October 4, 1999 - Volume v, #40
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

The cost for the Hardlines Who's Who is only $105 for Hardlines subscribers and $135 for non-subscribers. Order your own copy of the Hardlines Who's Who today!

HOME HARDWARE LAUNCHES NEW PROGRAMS AT FALL MARKET

The fall market at Home Hardware Stores Ltd. featured a number of new programs and services for its dealers, in addition to the 850 vendors who exhibited last week inside Home's warehouse in St. Jacob's, Ont.

The show featured new order technology, uniforms &emdash; and a new model store. The 12,000-sq.ft. retail showcase with 25,000 SKUs emphasized the store-within-a-store concept. It also reflected the importance of women shoppers with a kitchenware and giftware section called "Gourmet" that featured rustic wooden shelving,

indirect halogen lighting and a tiled floor. "You can't sell giftwares and housewares on metal shelves anymore," said Bill Ferguson, Home's dealer support manager. With competition from mass merchants like Sears for those dollars, he added, "You've got to jazz them up."

Even the service desk for Home's building centres demonstrated a "boutique" approach. The frame of the service area was constructed from a mixture of builders' hardware, different woods and OSB to better showcase the products. Another goal of the service desk is to emphasize project selling to bring people away from commodity buying to add-on sales with bigger margins built in.

Other features of the model store: year-round seasonal department, installed sales department, improved quality clothing and uniforms for staff, a Timothy's coffee counter and black wire racking in place of chrome.

* * * * * * *

NEW INVENTORY MANAGEMENT TOOL FOR HOME HARDWARE DEALERS

A Palm Pilot is the latest tool available to Home Hardware dealers. Developed by Symbol specifically for Home Hardware, the device will let dealers scan bin tags to place orders and track inventory. It can either download the info to a computer or transmit directly via modem.

The new technology was introduced at Home's fall market last week. The switch from the current Telxon dial-up system will cost each dealer about $1,000.

Fletcher Challenge Canada Ltd. is seeking shareholder approval of a $3.6 billion plan to go independent and buy its parent's paper-making assets. They are set to vote on the plan on November 2. Rebel minority shareholders have objected to the plan, arguing, in part, that the cash-rich Canadian company has agreed to pay too much to its New Zealand parent, Fletcher Challenge Ltd., which owns 50.8% of Fletcher Canada. The purchase of Fletcher Challenge Paper would create a new $5 billion company.

Sears Canada is building a 494,000-sq.ft. national service centre (NSC) in Calgary at 114th Avenue and 52nd Street S.E. The distribution centre, will open in the summer of 2000, will store big-ticket merchandise such as furniture and appliances, and will consolidate the logistics operations currently handled in Regina and Vancouver. An 870,000-sq.ft. NSC in Vaughan, north of Toronto, will open next spring.

ACNielsen Canada, an operating unit of ACNielsen Corp. in the U.S., has signed an agreement with Gladson & Associates to jointly create and market a consumer product image and dimension database in Canada. The images and product descriptions will be available via CD-ROM or Gladson's proprietary online system. The database is designed for use in conjunction with the Spaceman shelf management program.

The three banners served by TruServ Corp. in the U.S. will consolidate under the True Value name, beginning this month. This will affect some 3,000 ServiStar and Coast to Coast stores, who have until March 1, 2000, to make the switch. From an operations standpoint, the decision will allow TruServ to promote one retail identity nationally, with resulting savings in advertising and inventory management. While the move to one identity means ServiStar and Coast to Coast stores south of the border will make the switch, no stores in Canada operate under those banners.

An explosive device was found at a third Lowe's store in North Carolina late last Tuesday afternoon, this time in Charlotte. Investigators are looking for links to bombings at Lowe's stores in Salisbury and Asheboro that occurred on September 22. Those blasts, in store paint departments, injured three people, including one woman hospitalized for burns.

________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	35.00
Canfor	13.30	4.25	11.30
Goodfellow	11.80	6.00	11.40
Hudsons Bay	23.85	4.00	19.30
MacMillan Blo.	27.85	12.05	22.45
Sears Canada	34.35	15.25	34.75
Taiga Forest	14.75	8.65	13.70
West Fraser	41.00	9.05	37.25

"It's what you learn after you know it all that counts."
&endash; John Wooden (U.S. college basketball coach)

PEOPLE ON THE MOVE

"We're trying to develop an ambience that gives customers more of a feeling that they're not just facing rows and rows of products on shelves." &emdash; Bill Ferguson, dealer support manager for Home Hardware Stores Ltd. He was demonstrating one of the boutique approaches Home was taking with departments such as décor and kitchenwares at Home's latest fall market.

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

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

Sales of new homes in the U.S. climbed 2.9% in August, the third consecutive monthly advance, bucking a trend of slower sales for existing homes. New housing sales jumped to a seasonally adjusted annual rate of 983,000 units in August, up from 955,000 a month earlier, according to the U.S. Census Bureau.

Travel to the International Hardware Fair in Cologne to position yourself as a key player in the 21st century. Find out where the growth opportunities lie, discover how the world's markets are changing and learn about the latest new products.

Hardlines has arranged special travel packages that will make your trip painless and affordable. Not only will we help you with your travel arrangements, but we'll also ensure your trip is beneficial to both you and your company.

Six good reasons to travel with Hardlines:

1. Escorted travel from Toronto to Cologne via Frankfurt &endash;let us help you make your voyage worry-free by taking care of the details.

2. "Canada Night" Reception in Cologne&endash; A night of networking with fellow Canadian retailers and vendors, and a presentation by key European buyers.

3. Pre-show seminar &endash; Hardlines and the Canadian office of the Cologne Trade Fairs will jointly present tips on how to maximize your presence at the Show.

4. Hardlines Handbook of the European market &endash; a helpful guide to European markets.

5. Store tours &endash; We'll take you on a tour of the European big-boxes and independents so you can take home the latest ideas for merchandising, packaging and store layout.

6. Spouses' program &endash; Join us to discover the sights and scenes of historic Cologne.

Affordable, comprehensive travel packages are available in two- and five-star accommodations. Just email us for more information. Our recommended Canadian travel agent will contact you to arrange your personalized travel package.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.

October 4, 1999 - Volume v, #40
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

The cost for the Hardlines Who's Who is only $105 for Hardlines subscribers and $135 for non-subscribers. Order your own copy of the Hardlines Who's Who today!

HOME HARDWARE LAUNCHES NEW PROGRAMS AT FALL MARKET

The fall market at Home Hardware Stores Ltd. featured a number of new programs and services for its dealers, in addition to the 850 vendors who exhibited last week inside Home's warehouse in St. Jacob's, Ont.

The show featured new order technology, uniforms &emdash; and a new model store. The 12,000-sq.ft. retail showcase with 25,000 SKUs emphasized the store-within-a-store concept. It also reflected the importance of women shoppers with a kitchenware and giftware section called "Gourmet" that featured rustic wooden shelving,

indirect halogen lighting and a tiled floor. "You can't sell giftwares and housewares on metal shelves anymore," said Bill Ferguson, Home's dealer support manager. With competition from mass merchants like Sears for those dollars, he added, "You've got to jazz them up."

Even the service desk for Home's building centres demonstrated a "boutique" approach. The frame of the service area was constructed from a mixture of builders' hardware, different woods and OSB to better showcase the products. Another goal of the service desk is to emphasize project selling to bring people away from commodity buying to add-on sales with bigger margins built in.

Other features of the model store: year-round seasonal department, installed sales department, improved quality clothing and uniforms for staff, a Timothy's coffee counter and black wire racking in place of chrome.

* * * * * * *

NEW INVENTORY MANAGEMENT TOOL FOR HOME HARDWARE DEALERS

A Palm Pilot is the latest tool available to Home Hardware dealers. Developed by Symbol specifically for Home Hardware, the device will let dealers scan bin tags to place orders and track inventory. It can either download the info to a computer or transmit directly via modem.

The new technology was introduced at Home's fall market last week. The switch from the current Telxon dial-up system will cost each dealer about $1,000.

Fletcher Challenge Canada Ltd. is seeking shareholder approval of a $3.6 billion plan to go independent and buy its parent's paper-making assets. They are set to vote on the plan on November 2. Rebel minority shareholders have objected to the plan, arguing, in part, that the cash-rich Canadian company has agreed to pay too much to its New Zealand parent, Fletcher Challenge Ltd., which owns 50.8% of Fletcher Canada. The purchase of Fletcher Challenge Paper would create a new $5 billion company.

Sears Canada is building a 494,000-sq.ft. national service centre (NSC) in Calgary at 114th Avenue and 52nd Street S.E. The distribution centre, will open in the summer of 2000, will store big-ticket merchandise such as furniture and appliances, and will consolidate the logistics operations currently handled in Regina and Vancouver. An 870,000-sq.ft. NSC in Vaughan, north of Toronto, will open next spring.

ACNielsen Canada, an operating unit of ACNielsen Corp. in the U.S., has signed an agreement with Gladson & Associates to jointly create and market a consumer product image and dimension database in Canada. The images and product descriptions will be available via CD-ROM or Gladson's proprietary online system. The database is designed for use in conjunction with the Spaceman shelf management program.

The three banners served by TruServ Corp. in the U.S. will consolidate under the True Value name, beginning this month. This will affect some 3,000 ServiStar and Coast to Coast stores, who have until March 1, 2000, to make the switch. From an operations standpoint, the decision will allow TruServ to promote one retail identity nationally, with resulting savings in advertising and inventory management. While the move to one identity means ServiStar and Coast to Coast stores south of the border will make the switch, no stores in Canada operate under those banners.

An explosive device was found at a third Lowe's store in North Carolina late last Tuesday afternoon, this time in Charlotte. Investigators are looking for links to bombings at Lowe's stores in Salisbury and Asheboro that occurred on September 22. Those blasts, in store paint departments, injured three people, including one woman hospitalized for burns.

________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	35.00
Canfor	13.30	4.25	11.30
Goodfellow	11.80	6.00	11.40
Hudsons Bay	23.85	4.00	19.30
MacMillan Blo.	27.85	12.05	22.45
Sears Canada	34.35	15.25	34.75
Taiga Forest	14.75	8.65	13.70
West Fraser	41.00	9.05	37.25

"It's what you learn after you know it all that counts."
&endash; John Wooden (U.S. college basketball coach)

PEOPLE ON THE MOVE

"We're trying to develop an ambience that gives customers more of a feeling that they're not just facing rows and rows of products on shelves." &emdash; Bill Ferguson, dealer support manager for Home Hardware Stores Ltd. He was demonstrating one of the boutique approaches Home was taking with departments such as décor and kitchenwares at Home's latest fall market.

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

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

Sales of new homes in the U.S. climbed 2.9% in August, the third consecutive monthly advance, bucking a trend of slower sales for existing homes. New housing sales jumped to a seasonally adjusted annual rate of 983,000 units in August, up from 955,000 a month earlier, according to the U.S. Census Bureau.

Travel to the International Hardware Fair in Cologne to position yourself as a key player in the 21st century. Find out where the growth opportunities lie, discover how the world's markets are changing and learn about the latest new products.

Hardlines has arranged special travel packages that will make your trip painless and affordable. Not only will we help you with your travel arrangements, but we'll also ensure your trip is beneficial to both you and your company.

Six good reasons to travel with Hardlines:

1. Escorted travel from Toronto to Cologne via Frankfurt &endash;let us help you make your voyage worry-free by taking care of the details.

2. "Canada Night" Reception in Cologne&endash; A night of networking with fellow Canadian retailers and vendors, and a presentation by key European buyers.

3. Pre-show seminar &endash; Hardlines and the Canadian office of the Cologne Trade Fairs will jointly present tips on how to maximize your presence at the Show.

4. Hardlines Handbook of the European market &endash; a helpful guide to European markets.

5. Store tours &endash; We'll take you on a tour of the European big-boxes and independents so you can take home the latest ideas for merchandising, packaging and store layout.

6. Spouses' program &endash; Join us to discover the sights and scenes of historic Cologne.

Affordable, comprehensive travel packages are available in two- and five-star accommodations. Just email us for more information. Our recommended Canadian travel agent will contact you to arrange your personalized travel package.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.