HARDLINES
Canada’s electronic information service for home improvement industry
October 8, 2001
Volume vii, #41
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Nelson switches to Sexton
* Ace cracks Calgary market with two store
* TruServ dealers repatriate co-op’s ownership
* Building Box announces sixth Ontario location
* Residential building permits climb in August
* * * * * *
WANT THE BIG PICTURE?
GO TO THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC
March 3-6, 2002. For trade show information, contact: Edel Wichmann, 416-598-3343.
Contact Trade Show Travel to arrange your trip. Packages include return air fare and accommodations, as well as admission to the Exhibition. BOOK EARLY!
Email: tradeshowtravel@home.com Phone (1-877-873-7469) or fax (403-247-1510)
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!
* * * * * *
PLANNING YOUR BUDGET? DOING YOUR MARKETING STRATEGY?
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 Nancy Wright at 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.
(To order online, go to https://hardlines.ca/html/industry_report.html)
* * * * * *
This week in Hardlines:
NELSON QUITS TIM-BR-MARTS
FOR SEXTON GROUP
In the wake of its recent acquisition of SRI Homes Inc., Nelson Lumber Co. in Lloydminster, AB has joined the Sexton Group, adding approximately $170 million in top-line sales to the Winnipeg-based buying group.
The retailer was previously affiliated with Tim-BR-Marts while SRI had originally been a Sexton member, bringing $35 million in sales to that group.
"There was a need to re-assess who our buying group would be because we were controlling a much larger buying power," says Brian Holterhus, CFO and co-CEO of Nelson.
Nelson, which operates five building supply outlets and three manufacturing plants, finalized the acquisition of SRI Homes in May of this year, after eight months of negotiations. The deal expanded Nelson’s manufacturing facilities to Winfield, BC, Lethbridge, AB, and Estevan, SK. The company also bought a truss facility in Barrie, ON earlier in January 2001.
"We grew significantly in combining with SRI," adds Holterhus. Sales totals for the retailer were $94 million in 2000, while projected sales from the combined company for 2001 are expected to reach $170-180 million.
In addition to Nelson Lumber, the Sexton Group has announced three other new members since July: Macleod’s True Value, Atikokan, ON; Norfab Building Components, Fort Frances, ON; and Arcola Building Supplies Ltd., Arcola, SK. The additions bring Sexton’s total projected retail sales to $1.185 billion.
______________________________________________
ACE FINE-TUNES URBAN FORMAT
WITH NEW CALGARY STORES
With an eye to urban centres, Ace Hardware Canada will open two new locations in Calgary. The stand-alone stores, both in shopping malls, are larger than a typical Ace store: with more than 10,000 sq.ft. of space, they are big enough to include some soft product categories meant to interest the urban shopper — particularly women.
Ace has planned these stores to include a full hardware assortment and rental shop, along with an AGFA photo finishing facility, an expanded house wares program and a heavy seasonal goods presence. In keeping with Ace’s supply chain deal with Growmark, the stores will also carry work wear and pet supplies.
"This is an exciting move for Ace," says Dunc Wilson, vice-president merchandising and marketing, Ace Hardware Canada. "These stores act as a starting point for the company’s move back into the urban market. We think this is the prototype for the urban store of the future."
Both stores are slated for a soft opening November 1st and a grand opening on November 15th. They bring the count of Ace’s bannered stores in Canada to 11. The dealer is Albert Boire, formerly with Beaver Lumber, who has invested in the stores with two partners.
______________________________________________
TRUSERV DEALERS WILL SOON BE
MASTERS OF THEIR DOMAIN
TruServ Canada will soon be able to call itself a 100% Canadian, dealer-owned organization.
The termination of TruServ’s financing deal from its U.S. counterpart will occur within the next few months. A high percentage of the co-op’s 530 members approved a vote for a buyout of all U.S.-owned shares for an undisclosed amount.
TruServ’s origins date back to MacLeod-Stedman Inc., which went under in 1991 and threatened to leave its Macleods hardware and Stedman junior department store dealers high and dry. TruServ in the U.S., then called Cotter & Co., made a deal with the receiver and bought out the company. The Canadian co-op has been paying off debt, as well as royalties, ever since.
"The association, from an external standpoint, will not be financially different," says Leo Charriere, COO, TruServ Canada. "The company will continue to carry the TruServ banner, as well as distribute TruServ paint."
The only difference will be in the change of their financial relationship. TruServ Canada currently has 530 stores and $465 million in annual retail sales.
______________________________________________
COMPANIES IN THE NEWS
The Building Box has announced its sixth location in Ontario — a 109,000-sq.ft. store in Windsor that is scheduled to open in Spring 2002. The new store will have a 30,000-sq.ft. greenhouse and more than 55,000 SKUs. Two more stores, in London and Mississauga, ON, are scheduled to open in November 2001.
Sico Inc. has purchased Bétonel Ltd., a Québec-based manufacturer of architectural coatings with a network of franchised and corporate specialty stores. Bétonel has annual sales of $27 million, 70% to professionals. The transaction, worth $13.5 million, will close in late November. Bétonel is Sico’s fourth acquisition since December 2000. The others are Chemcraft International Inc., Sico’s interest in the Mexico-based Pinturas Industriales Sicorel S.A. de C.V. and Blancomme S.A., a public transit and rail coatings business.
Silk Systems has acquired all outstanding shares of Dimensions Retail Systems Inc. in London, ON for an undisclosed amount. Silk, based in Coquitlam, BC, provides business management information systems to a range of sectors, including distribution, retail and equipment. The takeover gives Silk presence in Central Canada to serve a growing base of customers there. Dimensions is expected to operate unchanged, providing business software to hardware and home improvement retailers nationwide.
Shares of Willamette Industries Inc. jumped 5.5% last week, on word that a large shareholder's estate had asked executives to explore selling the paper products company to hostile suitor Weyerhaeuser Inc. for US$55 per share. Willamette has been trying to fend off hostile takeover advances from Weyerhaeuser since last November, when the Washington-based timber company first offered to buy Oregon-based Willamette for US$48 per share. Weyerhaeuser sweetened its bid to US$50 per share in May.
Wal-Mart Canada has unveiled seven new stores in the communities of Courtenay, Vernon, and Quesnel, BC; Cold Lake, AB; St. Thomas, ON; Jonquiere, QC; and Halifax, NS. The new stores will bring Wal-Mart Canada's nationwide store count to 186. The retailer expects to open seven more stores before the end of the year.
Wal-Mart Stores Inc. has announced that sales at stores open for a least a year were "on plan" for the third week in September. Same-store sales rose 4%. The company plans to open 50 new discount stores and 180-185 new super centres next year, increasing its plan for super store openings due to strong financial results from the format. The plan represents 46 million square feet, or a 9% increase in capacity.
EXPO Design Centers, the upscale interior design and décor chain that is part of Home Depot, has launched a new website, www.EXPO.com. The site offers company information and the opportunity to purchase a select group of 200 products online. Visitors will find various product categories: ready-made drapery, bathroom and kitchen faucets, lamps, ceiling fans and accessories.
Home furnishings retailer Williams-Sonoma Inc. said it expects third-quarter and full-year earnings to match the company's forecasts, but said sales would fall short of expectations amid volatile selling conditions. The company is forecasting revenues of between US$460 million and US$470 million. It previously forecast US$478 million to US$492 million.
_____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
22.50 |
| Canfor |
16.95 |
7.65 |
9.00 |
| Emco |
7.50 |
2.60 |
4.60 |
| Goodfellow |
11.00 |
8.00 |
8.84 |
| Home Depot |
49.74 |
47.61 |
39.41 |
| Hudson's Bay |
17.65 |
12.40 |
14.10 |
| Lowe's |
64.90 |
34.25 |
32.30 |
| Sears Canada |
37.25 |
18.55 |
13.60 |
| Taiga Forest |
10.00 |
6.80 |
9.50 |
| West Fraser |
36.50 |
21.00 |
31.50 |
______________________________________________
"A prosperous fool is a grievous burden."
—Aeschylus (525-456 B.C.)
______________________________________________
MARKET INDICATORS
Builders took out $3.3 billion worth of building permits in August, a 4.4% decline that has halted four consecutive months of increases. However, the decline was due to a drop in non-residential permits, which fell 11.9% to $1.4 billion. In contrast, both single- and multi-family dwelling construction intentions rose, lifting the value of housing permits 2.5% to $1.8 billion. Year-to-date, municipalities issued building permits worth $26.8 billion during the first eight months of 2001, up 11.2% from the same period in 2000. This was the highest cumulative level for any January-to-August period since 1989. Both the residential and non-residential sectors showed advances year-to-date.
Department store sales totalled $1.68 billion seasonally adjusted in August, down 2.9% from July. This decline is the first in six months. Year over year, sales were up 10.4% in August compared with August 2000, with advances in all provinces.
U.S. chain store sales fell in the latest week, but less sharply than in the two preceding weeks, indicating the impact of the Sept. 11 attacks on retail sales may be moderate. U.S. chain store sales inched 0.2% lower during the week ended Sept. 29. The sales index also slipped, to 393.0 from 393.6 in the previous week. On a year-over-year basis, the index rose 2.4%, below the prior week's gain of 2.6%.
* * * * * *
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
ProfitMaster Canada has appointed Larry Stewart as regional sales manager for Eastern Canada. Stewart, formerly at Dimensions Retail Systems, has served the specialized retail computer systems market for eight years and has over two decades of experience in the building products industry. (204-889-5320)
CGC Inc. has announced the following personnel changes: Mike Garvey, formerly director, corporate accounts and marketing, has been promoted to director, marketing and technical services … Bill Miculescu, formerly national account manager — eastern area, has been promoted to manager, corporate accounts … Tony Anderson, formerly product manager, interior finishes, has been promoted to sales manager, British Columbia … Max Martin, formerly product manager, suspension systems, has been promoted to sales manager, Quebec … Larry Dean, formerly sales manager British Columbia, has been named product manager suspension systems … Matt Jameson, formerly market sales representative, has been promoted to product manager, interior finishes … Doug Skrepnek, formerly director, sales and marketing, has been named vice-president, sales and marketing.
Pierre Racette has left his position as vice-president marketing at Sodisco Howden Group and returned to the gypsum industry with a position in New Mexico. No replacement has been named yet. (514-286-8986)
Geoff Hicks, who spent four years at Jacuzzi as national wholesale sales manager, is now president & CEO of Cardinal Sales and Marketing. The position with Jacuzzi was eliminated, so there’s no replacement there. Cardinal Sales represents Hunter Technology in eastern Ontario and the GTA. (905-338-9797)
Dave Rimmer has been appointed National Retail Sales Manager, Canada, for Ingersoll-Rand Security & Safety. He joined the retail team of IR Security & Safety in 1998 as retail national account manager and in was most recently sales manager, national accounts. (905-278-6128)
______________________________________________
NOTED ...
You might want to think about your long-term trip plans now. Rates are incredibly low for airline travel, including the International Hardware show, Cologne, Germany, March 3-6, 2002. For more info, email Carol-Ann at: tradeshowtravel@home.com
The Walls Windows Furnishings Association is offering two certification courses scheduled prior to the opening of the Canadian Hardware & Building Materials Show/Décor Showcase. The courses, focusing on window treatment and wall-décor consultant certification, are being presented by the CRHA, the PDRA and WWFA. Presenters include Wallpaper Guru, and former editor of WALLpaper magazine Marita Thomas; Jeff Keelan of the Zinser Company, who specializes in adhesives; and Neil Cody of Living with Faux. Courses will take place at the Toronto Colony Hotel, Toronto. CHS/Decor Showcase opens February 3rd to 5th at The National Trade Centre, Toronto.
______________________________________________
OVERHEARD ...
The economic perspective looks very uncertain. But it could be that the DIY market is not affected too much. In the short term, consumers may fear to go to stores for two or three months. Thereafter, we believe that they could spend more money in their home. It is what happened during the Gulf war. But the scenario could be different if there is a new event/attack. When are you coming to Europe?
— Yves Rambaud, Fediyma, in follow-up correspondence to our Hardlines Conference, where Gilles Caille, president of Fediyma, gave a presentation via teleconference.
______________________________________________
* * * * 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 8, 2001
Volume vii, #41
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Nelson switches to Sexton
* Ace cracks Calgary market with two store
* TruServ dealers repatriate co-op’s ownership
* Building Box announces sixth Ontario location
* Residential building permits climb in August
* * * * * *
WANT THE BIG PICTURE?
GO TO THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC
March 3-6, 2002. For trade show information, contact: Edel Wichmann, 416-598-3343.
Contact Trade Show Travel to arrange your trip. Packages include return air fare and accommodations, as well as admission to the Exhibition. BOOK EARLY!
Email: tradeshowtravel@home.com Phone (1-877-873-7469) or fax (403-247-1510)
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!
* * * * * *
PLANNING YOUR BUDGET? DOING YOUR MARKETING STRATEGY?
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 Nancy Wright at 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.
(To order online, go to https://hardlines.ca/html/industry_report.html)
* * * * * *
This week in Hardlines:
NELSON QUITS TIM-BR-MARTS
FOR SEXTON GROUP
In the wake of its recent acquisition of SRI Homes Inc., Nelson Lumber Co. in Lloydminster, AB has joined the Sexton Group, adding approximately $170 million in top-line sales to the Winnipeg-based buying group.
The retailer was previously affiliated with Tim-BR-Marts while SRI had originally been a Sexton member, bringing $35 million in sales to that group.
"There was a need to re-assess who our buying group would be because we were controlling a much larger buying power," says Brian Holterhus, CFO and co-CEO of Nelson.
Nelson, which operates five building supply outlets and three manufacturing plants, finalized the acquisition of SRI Homes in May of this year, after eight months of negotiations. The deal expanded Nelson’s manufacturing facilities to Winfield, BC, Lethbridge, AB, and Estevan, SK. The company also bought a truss facility in Barrie, ON earlier in January 2001.
"We grew significantly in combining with SRI," adds Holterhus. Sales totals for the retailer were $94 million in 2000, while projected sales from the combined company for 2001 are expected to reach $170-180 million.
In addition to Nelson Lumber, the Sexton Group has announced three other new members since July: Macleod’s True Value, Atikokan, ON; Norfab Building Components, Fort Frances, ON; and Arcola Building Supplies Ltd., Arcola, SK. The additions bring Sexton’s total projected retail sales to $1.185 billion.
______________________________________________
ACE FINE-TUNES URBAN FORMAT
WITH NEW CALGARY STORES
With an eye to urban centres, Ace Hardware Canada will open two new locations in Calgary. The stand-alone stores, both in shopping malls, are larger than a typical Ace store: with more than 10,000 sq.ft. of space, they are big enough to include some soft product categories meant to interest the urban shopper — particularly women.
Ace has planned these stores to include a full hardware assortment and rental shop, along with an AGFA photo finishing facility, an expanded house wares program and a heavy seasonal goods presence. In keeping with Ace’s supply chain deal with Growmark, the stores will also carry work wear and pet supplies.
"This is an exciting move for Ace," says Dunc Wilson, vice-president merchandising and marketing, Ace Hardware Canada. "These stores act as a starting point for the company’s move back into the urban market. We think this is the prototype for the urban store of the future."
Both stores are slated for a soft opening November 1st and a grand opening on November 15th. They bring the count of Ace’s bannered stores in Canada to 11. The dealer is Albert Boire, formerly with Beaver Lumber, who has invested in the stores with two partners.
______________________________________________
TRUSERV DEALERS WILL SOON BE
MASTERS OF THEIR DOMAIN
TruServ Canada will soon be able to call itself a 100% Canadian, dealer-owned organization.
The termination of TruServ’s financing deal from its U.S. counterpart will occur within the next few months. A high percentage of the co-op’s 530 members approved a vote for a buyout of all U.S.-owned shares for an undisclosed amount.
TruServ’s origins date back to MacLeod-Stedman Inc., which went under in 1991 and threatened to leave its Macleods hardware and Stedman junior department store dealers high and dry. TruServ in the U.S., then called Cotter & Co., made a deal with the receiver and bought out the company. The Canadian co-op has been paying off debt, as well as royalties, ever since.
"The association, from an external standpoint, will not be financially different," says Leo Charriere, COO, TruServ Canada. "The company will continue to carry the TruServ banner, as well as distribute TruServ paint."
The only difference will be in the change of their financial relationship. TruServ Canada currently has 530 stores and $465 million in annual retail sales.
______________________________________________
COMPANIES IN THE NEWS
The Building Box has announced its sixth location in Ontario — a 109,000-sq.ft. store in Windsor that is scheduled to open in Spring 2002. The new store will have a 30,000-sq.ft. greenhouse and more than 55,000 SKUs. Two more stores, in London and Mississauga, ON, are scheduled to open in November 2001.
Sico Inc. has purchased Bétonel Ltd., a Québec-based manufacturer of architectural coatings with a network of franchised and corporate specialty stores. Bétonel has annual sales of $27 million, 70% to professionals. The transaction, worth $13.5 million, will close in late November. Bétonel is Sico’s fourth acquisition since December 2000. The others are Chemcraft International Inc., Sico’s interest in the Mexico-based Pinturas Industriales Sicorel S.A. de C.V. and Blancomme S.A., a public transit and rail coatings business.
Silk Systems has acquired all outstanding shares of Dimensions Retail Systems Inc. in London, ON for an undisclosed amount. Silk, based in Coquitlam, BC, provides business management information systems to a range of sectors, including distribution, retail and equipment. The takeover gives Silk presence in Central Canada to serve a growing base of customers there. Dimensions is expected to operate unchanged, providing business software to hardware and home improvement retailers nationwide.
Shares of Willamette Industries Inc. jumped 5.5% last week, on word that a large shareholder's estate had asked executives to explore selling the paper products company to hostile suitor Weyerhaeuser Inc. for US$55 per share. Willamette has been trying to fend off hostile takeover advances from Weyerhaeuser since last November, when the Washington-based timber company first offered to buy Oregon-based Willamette for US$48 per share. Weyerhaeuser sweetened its bid to US$50 per share in May.
Wal-Mart Canada has unveiled seven new stores in the communities of Courtenay, Vernon, and Quesnel, BC; Cold Lake, AB; St. Thomas, ON; Jonquiere, QC; and Halifax, NS. The new stores will bring Wal-Mart Canada's nationwide store count to 186. The retailer expects to open seven more stores before the end of the year.
Wal-Mart Stores Inc. has announced that sales at stores open for a least a year were "on plan" for the third week in September. Same-store sales rose 4%. The company plans to open 50 new discount stores and 180-185 new super centres next year, increasing its plan for super store openings due to strong financial results from the format. The plan represents 46 million square feet, or a 9% increase in capacity.
EXPO Design Centers, the upscale interior design and décor chain that is part of Home Depot, has launched a new website, www.EXPO.com. The site offers company information and the opportunity to purchase a select group of 200 products online. Visitors will find various product categories: ready-made drapery, bathroom and kitchen faucets, lamps, ceiling fans and accessories.
Home furnishings retailer Williams-Sonoma Inc. said it expects third-quarter and full-year earnings to match the company's forecasts, but said sales would fall short of expectations amid volatile selling conditions. The company is forecasting revenues of between US$460 million and US$470 million. It previously forecast US$478 million to US$492 million.
_____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
22.50 |
| Canfor |
16.95 |
7.65 |
9.00 |
| Emco |
7.50 |
2.60 |
4.60 |
| Goodfellow |
11.00 |
8.00 |
8.84 |
| Home Depot |
49.74 |
47.61 |
39.41 |
| Hudson's Bay |
17.65 |
12.40 |
14.10 |
| Lowe's |
64.90 |
34.25 |
32.30 |
| Sears Canada |
37.25 |
18.55 |
13.60 |
| Taiga Forest |
10.00 |
6.80 |
9.50 |
| West Fraser |
36.50 |
21.00 |
31.50 |
______________________________________________
"A prosperous fool is a grievous burden."
—Aeschylus (525-456 B.C.)
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MARKET INDICATORS
Builders took out $3.3 billion worth of building permits in August, a 4.4% decline that has halted four consecutive months of increases. However, the decline was due to a drop in non-residential permits, which fell 11.9% to $1.4 billion. In contrast, both single- and multi-family dwelling construction intentions rose, lifting the value of housing permits 2.5% to $1.8 billion. Year-to-date, municipalities issued building permits worth $26.8 billion during the first eight months of 2001, up 11.2% from the same period in 2000. This was the highest cumulative level for any January-to-August period since 1989. Both the residential and non-residential sectors showed advances year-to-date.
Department store sales totalled $1.68 billion seasonally adjusted in August, down 2.9% from July. This decline is the first in six months. Year over year, sales were up 10.4% in August compared with August 2000, with advances in all provinces.
U.S. chain store sales fell in the latest week, but less sharply than in the two preceding weeks, indicating the impact of the Sept. 11 attacks on retail sales may be moderate. U.S. chain store sales inched 0.2% lower during the week ended Sept. 29. The sales index also slipped, to 393.0 from 393.6 in the previous week. On a year-over-year basis, the index rose 2.4%, below the prior week's gain of 2.6%.
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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
ProfitMaster Canada has appointed Larry Stewart as regional sales manager for Eastern Canada. Stewart, formerly at Dimensions Retail Systems, has served the specialized retail computer systems market for eight years and has over two decades of experience in the building products industry. (204-889-5320)
CGC Inc. has announced the following personnel changes: Mike Garvey, formerly director, corporate accounts and marketing, has been promoted to director, marketing and technical services … Bill Miculescu, formerly national account manager — eastern area, has been promoted to manager, corporate accounts … Tony Anderson, formerly product manager, interior finishes, has been promoted to sales manager, British Columbia … Max Martin, formerly product manager, suspension systems, has been promoted to sales manager, Quebec … Larry Dean, formerly sales manager British Columbia, has been named product manager suspension systems … Matt Jameson, formerly market sales representative, has been promoted to product manager, interior finishes … Doug Skrepnek, formerly director, sales and marketing, has been named vice-president, sales and marketing.
Pierre Racette has left his position as vice-president marketing at Sodisco Howden Group and returned to the gypsum industry with a position in New Mexico. No replacement has been named yet. (514-286-8986)
Geoff Hicks, who spent four years at Jacuzzi as national wholesale sales manager, is now president & CEO of Cardinal Sales and Marketing. The position with Jacuzzi was eliminated, so there’s no replacement there. Cardinal Sales represents Hunter Technology in eastern Ontario and the GTA. (905-338-9797)
Dave Rimmer has been appointed National Retail Sales Manager, Canada, for Ingersoll-Rand Security & Safety. He joined the retail team of IR Security & Safety in 1998 as retail national account manager and in was most recently sales manager, national accounts. (905-278-6128)
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NOTED ...
You might want to think about your long-term trip plans now. Rates are incredibly low for airline travel, including the International Hardware show, Cologne, Germany, March 3-6, 2002. For more info, email Carol-Ann at: tradeshowtravel@home.com
The Walls Windows Furnishings Association is offering two certification courses scheduled prior to the opening of the Canadian Hardware & Building Materials Show/Décor Showcase. The courses, focusing on window treatment and wall-décor consultant certification, are being presented by the CRHA, the PDRA and WWFA. Presenters include Wallpaper Guru, and former editor of WALLpaper magazine Marita Thomas; Jeff Keelan of the Zinser Company, who specializes in adhesives; and Neil Cody of Living with Faux. Courses will take place at the Toronto Colony Hotel, Toronto. CHS/Decor Showcase opens February 3rd to 5th at The National Trade Centre, Toronto.
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OVERHEARD ...
The economic perspective looks very uncertain. But it could be that the DIY market is not affected too much. In the short term, consumers may fear to go to stores for two or three months. Thereafter, we believe that they could spend more money in their home. It is what happened during the Gulf war. But the scenario could be different if there is a new event/attack. When are you coming to Europe?
— Yves Rambaud, Fediyma, in follow-up correspondence to our Hardlines Conference, where Gilles Caille, president of Fediyma, gave a presentation via teleconference.
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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
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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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© 2001 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
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