the building and outdoor home supplies store sector increased 0.5%, the second consecutive monthly increase. However, despite following an upward trend in 2009, sales in this sector have not yet offset the substantial decrease in December 2008. (Stats Canada) |
NOTED… |
A new survey from WorkPlace Media found that approximately one in three working Americans will do at least 40% of their holiday shopping on the way to or from work, online at work, or during a work break. Also, 43% of those surveyed said they would be spending less than they did last year. |
OVERHEARD... |
"A company must not only do right, it must be seen to do right." — Robert Sarner, director of communication and public affairs, Roots Canada, on the importance of a company finding ways to tell its story to both customers and staff in a consistent and passionate manner. He spoke last week at the Hardlines Conference in Toronto. |
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