St. Jacob’s, ON — Pop star Avril Lavigne took time out of her North American tour last week to visit Home Hardware‘s Spring Dealer Market. There, she presented a cheque for $35,000 to the Hospital for Sick Children Foundation. The funds were raised from the sale of Napanee Home Hardware t-shirts, made famous by Lavigne’s appearance on Saturday Night Live back in January.

Toronto, ON — Canadian Tire Corp. has launched a line of premium tools and accessories aimed at DIYers and tool enthusiasts. Called Mastercraft Maximum, it is a step-up line to CTC’s existing Mastercraft house brand. Featuring more than 500 products, the new line extends across a wide assortment of product categories, including portable and stationary power tools, power tool accessories, carpentry hand tools, mechanics’ tools and tool storage.

The Mastercraft brand first appeared in Canadian Tire catalogues in 1946 and has since become one of Canada’s most recognizable private labels. The lines are now in all 451 of Canadian Tire’s stores across the country, but will receive a big promotional push, including flyer presence, running up to Father’s Day in June.

Exactly a year ago, Canadian Tire employed a similar strategy on the housewares side, introducing Persona, a private-label brand of cookware and small kitchen appliances. The line features more stylish elements, better quality – and, of course – a higher price point.

The news comes only two weeks after another sponsoring association, the Lumber and Building Supply Dealers Association of Ontario, announced its intention to pull out of CHS and form its own LBM showcase. The “Winter Buying Show” will take place in London, ON February 7-8, only one week after the Canadian Hardware Show.

Under the partnership with the PDRA, the show created a décor showcase, and this feature will remain in place at next year’s show. In fact, CHS has been quick to assure the industry that Décor Focus, its pavilion devoted to paint, home décor and home interiors, will be part of its show in 2004.

However, it won’t have the imprimatur of the paint dealers. The PDRA’s new event, a conference with emphasis on dealer education and training, will take place March 19-21 near the Toronto Airport, and compete against CHS to attract dealers.

Despite the décor showcase, says Nick Cichielo, executive vice-president and vp of sales for the PDRA, “the format wasn’t addressing the needs of our dealers. We feel as an association we have to create an event which is more geared to education and workshops.”

The PDRA, based in St. Louis, MO, has 460 members in Canada.

A week earlier, the company reported that Riverside Group sold its outstanding shares of Wickes to Imagine Investments, a Dallas-based holding company, for the assumption of US$13.9 million in debt.

Meanwhile, Wickes faces delisting on Nasdaq since the bid price of its common stock has closed at less than $1.00 per share over the previous 30 consecutive trading days. As a result, it has failed to comply with marketplace rules requiring a listed company to get its stock price up within l80 days.

The deadline for Wickes to comply with the ruling was April 9, 2003, but since it meets the initial listing requirements for the Nasdaq SmallCap Market, the company will now be provided an additional 180 days, or until October 6, 2003, to regain compliance. If, at anytime before that date, the bid price of Wickes common stock closes at $1.00 per share or more for a minimum of 10 consecutive trading days, its compliance status will be restored.

Toronto, ON — Sales for Sears Canada in its first quarter were $1.282 billion, down 8.7% from the same quarter last year. Merchandise sales decreased 12.7% and same-store sales fell 14.1%. Net earnings for the first quarter reached $11.4 million, a healthy swing from the net loss of $115.9 million it suffered in the same period last year. However, last year’s results included an after-tax expense of $124.3 million, primarily related to the conversion of Eaton’s stores to the Sears banner. Excluding these non-comparable items, operating earnings in the quarter were $7.1 million, compared with $8.4 million last year. Sales were also affected by substantially lower seasonal inventory and unusually bad weather throughout much of Canada.

Toronto, ON — Home Outfitters opened its eighth Toronto store and its fourth in Calgary last week. Another opening slated for Laval, QC will bring the chain’s total number of outlets in Canada to 40 by month’s end. A division of Hudson’s Bay Co., Home Outfitters was launched in 1999 with three stores in the Greater Toronto. The 34,000-sq.ft. units break out the housewares and home décor assortments of The Bay and Zellers into one focused format.

Wilkesboro, NC – Lowe’s Cos. increased the bonus of its chairman, Bob Tillman, by 57% in 2002. The increase, based on the company’s strong performance, will result in Tillman getting a bonus of US$3 million for the fiscal year ended Jan. 31. That’s up from US$1.9 million.

Vancouver, BC – West Fraser Timber Co. had first-quarter earnings of $11 million on sales of $385 million. That’s a swing from earnings of $27 million on sales of $379 million in the first quarter of 2002. EBITDA was $41 million, or 11% of sales, compared with $86 million, or 23% of sales, in 2002.

San Marcos, TX – Next winter, McCoy’s Building Supply Centers will open a 20,000-sq.ft. store in its headquarters city that will replace a store McCoy’s built here in 1986. But opening new stores is not driving this dealer’s business strategy anymore. In fact, McCoy’s – one of the 20 largest home improvement retailers in the U.S. – has been steadily trimming its store count from 1999, when it peaked at 110 units. Instead, the company has been upgrading its existing units, including everything from repairing cracks in the parking lots to buying new delivery trucks.

Frankfurt, Germany – Hornbach Holding AG increased sales for the year ended February 28 by 14.4% to €1.70 billion, up from €1.49 billion a year earlier. Net sales at its Hornbach-Baumarkt-AG subgroup rose by 13.1% to €1.63 billion, up from €1.44 billion a year earlier. Hornbach plans to open up to nine of its DIY superstores this year, and sales are expected to reach €1.9 billion, surpassing the negative 2% growth anticipated for the German home improvement sector. Hornbach ended the fiscal year with 102 retail outlets, comprising 78 in Germany, 10 in Austria, seven in the Netherlands, four in the Czech Republic, one in Luxembourg and two in Switzerland.

Brookfield, WI – Atlas Copco, the parent of Milwaukee Electric Tool Corp., has announced the acquisition of DreBo Werkzeugfabrik GmbH, a German manufacturer of carbide-tipped masonry drilling products. DreBo has sales of €25 million and 160 staff. Details of the acquisition were not disclosed, but the company’s distribution centre in the U.S. was included in the deal. According to David Aubel, general manager of Milwaukee in Canada, business will remain more or less unchanged north of the border, but he does anticipate that, long term, the company will be in a more competitive position, especially in light of the production of carbide that DreBo will provide.

Newton, IA – Maytag had first-quarter consolidated sales of US$1.136 billion and operating income of US$68.2 million, compared with 1Q results in 2002 of US$1.178 billion in consolidated sales and operating income of US$107.2 million. The closing of a manufacturing plant and product recalls affected results. Restructuring will result in 500 job cuts and other changes that are expected to result in US$20 million in savings per year.

Newport Beach, CA – Water Pik Technologies had first-quarter sales of US$55.4 million, down from US$57.0 million in 1Q 2002. The loss from continuing operations was US$1.8 million, compared with income of US$0.4 million a year earlier. The company suffered a net loss of US$1.8 million, versus a loss of US$0.3 million in 1Q 2002.

Atlanta-based Home Depot currently operates 53 Expos. Its home decor format showcases interior design merchandising such as kitchens, baths, floorcoverings, lighting, appliances, and related hardlines, all displayed in room-like settings and sold mostly as special-order installation projects.

News of Verschuren’s expansion of duties was first reported in the Financial Post. Verschuren was unavailable for comment when called by Hardlines.

David Sandor, Home Depot’s director of public relations, says Verschuren will split her time between Atlanta and Toronto while the retailer searches for a permanent Expo president to replace Bob Wittman, whom Depot said had retired as of April 7.

Why the 44-year-old Verschuren? “It’s the logical choice,” asserts Sandor. “She’s done an excellent job in her current role, where she’s generated sales and has taken a leadership position.” Before joining Depot in 1996, Verschuren was president of crafts retailer Michael’s of Canada, whose merchandise mix includes some home decor products. In fact, Home Depot’s first “female-friendly” stores were developed under Verschuren’s aegis in Toronto. That format creates more showroom space within the warehouse for home decor, flooring, appliances, kitchens and lawn and garden.

During the six years that Verschuren has run Home Depot Canada, the division has expanded from 22 stores at the end of fiscal 1996 to 89 stores in fiscal 2002. Last year, the division increased its revenue by an estimated 17% to $3.9 billion. Home Depot Canada is expected to open at least 12 new stores this year.

Wittman, a longtime industry vet whose extensive retailing background included stints at Grossman’s, Home Quarters Warehouse and Orchard Supply Hardware, was a member of the team that purchased 75% of Aikenhead’s Home Improvement Warehouse in1994 and converted that seven-unit chain into Home Depot Canada, which it now owns outright. After rejoining Depot, Wittman’s duties included supervision of the chain’s ill-fated Villager’s Hardware experiment.

Speaking by telephone from his home in Boston, Wittman declined to comment about his decision to retire or his tenure at Home Depot except to say that “I’m very satisfied and proud of my career and my accomplishments, but it was time to move on.” He said he was looking forward to “getting reacquainted” with his family, and having more time for golf and tennis.

Once Wittman’s replacement is found, says Home Depot’s Sandor, that person will continue to work out of Atlanta but report to Verschuren, who will remain in Toronto and continue to run Home Depot Canada. Previously, Wittman had reported to Home Depot’s CEO and chairman, Robert Nardelli. Expo’s merchandising team will also continue to operate from Atlanta.

Verschuren takes over Expo at a time when its expansion philosophy is tacking a new course. Prior to the arrival of Nardelli in late 2000, Home Depot planned to have opened at least 200 Expos across North America by 2005. Now, the retailer wants to put Expos in the 100 largest metro markets, but has no stated timetable for doing so. The company has opened an Expo in Phoenix so far this year, and will open one in Cleveland later in 2003. Beyond that, the company has not revealed Expo’s longer-range growth plans.

When asked whether Expo will finally make its debut in Canada, now that Verschuren is in control, Sandor responded “you never know,” although Verschuren herself has stated in other interviews with Hardlines that she would rather see the bugs get worked out of the format in the U.S. before introducing it here.

Mississauga, Ont. — Following last week’s announcement that the association of Ontario lumber dealers will quit the Canadian Hardware and Building Materials Show and form their own show, CHS has been quick to reaffirm its commitment to serve the LBM industry.

“As our name suggests, we will continue to have a strong lumber and building materials component to CHS,” said Maura Bella, CHS director, in a prepared statement.

CHS, which is owned by Canadian Retail Hardware Association, has relied on the involvement of a number of associations in recent years. Its most prominent ally has been the Lumber and Building Materials Association of Ontario, which joined CHS in 2000 after the demise of its own event, the Canadian Home Centre Show.

In fact, the LBMAO’s contract with CHS continues through the 2004 show, which will take place in Toronto February 1-3. Even though the deal involves a financial stake in the show for the LBMAO (but no equity), the association will hold its own show in London, ON one week later. Bob Elliott, president of the CRHA, admits the LBMAO was not entirely happy with the terms of the agreement, but says his association had left the door open for renewed negotiations and is “disappointed the LBMAO has decided to go on their own.”

The reasons to hold only one show instead of two, Elliott adds, will keep costs out of the industry and reduce expenses to both exhibitors and delegates.

WILKESBORO, N.C. — On April 15, the U.S. Environmental Protection Agency will honor Lowe’s Home Improvement Warehouse as its Energy Star Retail Partner of the Year.

Since 2001, Lowe’s has participated in the EPA’s Energy Star program, which means its stores, which number nearly 860 units, promote the sale of products that protect the environment through energy efficiency. As the second-largest appliance retailer behind Sears, Lowe’s has been particularly active using Energy Star in its advertising of major appliances.

“We believe that our role in promoting Energy Star … has a significant and positive effect on the environment and the lives of our customers,” says Dale Pond, Lowe’s senior executive vice-president merchandising and marketing, in a prepared statement.

This year, Lowe’s has committed to increasing its sales of Energy Star-qualified appliances by 20%, and has stepped up its employee training related to that program.

These cutbacks are part of a restructuring plan, approved by Stanley’s board, known internally as “Operation 15,” according to a filing Stanley made to the Securities and Exchange Commission. The company’s goal is to increase its operating margins to a 15% “run rate” by the fourth quarter of this year. John Trani, Stanley’s chairman and CEO, said that this restructuring would change “the DNA of our company.”

Operation 15 calls for the following measures:
– More than 1,000 of Stanley’s employees are being laid off, most of them immediately;
– The company will liquidate and close its Mac Direct division, which supplies tools through a mobile direct-supply network. Stanley will also try to boost demand for its Mac Tool line of mechanic’s tools;
– Five warehouses and four plants will be closed, although no specifics were revealed at press time;
– Two long-time Stanley executives – vp-marketing Ken Lewis and vp-corporate planning and development Paul Haviland – are leaving the company. Each division will now handle its own marketing;
– The company is currently negotiating with financial institutions to buy back US$100 million of its stock. It plans to buy back another US$113 million in the coming months. This would reduce the company’s outstanding shares by 9%.

Stanley has stated that these reductions would eventually save it US$85 million annually. However, in the shorter term, the company said its earnings per share for the first quarter of this year would fall between 33 and 36 cents; Wall Street was expecting the range to fall between 44 and 46 cents.

For the past several years, Stanley has been restructuring parts of its operations and laying off its workforce. Last year, it reported modest increases in sales and net income.

Vernon Hills, IL — In a deal worth about US$13.9 million, Wickes was sold last week to a Dallas-based venture capital firm, Imagine Investments. The deal transfers all of the ownership of the company held by the Riverside Group to Imagine Investments, and manages to reduce Wickes’s debt load to US$95 million. The 59-store building materials company’s troubles can be traced back to the bankruptcy of its parent company back in 1988. When the building materials unit, Wickes Inc., went independent it got saddled with huge debt. The deal follows a previously announced intention by Bradco to buy up its remaining shares in Wickes for about $9 million.

Calgary, AB — Costco, which has been operating in Calgary since 1986, opened an expanded relocation in the southeast end of the city. With an additional 20,000 sq.ft., the location now totals more than 148,000 sq.ft. with some 4,000 SKUs and is the biggest of Costco’s 61 stores in Canada.

Ottawa — The Forest Stewardship Council and the accredited certifier SmartWood have awarded an FSC certificate to Tembec for its forest resource management practices in the five million-acre Gordon Cosens Forest of Northeastern Ontario. Approximately four times the size of Prince Edward Island, the Gordon Cosens Forest is the largest FSC-certified forest in Canada, one of the largest in the world, and the first boreal (northern) forest to be certified in North America, says Tembec.

Delson, QC — Goodfellow Inc. suffered a loss of $403,000 for the second quarter, ended February 28, 2003, compared with a 2Q profit of $111,000 in the previous year. Sales, however, were up 12.3% to $114 million over last year’s $101 million. For the first six months, net earnings were $3,000, compared with $1.3 million in the first half of the previous fiscal year. Sales rose about 14.7% to $242 million this year, from $211 million a year earlier.

Calgary, AB — Liquidation World Inc. had 2Q revenue of $38.6 million, an 8% drop from $42.0 million during the corresponding period in 2002. On a cumulative basis, revenue for the first two quarters of 2003 totaled $87.7 million, a 2% decrease from $89.6 million during the 26 weeks ended April 7, 2002.

Issaquah, WA — Costco Wholesale Corp. had net sales of US$3.88 billion for the five weeks ended April 6, 2003, an increase of 12% from US$3.46 billion in the same five-week period of the prior fiscal year. For the first 31 weeks of its 2003 fiscal year ended April 6, 2003, the company reported net sales of US$24.33 billion, an increase of 9% from US$22.36 billion during the comparable period of the prior fiscal year. Same-store sales March were up 8% and year to date were up 4%.

Montreal, QC — Domtar Inc. has found a buyer for its Daveluyville remanufacturing facility, which was closed on November 29, 2002. The operation has been sold to Denis Villiard of Sorel-Tracy, QC. Mr. Villiard has split the transaction into two companies: Séchoirs Daveluyville Inc., which will acquire all the land, buildings and dryers, and Pinextra Inc., which will acquire the edge-glued panel production equipment.

New York, NY — Black & Decker expects to save US$100 million annually as a result of consolidating most of its manufacturing activity into three countries outside the U.S. The Maryland-based supplier, which generated nearly US$4.4 billion in sales and US$230 million in net income in 2002, ultimately intends to generate 75% of what it sells out of two plants in China and one in Usta na Labem, Czech Republic. The restructuring is scheduled for completion by 2004. B&D has been working to recapture the US$30 million in business it lost when Home Depot decided to drop B&D’s Price Pfister faucet line from its stores in the Eastern U.S. last year.

Vancouver, BC — Taymor Industries Ltd. has donated more than $30,000 in bath accessories to Habitat for Humanity Toronto. The donation will provide Habitat with enough towel bars, robe hooks, and toilet paper holders to outfit more than 150 homes in the Greater Toronto Area.

Carl Durst has joined Century Vallen Industrial Supplies as territory manager for the Greater Toronto Area, effective April 21. (905-571-6161)

In 2004, the Lumber and Building Materials Association will establish a show on February 7-9, just a week after CHS. The show will take place in London, ON at the Western Fair grounds, two hours southwest of Toronto.

The LBMAO joined forces with CHS’s owner, the Canadian Retail Hardware Association, after the demise of its own event, the Canadian Home Centre Show. That show took place annually in November at the International Centre near the Toronto International Airport.

The LBMAO’s challenge, then is to avoid the problems that plagued both its own erstwhile show and CHS itself. Therefore, a strong focus is being placed on getting Ontario dealers out to the new event and getting suppliers to offer substantive show specials.

“We’re going to take it out of the GTA,” says Dave Campbell, president of the LBMAO. “We need to reinvent our approach to the show and get more grassroots. One of the biggest complaints we hear from both our suppliers and our dealers is the cost of the show in downtown Toronto.”

Although he admits that much of that high cost is a perception, he’s confident the London location will work for a number of other reasons, as well. A strong base of dealers is located in that part of the province and the LBMAO is actively developing incentives to get dealers from Northern and Eastern Ontario to attend, as well.

Instead of resurrecting a November date, the new show will take place in February because suppliers will have their booking programs ready by then, says Campbell. Not only that, but at the end of the year, dealers often still have a lot of inventory and by February they’re in a better position to take advantage of show buys.

Campbell insists that his association and its members will attend and participate in CHS in 2004, even though it’s right before his own show.

Le Groupe BMR in Québec expanded its hardware distribution in Montréal late last year, and the presence of AWARD members at BMR’s annual dealer market last November was a clue to the possibility of the buying groups working more closely together on their hardware purchases. Along with Tim-BR-Marts in the West and Homecare (Tim-BR Mart Ontario), AWARD and BMR belong to an umbrella buying group called Matreco.

“We really believe BMR is not just a partner, but a mentor for us to learn how to leverage our buying power in hardware,” says Tom Smith, president of AWARD.

He remains purposely vague about his ultimate intention for the group, but admits Montréal could supply Atlantic Canada, in addition to traditional distributors such as Sodisco-Howden Group and TruServ Canada. He’s also reviewing the possibility of increased direct vendor relationships or specialty distributor relationships closer to home. “It has to be a combination of all these approaches,” says Smith. “But it’s premature to suggest AWARD will open its own distribution.

“Our strategic plan requires that we’re not going to talk about hardware as a whole department,” he continues, “but rather, we’re talking about breaking the business down into 40 key categories and managing each of those categories in the most strategic fashion possible.”

Smith adds that whatever solution AWARD comes up with will be reflective of a strategy for all members of the Matreco buying group, in addition to AWARD. “We’re looking for national hardlines strategies.”

Moncton, NB — After years of delays, Home Depot Canada will finally open here later this month. But Kent, which has a store here and one across the river in Dieppe, has been getting ready. It’s a good thing, too, because the new Home Depot store is being erected in a new power centre development right across the highway from Kent’s big box store in the Wheeler Park Power Centre on Trinity Drive.

Kent, an Irving company with 22 stores, including seven big box formats, has traditionally enjoyed strong sales and a loyal hometown following. Home Depot first made the deal for the competing property three years ago. As construction got under way last year, Kent began refurbishing its store, doing a lot of work to brighten up the store and improve lighting, endcaps and overall appearance, and beefing up its inventory of about 50,000 SKUs to offer better selection.

It’s also been focusing on its service. “Ultimately, that’s what’s going to decide the day,” says Stew Valcour, general manager of Kent. “The one with the best service will win.”

Kent has other advantages, as well. At 170,000 sq.ft., including its drive-through lumber yard, the store is considerably larger than the Home Depot, which will be that retailer’s first smaller-sized store in a traditional market, weighing in at 91,000 sq.ft., of which 20,000 sq.ft. will be devoted to a garden centre.

One of the changes the Home Depot arrival is expected to effect is Sunday openings. The province of New Brunswick will now allow Sunday openings, but retailers have largely held off invoking the option. Home Depot isn’t expected to be so reluctant. Kent will open on Sundays to meet the competition head on. In fact, it had a “soft Sunday opening” on March 31, opening its doors for three hours. While shopping was supposed to be for Irving affiliates only (which applies to one in three people in the province), anyone could walk in. But Kent will open on Sundays, reportedly the weekend before Home Depot’s April 24 opening.

Langley, BC — Just weeks after launching a new concept Rona Building Centre, Rona Inc. has unveiled a new look Rona Home Centre, which represents a departure from the DIY home centre format of the retailer’s Québec stores.

The former Revelstoke store in this suburb of Vancouver reopened March 29. Prior to this, the home centre stores in English Canada, including the renamed Revelstoke stores in the West, followed the Rona Renovateur model. The new program represents a fine-tuning of the concept to suit English Canada, including a new SKU base and a different store footprint. The store is 30,000 sq.ft. in size, including the warehouse.

Some of the details include multi-coloured racking that cascades from a five-foot height near the front of the store and increases toward the back. The company’s signature décor centre is also at the back.

The newly refurbished outlet places increased emphasis on hardware and tools, categories with high appeal to the Home Centre’s target retail customer. The introduction of Rona’s full private label program represents the addition of 1,200 SKUs. Décor and seasonal departments have also been expanded.

The concept will be rolled out eventually to all the Revy Home Centre stores.

Rona’s similar building centres, flying the Rona L’express Matériaux banner in Québec, are likewise getting a facelift. The first Rona Building Centre opened in Midland, ON on February 20, with a “high-end” contractor-oriented format that features a large LBM warehouse, separate “Tool Zone” and boutiques for paint, floor coverings, kitchens, and even one for doors and windows – a new rollout concept.

Upcoming expansion in British Columbia includes a ground-up Rona Home Centre in Fort McMurray, replacing an existing Revy Home Centre there, and at least one other store this year at an undisclosed location.

While AWARD has got most of its suppliers onside, it is not alone in its efforts to give its members the electronic leg up. Federated Co-op has also just signed a deal for the Saskatoon-based co-op’s building supplies side. In addition, Castle Building Centres is targeting its top vendors to go electronic, and now has about 35 onside. Sexton Group, already active with LBMX for electronic document exchange, with suppliers trading electronically, is currently piloting the delivery of invoices electronically to dealers in the same fashion as AWARD.

Corte Madera, CA — Restoration Hardware is tweaking the format of its home furnishings stores again, only one year after it launched a $12 million campaign to upgrade the merchandise mix and display presentation within its 105 stores. At the time, the company reduced its SKUs by nearly 30% to 5,000 items, and gave more showroom space to higher-end furniture, lighting, hardware and garden products. Now, the company plans later this year to unveil a prototype that, according to Restoration Hardware’s president Gary Friedman, would bring “more clarity and authority” to its stores’ core merchandise.

New York, NY — Warren Buffett‘s company, Berkshire Hathaway Inc., announced it will buy Clayton Homes Inc., a builder of manufactured homes, for about US$1.7 billion. Clayton will be operated as a wholly owned subsidiary of Berkshire Hathaway and will remain in Knoxville, Tenn. While other home builders have been hit by a souring economy in the U.S., Clayton has remained profitable.

Toronto, ON — Home Outfitters will open nine more of its home fashion stores this year, including a new urban concept slated for Etobicoke. This will bring the number of Home Outfitters stores launched since the banner appeared four years ago to 46. In addition to the Etobicoke store, which opens April 17, new Home Outfitters stores will open this year in Vaughan and Windsor, ON; Montréal, Laval and Québec City, QC; Halifax, NS; Kelowna, BC; and Calgary, AB.

Charlotte, NC — Executives of Lowe’s Cos. remain optimistic about the health of the U.S. housing market in the near term, a belief that was shared again at a meeting of analysts and investors yesterday. Lowe’s still plans to open 130 stores this year. Speaking at a Bank of America Securities conference in New York, Lowe’s treasurer Marshall Croom, with Nick Canter, senior vice president of operations for the northern division, said the company’s market research backs up the optimistic stance. The retailer also plans to unveil a new store management structure next month that will put five new managers in each store, providing more resources for general store managers. The stores will also get a human resources manager and four new operations managers, including one to handle administrative issues and one to focus on in-store sales specialists, who are key to selling projects, such as kitchen remodeling, and special orders.

Santiago, Chile — Sodimac, a leading home improvement retailer in Chile, is rolling out a new big box concept that actually combines three stores in one, and puts the focus on DIYers, females and contractors, according to the area of the store. The first new-concept store opened back in December 2001 in a southern neighborhood of Santiago. Early this month, the company will open its first store of this type outside Santiago, in Temuco City, in the south of Chile.

Chicago, IL — Black & Decker Corp. says its first-quarter earnings would meet or top Wall Street’s predictions, but adds that a weak economy will adversely affect the company’s sales. The economic downturn is expected to continue through 2003, turning in single-digit sales growth.

New York, NY — For the second year in a row, Wal-Mart held first place in the Fortune 500 list of the world’s top companies. General Motors, which was number one for years, remains in second place again this year. The list ranks publicly traded companies based on their annual revenues. Home Depot made number 13 on the list.

New York, NY — Bed Bath & Beyond, which pegs itself as the number one home goods retailer in the U.S., had a 4Q jump in profit of more than 25%. Same-store sales rose 4.1%, as net sales increased 19%. Also: the CEO title has been added to president and chief operating officer Steven Temares‘ duties. He replaces the company’s co-founders, Warren Eisenberg and Leonard Feinstein, who will remain as co-chairmen. The company expects to add another 80-90 stores this year, for a total of 600.

Troy, MI — Another 400 jobs were cut last week at Kmart Corp., this time at its head office, as it prepares to emerge from bankruptcy protection on April 30, 2003. The move is expected to save the troubled retailer about US$90 million this year and US$150 million annually.

Rob Davidson has been promoted to the position of Ontario/Atlantic sales manager for IKO Industries Ltd. A nine-year veteran of the company, he was most recently sales manager for Ontario only. (905-457-5321)

At its latest annual general meeting, the Canadian Hardware and Housewares Manufacturers Association inducted the following people into the CHHMA Hall of Fame: Tong Louie, founder of London Drugs; and Romeo Fillion and Marcel Deslauriers, the founders of Sico Inc. (416-282-0022)

Thanks in large part to the acquisition last year of the hardware and LBM assets of Marchands Unis Inc., plus a successful buying show in Montréal in November and the strong performance of the home renovation market, Sodisco-Howden posted a profit of $2.2 million in the fourth quarter, compared with a loss of $5.7 million in 4Q 2001. Sales for the quarter were up more than 20% to $126 million.

During the quarter, the company formed a strategic alliance with Ace Hardware Corp. in the U.S., under which Sodisco-Howden agreed to purchase all of the outstanding common shares of Ace Hardware Canada for $12.7 million. At the time, Ace Hardware Canada was supplying hardware to 600 building centres across Canada, with 120 of them co-branded under the Ace banner. But the industry has questioned whether Sodisco-Howden will be able to hold on to the business of the Marchands Unis dealers and maintain service levels to Ace customers.

All shipments to Ace dealers are now coming out of Sodisco-Howden’s London, ON warehouse, although Jos Wintermans, president and CEO of Sodisco-Howden, admits the transition has taken a little longer than expected and is still not completely smooth.

“A significant part of the Marchands Unis volume has stuck with us,” says Wintermans. And, he adds, the increases in last year’s results more than paid for the cost of the acquisition, which closed in February 2002 and cost the company $23 million. The positive impact on the bottom line was felt by the third quarter, when Sodisco-Howden got firmly back in the black after showing a loss of $1.0 million on sales of $235.0 million for the first six months of 2002.

The Ace program, along with Sodisco-Howden’s other banners, is currently being subjected to a branding review. The flagship banner is Pro, with about 69 dealers under the Do-it centre name. But with the Marchands Unis acquisition came Bâtitout, Ferplus Quincaillerie and Jardirêve, all concentrated in Québec, Eastern Ontario and Acadian New Brunswick. For now, they will continue to operate under their current banners.

“We’re drawing up our plans for the Ace banner now and polling our dealers. We’re figuring out ways to make both banners, Pro and Ace, a good balance to offer to the dealers,” says Wintermans. “But we want to provide people with real choices.”

“We have now reached a critical mass in our markets across the country, which will allow us to be even more competitive, says Wintermans. “We believe we are well-positioned for increased profitability going forward. The last two quarters of 2002 demonstrate earnings momentum, generated from internal efficiencies and increased sales from our first strategic acquisition.”

“It’s important for retailers to define how they are playing in the DIY arena,” said Michael Baumgardt of Bausthoffe mbH, He was speaking as part of a panel at the recent International Conference of the German home improvement retailers association, BHB. He referred to a recent study that revealed very little difference in customer perception among leading home improvement retailers such as OBI and Praktiker.

That need to stand out becomes even more urgent, Baumgardt added, given the number of other, non-traditional, players such as Ikea entering the hardware and home improvement business.

Ikea, it was noted, makes an impact on consumers even at an early age. Children have no trouble shopping in Ikea, said the panel’s moderator, Rick Mulligan of radio station ZDF in Mainz. And with up to 60% of home improvement shopping being done by women, stores must reflect their needs — and get more women into the upper ranks of their management.

A recent U.S. survey of female preferences for big boxes surprised many by revealing that both Home Depot and Lowe’s scored about the same, adding weight to Baumgardt’s argument.

He urged the audience to pay more attention to the customer, and less on the competition. “We have to figure out ways to create consumer demand, not just satisfy it,” he pointed out. Needs can be created through product innovation. Then deliver the focus on the customer to the store shelves. “Make it easier for customers to shop – reduce SKU complexity and increase the range of attractiveness.”

“ProSource now offers a full line of products,” says Munro, formerly head of purchasing at Homecare Building Centres and a former buyer at True Value. “Along with some private label products, it helps dealers differentiate themselves from the box stores and helps them compete with the box stores.”

Para sales reps across the country also represent the ProSource program. So far, it’s very strong in Ontario, with growing representation in Québec and the Maritimes. Western Canada is growing, as well, says Munro.

Some of the lines include higher ticket items like vinyl shutters, flooring and window blinds. “Our dealers could be losing that business to the big boxes because the boxes could offer dating through ‘don’t buy a cent’ events.”

To combat that, the latest addition to the program is a ProSource credit card, which helps dealers manage credit and receivables for both professional and DIY customers. The credit card allows DIY customers to purchase at a ProSource store and get up to six months interest free. It’s also a very low cost card for dealers to carry, says Munro.

“We’ve been able to negotiate pricing for the dealers. Now we’ve been able to negotiate credit terms for that dealer’s customer that will allow the ProSource member to compete head on with the box stores.”

Atlanta, GA — A new report expects Home Depot‘s results to sag during its first quarter, as sales growth slows and margins get squeezed. Barbara Allen of Natexis Bleichroeder says Home Depot’s per-share earnings for the quarter could decline nearly 18%, from 36 cents to 30 cents. Home Depot is also investing heavily to upgrade existing stores, which will further cut into profits, she says. Home Depot expects 1Q earnings to increase 9-12%.

Okotoks, AB — A new Canadian Tire store opened here yesterday. Rick Siddon is the associate dealer of the 90,000-sq.ft. outlet, which carries 30,000 SKUs and cost $6.3 million to erect. It features Canadian Tire’s “Next Generation” concept, including store-within-a-store specialty boutiques for housewares, hardware and tools, home maintenance and repair, home décor, lawn and garden, automotive, leisure and sporting goods. The store also has a 7,000-sq.ft. garden centre.

Duncan, BC — Sales for Doman Industries for the year ended December 31, 2002 were $634.9 million, compared with $770.0 million in 2001. The company had a net loss before capital asset write-downs of $96.7 million and after asset write-downs of $164.1 million, compared with a net loss before asset write-downs in 2001 of $143.6 million and after write-downs of $412.9 million. Sales in the fourth quarter of 2002 were $169.4 million, up from $161.2 million. Under bankruptcy protection, Doman has a plan to reduce its long-term debt from US$673 million to US$273 million.

Montréal, QC — Sodisco-Howden Group has completed an agreement to sell the shares and assets of Charles Bedard, a retail operation in Québec City, for book value back to Charles Bedard. This transaction should close on March 31, 2003. The Company acquired this retail operation as part of its acquisition of Marchands Unis earlier last year.

Oak Brook, Ill. — Ace Hardware Corp. has designated April 14 as the first day when its customers will be able to order products online via the co-op’s Web site. It will offer 40,000 of its 65,000 SKUs online through an e-commerce initiative that will be fully integrated into www.acehardware.com, the co-op’s informational site.

Boucherville, QC — The newest Ikea store in Québec, and the largest, opened last week on Montréal’s south shore. Expected to attract up to 19,000 visitors on its first day of business, the store represents a $60 million investment and the creation of 350 new jobs. It has 1,562 parking spaces, 28 checkout lanes within a 172,000-sq.ft. retail area. The overall size of the store, with warehouse, is 312,000 sq.ft. Sales in the first year are forecasted at $75 million.

Mississauga, ON — Drummond Metal Products has moved to: 5720 Ambler Drive, Mississauga, ON L4W 2B1; phone: 905-625-7919; customerservice@drummondmetal.com. The toll-free number remains the same: 1-800-265-2977.

Hoffman Estates, IL — Sears in the U.S. wants to put its US$30 billion credit card business up for sale, which helped boost its share price 18% last week. Such a sale could be worth as much as $7 billion to Sears, which wants to pay off debt and focus on its retail business. It also announced it plans further job cuts as it attempts to restructure.

Providence, RI — The state of Rhode Island intends to pursue another trial against the lead paint industry. A judge presiding over the original case had declined to come to a resolution to the first case, which ended in a mistrial. The state claimed the paint is a public health threat, arguing that 35,000 Rhode Island children have been poisoned since 1993, even though lead paint was banned in 1978.

Montréal & London, UK —  Kingfisher plc, the world’s number-three home improvement retailer, reported a year-end profit increase of 24.0% to $1.25 billion within its home improvement division on retail sales of $13.5 billion, up 15.8% from the previous year. The company has also confirmed it’s looking for a buyer for its big box chain in Canada, Réno-Dépôt. Kingfisher had previously announced its intention to expand only in markets where it can be the number-one or two player. In Canada, Réno-Dépôt is the number-three big box chain, following Home Depot Canada and Rona Inc.

Kingfisher confirms “it is pursuing exit options for Canada,” which means simply that they’re looking for a buyer. However, the decision to unload Réno-Dépôt was not based on the company’s performance. In fact, the 20-store chain is the only profitable division among those being cut. Sales for Réno-Dépôt in the 2002-2003 fiscal year ended February 1, 2003 reached $829 million, with profits jumping to $21.3 million from $16.0 million a year earlier.

Rather, the company, which bought up Castorama last year and has more than 600 stores worldwide, wants to focus on Europe, mainly Poland and Italy, as well as the far east, particularly South Korea. The other countries Kingfisher will exit all comprise Castorama stores. Its other market in the Americas, Brazil, has three, while Belgium has two and Germany 61.

Meanwhile, it’s business as usual at Réno-Dépôt, which is launching a $4.5 million ad campaign this month on radio and TV in both English and French. The French-language campaign employs the slogan, “Si ça existait, on l’aurait!,” which translates roughly as “If it existed, we’d have it!” In Ontario, where it has six stores under the Building Box banner, Réno-Dépôt will resurrect the comical mascot, “Hammerhead” and the slogan, “There’s more in the box.”

The company has no plans to announce further store openings at this time. Paul Hétu, vice-president advertising and communications at Réno-Dépôt in Montréal, says the company will continue to focus on its DIY and light trade customer, stressing the company’s distinction as a traditional big box format that emphasizes a broad product mix. “Réno-Dépôt stands for selection,” he says.

Rona currently operates more than 525 corporate, franchised and affiliated stores in Canada totaling in excess of 10 million sq.ft. The retailer has about 16,000 staff nationwide.

In the home improvement industry, retailers have dabbled in closeouts with mixed success over the years. Lumber Guys, a privately held chain with nine stores in Toronto, relied on closeouts in its final years as it attempted unsuccessfully to compete against the incursion of big boxes.

Surrey, BC — The WestCoast 2003 trade show and convention drew almost 10% more delegates this year, representing 18.3% more retail outlets than last year. The event, put on by the BSDA of B.C., was held March 13-14 in the Vancouver Convention & Exhibition Centre and the Delta Pinnacle Harbourview Hotel and Conference Centre.

Toronto, ON — Canadian Tire Corp. will open six new PartSource stores in Ontario this summer. The addition of six outlets to the company’s national chain of auto parts specialty stores will bring the number of Ontario stores to 19. This also brings PartSource’s national total to 39 stores. Three of the 7,200-sq.ft stores will be introduced in Ottawa, two in London and one in Sarnia.

Atlanta, GA — The supremacy of Sears as the leading large appliance retailer in the U.S. is being challenged by Lowe’s and Home Depot. Lowe’s managed to nearly double its share of the appliance market in 2002, while Sears’s share slipped from 39.8% to 39%, according to Midwest Research. Home Depot’s share climbed to 6% from 3.3%, squeezing Best Buy out of the number-three spot.

Eighty Four, PA — 84 Lumber, the sixth-largest home improvement retailer in the U.S., will sustain its aggressive store expansion strategy of the past few years with its plans to open 16 stores and two component plants between April 1 and August 5. The company, which gets 80% of its sales from pro customers, is also looking at “several other sites” for possible new-store locations in 2003 beyond those already identified.

Corte Madera, CA — Restoration Hardware reported net sales for fiscal 2002 of US$400.3 million, up 9% from US$366.5 million in fiscal 2001. The company’s loss was reduced year over year to US$3.5 million from a net loss of US$35.8 million. Same-store sales increased 6%. Net earnings for the fourth quarter were US$9.7 million, up from a net loss of US$12.0 million in 4Q 2001. Net sales for the fourth quarter were US$155.1 million, up 7% from US$144.4 million. Same-store sales for the fourth quarter increased 3%.

Troy, MI — Kmart faces the closing of 316 stores in 44 U.S. states over the next few weeks, as it tries to restructure under bankruptcy protection. The cuts will result in the loss of about 32,000 jobs.

New York, NY — Despite the plethora of home decorating shows on television, Sears Roebuck has decided to throw its hat into the ring. Together with WE: Women’s Entertainment, a “women’s interest” cable network, Sears will build a 2,500-sq.ft. house worth upwards of US$1.5 million in Long Island’s ritzy East End neighborhood. The show, called “She House,” will appear Friday nights from July 11 and the house will ultimately be given away in a draw.

Shanghai, China — Wal-Mart wants to break into China’s wealthy east coast, and is in talks with a Chinese property developer to lease space in Shanghai. Wal-Mart already has 26 outlets in China, but they’re mainly in the north and south. Entry into Shanghai will put Wal-Mart up against France’s Carrefour and Germany’s Metro AG.

London, UK — Wal-Mart is anxious to expand into the UK and it wants to buy the supermarket chain Safeway in order to do so. However, bids are being referred to the Competition Commission. The Office of Fair Trading is also reviewing bids from rivals Tesco, Sainsbury’s and Morrisons, plus a bid from the retail entrepreneur Philip Green.

The Consumer Price Index increased 4.6% from February 2002 to February 2003. Energy prices, and especially gasoline prices, were the main factor behind the rise. This is the highest increase in inflation since 1991.

A survey of real estate agents reveals that the biggest point of concern for a new home buyer is the kitchen. The survey discovered that 88% per cent of real estate agents identify the kitchen as the room primarily looked at by homebuyers, followed by living rooms, master bedrooms and bathrooms. The survey was mounted to identify the big renovation question of which rooms best enhance resale value.

Canada’s composite leading index grew by 0.7% in February, the largest gain in seven months, says Stats Canada. The increase was driven by housing, which rebounded strongly in February after a brief dip the month before. Multiple housing starts were especially strong, despite cold weather, nearly doubling. Starts of single-family homes recovered almost all of their retreat in January. Spurred by the gains in housing, furniture and appliance sales recorded their largest increase in nine months. The U.S. leading indicator began the new year with a 0.1% increase, but, unlike Canada, there were only limited gains outside of the financial market components.

U.S. housing starts fell 11% in February, says the Commerce Department. The drop, to 1.622 million seasonally adjusted in February from 1.822 million in January, constitutes the lowest rate since April 2002 and the biggest decline in nine years. Starts of single-family homes fell about 14% to 1.295 million. For all of 2002, housing remained high by historic standards, with 1.705 million starts, the highest since the mid ’70s.

Nonetheless, 3,718 companies from 59 countries were on hand as approximately 68,000 visitors walked the aisles of the 13 connected buildings filled by the show. As a result, everything from hand and power tools, cleaning and storage, brushes and brooms, paint and home furnishings were present alongside the kitchen, bath, locks and hardware vendors.

Not only that, but power tool and power tool accessory companies managed to turn out in force, despite the absence of the big guys. Jepson, Paslode, Senco, Freud and Fein all had booths. A large part of the tools section of the show was filled with Asian exhibitors, all doing brisk business. Buyers from the U.S. and the U.K. were busy placing orders and picking up catalogues.

The show divides into three main sectors: tools, locks and fittings and building materials and DIY products. The tools halls that were dominated by Asian exhibitors features every kind of hardware product: everything from power tools and accessories, hand tools, locks and fittings, air tools and lawn and garden products.

Despite the brisk business being conducted in some parts of the show, some exhibitors remarked that the show’s traffic seemed lighter than last year’s, hardly surprising considering the very poor state of Germany’s economy. But more than half of the attendees were from outside the U.S., including a contingent from Canada.

While the Canadian government was unable to secure a group stand for exhibitors, a number of companies struck out on their own. Long-time attendee SPG was present, while RCR was back at the show after a nine-year absence. Mibro exhibited for the first time, showing just three specialty items. Representatives of Canadian Tire, CanWel, TruServ Corp. and the American Hardware Manufacturers Association joined exhibitors and other guests from around the world at the fourth annual Canada Night Reception, hosted by Hardlines and sponsored by Practical World. (More Canada Night pics and coverage of new products at Practical World will be appear in next week’s edition — Michael)

Recent news that the National Hardware Show, held in Chicago every year in August, will relocate to Las Vegas in April 2004 has deepened industry concern about the health of trade shows in general. Meanwhile, a rival hardware show, inaugurated by the AHMA, will resurrect the Chicago location a month earlier.

Hans Kampen of Practical World expressed his concern about the fate of the National Hardware Show, despite possible benefits for his show. “I believe the split will strengthen our position as a worldwide leader. But it’s harmful to the sector overall,” he said.

The next Practical World will be March 14-17, 2004.

Cologne, Germany — Although it remains number two in the world after Home Depot, Lowe’s has enjoyed tremendous profitability and a surge in its share price in the past year. Bob Tillman, president and CEO of Lowe’s, outlined the mindset that will ensure the retailer does not rest on its laurels.

Tillman spoke last week at the first Practical World Conference, an international symposium mounted one day before the show, attracting some 350 delegates.

When Lowe’s first began developing big box stores, it swung its retail mix in favour of women shoppers on one hand, and commercial tradespeople rather than large home builders, on the other. Today, with US$26.5 billion in sales through 828 stores, Lowe’s is a strong runner up to Home Depot, with share prices that have risen steadily over the past year, even as Home Depot’s have dropped about 50% during 2002.

Tillman told the audience that his company “will change the paradigm of retailing by making one store the location to buy everything they need, by offering digital images of every product available.” It already tracks the purchases electronically of every one of its 50 million customers annually, and can work up a distinct customer profile for them.

Efforts to grow the business will remain squarely in the U.S. – for now. Lowe’s and Home Depot combined still hold only 20% of the U.S. market. Out of 17 core categories, Lowe’s and Home Depot are leaders in only four of them. Nor is Canada on the radar for any kind of expansion in the foreseeable future. “Since we can build 150 stores in the next five years, why should we be in Canada? Tillman queried.

“Canada’s not going anywhere,” he added wryly.

In Québec, where Rona is already well known, the company is launching a campaign that highlights the consumer with the slogan, “Vous voulez. Vous pouvez.” (You can. If you want to.)

The rebranding of all of its 39 Revy and Revelstoke stores in the West is already under way. On March 5, all stores’ names began being changed to Rona, bringing the number of Rona-branded stores across Canada to 525.

They include 10 Revy Home and Garden Warehouses in British Columbia, Alberta and Manitoba, which will become Rona Home and Garden Warehouses. Fourteen Revy Home Centres in B.C. will become Rona Home Centres, while 13 Revelstoke Home Centres in B.C., Alberta and Saskatchewan will become Rona Home Centres. Two Revelstoke Home Centres in Calgary and Edmonton, AB will become Rona Building Centres, a new banner for contractors and tradesmen.

The name changes reflect the company’s plans for growth in Western Canada. It has already announced its intention to build five to eight new big box stores within the next 18 months. Rona will support the name change with a new advertising program.

The company has earmarked $30 million to build a new distribution centre in Calgary and hire 2,500 full- and part-time seasonal workers to boost its staffing for the summer. All 41 big box Rona stores across Canada held job fairs last week as the company expands its business and brand in Western Canada.

“The distribution centre will serve our customers better, help increase our incredible selection of products, and present new opportunities for local and regional suppliers and independent merchants who are interested in joining the Rona banner,” says Rona president and CEO Robert Dutton.

Oak Brook, IL — Ace Hardware Corp. has reported a 3.6% increase in consolidated wholesale hardline sales for the year ended December 28, 2002. Sales were US$3.029 billion, compared with US$2.924 billion in 2001. Sales to retailers in the U.S. were up 5.6% compared to last year. Net profits increased 12.3% to US$82.1 million from US$73.1 million the year earlier. The company took a hit on its sale of the Canadian division to Sodisco-Howden Group, in the form of non-patronage operating losses from Ace Canada Ltd. and the loss on the sale of the Canadian business to Sodisco-Howden.

New York, NY — Home Depot is considering two locations to Manhattan – making it their first ever sites there. According to a report in last week’s New York Post, the retailer has plans to start erecting smaller, “Neighborhood Urban” stores, one off Fifth Avenue in the Flatiron District, and the other at one entrance to the lower level of the Bloomberg tower, now under construction by Vornado Realty Trust.

Duncan, BC, — Doman Industries‘ latest plan to gain credit protection has been turned down. Doman’s draft Plan of Compromise or Arrangement, submitted recently to the Supreme Court of British Columbia in connection with proceedings under the Companies Creditors Arrangement Act, was not approved for distribution to creditors, based upon objections from some of Doman’s shareholders. The company intends to revise its Draft Plan based upon the Court’s directions and re submit it to the Court within the next few weeks. Doman expects that a revised Plan will be approved by the Court for presentation to its creditors for their approval some time in April.

Atlanta, GA — Home Depot Inc. says it expects to meet its sales target for 2003. Despite the prospect of a U.S. war against Iraq, the company remains on track to achieve top line sales growth of 9-12%. Home Depot posted a 2% decline in 4Q sales as same-sales fell 6%.

Task Tools & Abrasives is relocating to a larger facility. On April one, the company will move into a 70,000-sq.ft. facility at: 6800 Dennett Place, Delta, BC V4G 1N4. New phone: 604-946-3100; email remains the same: tasktool@task-tools.com.

Washington, DC — The top CEO at Maytag Corp. got a bonus last year of US$800,000. The bonus matched the salary of Ralph F. Hake, chairman and CEO of Maytag, in his first full year with the appliance maker, according to a regulatory filing. Hake, who joined in June 2001, was paid a salary of US$409,821 and a bonus of US$300,000 for his first six months.

Montréal, QC — Domtar has sold the assets of its Sault Ste. Marie, ON hardwood sawmill to Boniferro Mill Works Inc. of Sault Ste Marie. Domtar has also entered into a five-year agreement with Boniferro to supply chip for its pulp and paper manufacturing operations, thereby providing the startup company with some initial business. Domtar has also leased back various buildings and equipment to let 51 staff continue to dry and dress softwood lumber for other Domtar mills.

Toronto, ON — Retail Council of Canada will relocate on March 28, 2003 to 1255 Bay Street, Suite 800, Toronto ON M5R 2A9. Phone and fax remain the same.

Canada’s economy churned out 55,000 new jobs in February-handily beating expectations-as last year’s torrid pace of job creation resumed following a January pause. But according to Stats Canada, the country’s jobless rate remained at 7.4% in February, unchanged from the previous month, as an increase in labour force participation matched the increase in new jobs.

Canada’s red-hot housing market again defied expectations in January, helping fuel another record month for building permits in this country, despite expectations that plans for future activity would cool in the new year, says Stats Canada. Builders took out $4.3 billion in permits during the month, surpassing the previous monthly record set last October. The January figure is also up 12.3% from December’s levels, far surpassing the increase forecast by most economists.

The soaring housing sector was the backbone of Canada’s economic growth last year, with investment in residential construction soaring more than 20% from the previous year’s levels, says Stats Canada. For the year, investment totalled $57.2 billion, up what the government agency described as a “remarkable” 20.9% from 2001. Gains were seen across all three components of residential construction, namely new housing, renovations and acquisition costs, which covers things like sales tax, land development charges and record-processing fees for mortgage insurance.

Merchandise trade surplus rose to $4.9 billion in January, from $4.1 billion the prior month. The increase was fuelled by the continued rise in energy shipments, aerospace exports and an unexpected drop in imports. This follows recent data showing that job creation and the housing market aren’t slowing from last year’s robust pace of expansion.

The following dates have been confirmed for openings so far this year: Moncton, NB on April 24; Bracebridge, ON on May 8; Lethbridge, AB on May 29; Sherwood Park, AB on June 5; Kamloops, BC on June 12; Orangeville, ON on July 17; Prince George, BC on July 31; Niagara Falls, ON on September 11; Aurora, ON on September 18; Thunder Bay, ON on October 9; and
Grande Prairie, AB on October 23.

Three or four openings in November will be announced at a later date.

In total, Home Depot expects to open a total of 200 stores in 2003, and to push its sales up by 9-12% company wide.

“The new store will act as more of a regional centre,” says Jimm Holland, director of brand management for UFA.

While merchandising is being brightened up, the focus of UFA remains squarely on the agricultural customer. “Our traditional customer is primarily the mid-sized family farm. But by expanding the trading area, this new store will better position us, not only to attract more of our core customers, but also the larger, commercial farmer and the hobby farmer. “

While incorporating used building materials into renovation has been slow to catch on, it’s gaining in popularity. The cost of disposing of used materials keeps rising, even as homeowners show more interest in old growth timbers, vintage architectural trimmings, and antique doorknobs and hardware.

Home Again, a Toronto-based outlet that sells reclaimed building supplies, as well as end-of-line, surplus and discontinued goods. Kevin McGroarty, owner of Home Again, says that business is healthy enough that expansion is a real possibility within the next two years. With minimum savings of 30% across the board, and up to 90% on certain items, his products appeal to a range of customers: 40% are contractors, the rest DIYers.

Currently, McGroarty has a contract to supply a property management company with 200 kitchens, and has recently begun selling discounted kitchen suites to consumers. As well, he exports material to Trinidad and the Bahamas.

This was the first time since 1990 that investment in new housing accounted for more than 55% of total residential construction expenditures. Spending on renovations, the second-largest component, totalled $18.6 billion in 2002, up 7.2% from 2001. Building intentions for January support a strong outlook for 2003, with building permits in the residential sector up 14.4% from December.

Lowe’s says it expects total sales in the current first quarter to increase 15%, and same-store sales to rise 2-4%. During an investor conference last week, Lowe’s reported that it expects sales for the year to grow 16-17%, with same-store sales increasing 4-5%. Lowe’s expects to open 130 stores this year and 140 next year. Square footage will increase 15-16% this year and 14-15% next year.

Following 11 consecutive months of profits, TruServ Corp. reported a 2002 net margin of US$21.2 million on revenue of US$2.2 billion, versus a net loss of US$50.7 million in 2001 on revenue of US$2.6 billion for the same period a year ago. Approximately US$105.8 million of the decline reflects the effect of the prior year’s divestitures of the lumber business and its Canadian business, TruServ Canada.

Costco Wholesale Corp. reported net sales of US$9.92 billion for the second quarter of fiscal 2003. That’s up from US$9.21 billion during the second quarter of fiscal 2002. Net income for the quarter fell 5% to US$182.1 million. Net sales for the first half of the year were up 8% to US$18.93 billion. However, in the second quarter, net sales increased 8% to $9.92 billion from US$9.21 billion, but profits fell 5% from US$192.6 million to US$182.1 million.

For the first time in its history, Home Depot will hold its annual general meeting outside its home town of Atlanta. Instead, it will move to Chicago this year, and rotate to other cities where there are high concentrations of customers and shareholders. The AGM is scheduled for May 30.

Hudson’s Bay Co. had 4Q revenue of $2.445 billion, down slightly from $2.468 billion in the same period a year earlier. Net earnings for the quarter were $105.1 million, up from $66.3 million. Sales and revenue, on a normalized basis after excluding a gain on the sale of accounts receivables, fell from $2.459 billion to $2.443 billion in the fourth quarter. Sales and revenue for fiscal 2002 reached $7.384 billion, up from $7.446 billion in fiscal 2001. Net earnings were $111.5 million, versus $72.8 million last year.

Georgia Lighting, a subsidiary of Home Depot since the big box retailer purchased it in 1999, is being rolled in more tightly with another Home Depot division. The management of the specialty lighting retailer will move to the Expo Design Center division. The shift will not effect Georgia Lighting’s operations, but its manufacturing and distribution arm, World Imports, will now be managed by Your “other” Warehouse, the Home Depot division based in Baton Rouge.

Sico Inc. had net earnings of $12.0 million in fiscal 2002, a 50.0% increase over net earnings of $8.0 million a year earlier. Sales totalled $257.0 million, compared with $224.3 million in 2001, an increase of 14.5%.

The place to be on March 9, 2003 to hook up with the key players in North American hardware/home improvement retailing. The beer is on us! For more information about Practical World, the International Hardware Fair/DIY’TEC, call Barbara Hills, Canadian Sales Representative, at 416-598-3343 or email: b.hills@koelnmessenafta.com.

(PS: The unofficial Canadian pub crawl in Cologne will kick off on Saturday, March 9. Look for your fellow Canucks on the steps of the Dom Cathedral at 4 p.m.— Michael)

The Show’s organizers, Reed Exhibitions, will relocate NHS, under the National Hardware Show name, to the Sands Expo and Convention Center in Las Vegas from May 10-12, 2004. However, the Show’s biggest supporter, the American Hardware Manufacturers Association, says Reed doesn’t in fact own the show outright, but owns the name only.

Tim Farrell, executive vice-president and COO of the AHMA, says his association “sponsors and conducts the show, while Reed manages and produces the show.” In addition, the seminar series held concurrently with NHS, International Hardware Week, is owned by the AHMA, he says.

The AHMA is pulling its support from the show in 2004 and starting its own show almost a month earlier. Called the AHMA Hardware Show, it will remain at McCormick Place in Chicago. But the date will change to April 18-20, 2004.

Farrell first let the news of the change slip while speaking to an audience at the Distribution America meetings in Colorado Springs last week.

The AHMA’s new show will be consistent with the AHMA’s mission for the industry, says Farrell. Both shows will have to compete head on to attract exhibitors, as they vie for industry credibility. The show has a history in Chicago and the AHMA is relying on the support of its members, which, he says, are largely concentrated in the Midwest and east of the Mississippi.

“Running the industry show independently will be to the benefit of our industry, and we feel Chicago, versus Las Vegas, is the best venue for the hardware show,” says Farrell. “This is based on independent research over several years and countless amount of feedback.”

But Reed has been doing research of its own. “Customer research indicated that the Spring is an ideal time for product buying at retail and that pretty much drove the decision,” says Rob Cappiello, industry vice-president in charge of the National Hardware Show at Reed Exhibitions. He recently moved over from his role as publisher of Home Channel News to work for the show.

Las Vegas is considered one of the nation’s top business and family destinations, and already plays host to a raft of trade shows, including six by Reed Exhibitions. Reed will move to Las Vegas with both the name and the legacy of the existing event, billing itself as the 59th edition of the National Hardware Show. It will also feature a new segment, the first annual Lawn & Garden World, as well as a full conference program.

Besides competing against each other, the Spring dates will put the two shows up against a number of other events. Practical World, the International Hardware Fair/DIY’TEC in Cologne, Germany, is probably the U.S. show’s biggest rival. It’s typically held in the first or second week of March. The Housewares Show, also held in Chicago’s McCormick Place, will likewise move in 2004 from January to a date in March. In addition, the Canadian Hardware and Building Materials Show takes place only a few weeks beforehand, commencing on the first Sunday of February.

“We’re getting good feedback from the industry,” Farrell adds of his new event. “We’re gaining industry support and our hope and belief is that our show will be the show for the industry, and supported by the industry.”

This year’s National Hardware Show, which has been in Chicago since 1974, will take place there for the last time in its current form from August 10-12. About 2,000 vendors are expected to exhibit.

Atlanta, GA & Wilkesboro, NC — Both Home Depot and Lowe’s Cos. unveiled their results last week. And while Home Depot remains about twice the size of its closest competitor, its star is no longer shining as brightly on Wall Street as it once was. Its stock has fallen more than 50% in the last 12 months and closed another 0.7% when its results were announced. By comparison, Lowe’s share price went up almost 6% when its results were unveiled.

Home Depot enjoyed record earnings of US$3.7 billion for fiscal 2002, compared with US$3.0 billion in fiscal 2001. Its sales for the year increased 9% to US$58.2 billion. Same-store sales for the year were flat, however, while Lowe’s saw same-store sales increase 5.6%. Lowe’s, on the other hand, enjoyed net earnings growth of 43.8% to US$1.47 billion, following a rise in profits of 46% in its fourth quarter. For fiscal 2002, Home Depot’s net earnings reached US$686 million, down from US$710 million. Lowe’s sales increased 19.8% to US$26.5 billion from US$22.1 billion a year ago.

Fourth quarter results for both companies typified the contrast between their respective performance. Profits for Lowe’s reached US$319.4 million, up from US$218 million a year earlier. Total sales rose 16.5% to US$6.1 billion for the fourth quarter, while sales by Home Depot for the fourth quarter were actually down 2% to US$13.2 billion.

According to Robert Tillman, chairman of Lowe’s, 2002 was “the best year in our 57-year history.”

Bob Nardelli, chairman and CEO of Home Depot, had a different message for analysts, however. “We are disappointed with the sales growth, as it fell short of our expectations,” he admitted.

Same-store sales for Lowe’s didn’t grow as much in 4Q 2002 as in the same period a year earlier – up 4.1%, compared with a 7.4%. But it’s up over Home Depot’s 4Q same-store sales, which fell 6% for the quarter.

Categories that enjoyed strong growth in 2002 at Lowe’s included plumbing, paint, flooring, and home organization. Home Depot has been trying to expand its installed services, which are considered a huge growth market for them. In fact, sales in services grew 26% for Home Depot in its fourth quarter.

What’s ahead? Lowe’s is rapidly gaining entry into new markets, including ones Home Depot is already in. It has 744 stores in 42 states, 112 of which were new last year, with another 11 being relocated during that time. Home Depot ended the year with 1,532 stores, including 89 in Canada. It expects to open another 200 in 2003. However, it faces competition from its own outlets. Cannibalization affected about 21% of its existing stores, resulting in a 4% negative impact on same-store sales. Other factors downgrading stores’ top line included the implementation of the company’s new performance standards, called SPI, as well as the refitting of a number of departments across the chain. Home Depot expects sales for fiscal 2003 to increase 9%-12% and earnings per diluted share to increase between 9 and 14%.

While some of the growth is attributable to Rona’s acquisition of Revy and Lansing in June, 2002, same-store sales for the year increased 7.0% for Rona’s corporate and dealer-owned stores. Sales overall at retail increased 33.3%, reflecting, in part, the Revy and Lansing acquisition, the opening of two corporate big box stores during the year, and the closure of five under-performing Rona Cashway stores in Ontario. Retail sales by all Rona’s stores, both corporate and dealer-owned, are anticipated to total almost $3 billion again this year.

The company’s growth in the second half of the year was considered “completely organic.” In the fourth quarter, consolidated net sales reached, $539.9 million, up 6.3% over $508.1 million in 4Q 2001. Net earnings for the quarter were up 94.4% to $9.1 million, attributed again to organic growth and to increases in operating efficiency. Same-store sales in the fourth quarter increased 3.7%.

During the past year, Rona launched a successful IPO on the Toronto Exchange, raising $150 million, half of which went toward the paying down of debt. The remainder will be used for further expansion, with more growth targetted for Western Canada. The company will also invest in an intensive advertising campaign, which will begin later in April.

While Canadian Tire scored healthy sales by its stores in 2002, with overall sales up 4.7% from 2001, same-store sales were up only 1.4%. Sales boosts have traditionally come with the company’s investment in new and expanded stores, so it continues to fine-tune its retail formula to foster continued growth. Its Next Generation of stores has been under way since the early ’90s years and the most recent enhancement to the program appeared in January 2001.

The first four 20/20 stores will all be “A” type stores, with about 100,000 sq.ft. of space. However, the retail area will be expanded by up to 16% over traditional “A” stores, as warehousing will be reduced and more space devoted to merchandising.

Some of the categories that will be added or expanded into the new space are designed to attract more female shoppers. The company’s research indicates that about half the shoppers in their stores are women, yet they account for only about 40% purchases. New categories will include consumables, namely household cleaning products, which are considered high repeat traffic items. Kitchenwares, storage and ready-to-assemble furniture assortments will also be expanded. A gift registry is also expected to be in place in its stores by the end of 2003 or early 2004.

The takeover of Matco Ravary by a syndicate of 16 dealers within Le Groupe BMR has been postponed. Originally slated to close on February 28, both parties have agreed to close the transaction on or about March 6, 2003, instead, to allow finalization of paperwork. The deal, worth $24.5 million in cash plus the assumption of $13 million in Matco Ravary’s debt, had already been approved by Matco Ravary’s board of directors, but was challenged unsuccessfully by Rona Inc., which tried to file an injunction against the sale. Rona owns about 30% of Matco’s shares. The six-store chain in the Montréal area, formerly a member of Rona, has been buying from BMR since December 19, 2002 and will represent the addition of about $60 million in retail sales to the BMR organization. Carmel Chaput, chairman of Matco Ravary, and Gilles Nolet, president, who together held 47% of the company’s voting shares, will remain with the company in their current roles for an unspecified time.

Home Hardware Stores launched its own gift card this past weekend. Available in any denomination, the Home Gift Card will be accepted at all Home Hardware locations across Canada, aimed at the birthday, housewarming, bridal shower, anniversary and holiday gift-giving market. It’s also being promoted as part of an employee reward or customer appreciation program.

Gerber Plumbing Fixtures Corp. has announced that most of its assets have been sold to a new entity, Gerber Plumbing Fixtures LLC. Chicago-based Globe Union Group is the majority owner of Gerber Plumbing Fixtures. Gerber’s 2002 revenues exceeded $100 million. Gerber will operate as a stand-alone subsidiary of Globe Union. Ila Lewis, current Gerber chairman and granddaughter of founder Max Gerber, has been named chairman of the new company. Terms of the transaction were not announced.

Wal-Mart de Mexico SA will invest close to 6.4 billion pesos (US$610 million) within the next 18 months to expand its retail network. Shareholders have approved the expenditure plan for the opening of 61 retail outlets. In Mexico, Wal-Mart operates under the Walmex banner.

At Johns Manville, Gino Allegro has been promoted to the position of Canadian regional sales manager, in charge of the Canadian sales team and their support staff. He was formerly national accounts manager for Canada. (204-488-6765)

Canadian Tire Corp. has announced two senior executive appointments at Mark’s Work Wearhouse, concurrent with the retirement of president Garth Mitchell. Michael Lambert, formerly CFO, has been named president, Mark’s Work Wearhouse, and executive vice-president and officer of Canadian Tire Corp., reporting to CTC president and CEO Wayne Sales. In this role, Michael will be accountable for the continued integration of Mark’s within Canadian Tire as well as new business development and support of Mark’s operations … Paul Wilson, currently COO, has been appointed president and COO of Mark’s. His duties will include the continued conversion of Work World stores to the Mark’s banner and new merchandising growth strategies. (403-250-1222)

In the latest release of its housing affordability index, Royal Bank expects rising house prices and increasing mortgage rates to reduce the affordability of Canadian homes. The proportion of pre-tax household income needed to service the costs of owning a home climbed in 2002 from 30.6% to 31.8%. The index is expected to rise to 32.7% in 1Q 2003.

The Consumer Price Index rose 4.5% in January year over year, with energy costs accounting for the bulk of the increase. Without energy costs, inflation grew 3.5% from January 2002 to January 2003.

Kingfisher has already stated it will consider selling off its holdings in any country where it is not the industry leader. However, in Canada, where Réno-Dépôt is the number three big box player, after Home Depot and Rona‘s big box stores, it remains a profitable operation, with overall sales up an estimated 7.3% in 2002. Kingfisher’s decision to drop the chain will have more to do with its desire to focus on Europe and Asia.

With sales hitting an estimated $786.5 million in 2002, Réno-Dépôt remains profitable, even though same-store sales were down somewhat in the fourth quarter year over year, a strong 4Q in 2001 made the latest results a tough act to follow. In fact, Réno-Dépôt’s same-store sales were “in line” with the international division’s, at around 5%.

Despite a U.K. report that Réno-Dépôt may be sold off, its future is far from conclusive. Any plans will be the result of Kingfisher’s review of its international operations, which is expected to conclude sometime in March.

Réno-Dépôt opened only one store last year, a Building Box in Windsor, ON, bringing the chain to 20 outlets. Plans for continued expansion will be unveiled sometime next month.

The distribution centre will service 150 Country Depot and FS co-op stores, which comprised Growmark’s former retail division. “We will also use the facility to handle certain other merchandise for our member stores,” says Léo Charrière, president of TruServ Canada. TruServ already has 140 True Value and V&S member stores of its own in Ontario.

TruServ has seen the Growmark acquisition as a key strategic step in increasing its critical mass as a contender to be a hardlines supplier coast to coast. The move will consolidate its presence in Canada’s largest province, eventually giving it quicker access to customers in Atlantic Canada. Sixteen people have been brought over from Growmark to join the new TruServ team, including a buying team that will operate out of Kitchener, overseeing pet and farm products for all of TruServ (see People on the move).

Growmark will sub-lease part of the new distribution centre to handle agro products for its own farm co-op outlets.

The Growmark deal may be the beginning of a trend, as TruServ keeps its eye open for more acquisitions. “We are looking for more,” says Charrière.

Markham, ON — Sam’s Club, Wal-Mart‘s club store banner, will have both the “treasure hunt” approach to merchandising and a range of fixed merchandise when it arrives in Canada.

“For our personal members, it’s all about change,” he says. But the club’s business members come to rely on consistency of supply on certain products and supplies. “For our business members, it’s a little more static. They don’t like change.”

The seasonal changes in Canada are ideal, he says, for the “treasure hunt” aspect of club shopping. “Our policy is ‘early in, early out.’ This is especially important in seasonal. We’ll change seasons earlier than anyone else.”

Edwards expects Sam’s to break ground on its first stores sometime next month, with an estimated six stores opening by September or October of this year. The first stores will be in the Greater Toronto Area. While there are already 61 Price Clubs in Canada, he says the country can sustain another 40-60 club stores.

“The big players, such as Home Depot, Rona and even Home Hardware, don’t need the Canadian Hardware Show,” he continues, “but it’s the only place for smaller guys like us to find new products and new ideas, so it puts us at a competitive disadvantage.”

Valcour’s company, a business unit of J.D. Irving, is no small potatoes in its own right. With sales estimated at around $250 million, it’s one of the 10 largest home improvement dealers in the country. it’s the largest member of the Independent Lumber Dealers Co-operative. It now has 22 stores, since the addition of three former Pro stores in Edmunston, NB.

However, its sales are still only one-third those of Réno-Dépôt, while the combined sales of Home Hardware’s dealers is nearly 14 times greater, with a show of its own. Valcour sent his buyers to walk CHS, following ILDC buyer meetings held in Toronto during the time of CHS.

The purchase of Ace Hardware Canada by Sodisco-Howden Group, announced in October 2002, has finally closed. In the deal, that got stalled by the Canadian Competition Bureau during the holiday season, Sodisco-Howden struck an alliance with Ace Hardware Corp. of Oak Brook, IL to buy up all issued and outstanding shares of the Canadian subsidiary.

Net sales for Canfor grew in the fourth quarter to $480.5 million, up $22.9 million over the same quarter in 2001. For the full year, the company’s profit fell to $11.5 million, down from $26.4 million in 2001. Net sales for 2002 were $2.11 billion, up $126.6 million.

Budget Canada has signed a five-year deal with Canadian Tire to install car rental kiosks in 100 Canadian Tire stores across the country. The program will roll out over the next 12-24 months. People who get their cars repaired at Canadian Tire, as well as Auto Club members, will get discounted rental rates.

Rona Inc. has opened its first store under the Rona Building Centre banner. The 40,000-sq.ft. former Rona Cashway in Midland, ON is similar in concept to Rona’s Québec banner, Rona l’express Matériaux, but with a more distinct focus on contractors, tradespeople and heavy DIYers. The 40,000 sq.ft. store carries 20,000 SKUs, and includes a building materials warehouse, a “Tool Zone” for electric and manual tools, and specialty boutiques for paint, floor coverings, kitchens, and doors and windows.

Wal-Mart‘s net sales for the year ended January 31, 2003 were up 12.3% to US$244.524 billion. Net income for the year was US$8.039 billion, up from US$6.671 billion. Earnings in the fourth quarter ended January 31 reached US$2.53 billion, compared with US$2.19 billion a year earlier. Sales for the quarter were US$71.07 billion, up 10.7% from $64.2 billion a year earlier.

Benjamin Mooore has been voted Canada’s most trusted brand in paint, according to the third annual Reader’s Digest Trust Poll. The survey, which looks at the level of trust Canadians place in different professions and brands, asked respondents to assess factors such as honesty, integrity and product quality.

In preparation for the busy Spring season, Home Depot is looking for an additional 60,000 part-time staff for its 1,500 stores North America-wide. The giant retailer has entered into an initiative with the U.S. Department of Labor, using the agency’s career centres to recruit.

Wal-Mart has opened a new export office at its Arkansas headquarters to identify U.S. products that can be shipped worldwide. The new office, “GP USA Export,” is a branch of Wal-Mart Global Procurement, an internal buying agency formed by the company in 2002. Wal-Mart Global Procurement has sourcing offices in 17 countries, working directly with Wal-Mart merchandise buyers in the States, Puerto Rico, Canada, Mexico, Argentina, Brazil, China, Korea, Japan, the U.K. and Germany.

Chris Henwood has joined Prosel Marketing as sales manager. He was formerly senior buyer for home décor at Ace Hardware Canada. (416-661-1414)

Rob Capiello has moved over from his role as publisher of Home Channel News, the U.S. trade magazine for the home improvement industry, to work for Reed Exhibitions. He is now industry vice-president, in charge of the National Hardware Show, which is held in Chicago each August. (203-840-5493)

Wholesalers posted a seventh consecutive monthly increase in their sales in December, with sales reaching $36.1 billion, up 0.3% from November. Wholesale sales of lumber and building materials had the strongest growth in December of the 11 trade groups tracked by Statistics Canada, growing 3.2%. This rebound follows a 2.1% drop in November. For the year, wholesale sales were up 6.2%, compared with only 2.5% in 2001. U.S. wholesalers posted a 1.5% gain in 2002.

The group of about 80 large retailers in Canada had sales increase 6.1% in 2002, says Statistics Canada, surpassing the healthy 5.6% gains in both 2000 and 2001. These retailers represent about 38% of total annual retail sales, excluding recreational and motor vehicle dealers. Sales in December reached $10.2 billion, up only slightly from December 2001. Home furnishings and décor were up 7.8% year-over-year, while hardware and lawn and garden products were up 4.5%.

The U.S. Commerce Department reports that housing starts stayed high in December, at a rate of 1.850 million units seasonally adjusted. That’s up 0.2% from 1.847 million units in December 2001.

Lack of snow before Christmas in many markets depressed seasonal sales for Canadian Tire dealers. In addition, the company’s retreat from low-margin home electronics and toys to more high-end giftwares adversely affected sales more than anticipated. As a result, sales in the fourth quarter dropped 0.4% from 4Q 2001 and same-store sales fell 2.5%.

For the year, however, total sales at retail (a combination of Canadian Tire retail, Mark’s Work Wearhouse, PartSource and gas stations) climbed 11.6% to $7.2 billion. Although sales by Mark’s were essentially flat, the Mark’s acquisition added incremental sales of $480 million. Sales by Canadian Tire member dealers were up only 4.7% to $5.8 billion in 2002. Same-store sales were up 1.4%.

Consolidated operating revenue for the whole company reached $5.9 billion, a 10.6% increase over the company’s top line in 2001. Net earnings grew 14.6% to $202.4 million from $176.7 million in 2001.

Moncton, NB — The much anticipated arrival of Home Depot to this city will occur later this Spring. It will be only the third Home Depot store in Atlantic Canada (the others are in Halifax and Dartmouth, NS). The store is expected to be about 95,000 sq.ft., but despite its slightly smaller size, Moncton is considered by many to be overstored already in the home improvement sector. Either way, the Kent Superstore, located on Trinity Drive, right on the other side of the highway, has been preparing for the new competition for at least a year.

The big box store has been undergoing a fine tuning, including better displays and extensive remerchandising. The store, which has typically enjoyed some healthy margins, has also been getting more competitive, as prices have been lowering over the past year.

The first card, for consumers, is a Visa card co-branded with Rona. It’s usable anywhere and gives customers access to special card options at Rona stores. It also makes card holders eligible for personal financing instore. Called “Financement accord D” in Québec, and “Community Retail Financing” in the rest of Canada, the program creates a profile of each card holder. This profile, accessible at POS, gives the customer the option to use either their Visa card or get longer-term financing at favourable interest rates when buying materials for larger projects.

The program has been on trial for about 18 months in Rona’s big box store in Brossard, QC. “A lot of consumers find this possibility for financing good, because it’s an easier way to get credit for a home improvement project,” says Sylvain Morissette, communications director for Rona. “It takes only about 20 minutes — right in the store.”

The other two cards, one for contractors and one for institutions and government agencies, will be a private-label card. “For our professional customers, it’s another way for them to lower their cost of operations,” says Morissette. “It provides a monthly bill that’s easier than establishing credit at just one Rona store.”

Taiga Forest Products recorded 3Q sales of $203 million. That’s up from $182 million for the same period in the previous year. Earnings for the quarter were $364,000, compared with $1.8 million. Sales for the nine months ending December 31, 2002 were $703 million, up from $648 million. Profits for the same period climbed to $8.5 million from $5.5 million. During the quarter, Taiga acquired LP Corp.‘s Rocklin, CA building products distribution centre.

West Fraser Timber Co. Ltd. announced 4Q earnings of $36 million on sales of $405 million, compared with earnings of $11 million on sales of $364 million in 4Q 2001. For the year, earnings were $138 million on sales of $1.63 billion, up from earnings of $115 million on sales of $1.56 billion in 2001. The yearly earnings increase was due primarily to increased production, along with lower unit costs.

Home Depot chairman and CEO Bob Nardelli says the company needs a president as part of its succession planning, but he hasn’t given a timetable for the appointment. He has hinted, though, that the job will be given to someone inside the company. Nardelli left GE in 2000 to become president and CEO of Home Depot. He assumed the chairman’s title last year.

Shoppers Drug Mart, Canada’s largest pharmacy chain, posted 4Q profits of $62 million, up from $4 million for the same period a year earlier. For the year, the retailer earned $209 million, up from $7 million. Sales for the year rose 8.9% to $5.44 billion; same-store sales increased 7%. Shoppers expects sales in 2003 to increase 11%-12%, with growth coming from the development of large-format stores and expansion of its merchandise offerings. It also wants to revitalize its private label offerings.

JDA Software Group Inc. has awarded $5.24 million of JDA Portfolio space, category management and planning software and services to Ryerson University, School of Retail Management. Ryerson will use the Portfolio applications to teach visual merchandising, product and demand planning, customer data analysis and assortment optimization. The Ryerson School of Retail Management offers the only university-level degree in retail management in Canada.

Americans are responding to the threat of war with Iraq by stocking up on supplies at their local hardware stores. People are buying everything from wood stoves and drums to collect rainwater to duct tape and plastic sheeting. Stores are stocking up on lamp oil, batteries and other emergency supplies.

Wal-Mart‘s anti-union policies are finally catching up with it. It currently faces about 40 lawsuits in the U.S. from employees for everything from unpaid overtime to sexual discrimination. Labour groups are starting to work together, intensifying efforts to get higher wages and better conditions.