During the period, the company posted a profit of $199,000, compared with a loss of $394,000 in the first quarter of 2003. Recorded revenues were slowed by a change in billing practice by a vendor from last year; otherwise, revenues would have increased by 6%. The company also continues to strengthen its balance sheet. Bank debt was reduced 11.8% from the same time last year, and total term debt decreased to $12.8 million from $14.5 million.

Thanks to the acquisition of Ace Hardware Canada Ltd., a deal that closed back in February, 2003, Sodisco-Howden’s hardware sales increased by 9%. “We’ve had good support from all the buying groups, and from our dealers in Quebec,” says Jos Wintermans, president and CEO of Sodisco-Howden, “so the increases have been right across the board.”

Wintermans points out that earnings per share gained one cent, after a loss of two cents in the same quarter a year earlier. “And we issued a ten-cent dividend to reward shareholders, which reflects our strong cash flow,” he adds. “We are very bullish about the future.”

Lieberman added in a prepared statement that the company’s profitability benefited from an earlier refinancing of its debt, which lowered its interest rate to 4% from 13%. The co-op did not release more specific financial information with this quarterly announcement.

TruServ expects its wholesale sales to continue to grow through the remainder of the year, as the U.S. economy continues to recover.

White Cap’s product mix includes tools and equipment (probably its strongest category), hardware, outdoor lighting, paint and work wear. Its yard features such construction materials as concrete, drainage and thermal and moisture protection products for commercial applications, as well as more conventional materials for home building and remodeling.

Home Depot estimates the size of the professional contractor market at $410 billion, and Jim Stoddart, president of Home Depot Supply, called White Cap “a leader in this highly fragmented market.” In a letter to its vendors about this deal, White Cap’s CEO Ted Nark said his company intended to “maintain business as usual,” and sought to assure those vendors that “as we leverage our strengths to grow the business, you business will also grow.”

The warehouse giant has a more personal connection with its newly acquired company, too. Dan Tsujioka, White Cap’s former executive vice-president in charge of acquisitions, was Home Depot’s vp-store operations in the 1980s, and at one point was in charge of opening every one of Home Depot’s new stores in the early stages of the chain’s expansion. He will remain on in a consulting capacity on further acquisitions.

Home Depot expects to complete its acquisition of White Cap within 30 days. It did not disclose the purchase terms, but noted that the deal would add to its earnings.

The connection between the two companies goes deeper than this latest deal. The contractors Home Depot uses to build its stores have had White Cap included among their preferred suppliers for some time, says Karen Haggerty, company spokesperson.

The lineup this year includes Jim Inglis, a former Home Depot executive and retail consultant; Joe Scarlett, chairman of the fast-growing Nashville, Tenn.-based Tractor Supply Co.; and Jos Wintermans, president and CEO of Sodisco-Howden Group, which has recently re-positioned itself as a primary force in hardlines distribution in the country.

Hardlines is proud to host the illustrious Outstanding Retailer Awards Lunch, presented by Hardware Merchandising magazine, this year, followed by the Gala Dinner that evening, with Red Green, on September 8.

We’ll be introducing more speakers in the weeks to come, but mark your calendar today for the Hardlines Conference Series, September 8-9, in Toronto. This year, the Conference Series moves to the brand new Renaissance Airport Hotel. For more information, click here or call us at 416-489-3396.

Earlier this year, CanWel recently changed its name from CanWel Distribution Ltd. to CanWel Building Materials. “We wanted a name that better reflects who we are today, who we’ll be in the future,” said CanWel’s president, Tom Donaldson, in a recent interview with Hardlines.

Last year, CanWel generated $542 million in revenue, and around $7.5 million in net income, from the sale of building products from its 13 distribution centers, says Johnston. He confirms that, aside from some debt reduction, the money raised from the IPO will be used to fund acquisitions. “We want to be the dominant building materials distributor in Canada,” he says.

According to Donaldson, the company has a big opportunity to grow, and he observes that the industry is enjoying “a very positive business environment that will continue for quite a while.”

Wal-Mart stands behind everyday low prices, which means, for vendors, everyday low cost. “We’re going to negotiate hard price, that’s a given,” Pilkington said. But being well-armed with knowledge of one’s item and category, and how it’s carried in Wal-Mart, goes a long way to building credibility. Also, companies should point out whether their products are already selling well in other channels or in other countries. These factors will earn a potential supplier added points when trying to make contact with the giant retailer.

But if a vendor does make that contact, they’d better be able to deliver. “If you get interest from a buyer, prepare for a wild ride,” said Pilkington, warning that the process “will move fast — believe me.”

The company told investors to expect higher sales and profit for the remainder of the year.

Masco provided a breakdown of some of its business segments. It reported that sales of cabinets and related products rose 18%, plumbing sales grew by 19%, decorative products gained 28%, and specialty products increased 20%. The company’s Masco Contractor Services division, which installs a range of products for large production homebuilders, saw its sales rise 16%.

The supplier also reported that business from Home Depot, Lowe’s and Wal-Mart, its three largest dealer customers, increased 21%.

The new line will be priced below other upscale paint brands, and will include a full line of Trading Spaces accessories, such as paint brushes, rollers, trays and sponges.

Existing Doman shareholders will not be entitled to any distributions or other compensation under this latest plan, nor will they have voting rights, but will be granted the option, through warrants, to purchase up to 10% of the shares of the newly formed Lumberco. The warrants would have a five year term.

RED DEER, Alta. — Peavey Industries Ltd. has joined the hardware buying group, Mutual Hardware. Peavey is a privately owned hardware and farm supply retailer with 26 stores throughout Western Canada, and sales of more than $100 million. Peavey is the 22^nd member of Mutual, which consists of retail chains, co-ops and industrial suppliers of hardware in Canada.

ISSAQUAH, Wash. — Costco Wholesale Corp. had net sales of $3.56 billion for the four weeks ended May 2, 2004. That’s an increase of 13% from $3.14 billion in the same four-week period of the prior fiscal year. For the first 35 weeks of its 2004 fiscal year, the company reported net sales of $31.35 billion, an increase of 14% from $27.47 billion.

MINNEAPOLIS — Water Industries Inc. had net sales from continuing operations for the third quarter of $5.3 million, up 6.8% from $5.0 million during the same period a year earlier. Net income for the third quarter was $169,000, up from a loss of $53,000.

CINCINNATI – Procter & Gamble Co. reported that third-quarter earnings rose 20%, while sales were $13 billion, up 22% from nearly $10.7 billion a year ago, thanks to strong sales in beauty care, health care.

AVON, Ohio — Henkel Consumer Adhesives has purchased the retail business of Tape Specialties Ltd., which includes the Painters Mate brand of adhesive tapes. Tape Specialties is a Canadian manufacturer of environmentally friendly water-based rubber adhesives.

TORONTO — U.S. industrialist Jerry Zucker, of South Carolina-based InterTech Group Inc., is close to owning enough shares of department store chain Hudson’s Bay Co. to make a takeover bid. Zucker now owns 18.1% of Canada’s oldest company. At 20%, he would be forced to make an offer to buy the entire company.

More interestingly, Lowe’s is conducting a contest, with a $10,000 prize, for local artists to submit murals that will decorate two sides of the store. The theme of the murals, according to a statement by the retailer, will be “Brooklyn: My Neighborhood, My Home,” and will depict what the artists believe makes Brooklyn a unique place to live.

Dean Andrey, category manager for tool accessories and tool storage at Canadian Tire Corp., stressed the importance of innovative products, items that will help Canadian Tire differentiate itself in the marketplace. “We want to be first to market with innovative new products,” he said.

To satisfy that hunger for the new and different, Canadian Tire stays open to new vendors of all stripes. “We have a vendor base of perhaps 2,000 or more vendors, including some of the largest and most well-established companies in the hardware and home improvement industry. But we also deal with some of the smallest, least established companies.”

With the development of Canadian Tire’s Concept 20/20, which expands certain departments on the retail floor of its stores, Canadian Tire offers more opportunities for vendors of décor products to get shelf space, he added.

Karol Hurrell, merchant at Home Depot Canada for department 29, kitchens, said that getting established with the Canadian division can become an effective stepping stone for doing business in Atlanta. If a vendor can learn to manage working with 102 stores in Canada, they are in a good position to present their programs successfully in Atlanta.
(Next week: tips for getting listed with Wal-Mart Canada)

Following the retirement of Barrie Sali at the end of 2003 as president and CEO of Tim-BR-Marts Ltd., the Vancouver-based buying group, there were murmurs that he would start a group for GSDs himself. Through five members alone, Tim-BR-Marts is the largest buyer of gypsum in Canada. But Sali tells Hardlines that he’s set up a home office and will devote his time to real estate development. “Am I going to go back into [the buying group business]? I don’t think so at this time,” he says. “I love what I’m doing now.”

At TSG, recruitment has not been aimed at existing members of other groups, which is why membership has been concentrated in Central Canada. “All the big GSDs in the West are affiliated,” notes Skrepnek, ” and I’ve tried to stay away from their loyal members. I didn’t want to disrupt things.”

At least, not yet. Skrepnek wants TSG to become the largest buyer of gypsum in the country and expects the group to top out at 15-20 members by 2006.

The Color Made Simple program includes removable “peel ‘n place” paint chips, which consumers can take home and test on their walls. It also includes an idea center that provides cards with color combination recommendations for various rooms, including a photo of a room and three coordinating color swatches.

One newly converted store may find some tough competition — from another Rona Home & Garden. The two stores, in Toronto’s east end, are practically right around the corner from each other, but that doesn’t faze Rona’s vice-president, store operations for Ontario, James Jones.

“Right now, there’s no need to close any of these stores,” he says. “Both stores will thrive and grow their market share.”

He points out that the existing Rona store has enjoyed high double-digit same-store sales in the past two years, putting its volumes just about on par with its neighbour. Both stores will continue to co-exist as a hedge against five Home Depot stores that are located in the area.

The process of harmonizing assortments in the newly converted stores should be completed by December 2005, says Jones.

In the quarter, G-P negotiated a deal to sell its distribution division to Cerberus Capital Management L.P. and some of that division’s senior-level managers. Georgia-Pacific expects the transaction to result in net after-tax proceeds of approximately $780 million, which will be used to reduce debt.

In the quarter, sales from the building products distribution division rose 44.4% to $1.264 billion. Manufacturing sales increased 34.9% to $1.652 billion.

As a corporation, G-P reported consolidated sales of $5.222 billion, a 17.7% gain over first quarter 2003 totals. The company’s net income was $147 million, versus a loss of $30 million. These totals included results from G-P’s consumer products, packaging, and paper and pulp divisions.

VANCOUVER — Forestry giant West Fraser Timber Co. posted earnings of $27 million on sales of $541 million for the first quarter of 2004, compared with earnings of $11 million on sales of $487 million in the first quarter of 2003. Earnings and EBITDA increased, despite a much stronger Canadian dollar versus the comparative period in 2003. First quarter earnings also include a $10 million pre-tax, non-cash charge related to the expensing of share options.

CALGARY, Alta. — Allroc Building Products Ltd. has added a new dealer to its ranks. Carrière Lefebvre is a Montreal-based GSD, and the latest Allroc member in the province of Quebec. Already strong in the West (it has 47 dealers west of Ontario), Allroc has its eye on the East for expansion. “We need a stronger presence in Atlantic Canada,” says Bob Hancock, vice-president of Allroc.

PRINCE RUPERT, B.C. — Tyee Building Supplies, a building center in this northern community of British Columbia, has become the latest independent in Western Canada to sign with Rona Inc. The former member of Irly Distributors becomes the 24th Rona-bannered store in the province, and the western-most Rona dealer in the country.

TORONTO — At its AGM last week, Sears Canada gave more clues to its previously announced desire to populate power centers (see Hardlines passim — Editor). Called Sears Village, clusters of smaller Sears specialty shops, they’ll be part of a strategy to reclaim market share in high-growth areas of the country that may not support a traditional mall. The retailer plans up to eight such Village stores by year’s end, and anticipates that there’s room for hundreds more in the future. Sears is owned 54% by Sears Roebuck & Co. in the U.S.

MISSISSAUGA, Ont. — Remington Products has relocated to the headquarters of its new owner, Rayovac. The company will now be known as Rayovac Canada Inc. The new address is 5448 Timberlea Boulevard, Mississauga, Ont. L4W 2T7. (905-624-4448 or 1-800-268-0425)

STE-MARIE, Que. — Maax Inc., one of North America’s largest makers of bathroom fixtures and accessories, reported sharply lower profits and revenues for its fourth quarter. Earnings fell to nearly $3.4 million, compared with a profit of $6 million a year earlier. Net sales in the period fell almost 8% to $142.8 million from $154.7 million, due mainly to the impact of the stronger Canadian dollar compared with the U.S. dollar. For the entire fiscal year, Maax profits fell to $34.4 million from $36.6 million, while annual sales rose to $642.2 million from $616.9 million.

MISSISSAUGA, Ont. — The Canadian Retail Hardware Association has moved offices. They’re still in the same building, but with a new suite number: CRHA, 2121 Argentia Road, suite 404, Mississauga, Ont. L5N 2X4. (905-821-3470)

MONTREAL — Tembec‘s second-quarter consolidated gross sales were $887.2 million, up from $857.8 million in same period last year. Tembec generated a net loss of $93.1 million, a swing from net earnings of $34.2 million a year earlier.

CHICAGO — Filling only 200,000 sq.ft. of space, the inaugural AHMA Hardware Show received mixed reviews from exhibitors and visitors alike.

However, that small size meant, for some, a more manageable show, one that made key buyers more accessible given the absence of many major vendors. Buyers, in turn, were likely to find more and smaller suppliers representing, in many cases, some true innovation and new product opportunities. Exhibitors included many firms that had not previously exhibited at the National Hardware Show, although many of them were not traditional hardware/home improvement companies, and looked better suited for a housewares show.

According to the AHMA, Home Depot, Lowe’s, Menard’s, Ace Hardware, Do it Best Corp. and True Value were among the 15,000 visitors at the show. The show also managed to attract a number of international buyers — from 15 countries that included South Africa, Germany, the U.K., China and Chile.

To its credit, the AHMA spared no expense in staging the show. It sponsored a lavish opening reception for buyers and exhibitors and a special reception another night for international attendees and exporting exhibitors. A seminar schedule offered insights on everything from selling hardware on the internet and international retailing, to other management and merchandising-oriented topics.

“We want to differentiate through new, exciting exclusive merchandise,” he said, noting that his company, which has more than 450 stores across the country, has the resources to excel at style and design. Those elements are part of the company’s efforts to better appeal to the female customer, a prime target of Canadian Tire’s newest “20/20” store concept.

Remarking on the increasing competition of the Canadian retail landscape, Roussy called retail “more intense” than ever. Wal-Mart Canada and Loblaw’s now hold about 20% of the entire Canadian retail market, he said. He went on to quote his boss, Canadian Tire president and CEO Wayne Sales: “In retail, there are only winners and losers. There’s no room in the middle.”

Canadian Tire sees itself fitting in alongside that competition as a retail winner by emulating Target Stores in the U.S., which brings a higher-end approach to mass merchandising to compete alongside Wal-Mart there.

Canadian Tire believes there’s room for only one mass merchant (Wal-Mart) but does see room for two or three other companies in the middle, or “hybrid” zone, Roussy explained. He sees Canadian Tire fitting in there. By being relevant and unique, it can be the “Target of Canada,” he said.

Home Depot broke ground for the store last week, following a ceremonial blessing. The giant retailer currently operates six stores in Hawaii, but this will be its first in Hilo. It’s scheduled to open in December.

Griffith is traveling on business in Asia and unavailable for comment. But Dave Hodnik, Ace’s president and CEO, said in a prepared statement that Griffith was responsible for much of the co-op’s recent retail successes. Last year, Ace surpassed the $100 million mark in net income for the first time, increased its wholesale sales by 4.3% to $3.2 billion, and paid out a record $102 million in patronage dividends to its members. During the year, the co-op implemented nearly 4,000 new product displays in its dealers’ stores, and increased its total retail square footage by 10%.

In 2004, during which it will celebrate its 80^th anniversary, Ace expects to add 80 stores and increase the total retail selling space within its dealer network by 1.6 million sq.ft. This year, the company will also open a one-million-sq.ft. distribution center in Sacramento, Calif., to support its west-coast growth.

The emphasis on these programs is part of TruServ’s efforts to define the future of the independent hardlines retailer, one that figures heavily on the spending power of the female shopper, says Bill Morrison, president of TruServ Canada.

“Value continues to be an important part of the business for our dealers, so we’ve also had a lot of emphasis at the market on our ‘Red Hot’ deals,” Morrison says.

These special buys reflect large-quantity purchases that are made available to the dealers on a rapid-delivery basis. “It gets around having to plan out their purchases by six or nine months,” he adds. Red Hot specials at the latest market included fertilizer and bird seed.

Finally, a renewed commitment by TruServ Canada to help build the businesses of its members was underlined by the reorganization of its management team into new business development — under vice-president Tony DiEmanuele — and sales and operations, which concentrates on development for existing dealers — under vice-president Ray Falkenberg. Falkenberg’s team of district managers will help dealers understand and utilize the latest programs coming out of TruServ to help them, in turn, build sales.

With an inventory of 30,000 SKUs, Woodie’s includes housewares and decorative items to appeal to women. Its female customer count has doubled over the last few years. Decorating accounts for 29% of sales; gardening, 27%; DIY, 22%; home and housewares, 13%, and building materials, 9%.

To bring in more female customers — and it’s getting twice as many as it did some years ago — Woodie’s inventory now includes everything from picture frames and decorative items to housewares and big Christmas decorative sections in season. It also runs how-to clinics for women, teaching them how to decorate, become a DIYer, improve their yards and gardens, etc.

The company recently installed a new, upgraded POS system, Colman reported, and spends a lot of time and effort on developing its people. “Customer care is our constant concern,” he explained. To encourage customer service, the chain recently has concentrated on recruiting mature personnel, as it finds older employees understand customer service and are enthusiastic in offering it.

More information about the Worldwide DIY Council can be found at www.wdiyc.org.

Of the six stores, which had sales of about $60 million throughout the Greater Montreal Area, one, a small, 3,000-sq.ft. outlet on property not owned by the chain, has been closed down. The others are slated for renovation over the next two or three years.

As part of its renovation, the former Matco outlet in Blaineville will also have a 25,000-sq.ft. warehouse added to it, which will be used to supply the other former Matco stores.

“Overregulation is devastating rural communities, shuttering family-owned businesses and hurting those who practice responsible, sustainable forest management in California,” said Donn Zea, the commission’s president.

The Commission attributed the sharp decline in harvesting to two primary factors: a near-elimination of harvesting trees on government land (which has fallen 90% since 1988) and increasing regulatory red-tape that makes it harder and excessively expensive to responsibly harvest trees on privately-owned lands. Environmentalists have argued previously that mechanization has had as much to do with logging job losses in the western U.S. as environmental laws.

The timing of the release of this report probably isn’t accidental, as the U.S. Forest Service is advancing a plan to triple logging in 11.5 acres of national forests in the Sierra Nevadas, and is pushing to log beetle- and drought-ravaged trees that are still standing after the record number of wildfires in Southern California last year.

Indeed, the commission contends that the decline in harvesting on publicly owned land is what caused those fires because government policies prevent their maintenance.

ATLANTA — Home Depot is now carrying cut flowers in about 200 of its stores, along with live goods. A limited test last winter is being expanded to other stores in the chain, in conjunction with local florists, such as FTD.

HOFFMAN ESTATES & TORONTO — Sears Roebuck reports that it lost $20 million in its first quarter ended April 3, compared with a profit of $192 million a year earlier. However, its counterpart in Canada, Sears Canada, saw its 1Q revenues rise 3.8% to $1.331 billion, from $1.282 billion for the same period last year. Same store sales increased 8.1%.

Lincolnshire. Ill. — Fortune Brands Inc. saw its 1Q profits jump 40%. Strong consumer demand, favorable currency-exchange rates and cost-saving initiatives were all cited as contributing to the rise. Net income was $139.7 million, up from $99.5 million a year earlier.

MISSISSAUGA, Ont. — Masonite International Corp. has reported a 36% increase in first-quarter profit on sales that were up 16%. Net income was $27.7 million, up from $20.3 million, on sales that climbed to US$468 million from US$402.2 million during the same period a year earlier.

GLENVIEW, Ill. — Illinois Tool Works enjoyed a sales increase of 17% in its first quarter, to $2.71 billion. Net income rose to $290.2 million from $195.4 million, while income from continuing operations increased to $290.0 million from $199.5 million a year earlier. ITW completed 10 acquisitions in the quarter, representing $250 million of acquired annual revenues.

BOISE, Idaho — Boise Cascade Corp. reported first quarter 2004 net income of $63.5 million, compared with a net loss of $27.5 million in first quarter of 2003. Sales in first quarter nearly doubled to $3.5 billion, compared with $1.9 billion a year ago. Sales increased primarily because of the acquisition of OfficeMax in December 2003, but were also aided by strong product prices in Boise Building Solutions. The quarter’s results include a pre-tax gain of $59.9 million, from the sale of 79,000 acres of timberland in Louisiana. Before this special item, the company posted first quarter 2004 net income of $26.9 million.

GREENSBORO, N.C. — Oakwood Homes Corp. has sold substantially all of its operations and non-cash assets to Clayton Homes Inc., a subsidiary of Berkshire Hathaway Inc., for $372.5 million in cash. The asset sale was approved by the Company’s creditors pursuant to applicable bankruptcy law. The sale proceeds and substantially all assets not sold to Clayton were conveyed to a liquidation trust for ultimate distribution to the company’s various constituencies as described in the company’s final amended plan of reorganization, under U.S. Bankruptcy Court for the District of Delaware.

B&D also saw sales from its Hardware and Home Improvement segment grow 14% in the quarter, with revenue from Price-Pfister brand faucets and bath accessories increasing 20% on the strength of Lowe’s taking on that line chain wide. During the quarter, B&D added to this segment through its acquisitions of Baldwin Brass and Weiser Lock, which are currently being integrated into B&D’s Kwikset security hardware business, which itself is in the process of being restructured to reverse soft sales. In the quarter, that restructuring resulted in $20 million in savings, and the company projects the total savings for the year could be $45 million.

The integration of the new companies into this business is expected to yield a $40 million improvement in operating income in 2005 and 2006 combined.

Lowe’s currently operates 61 stores in Florida, and is building seven stores and a distribution center in the central part of the state that are scheduled to open this year.

FORT WAYNE, Ind. — Two of America’s largest home improvement dealers have announced plans to open stores in this town, best known, industry wise, as headquarters of the buying group Do it Best.

According to the News-Sentinel, a local newspaper, a local development group has obtained a commitment from Menard’s, the U.S. industry’s third-largest dealer, to build the retailer’s third store in this market. It will be a $7 million, 225,000-sq.ft. home improvement center on 16 acres. The Menard’s construction, which should begin by year’s end, would be part of a larger redevelopment of a 102-acre property, which would include the razing of an old Sears store.

The Menard’s outlet will be located in Fort Wayne’s southeast quadrant, whose households’ buying power equals $33.6 million, second only to the southwest, according to a recent survey by Chicago-based research firm MetroEdge.

However, several acquisitions over the past years have managed to shore up the company’s position, everything from Weber Supply‘s retail business in Central and Eastern Canada and Smith-Barregar in British Columbia, to the home improvement business of Marchands Unis in Quebec. Then, last year, Sodisco-Howden paid $15 million to buy out of the operations of Ace Hardware in Canada.

Sodisco-Howden continues to promote the Ace name. There are now 43 stores in Quebec that have converted from one of Sodisco-Howden’s retired banners such as Novico. In addition, about 40 Do-it center dealers, who are also confronting the retirement of that banner in Canada, have also agreed to sign on with Ace. Add in another 60 dealers, many of them co-bannered buying group members, especially from TIM-BR Mart Ontario, and the wholesale distributor expects to have 200 Ace dealers in Canada by year’s end.

The initiatives seem to be working. Sodisco-Howden’s business through its Western DC, Smith-Barregar division, is up 30% last year, and significant inroads have been made to secure more business from key dealers in British Columbia, such as Dick’s Lumber in Burnaby and Slegg Lumber, based in Sidney, which has five outlets in the province.

In addition, Sodisco-Howden continues to invest in the business. Most recently, a program is under way to implement an enterprise resource planning system (ERP), a state-of-the-art DC operational system by JD Edwards “to get the whole company on the same platform,” says Wintermans. “We’re expanding, we’re going forward. We’ve stopped playing defence. We’re playing offence now.”

Since entering China in 1998 with a central warehouse and offices, OBI now has nine stores there, and has grown to four regional offices. But Lux says the potential for that market is tremendous: his goal is to have 19 stores in China by the end of this year, expanding to 24 stores by the end of 2005, and increase that number to 100 by 2010.

To facilitate this growth, OBI last month has appointed one of its senior merchants, Markus Maus, as COO of OBI’s Chinese operation.

Another strong market for OBI is Russia, where the retailer has installed two stores so far, both of them in Moscow. While economic growth and consumer demand are strong in this city, that growth is not yet being reflected in other parts of the country. But “Moscow is phenomenal,” says Lux.

St. Petersburg is also being considered, and Lux expects to break ground on a store there very soon, for an opening in early 2005.

In the fall, the mix will shift to leather club chairs and ottomans from Mitchell Gold.

By making this move, Nordstrom puts itself in more direct competition with specialty dealers such as Pottery Barn and Bed Bath & Beyond, the latter of whose sales in 2003 rose 22.2% to $4.48 billion and earnings increased 32.2% to $399.5 million.

“Since January of this year alone, eight new dealer-owners have joined our ranks, including our very first partners from Western Canada,” said Robert Dutton, president and CEO of Rona, in a prepared statement. “We’re very pleased that they’ve joined us, especially because it helps confirm that our recruitment goal for 2004 — 50 new points of sale representing some $100 million in retail sales — is a realistic vision of the current market’s potential.”

Rightway Building Products becomes the 25^th store in Alberta to operate under a Rona banner. It has 12,000 sq.ft. of space dedicated to hardware and renovation products and two acres outside for storage, building materials and lumber.

Glacier Building Supplies is a 6,000-sq.ft. store that sits on five acres. It will become a Rona Building Centre — and the 23^rd Rona location in British Columbia.

“Brand awareness in the West going well,” Dutton says, “as private-label brands keep growing in acceptance.”

The new Rona dealer from Ontario, the Wood Works of Renfrew features 2,500 sq.ft. of retail space and one acre outside for building materials and lumber. It is converting to a Rona Home Centre. Rona now has 100 home improvement stores in Ontario, plus another couple of dozen Botanix garden centres.

While smaller than a typical Wal-Mart Supercenter — at 95,000 sq.ft., it still manages to feature everything from food and clothing to household goods, all served by 30 checkouts — including some self-serve checkouts.

Other lines include Wal-Mart’s own George brand of clothing, re-branded G for the Japanese market, along with Wal-Mart’s Simply Basic brand of men’s, women’s, and children’s fashions. The new mega-store also features a deli section that includes sushi.

LONDON, Ont. — Canadian country music artist Michelle Wright was the star of the show at the grand opening of two new TSC stores on Saturday, April 17. The stores are located in Essex and Listowel, Ont. Wright, who has been the spokesperson for TSC for the past two years, was on hand to perform live and sign autographs.

TSC, known as “The Incredible Country Hardware Store,” has 22 locations across Ontario. It’s loosely affiliated with Tractor Supply Co. in the U.S. and focuses on serving the rural home and farm market.

While the cost of investing in the new distribution was $35,000 per dealer, smaller dealers in the AWARD membership are not being excluded from the advantages of ADL, says Smith.

But the real growth for the group last year came from rebates. While shipments through the group increased 12.0% to $196 million, rebates grew by an incredible 26%, “which was a huge number, realized through the strategy of our preferred vendors.”

That preferred vendor program will be translated into the distribution centre, as well. Increasing loyalty among the members for key suppliers has been a goal of Smith’s since taking the helm four years ago, and now the group works with preferred vendors in 30 categories. “Getting the rebates requires delivering the volume. It’s an absolute buying discipline that’s going to benefit the members,” he notes.

ATLANTA — Bob Nardelli, the head of Home Depot, got an 11% increase in his pay package in 2003, says the retail giant’s latest proxy statement. Nardelli, the chairman and CEO of the company, was paid $2 million in salary, up from $1.9 million in 2002, plus a $4.5 million bonus, up from $4 million in 2002. But wait — he got an additional $5.2 million in “other compensation,” most of which relates to forgiveness of a loan, the proxy says. Throw in some stock options and his total pay package for 2003 was more than $22 million.

BOISE, Idaho — Boise Cascade Corp. has reached an agreement with Ainsworth Lumber Co. Ltd. to sell its Voyageur Panel Ltd. business to Ainsworth. The deal is worth approximately $193 million, plus as much as $10 million more based on OSB prices between the close of the deal and year-end. Boise should realize approximately $90 million from the transaction, which is expected to close in the second quarter 2004. Voyageur Panel operates an OSB plant in Barwick, Ont., that has an annual capacity of 440 million sq.ft.

SACKVILLE, N.S. — Payzant is adding a new store here — in fact, it represents the consolidation of two smaller, existing outlets into one 22,000-sq.ft. store. The store will replace a 3,500-sq.ft. Home Hardware Building Centre and a 4,000-sq.ft. Home Hardware store. The new outlet is expected to open its doors this summer. Additional features of the expanded operation will include an expanded flooring section, a rental program and gourmet shop.

BOSTON — Ace Hardware Corp. has begun connecting with its vendors with data synchronization via UCCnet. A data sync provider, TR2, has collected, cleansed and published the product information from one of Ace’s suppliers, Magla Products, a household glove supplier. This publication ensures that Magla stays compliant with their retail customers’ demands for data synchronization. Ace, along with other leading retailers such as Wal-Mart, Wegmans, Lowe’s and Home Depot, has launched the data sync initiative with suppliers to realize global standards.

CHICAGO — Federated Department Stores, which owns Macy’s and Bloomingdales, is in talks to acquire Marshall Field’s department stores from Target. Target announced last month that’s it’s looking at selling off the Marshall Field’s chain and its lower-end Mervyn’s stores, to focus on its more profitable discount stores. The deal is estimated by some to be worth up to $3 billion.

TEMISCAMING, Ont. — The Department of Commerce has notified Tembec that its duty will be reduced on imports of softwood lumber to the U.S. Since May, 2002 Tembec has been forced to pay anti-dumping duties of 10.21% on softwood lumber its sells to the United States. The reduction brings that rate down to 6.28%. This is the result of a NAFTA Panel decision which instructed the United States to change its dumping calculation methodology.

TORONTO — A new consumer website using content from some of Canada’s leading DIY, garden and home improvement figures is about to launch. Called homeenvy.com, the site will feature columns by HGTV’s Kimberly Seldon, plus Steve Maxwell, Kathy Renwald, Mag Ruffman (our DIY goddess), and the inimitable Red Green (aka Steve Smith).

The new initiative is looking for key sponsorship support. For more information, contact Terry Baskin at Footprint Associates: terrybaskin@sympatico.ca.

BACKGROUNDER:
Tillman began working for Lowe’s as a trainee when he was a teenager, and at 24 became the retailer’s youngest manager when he was assigned to run a Lowe’s store in Wilmington, N.C. That store soon emerged as the chain’s highest-volume outlet. Tillman then began his steady ascent up the management ladder to the position of senior vp-operations.

After Home Depot passed Lowe’s in sales in 1988 to become the industry’s largest retailer, Tillman initiated a bold competitive strategy to convert Lowe’s stores — mostly small and midsize outlets with attached drive-through lumberyards — into big box home centers. Tillman had the full support of Lowe’s president at the time, Leonard Herring, and the company opened its first 100,000-sq.ft. warehouse store outside Charlotte, N.C., in 1990. Lowe’s took a $71 million charge against earnings in 1990 to cover the initial conversion costs.

Tillman became Lowe’s CEO in 1996, and its chairman in 1998. During the 1990s, Lowe’s made considerable adjustments to its warehouse format, with an eye toward distinguishing it from Home Depot’s down-and-dirty presentation and appealing to female shoppers. Home Depot officials contended that Lowe’s did little more than copy their formula (right down to measuring the foundation of its new stores), but they could not dismiss Lowe’s consistent sales and earnings gains.

In 1999, Lowe’s made a big leap into the national arena when it acquired, for $1.1 billion, the 36-unit Eagle Hardware & Garden on the west coast, a purchase that for more than a year gave Lowe’s a bad case of indigestion as it integrated Eagle’s operation into its own.

Between 1990 and the end of this year, Lowe’s will have expanded from 330 to 1,092 stores. Its revenues in 2004 are expected to exceed $36 billion, and the company is one of America’s most profitable dealers.

The 41-year-old Niblock has been with Lowe’s since 1993 and was named Lowe’s president in March 2003. His expertise is on the financial and accounting sides of the business. Unlike Tillman, who had a tendency to shoot from the hip in his public statements about competitors and suppliers, Niblock is said to be more reserved.

Rona now has 100 stores in Ontario.

The conversions mean not just the end of the Building Box name, but also the end of Réno-Dépôt format in Ontario, which relied on extensive SKU counts to offer the widest selection of products among any of the big box chains in the country. It also enjoyed more contractor business than its Rona counterparts.

As the conversions continue into the interior of the stores, assortments will be harmonized with the Rona big boxes, and emphasis on private-label products will be increased. The initial focus is on specific categories. Seasonal is at the top of the list, because of the time of year. “We’re taking care of the consumer, who will be spending the most money in this area right now,” says James Jones, vice-president store operations for Rona in Ontario. The paint department, always a premier category for Rona, will see the elimination of Building Box’s Avanti and other private-label brands, with the addition of Sico and an expansion of the ICI line. Flooring is another key category, says Jones, one that combines the strengths of both banners, especially in laminates and wood flooring.

However, the 14 Réno-Dépôt stores in the Montreal and Quebec City areas will continue to operate under the existing name, and maintain their distinctive breadth and depth of assortment. The Réno-Dépôt store in Sherbrooke, Que., which Rona must sell to a home improvement competitor to meet the terms of the Competition Bureau’s approval of the Réno-Dépôt acquisition, has yet to find a buyer.

The program has been developed under the auspices of Mike Clements, merchant for At Home Services. He currently has some 300 project managers working under him to execute the program at store level.

The certification program launched in February, and through early April more than 4,000 Home Depot associates have completed at least 10 hours of the training modules and more than 1,700 associates have successfully completed all coursework to achieve full certification, according Steve Jansen, the retailer’s vp-gardening merchandising.

Consultants are identified with a certification badge on their signature orange aprons.

CONCORD, Ont. — Okay, I was just pulling your leg on April Fool’s Day with the announcement that Peter Parker (aka Spiderman) and Adam West (shown here) had joined a new “Super” buying group. But there really is a new buying group in Canada, and it started out by calling itself the “Super Group.”

Why a new group, when there are at least 12 buying groups for building materials dealers in Canada already? “None of these buying groups focuses on the commercial side of the business. Our company is fully involved in the gypsum, insulation and steel business,” says Skrepnek.

TSG already has six heavy-weight members. Guelph, Ont.-based Patene Building Supplies has 11 yards in Southwestern Ontario, stretching into the Niagara Peninsula, and sales of about $75 million. Beauchesne Group, including DL in Ottawa and DSF in Quebec City, has also joined the new group. The other members, all centered around the Greater Toronto Area, are Leon’s, Coastal Drywall, Costa Building Supplies and Commercial Building Supplies. (More on TSG in next week’s issue — Michael)

Home Depot wants to occupy 105,000 sq.ft. of the complex, as well as put in place a 54,000-sq.ft. garden center. Spokespersons representing Home Depot’s interests said that the retailer is willing to consider measures that would minimize traffic congestion.

Vice-mayor Frank Colonna, whose Third District includes this neighborhood, said he is withholding a decision on whether to support the project, noting that the area is zoned for industrial use.

The Inglewood development was to be part of Wal-Mart’s plan to put 40 super centers in California over the next several years. So far, the retailer has had mixed results with voters in the state, who recently rejected its plans for a super center in Oakland, but overturned restrictions to development in Costa Contra and Calexico.

Other cities are mounting their protests against large-format retailers, besides Long Beach, Calif. Last week, the Chicago City Council ignored the wishes of the local alderman and put off consideration of a zoning change that would have allowed Wal-Mart to build its first store in that city, on the site of a former steel plant. Zoning for another store, on the West Side, is being stalled by the objections of a single alderman.

Local residents are not the only ones opposed. Organized labor decries Wal-Mart salary standards, which are considered too low to live on. (So the only place they’ll be able to shop at is Wal-Mart! — Editor)

ADL has already begun supplying its own members, who represent 96 stores and $355 million in retail sales in 2003. Tom Smith, president of AWARD, says ADL is “off and running. It’s been a real success story.”

The move by AWARD to create a greater presence at the show may set a trend, as other groups look for ways to showcase their own preferred suppliers on a regional basis. This will not only highlight the service offerings of various suppliers, but add new depth to trade shows, as they look for ways to evolve themselves in light of the mounting consolidation in the home improvement industry.

PRINCE ALBERT, Sask. — Castle Building Centres Group has signed another new member in Western Canada: M& M Building Supplies Ltd., of Prince Albert, Saskatchewan. Larry Mardell, owner, was previously unaffiliated with a buying group.

BENTONVILLE, Ark. — Wal-Mart Stores Inc. reported net sales in March of $25.13 billion, an increase of 14.0% over same five-week period in the prior year. Sales year to date were up 14.0% to $45.29 billion, from $39.74 billion in the similar period in the prior year. The Wal-Mart division’s sales for March were up 12.3% to $16.72 billion. Sam’s Club sales for March were $3.38 billion, up 9.3%. The International division’s sales were $5.03 billion, up 23.6%.

Home centre and big box chain Kent Building Materials has opened its newest store, this one at 130 South Albion St. in Amherst, N.S. It’s Kent’s seventh store in Nova Scotia, and the 24^th in the chain overall.

DUNCAN, B.C. — International Forest Products (Interfor) has withdrawn from negotiations to buy Doman Industries or any assets of Doman’s subsidiaries. It was all about price. But Doman is now being wooed by another company, Ableco Finance LLC, an entity related to Cerberus Capital Management, in an effort to find an alternate restructuring proposal for Doman’s secured and unsecured indebtedness.

BEIJING, China — Ikea plans to open an additional eight stores in China over the next five years. The Swedish furniture retailer built its first stores there, in Beijing and Shanghai, in the late ’90s. A second Beijing will open next year; a total of 14 Chinese cities have been identified as potential locations. Eight million people are expected to visit Ikea’s Chinese outlets this year.

MISSISSAUGA, Ont. — Wal-Mart Canada has once again fended off attempts by its employees to unionize at one of its stores. The associates in Jonquiere, Que., have rejected being unionized by the United Food and Commercial Workers Union. In June 2003, the union attempted unsuccessfully to organize at a Wal-Mart in Thompson, Man.

Lighting and ceiling fan supplier Canarm Ltd. has purchased the assets of Toronto-based Florida Lighting Group. Florida Lighting supplies decorative and commercial fluorescent lighting fixtures to retail and commercial customers.

Sears, Roebuck and Co. posted a slim 0.1% gain in March same-store sales, reflecting sluggish demand for women’s clothing. However, sales in consumer electronics and lawn and garden products were stronger. Total sales for the five-week period ended April 3 reached $2.37 billion, down 1.3% from a year earlier.

Now Sodisco-Howden is battling with the upstart Groupe BMR and its buying alliance, Quincaillerie Matreco Hardware, so this time around Thornes is maintaining its focus on plumbing and heating, primarily, along with some electrical. And rather than seek to become supplier of choice, it has taken the route of being a fill-in supplier with the buying groups such as AWARD and Castle, and with some of the remaining true independents in the region.

Thornes can afford to take its time. Like home improvement retail chain Kent, which is one of its customers, Thornes is part of the Irving group of companies, a private company that’s owned by one of Canada’s wealthiest families, so the organization’s deep pockets will likely let it move ahead in a cautious way. It does about $5 million with Kent, and some business with buying groups such as AWARD.

Now in its ninth year, the Hardlines Conference Series is an executive-level gathering of North America’s top retailers and vendors. Besides case studies from retail’s front lines, the event features speakers who provide insights into the latest trends shaping the industry today. In fact, we’ve just signed Ira Kalish, global director with Deloitte Research‘s Los Angeles office. He’ll give his amazing overview of the emerging markets, the next wave of consolidation, the changing consumer, and the international threats to national brands.

We’ll be introducing more speakers in the weeks to come, but mark your calendar today for the Hardlines Conference Series, September 8-9, in Toronto. We’re booking up one of the hotels by the airport, so make sure you come for the Outstanding Retailer Awards Lunch, presented by Hardware Merchandising magazine on September 8, followed by the Gala Dinner that evening. For more info, call us at 416-489-3396.

During the conference, the company disclosed that it would spend $3.4 billion this year and $3.6 billion in 2005 to open 140 and 150 stores in those years, respectively. At the end of fiscal 2003, Lowe’s operated 952 stores in 45 states that generated $30.8 billion in sales.

Tillman also told the audience that he did not foresee any reduction in plywood prices, which, according to Random Length‘s benchmark price for Western 1/2-inch 4-ply sheets, were $520 per 1,000 square feet on March 26, compared to $265 for the same period a year ago. “The supply is now pretty well managed,” he said, “There’s not an oversupply. There are fewer manufacturers.”

As China’s housing market opens up, and the populace shakes off the coils of socialism, the country is becoming a big market in its own right. “China is the fastest growing large country in the world,” said Kalish. “Its economy grew by 9% last year.” However, European companies, not those from North America, are taking advantage of that emerging market. Retailers such as German-based OBI and U.K.-based B&Q have made the Far East a major growth target in the years ahead. (Ira Kalish will speak at the Hardlines Conference Series September 8-9. Click here for more info — Michael)

The 75-year-old Davidson — with 325 employees, a distribution center and a large truss plant — is one of the few remaining large independent dealers left in the United States, after nearly a decade of aggressive acquisitions by pro dealers like BFS, Stock Building Supply, Lanoga and Building Materials Holding Corp.

A recommendation, or announcement about Sodisco-Howden’s future — and possible new investors — is expected within weeks.

In the meantime, armed with the full hardware and LBM program, Wintermans says Sodisco-Howden has made significant inroads versus BMR’s new venture joint venture, Quincaillerie Matreco Hardware. In fact, he says, Sodisco-Howden is selling more hardware to AWARD members than ever before. “We’ve signed up a significant part of AWARD’s membership,” he says, many of them already investors in AWARD Distribution Ltd., QMH’s distribution arm in Atlantic Canada.

But ILDC has steadily rebuilt its ranks with the likes of Calgary-based Totem Building Supplies, J&H Builders Warehouse in Saskatoon and McMunn & Yates, which has stores in Brandon and Winnipeg, Man. The addition of Star Building Centres, with a store in Winnipeg and another in Calgary, became ILDC’s 25^th member on April 1, adding $60 million in sales and bringing the total number of stores in the buying group to 153.

ILDC ended 2003 with combined sales of $2 billion, reaffirming its position as Canada’s largest single LBM buying group. But part of the growth has come from expansion by the dealers themselves, says ILDC’s general manager, Andrew Battagliotti. Many members, such as Totem and Kent, have added stores of their own over the past year. In fact, he notes, “Most of the members have been aggressive in adding stores.”

Another signing, in mid-February, of Chouinard Brothers/Gibson Building Supplies represents something of a departure for ILDC’s membership. This company is actually two vertically integrated businesses. Chouinard Brothers is a 40-year-old roofing company, while Gibson, barely three years old, is a specialty building supplies dealer with two outlets that specializes in roofing.

Star is expanding in its own right: the smaller store in Calgary will be replaced, as approvals have just come through for the conversion of a new, larger property into another Star outlet. The old store will be closed down and the new one, in the centre of the city, will open by fall 2004, a 60,000-sq.ft. building on eight acres, that will include a truss plant and warehouse.

Groupe BMR, which serves dealers in Quebec and French-speaking communities of New Brunswick and Northern Ontario, pushed its own BMR banner.

Now, a decade later, Otto, who works closely with AWARD, is consulting with the store design specialists from the other TIM-BR Mart groups, John Irwin in Ontario and David Beck in Vancouver. “We worked up a bunch of ideas, and now we’re taking the next step,” Otto says.

That includes trying to make the stores more appealing to women, and that means bringing some of the atmosphere and texture of one’s own home right onto the retail floor. “Part of the new initiative is to bring more a home-like atmosphere into the store.”

While reluctant to disclose specifics until the overall program is finalized, Otto says an example of this approach would be making signage on softer materials, that might be reminiscent of curtains in the home. The resulting effect, of “billowing,” is one that customers will find more soothing.

And as AWARD members tap into new lines of hardware, a result of their involvement in AWARD’s new distribution arrangement with BMR, Otto faces the challenge of putting them in the stores to best advantage. “Having the product is one thing, but actually having the ability to merchandise it effectively is another.”

“With two warehouses, east and west, we’re really well poised for excellent growth,” says DiEmanuele.

SCOTTSDALE, Ariz. — ImproveNet, which provides homeowners web-enabled access to qualified remodelers, distributors, architects and other home improvement professionals, has reverted to a more conventional means of communications, by opening a call center here. Twenty full-time employees staff the center, but the company expects its to expand that to more than 100 by year’s end. The eight-year-old ImproveNet, with annual sales around $3 million, continues to look for new ways to attract more customers to its services. Last September, it struck a deal with MSN to integrate its “Find a Contractor” service into MSN’s House and Home channel.

LIVERMORE, Calif. — Activant Solutions has been chosen by Do It Best Corp. as the exclusive technology provider to its members. This means that Activant’s Eagle and Falcon systems represent the exclusively endorsed “next generation” business management systems for Do It Best’s 4,400 independent members. Activant will provide a total technology solution including software, hardware, training and support to all Do It Best members.

TORONTO — Rona Inc. will officially rename its Building Box stores in Ontario today. The six stores, part of the acquisition of Réno-Dépôt by Rona which closed last September, will all switch to Rona L’entrepôt, including the store around the corner from an existing Rona big box in Toronto’s east end area of Scarborough. Rona’s 14 Réno-Dépôt stores in the Quebec market will continue to operate under that banner.

LONDON, UK — England’s largest DIY retailers, B&Q, will share a record bonus with its 34,000-plus employees in 320 stores. The bonus, worth £34 million, is a result of the company’s record profit last year, which increased 13% to reach £372 million. The bonus is equivalent to 10% of their salary.

NEW YORK — InterTan Inc., the Canadian retail holding company which owns 980 stores under the Radio Shack, Rogers Plus and Battery Plus names, is being bought by Circuit City Stores Inc. for U.S.$284 million in cash. In its 2003 fiscal year ended June 30, InterTan had revenue of $403.1 million and net profit of $7.7 million. The number-two consumer electronics chain in the U.S. follows its rival, Best Buy, which bought up Future Shop to make its entry north of the border.

TORONTO — Sears Canada Inc. is gradually exiting the auto repair business, and has turned over 36 of its 49 auto centres to Kal Tire, President Tire and Active Green & Ross to operate starting in May 2004. These three auto service and tire providers will re-brand the Sears outlets under three separate licensing arrangements.

MONTREAL — The Ducharme family, which owns a Rona store under the Rona Le Rénovateur banner in St-Césaire, on the south shore of Montreal, decided to invest in another, smaller store under the same banner, which will open on May 11 in St-Pie-de-Bagot. The St-Césaire store will supply the other Rona stores of the district, helping the Ducharmes leverage their position in their own market.

Laurie Blackwood Pike has joined Sodisco-Howden Group as territory manager for Newfoundland and Labrador. His background in the industry includes stints as an agent repping companies such as Weyerhaeuser and MacMillan Bloedel, as well as working for Ace Hardware Canada. He reports to David Dingwell, regional sales manager, Atlantic. (709-727-5030)

David Sparks has moved over from Giles Tools Agency to Robert Bosch Tool Corp., working for the Dremel and RotoZip divisions, as national accounts manager. In this new position, he reports to Dale Elliott, national sales manager for Dremel and RotoZip … Mike Russell, formerly at Vermont American, has also joined the Dremel and RotoZip team as national accounts manager for the mass merchant accounts. (905-826-6060)

The company, which has operated in the Atlanta market since 1958 and has weathered the market’s warehouse onslaught, generated an estimated $88 million in sales last year, according to Nursery Retailer magazine.

Dèry also stresses that the off-price products that were the company’s mainstay in the early years, have become a small part of Bargain’s overall strategy today, accounting for a mere 20% of sales.

While some were simply tire kickers, others were definitely interested in what they saw, Dèry says. One New Brunswick dealer had already signed up shortly before the show, and he expects another four to sign on before the end of the year.

Customers can set up a registry — which isn’t confined to weddings — free of charge. Canadian Tire handles the gift wrapping for online orders.

In the United States, home improvement dealers have been trying to crack into the gift registry market since the late 1980s. Even Home Depot experimented with the service in the past, most recently through its Villager’s Hardware stores. But now it’s introducing customers to its first-ever online gift registry, which includes 9,000 SKUS of tools, lawn and garden equipment and other home-related merchandise appropriate for special occasions like birthdays, Father’s Day and, of course, weddings.

To encourage registration, Home Depot is offering customers a chance to win everything in their registry, up to $4,500 in value. Customers can enter the contest by creating a personal online gift registry at www.homedepot.com. In May, the dealer will choose a winner from each of three registry categories, including weddings, housewarmings and Father’s Day.

Last year, US$40 billion were spent on weddings in the U.S., US$6 billion of it on gifts bought through registries, according to Conde Nast Bridal Infobank. In Canada, CD$350 million was spent on wedding gifts alone. And maybe it’s just a coincidence, but Home Depot and Canadian Tire are entering this market segment at a time when weddings and marriage are receiving a lot of media attention, and not just because of the gay marriage flap in the U.S. “Significant Others,” a television comedy in which actors play four couples in various stages of matrimony, has become a surprise hit for the Bravo cable channel. A new online magazine, called ElegantTouchesEvents.com, which will target brides whose weddings are in the $100,000 range, is scheduled to launch in June.

TORONTO — Home Depot will open its first “urban” store in Canada when the Park Royal shopping complex opens in Vancouver, probably in October of this year. The store is part of a toney retail development that will include Canadian Tire. The new-format Home Depot will be 50,000 sq.ft., plus a 17,000-sq.ft. mezzanine, making it the first two-level outlet by Home Depot in the country.

That property will likely end up back in the hands of the city.

Now a location in Toronto’s east end, at the Gerrard Square, is one of a few that the company has set its sights on. However, until a deal is signed, no start date for the store will be announced.

An urban store in Calgary has been confirmed though, in the city’s North Hills area. It is scheduled to open before the end of this year.

Home Depot has been experimenting with smaller stores in secondary centers such as Owen Sound, Ont., Penticton, B.C., and Trois-Rivières, Que. But the “urban” concept, which is being tested in the U.S. in Brooklyn and Chicago, reduces store size even more, by eliminating large building materials and commodities and beefing up everyday domestic products like storage, cleaning and décor accessories.

Verschuren says Vancouver could support two, or even three, urban stores. As for Toronto, she notes that downtowners are anxious for a store of their own. “Just find me some real estate,” she quips.

COLOGNE, Germany — Even as it searches for ways to stay ahead of the decay that’s eating at many trade shows — both in this industry and others — the world’s largest hardware show, the Practical World/International Hardware Fair, managed to draw record numbers of people.

Koelnmesse is also looking to forge alliances with organizations worldwide.

One agreement that was somewhat unconventional was its alliance with the National Hardware Show, being held May 10-12 in Las Vegas. Typically, Koelnmesse engages in a financial arrangement with another show, either purchasing it outright or forming a joint venture. For example, PRACTICAL WORLD ASIA represents an agreement between Koelnmesse and the Chinese International Hardware Show, which will host 1,300 exhibitors in 46,000 sq.m. of floor space. More than 40,000 overseas and local trade buyers are expected to visit the show.

The organization sees further opportunity in developing markets such as Eastern Europe to acquire new trade shows.

In the case of the NHS deal, however, the arrangement is much looser, involving joint marketing, promotion and sales. Is it something Koelnmesse will continue into next year, when NHS will be on but Practical World will be in an off year? “It’s part of the contract that we see and evaluate the results of our new co-operation,” said Hans Kampen onsite at Practical World. However, he expects to continue involvement with NHS into 2005.

Practical World is also looking to more co-operation, including from organizations such as Fediyma, the Federation of DIY Manufacturers Associations in Europe. “We’ve had some discussions to move their Congress to Cologne in March [in time for the show], from Brussels,” said Kampen. This year, the Presidents Council hosted a lunch that featured Paul Hylbert, president and CEO of Lanoga Corp., and Ira Kalish, global director for research at Deloitte Services LP.

The Hardlines Industry Reception, held on the first evening of the fair, proved for the fourth year running to be a major draw for top buyers internationally. Hosted by Hardlines and sponsored by Koelnmesse, the Reception attracted senior international buyers from Do it Best Corp. and TruServ Corp., as well as buyers from companies such as Canadian Tire Corp. and Co-opérative Fédérée.

Kampen also deflected concerns that the show has been injured by the defection of the big power tool guys, led by Bosch and Black & Decker, who pulled out of this year’s show at the last minute. He pointing out that 1,900 tool companies were exhibiting this year, including a dozen leading power tool companies.

BOUCHERVILLE, QUE. — When Rona Inc. unveiled a new concept last week for its Renovateur banner, the test store was not a corporately owned “laboratory” store. It was a dealer-owned operation. Louis Turcotte is an independent who owns the newly refitted Renovateur in Boucherville, close to Rona’s head office and distribution centre.

Renovateur, which is being implemented under the Rona Home Centre banner in English-speaking Canada, has a lot of appeal to dealers as a way to improve their front end, appealing to both male and female customers with a blend of big box elements (high ceilings, warehouse-style racking toward the back of the store and in the LBM departments) with the comfort and expertise found in a traditional store.

“Now we have a solution for centres with 25,000-30,000 people, to offer a store with a high level of service combined with a larger selection of goods, all in a presentation that is similar to a big box,” says Sylvain Morissette, director of communications at Rona.

But it’s just one of the ways that Rona dealers are growing their businesses. Roy Perkins, co-owner of the Rona Home Centre in Cornwall, Ont., used the increased value of his shares to buy out his partners, increasing his stake in the business. “I was able to use the equity that I had in my shares to re-invest in my business,” Perkins says.

Lanoga had sales last year of $1.96 billion, 80% of that going to contractors, primarily home builders. These customers, says Hylbert, want reliable delivery of both products and services. “We can develop relationships with these builders, who want consistent programs.”

As a result, he notes, Lanoga’s companies own a lot of the builder business in the West and Northwest, where those stores are primarily located. Lanoga operates under the United, Spenard, Lumbermens, Home and Dixieline and banners.

However, would AHMA consider moving the show to another city? “Absolutely,” says Farrell. “We’re open to investigating other venues.”

For now, though, AHMA and Chicago will continue to work together. In fact, the show’s dates for next year, April 3-5, 2005, are being heavily promoted along with this year’s show, an obvious counter-attack to concerns that the show won’t survive its first year.

EEOC’s complaint, filed in U.S. District Court here, alleges that the retailer denied applicants a job “because of their race.” The complaint identifies Curtis Carter and Tiffany Carter among the applicants in question.

Lowe’s has consistently declined to respond to trade press requests for comment about its operations. But a company spokesperson, Chris Ahearn, said in a statement that Lowe’s has “a deep commitment to diversity,” although she did not speak directly to the EEOC suit.

EEOC stated that it filed the complaint after failing to reach a settlement with the retailer. It is seeking back pay, interest and compensatory and punitive damages on behalf of the plaintiffs.

Lowe’s has encountered similar accusations of racial bias in the past. On Aug. 28, 2003, a law firm in Florida filed discrimination complaints with EEOC on behalf of eight Afro-American employees of Lowe’s store in Winter Haven, Fla., who claimed they were passed over “many times” for promotions in favor of white employees the plaintiffs claimed were less qualified and experienced.

According to Tom Stafford, vice-president hardware and pharmacy for Zellers, “The introduction of a paint mixing service has had a huge impact on the accessories side of the business.” He adds that training staff in the paint department to use the new color-matching system has been an important part of the program rollout.

AJAX, Ont. — ILDC, the Independent Lumber Dealers Co-operative, has added a new member: Star Building Supplies in Winnipeg, Man., becomes the 25th member company in this buying group, whose members represent about $2 billion in sales through 153 stores. Star has one store in Winnipeg, with sales in 2003 of more than $40 million.

ST-LAURENT, Que. — Richelieu Hardware has signed its first U.S. retail customer. The fast-growing cabinet hardware and fastener vendor, based here, has landed an account with Westlake Ace Hardware, the largest single member of Ace Hardware Corp. Based in Kansas City, Westlake has 78 stores, 61 of which will feature Richelieu’s four-foot program of cabinet fittings and fasteners.

COTATI, Calif. — The discovery that a local home improvement dealer was helping to fund an effort to keep a Lowe’s store from opening here has led this city’s Council to request a criminal investigation into whether a local citizen’s group violated campaign disclosure laws. The Council, according to the Santa Rosa Press-Democrat, is asking the Sonoma County district attorney and the state Fair Practices Commission to look into the paperwork of this group, known as Cotati Residents Against B. Last November, Measure B passed by only 34 votes, and allowed Lowe’s store application to move forward. The Press-Democrat reported that Yardbird’s, a local dealer with 10 stores in the area, has been subsequently identified as that residents’ group’s chief financial backer prior to the vote. Yardbird’s reportedly contributed $26,000 to that group’s cause, unbeknownst to voters.

TORONTO — A new finance package from Home Depot Canada is aimed at letting homeowners spend more. The “Home Improvement Loan” is an unsecured line of credit ranging from $3,000-$30,000, that provides six months interest and payment free to purchase materials for repair and renovation projects. But after the six-month period, the account is closed to additional purchases and the customer can choose to repay the loan at anytime or assume fixed monthly payments over a seven-year term at a 15.99% fixed interest rate. The initial purchase must be a minimum of $2,000 and subsequent add-on purchases must be at least $250. There are no administration or application fees and no penalties for prepayment at anytime during the term of the loan.

BARRIE, Ont. — Building materials wholesaler Can-Save will hold its 2004 Buying Expo on June 17, 2004. Due to years of increased attendance, the show will be held off-site for the first time, moving to the Barrie Curling Club. Continuing with tradition, this year Can-Save has booked Canadian blues rocker and six-time Juno Award winner Colin James, for the live entertainment. For more information, contact: Larry Koza 705-722-7283, ext. 2223; email: lkoza@can-save.ca; or Amanda McPhee at ext. 2256; or email: amanda@can-save.ca.

Chicago — The AHMA Hardware Show reports that it was able to register hundreds of international buyers during the recent Practical World/International Hardware Fair in Cologne, Germany. In addition, a number of companies signed contracts to exhibit at the show, scheduled for April 3-5 in McCormick Place. The show announced that it has also secured the endorsement and support of the Worldwide DIY Council, which consists of about 150 manufacturers from the United States and Canada who are active exporters.

Hoffman Hills, Ill. — The chairman and CEO of Sears Roebuck, John Lacey, got a cut in his package based on disappointing results from the giant department store retailer. Although his base salary remained at a paltry $1 million, his bonus was cut in half, to a mere $1.8 million.

COLOGNE, Germany — You know, it was actually a very good show. Many attendees talked about the changes to Practical World, the International Hardware Fair. About how it’s gone from an annual event to every two years. How there are so many Asian companies exhibiting now. Or how that specialty tools show, proposed for Practical World’s off-years, was cancelled.

But the changes are good, whether they all stick or not. The main thing is that the show is making changes. Pro-active ones. By going biennial, it ensures its vitality and importance – before it declines. And sure, there were lots of Asians there, but they were also writing business, plenty of it, with Western buyers. But suppliers from France, Spain, Egypt and the U.S. saw lots of action too.

And was the traffic down? When you’re talking about upwards of 74,000 people — a 10% increase over last year — it’s hard to tell. One North American vendor said he’d seen Canadian Tire and OBI (Germany’s largest DIY retailer) already the first day.

“The challenge for us was and is to position the fair in such a way that it fulfils the requirements of the sectors involved and the changing market conditions,” said Oliver Kuhrt, executive director of Koelnmesse. “The clear increase in visitor figures … confirms that we are now on the right track.”

With the prospect of a two-year wait for the next show, 3,677 companies from 59 countries came to show off their wares at Practical World 2004.

Farrell adds that, along with the leading brands, his show has attracted the support of the buying organizations in the U.S. to attend the AHMA Hardware Show, which now has more than 500 exhibitors. “Anybody in the trade show business knows those are the two factors needed for the success of a show.”

One of the criticisms of the show, when in Chicago, was the high cost of support services. The AHMA is not the only group that has identified that services provided by union labor remain high. Mayor Richard Daley has attempted to initiate changes, even though labor relations is a state-level jurisdiction.

Nonetheless, Farrell is optimistic that changes can be made. “We are working with the city and [McCormick Place] and all organizations to address any negative factors that may exist,” he adds, noting the AHMA has already taken huge costs out of the show. Drayage, the cost of getting a company’s booth and products to its exhibit space on the show floor, was considered outrageously high by many exhibitors, due to union labor. That cost has been absorbed outright by the association, says Farrell.

“We really believe Chicago is the premier trade show venue in the country.”

The stores aim to attract both male and female DIYers, as well as a strong base of contractor business. Dedicated environments within the store are designed to suit different consumer needs. Interior decoration and renovation projects are boutiqued in dedicated sections featuring paint, moldings, lighting, decorative items and related products. Lumber and tools are among the products and services featured at the contractor counter.

“Within the next year, Rona plans to invest about $30 million in building new retail locations,” said Robert Dutton, president and CEO of Rona, in a prepared statement.

Rona will invest more than $125 million over the next few months in the construction or renovation of stores. In addition to implementing the new Rona Rénovateur program, the company will build five Rona Home and Garden big-box stores this year. They will be : in Kitchener-Waterloo and Barrie, Ont.; Regina, Sask.; Richmond, B.C., and in Calgary North. As well, two Rona Building Centres, which cater more to trades and contractors, will be constructed in Peterborough, Ont.; and Calgary, Alta.

A second store will open this Wednesday in Chicago, at the north suburban Gurnee Mills Mall. Three more will open in 2005, and “a more significant number” in 2006 and 2007.

Lacy also disclosed that the company is considering stand-alone Lands End outlets in upscale shopping malls, although he wasn’t specific about Sears’ plans. In existing stores, Sears is dropping computers from its inventory to make more room for larger, pricier televisions and a new line of DVD movies.

Lacy projected that Sears same-store sales in 2004 would be flat to mid single digits.

One of the reasons why Sears wants to start adding more stores again is to maintain its market share in appliances. Alan Lacy, its chairman, conceded that the company was in danger of sacrificing share to Depot and Lowe’s “until we’re in a position to grow our store base more rapidly.”

Some are new dealers, others are existing Home Hardware dealers who have chosen to expand their business. Don Gautreau in Moncton, N.B. will open two Furniture outlets next month. Others, such as Southpark, P.E.I., have expanded with a “store within a store” in his existing Home Hardware Building Centre.

“Dealers have the ability to do more merchandising with Home Furniture because it has more margins,” says Morgan McCabe, merchandise manager for Home Furniture. In fact, he adds, “Our dealers aren’t feeling the impact of Home Depot at all.”

The move into furniture has been a natural one for many dealers, especially those who are already in LBM. The new banner focuses on furniture, both finished and unfinished, as well as heavy appliances, which tie in with building centres that already carry kitchen cabinets.

The Naples Daily News, citing court documents, reported that Home Depot has spent between $1 billion and $2 billion on its nationwide “You Can Do It” ad campaign. Sunshine wants Home Depot to stop using that slogan in all markets, not just Florida, where the Atlanta-based dealer operates more than 120 stores.

In Northampton County, infrastructure improvements that support a Lowe’s regional distribution center there were partly funded by a $1 million block grant that county received. Apparently, the investment is paying off, as the country recently disclosed that the Lowe’s DC has hired 310 people, 198 of whom had previously held low-to-moderate income jobs.

Co-opérative Fédérée also has a 30,000-sq.ft. warehouse, plus another 100,000 sq.ft. of yard, to store lumber and building materials.

The six-year-old ServiceMagic also provides access to real estate professionals, and last October branched out providing connections to pre-screened lenders through a joint venture with Cornerstone Mortgage. ServiceMagic generated $20 million in sales last year.

LONDON, U.K. — Although sales fell 18% to 8.8 billion pounds, Kingfisher Plc, Europe’s largest home-improvement retailer, and third-largest in the world, reported a 35% increase in profits, helped by its B&Q DIY chain in the U.K., following the demerger of its consumer electronics division, Kesa Electricals. Net income rose to 229.6 million pounds ($417 million) in the fiscal year ended January 31, from 170.6 million pounds a year earlier. Kingfisher intends to focus on Europe’s $232 billion home improvement market, which is expected to grow by 20% by 2007. Growth in France is being led by almost doubling the size of its 59-store Brico Depot chain.

MONTREAL — Hardware distributor Sodisco-Howden Group reported a fourth-quarter increase in net earnings of 20%, and an increase year-over-year of 225% over the previous year. During the fourth quarter, revenues totalled $128.7 million, up 2.1% from
the same quarter in 2002. The increase was driven by Ace dealers, whose revenues primarily comprise warehouse hardware sales – Sodisco-Howden’s most profitable segment. The Ace dealers also helped drive full-year revenues to a record $485.4 million, while net earnings totalled $7.7 million.

BOISE, Idaho — Boise Cascade Corp. will sell approximately 79,000 acres of timberland
in western Louisiana for approximately $84 million. The timberlands are being bought up by the Hancock Timber Resource Group, based in Boston, Mass. The deal is expected to close by March 31, 2004. Boise continues to own or control more than two million acres in the United States, including about 610,000 acres of timberland in Louisiana.

TORONTO — Canadian Tire is unveiling today a new in-store gift registry service. The registry, already a feature on CTC’s home page, will launch next Saturday, March 27.

Garry Fairbrother will retire from Federated Cooperatives on April 30, 2004. He worked for Fedco for 35 years, including as manager – general merchandise for the past 20. (A dinner and roast in his honor will take place April 3, during the Federated Coop’s spring dealer show in Saskatoon. For more info, contact: Vaughn Crofford at the Canadian Hardware Housewares Manufacturers Association at (416-282-0022, ext. 30; or 1-800-488-4792).

TruServ Canada has promoted Ralph Dunham, formerly district manager for Northern Alberta, and a 21-year veteran of the company, to the position of regional manager, sales, operations & member relations (East). He reports to Ray Falkenberg and will relocate to TruServ’s Kitchener office. (519-893-8383)

In addition, Georgia-Pacific will enter into a five-year agreement to keep selling its manufactured structural panels, lumber and other building products to the spun-off distribution business.

The distribution division had net sales last year of $4.3 billion through 63 warehouses in the U.S. and one location in Canada. It sells some 10,000 products across 14 categories, including structural panels, hardwood plywood, roofing, insulation, metal products, lumber, paneling, vinyl siding and particleboard.

All current employees of the distribution business, including the current management team led by Charles McElrea, president — building products distribution, are expected to join the new company. Closing, which is expected to occur during the second quarter, is subject to customary conditions.

“This agreement is yet another major step forward in reducing debt and sharpening the focus of Georgia-Pacific,” said Pete Correll, Georgia-Pacific’s chairman and CEO in a prepared statement.

But knobs and pulls represent just one area of focus for the 298-store mass merchant, which is owned by Hudson’s Bay Co. It de-listed about 10% of its hardware assortments, adding back in another 1,000 or so SKUs, increasing the total hardlines department to about 5,000 items. By re-aligning assortments, says Stafford, the retailer has maintained the same footprint in its stores for the department, relying on techniques such as sliders and shorter pegs to maintain facings.

Stafford says that Zellers learned from other divisions within HBC, picking up tips especially from Home Outfitters, the fast-growing chain of housewares, bedding and seasonal stores.

“If you want a picture hanger, we’ve got it. If you want a screw — they’re all there,” Stafford notes. But you’ll no longer find a full array of items such as hammers. Instead, a few all-purpose hammers are now available. Brand names include Stanley hand tools and measuring tapes, and Black & Decker power tools.

A similar metamorphosis has occurred in the automotive department. Where once a full array of tune-up and repair items such as oil filters was available, the emphasis is now on car décor and accessories, with steering wheel covers and conversion kits for TVs exemplifying the department. “Now,” says Stafford, “you’ll find things to make life inside the care more convenient.”

The automotive department also reflects more emphasis on seasonal needs, with wiper blades and a full line of ice scrapers, while summer assortments include a new line of Coleman power washers.

Although Zellers reported a decline in its hardlines sales in the fourth quarter of 2003, home décor made gains during the period. The hardlines side, overall, says Stafford, is on the rise, unlike the softlines.

The trade magazine reports that Home Depot will provide vendors with a schedule in the third quarter of this year about when it expects suppliers in specific categories to be using UCCnet. Healy says, and about 1,000 of Home Depot’s 5,000-plus suppliers are among them.

Home Depot Canada, in line with the U.S. head office, issued a letter to suppliers last fall, demanding that its suppliers register with UCCnet’s Canadian counterpart, ECCnet, before October 15, 2003. However, so much confusion surrounded the process, and ECCnet’s role in the process, that the deadline was extended into 2004.

A major component in Home Depot’s store productivity strategy this year has been to improve the fluidity of its back-end receiving. This summer, the retailer plans to begin using wireless devices that can capture information about products as they are received at its stores. Information about returns and product movement will also be accessible to suppliers, with the goal being improved synchronization and transparency between vendors and the stores.

Product listing through a data sync registry such as UCCnet and ECCnet is much more standard for other industries, especially grocery. But suppliers are wary of benefits, and many consider the program just one more way in which streamlining of a retailer’s logistics falls on the backs — and pocketbooks — of the vendors themselves. However, Wal-Mart has determined that adoption of data sync will provide savings that reach into the billions of dollars.

Cappiello says the convention will include a 6,400-sq.ft. area for new products that can accommodate two demonstration areas. He also plays up the show’s educational program, which will include 15 “tracks” and 60 sessions. (Hardlines will participate with two sessions on key retailing perspectives internationally.)

NHS has commissioned research that’s being conducted by the Home Improvement Research Institute and will be presented at the show, which examines the extent that the sales of existing homes affect purchases of home improvement products in different categories.

“This program reflects regional needs,” says Normand Dumont, senior vice-president merchandising at Rona Inc. “Rona has the ability to give what the customer expects in each market, and paint is one area that has high brand recognition.”

Dumont, along with Pat Bennett of Rona and David Haigh, general manager — central region for Benjamin Moore, and Doug Funston, regional and marketing manager — central region, were on hand last Thursday for an official “opening” of the Signature Boutique at Rona Lansing’s Lambton store in Toronto’s west end. Situated at the back of the store, laminate hardwood has been installed on the floor, while lifestyle murals hang atop smartly faced up, consumer-friendly paint lines that represent a newly expanded palette of colors.

Farther south, however, Lowe’s has encountered some opposition to the construction of an $80-million distribution center in Plainfield, Conn. Union contractors have been staging protests outside nearby Lowe’s stores because Lowe’s general contractor is using non-union labor from out of state on that job.

Meanwhile, Home Depot opened a store on January 22 in Brattleboro, Vermont. At 65,000 sq.ft., it’s among the smallest in the chain. However, the store, the third in the state, is close to existing stores, and raising the ire of locals who are resisting the big box incursion. A fourth store in Vermont is scheduled to open in Bennington sometime in the future.

“I’m very disappointed that this has been done,” says Bob Elliott, head of the Canadian Retail Hardware Association, which owns CHS. “We all try and stay away from each other’s dates, to make a schedule that makes sense for everybody in the industry. [This overlap] makes it tougher for retailers and exhibitors who might want to go to both.”

Kimberley Clarke, the new show manager of the LBMAO’s Winter Buying Show, admits there’s a conflict, but only in the dates. CHS, she points out, is attempting more of a conference approach to its event. The dates chosen, she adds, were based largely on availability of the venue, London’s Western Fairgrounds.

“We don’t see a huge crossover in traffic. We’re targeting lumber dealers — it’s a buying show. And where there’s a crossover, retailers will come to both shows.”

Clarke replaces Peter McLean of the show management company McLean Hart as show manager. She was hired — on a contract basis — because of her industry experience, which includes sales and marketing roles at both Dimensions Retail Systems and LBMX, and her location, Clarke says. She lives in London, and has lots of contacts within that city to help her with the show from a planning perspective.

In an effort to broaden the appeal of its hardware department, Sears has added the well-known names to cater, not just to DIYers, but to professional builders and renovators. It’s also expanded the assortments in a number of categories, including drills, saws, sanders, routers and grinders.

“We have customers who are regular home owners, but we also have the Craftsman Professional series, so Craftsman spans the homeowner and the professional,” says Vincent Power, a spokesperson for Sears Canada. He adds that the appeal of Craftsman celebrity spokesperson Bob Vila increases the appeal of the Craftsman line.

COLOGNE, Germany — With the Cologne International Hardware Fair/Practical World moving to a biennial event, the owner of the show, Koelnmesse, had originally planned a specialty tools show in alternating years. Now that event, called Tools Cologne, has been cancelled, in favor of devoting more energy to the Practical World Show, which actually starts today and runs until March 17. The next instalment of the show will be in 2006.

PALM DESERT, Calif. — Although data warehousing is still considered by many as a discretionary program that’s hard to measure, Ace Hardware Corp. has managed to boost the size of retail purchases through one of its loyalty programs by $1.03 per transaction, and increased the customer response to marketing campaigns through data reuse. The company shared its successes at an IT conference by ComputerWorld that was held here recently.

ST. JACOBS, Ont. — Canada Post will issue a new 49-cent stamp on April 19 honouring the 40th anniversary of the founding of Home Hardware Stores Ltd. In 1964, 128 independent Ontario hardware retailers purchased Hollinger Hardware of St. Jacobs, Ont. This resulted in the formation of a dealer-owned hardware co-operative that has since grown today to more than 1,000 dealers and almost $4 billion in retail sales.

CALGARY & TORONTO — Shell Canada Products have made a deal to sell 10 Shell retail locations to Canadian Tire Petroleum. The gas stations will be re-branded and operated by Canadian Tire. The sites, which are located in Ontario and western Canada, are slated for physical conversion beginning in May. The purchase is part of Canadian Tire’s efforts to grow its network of gas stations through both acquisition and increased sales from existing sites.

Kingfisher has been aggressively repositioning itself in recent months, determining only to remain in markets in which it can be the number one player. That meant pulling out of countries such as Poland, and also Canada, where the Castorama unit owned 20 Réno-Dépôt big boxes. Those were subsequently sold to Rona Inc.

Kingfisher also demerged its electrical retail business last year so it could concentrate on the retail home improvement market. Since the demerger, Kingfisher has continually been plagued by rumours that it could be a target for a takeover by Home Depot, however, even Home Depot’s chief officer, Bob Nardelli, has admitted the weak dollar in relation to the pound sterling would make any such takeover highly unattractive at this time.

Weyerhaeuser’s legal woes are not over yet, though. In its statement, the company said it’s a defendant in two similar antitrust cases scheduled to go to trial on May 11 and June 1, respectively. In addition, the supplier has filed an appeal with the U.S. Court of Appeals for the Ninth Circuit in an attempt to overturn a verdict against it in another alder-related case. It took a first-quarter charge last year of $52 million for that case, according to Reuters.

With those sales spread across 450 stores and 12 component plants in 34 states, 84 Lumber is known for its smaller, contractor-oriented outlets, However, five of them managed to hit $20 million in sales in 2003. “Our associates are a determined group of people who always go above and beyond the goals and expectation set,” said Hardy-Magerko, who often cites the importance of 84’s 6,500 employees when talking about her company’s successes.

Founded by Magerko-Hardy’s father, Joe Hardy, in 1956 in this town, 84 Lumber plans to open almost 30 new stores and six component plants in the coming year.

Bob DeRodes, Home Depot’s chief technology officer, told analysts that, through mid January, 120 million purchases had been transacted through the self-service terminals, and that Depot had been able to reduce its checkout queue time during weekends by 40%.

Annette Verschuren, Home Depot Canada’s president, adds that 30% of all transactions at Home Depot stores now go through self-service checkouts, and she has been looking forward to having the technology in her own stores. “Our front end has been strong, and the reception of our cashiers has been exceptional” to the company’s Front End Accuracy & Service Transformation, a program known internally as FAST, that’s aimed at improving cashier productivity and getting shoppers out the door quicker.

“We’re trying to keep our business local,” Frank Auria, Chase-Pitkin’s vice-president merchandising, told the Syracuse Post-Standard. “We figure it’s a great partnership, us offering our customers a value proposition when purchasing a new kitchen. The next step is buying appliances. We figure to capture the appliance-buying business by turning it over to the local expert.”

A spokesperson for Chase-Pitkin told Hardlines that, while the program is available to customers at all of the dealer’s stores, it is being marketed primarily at the nine stores with kitchen design centers.

Currently, Sodisco-Howden is in a quiet period, awaiting the results of an evaluation by an international finance company, N M Rothschild, that will make recommendations on the future of the company. In the meantime, some uncertainty hangs over the fate of Sodisco-Howden.

Nevertheless, says Wintermans, dealer loyalty is strong and so are the company’s financials. “We’re up significantly in January to February. We’ve started off the year with a bang.”

Sodisco-Howden also continues to keep ties with its key customers, the LBM buying groups. In January, the company signed a major new supply agreement with Western buying group Tim-BR-Marts Ltd., and says Wintermans, the members of AWARD in Atlantic Canada who have signed on with Atlantic Distribution Ltd., based in Halifax, “are still maintaining ties with Sodisco-Howden Group.”

Sodisco-Howden owns the license to Ace Hardware in Canada, and that program has become the option of choice for Sodisco-Howden’s dealers who currently operate under the Do-it center banner. That program is being phased out, and Wintermans says most of his Do it center members are switching to Ace. “The exception is Newton Enterprises, which went with Rona, but nobody has followed Newton’s lead,” he notes. Newton is a two-store chain with a mix of DIY and pro customers about 45 minutes outside of Winnipeg. It became the first independent dealer in Western Canada to sign on with Rona.

“When you want to be a true independent, going with Rona or Home Hardware is not the way to go,” he adds.

That campaign was funded by Pacific Lumber.

In a March 2003 filing, Gallegos accused Pacific of lying to state regulators during a highly controversial land-use deal four years earlier. The deal ended up pitting environmentalists, who were trying to preserve ancient redwoods, against the producer and local workers who depend on timber harvesting for their livelihood. According to the Los Angeles Times, prosecutors contended that Pacific Lumber fraudulently harvested about $40 million worth of trees each year — on 211,000 acres supposedly protected by logging restrictions.

Pacific Lumber and its corporate parent, Houston-based Maxxam Inc., paid $8 a signature to get the recall on the ballot. The Times reported that the timber company and its contractors donated more than 80% of the money — $266,000 disclosed so far — to the marketing campaign to vote Gallegos out.

The D.A.’s supporters raised $180,000 and put together teams of volunteers to counteract the ad campaign. “This recall election wasn’t about me, it’s about a corporation trying to control politics here in Humboldt County,” said a triumphant Gallegos. “This is about a defendant getting rid of the prosecutor.”

The Asbury Park Press reported that the building’s landlord, Starwood Heller Seaview LLC, had issued Lowe’s a long-term warranty against major defects. The newspaper also reported that the township knew about the cracks last March, when the store opened.

The 123-acre landfill at one time was on the U.S. government’s Superfund list of potential hazardous waste sites. It was removed from that list in 1991. Lowe’s operates four other stores within the vicinity of its Ocean Township unit.

The show will stay in London at least one more year, but may begin moving locations after that. Other cities under consideration are Kingston, Ottawa, Peterborough, and maybe even Toronto, though out on the edge of town, near the Toronto Airport, says Campbell.

Regardless of where it ends up, suppliers appear to be supportive. “We’ll definitely be back next year,” says Covin.

In addition, the company plans to leverage its famed private brand, President’s Choice, so common on higher-end foods, in new ways. Four President’s Choice car washes are scheduled to open in 2004. “President’s Choice is the most important brand we’ve got,” he said.

SURREY, B.C. — Irly Distributors has been quietly gaining ground in Western Canada, adding six new dealers over the past two years. The latest to join, Barriere True Value in Barriere, B.C., like about half of Irly’s membership, are co-bannered with True Value. Barriere becomes the 44th shareholder in the group, which represents more than 50 stores through British Columbia, the Yukon and Alberta, and prides itself on rarely seeing a member lost to another banner.

BENTONVILLE, Ark. — Wal-Mart Stores has bought a Brazilian supermarket chain from Dutch retailer Royal Ahold NV. Bompreco, which has 118 stores. The purchase cost the world’s largest retailer $300 million and gives Wal-Mart more presence in the northeast of Brazil. The Bompreco stores raise the company’s network of outlets in Brazil to 143.

HOFFMAN ESTATES, Ill. — Sears Roebuck reported total sales for February declined about 0.5%, to $1.74 billion from $1.75 million in the year-earlier period. Same-store sales increased only 1.1% in February, although sales were strong in lawn and garden products, power tools and fitness equipment. This helped to counter sales on the apparel side, which were flat overall.

TORONTO — The Canadian Society for Training and Development each year recognizes the country’s best training programs with Ontario’s Top Training Excellence Recognition Awards. This year, the top award in the most competitive category — Best External Training Program — was awarded to Benjamin Moore & Co. for its Training Triad of courses, designed to raise standards of performance in the retail environment.

DUNCAN, B.C. — Still battling under bankruptcy protection, Doman Industries has received a stay of proceedings until April 5, 2004 from the province’s supreme court. All six of the company’s sawmills will remain in operation, at least for the short term, according to the latest report from Doman’s auditor, KPMG. However, the Port Alice pulp mill remains closed, and efforts are being made to find a buyer separate from the rest of Doman’s operations.

BALTIMORE, Md. — A shipment coming to Ace Hardware‘s distribution center in nearby Loxley had a rare boa constrictor trapped inside. No zoo wanted the two-foot-long critter, so it’s going home. The snake, which came in a shipment of pallets being returned from Ace Hardware dealers in Puerto Rico, can grow up to six feet long and belongs to an endangered species indigenous to that Caribbean island.

LONGUEUIL, Que. — Sico Inc. enjoyed stronger sales in 2003, thanks to its acquisition of Para Inc. in May 2003, along with growth in its architectural division. Sales totalled $283.6 million, compared with $257 million in the year-earlier period, an increase of 10.4%. However, profits slipped, with net earnings down to $11.2 million for fiscal 2003, compared with $12 million. For the fourth quarter, the company posted a net loss of $883,000 on sales of $58.1 million, compared with a net profit of $20,000 on sales of $48.7 million a year earlier.

Chad Murray has joined the sales team of Quest Plastics Ltd. (905-270-4438)

Black & Decker is reorganizing its executive team in an effort to sharpen the distinction between its two top brands, Black & Decker and Dewalt. Thomas D. Koos has been named group vice-president and president of the Black & Decker Consumer Group. Koos joined the company in 1999 and has served as president of Black & Decker consumer products in the U.S. since 2000 … John W. Scheich has been appointed group vice-president and president of the Dewalt Professional Group. Scheich joined Black & Decker in 1980 and had served as president of Dewalt Professional Products in the U.S. since 1999 … Ian Carter, who was most recently head of the power tools and accessories business in Europe, has been named president for Europe and Asia, which includes Australia and New Zealand … Edward J. Scanlon, previously in charge of North American commercial operations, has been named president of commercial operations for North and South America … Paul F. McBride has been appointed to the newly created post of senior vice-president for human resources and corporate initiatives. He succeeds Leonard A. Strom, the previous senior vice-president of human resources, who has retired … Christopher T. Metz has been named group vice-president and president of the hardware and home improvement group. He previously headed up the Kwikset security hardware business.

Job creation fell short of expectations in February, as the unemployment rate remained unchanged at 5.6% seasonally adjusted and the workforce increased by only 21,000 new positions. About 8.2 million people were unemployed in February.

Americans are starting to feel better about the financial situations, reflected in a rebound in consumer confidence over the past month. The AP-Ipsos consumer confidence index rose to 97.7 this week. That’s an improvement from a reading of 91.7 in early February when consumer confidence took a hit.