Rub shoulders with Canada’s top home improvement retailers. Register now for the Hardlines Conference Series, September 12-13, at the Four Points Sheraton near the Toronto International Airport. Click here for more information! For a hotel room, you must call: 905-624-1144. They still have some rooms available, but the rate has gone up.

Toronto, ON – Remerchandising, more hardlines and cleaner yards are just some of the initiatives under way for Rona‘s Cashway acquisition. The 60 stores throughout Ontario are in the process of being refurbished, with about a dozen completed already this year. Stores that have been upgraded recently include Milton, Niagara Falls and Huntsville.

According to Rob Wilbrink, vice-president operations and development for Rona Ontario, the company plans to work its way right through the chain and upgrade all the stores eventually. The fresh look includes new racking, better merchandising and increased assortments of hardlines. “We’re putting more focus on the back end and we’re now bringing in more retail oriented people from the Lansing side,” says Wilbrink. “The hardlines products are good for margins and support the building materials side.”

Another strategy for bringing the Cashway stores up to Lansing standards is their conversion to Omni, from a near-obsolete Tomax system. This will enable the Cashway stores to interface with the rest of the Lansing and Revelstoke stores, which operate on a platform by JDA.

Overall, Wilbrink is confident about the future of the former Cashway stores. “There’s a lot of strength within the organization in terms of local management and their involvement in the community. Turnover at the Cashway stores is very low, and we have staff in many of them that have been there for a lot of years.”

However, as Rona consolidates its Lansing and former Revy stores in Ontario, the Cashways in Burlington, Stoney Creek, Ajax and Nepean had to be shuttered. A store in Ilderton, northeast of London, is currently in the process of being shut down, as well. Other stores, such as one in Windsor, which is right down the road from the Building Box there, will be left intact for future evaluation.

The new division will serve 450 stores and have 90,000 employees. The change leaves Home Depot with eight divisions instead of nine and helps improve operating efficiencies, chairman and CEO Bob Nardelli said in a prepared statement.

Tom Taylor, president of the Southeastern division since January, will lead the combined operation. John Wicks, president of the Mid-Atlantic division, will join the merchandising team.

Home Depot closed its Northeastern U.S. buying office last fall and combined two divisions back in January. A new unit to service stores in the U.S. Southeast and Caribbean was formed in January 2002 by closing the Southern division in Tampa, FL and rolling it into the Atlanta-based Midsouth division. At that time, Taylor was put in charge of the division.

The changes were adopted so Rona’s structure would be better suited to participate in capital markets. The by-laws adopted last week affect the procedures for sending notices of meetings to the holders of common shares. Those notices will be repealed, those types of common shares will disappear in the event of a public offering.

The quorum to hold a shareholder meeting will be reduced from one-third to 20% of the shareholders of outstanding voting shares, which brings it more in line with general practices on the Canadian markets.

Finally, directors will no longer be differentiated as either outside directors, inside directors or merchant shareholder directors. All directors will be recognized on the same footing.

The modifications will take effect immediately on going public, and the deadline for this is the end of 2005. According to Rona spokesperson Sylvain Morrisette, the company recognizes two windows of opportunity for an IPO: between July 2004 and December 2004, or between July 2005 and December 2005. “But these are not the only periods. we can go anytime. It depends on the market and on the decision of the board.”

Facing the realities of a maturing marketplace and aging stores, Home Depot says it will start spending more money on upgrading existing stores. This year, 85% of the retailer’s capital spending budget of US$3.6 billion will go toward 200 new stores, leaving 15% for upgrades to existing stores. However, in future, more will be spent on older stores.

Wal-Mart saw net sales in August reach US$18.37 billion, up 11% from US$16.53 billion a year earlier. However, same-store sales rose only 3.8%, below the company’s own forecast of between 4% and 6%. Hot weather in the Northeast slowed things a bit. At the Wal-Mart division, same-store sales rose 4.3% and total sales climbed 12% to US$11.78 billion. Same-store sales at the Sam’s Club warehouse division rose 1.1%, while its total sales increased 6.8% to $2.38 billion.

Costco Wholesale Corp. reported net sales of US$3.01 billion for the four weeks ended September 1, 2002, an increase of 10%. For the fiscal year, net sales rose 11% to US$37.98 billion from $34.14 billion.

A lawsuit in Rhode Island is the first to try and hold paint manufacturers accountable for lead poisoning. Eight companies have been cited in the suit, which has been filed by the state 25 years after lead paint was banned there as a health hazard.

Mike Frame has been appointed development manager for the Central region for Rona Ontario. He was formerly at D.H. Howden. (416-241-5129)

Mortgage rates continue to come down, by up to a quarter of a percentage point. TD lowered its short-term rates (one-year open and one-year closed mortgages) by a tenth of a percentage point. TD’s new one-year open rate falls to 6.1%, while the one-year closed moves to 5.30%. All terms from two years to 10 years were trimmed by .25 percentage points. The new five-year closed mortgage rate at TD is 6.70%, even less than last week’s rate of 6.80% for a five-year mortgage. Scotiabank lowered all its mortgage terms from six months to seven years by a quarter of a percentage point. Scotiabank’s one-year open mortgage is now 5.90%, while its five-year closed mortgage has a posted rate of 6.65%.

Want to build your overseas sales? Looking for new product and merchandising ideas? Then don’t miss this FREE International Business Seminar, Thursday, September 12, 9-11:30 a.m. Learn how to tackle the huge overseas market, take advantage of government programs and meet key European buyers. Book NOW!!! (Part of the Hardlines Conference Series, September 12-13, at the Four Points Sheraton near the Toronto International Airport.)

Longueuil, QC – Construction is underway by Groupe BMR inc. to expand its distribution centre.

The $5 million investment will result in an increase of BMR’s hardware distribution facilities to 120,000 sq.ft. and will accommodate 22,000 SKUs. The building materials warehousing will grow to a total of 65,000 sq.ft.

The construction is scheduled for completion by the beginning of 2003. It is expected to create 25 permanent jobs.

The expansion was made possible by the acquisition of an adjacent 360,000-sq.ft. property, bringing the total of BMR’s existing distribution centre and head offices location to nearly one million sq.ft. The improvement was needed in order to maintain and improve service to the co-op wholesale buying group’s 120 dealers throughout Québec, Eastern Ontario and Northern New Brunswick. BMR also has a warehouse in Saint-Augustin-de-Desmaures, near Québec City.

According to Yves Gagnon, president of BMR, the group wants to provide a full array of hardlines to its dealers. This expanded capacity, he says, will give them the autonomy to do so. “The dealers found it hard to be masters of their own destiny with someone else handling the hardlines supply,” he says.

Last year, Groupe BMR processed $232 million in wholesale sales, while sales by all its dealers totalled $630 million. A member of the Matreco buying group, it is celebrating its 35th anniversary this year.

Boucherville, QC – Rona inc. recorded its best quarterly performance ever in its second quarter, increasing net earnings by a record 113.1%. Consolidated net earnings for the quarter were $18.3 million, up from $8.6 million last year. For the six-month period ended June 30, 2002, net earnings reached $22.1 million, 93.8% higher than the $11.4 million recorded in the year-earlier period.

Rona’s net consolidated sales, that is, the total sales at wholesale plus retail sales by its corporate stores and franchises, were $717.8 million in the second quarter, an increase of 50.1%.

Net sales for the six-month period reached $1.16 billion, a 58.7% increase over the previous year. This growth in sales is largely attributable to the acquisition in June, 2001 of Revy Home Centres Inc. in Ontario and Western Canada. However, same-store sales were up 9% over the same period in 2001, despite poor weather conditions, especially in May.

“Our results show that our recent acquisitions have produced the expected synergies,” said Rona president and CEO Robert Dutton in a prepared statement. He remains “cautiously optimistic” about the rest of the year.

A number of internal initiatives have contributed to the growth, as well, says the company. These include the renovation of several corporate stores, particularly in Ontario, the expansion of the Rona Lansing in Markham, ON and the opening of its 40th big box outlet, a Rona Home & Garden in Ottawa.

Sales by Rona’s big box stores in Québec have increased by more than 15% in the first six months of 2002.

Atlanta, GA – Home Depot has entered the commercial landscaping business with the opening of its first Landscape Supply store in the nearby community of Duluth.

According to the Atlanta Journal-Constitution, the 37,000-sq.ft. store, devoted solely to lawn and garden and landscaping products, is the latest retail concept from Home Depot, which is currently testing several alternative retail concepts, as same-store sales at its traditional stores begin to flag. The market for lawn and garden is estimated at US$34 billion.

Unlike a traditional Home Depot outlet, Landscape Supply will offer outdoor gardening supplies and materials only. While it will be open to the public, it is heavily geared toward contractors, builders and landscape architects. The store offers a greater variety and quantity of live goods at this new location than at a regular Home Depot store.

The 12,000-sq.ft. Landscape Supply store has an additional 25,000-sq.ft. of outside greenhouse on a seven-acre site. It features a separate entrance for contractors, with staff designated to deal exclusively with the trades.

Two more openings, in Woodstock and Kennesaw, GA, are scheduled for September 12, while another two are planned for the Dallas-Forth Worth, TX area. The company has not disclosed any other locations it has in mind.

Terry stood out in the industry as a smart, thoughtful retailer whose company continued to expand amidst the emergence of big box retailers in communities such as Winnipeg. In 1992, the Western Retail Lumberman’s Association named him “Mr. Lumberman of the Year.” He was also a strong supporter and friend of Hardlines.

His community activities included the Parkland Regional Health Authority, the Dauphin Lions Club and the Dauphin Men’s Curling Club, of which he was a life member. Terry leaves behind his wife Hazel, son Jason and his wife Laura, and daughter Rhea and her husband Paul Chard, plus three grandchildren.

Profits for Hudson’s Bay Co. in its second quarter were $4.7 million, down from the same period last year. Sales were $1.69 billion, down slightly from last year’s $1.7 billion. Sales at Zellers were up 0.5% year-over-year, while sales at the Bay stores decreased by 2%. Same-store sales increased 0.4% at Zellers and decreased 5.5% at the Bay, but margins narrowed for Zellers, hurting the company’s bottom line.

Home Depot‘s at-home services are taking off, as 2Q revenues for this division grew from US$395 million to US$500 million year-over-year. The company estimates that the “do-it-for-me” market is worth US$180 billion. Home Depot offers installed sales for everything from ceiling fans and windows to kitchen cabinets.

Sears Canada has relaunched six former eatons stores as urban Sears stores. It also opened two stores last week: Maisonville department store in London, ON was reopened after a 12,000-sq.ft. expansion, while a brand new store was unveiled at the Rosemere Shopping Centre in Rosemere, Québec.

Waters Instruments Inc. had 4Q net sales of $8.5 million, up 55% over the same period a year earlier. Sales for the year reached $25.3 million, a 66% increase. Profit for the year increased by 49% to $1.28 million, from $863,000 in fiscal 2001. Sales at the company’s Zareba Systems division, which now represent 77.6% of the company’s overall sales, more than doubled in fiscal 2002.

Richelieu Hardware Ltd. has signed an agreement in principle to acquire 75% of the shares of Menuiserie des Pins (L.F.) Ltée. The company specializes in products designed for window and door manufacturers currently supplied by Richelieu. Founded in 1946, it has annual sales of $8 million, mostly in Québec. Set to close in mid-September 2002, the transaction is subject to a due diligence.

Rob MacDonald has joined Ace Hardware Canada in charge of store planning and design. His background includes Zellers and Home Depot Canada; he was most recently at The Building Box. (905-475-1188)

Pierre Racette has joined National Manufacturing of Canada as vice-president of national accounts and sales. A veteran of both the manufacturing and retail sides of the hardware business, Racette will operate out of National’s facilities in Cobourg, ON and report to Bill Medland, president of National. (905-372-9623)

At Grant Brothers Sales Ltd., Debbie Lambert has been appointed national accounts manager, Hardware Division, based in Grant Brothers’ head office in Mississauga. She will be responsible for leading GBS’s sales program to the major retailers and distributors across Canada. (905-852-9930)

Bernie Owens has been appointed vice-president of sales for Canada at BPC Westroc, effective September 1. Reporting to Don Moses, senior vice-president, sales and marketing, he will be responsible for Westroc’s wallboard and ceiling sales in Canada. (905-823-9881)

Dean Albonese has been named national sales manager for Better Living Products of Canada, effective immediately. In his new position, Dean will be responsible for the day-to-day sales management of the Canadian Division with a primary focus on the retail segment of the business. Dean joins the company from GSW Thermoplastics. (905-264-7100)

Michael Bennett has joined Reckitt-Benckiser as the regional manager, calling on the likes of Costco, Canadian Tire and Shoppers Drug Mart. (416-201-7480)

A new study conducted for the Greater Toronto Home Builders Association reveals that 60.6% of all households in Toronto owned their own homes in 1996. That number has grown to 63.8% today, an increase of about 150,000 homes.

Low interest rates helped push sales of new homes in the U.S. in July. Single-family dwelling were up 6.7% to a seasonally adjusted rate of 1.017 million last month. July was the first time new-home sales in the U.S. passed the one million mark.

The next issue of Hardlines will be out September 3. But don’t worry! The World Headquarters remains open during this time, as we prepare for our Hardlines Conference Series on September 12-13. If you haven’t registered yet, act fast – you’ll want to be part of the most incredible information and networking event of the year!

CONFERENCE HOTEL SPECIAL:
The Four Points Sheraton has extended the deadline for our special low conference rate. Call before August 31 and the price is only $149 per night. Contact: 800-737-3211 or 905-624-1144; email: mevans@fourpointsairport.com . – Michael

Home Depot has a three-year exclusive deal with Trane in the U.S. that’s been under way for just over a year, but Trane’s dealer network in Canada isn’t as widespread as it is south of the border. Therefore, Enbridge got involved, becoming a Trane preferred dealer here.

“This category has been identified as one of the key areas of growth and we’re already well established in areas like kitchens and flooring,” says Keith Bertram, Home Depot Canada’s divisional manager for At-Home-Services. “But the new initiative identifies programs outside the store, aimed at the ‘do-if-for-me’ market.”

Trane products won’t be carried in the stores, but will be displayed in the At-Home-Services selling centres within the stores. During prime time shopping hours, Enbridge Home Services representatives will also be on hand. Purchasing for the program falls under the aegis of Lyne Castonguay, divisional product merchant for plumbing and HVAC.

The pilot program includes all Home Depot stores between Ancaster in the West, Oshawa in the East, St. Catharines in the South and North to Orillia. The retailer intends to go national with the program in time, says Bertram, who was himself formerly with Enbridge. He says that company wants to go national, and the Home Depot alliance will give it the means to do so as the program is rolled out coast-to-coast.

Home Depot Canada already has a national carpet and upholstery cleaning service, while duct cleaning, window replacement and roofing programs are gradually expanding into all areas of the country, as well. At-Home-Services is enjoying growth “in the high double digits” and Bertram’s team is on the lookout for new opportunities.

The Debert distribution centre supplies Home dealers in Eastern Québec and the Atlantic provinces, including Iles-de-la-Madeleine and St. Pierre et Miquelon. The facility, which was built in 1980, recently underwent a conveyor retrofit and the addition of extra storage bins to improve productivity.

Additional distribution centres are located in Wetaskiwin, AB, Elmira, ON and St. Jacobs, ON, totalling more than two million sq.ft. of warehousing space and housing 60,000 SKUs.

Last year, 53,310 industry trade professionals attended the show, with attendees from 90 countries represented. It also shrank down to three days from four in 2001. This year, the show was reduced to two buildings and included a housewares section for the first time.

Toronto, ON – The latest trends in retail worldwide will be given fresh commentary, as retail guru John Williams, of J.C. Williams Group, joins the Retail Strategies Symposium on September 12, 2002. Williams focuses on business strategies for retailers, shopping centres, cities and manufacturers. He heads up one of the foremost retail and shopping centre consultancies in North America.

At the Hardlines Marketing Conference on the following day, September 13, David Day has agreed to participate in our breakout session on maximizing public relations. Day, formerly director of communications at Home Depot Canada, is now vice-president of Temple Scott Associates, a leading public relations and government relations firm. He will talk about how to drive sales through PR (a tool that is drastically underused in this industry – Michael).

“It’s an effective way to drive the bottom line,” says Day. “Looking to the future, both manufacturers and retailers need to make this part of their marketing arsenal.”

He’ll be joined by Michael McLarney, editor and publisher, etc., who’s been on the receiving end of some pretty dismal PR over the years. He’ll explain what works and what doesn’t when communicating with the media.

For more information about the Hardlines Conference Series, September 12-13, 2002, click here for more Conference details or call Nancy at 416-489-3396, nancy@hardlines.ca Click here to register.

Sodisco-Howden Group recorded revenues of $148.4 million for the second quarter, up 24% over last year. The increase was due largely to added business from the acquisition of the hardware and building materials assets of Marchands Unis and from the strong performance of the LBM sector. 2Q profits reached $1.7 million. Revenues for the first six months were $235.0 million, up 22.2%, but year-to-date losses deepened to $1.0 million from $0.6 million a year earlier.

If the real estate was available, Home Depot would open two more stores in Calgary, says the Calgary Herald. While in town to help with an all-women Habitat for Humanity event last week, Home Depot Canada president Annette Verschuren bemoaned the lack of available sites, where the retailer already has four.

Coming out from under its bankruptcy protection, the management of White Rose has re-incorporated as White Rose Home & Garden Centres Ltd., named Fern Reeves to head up the turnaround, and will buy back 24 White Rose locations from the receiver.

After a brief absence from the market, McCulloch Canada is back under new owners, Taiwan-based Jenn Feng Industrial Co. Ltd. McCulloch carries a full line of gas and electric products and power tools. Jenn Feng produces for Hitachi, Ryobi Australia, Metabo and Milwaukee.

GSW Inc. has purchased the assets of the vinyl gutter business of Bemis Manufacturing Co. as part of GSW’s Building Products Division in Barrie, ON. The deal includes patents, trademarks and tooling relating to its Rain Master brand and is intended to strengthen GSW’s vinyl gutter and downspout business throughout the U.S. and Canada. Terms of the deal are not disclosed.

Do it Best Corp. ended its 2002 fiscal year on June 30 with US$2.39 billion in sales, up 9.5%. Rebates reached US$95.7 million, or 12.9% of total purchases, to the co-op retailer’s 4,300 members. During the fiscal year, Do it Best added 266 new members.

Lowe’s is working with its suppliers to convert pressure-treated wood from CCA to Alkaline Copper Quaternary (ACQ) lumber by this fall. The company wants to stay ahead of the EPA’s voluntary phase-out of the arsenical treating method,6 even though no reasonable risk has been attached to CCA.

Total sales for Wal-Mart in its second quarter were US$59.694 billion, an increase of 13.1% over last year. Net income for the quarter was US$2.038 billion, up from US$1.622 billion. Net sales for the six-month period were US$114.654 billion, an increase of 13.7%.

Costco Wholesale Corp. reported net sales of US$2.96 billion for July, up 10% from US$2.70 billion in July 2001. For the first 48 weeks of its 2002 fiscal year, the company reported net sales of US$34.97 billion, an increase of 11%.

The FBI, working with agents from the Securities and Exchange Commission, and a U.S. House subcommittee are gathering evidence as part of a probe into bankrupt Kmart Corp., to determine if charges should be laid against any Kmart executives following the retailer’s Chapter 11 filing last January.

Don Fawcett has joined Ingersoll-Rand Security and Safety as national accounts sales manager. He was formerly with Scott’s. (905-278-6128)

The folks at Imperial Manufacturing Group have asked me to clarify that Bill Mair‘s new role with the company is of a contractual nature only. He comes to IMG as an independent contractor to launch new marketing initiatives, not as a full time product manager. (506-523-9117)

Larry Mercer, executive vice-president in charge of store operations for Home Depot in Atlanta, will retire later this year. A 23-year company veteran, Mercer will remain with the company as an advisor to Home Depot CEO Bob Nardelli until February 2004.

Please note that Hardlines will be published on August 19. There will be no issues on August 5, August 12, and August 26. The World Headquarters remains open during this time however, as we prepare for our incredible Hardlines Conference Series in Toronto, September 12-13. – Michael

The survey, Benchmarking 2002, was conducted jointly by Hardlines Quarterly Report and the Canadian Retail Hardware Association and appears in the latest issue of Hardlines Quarterly Report. While it shows yearly improvement in the operations of hardware retailers and building centre dealers, another study in the same issue shows that the growth of independent dealers has kept pace with the growth of the industry overall, but has failed to increase its market share. Big boxes, meanwhile, have increased their share and now account for almost one-fifth of the overall market.

The latest issue of HQR also features the only accurate evaluation of the size of the home improvement market at retail, and breaks out the growth of five key retail formats within that market. This issue’s Retail Report considers the growth of buying groups in Canada, and their need to seek further consolidation to better compete against big boxes. An updated organizational chart of all the key buying groups, complete with their affiliations, provides a ready reference for figuring out the connections among the various groups.

HQR is dedicated to making sense of home improvement retailing today. Each issue is filled with the latest proprietary research that tracks the growth of the retail home improvement industry in Canada. To order, fax Nancy Wright at 416-489-6154, e-mail nancy@hardlines.ca or click here. Call Nancy at 416-489-3396 and ask how you can get HQR AND the Hardlines Industry Report and save $396!

In addition, experts on tax and export law will share tips to keep paperwork down and get sales up. The benefits of Canadian participation in the world’s largest hardware show, Practical World: the Cologne International Hardware Fair/DIY’TEC, will also be presented.

Any company looking for more international customers or greater access to global buying will benefit from this workshop. It includes practical tips on finding representation, meeting buyers and stickhandling the ins and outs of foreign business.

“Global selling: Tools for Opening Overseas Markets” is presented free of charge as part of the two-day Hardlines Conference Series, September 12-13, 2002. Day one features the Global Sales seminar in the morning, followed by the Retail Strategies Symposium in the afternoon. Day two features a full day of presentations and workshops in our Hardlines Marketing Conference.

For more information about the Hardlines Conference Series, September 12-13, 2002, call Nancy at 416-489-3396, nancy@hardlines.ca Click here to register.

Please note that Hardlines will be published only once next month, on August 19. There will be no issues on August 5, August 12, and August 26. The World Headquarters remains open during this time however, as we prepare for our incredible Hardlines Conference Series in Toronto, September 12-13. – Michael

The Vancouver, Edmonton, Calgary, Toronto, Ottawa-Hull and Montréal markets make up 48% of the retail industry in Canada, says the latest Major Market Retail Report from Kubas Consultants. The Toronto area alone comprises 17% of the national market, while Montréal accounts for another 11%.

Among shoppers surveyed, 75% said they have visited a hardware or home improvement store within last 12 months. Big boxes continue to stir interest, as 70% of shoppers said they’re “very” or “somewhat” interested in shopping at one. However, only 51% of shoppers aged 30-39 cared to venture into a power centre. And the appeal drops as shoppers get older: only a quarter of those aged 65 and older are interested in shopping at power centres.

More than 90% of Canadians shopped in a Canadian Tire store over the past 12 months, followed by Shoppers Drug Mart, Zellers, Wal-Mart and The Bay, says the survey.

The MMMR 2002 Report measures consumer confidence and shopping preferences. It’s based on a survey of 1,540 consumers aged 18 or more. Check out www.kubas.com for more info.

But Rona is prepared to exercise patience given the current poor performance of the stock market. “We’re going to look at the situation month by month and wait until all the planets are in alignment,” Dutton says. “However, I’m sure we’re going to be public before 2005.”

In addition, experts on tax and export law will share tips to keep paperwork down and get sales up. The benefits of Canadian participation in the world’s largest hardware show, Practical World: the Cologne International Hardware Fair/DIY’TEC, will also be presented.

Any company looking for more international customers or greater access to global buying will benefit from this workshop. It includes practical tips on finding representation, meeting buyers and stickhandling the ins and outs of foreign business.

“Global selling: Tools for Opening Overseas Markets” is presented free of charge as part of the two-day Hardlines Conference Series, September 12-13, 2002. Day one features the Global Sales seminar in the morning, followed by the Retail Strategies Symposium in the afternoon. Day two features a full day of presentations and workshops in our Hardlines Marketing Conference.

For more information about the Hardlines Conference Series, September 12-13, 2002, call Nancy at 416-489-3396, nancy@hardlines.ca Click here to register.

Wholesalers report good sales for June, though down modestly from May, according to the Canadian Institute of Plumbing and Heating. June sales were up an estimated 5% from June 2001 and year-to-date sales are up 10% from 2001. Business is up in all regions of Canada: Québec and Ontario are up an estimated 10%, while year-to-date sales in British Columbia are ahead 7%.

The Consumer Price Index advanced 1.3% in June from June 2001, after rising 1.0% in May, says Stats Canada. Just over half of the advance in June came from an increase in cigarette prices due to a hike in taxes.

Emco Ltd. announced it will not proceed with the acquisition of the wholesale waterworks supply business of bcgSERVICES Inc., a wholly-owned subsidiary of BC Gas Inc. Emco announced back in April that it had signed an agreement to acquire the business from BC Gas. However, the two sides couldn’t agree on the price and have terminated the agreement.

Net sales by Canfor Corp. in its second quarter were $577.1 million, an increase of $70.4 million over the previous quarter, largely due to higher lumber shipments, higher pulp prices and additional log sales on the B.C. coast. 2Q net income was $70.2 million, up from $10.1 million for the same period in 2001. Net income for the year to date was $81.3 million, up from $28.9 million a year earlier. Net income for the quarter benefitted from the reversal of $48.0 million in previously expensed countervailing and anti-dumping duties and a $10.0 million after-tax gain on the sale of a sawmill.

Sales for Doman Industries in the second quarter were $158.2 million, up from $214.8 million a year earlier. Sales in the first six months of 2002 were $290.0 million, compared with $434.7 million. EBITDA in the second quarter was $22.9 million, compared with $10.9 million in the second quarter of 2001.

Slocan Forest Products earned $43.4 million in the second quarter, up 73% from $25.1 million a year earlier, because of an accounting change that reflected refunded duties in the ongoing Canadian-U.S. softwood trade fight.

The board of directors of Emco Ltd. has decided to initiate a strategic alternatives review, as parent company Masco Corp. wants to sell off all or part of the 42.1% ownership it has in Emco.

Abitibi-Consolidated Inc. reported a drop in 2Q profits, which fell to $203 million from $232 million a year earlier, due to lower newsprint prices and fallout from the U.S. softwood lumber dispute. Sales for the second quarter fell to $1.39 billion, compared with $1.5 billion a year earlier.

The Canadian Hardware and Building Materials Show has added to its sales team: Lynn Cronin has been appointed sales associate. Cronin is a 17-year veteran of industry trade shows, including the National Home Show, the LBMAO’s erstwhile Canadian Home Centre Show, and the Ottawa Home Show … Jonathan Lee has also been named sales associate for CHS. He was most recently acting senior vice-president of Canada Cash Control. (905-821-3470)

The following appointments have been made at the power tool division of Robert Bosch Inc. in Canada: Greg Ferguson has been named brand manager – Skil Power Tools. He joins Bosch from Supplierpipeline, where he served as marketing manager … Bryan Sue has been appointed national account manager for Skil/Bosch, responsible for key customers, namely Wal-Mart, Home Hardware, Canadian Tire and Sears … Tony Varghese joins the company as product manager – accessories. Formerly with Rona/Lansing in Toronto, he has recently completed an MBA at McMaster University. (905-826-6060)

Michael Robitaille is no longer with Maxtech Manufacturing, where he served as sales and marketing manager. (519-885-5336)

Office Depot has appointed David W. D’Arezzo executive vice-president, merchandising at its Delray, FL head office. Formerly senior vice-president of merchandising for Wegmans Food Markets, he will be in charge of merchandising for the company’s retail, contract, catalogue and e-commerce businesses. (561-438-4930)

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

Surrey, BC – While its member sales remain steady, the greatest growth by Irly Distributors has been to its non-member customers.

Irly’s wholesale division has grown quietly over the past several years, to the point that Irly now ships to 82 accounts in British Columbia. In 1997, it had only 16 such customers. The growth has not just been organic. Irly is devoting more energy to cultivating this business, to the point of adding a dedicated sales person on the road, complementing the efforts of the existing team.

While buying groups that do their own warehousing are more common in Québec, the practice is almost non-existent elsewhere in the country. That makes Irly unique. From a 185,000-sq.ft. warehouse, it ships most of its product to its 56 member stores, which operate under the name Irly Building Centres.

Stuart Joule, executive vice-president and general manager of the group, says Irly’s local 24-hour delivery service has appeal for a growing number of dealers, including those with other affiliations.

“They’re doing it very simply for convenience. We’re pricing very aggressively and we’re convenient,” he says. “Shipping from the east can take four to five days.” Back orders can end up taking weeks to refill. “When a retailer has an empty shelf, he wants it filled,” Joule adds, noting that Irly’s fill rate is running at more than 96% this month.

By shortening lead times for replenishment of high-moving items, Irly has established itself as a handy alternative. The most popular products shipped are hardware, paint and adhesives. They also ship “bits and pieces of lumber. We’ve seen an opportunity as wholesale activity of our competitors in the province has centralized back to Ontario,” he says.

Calgary, AB – With its focus on “non-retail,” Allroc Building Products Ltd. is enjoying growth of its membership, half of which is gypsum supply dealers. However, the privately owned buying group is looking for a mix of both GSD and traditional building centres.

The focus, says Bob Hancock, vice-president of purchasing, sales and marketing, is on gypsum and related products, both to GSD and traditional building centre customers. In fact, about half the group’s 95 members are building centres, often with a strong commercial orientation.

Allroc recently added two stores in the West, one in Grande Prairie, AB and in the U.S., in Bloomington, MN. That’s the eighth Allroc member south of the border. Six of those stores are part of Winroc Corp., Allroc’s wholesale arm, and in a nice bit of vertical integration, one of the group’s largest members.

Ron Kent, operations manager, Allroc East, says the U.S. expansion is important to the group. “It’s a trend in the U.S. Buying groups are growing there. They’re not as widespread in the U.S. as they are here. They’ve operated more as associations in the past. They haven’t really maximized their buying power.”

Kent says buying groups serve the industry much more effectively in Canada than in the U.S. The smaller size of the Canadian market has made pool buying more necessary.

Allroc is also adding stores in the East. Two of them were recently signed in Northern Ontario, Cochrane and New Liskeard, putting the total number of Allroc members in that province past 20. In Atlantic Canada, a couple of key accounts are expected to be signed in the coming months.

Growth in 2003 is expected to reach 1.6%, followed by 1.3% in 2004. Because of Voisey’s Bay, Argentia, and White Rose, Newfoundland and Labrador will experience the strongest construction growth of all provinces. Rising interest rates, coupled with reluctance by the private sector to invest in capital structures, will contribute to the slowdown in coming years.

TruServ Canada Cooperative Inc. has created a new logo that incorporates a stylized Canadian maple leaf in place of a five-pointed star. The new look reflects the 100% Canadian ownership of the Winnipeg-based co-op since it repatriated ownership from TruServ Corp. in Chicago in October 2001.

West Fraser Timber reported 2Q earnings of $71 million on sales of $420 million, compared with earnings of $78 million on sales of $416 million in 2Q 2000. The earnings for the quarter include a reversal of duties of $17 million related to the softwood lumber trade dispute. However, earnings for the first half of 2002 were $98 million on sales of $800 million, up from $74 million on sales of $791 million in the first half of 2001. The company showed a loss on discontinued operations for the sale of its Revy division, but still has some real estate to sell off.

Total revenues for Sears Canada in its second quarter ended June 29 were $1.593 billion, a 0.5% increase over $1.585 billion last year. Merchandise sales increased 0.7%, but same-store sales fell 3.0%. Earnings reached $24.8 million, compared with $8.8 million last year.

On sales of more than $900 million, Shoppers Drug Mart made $40.9 million during the three-month period ended June 15, more than double the $17.6 million of a year earlier.

For the year ended May 31, The Jean Coutu Group had sales of $3.6 billion, compared with $2.9 billion for the same period last year, an increase of 22.6%. Net earnings reached $139.9 million.

Bill Mair has joined the Imperial Manufacturing Group as product manager – venting categories. Mair was previously national sales manager – retail division with Kanalflakt Inc. He reports to Richard Lépine, executive vice-president, sales & marketing. (506-523-9117)

Fred Archer is no longer with Balmer Studios, the retail division of the Balmer Group of companies, where he had served as president. (He can be reached at 416-458-9629)

Wholesalers sold $34.5 billion worth of goods and services in May, a drop of 1.2% from the previous month, says Stats Canada. However, May’s decline follows six months of consecutive growth. Both the hardware, metals and plumbing and heating category and lumber and the building materials category were down 1.3%. However, these categories were up year over year (2.6% and 6.8% respectively).

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Ajax, ON — Since losing its largest member to Rona last year, the Independent Lumber Dealers Co-operative continues to search quietly for new dealers to add to its elite ranks.

The buying group traditionally operates with a maximum of about 24 members, and the roster currently stands at 22. “We might have room for one or two more,” says ILDC general manager Andrew Battagliotti. And given the gap in Western representation left by Revy’s departure, the search continues in the West, a search that includes talking to members of other groups.

“With Revy no longer in the picture, we needed Western involvement and that hasn’t changed,” he says, even after the addition of three new dealers: Totem in Calgary, McMunn & Yates in Brandon, MB and J&H Builders Warehouse in Saskatoon, SK.

Given the strength of residential construction across the country, Battagliotti says his members report consistently healthy sales for the first half of this year. “Construction has been going forward full blast and our guys are really busy.”

Winnipeg — Talks with dealers to establish benchmarks for selling to the changing Canadian consumer have been completed by TruServ Canada Co-operative Inc. The 17 workshops, involving 95 dealers, marked the end of phase one of TruServ’s X-Sell Program. Now its time for action planning, says Ray Falkenberg, vice-president business development and marketing.

The program includes three key initiatives for the dealers. The first is a repositioning program, to help them increase flagging sales with a “back-to-basics” approach to store operations. The repositioning is built on the tenet that True Value stores are “your convenient total hardware store.” The program gives dealers tools to strengthen or re-establish their position as local, community involved merchants that offer know-how to guide customers through convenience “fix-up” purchases.

A financing package has been developed to help dealers underwrite the costs of revamping the store. Falkenberg notes that a number of the co-op’s key members have bought into the program already.

The purpose, of course, is to reposition the store and boost its revenue. When that happens, dealers involved in the program participate in a rebate program that awards incremental sale increases. “It becomes a pretty lucrative package for them,” says Falkenberg.

The first of the new stores will open in Thompson, in a 27,000-sq.ft. former Safeway location, and will be the first Giant Tiger in Manitoba.

The following changes have been made at CanWel Distribution‘s Brampton customer service centre: Ron Gordon has been appointed dealer account manager for Eastern Ontario. Prior to joining CanWel, he spent four years with Faber Castell as a territory manager … Tim Victor has been named key accounts manager, Ontario region. He will be responsible for growing flooring products with key flooring and underlay accounts in the Greater Toronto Area … Kelly MacLean is now inside sales representative focusing on flooring sales and promotion. MacLean was formerly an assistant manager with Central Fairbank Lumber … Jeff Boutilier is now inside sales representative focusing on dealer accounts. He was formerly with Jas Canada. (905-457-8500)

At Pyrene Corp., Carol Heller has been appointed vice-president residential products, Kidde Safety Canada, effective immediately. Her experience in the consumer packaged goods industry includes stints with Dimplex North America and Danby. (905-940-8080)

David Day has left his post as manager of public relations and communications at Home Depot‘s Canadian division after four years there. He is joining Temple Scott, a public affairs company based in Toronto and Ottawa, as vice-president.

London Drugs is making its first foray into Saskatchewan with two planned openings in Saskatoon. The first, a 35,000-sq.ft. store, will open on Eighth Street East on August 13. The second is scheduled for completion in the Winter of 2002, and will be located in the Lawson Heights Mall on Primrose Drive. London Drugs’ existing 55 stores are all in British Columbia and Alberta.

Home Depot‘s Canadian division has confirmed some new locations: Thunder Bay and North Bay, ON and Lethbridge, AB are all scheduled to open sometime in 2003, while Prince George, BC is “a possibility,” says Home Depot Canada prez Annette Verschuren. In addition, rumours are heating up about Moncton, NB again, with a possible late Fall 2002 opening. I’ll let you know when I hear more.

Independent bank Rothschild & Cie has ruled that British retailer Kingfisher‘s £3.2 billion takeover bid for French DIY chain Castorama is fair. The ruling gives the go-ahead for Kingfisher’s proposal to pay 67 euros a share for the 45% of the French group it does not already own. Castorama, owner of B&Q in Britain and Brico Depot in France, is the largest DIY retailer in Europe, with 549 stores. Kingfisher took a 55% stake in 1998 through a merger of Castorama with Kingfisher’s B&Q.

Canfor Corp. has filed a statement of claim as part of its claim against the U.S. government under Chapter 11 of NAFTA. Canfor alleges that U.S. treatment of Canadian softwood lumber suppliers during the dispute was “arbitrary, unreasonable and discriminatory,” and claims Canfor was particularly subject to such treatment.

Claiming it’s cheaper to rent than buy, Home Depot has announced the installation of its 500th tool rental centre. There are now tool rental centres in nearly 40% of Home Depot’s 1,400 stores, which the retailer hopes will help the chain deepen its relationship with contractors.

The U.S. feds have slapped a lawsuit on three companies involved in the sale of a weed trimmer head, the Weed Wizard, one of which was responsible for the death of a three-year-old girl. Meanwhile, the product has been outright banned elsewhere. The companies named are Gardener Inc., U.S. Home And Garden Inc. and Weed Wizard Acquisition Corp.

A survey of 14 Home Depot stores in Michigan found that up to 55% of items lacked individual price tags, violating the state’s pricing laws. Now the company must pay US$500,000 in fines. It must pay half now, but the rest will be waived in 2004 if state inspectors find that Home Depot has complied with the law.

Housing costs in Canada continued to rise in May, says Stats Canada. The index of contractors’ selling prices increased 4.2% from May 2001. The largest monthly advance was in Victoria (+3.4%), due to material costs, high demand and low inventory. Kitchener-Waterloo followed with an increase of 2.2% for May, due to material costs and a skilled labour shortage.

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In 2001, sales of hardware and building materials products by all hardware stores, building centres, department stores and co-ops in Canada grew from 26.2 billion to $28 billion. During that time, big box market share grew from 17.4% of the market to 18.6%. but sales by Canada’s home improvement buying groups, which represent the lion’s share of sales by independents in this country, actually fell from 35.1% of the market to 31.9%.

Over the past five years, big box market share has almost doubled in size, from $2.6 billion in 1997 to $5.2 billion in 2001. During the same period, market share by Canada’s buying groups has fallen to less than one-third.

Sales by all building centre dealers, including the buying groups, still comprise the largest single sector of the retail home improvement industry, however.

(A more complete analysis of buying groups in Canada appears in the 3Q edition of Hardlines Quarterly Report, available soon. – MM)

The pro initiative consists of a number of programs to boost Home Depot’s appeal to the trades. They include adding up to seven sales people to each store, and offering services such as enhanced credit terms and accelerated order picking and delivery.

Home Depot has also tested a program in its Ontario stores carrying the pro initiative that makes those stores points for filing insurance claims and getting the repair work executed. The program, in conjunction with State Farm Insurance, enables Home Depot to facilitate the claims process and provide the necessary contractors to perform the work to repair and restore the damaged property.

Spurred by a strong economy and brisk sales, Verschuren expects sales to contractors to continue, despite the bad weather in the Spring. “Business is great. I’m amazed,” she says. “The economy is strong – the strongest I’ve seen it for a long time.”

Brampton, ON – With an eye to increased sales growth, CanWel is beefing up its inside sales forces across the country. The wholesale distributor of building materials keeps adding new products, requiring more customer service from the inside. Those products include an expanded range of proprietary brands, especially in the growing sector of specialty flooring.

However, says Mike Piggott, inside sales manager for CanWel, the addition of new products is selective, with the emphasis on a few better quality products that will set the two-stepper apart – and give its dealers better margins.

Expansion of the sales team has meant more time spent on training. But that training extends to the end users, as well. For example, contractor appreciation nights organized by CanWel are held at the dealer level, to educate the installers about the latest technologies in flooring and siding.

CanWel, which is owned by Doman Industries and headquartered in Vancouver, BC, has 13 distribution centres and sales teams across Canada and annual sales in excess of $600 million.

Goodfellow recorded its best quarterly results ever for the third quarter ended May 31. Net earnings rose to $4.3 million from $1.7 million a year earlier and included a reversal of a provision for softwood lumber duties of approximately $620,000 after tax. 3Q sales increased 14% to $144.7 million, from $126.6 million. Year to date, sales totalled $355.6 million versus $325.5 million, an increase of almost 10%. Net profit jumped 95%, from $2.8 million to $5.6 million.

Hudson’s Bay Co. will expand its Home Outfitters format into British Columbia with the addition of five new Outfitters locations across the province, bringing the total number of these specialty kitchen, bed and bath décor stores in Canada to 38 by the end of 2002.

In its first quarter ended May 31, MAAX Inc. saw sales increase 20.2% to $161.9 million, compared with $134.7 million in the first quarter of last year. Income before amortization of goodwill rose 44.1% to $10.8 million, up from $7.5 million. Net profit margin reached 6.7%, up from 5.6% a year earlier.

Home Depot Inc. has become the number-two retailer in the U.S., according to a new tally by Stores magazine. With US$53.55 billion in sales, Home Depot edges ahead of grocer Kroger Co., which had US$50.1 billion in sales. Wal-Mart Stores stays firmly ensconced in first place, with nearly US$220 billion in sales, according to the rankings for 2002.

Department store sales in May declined 2.5% from April to $1.73 billion seasonally adjusted, says Stats Canada. Even with this decline, department store sales for the first five months of 2002 were up 7.8% over the same period in 2001. Unadjusted for seasonality, department store sales advanced 6.3% in May from May 2001. During the same period, sales rose in all provinces. The largest increases were in Nova Scotia (+14.6%) and Newfoundland/Prince Edward Island (+11.6%). Alberta, Québec, and British Columbia and the territories followed, each posting a year-over-year increase of at least 7.0%.

Canada’s rate of unemployment fell to 7.5% in June from 7.7% in May, thanks to the addition of 66,000 new jobs, says Stats Canada. Since the job rebound began in January, employment has increased by 2% to 303,000. Full-time employment is up 199,000, or 1.6%, while part-time employment is up 104,000, a 3.8% increase.

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Taking some lessons from its now-defunct Villager’s Hardware concept, the Brooklyn store is the first of Home Depot’s so-called urban neighbourhood stores. Another is scheduled to open on Staten Island, NY in September.

Designed as convenience-oriented fill-in stores between full-sized Home Depot outlets, the urban outlets offer about 70% of the 45,000-50,000 SKUs found at a regular Home Depot. Many building materials categories, such as flooring and faucets, are sold mostly on a special-order basis, with deliveries made from a nearby full-sized store. Assortments of other products are tightened up, while products that cater to home maintenance and organization, such as cleaning and storage, have been expanded.

“The store in Brooklyn is doing amazingly well,” Verschuren says. “I’m really excited by it.”

Verschuren wants to start immediately to develop urban stores in Canada, and is eagerly on the lookout for appropriate real estate, especially in Toronto and Vancouver, ranging from 60,000-80,000 sq.ft. Ideally, she says, she wants existing retail sites with 150-200 parking spaces. “It’s amazing, the opportunities for downtown space,” she adds.

She’s also considering developing smaller stores that will fit into new, smaller markets. The smallest so far is Owen Sound, at the bottom of the Bruce Peninsula in Central Ontario. But she sees an opportunity for a smaller footprint for traditional stores, something Home Depot has resisted so far. Already, stores slated for small communities, including North Bay and Thunder Bay, ON and Lethbridge, AB – all for next year – are problematic, given the population size and demographics.

“I have to make a decision in places like North Bay,” Verschuren says. “Do they get a 60,000 or a 90,000-sq.ft. store. While a smaller one will ensure a quicker return on investment in a small community, it may also leave Home Depot vulnerable. “I don’t want to put a smaller store in one of those locations, then have a competitor put in a bigger store.”

Despite the potential for smaller footprints, Verschuren remains committed to Home Depot’s current expansion. “Brooklyn is really a good idea, but I’m still going on with a very aggressive big store program.” She still expects 120 of them in Canada before she’s done, and will end this year with 89 across the country. There are currently 83 in place.

Nor will Home Depot move ahead with its Expo format in Canada for at least a year. Expansion will continue in the U.S. of the large, upscale décor-oriented Expo stores for the next couple of years, but plans for Canada have yet to be firmed up.

Melbourne, Australia – Mitre 10 in Australia plans to take on Bunnings Building Supplies, currently the sole big box retailer in Australia, with large-format stores of its own. The dealer-owned co-op has 900 members in Australia and New Zealand. They operate under three different Mitre 10 banners — Handy, Solutions and Home & Trade — which are convenience hardware, traditional hardware and building centre stores respectively.

Mitre 10 appears to be following the lead of Rona Inc., a fellow member of the international association of co-op retailers, Interlink. According to New Zealand Hardware Journal, Mitre 10 will develop the new stores with individual dealer investment with the hope of attracting additional interest from outside investors.

World Headquarters, Toronto, ON — Controlling the high cost of staff turnover and profiting from the power of your company’s brand are just two of the breakout sessions confirmed for the Seventh Annual Hardlines Marketing Conference.

The Conference, which will be held September 13, 2002 in Toronto, will feature a day long series of presentations from key retail executives from across North America. These front-line insights will be rounded out by a series of three concurrent breakout sessions.

Learn how to leverage effectively your banner or your brand name through a sound branding strategy, in the presentation by Brandid. This Toronto-based brand consultancy and design studio specializes in consumer packaged goods. Delegates will learn how to define a brand, create a strategy and develop tactics to maximize your ROI.

Wolf Gugler, of Wolf Gugler & Associates, and self-appointed dean of home improvement executive search, will be joined in another breakout by Brenda Dumont, an executive search consultant who started Canadianretail.com, an online recruitment service specializing in the retail sector. Both will provide tips on recruiting smart to keep turnover down, and insights into how to get the best out of your team.

Using strong corporate communications increase sales is the topic of the third breakout. Good PR has typically been the strength of U.S. retailers. It’s just one more part of the business that any company needs to sharpen in order to compete effectively. The seminar will provide some tips that will help retailers and vendors alike to increase their sales.

Now in its seventh year, the Hardlines Marketing Conference attracts almost 200 senior executives and managers from the retail and supply sides of home improvement retailing. Other speakers booked for the day include Greg Thomas of Alliance International LLC, Paul Ingevaldson of Ace Hardware and David Ford of the Council of Forest Industries.

For more information, call us at 416-489-3396, or check out hardlines.ca/html/conference_upcoming.html.

For the three-month period ended May 31, 2002, Richelieu Hardware‘s sales reached $70.0 million, up 18% over the previous year, including 14% from internal growth. EBITDA rose 19% to $9.4 million. Sales in the first six months of the year were up 17% the same period in 2001, reaching $123.9 million. Net earnings for the first six months grew by 27%, rising to $8.4 million.

Lost or stolen Home Depot gift cards will be replaced at no charge, following complaints to the Attorney General’s office in New York State. The issue came to light after a woman lost a card with almost US$2,000 in credit left on it. She had been told the company had no policy to return or replace the card, unlike regular credit cards.

Wal-Mart workers are feeling beleaguered by the demands of the job – after they’ve punched out for the day. Company policy forbids it, yet many staff and managers have reported an “unwritten policy” of demanding extra unpaid work from staff to cut costs. Most full-time workers earn less than US$8.50 an hour, or about US$17,680 a year. Wal-Mart has already settled with one group of 67,000 workers in Colorado.

The federal and Alberta governments will contribute $67.12 million each to facilitate the development of affordable housing in high need areas of the province. The sixth deal the feds have signed in as many months, the funding will be used for provincially designed programs that support affordable housing for low-income families and individuals with special needs.

Gross domestic product surged ahead 0.8% in April. With a temporary hold on softwood duties to the U.S. during that time, wood product manufacturers pushed up production 8.7%, resulting in record output levels. Capacity utilization rates of the wood product manufacturers ran at 85.5% during the first quarter. Sawmill producers provided the single largest push in April, as production surged 12.8%.

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Bedard is general manager of Canac-Marquis Grenier, a 12-store chain considered by many to be one of the most progressive home improvement retailers in the country. Home Depot is planning to open its first two stores on Canac-Marquis Grenier’s turf by late Fall of this year. Bedard is not too worried. Réno-Dépôt has been in Québec City seven years and last Fall opened its third store there.

Home Depot, however, has faced some cultural dissonance since its invasion of this province last year.The eight stores in the Montréal area are battling against a total of 21 big boxes in that area. In Québec City, says Bedard, the Home Depot name will have very little consumer awareness. So when Home Depot gets here, says Bedard, “They will be seen as just another big box store.”

Bedard admits the big boxes do make a difference. He remembers when Réno-Dépôt arrived. “The novelty of having Réno-Dépôt here, in 1995, made a big impact.” Two Canac-Marquis Grenier stores in the West end of the city, very close to the site of one of the two proposed Home Depot stores, will undoubtedly be affected, he says. But despite the big box invasion, Canac-Marquis Grenier’s sales grew more than 15% last year to $115 million.

The company was taken over by management in 1993, and a year later went public with an IPO that went toward further expansion of the chain. It bought up W.H. Perron, a Montréal-based retailer with two stores. Those grew to eight outlets under White Rose’s ownership, while the White Rose banner grew to 34 throughout Ontario by the late ’90s.

But the cost of expansion, coupled with the entry of other retailers, such as Home Depot and Canadian Tire, into gardening, plus the arrival of Michael’s on the crafts side, finally caught up to White Rose, and by 1998 it was no longer able to meet its credit commitments, filing for bankruptcy protection. Under the reorganization, it closed two warehouses, two Ontario stores and all eight of its Québec stores.

By 2000, sales had grown to $139 million, but its losses exceeded $9.3 million. Then, last year, under then-president Howard Board, who had worked for Peoples Jewellers during its bankruptcy protection battle, it repositioned to offer more home décor products, closing one store and renaming the remaining stores White Rose Home and Garden.

It wasn’t enough, however. White Rose’s loss narrowed to roughly $6 million for its last fiscal year, ended July 29, 2001, as sales slipped to about $130 million. Now, with a debt load of more than $173 million, the company will operate day to day until a buyer can be found.

World Headquarters, Toronto, ON — Executives of two of Canada’s most innovative specialty retailers, plus the vp of one of the country’s top LBM wholesalers, will round out the next Hardlines Marketing Conference.

Bill Morrison, general manager of Home Outfitters, is heading up an aggressive expansion plan by parent company Hudson’s Bay Co. to double the number of its specialty décor and home furnishings outlets over the next three years. Morrison joins Leonard Lee, whose presentation at our 1998 conference drew resounding praise. Lee is the head of Lee Valley Tools, a specialty woodworking and garden supply company with catalogue sales and retail outlets across the country.

And just confirmed: Jim Bradshaw, vice-president building products for Taiga Forest Products Ltd., has agreed to talk about the challenges and opportunities facing building materials distribution today.

In addition, Albert Plant, national market manager, consumer products and retailing with RBC Royal Bank, will share his insights into the growth and consolidation within this industry, plus effective survival tactics for any retailer today. He’s got a truly unique perspective as someone who was integral to many of the backroom negotiations that have been made over the past decade.

The Hardlines Marketing Conference will be held September 13, 2002, and attracts almost 200 senior executives and managers from the retail and supply sides of home improvement retailing. Other speakers booked for the day include Greg Thomas of Alliance International LLC, Paul Ingevaldson of Ace Hardware and David Ford of the Council of Forest Industries.

For more information, call us at 416-489-3396, or check out hardlines.ca/html/conference_upcoming.html.

Once sold exclusively through specialty dealers, Deere & Co. has signed an agreement allowing Home Depot to sell John Deere lawn and garden tractors starting next spring. In addition, Deere will stop making its Scotts and Sabre brands. Currently, Home Depot has an exclusive on the Scotts brand.

The board of directors of Taiga Forest Products has announced it will seek approval for a two-for-one share split at its annual general meeting on July 24.

A 20-year-old policy by Home Depot in Atlanta has come back to haunt it during these intensely patriotic times in the U.S. The home improvement retailer doesn’t want to get involved in all the extra paperwork required by government contractors, so it doesn’t want to sell to the government. One of the things Home Depot would have to do is provide documentation of its affirmative action compliance. Maintenance Warehouse was a significant federal contractor until taken over by Home Depot in 1997.

Taymor Industries Ltd. has donated more than $50,000 in bath hardware to Habitat for Humanity Canada. The donation will provide Habitat with enough bath accessories to outfit 350 homes.

Wal-Mart Canada will open a store in Fort St. John, BC in the Fall of 2002. The 84,000 sq.ft. free-standing store will represent an investment of just under $20 million in the local community

The 2003 DIY & Garden Show is to move to Earls Court in West London, England, because it’s better known and enjoys better proximity to major transportation links. The show, which attracts companies from 30 countries, will take place January 26-28, 2003. For more information, contact: Christopher Leonard-Morgan, clm@firstevents.com; www.diyandgardenshow.com.

Kmart Corp. is making big changes to its online shopping site, including renaming it from www.bluelight.com (the name of its wholly owned subsidiary that runs the site) to www.kmart.com. The website now features an updated look and more products.

Well, nobody else has told us about anybody on the move, but the jazz festival is on in Toronto, so I’ll be on the move. I was thinking of heading downtown to catch some music this weekend… (whatever, enough space-wasting drivel — Editor)

Housing starts in the U.S. were up 11.6% in May, the biggest jump in seven years, says the U.S. Commerce Department. Single-family starts were up 9.6%.