HARDLINES
Canada's electronic information service for home improvement industry
October 29, 2001
Volume vii, #44
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca
* * * * * *
IN THIS ISSUE:
* Building Box loses installed sales partner
* Turkstra picks up a new store
* TruServ's new financing deal gets 95% acceptance by
dealers
* Home Depot confirms intention to pull out of South America
* Premdor will change its name to Masonite
* * * * * *
DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?
THEN YOU WILL NEED:
HARDLINES RETAIL REPORT 2001 - a turnkey PowerPoint presentation to wow your boss at planning time. Bev actually
thought of this one, after getting so many calls during planning time from people looking for a concise snapshot of
the market: This presentation looks fabulous. It comes complete with charts, photos and pie charts, including:
- provincial breakouts
- market share by retail format
- growth of the big boxes
- 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 email nancy@hardlines.ca or order online:
https://hardlines.ca/html/order.html to get your CD-ROMnow.
* * * * * *
ARE YOU GETTING HARDLINES QUARTERLY REPORT?
The next issue will tell you:
* what's coming this spring with the Top Four Retailers
* analysis of the Top 10 Retailers, 1990 and now
* the European market outlook
* the latest economic indicators
* and more ...
So if you're not a subscriber, you'll miss it all. Both The Financial Post and the Toronto Star have reported on the
exclusive research that appears in HQR. Shouldn't you be reading it? Only $349 + taxes for a full year. Call Nancy Wright at
416.489.3396, email her at: nancy@hardlines.ca, or go to our website: https://hardlines.ca/html/order.html
______________________________________________
INSTALLED SALES PARTNER PULLS OUT OF BUILDING BOX
The Building Box is losing its partner in installed sales in its stores in Southern Ontario. The service had been
provided in conjunction with The Homeservice Club, a Toronto-area members-only residential home improvement and
repairs company that links up approved trades with homeowners. Homeservice Club had its own kiosks and staff right in the
stores, but is in the process of closing them down. The one in Cambridge was shut down on October 2, while Scarborough
and Brampton will be shut down on November 2. The new Building Box that will open November 14 in Mississauga, ON
does not even include an installed sales counter. Rick Felton, president of the Homeservice Club, blames the
failure of the program on a lack of commitment by Réno-Dépôt, the parent of the Building Box, to promote the
service adequately, both instore and through advertising. Even the initial run of advertising that accompanied the
launch of The Building Box in Southern Ontario in November 2000 never included any mention of installed sales, he says.
"A lot of staff didn't even know where the installed service counter was in the store." Says Paul Hetu, vice-president of marketing at Réno-Dépôt,
"the Building Box is still offering installed sales, but only in departments where it makes a lot of sense, such as
kitchens, doors and windows, and floors." The service, he adds, will be on a referral basis only and involve good
contractor customers of the Building Box. One sticking point was Felton's desire to have Réno-Dépôt
subsidize the cost of keeping a Homeservice Club staff member in the stores. "It was a point where we agreed to
disagree," says Hetu. "Building Box wants to focus on selling the goods, not installing the goods."
At its peak, Homeservice Club was receiving up to 800 orders per month out of the first two Building Box stores, Felton
says. As the program lost steam and the service desk was replaced by an instore hotline phone to Homeservice Club's
office, orders dwindled to a meagre 30 per month.
______________________________________________
TURKSTRA LUMBER TRIES HYBRID STRATEGY FOR ITS YARDS IN SOUTHWESTERN ONTARIO
Turkstra Lumber has announced its expansion into the Cambridge, ON market through the purchase of Cambridge Home
Centre. The 30,000-sq.ft. facility will retain its name and operate as a separate company.
Two of the three owners of Cambridge, which was formerly with Castle, will continue to work there. The third has
accepted a position at Turkstra. All other employees will remain in place.
"Both the staff and location make this a very consumer friendly store," says Peter Turkstra, vice-president
operations, Turkstra Lumber. "The plan is to provide the store with a contractor view and the financial resources to
increase its performance as a hybrid." Some changes are already in place: the store has stopped
opening on Sundays and has replaced its cash registers with service desks to enhance the customer service and grow the
contractor side of the market. Turkstra views this purchase as the first in a series of
moves that will help his company expand its geographic market. "We feel we are in a position to help the
independent. We want to expand in the Southwestern Ontario area, and are very interested in other opportunities like
this one."
Cambridge Home Centre was previously a Castle dealer.
______________________________________________
TRUSERV DEALERS OVERWHELMINGLY ACCEPT BUYOUT PLAN
At the national merchandise market and annual general meeting of TruServ Canada, member dealers voted
overwhelmingly to accept a new deal to make their co-op 100% Canadian owned. Until then, the Canadian operation had been
held by Cotter Canada Hardware and Variety Co., a wholly owned subsidiary of TruServ Corp. in Chicago.
At the AGM on October 23, executives of TruServ Canada announced the successful buyout of the preferred voting
shares and other assets, including TruServ's Winnipeg distribution centre. That involved getting member approval
for financing from an undisclosed Canadian institution to redeem, at book value, all shares of TruServ Canada owned by
the U.S. operation.
Most recently, TruServ U.S. held 85% of voting control but only 44% of the common shares. TruServ Canada members owned
the remaining 56%. Under the original deal, which closed January 31, 1992, the U.S. company had rescued the wholesale
operations of Macleod-Stedman Inc. from bankruptcy, taking ownership of almost 100% of the Canadian distributor's
shares.
In a new deal that will last up to 10 years, TruServ Canada will continue to pay the U.S. operation a royalty fee for
use of the TruServ name. Lorna McLeod, director of finance at TruServ in Winnipeg, declined to reveal the amount of
that fee, but said it's less than what was being paid before.
_____________________________________________
COMPANIES IN THE NEWS
Home Depot has confirmed its intention (first announced at the Hardlines Marketing Conference on September 13! -
Editor) to sell its stores in South America. The five stores in Chile will be sold back to joint-venture partner
Falabella. Four stores in Argentina will be sold to Hipermercados Jumbo, which owns Easy Homecenter. The deals
are expected to close during Home Depot's fourth quarter, which ends January 31, 2002. The company says it intends to
focus on its acquisition of the four-store chain Total Home in Mexico, and on continued expansion in Canada and the
Caribbean.
The AWARD Group has moved to a new corporate head office: Suite 1030 Metropolitan Place, 99 Wyse Road, Dartmouth, NS
B4A 4S5. The phone remains the same: 902-835-7242. Premdor Inc. will change its name to Masonite International
Corp., effective January 1, 2002. The move follows the takeover on August 31, 2001 by Premdor of Masonite Corp.
from International Paper Co. Premdor's line of exterior and interior doors will be branded "The Premdor Collection of
Premium Quality Doors Exclusively from Masonite." Door components and related products will carry the Masonite
name. The Mississauga, ON-based company operates 70 facilities in 12 countries.
PPG AC Canada has relocated its central Canadian distribution centre to a new facility in Brampton, ON: 4
Kenview Boul., Brampton, ON L6T 5E4; phone: 905-790-5339; fax: 905-458-0673. The new facility will be used to service
PPG's customers in Ontario and Québec. Hudson's Bay Co. opened three Home Outfitters stores last
week, including its first two locations in Ottawa. The 40,000-sq.ft. stores bring the total number of Home
Outfitters locations in Canada to 17, including one store in Alberta, three stores in Québec - operating under the Deco
Decouverte name - and one store in Manitoba. Five more stores are scheduled to open across the country by the end
of the year.
Sears Canada has invested further in the services side of its business with the purchase of Tripeze.com Inc. The
acquisition will broaden the ability of Sears Travel to sell travel through its stores and online. The transaction was
completed for an undisclosed amount through the wholly-owned Sears Travel Service division.
As the prime rate drops down to 4.5%, department stores are getting flak for credit card charges of 28.8%. Retailers
such as Canadian Tire and Sears, which have retained credit card fees of 28% for ten and twenty years respectively, have
indicated that they have no intentions of lowering their rates. Both companies argue that the cost of running credit
card programs remains steady despite changes in the prime rate.
Weyerhaeuser Co. has announced a third-quarter earnings fall of 54% as the economic downturn weakened the markets for
pulp, paper and packaging. The company reported a profit of US$91 million, compared with US$199 million a year earlier.
Sales fell to US$3.7 billion from US$3.9 billion a year ago. Sears, Roebuck and Co. is shifting its strategy down-market
to more closely resemble discount chains like Wal-Mart Inc. and Target Corp. The announcement comes in the heels of
U.S.-based parent-company layoffs involving 22% of the workforce. The strategy is geared to double company profits
by end of 2004. Sears Canada will not be affected by the job cuts.
Black & Decker Corp. has reported a sharp drop in third-quarter earnings, with a total of US$46.2 million,
compared with US$86.3 million a year earlier. Third-quarter sales fell 6% to US$1.06 billion from US$1.13 billion.
_____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
22.86 |
| Canfor |
16.95 |
7.65 |
8.60 |
| Emco |
7.50 |
2.60 |
5.50 |
| Goodfellow |
11.00 |
8.00 |
8.50 |
| Home Depot |
49.74 |
47.61 |
40.29 |
| Hudson's Bay |
17.65 |
12.40 |
14.83 |
| Lowe's |
64.90 |
34.25 |
34.75 |
| Sears Canada |
37.25 |
18.55 |
14.20 |
| Sodisco Howden |
2.80 |
0.75 |
1.12 |
| Taiga Forest |
10.00 |
6.80 |
10.00 |
| West Fraser |
36.50 |
21.00 |
31.75 |
______________________________________________
"The superior man understands what is right; the inferior man understands what will sell."
- Confucius (c. 551-479 B.C.)
______________________________________________
MARKET INDICATORS
The Composite Index edged up 0.1% in August, says Statistics Canada. The housing index rose less rapidly (+0.2%)
in September than in August (+1.6%), as housing starts slowed in Ontario after vacancy rates edged up. Sales by the group
of large retailers totalled $6.9 billion in August, up 8.5% from the same month last year, according
to Statistics Canada. The largest gains were seen in the health and personal care products category, with an increase
of 14.9%. Hardware and lawn and garden products increased in sales by 10.2%.
September sales at department stores fell 4.5% from August totals, according to Statistics Canada. This was the second
decline in two months and the largest since the 5.6% decline of November 1999. Retail sales posted a 0.3% increase in August, offsetting a
0.3% decline the previous month, as reported by Statistics Canada. In August, retail sales in constant dollars were up
a slight 0.2% from July. For the first eight months of 2001, retail sales were 5.0% higher than during the same period of
2000.
The U.S. housing industry is predicting a short and shallow dip for home building sales, forecasting declines in both
new and existing home sales and housing starts for the last two quarters of 2001. But demand for housing is expected to
remain strong, based on population growth, low mortgage rates through 2002 and a low inventory of homes available
for sale.
The Conference Board has reported that the U.S. index of leading economic indicators fell 0.5% in September, the
largest decline since a 0.8% fall in January 1996. The research firm called this a sign the economy would likely
remain weak into next year.
* * * * * *
$9 billion worth of retail buying power - and it fits right in your pocket! HARDLINES WHO'S WHO DIRECTORY (2001-2002 edition)
You can tap the combined buying power of Canada's leading home improvement retailers - for only $135. The Who's Who
includes sales figures, product mix, executive personnel and key buyers for more than 100 hardware and home improvement
retailers, wholesalers buying groups, mass merchants and co-ops.
ORDER TODAY! 416-489-3396, nancy@hardlines.ca or check it out at: https://hardlines.ca/html/whos_who.html
* * * * * *
EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE THERE!
THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY'TEC:
March 3-6, 2002. For show information, contact: Edel
Wichmann, 416-598-3343; or colognet@idirect.com. To book
your flight and hotel, call Carol-Ann Itel of Trade Show
Travel: 1-877-873-7469; fax: 403-247-2448; or
tradeshowtravel@home.com 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 on Sunday, March 3, 2002,
sponsored by Hardlines and Cologne International Trade
Shows. We'll see you in Cologne!
* * * * * *
PEOPLE ON THE MOVE
The buyout of TruServ Canada Co-operative Inc. by the Canadian membership will leave the executive team unchanged.
However, one of the people who helped bring the deal to a successful conclusion, Pierre Levesque of Sturgeon Falls
True Value in Sturgeon Falls, ON has been appointed chairman of TruServ Canada. (204-453-9511)
ProfitMaster Canada has appointed three new members to their customer support team: Ken Harwood joins as customer support
analyst ... Laurie Chownyk and R-P Singh both join an implementation project managers. (204-889-5320)
Leading to the relocation of its distribution centre to Brampton, ON, PPG AC Canada has also redefined various
management roles. Robert Fierheller will focus on dealer development as national team leader ... Brad Rossetto will
continue leading the Canadian sales and marketing team as director ... Todd Bourgon has joined the company as key
account manager. He replaces Lawrence Drew, former national accounts manager ... Martine Warda, who joined the company
in March, will operate as marketing and communications coordinator for the Canadian business. (905-790-5339)
______________________________________________
NOTED ...
In its latest "Best of T.O." poll, urban arts and entertainment magazine Now readers voted Canadian Tire
stores in Toronto as "Best place to meet a straight man." Two years ago, the same poll voted Home Depot's Stockyards
store "Best place to meet a gay man."
______________________________________________
* * * * 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 or call 519-439-6800 ext. 201
* * * * * *
PROMOTE YOUR COMPANY BETTER
Want to communicate more effectively to your customers? Need help announcing new products, businesses or marketing
initiatives? McLARNEYCOM brings vendors and retailers the marketing tools they need to boost sales:
press releases, corporate brochures, customer newsletters, direct mail and more!
Contact us at 416-489-3396; buzz@hardlines.ca
* * * * * *
MARKETING AND COMMUNICATIONS:
You are a senior marketing professional with many years of retail and contractor experience. As a team player, you
possess strong communication, managerial and interpersonal skills. You are a very motivated, 'hands-on' individual who
will be responsible for developing and executing various marketing programs, including print, radio and television.
Strong organizational skills are required for overseeing the budget and critical execution paths. Experience in setting
up trade and consumer shows and special events would be an asset.
TIM-BR Mart is the national retail brand for hundreds of building centres across Canada. This Ontario management
position is dedicated to ensuring that our stores project a strong retail image in the marketplace. Your goal is to
strengthen the TIM-BR Mart brand by making the marketing decisions that provide the best value within the approved
budget.
We offer a competitive compensation package and a pleasant working environment. We thank all candidates for their
interest; however, only those candidates selected for an interview will be contacted.
Please fax your resumé, in strictest confidence, to the Executive Assistant at the private fax: 905-671-9467 or
e-mail to sheenaj@homecare.on.ca
* * * * * *
MERCHANDISER/SUPERVISOR:
MOST Marketing is looking for an experienced merchandiser/supervisor to service the Leviton line of
products for retail stores in the Toronto area market. This is a contract position. Benefits and remuneration are
based on experience. If you're interested and a hard worker, contact Alain Carle, Merchandising and Servicing Manager,
Leviton Manufacturing Canada; 1-800-461-2002 ext. 467; e-mail: acarle@leviton.com. Suitable candidates must have a
car, and must be available to travel.
* * * * * *
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
(c) 2001 by Michael McLarney.
HARDLINES(tm) 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 #139870398 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 29, 2001
Volume vii, #44
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca
* * * * * *
IN THIS ISSUE:
* Building Box loses installed sales partner
* Turkstra picks up a new store
* TruServ's new financing deal gets 95% acceptance by
dealers
* Home Depot confirms intention to pull out of South America
* Premdor will change its name to Masonite
* * * * * *
DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?
THEN YOU WILL NEED:
HARDLINES RETAIL REPORT 2001 - a turnkey PowerPoint presentation to wow your boss at planning time. Bev actually
thought of this one, after getting so many calls during planning time from people looking for a concise snapshot of
the market: This presentation looks fabulous. It comes complete with charts, photos and pie charts, including:
- provincial breakouts
- market share by retail format
- growth of the big boxes
- 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 email nancy@hardlines.ca or order online:
https://hardlines.ca/html/order.html to get your CD-ROMnow.
* * * * * *
ARE YOU GETTING HARDLINES QUARTERLY REPORT?
The next issue will tell you:
* what's coming this spring with the Top Four Retailers
* analysis of the Top 10 Retailers, 1990 and now
* the European market outlook
* the latest economic indicators
* and more ...
So if you're not a subscriber, you'll miss it all. Both The Financial Post and the Toronto Star have reported on the
exclusive research that appears in HQR. Shouldn't you be reading it? Only $349 + taxes for a full year. Call Nancy Wright at
416.489.3396, email her at: nancy@hardlines.ca, or go to our website: https://hardlines.ca/html/order.html
______________________________________________
INSTALLED SALES PARTNER PULLS OUT OF BUILDING BOX
The Building Box is losing its partner in installed sales in its stores in Southern Ontario. The service had been
provided in conjunction with The Homeservice Club, a Toronto-area members-only residential home improvement and
repairs company that links up approved trades with homeowners. Homeservice Club had its own kiosks and staff right in the
stores, but is in the process of closing them down. The one in Cambridge was shut down on October 2, while Scarborough
and Brampton will be shut down on November 2. The new Building Box that will open November 14 in Mississauga, ON
does not even include an installed sales counter. Rick Felton, president of the Homeservice Club, blames the
failure of the program on a lack of commitment by Réno-Dépôt, the parent of the Building Box, to promote the
service adequately, both instore and through advertising. Even the initial run of advertising that accompanied the
launch of The Building Box in Southern Ontario in November 2000 never included any mention of installed sales, he says.
"A lot of staff didn't even know where the installed service counter was in the store." Says Paul Hetu, vice-president of marketing at Réno-Dépôt,
"the Building Box is still offering installed sales, but only in departments where it makes a lot of sense, such as
kitchens, doors and windows, and floors." The service, he adds, will be on a referral basis only and involve good
contractor customers of the Building Box. One sticking point was Felton's desire to have Réno-Dépôt
subsidize the cost of keeping a Homeservice Club staff member in the stores. "It was a point where we agreed to
disagree," says Hetu. "Building Box wants to focus on selling the goods, not installing the goods."
At its peak, Homeservice Club was receiving up to 800 orders per month out of the first two Building Box stores, Felton
says. As the program lost steam and the service desk was replaced by an instore hotline phone to Homeservice Club's
office, orders dwindled to a meagre 30 per month.
______________________________________________
TURKSTRA LUMBER TRIES HYBRID STRATEGY FOR ITS YARDS IN SOUTHWESTERN ONTARIO
Turkstra Lumber has announced its expansion into the Cambridge, ON market through the purchase of Cambridge Home
Centre. The 30,000-sq.ft. facility will retain its name and operate as a separate company.
Two of the three owners of Cambridge, which was formerly with Castle, will continue to work there. The third has
accepted a position at Turkstra. All other employees will remain in place.
"Both the staff and location make this a very consumer friendly store," says Peter Turkstra, vice-president
operations, Turkstra Lumber. "The plan is to provide the store with a contractor view and the financial resources to
increase its performance as a hybrid." Some changes are already in place: the store has stopped
opening on Sundays and has replaced its cash registers with service desks to enhance the customer service and grow the
contractor side of the market. Turkstra views this purchase as the first in a series of
moves that will help his company expand its geographic market. "We feel we are in a position to help the
independent. We want to expand in the Southwestern Ontario area, and are very interested in other opportunities like
this one."
Cambridge Home Centre was previously a Castle dealer.
______________________________________________
TRUSERV DEALERS OVERWHELMINGLY ACCEPT BUYOUT PLAN
At the national merchandise market and annual general meeting of TruServ Canada, member dealers voted
overwhelmingly to accept a new deal to make their co-op 100% Canadian owned. Until then, the Canadian operation had been
held by Cotter Canada Hardware and Variety Co., a wholly owned subsidiary of TruServ Corp. in Chicago.
At the AGM on October 23, executives of TruServ Canada announced the successful buyout of the preferred voting
shares and other assets, including TruServ's Winnipeg distribution centre. That involved getting member approval
for financing from an undisclosed Canadian institution to redeem, at book value, all shares of TruServ Canada owned by
the U.S. operation.
Most recently, TruServ U.S. held 85% of voting control but only 44% of the common shares. TruServ Canada members owned
the remaining 56%. Under the original deal, which closed January 31, 1992, the U.S. company had rescued the wholesale
operations of Macleod-Stedman Inc. from bankruptcy, taking ownership of almost 100% of the Canadian distributor's
shares.
In a new deal that will last up to 10 years, TruServ Canada will continue to pay the U.S. operation a royalty fee for
use of the TruServ name. Lorna McLeod, director of finance at TruServ in Winnipeg, declined to reveal the amount of
that fee, but said it's less than what was being paid before.
_____________________________________________
COMPANIES IN THE NEWS
Home Depot has confirmed its intention (first announced at the Hardlines Marketing Conference on September 13! -
Editor) to sell its stores in South America. The five stores in Chile will be sold back to joint-venture partner
Falabella. Four stores in Argentina will be sold to Hipermercados Jumbo, which owns Easy Homecenter. The deals
are expected to close during Home Depot's fourth quarter, which ends January 31, 2002. The company says it intends to
focus on its acquisition of the four-store chain Total Home in Mexico, and on continued expansion in Canada and the
Caribbean.
The AWARD Group has moved to a new corporate head office: Suite 1030 Metropolitan Place, 99 Wyse Road, Dartmouth, NS
B4A 4S5. The phone remains the same: 902-835-7242. Premdor Inc. will change its name to Masonite International
Corp., effective January 1, 2002. The move follows the takeover on August 31, 2001 by Premdor of Masonite Corp.
from International Paper Co. Premdor's line of exterior and interior doors will be branded "The Premdor Collection of
Premium Quality Doors Exclusively from Masonite." Door components and related products will carry the Masonite
name. The Mississauga, ON-based company operates 70 facilities in 12 countries.
PPG AC Canada has relocated its central Canadian distribution centre to a new facility in Brampton, ON: 4
Kenview Boul., Brampton, ON L6T 5E4; phone: 905-790-5339; fax: 905-458-0673. The new facility will be used to service
PPG's customers in Ontario and Québec. Hudson's Bay Co. opened three Home Outfitters stores last
week, including its first two locations in Ottawa. The 40,000-sq.ft. stores bring the total number of Home
Outfitters locations in Canada to 17, including one store in Alberta, three stores in Québec - operating under the Deco
Decouverte name - and one store in Manitoba. Five more stores are scheduled to open across the country by the end
of the year.
Sears Canada has invested further in the services side of its business with the purchase of Tripeze.com Inc. The
acquisition will broaden the ability of Sears Travel to sell travel through its stores and online. The transaction was
completed for an undisclosed amount through the wholly-owned Sears Travel Service division.
As the prime rate drops down to 4.5%, department stores are getting flak for credit card charges of 28.8%. Retailers
such as Canadian Tire and Sears, which have retained credit card fees of 28% for ten and twenty years respectively, have
indicated that they have no intentions of lowering their rates. Both companies argue that the cost of running credit
card programs remains steady despite changes in the prime rate.
Weyerhaeuser Co. has announced a third-quarter earnings fall of 54% as the economic downturn weakened the markets for
pulp, paper and packaging. The company reported a profit of US$91 million, compared with US$199 million a year earlier.
Sales fell to US$3.7 billion from US$3.9 billion a year ago. Sears, Roebuck and Co. is shifting its strategy down-market
to more closely resemble discount chains like Wal-Mart Inc. and Target Corp. The announcement comes in the heels of
U.S.-based parent-company layoffs involving 22% of the workforce. The strategy is geared to double company profits
by end of 2004. Sears Canada will not be affected by the job cuts.
Black & Decker Corp. has reported a sharp drop in third-quarter earnings, with a total of US$46.2 million,
compared with US$86.3 million a year earlier. Third-quarter sales fell 6% to US$1.06 billion from US$1.13 billion.
_____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
22.86 |
| Canfor |
16.95 |
7.65 |
8.60 |
| Emco |
7.50 |
2.60 |
5.50 |
| Goodfellow |
11.00 |
8.00 |
8.50 |
| Home Depot |
49.74 |
47.61 |
40.29 |
| Hudson's Bay |
17.65 |
12.40 |
14.83 |
| Lowe's |
64.90 |
34.25 |
34.75 |
| Sears Canada |
37.25 |
18.55 |
14.20 |
| Sodisco Howden |
2.80 |
0.75 |
1.12 |
| Taiga Forest |
10.00 |
6.80 |
10.00 |
| West Fraser |
36.50 |
21.00 |
31.75 |
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"The superior man understands what is right; the inferior man understands what will sell."
- Confucius (c. 551-479 B.C.)
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MARKET INDICATORS
The Composite Index edged up 0.1% in August, says Statistics Canada. The housing index rose less rapidly (+0.2%)
in September than in August (+1.6%), as housing starts slowed in Ontario after vacancy rates edged up. Sales by the group
of large retailers totalled $6.9 billion in August, up 8.5% from the same month last year, according
to Statistics Canada. The largest gains were seen in the health and personal care products category, with an increase
of 14.9%. Hardware and lawn and garden products increased in sales by 10.2%.
September sales at department stores fell 4.5% from August totals, according to Statistics Canada. This was the second
decline in two months and the largest since the 5.6% decline of November 1999. Retail sales posted a 0.3% increase in August, offsetting a
0.3% decline the previous month, as reported by Statistics Canada. In August, retail sales in constant dollars were up
a slight 0.2% from July. For the first eight months of 2001, retail sales were 5.0% higher than during the same period of
2000.
The U.S. housing industry is predicting a short and shallow dip for home building sales, forecasting declines in both
new and existing home sales and housing starts for the last two quarters of 2001. But demand for housing is expected to
remain strong, based on population growth, low mortgage rates through 2002 and a low inventory of homes available
for sale.
The Conference Board has reported that the U.S. index of leading economic indicators fell 0.5% in September, the
largest decline since a 0.8% fall in January 1996. The research firm called this a sign the economy would likely
remain weak into next year.
* * * * * *
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includes sales figures, product mix, executive personnel and key buyers for more than 100 hardware and home improvement
retailers, wholesalers buying groups, mass merchants and co-ops.
ORDER TODAY! 416-489-3396, nancy@hardlines.ca or check it out at: https://hardlines.ca/html/whos_who.html
* * * * * *
EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE THERE!
THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY'TEC:
March 3-6, 2002. For show information, contact: Edel
Wichmann, 416-598-3343; or colognet@idirect.com. To book
your flight and hotel, call Carol-Ann Itel of Trade Show
Travel: 1-877-873-7469; fax: 403-247-2448; or
tradeshowtravel@home.com 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 on Sunday, March 3, 2002,
sponsored by Hardlines and Cologne International Trade
Shows. We'll see you in Cologne!
* * * * * *
PEOPLE ON THE MOVE
The buyout of TruServ Canada Co-operative Inc. by the Canadian membership will leave the executive team unchanged.
However, one of the people who helped bring the deal to a successful conclusion, Pierre Levesque of Sturgeon Falls
True Value in Sturgeon Falls, ON has been appointed chairman of TruServ Canada. (204-453-9511)
ProfitMaster Canada has appointed three new members to their customer support team: Ken Harwood joins as customer support
analyst ... Laurie Chownyk and R-P Singh both join an implementation project managers. (204-889-5320)
Leading to the relocation of its distribution centre to Brampton, ON, PPG AC Canada has also redefined various
management roles. Robert Fierheller will focus on dealer development as national team leader ... Brad Rossetto will
continue leading the Canadian sales and marketing team as director ... Todd Bourgon has joined the company as key
account manager. He replaces Lawrence Drew, former national accounts manager ... Martine Warda, who joined the company
in March, will operate as marketing and communications coordinator for the Canadian business. (905-790-5339)
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NOTED ...
In its latest "Best of T.O." poll, urban arts and entertainment magazine Now readers voted Canadian Tire
stores in Toronto as "Best place to meet a straight man." Two years ago, the same poll voted Home Depot's Stockyards
store "Best place to meet a gay man."
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* * * * 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 or call 519-439-6800 ext. 201
* * * * * *
PROMOTE YOUR COMPANY BETTER
Want to communicate more effectively to your customers? Need help announcing new products, businesses or marketing
initiatives? McLARNEYCOM brings vendors and retailers the marketing tools they need to boost sales:
press releases, corporate brochures, customer newsletters, direct mail and more!
Contact us at 416-489-3396; buzz@hardlines.ca
* * * * * *
MARKETING AND COMMUNICATIONS:
You are a senior marketing professional with many years of retail and contractor experience. As a team player, you
possess strong communication, managerial and interpersonal skills. You are a very motivated, 'hands-on' individual who
will be responsible for developing and executing various marketing programs, including print, radio and television.
Strong organizational skills are required for overseeing the budget and critical execution paths. Experience in setting
up trade and consumer shows and special events would be an asset.
TIM-BR Mart is the national retail brand for hundreds of building centres across Canada. This Ontario management
position is dedicated to ensuring that our stores project a strong retail image in the marketplace. Your goal is to
strengthen the TIM-BR Mart brand by making the marketing decisions that provide the best value within the approved
budget.
We offer a competitive compensation package and a pleasant working environment. We thank all candidates for their
interest; however, only those candidates selected for an interview will be contacted.
Please fax your resumé, in strictest confidence, to the Executive Assistant at the private fax: 905-671-9467 or
e-mail to sheenaj@homecare.on.ca
* * * * * *
MERCHANDISER/SUPERVISOR:
MOST Marketing is looking for an experienced merchandiser/supervisor to service the Leviton line of
products for retail stores in the Toronto area market. This is a contract position. Benefits and remuneration are
based on experience. If you're interested and a hard worker, contact Alain Carle, Merchandising and Servicing Manager,
Leviton Manufacturing Canada; 1-800-461-2002 ext. 467; e-mail: acarle@leviton.com. Suitable candidates must have a
car, and must be available to travel.
* * * * * *
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
(c) 2001 by Michael McLarney.
HARDLINES(tm) 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!
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