Archives

July15_02

 

  vol. viii, #28 July 15, 2002

* ILDC remains eyes new membership opportunities
* TruServ unfolds repositioning program, rebates for dealers
* Home Depot announces new sites in smaller markets
* North West forms alliance with Giant Tiger

 

“I can sympathize with everything, except suffering.”
– Oscar Wilde (1854-1900)
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

ILDC CONTINUES SEARCH FOR NEW MEMBERS
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.”

TRUSERV IMPLEMENTS REPOSITIONING PROGRAM FOR MEMBERS
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.

NORTH WEST CO. AND GIANT TIGER FORM
WESTERN ALLIANCE
Winnipeg, MB — Under a “master franchising agreement” with Ottawa-based Giant Tiger Stores Ltd., North West Co. will roll out a series of Giant Tiger junior discount emporiums through Western Canada. The deal follows a year-long test of two stores; their success has convinced management to continue the plan. North West foresees a positive customer response to Giant Tiger’s discount fashions, food, home decor and seasonal products.

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.

PEOPLE ON THE MOVE
Steve Hall has left Home Depot Canada, where he was divisional merchandise manager, to join Zellers as vice-president, home and leisure. He reports to Bruce Dinan, senior vice-president, merchandising. (905-792-4400) Adolph Wolfe, manager of the Home Hardware Building Centre in Tillsonburg, ON, passed away July 7 following a brief illness. A former chair of the board with the Lumber and Building Materials Association, he leaves his wife Marge and two children.

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 LumberJeff 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.

NOTED
The Atlantic Building Supply Dealers Association has issued an information circular on Nova Scotia’s new paint recycling program. Effective June 1, leftover paint can be taken to “Enviro-Depots” throughout the province at no charge to consumers. Dealers, however, must now ensure that paint brands sold in their stores are properly registered under the program.
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.15 18.50 32.51
Canfor 11.70 8.08 11.05
Emco 12.77 3.71 11.75
Goodfellow 13.99 8.00 13.99
Home Depot 52.60 28.40 29.09
Hudson’s Bay 20.10 12.50 13.46
Lowe’s Cos. 49.99 24.99 40.18
Sears Canada 25.10 12.50 22.50
Sodisco-Howden 2.20 0.75 1.45
Taiga Forest 12.75 7.49 13.20
West Fraser 44.42 26.13 40.41
COMPANIES IN THE NEWS
AWARD and Castle Building Centres have scheduled their board of directors’ meetings around the Summer Convention of the Atlantic Building Supply Dealers Association, which will be held in St. John’s August 15-17, 2002. Some 200 delegates are expected to attend.

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.

MARKET INDICATORS
Housing starts in Canada slipped 0.6% seasonally adjusted in June to 202,100 units from 203,300 units in May, according to CMHC. Urban singles fell 4.4% to 102,500 units seasonally adjusted, from 107,200 in May, while urban multiple starts rose 5.0%. Estimated rural starts remained at a seasonally adjusted annual rate of 25,900 units.

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.

OVERHEARD
“Saskatchewan is an important part of Western Canada, and we have been looking forward to joining the Saskatoon community for a long time.” – Wynne Powell, president and COO of London Drugs, in a prepared release, on the first of two openings in Saskatoon.
ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report, available now, features: The Three Billion Dollar Club — find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

FIELD SALES MANAGER – EASTERN CANADA
Porter-Cable Delta, a recognized leader of quality woodworking, portable electric, equipment and air tools products, currently requires an enthusiastic professional as Field Sales Manager – Eastern Canada.

A resourceful individual able to organize and communicate successfully, you will direct the industrial sales operations for Eastern Canada. A high achiever, you have a minimum of 5 years sales experience in the hardware, automotive and/or HVAC industry. Your minimum of 3 years supervisory experience, bilingual spoken and written skills (English/French) and exceptional computer literacy will allow you to direct the Eastern Canada sales force and key accounts to meet strategic objectives. You are located within commuting distance to Guelph, Ontario for weekly meetings (approximately 2days per week); you have a willingness to travel, a valid driver’s license and a post secondary degree/diploma preferably in Business.

If you are looking for a progressive organization and a competitive compensation package, please contact Wolf Gugler in complete confidence, quoting file number C-11. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite 300, North York, Ontario M3B 3N7. Phone: 416-386-1719 email: resumes@wolfgugler.com. web site:
www.wolfgugler.com

************************************************************************************

EXECUTIVE DIRECTOR, WRLA
Simpson McGrath Inc. has been commissioned by the Western Retail Lumber Association (WRLA) to assist in the appointment of a new Executive Director as the incumbent moves to retirement in early 2003. The effective date of the appointment will be December 1, 2002.

The WRLA is a Not-for-Profit Association whose mission is to serve the needs and promote the common interests of the Canadian Lumber Building Materials and Hard Goods Industry on the Prairies (See www.wrla.org for additional detail). Founded in 1890, and now with 472 Retail Members and 264 Associate Members, WRLA is poised for a new era of growth. It is expected that the Annual Prairie Showcase, Trade Show and WRLA Convention will continue to be dynamic cornerstones of the Association’s future along with its scholarship and educational initiatives.

The Executive Director is the Chief Operating Officer of the Association and is expected to provide leadership and direction while nurturing and serving Association interests. Major responsibilities include the following:

· Direction and management of all WRLA major functions including internal affairs, the Annual Prairie Showcase and Trade Show, special events, services to members and the uniquely important educational and training programs
· Management of external communications and support of WRLA Board functions.
The successful candidate for this position will be able to demonstrate a combination of the following qualities and characteristics:
· Demonstrated ability to lead and manage a dynamic organization
· Personal and professional integrity of the highest order
· A sense of urgency and orientation to the task at hand, and a proven team player.

Resumes should be forwarded to Simpson McGrath Inc, 1780 Wellington Avenue, Suite 99, Winnipeg, Manitoba, Canada, R3H 1B3 Telephone direct line (204) 940 – 3420 confidential facsimile (204) 940-3429; E-Mail smi@mim.ca Confidential enquiries are welcome and should be directed to Mr. Leslie A. Johnson, CMC.

************************************************************************************

CUSTOMER SERVICE SUPERVISOR
Position available for a Customer Service Supervisor, 5-7 years supervisory experience in a corporate customer service environment, familiar with SAP, JD Edwards or Oracle, bilingual French an asset. team environment with a
world leading brand manufacturer located on the Mississauga/Oakville border.
Please email resume with salary requirements to tmedeiro@mlock.com

***********************************************************************************

AGENT WANTED:
Kempston Canada Ltd., a router bit supplier, is looking for an agent with pioneering spirit to build B.C. and Alberta territory. Please reply to national sales manager by fax: 905-513-7924 or email: sales@kempston.ca

***********************************************************************************

GENERAL MANAGER – ATLANTIC:
Come Build with Our Team!
Every great venture begins with great leadership and with great leadership, a winning team sets records. CanWel, one of Canada’s leading national distributors of building materials and related products, seeks an individual with outstanding leadership skills and drive to spearhead their Atlantic Business Unit as General Manager. Based in Dartmouth, NS you will lead a seasoned team and direct the strategic/business initiatives critical for success in this market place.

To further investigate, please contact Chris Schulz at 902-423-1657, cschulz@StaffingStrategists.com
www.canwel.com

***********************************************************************************

REGIONAL SALES MANAGER:
We are a Canadian company in the decorative accessories business with established customers in Canada and the USA; searching for a seasoned bilingual professional to help manage and grow the business in Canada with a focus on the Quebec market. This candidate will build upon strong relationships with major and national retail accounts — developing and implementing; sales development, category management, promotions, and forecast/budget planning.
This position offers an attractive salary and sales incentives, a benefits package; based on experience, knowledge, and ability to succeed in sales. Please forward your interests c/o bev@hardlines.ca (To assure strictest confidence, put “Box 400” in subject line).

***********************************************************************************
BUSINESS OPPORTUNITY

Where Manufacturing & Retailing…Deal Direct”™

STRATEGIC INVESTOR WANTED
MFG2D is the new distribution alternative. We provide a logistics and marketing link between manufacturers and retailers. Our model reduces procurement costs by retailers and offers manufacturers a cost effective and secure channel to get their products to market. We are looking for forward thinking industry participants that want to be involved in this exciting business.

For more information call Eric Smith at 1-866-844-2212 or go to http://www.mfg2d.com

***********************************************************************************

SERVICES OFFERED

MARKETING “AUDIT”
Get an independent assessment of your marketing programs. Assess your brand strategy, dealer programs and creative execution. Guaranteed to produce new ideas towards building a greater competitive edge. Cjohnston@synmark.net , phone: 905-849-4850.

Building brand equity through
strategic and creative programs that register.

***********************************************************************************

NORAL INSTORE
:

Don’t leave your products’ display management
to chance! Let Noral Instore take care
of your instore merchandising.

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201


**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
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July8_02

 

  vol. viii, #27 July 8, 2002

* Independents lose ground to big boxes
* Home Depot continues pro initiative in Canada
* Hudson’s Bay expands décor stores into British Columbia
* Residential construction intentions slow in May

 

“Set it down to thyself, as well to create good precedents as to follow them.”
– Francis Bacon (1561-1626)
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.
 

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

BIG BOX MARKET SHARE GROWS AS INDEPENDENTS LOSE GROUND
Toronto, ON — Independent building centre retailers are losing market share and, according to a new study by Hardlines Quarterly Report, that share is being grabbed up by the big box stores.

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)

HOME DEPOT EXPANDS PRO PACKAGE,
TIES IN WITH INSURANCE WORK
Toronto, ON – A major growth initiative of Home Depot in the U.S. is now taking off in Canada. With Home Depot’s pro initiative in 55 of its 83 Canadian stores so far, the company expects this segment to be a major growth opportunity.

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.”

CANWEL GEARS UP SALES TEAM, TRAINING
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.

NOTED
At Roblynn Home Hardware Building Centre in Oromocto, NB, customers can get 10% off their purchase on St. Valentine’s Day just by singing a love song over the PA system. This is only one of the many promotions that made store manager Tanya Hanson the only Canadian to win the National Retail Hardware Association‘s 2002 Young Retailer of the Year Award.
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.15 18.50 32.95
Canfor 11.70 8.08 11.09
Emco 12.77 3.71 12.24
Goodfellow 11.90 8.00 11.75
Home Depot 52.60 30.30 37.24
Hudson’s Bay 20.10 12.50 13.58
Lowe’s Cos. 49.99 24.99 44.89
Sears Canada 25.10 12.50 23.85
Sodisco-Howden 2.20 0.75 1.45
Taiga Forest 12.75 7.49 13.40
West Fraser 44.42 26.13 41.06
COMPANIES IN THE NEWS
Tanya Hanson, manager of Roblynn Home Hardware Building Centre in Oromocto, NB, was one of seven retailers to win the 2002 Young Retailer of the Year Award, and the only Canadian so named. She won in the over $2 million sales category, for increasing sales in the store by 70% since taking over from her father in 1997. The awards are co-ordinated by the National Retail Hardware Association in the U.S. and sponsored by the American Hardware Manufacturers Association, 3M Co. and American Tool.

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.


MARKET INDICATORS
The value of building permits issued by municipalities reached $3.6 billion in May, down 7.6% from April, according to Stats Canada. Despite this decline, construction intentions remained high, with the value of permits surpassing $3.5 billion for the fifth consecutive month. The value of residential permits dropped 12.6% to $2.3 billion, largely the result of a marked decline in multi-family permits. However, after three consecutive monthly declines, the non-residential sector recorded a 3.3% gain in May to $1.3 billion. This advance was fuelled by a marked increase in the institutional component. From January to May, municipalities issued $18.7 billion in permits, up 13.6% from the same period of 2001. A tremendous advance in the residential sector (+37.0%) explained this increase.

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.

.

OVERHEARD
“Having a variety of formats has always been the strength of Rona and Home Hardware,” said Beverly Allen, head of marketing at the industry publication, Hardlines. “Home Depot is now coming in to challenge them.” – Our very own Bev quoted in the Financial Post on Friday, after the Post picked up the story that we ran in last week’s edition of Hardlines.
ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report, available now, features: The Three Billion Dollar Club — find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

EXECUTIVE DIRECTOR, WRLA
Simpson McGrath Inc. has been commissioned by the Western Retail Lumber Association (WRLA) to assist in the appointment of a new Executive Director as the incumbent moves to retirement in early 2003. The effective date of the appointment will be November 1, 2002.

The WRLA is a Not-for-Profit Association whose mission is to serve the needs and promote the common interests of the Canadian Lumber Building Materials and Hard Goods Industry on the Prairies (See www.wrla.org for additional detail). Founded in 1890, and now with 472 Retail Members and 431 Associate Members, WRLA is poised for a new era of growth. It is expected that the Annual Prairie Showcase, Trade Show and WRLA Convention will continue to be dynamic cornerstones of the Association’s future along with its scholarship and educational initiatives.

The Executive Director is the Chief Operating Officer of the Association and is expected to provide leadership and direction while nurturing and serving Association interests. Major responsibilities include the following:

· Direction and management of all WRLA major functions including internal affairs, the Annual Prairie Showcase and Trade Show, special events, services to members and the uniquely important educational and training programs
· Management of external communications and support of WRLA Board functions.
The successful candidate for this position will be able to demonstrate a combination of the following qualities and characteristics:
· Demonstrated ability to lead and manage a dynamic organization
· Personal and professional integrity of the highest order
· A sense of urgency and orientation to the task at hand, and a proven team player.

Resumes should be forwarded to Simpson McGrath Inc, 1780 Wellington Avenue, Suite 99, Winnipeg, Manitoba, Canada, R3H 1B3 Telephone direct line (204) 940 – 3420 confidential facsimile (204) 940-3429; E-Mail smi@mim.ca Confidential enquiries are welcome and should be directed to Mr. Leslie A. Johnson, CMC.

************************************************************************************

CUSTOMER SERVICE SUPERVISOR
Position available for a Customer Service Supervisor, 5-7 years supervisory experience in a corporate customer service environment, familiar with SAP, JD Edwards or Oracle, bilingual French an asset. team environment with a
world leading brand manufacturer located on the Mississauga/Oakville border.
Please email resume with salary requirements to tmedeiro@mlock.com

***********************************************************************************

AGENT WANTED:
Kempston Canada Ltd., a router bit supplier, is looking for an agent with pioneering spirit to build B.C. and Alberta territory. Please reply to national sales manager by fax: 905-513-7924 or email: sales@kempston.ca

***********************************************************************************

GENERAL MANAGER – ATLANTIC:
Come Build with Our Team!
Every great venture begins with great leadership and with great leadership, a winning team sets records. CanWel, one of Canada’s leading national distributors of building materials and related products, seeks an individual with outstanding leadership skills and drive to spearhead their Atlantic Business Unit as General Manager. Based in Dartmouth, NS you will lead a seasoned team and direct the strategic/business initiatives critical for success in this market place.

To further investigate, please contact Chris Schulz at 902-423-1657, cschulz@StaffingStrategists.com
www.canwel.com

***********************************************************************************

REGIONAL SALES MANAGER:
We are a Canadian company in the decorative accessories business with established customers in Canada and the USA; searching for a seasoned bilingual professional to help manage and grow the business in Canada with a focus on the Quebec market. This candidate will build upon strong relationships with major and national retail accounts — developing and implementing; sales development, category management, promotions, and forecast/budget planning.
This position offers an attractive salary and sales incentives, a benefits package; based on experience, knowledge, and ability to succeed in sales. Please forward your interests c/o bev@hardlines.ca (Put “Box 400” in subject line).

***********************************************************************************
BUSINESS OPPORTUNITY

Where Manufacturing & Retailing…Deal Direct”™

STRATEGIC INVESTOR WANTED
MFG2D is the new distribution alternative. We provide a logistics and marketing link between manufacturers and retailers. Our model reduces procurement costs by retailers and offers manufacturers a cost effective and secure channel to get their products to market. We are looking for forward thinking industry participants that want to be involved in this exciting business.

For more information call Eric Smith at 1-866-844-2212 or go to http://www.mfg2d.com

***********************************************************************************

SERVICES OFFERED

NORAL INSTORE
:

Don’t leave your products’ display management
to chance! Let Noral Instore take care
of your instore merchandising.

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201


**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

July2_02

 

  vol. viii, #26 July 2, 2002

* Home Depot on the lookout for smaller properties
* Branding, effective hiring techniques, spotlighted at executive conference
* Wal-Mart continues to battle with labour
* Australian retailer follows Rona’s big box lead

 

“I don’t want to make money. I just want to be wonderful.”
– Marilyn Monroe (1926-1962)
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

HOME DEPOT BEGINS SEARCH FOR SMALLER SITES
Toronto, ON – Home Depot in Canada is looking for smaller sites to launch neighbourhood stores here in Canada. Annette Verschuren, president of the Canadian division, checked out a pilot store in Brooklyn, NY at the suggestion of her boss, Home Depot CEO Bob Nardelli. She liked what she saw.

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.

AUSTRALIAN RETAILER FOLLOWS RONA’S BIG BOX LEAD
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.

BRANDING AND SMART HIRING HOT TOPICS
FOR HARDLINES CONFERENCE
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.

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.08 18.50 31.20
Canfor 11.70 8.08 11.15
Emco 12.42 3.71 12.69
Goodfellow 11.90 8.00 11.50
Home Depot 52.60 30.30 36.73
Hudson’s Bay 20.10 12.50 13.57
Lowe’s Cos. 49.99 24.99 45.40
Sears Canada 25.10 12.50 23.90
Sodisco-Howden 2.25 0.75 1.52
Taiga Forest 12.75 7.49 n/a
West Fraser 44.42 26.13 41.30
COMPANIES IN THE NEWS
Forestry giant Abitibi Consolidated is feeling the pain from the recently imposed softwood lumber tariffs on U.S.-bound timber. Three sawmills, all in Québec’s Saguenay-Lac St-Jean region, are slated to close indefinitely in July. Other facilities in Québec and British Columbia will also be affected. A total of 700 workers will be affected by those moves, which chops Abitibi’s annual lumber production by about 20%.

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.

PEOPLE ON THE MOVE
Exchange-A-Blade has announced the appointment of Andy Moncreiff as sales manager for Ontario and Atlantic Canada. An experienced and well respected sales executive, he brings with him many years of experience in our industry. (519-679-6760)
MARKET INDICATORS
Home sales may be slowing down, but they’re still setting records, says the Greater Toronto Home Builders’ Association. There were 5,093 new homes sold last month, 38% over May 2001 and the highest May on record. Freehold homes, which include single, semi-detached and town homes, made up 65% of the market, while condos accounted for the balance.

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%.

NOTED
The success of several companies that already enjoy a high profile in the hardware/home improvement sector was evident in their movement up the Globe and Mail ROB magazine’s Top 1000 list, which was published today. Canadian Tire moved up from 85 to 57 on the chart, while West Fraser Timber went from 94 to 72, Nu-Gro Corp. climbed from 369 to 343, Viceroy Homes leapt from 546 to 374 and Sico Inc. jumped from 420 to 325.
OVERHEARD
“He’s not interested, but thank you very much.” – a call back from the office of Robert Dutton, CEO of Rona Inc., after this intrepid reporter called to see if he wanted to buy the bankrupt White Rose stores and turn them into Botanix outlets.
ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report, available now, features: The Three Billion Dollar Club — find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

POSITIONS SOUGHT

GENERAL MANAGER – ATLANTIC
Come Build with Our TeamE Every great venture begins with great leadership and with great leadership, a winning team sets records.
CanWel, one of Canada’s leading national distributors of building materials and related products, seeks an individual with outstanding leadership skills and drive to spearhead their Atlantic Business Unit as General Manager. Based in Dartmouth, NS you will lead a seasoned team and direct the strategic/business initiatives critical for success in this market place

To further investigate, please contact Chris Schulz at 902-423-1657,
cschulz@StaffingStrategists.com www.canwel.com


NATIONAL SALES MANAGER/
MANUFACTURER’S AGENT AVAILABLE

Well respected, successful senior national sales executive available immediately to help you grow your key accounts. Skill set includes marketing manager and multi-line manufacturer’s agent credentials.
I have the skills to grow your sales to key accounts, with extensive experience servicing Home Depot, Canadian Tire, Sears, Home Hardware, Rona, Réno-Dépôt and all Canadian hardware buying group accounts. 10+ years experience successfully marketing brands. Let’s talk about how I can make your business grow. Reply in confidence c/o bev@hardlines.ca (put “Box 375” in subject line).

***********************************************************************************

HELP WANTED

AGENT WANTED:
Kempston Canada Ltd.., a router bit supplier, is looking for an agent with pioneering spirit to build B.C. and Alberta territory. Please reply to national sales manager by fax: 905-513-7924 or email: sales@kempston.ca

GENERAL MANAGER – ATLANTIC:
Come Build with Our Team!
Every great venture begins with great leadership and with great leadership, a winning team sets records. CanWel, one of Canada’s leading national distributors of building materials and related products, seeks an individual with outstanding leadership skills and drive to spearhead their Atlantic Business Unit as General Manager. Based in Dartmouth, NS you will lead a seasoned team and direct the strategic/business initiatives critical for success in this market place.

To further investigate, please contact Chris Schulz at 902-423-1657, cschulz@StaffingStrategists.com
www.canwel.com

REGIONAL SALES MANAGER:
We are a Canadian company in the decorative accessories business with established customers in Canada and the USA; searching for a seasoned bilingual professional to help manage and grow the business in Canada with a focus on the Quebec market. This candidate will build upon strong relationships with major and national retail accounts — developing and implementing; sales development, category management, promotions, and forecast/budget planning.
This position offers an attractive salary and sales incentives, a benefits package; based on experience, knowledge, and ability to succeed in sales. Please forward your interests c/o bev@hardlines.ca (Put “Box 400” in subject line).

***********************************************************************************
ASSOCIATION PRESIDENT
The Lumber and Building Materials Association of Ontario (LBMAO) is seeking a dynamic individual to fulfill the role of Association President.
The ideal candidate should have strong LBM Industry ties, general management experience and the proven ability to work with a volunteer Board of Directors.
Closing date for applications is July 12th, 2002. Resumes can be submitted to: Mr. Paul Sutter, Chairman of the Board, LBMAO, 5155 Spectrum Way, Unit 27, Mississauga, Ont. L4W 5A1

************************************************************************************
SALES PROFESSIONALS, BRAMPTON
CanWel, one of Canada’s leading distributors of building materials to the retail and industrial markets, is poised for growth. We are looking for motivated professionals to join our Sales Team at our Customer Service Centre. For the following opportunities, we are seeking results-driven and sales-oriented individuals with excellent communication, interpersonal and negotiation skills. Familiarity with the building materials industry would be beneficial.

ACCOUNT MANAGERS
You will apply your 3-5 years of sales experience and outstanding customer service skills towards managing a specified customer base in Ontario; maximizing profits; creating new sales opportunities.

INSIDE SALES REPRESENTATIVES
As part of our inside sales team, you will work closely with the Outside Account Managers/support staff and deal directly with customers to provide full service/sales support. You have: 1-3 years’ sales experience; strong organizational skills; excellent administrative duties.

FLOORING SPECIALIST
You will apply your 3-5 years of sales experience with hardwood, laminates and engineered flooring along with your outstanding customer service skills towards managing a specified customer base in Ontario; maximizing profits; creating new sales opportunities.
In return for your contribution, a competitive salary/benefits package is offered. Please forward your résumé, indicating the position title, by July 5, 2002 to:
Human Resources, CanWel Distribution Ltd., 15 West Drive, Brampton, Ontario L6T 3T5; email: michele_white@canwel.com; fax 905-457-3668.
We thank all applicants for their interest; however, only those selected for interview will be contacted.

***********************************************************************************

SALES REPRESENTATIVE — QUÉBEC REGION
Henkel Consumer Adhesives
, formerly LePage, Division of Henkel Canada Corporation, is a leading consumer adhesive and sealant company looking for an individual who enjoys a fast paced environment and thrives on exciting challenges. We are currently conducting a search for a Sales Representative in our Québec region who can contribute to our continued success.

Applicants should have experience in dealing with the big box stores. Have excellent communication and presentation skills and demonstrate customer relationship building and interpersonal skills. Must be fluently bilingual, written and spoken and have at least 1-2 years experience as a Sales Representative in the hardware channel.

Interested applicants are invited to fax their resumé in confidence to (905) 459-2791 or e-mail to:
stickwith.thebest@Henkel-Americas.com

************************************************************************************

SERVICES OFFERED

MARKETING “AUDIT”
Get an independent assessment of your marketing programs. Assess your brand strategy, dealer programs and creative execution. Guaranteed to produce new ideas towards building a greater competitive edge. Cjohnston@synmark.net , phone: 905-849-4850.

Building brand equity through
strategic and creative programs that register.

***********************************************************************************
LOOKING FOR REPUTABLE,
FOCUSED REPRESENTATION?

NORAL MARKETING
the manufacturers’ rep agency that
knows the Canadian retail customer!

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201


**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

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EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

June24_02

 

  vol. viii, #25 June 24, 2002 

* Independents brace for big box wars in Québec
* Alliance, Home Outfitters, Royal Bank join conference roster
* Taiga shares to split
* Sodisco-Howden gets Aeroplan loyalty program
* Bankrupt White Rose seeks buyer

“Imagine how weird phones would look if your mouth was nowhere near your ears.”
— Steven Wright (U.S. comedian, quoted in the New York Times)
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

QUÉBEC INDEPENDENT PREPARES FOR BIG BOX WAR
Québec City, QC — Despite not being a concern to consumers elsewhere in Canada, Guy Bedard is convinced customers in this city will care that Home Depot is a U.S. company.

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.

BANKRUPT WHITE ROSE SEEKS BUYER
Unionville, ON — Plagued for years by underfinancing and mounting competition, White Rose Crafts and Nursery Sales has declared bankruptcy, naming PricewaterhouseCoopers as trustee-in-bankruptcy. The chain of 31 stores specialized in live goods and garden sales, complemented by crafts sales. Founded in 1957, it continued operations in the original Unionville location right up to the end.

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.

SPECIALTY RETAILERS, LBM DISTRIBUTOR,
ROUND OUT CONFERENCE ROSTER
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.

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.08 18.50 32.10
Canfor 11.70 8.08 11.25
Emco 12.42 3.71 11.50
Goodfellow 11.90 8.00 11.00
Home Depot 52.60 30.30 35.67
Hudson’s Bay 20.10 12.50 13.30
Lowe’s Cos. 49.99 24.99 44.40
Sears Canada 25.10 12.50 22.10
Sodisco-Howden 2.35 0.75 1.44
Taiga Forest 12.75 7.49 12.25
West Fraser 44.42 26.13 41.30
COMPANIES IN THE NEWS
Hardware distributor Sodisco-Howden Group has made a deal with Aeroplan to offer Air Canada‘s air points loyalty program through its stores. Beginning later this year, Aeroplan members who shop at Sodisco-Howden’s franchised stores, PRO, Do-it center in English Canada, and Ferplus and Bâtitout in Québec, will get up to one Aeroplan Mile for every dollar spent.

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.

PEOPLE ON THE MOVE
Don Bilenduke has been appointed director of sales at Avant, the Mississauga, ON-based division of Hagen Pet Products. Headquartered in Montréal, Hagen sells pet supplies and water gardens to the mass merchant sector. (905-826-6699)

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)

MARKET INDICATORS
Except for drug stores (down 0.7%), retail sales in Canada advanced 1.0% in April to $25.5 billion, following two slow months of growth. All provinces except New Brunswick (-3.8%) and Nova Scotia (-1.6%) showed gains. In January and in the last three months of 2001, retail sales grew at least 1.3% each month. Sales by Canada’s large retailers were up in April from March by 6.5%. Sales of hardware and lawn and garden products, health and personal care products, and home furnishings and electronics were especially strong.

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%.

OVERHEARD
“There’s definitely interest and I think there’ll be more interest. We believe there’s a core business that ‘s viable here.” – Rick Pettit, senior vice-president of PricewaterhouseCoopers Inc., the trustee in bankruptcy for White Rose Crafts and Nursery Sales, on the possibility of a buyer emerging for the 31-store chain.
ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report, available now, features: The Three Billion Dollar Club — find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

POSITIONS SOUGHT

NATIONAL SALES MANAGER/
MANUFACTURER’S AGENT AVAILABLE
Well respected, successful senior national sales executive available immediately to help you grow your key accounts. Skill set includes marketing manager and multi-line manufacturer’s agent credentials.
I have the skills to grow your sales to key accounts, with extensive experience servicing Home Depot, Canadian Tire, Sears, Home Hardware, Rona, Réno-Dépôt and all Canadian hardware buying group accounts. 10+ years experience successfully marketing brands. Let’s talk about how I can make your business grow. Reply in confidence c/o bev@hardlines.ca (put “Box 375” in subject line).

***********************************************************************************

HELP WANTED

ASSOCIATION PRESIDENT
The Lumber and Building Materials Association of Ontario (LBMAO) is seeking a dynamic individual to fulfill the role of Association President.
The ideal candidate should have strong LBM Industry ties, general management experience and the proven ability to work with a volunteer Board of Directors.
Closing date for applications is July 12th, 2002. Resumes can be submitted to: Mr. Paul Sutter, Chairman of the Board, LBMAO, 5155 Spectrum Way, Unit 27, Mississauga, Ont. L4W 5A1

************************************************************************************
SALES PROFESSIONALS, BRAMPTON
CanWel, one of Canada’s leading distributors of building materials to the retail and industrial markets, is poised for growth. We are looking for motivated professionals to join our Sales Team at our Customer Service Centre. For the following opportunities, we are seeking results-driven and sales-oriented individuals with excellent communication, interpersonal and negotiation skills. Familiarity with the building materials industry would be beneficial.

ACCOUNT MANAGERS
You will apply your 3-5 years of sales experience and outstanding customer service skills towards managing a specified customer base in Ontario; maximizing profits; creating new sales opportunities.

INSIDE SALES REPRESENTATIVES
As part of our inside sales team, you will work closely with the Outside Account Managers/support staff and deal directly with customers to provide full service/sales support. You have: 1-3 years’ sales experience; strong organizational skills; excellent administrative duties.

FLOORING SPECIALIST
You will apply your 3-5 years of sales experience with hardwood, laminates and engineered flooring along with your outstanding customer service skills towards managing a specified customer base in Ontario; maximizing profits; creating new sales opportunities.
In return for your contribution, a competitive salary/benefits package is offered. Please forward your résumé, indicating the position title, by July 5, 2002 to:
Human Resources, CanWel Distribution Ltd., 15 West Drive, Brampton, Ontario L6T 3T5; email: michele_white@canwel.com; fax 905-457-3668.
We thank all applicants for their interest; however, only those selected for interview will be contacted.

***********************************************************************************

SALES REPRESENTATIVE — QUÉBEC REGION
Henkel Consumer Adhesives
, formerly LePage, Division of Henkel Canada Corporation, is a leading consumer adhesive and sealant company looking for an individual who enjoys a fast paced environment and thrives on exciting challenges. We are currently conducting a search for a Sales Representative in our Québec region who can contribute to our continued success.

Applicants should have experience in dealing with the big box stores. Have excellent communication and presentation skills and demonstrate customer relationship building and interpersonal skills. Must be fluently bilingual, written and spoken and have at least 1-2 years experience as a Sales Representative in the hardware channel.

Interested applicants are invited to fax their resumé in confidence to (905) 459-2791 or e-mail to:
stickwith.thebest@Henkel-Americas.com

************************************************************************************

SERVICES OFFERED

Where Manufacturing & Retailing…Deal Direct”™
Attention: Manufacturers & Agents
We can help you sell to retailers from coast to coast. MFG2D provides a logistics and marketing link between manufacturers and retailers. You won’t believe how cost effective it can be to sell to this important market using our unique solution.

For more information call Eric Smith or David Mackenzie at 1-866-844-2212 or go to http://www.mfg2d.com Ask us for a password to our members area!

***********************************************************************************
MARKETING “AUDIT”
Get an independent assessment of your marketing programs. Assess your brand strategy, dealer programs and creative execution. Guaranteed to produce new ideas towards building a greater competitive edge. Cjohnston@synmark.net , phone: 905-849-4850.

Building brand equity through
strategic and creative programs that register.

***********************************************************************************
LOOKING FOR REPUTABLE,
FOCUSED REPRESENTATION?

NORAL MARKETING
the manufacturers’ rep agency that
knows the Canadian retail customer!

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201


**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

June17_02

 


vol. viii, #24
June 17, 2002
 

* Home Depot tries to get men and women shopping together
* TruServ rolls out latest electronic initiative
* Réno-Dépôt has more stores in development
* IRLY elects new directors
* Canada’s inflation slows in May

 

“Suspicion of one’s own motives is especially necessary for the philanthropist and the executive.”
– Bertrand Russell (20th century philosopher)
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.
 

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

RÉNO-DÉPÔT EYES MORE ONTARIO SITES
Montréal, QC — Réno-Dépôt continues to bolster its expansion efforts, especially in the Ontario market. It recently opened another store there, this one in Windsor. But the company is close to finalizing four more sites — all of them in the GTA, though none is south of Highway 401, the intention of CEO Sylvain Toutant, as quoted in these pages in recent months. Réno-Dépôt has 14 stores in Québec and six Building Box outlets in Ontario.

Seven more sites are currently being reviewed, in addition to longer term considerations in both Québec and Ontario. The company continues to evaluate a location for Oakville, ON, just west of Toronto, where city council recently turned down an application by Réno-Dépôt.

TRUSERV GOES ELECTRONIC WITH NEW CATALOGUE
Winnipeg, MB — TruServ Canada has updated its Electronic Product Information Catalogue and released it to its members. The catalogue, issued on CD, provides a full database of TruServ Canada’s inventory, searchable by keyword, department, class or SKU number. The site has both a customer view and a member view. For customers, the dealer can set up the computer right on the sales floor to provide catalogue information, enabling customers to research products themselves. The members only area of the site gives additional pricing and shipping information.

The co-op wholesaler intends to issue monthly updates of the CD, featuring a summary section to showcase the latest new products available.

RETAILERS TRY TO FIGURE OUT MALE SHOPPER
Toronto, ON — At the latest conference of the Retail Council of Canada, held last week, Home Depot Canada president Annette Verschuren found herself amidst three men in suits. The topic was the shopping habits of men, but the emphasis was on clothes shopping, which left another, much larger, target market for disposable dollars up to Verschuren to defend.

The rest of the panel consisted of Harry Rosen, renowned men’s clothier with 18 stores across Canada, Leon Goren, president of Justwhiteshirts.com, and the outspoken Saul Korman of Korry’s Apparel.

Despite the rhetoric, the upshot of the panel was that, when shopping for hard goods at least, “People are just people and there’s not that big a difference between the way women shop and men shop,” Verschuren told Hardlines afterwards.

There are some differences in the way the two sexes shop, however. Presentation is important, as men want to touch and feel a product more than women do. “Presentation has to be very crisp. Men like to make their decisions very quickly.”

However, it’s important to create a shopping environment that has something for both sexes. “The main thing is to get them shopping together,” Verschuren said. Home Depot — and any retailer, for that matter — must consider themselves in the entertainment business. To that end, Home Depot has invested heavily in the past couple of years to soften its stores’ assortments and merchandising presentations to appeal more to women as well as men, especially since 50%-60% of Home Depot’s instore shopping decisions are made by the woman. And once the woman is in the store along with the man, the value of the transaction will typically go up, Verschuren added.

 

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.08 18.50 30.26
Canfor 11.70 8.08 11.45
Emco 12.42 3.71 11.50
Goodfellow 11.90 8.00 10.50
Home Depot 52.60 30.30 36.98
Hudson’s Bay 20.10 12.50 13.57
Lowe’s Cos. 49.99 24.99 46.84
Sears Canada 25.10 12.50 23.11
Sodisco-Howden 2.45 0.75 1.58
Taiga Forest 12.75 7.49 12.00
West Fraser 44.42 26.13 41.10
MARKET INDICATORS
Spurred by high demand, the Ottawa region led new housing prices in Canada from March to April. The New Housing Price Index rose 0.6% from month to month, while compared with April 2001, the index of contractors’ selling prices increased 3.7%, continuing the rise in year-over-year increases. Sales of existing homes in Canada fell 5.9% in May, according to the Canadian Real Estate Association. But housing prices continue to climb, with the average selling price up 10.7% in May. On a seasonally adjusted basis, 23,927 homes traded hands in May, down 5.9 per cent from April when 25,439 units were sold. Sales measured by value slipped by 6% to $4.8 billion in May, compared with $5.1 billion in April.

Lower energy prices tempered the rise in the Consumer Price Index, resulting in a 1.0% increase in Canada’s inflation rate in May from May 2001. It’s the slowest advance since December 2001 and a big drop from the 1.7% increase recorded in April 2002

The U.S. Commerce Department reports that overall retail sales in there slid 0.9% in May and 0.4% excluding autos — the biggest monthly drop since November. Retail spending makes up two-thirds of economic activity in the States.

COMPANIES IN THE NEWS
Claiming that Kingfisher is no longer in breach of rules governing the deal, Castorama Dubois Investissment SCA has confirmed that Kingfisher is clear to buy the 45% of Castorama it doesn’t already own. Kingfisher is expected to make a formal offer sometime in August.

A new website from Home Hardware Stores targets consumers looking for paint and décor ideas. Visitors to www.beauti-tone.com can access colour tips, design trends, product information and tips on painting projects.

Sears Canada, which picked up the Martha Stewart brand after Zellers dropped it a couple of weeks ago, is considering launching stand-alone Martha Stewart stores to capture more of the home décor dollar. It would compete against Hudson’s Bay’s Home Outfitters, says a report in the Globe and Mail.

An appeal against Georgia-Pacific has upheld a US$9 million verdict in an asbestos liability lawsuit. A woman suffering from a rare asbestos-related lung cancer, claimed it was caused by a joint compound made by Georgia-Pacific in the early 1970s. GP faces about 62,000 such cases.

Kmart Corp.‘s net loss in its first quarter grew to US$1.45 billion from US$233 million a year earlier. The company took a big charge of US$758 million to write down inventory from 283 stores that were closed after the company filed for bankruptcy. Sales for the quarter fell 8.4% to US$7.64 billion, from US$8.34 billion a year earlier.

PEOPLE ON THE MOVE
At the recent annual general meeting of IRLY Distributors Ltd., the following dealers, all in British Columbia, were elected to the board of directors: Ron Moss, president, Powell River … Mark Perry, vice-president, Vancouver … and Andy Anderson, secretary treasurer, Ashcroft. In addition, the following were named as directors: Rex Millard, Vanderhoof … Vern Bigelow, Lumby … Eric Hodson, Prince Rupert … and Jeff Davie, Kaslo. (604-596-1551)

Home Depot has appointed Roger Plamondon as regional manager for Québec. He will oversee operations for Home Depot’s stores in that province. He will report to Jesse Jessop, regional operations manager for Eastern Canada. Plamondon was most recently assistant vice-president development, legal and corporate affairs for Costco Canada. (416-609-0852)

Dave Browne, national account manager for the Mibro Group, has left the company. No replacement has been named yet. (416-285-9000)

Jeff Cohen, president of Home Depot‘s At-Home Services division in Atlanta, has decided to retire from the company “to pursue outside business opportunities.”

OVERHEARD
“When I go to a hardware store, if I can find someone to help me, I’ll spend money. I won’t know what to do with the tools when I get home, mind you!”
Saul Korman, president of Korry’s Apparel Ltd., who’s been selling suits from a single location in Toronto’s Greek neighbourhood for decades. (“Good morning, Howard. You know, people ask me if the suit is dead and I tell them, ‘No,’ it’s not dead. I tell them the one thing they need to look good is the classic blue blazer. And Howard, we’ve got a special all this week…”). With Stern gone from Toronto airwaves, he was speaking this time to Annette Verschuren, president of Home Depot Canada,as part of a panel at the recent conference of the Retail Council of Canada. (My dad took me down to Korry’s on the Danforth when I was in high school and bought me — yup, you guessed it — a blue blazer. — Michael)
ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report, available now, features: The Three Billion Dollar Club — find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

POSITIONS SOUGHT

NATIONAL SALES MANAGER/
MANUFACTURER’S AGENT AVAILABLE
Well respected, successful senior national sales executive available immediately to help you grow your key accounts. Skill set includes marketing manager and multi-line manufacturer’s agent credentials.
I have the skills to grow your sales to key accounts, with extensive experience servicing Home Depot, Canadian Tire, Sears, Home Hardware, Rona, Réno-Dépôt and all Canadian hardware buying group accounts. 10+ years experience successfully marketing brands. Let’s talk about how I can make your business grow. Reply in confidence c/o bev@hardlines.ca (put “Box 375” in subject line).

***********************************************************************************

HELP WANTED

ASSOCIATION PRESIDENT
The Lumber and Building Materials Association of Ontario (LBMAO) is seeking a dynamic individual to fulfill the role of Association President.
The ideal candidate should have strong LBM Industry ties, general management experience and the proven ability to work with a volunteer Board of Directors.
Closing date for applications is July 12th, 2002. Resumes can be submitted to: Mr. Paul Sutter, Chairman of the Board, LBMAO, 5155 Spectrum Way, Unit 27, Mississauga, Ont. L4W 5A1

************************************************************************************
SALES PROFESSIONALS, BRAMPTON
CanWel, one of Canada’s leading distributors of building materials to the retail and industrial markets, is poised for growth. We are looking for motivated professionals to join our Sales Team at our Customer Service Centre. For the following opportunities, we are seeking results-driven and sales-oriented individuals with excellent communication, interpersonal and negotiation skills. Familiarity with the building materials industry would be beneficial.

ACCOUNT MANAGERS
You will apply your 3-5 years of sales experience and outstanding customer service skills towards managing a specified customer base in Ontario; maximizing profits; creating new sales opportunities.

INSIDE SALES REPRESENTATIVES
As part of our inside sales team, you will work closely with the Outside Account Managers/support staff and deal directly with customers to provide full service/sales support. You have: 1-3 years’ sales experience; strong organizational skills; excellent administrative duties.

FLOORING SPECIALIST
You will apply your 3-5 years of sales experience with hardwood, laminates and engineered flooring along with your outstanding customer service skills towards managing a specified customer base in Ontario; maximizing profits; creating new sales opportunities
In return for your contribution, a competitive salary/benefits package is offered. Please forward your résumé, indicating the position title, by July 5, 2002 to:
Human Resources, CanWel Distribution Ltd., 15 West Drive, Brampton, Ontario L6T 3T5; email: michele_white@canwel.com; fax 905-457-3668.
We thank all applicants for their interest; however, only those selected for interview will be contacted.

***********************************************************************************

SALES REPRESENTATIVE — QUÉBEC REGION
Henkel Consumer Adhesives, formerly LePage, Division of Henkel Canada Corporation, is a leading consumer adhesive and sealant company looking for an individual who enjoys a fast paced environment and thrives on exciting challenges. We are currently conducting a search for a Sales Representative in our Québec region who can contribute to our continued success.

Applicants should have experience in dealing with the big box stores. Have excellent communication and presentation skills and demonstrate customer relationship building and interpersonal skills. Must be fluently bilingual, written and spoken and have at least 1-2 years experience as a Sales Representative in the hardware channel.

Interested applicants are invited to fax their resumé in confidence to (905) 459-2791 or e-mail to:
stickwith.thebest@Henkel-Americas.com

************************************************************************************

SERVICES OFFERED

MARKETING “AUDIT”
Get an independent assessment of your marketing programs. Assess your brand strategy, dealer programs and creative execution. Guaranteed to produce new ideas towards building a greater competitive edge. Cjohnston@synmark.net , phone: 905-849-4850.

Building brand equity through
strategic and creative programs that register.

***********************************************************************************
LOOKING FOR REPUTABLE,
FOCUSED REPRESENTATION?

NORAL MARKETING
the manufacturers’ rep agency that
knows the Canadian retail customer!

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201


**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

June10_02

 


vol. viii, #23
June 10, 2002
 

*Independents report strong first quarter
*Canadian Tire counts on new format stores for sales growth
*Matériaux À Bas Prix will open its 13th store
*Proposed Building Box gets nixed
*Value of residential building permits up more than 10% in April

 

“If you resolve to give up smoking, drinking and loving, you don’t actually live longer;
it just seems longer.” — Clement Freud
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.
 

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

BUILDING CENTRE DEALERS ENJOY STRONG FIRST QUARTER
National Report — Despite bad weather in many parts of the country, building centre dealers have been largely positive about sales so far this year. And despite the growth of the big box format in this industry, the lion’s share of the business — almost 45% — still remains in the hands of independent dealers.

No area got hit worse than Calgary in May, when snow dumped on the city, but Greg Davidson of Davidson Enman Lumber says the business is there; it will just get pushed into June, July and August. The company’s increased focus on contractors and builders has served his company well. “We were very busy last month and expect to be busy right through to the Fall.”

Before the snow hit, many Ontario dealers reaped the benefits of a mild first quarter. Keith Moffatt, president of Moffatt & Powell, an ILDC member in Southwestern Ontario, says low interest rates teamed up with the mild weather to put his company far ahead of budget. Like Davidson Enman, Moffatt & Powell does a majority of its business with the trades. “We’re talking to contractors, and they’re very positive about the year ahead,” Moffatt notes.

Don Nash, president of Homecare, the Tim-BR Mart group in Ontario, echoes the good news in that province. His dealers, many of them facing big box competition head-on for the first time, are still showing same-store sales up 15% over this time last year.

Québec dealers enjoy similar optimism. Groupe BMR‘s 120 members in that province have seen sales grow more than 38% in the first four months of the year. BMR’s president, Yves Gagnon, expects to close the year 20%-25% ahead of last year, thanks not only to the addition of nine new members in 2001, but to stronger performance from existing members.

Other groups are just as buoyant. Castle Building Centres Group, with 225 dealers across the country, added 21 new stores last year – and recorded its largest year-over-year increase in the group’s 40 years, says Castle president Pro Wylie.

While the West coast has suffered from a flat economy for the better part of the decade, observers believe some areas are picking up at last. However, says George Tracy of the Building Supply Dealers Association of B.C., the impact of countervailing duties on the province’s economy is causing a big hit in unemployment. “I’m not as optimistic as I was last year,” he admits. “There has to be a huge improvement in the economy, but someone has to pay.”

His outlook, which he calls “cautiously optimistic,” calls for “some growth in 2002. Building supply dealers are not seeing huge breakthroughs — a little, but not a lot.”

Barrie Sali, president of Tim-BR-Marts Ltd., has dealers in every region west of the Lakehead. But in spite of both the weak B.C. economy and the loss of some key members last year, his group has ended 2001 with sales by all its dealers virtually on par with the previous year, at about $1.1 billion. Purchases through the group were also almost at a level with the previous year.

Atlantic Canada, which traditionally flat lines through the highs and lows in other parts of the country, anticipates a healthy year ahead. “I expect nice, slow conservative growth,” says Tom Smith, president of the AWARD buying group, which represents almost 90 dealers throughout Atlantic Canada. “I think it’s going to be a good year.”

CANADIAN TIRE’S NEW FORMAT STORES
DRIVE SAME-STORE SALES
Toronto, ON — Canadian Tire Corp. continues to pour money into the retrofit and replacement of existing stores. The new format stores not only boost initial sales volumes, but shore up same-store sales for the chain.

Thanks to increased numbers of customer visits, coupled with a larger average sale per transaction, the new format stores generated average annualized sales of $14.8 million in the first quarter of 2002 (calculated on a rolling 12-month basis), up from $14.6 million in 1Q 2001. Traditional stores, by comparison, had average annualized sales in 1Q 2002 of $8.3 million, flat over the same period a year earlier.

However, CTC is still learning to maximize the use of the extra space in the new stores. Sales per square foot in the old-fashioned stores remain higher than in their newer cousins: $526, compared with $415.

 

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.08 18.50 31.66
Canfor 12.00 8.08 10.90
Emco 12.42 3.71 12.15
Goodfellow 11.90 8.00 11.50
Home Depot 52.60 30.30 38.83
Hudson’s Bay 20.10 12.50 14.25
Lowe’s Cos. 49.99 24.99 46.35
Sears Canada 25.10 12.50 23.35
Sodisco-Howden 2.45 0.75 1.58
Taiga Forest 12.75 7.49 12.60
West Fraser 44.42 26.13 41.10
MARKET INDICATORS
While non-residential intentions continue to decline, the value of residential building permits in April reached $2.6 billion, up 10.1% from March and 8.9% higher than the previous record reached in February. In April, construction of 19,800 residential units was authorized. On a year-to-date basis, all 28 census metropolitan areas have shown gains in the residential sector. On the other hand, 16 have posted declines in the non-residential sector.
NOTED
The Governments of Canada and Ontario have signed an Affordable Housing Program Agreement. The deal will provide $489.42 million over the next five years to help increase the supply of affordable housing in the province. The Feds will kick in $244.71 million, which will be matched by the provincial government, municipalities and other private and nonprofit partners. The agreement is expected to result in the creation of an estimated 10,500 units in Ontario during the next five years.
COMPANIES IN THE NEWS
Ferlac Inc. is enjoying a boom in Northern Québec. Despite the closure of one outlet last year, the remaining four have netted the company a 5% increase in sales in 2001, especially due to business with native peoples around the hydroelectric development in James Bay, which is creating a brisk business for Ferlac’s Chibougamou outlet.

A Home Depot store has been announced for Kamloops, BC. This is only the second store for Home Depot in the British Columbia interior (one went into Kamloops almost a year ago) and it’s scheduled to open on or around June 19, 2003.

A Building Box planned for Oakville, ON has been nixed by the town council there. The city-owned site will remain vacant until another use can be approved.

Matériaux À Bas Prix, a.k.a. Bargain Building Materials (“Nobody beats our prices!”) will open its 13th outlet on June 13. This one is in Beauharnois, QC on the south shore near Montréal.

Sales for Sears Canada in May decreased 2.6% to $483.2 million, from $496.2 million for the same period last year. Merchandise sales decreased by 2.7% and same-store sales fell 4.3%. Cool weather affected lawn and garden sales, but furniture, major appliances, bed and bath, and installed home improvement products enjoyed double-digit increases.

Castorama shareholders have voted to accept an offer of 67 euros per share by Kingfisher, which already owns 55% of the French DIY company. The purchase price was not supported by Castorama’s executive team, which sought a higher price and expressed concerns over possible conflict of interest between Kingfisher and the bank brokering the deal.

This year alone, Home Depot in Atlanta needs to hire 40,000 people, so it’s making a deal with various levels of government in the U.S. to create a pipeline to the labour pool. Working closely with state labour departments and local work-force boards, Home Depot will provide weekly lists of job openings that will be made available to a variety of workers, including unemployed whose welfare benefits have expired, ex-military personnel, laid-off workers and people looking to change careers.

Sears, Roebuck & Co. posted a drop in May’s store sales of 1.5% to US$2.26 billion, down from from US$2.29 billion. The Sears Hardware outlets performed better, with sales up about 5%. Same-store sales for the chain fell 4.4%.

Wal-Mart Stores reported sales in May of US$18.337 billion, an increase of 11.5% over May 2001. Profits year to date were up 12.7% and same-store sales rose 7.5%

About 320 jobs will be lost when Sears Canada closes three call centres: Kitchener Credit and HomeCentral, Toronto HomeCentral and Ottawa Travel. Call centres in Vancouver, Ottawa, Montreal, Calgary and Regina will take up the slack. The changes will be implemented by the end of July 2002.

PEOPLE ON THE MOVE
Steve Johns has left his position as president of the Lumber and Building Materials Association of Ontario. The board of directors made the move before finding a replacement; an executive search for a new president will begin in a couple of weeks. (905-625-1084)


Barrie Brooks is no longer at Coleman Powermate division of Sunbeam Canada. Formerly director of national accounts, his duties have been taken over by Bonni McChesney, vice-president of business development. (905-501-0146)

Jerry Kaell, formerly president of Wilton Industries Canada, has left the company following a restructuring. His duties will now be handled out of Wilton’s head office in Chicago. The sales function in Canada is still headed up by Jeff McLauchlin, vice-president of sales. (416-679-0790)

Dan Olsen, vice-president international sales for Ace Hardware, has left to start his own company, Global Assistance. Olsen was the first Ace guy to ever come up and check out the Canadian market, back in 1990 when he first established the international division for Ace.

ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report features: The Three Billion Dollar Club — find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED
SALES REPRESENTATIVE — QUÉBEC REGION

Henkel Consumer Adhesives, formerly LePage, Division of Henkel Canada Corporation, is a leading consumer adhesive and sealant company looking for an individual who enjoys a fast paced environment and thrives on exciting challenges. We are currently conducting a search for a Sales Representative in our Québec region who can contribute to our continued success.Applicants should have experience in dealing with the big box stores. Have excellent communication and presentation skills and demonstrate customer relationship building and interpersonal skills. Must be fluently bilingual, written and spoken and have at least 1-2 years experience as a Sales Representative in the hardware channel.

Interested applicants are invited to fax their resumé in confidence to (905) 459-2791 or e-mail to:
stickwith.thebest@Henkel-Americas.com

***********************************************************************************

LOOKING FOR REPUTABLE,
FOCUSED REPRESENTATION?
NORAL MARKETING
the manufacturers’ rep agency that
knows the Canadian retail customer!

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201


**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

June3_02

 

“You gotta have a swine to show you where the truffles are.”
– Edward Albee
vol. viii, #22 June 3, 2002
 
* Hudson’s Bay searches for hardlines partner
* Drouin retires from Rona
* Big boxes want to grow contractor business
* Ace Canada forms private-label paint deal
* Renovation spending expected to continue rising
* Rona’s big box sales up almost 20% in 1Q
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.
 

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

RONA CHAIRMAN STEPS DOWN AFTER 21 YEARS
Boucherville, QC —Henri Drouin submitted his resignation as a director and chairman of Rona Inc. last week. Drouin, 61, spent the past 26 years as a director of the company and the last 21 as chairman, all the time remaining a dealer with stores of his own. With his resignation, he has also sold his interest in his Rona store in Amos, QC. Drouin has been replaced by André Gagnon as chairman. Gagnon became a Rona dealer-owner in 1962 and remains chairman of H. Gagnon et fils (1975) Ltd., which owns all or part of four big-box Rona stores in Québec. He joined the company’s board of directors in 1971 and served most recently as vice-chairman, co-chairman of the company’s governance committee and vice-chairman of the board’s executive committee.

Speaking of Drouin at the company’s annual meeting last week, Gagnon said, “He has worked in every way for the growth of Rona since 1977. He was part of all major decisions that have enabled Rona to become Canada’s home renovation leader.”

HUDSON’S BAY LOOKS FOR HARDLINES PARTNER
Toronto, ON — They’re already doing it with fashion and cookware. Now they want to try it with hardware.

Following the company’s AGM last week, George Heller, president and CEO of Hudson’s Bay Co., announced a licensing deal with Federated Stores in the U.S. to carry selected fashion brands made for Federated’s stores in the U.S. The deal with HBC is similar to ones Federated is cutting around the world and includes INC women’s fashion and Tools of the Trade cookware.

But hardlines represent the fastest growing categories for HBC, so it’s also in the process of looking for a partner to provide these products, says Heller. In the first quarter, Zeller’s overall sales grew 1.1%, while its hardlines grew 7.3%. These products include décor, paint and seasonal — such as patio furniture.

Heller says HBC has expertise in getting product on the shelves and getting it into the hands of its customers. That’s its strength — so rather than “reinvent the wheel,” why not partner with an existing hardlines company whose strength is in hardlines.

While Heller would not be specific, he hopes to have a deal in place by as early as the end of this year.

BIG BOXES EYE INDEPENDENTS’ DOMAIN:
THE CONTRACTOR BUSINESS
Montréal, QC — Réno-Dépôt wants more contractor business, especially the smaller contractors and sub-trades. While the focus remains the DIYer, the contractor spends three dollars for every one by a consumer, says Paul Hétu, Réno-Dépôt’s vice-president, marketing. And while the company’s business is about 18% contractor at this time, he wants to see it get up to 25%.

Réno-Dépôt is not alone in its pursuit of the fickle pro customer. In the first three months of the year, Home Depot in the U.S. put its pro package into 234 more of its stores. The program provides special services to the professional customer. By the end of the first quarter, Home Depot had 769 stores carrying the pro initiative. However, none of them is in Canada, where the company derives an estimated 25% of its business from contractors.

However, even in Canada, the small contractor is important to Home Depot. “This is the business we’re focusing on,” says Anne Legault at the Home Depot on l’Acadie in downtown Montréal.

The very fact that there are so many big boxes out there makes the pitch to contractors easier, Hétu notes. “As there are more big boxes, the ‘hook and ladder’ trades are more likely to come in, because the big boxes are now more convenient. We want to make sure they choose Réno-Dépôt,” he says — or its Anglophone sister, Building Box.

Among the ways the company is trying to do that is to make the contractor’s visit as effortless as possible. Designated parking, with quick in and out via their own contractor desk, is combined with a strong in-stock position. “It’s simple,” says Hétu. “Time for them is money. We want them to be able to find what they want as quickly as possible.”

 

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.08 18.50 31.30
Canfor 12.00 8.08 10.24
Emco 12.42 3.71 12.24
Goodfellow 11.90 8.00 10.60
Home Depot 52.60 30.30 41.69
Hudson’s Bay 20.10 12.50 14.50
Lowe’s Cos. 49.90 24.99 47.16
Sears Canada 25.00 12.50 24.55
Sodisco-Howden 2.50 0.75 1.66
Taiga Forest 12.75 7.40 12.50
West Fraser 44.42 26.13 37.95
NOTED
When the 135,000-sq.ft. Rona Home & Garden Centre in Gloucester, ON opened its doors at 9:30 a.m. last Wednesday, more than 600 people were lined up to get in. The big box store is Rona’s second in the Ottawa market, and its 40th overall (not counting the Rona Lansing in Scarborough, ON). The next Rona big box is scheduled to open in the Toronto area by the third quarter of this year.
COMPANIES IN THE NEWS
Rona Inc. recorded net earnings for the first-quarter of $3.8 million, up 34.8% from $2.8 million in the same period in 2001. Consolidated sales were $443.8 million, up 75% over 2001. The increase is due largely to the acquisition of Revy Home Centres in June 2001. Store for store, first-quarter consolidated sales in 2002 are 10% higher than the combined sales of Revy and Rona for the first quarter of 2001. Rona’s sales are a combination of wholesale sales to its its affiliated dealers and retail sales through 130 corporately owned stores. While all store formats posted a sales increase over last year, the big box stores showed greatest growth, up over 19%.

Ace Hardware Canada has found a source of paint domestically. Rather than ship paint from Ace’s own factory in the U.S., the Canadian division has formed a private-label deal with Unichem in Montréal.

Castle Building Centres Group has added the following new members: Mike’s Home Centre Inc., Southey, SK and Greenwood Building Supplies, Lethbridge, NF.

The takeover of House of Tools by Western Tool Supply has not materialized. The original deal would have the California-based chain buy Edmonton-based House of Tools for an undisclosed sum. The nine-store chain sells specialty tools to serious DIY and contractor customers. Like Western Tool, it has a strong web presence, through which it sells across the country.

Do it Best Corp. in the U.S. introduced a number of new initiatives at its Spring market, held earlier this month. They included an on-line product catalogue, handheld palm unit and a new employee hiring program. The big focus, however, was the introduction of expanded merchandising programs for housewares. These included small appliances, storage and RTA furniture.

LePage, division of Henkel Canada Corp., has changed its name to Henkel Canada Corp., Consumer Adhesives, and has a new corporate web site: www.henkelca.com . Headquartered in Brampton, ON, LePage’s Ltd. was purchased by Dusseldorf-based Henkel Group in 1995. With Manco, it forms Henkel’s North American consumer adhesives business.

Bakor has unveiled a new visual identity, comprising a new logo and packaging. Over the next six months The new identity will be adopted on all of the Mississauga, ON-based manufacturer’s consumer products and corporate communications. The new look was developed by Watt International.

Sears Canada is putting a push on its décor oriented stores with the opening of its latest furniture, appliance and home improvement store in Toronto, this one near Sherway Gardens in Etobicoke. The newly expanded, 52,000-sq.ft. store is the first of five scheduled to open by the end of the year, giving Sears a total of 42. These specialty outlets offer furniture and major appliances, and this one includes a 4,000-sq.ft. Sears HomeCentral showroom.

PEOPLE ON THE MOVE
Newly appointed to the board of directors of Rona Inc. is Louise Caya, a Rona dealer-owner since 1992 and co-owner of Rona L’express Matériaux de Notre-Dame-du-Bon-Conseil in Québec. Caya, 36, is a business graduate of the Ecole des Hautes études commerciales de Montréal. She is a member of the Ordre des comptables agréés du Québec and has been a member of the CHSLD Coeur du Québec board of directors since 1999. (514-599-5100)
MARKET INDICATORS
Renovation is expected to continue increasing throughout this year and next, says the latest housing report from Clayton Research. The total value of reno spending will advance about 4% in inflation-adjusted terms in 2002, and another 3% in 2003. Clayton expects the collective rise in spending in real dollars to be up about 10% over the next two years, bringing the total value of residential renovation spending to $24 billion this year. A large part of the increase is due to people hiring contractors, versus doing it themselves.

(Peter Norman, vice-president of Clayton Research, will be a keynote speaker at our Retail Strategies Conference on September 12, 2002.- MM)

ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report features: The Three Billion Dollar Club — find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED
SALES REPRESENTATIVE — QUÉBEC REGION

Henkel Consumer Adhesives, formerly LePage, Division of Henkel Canada Corporation, is a leading consumer adhesive and sealant company looking for an individual who enjoys a fast paced environment and thrives on exciting challenges. We are currently conducting a search for a Sales Representative in our Québec region who can contribute to our continued success.Applicants should have experience in dealing with the big box stores. Have excellent communication and presentation skills and demonstrate customer relationship building and interpersonal skills. Must be fluently bilingual, written and spoken and have at least 1-2 years experience as a Sales Representative in the hardware channel.

Interested applicants are invited to fax their resumé in confidence to (905) 459-2791 or e-mail to:
stickwith.thebest@Henkel-Americas.com

***********************************************************************************  

REGIONAL SALES MANAGER
Moen Inc.
, Canada’s leading supplier of faucets, plumbing parts and accessories, seeks a passionate sales leader for their Montréal office.
The successful bilingual candidate will build upon strong relationships with major and national retail accounts — developing and implementing comprehensive strategies to provide superior service and support. Leading a group of dedicated sales professionals, the Québec manager actively participates in all facets of the business including sales development, program presentation, category management, promotions, and budget planning.

Key requirements for this position include:

  • a minimum of 6 years in a regional sales management role
  • a passion for sales development and growth
  • a proven ability to coach and build teams with a strong customer service focus
  • a well developed network in the hardware retail industry in Quebec
  • knowledge of category management initiatives and national account management
  • a track record of superior performance in retail account management

The bilingual candidate will have superior business planning and presentation skills, and will enjoy a team environment. Candidates should possess a post-secondary education, computer literacy, and corporate reporting experience.

This position offers an attractive salary and sales incentives, a benefits package and more.

For those people interested in moving their careers forward, we invite you to explore this opportunity further by contacting Danek Anthony Inc. Please contact by phone or email: Don Dominczuk, 416/214-9938 or dondomin@uniserve.com ; Tom Carroll, 416/259-4994 or carroll4994@rogers.com

***********************************************************************************

LOOKING FOR REPUTABLE,
FOCUSED REPRESENTATION?

NORAL MARKETING
the manufacturers’ rep agency that
knows the Canadian retail customer!

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201

**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

May27_02

 

“In calm water every ship has a good captain.”
– Swedish proverb
vol. viii, #21 May 27, 2002
 
* Rona Lansing adds big box elements, more contractor perks
* What buyers want: vendor buy-backs, new products
* Taiga finishes best year ever
* Ace stakes growth on alliances with independents
* Home Depot loses ground to Lowe’s 1Q performance* Rona Lansing adds big box elements, more contractor perks
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.
 

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

WCPN MEETING:
Join the Women’s Consumer Products Network on May 28th for an evening social and dinner. Presentation by Ron B. Hesketh, founder of “Maximizing Your Peaks, Minimizing Your Valleys,” and a senior partner with Peak Performance Systems, a training organization that is dedicated to consulting, professional development and training. For more info, call 416-208-0688; e-mail: wcpn99@yahoo.com
ACE FINDS SUCCESS WITH BUYING GROUP DEALS
Markham, ON – After two startup hardware stores closed recently in Calgary, Ace Hardware Canada admits its best shot at growth is supplying hardlines to its building supply customers. “That’s our future, going forward, with the lumber and building materials guys,” says Pat Bennett, Ace Canada’s vice-president sales.

He insists the independent dealer has the clout needed to compete against the big boxes, saying the big guys today are focusing more on margins than on sales. As a result, he adds, the price wars of a few years ago are just not happening today.” Independents today can compete with fair pricing, but also with knowledgeable customer service.”

While the Calgary stores, and another in Maple, ON have not panned out for Ace, deals like the one it recently struck with United Farmers of Alberta are giving the company much-needed sales volume. There, the new programs for 34 UFA stores have almost been completed.

Ace has duel-bannered 14 independent building centres so far this year and a new ground-up hardware store is planned for Richmond, BC in June. Also, Ace’s supply arrangement with Castle Building Centres is bearing fruit, with ten projects currently on the go. Acceptance is especially strong in Atlantic Canada, where eight of those 10 new banners are going in.

Ace has a total of 29 projects, ranging from ground up stores to remerchandising and expansions, that will all be completed within the next three months. Ace also has agreements with Growmark, Tim-BR-Marts, Sexton and Torbsa.

EXPANDED RONA LANSING STORE HAS MORE FOR CONTRACTORS
Markham, ON – Rona‘s commitment to its traditional stores was reflected in the recent expansion of this Rona Lansing store just north of Toronto.

The store has almost doubled in size to 37,000 sq.ft. and switched to 12-ft. warehouse-style racking through most of the store. More space has been devoted to retail in an effort to get as much product on the floor as possible. With inventory increased from 19,000 to 26,000 SKUs, much of the new retail space has been turned over to expanded assortments, especially a more complete line of Rona private label products and more attention to seasonal. Most products are now being shipped out of Rona’s Boucherville, QC distribution centre or being direct shipped.

Another department that has been expanded is the contractor area. Designated parking outside, along with wider aisles, make it easier to get product out of the store. It also has its own entrance, complete with its own cashier.

WHAT BUYERS WANT: PART TWO
Toronto, ON – When performance is measured on gross margin, buyers must walk a fine balance between full-line programs and new product development. More than one of the six buyers who participated in our recent Hardlines Meet the Buyers Seminar made this point.

Joel Marks, merchandise director for hardlines at Home Hardware, invited innovators and inventors with new products to approach his company. Despite an overall trend toward partnerships with vendors that can provide full programs, Marks was not alone in his stance on new products.

Suzanne Morgan, lead category manager for décor at Canadian Tire, said her company has to be open to new products, which are vital for differentiating CTC and sale opportunities. She cited the company’s website as an especially viable forum for innovation – including products that would not necessarily fit on the shelves of a Canadian Tire store.

Peter Vernon, Home Depot Canada‘s hardware merchant, used Stanley Works as an example of long term relationship with a full line supplier. The deal, which raised eyebrows throughout the industry, puts a lot of Stanley’s sales eggs in the Home Depot basket. Yet the long-term development of this relationship is one Home Depot is eager to invest in, said Vernon.

Some things won’t change, however, such as the need for vendors to work with retailers to buy back old stock, or at least help sell it off. “You hate it, we love it, but it helps us manage our inventory,” admitted Bernie Snider, group merchandise manager for hardlines at Ace Hardware Canada.

 

 

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.08 18.50 31.86
Canfor 12.00 8.08 9.80
Emco 12.27 3.71 12.20
Goodfellow 11.90 8.00 11.60
Home Depot 53.45 30.30 43.20
Hudson’s Bay 20.10 12.50 13.85
Lowe’s Cos. 48.88 24.99 48.10
Sears Canada 25.00 12.50 24.15
Sodisco-Howden 2.50 0.75 1.80
Taiga Forest 12.75 7.40 12.50
West Fraser 44.42 26.13 40.02
COMPANIES IN THE NEWS
Taiga Forest Products ended its fiscal year with its best performance in its history. Sales reached $854.3 million, up from $790.2 million in 2001. Earnings for the year were $6.2 million, up from $841,000 a year earlier. Sales for the three months ended March 31, 2002 were $206.5 million, up 20% from $171.5 million for the same period last year. Earnings for the quarter were $719,000, up from $287,000.

Rona will open a 125,000-sq.ft. Rona Home & Garden in Gloucester, ON this Wednesday, making it the second Rona big box in the Ottawa area.

Selkirk Industries has been sold to Tinicum Capital Partners, an investment group out of New York, for US$40 million in cash. The deal, struck with Selkirk’s parent, U.S. Industries, will close by the end of July. The purchase is expected to have no affect on Selkirk’s Canadian operations, where it’s “business as usual.” U.S. Industries’ other companies include Jacuzzi, Eljer and Sundance Spas.

For its fiscal first quarter, Home Depot‘s profits were up 35% to US$856 million, from US$632 million during the same period a year earlier. Sales were up 17% to US$14.3 billion. Growth was driven largely by new stores. During the quarter, Home Depot opened 57 new stores, the highest number of quarterly store openings in company history. By the end of the quarter, the company operated 1,386 stores. However, at Lowe’s Cos., sales rose 22.6% to US$6.47 billion, up from $5.28 billion in the first quarter of 2001. and profits were up 51.7%. Lowe’s same-store sales exceeded Home Depot’s, as well – 7.5% versus 5.0%.

Rona‘s award-winning website, www.rona.ca, has been redesigned, with the project planning needs of its customers in mind. In 2001 the Rona site averaged 150,000 visitors a month, an increase of 125% over the previous year. According to its most recent statistics, 246,000 Canadian visitors went to rona.ca in March 2002. Though the visits do not result in substantially more on-line sales, the site is being used for comparison shopping.

Wal-Mart Canada will open a new 81,000 sq.ft. free-standing store in Atholville, NB this Fall. Another store, at 108,000 sq.ft., is scheduled for New Minas, NS in the Spring of 2003.

Sears Canada will convert the Eatons Polo Park store in Winnipeg to a Sears store. It will remain open during the conversion. This store, along with the other five former Eatons locations and approximately 13 other larger Sears stores, will form the basis of a Sears “select” strategy, offering customers a broader assortment of better fashion merchandise.

PEOPLE ON THE MOVE
Home Hardware Stores has named Ron Goldade of Neepawa Home Hardware in Neepawa, MB as chairman of the board of directors. Goldade has owned and operated Neepawa Home Hardware since 1985, and has served on Home Hardware’s board of directors since 1990. He is also past president of the Canadian Retail Hardware Association. He replaces Charlie Reid of Saskatoon, who retired after 11 years as Home’s chairman. (519-664-2252)

At Do it Best Corp., Dave Heine has been appointed vice-president of retail development. He will oversee growth of the co-op retailer and manage its field staff. He was most recently vice-president of lumber and building materials … Quent Ondricek has been appointed vice-president of lumber and building materials, replacing Heine. He will oversee all LBM purchases. He was promoted from the position of national sales manager. (260-748-5300).

MARKET INDICATORS
Consumer spending in retail stores remained essentially flat for a second consecutive month in March. Retail sales stood at $25.2 billion in March, down 0.2% from February, when retailers also posted flat sales (-0.1%). This follows strong sales gains of at least 1.2% in January and in each of the last three months of 2001. Despite the lack of sales growth in March and February, retailers managed to post a healthy 2.6% gain in the first quarter of 2002 compared with the fourth quarter of 2001. Retail sales in the first quarter were 6.6% above those of the first quarter of 2001.
The composite index increased 1.2% in April after a 1.3% increase in March, the best consecutive advances in nearly 20 years, says Stats Canada. The housing index continued to grow in April (+0.8%). Sales of existing homes rebounded after having fallen in the previous two months. Housing starts posted their lowest level of the year, as recent gains made due to warm weather may have been borrowed against building in the spring.

Wholesale sales in March were down 0.2%, but the first quarter of the year remains strong overall, up 2.4%. Lumber and building materials were up 1.7% in March, from February.


ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report features: The Three Billion Dollar Club – find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
INDUSTRY NEWS. EVERY DAY
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS THAT MATTER TO YOU. KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

BUSINESS OPPORTUNITIES
MERGER OPPORTUNITY

It’s time to grow our business. We are a leading national manufacturers’ rep agency with major manufacturer clients. We’re looking for a merger with an existing Ontario agency. We can reach critical mass with the right partner.If your current lines are the right fit with ours, we can grow together. Reply in strictest confidence to Box 350, Hardlines, c/o bev@hardlines.ca. (Put “Box 350” in subject line.)

***********************************************************************************    
SALES AGENTS, REPS WANTED
Canadian custom manufacturer of unique home address plaques is looking for a sales agency (or agencies) to increase its Canadian and US exposure. Our products are best positioned in specialty hardware and lighting retailers that offer unique quality products.

For more information, please write to PO Box 5821, Station A, Calgary, Alberta T2H 1Y3 or phone 403-253-1865; fax 403-253-4788.

***********************************************************************************


HELP WANTED
REGIONAL SALES MANAGER
Moen Inc.

, Canada’s leading supplier of faucets, plumbing parts and accessories, seeks a passionate sales leader for their Montréal office.The successful bilingual candidate will build upon strong relationships with major and national retail accounts — developing and implementing comprehensive strategies to provide superior service and support. Leading a group of dedicated sales professionals, the Québec manager actively participates in all facets of the business including sales development, program presentation, category management, promotions, and budget planning.

Key requirements for this position include:

  • a minimum of 6 years in a regional sales management role
  • a passion for sales development and growth
  • a proven ability to coach and build teams with a strong customer service focus
  • a well developed network in the hardware retail industry in Quebec
  • knowledge of category management initiatives and national account management
  • a track record of superior performance in retail account management

The bilingual candidate will have superior business planning and presentation skills, and will enjoy a team environment. Candidates should possess a post-secondary education, computer literacy, and corporate reporting experience.

This position offers an attractive salary and sales incentives, a benefits package and more.

For those people interested in moving their careers forward, we invite you to explore this opportunity further by contacting Danek Anthony Inc. Please contact by phone or email: Don Dominczuk, 416/214-9938 or dondomin@uniserve.com ; Tom Carroll, 416/259-4994 or carroll4994@rogers.com

***********************************************************************************

NORAL INSTORE:
Don’t leave your products’ display management
to chance! Let Noral Instore take care
of your instore merchandising.

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201

**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

May21_02

 

“Freedom is nothing else but a chance to be better.”
– Albert Camus
vol. viii, #20 May 21, 2002
 
* Buyers want market share knowledge from vendors
* Castorama to sell remaining shares to Kingfisher
* Latest Building Box expands seasonal, moves paint
* Hudson’s Bay puts logistics to work – for other companies
* Kmart under investigation by FBI
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.
 

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

WCPN MEETING:
Join the Women’s Consumer Products Network on May 28th for an evening social and dinner. Presentation by Ron B. Hesketh, founder of “Maximizing Your Peaks, Minimizing Your Valleys,” and a senior partner with Peak Performance Systems, a training organization that is dedicated to consulting, professional development and training. For more info, call 416-208-0688; e-mail: wcpn99@yahoo.com
WHAT BUYERS WANT:
RETAILERS SHARE TIPS FOR EFFECTIVE SELLING
Toronto, ON – Timing is everything when making a presentation. But so is being prepared. These are just some of the points made by the six buyers who participated in the first-ever Hardlines Meet the Buyers Seminar.

The buyers, from some of Canada’s key retail companies, appeared before about 150 vendors last week (we had more than twice the attendance we anticipated – we’ll get a bigger room next year, promise! – Michael) to share insights into how to approach buyers in a manner that saves everyone time and aggravation.

Suzanne Morgan, lead category manager for décor at Canadian Tire, advised vendors to familiarize themselves with CTC’s corporate goals and really understand the category their products sell into. Bernie Snider, group merchandise manager for hardlines at Ace Hardware Canada, explained that Ace’s international status gives vendors a great entry point for potential sales to Ace in the U.S. But, he adds, vendors have to come armed with information on their category – including other leading brands, their market shares and consumer buying trends.

James Jones, general merchandise manager for Réno-Dépôt Inc., highlighted some of the growth categories for his stores, such as storage, pool maintenance, interior mouldings, paint and floor coverings. Peter Vernon, Home Depot Canada‘s hardware merchant, explained that overall decisions are made in Atlanta, but buying decisions for Canada are still made by the team in Toronto.

Luc Lemonde, the new vice-president, merchandising for Sodisco-Howden Group, explained the new buying organization at SHG’s Montréal offices; Joel Marks stressed the philosophy of Home Hardware, which is built on integrity and honesty.

NEWEST BUILDING BOX EXPANDS STORAGE, KD FURNITURE
Windsor, ON – This border city got its second big box on the long weekend with the opening of The Building Box in Windsor’s Riverview area. Just down the road from a large Ford plant, the area on the east edge of town is one of tremendous new home development. Windsor already has a Home Depot.

The store reflects some of parent company Réno-Dépôt‘s latest merchandising initiatives for the Ontario market.

One striking difference is the shift of the paint department from the traditional centre of the store to the front. The paint service counter is now at right angles to the front of the store, rather than parallel to it. It’s also supported by more staff, with the most popular paint bases behind the counter for easy access.

How-to seminars have been replaced by more vendor-driven demos in the aisles, an alternative that provides shoppers with hands-on education all day. “That is what we have learned from our consumers; what they’re actually looking for,” says Paul Hétu, vice-president marketing for Réno-Dépôt.

Reflecting a trend, not just among big boxes, but throughout the industry, this Building Box’s seasonal assortments have been expanded and the area remerchandised with wider aisles and more open space for pallet displays. Thanks to its connection with parent Castorama Group, the store’s selection included some buys that came out of Europe. A set of hardwood patio furniture is a Building Box exclusive for North America, while a buy on laminate flooring lets the store sell it at $1.98 per sq.ft. “Last year, the cost of laminate in Windsor was $4.98,” says James Jones, the company’s general merchandise manager.

Lighting featured a strong emphasis on halogen; in the bath department the warehouse concept has been refined to feature shower displays on the floor, instead of featured in vignettes atop the racking. Each display is accompanied by three or four models in boxes, ready to be pulled out and taken away by customers. This innovation, if successful, says Hétu, will be rolled back into other Réno-Dépôt stores.

Also new for this store: knock-down furniture, to capture the growing trend to maximize space within the home, including the home office. The range includes entry price points right up to classier models with maple finishes.

KINGFISHER BIDS FOR REST OF CASTORAMA
London, England – Before its upcoming annual general meeting, Kingfisher is expected to announce its intention to buy the remaining 45% of Castorama SA. Kingfisher has been talking to Castorama’s board for weeks about a possible deal, valued at as much as £3 billion (CDN$6 billion). Castorama Group forms the DIY division of Kingfisher, with 515 stores worldwide, and includes Réno-Dépôt in Canada.

However, the deal may not go entirely smoothly. Last week, Kingfisher offered E5.1 billion ($CDN7.65 billion) for the remaining stake in Castorama. But the French company rejected the offer, which works out to about E67 per share, as shares on the Paris and London markets had by then risen E3 to E67.50.

 

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 33.00 18.50 32.75
Canfor 12.00 8.08 10.00
Emco 12.09 3.62 11.50
Goodfellow 11.90 8.00 11.00
Home Depot 53.73 30.30 48.09
Hudson’s Bay 20.10 12.50 14.00
Lowe’s Cos. 48.88 24.99 44.76
Sears Canada 25.00 12.50 24.30
Sodisco-Howden 2.50 0.75 1.80
Taiga Forest 12.75 7.40 12.00
West Fraser 44.42 26.13 41.00
COMPANIES IN THE NEWS
TruServ Canada has signed on with www.toolnet.ca, a program from the Canadian Retail Hardware Association that lists all of TruServ’s True Value stores. The website features searches by product and by store, as well as an interactive message board for consumers to swap DIY tips, and online retail promotions from member chains.

Hudson’s Bay Co. is expanding its logistics function to include shipping product for other companies besides its own. A test program to keep HBC trucks filled by shipping for other firms is now being rolled out. With one of the largest fleets on Canadian roads, the company identified a low-cost opportunity to fill up outbound trucks and move more product on backhauls.

Ainsworth Lumber Co. had a first-quarter net loss of $2.0 million, compared with a net loss of $14.9 million for the same period last year.

The attempt by Stanley Works to bail out of the U.S. and set up in tax-sheltered Bermuda is being challenged by Connecticut’s attorney general, who says the company misled shareholders when it came time to vote on the move.

Profits for Wal-Mart were up in the first quarter by 19.7%, reaching US$1.65 billion. Sales in the first quarter rose 14.4% to US$54.9-billion. Same-store sales were up 8.1%.

Two of the West Fraser Timber‘s principal shareholders, Ketcham Investments and Tysa Investments, both owned by the Ketcham family, intend to sell approximately 200,000 of their common shares. The intended sales are being considered for investment diversification, estate planning and tax reasons.

Sears, Roebuck and Co. is buying the biggest catalogue retailer in the U.S., Lands’ End, for about US$1.9 billion. Sears will start introducing a selection of Lands’ End products into some of its stores by fall 2002.

Kmart is now being investigated by the FBI for possible criminal violations. Under review are the US$23 million in executive loans it dispersed between October 2001 and its bankruptcy filing in January 2002. It’s also being scrutinized for its vendor allowance policies. It seems the allowances, collected annually, were being entered into the ledger on a quarterly basis. If sales targets weren’t met, the real dollars could not be collected.

CORRECTION: That Rona Lansing that’s reopening in Markham, ON had its grand reopening this past Saturday, not the week before as stated in last week’s edition. (Don’t even ask! – MM)

MARKET INDICATORS
Sales in April by large retailers in Canada were up 4.5% over March, says Statistics Canada, to $6.4 billion. The first quarter of 2002 showed a year-over-year increase of 6.9%. The biggest increase was in sporting and leisure goods.
OVERHEARD… 
“About 70% of our barbecues are bought by Father’s Day.”
– James Jones, general merchandise manager for Réno-Dépôt Inc.at The Building Box opening in Windsor.
NOTED…
Kingfisher’s efforts to secure 100% ownership of Castorama forced Réno-Dépôt CEO Sylvain Toutant to miss the Building Box opening in Windsor, ON last week. He had to travel to Europe for executive meetings with the Castorama board.
ARE YOU IN THE KNOW?
The Spring issue of Hardlines Quarterly Report features: The Three Billion Dollar Club – find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
INDUSTRY NEWS. EVERY DAY
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS THAT MATTER TO YOU. KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

BUSINESS OPPORTUNITIES
MERGER OPPORTUNITY

It’s time to grow our business. We are a leading national manufacturers’ rep agency with major manufacturer clients. We’re looking for a merger with an existing Ontario agency. We can reach critical mass with the right partner.If your current lines are the right fit with ours, we can grow together. Reply in strictest confidence to Box 350, Hardlines, c/o bev@hardlines.ca. (Put “Box 350” in subject line.)

***********************************************************************************
SALES AGENTS, REPS WANTED
Canadian custom manufacturer of unique home address plaques is looking for a sales agency (or agencies) to increase its Canadian and US exposure. Our products are best positioned in specialty hardware and lighting retailers that offer unique quality products.

For more information, please write to PO Box 5821, Station A, Calgary, Alberta T2H 1Y3 or phone 403-253-1865; fax 403-253-4788.

***********************************************************************************
PREQ. REBATES, GMROI, FOIDS –
these are powerful concepts in your work. Asset allocation, diversification, Sharpe ratio – and these are key concepts in investing your money to “retire in style.”

Call or email me to arrange a confidential portfolio review and see how we can work together to grow your hard-earned savings to “higher plateaus.” Mark Flor, BEng., MBA – Investment Advisor, BMO Nesbitt Burns Inc. (member CIPF), Tel. 416-359-7649, Email: mark.flor@nbpcd.com

***********************************************************************************
HELP WANTED

REGIONAL SALES MANAGER
Moen Inc., Canada’s leading supplier of faucets, plumbing parts and accessories, seeks a passionate sales leader for their Montréal office.

The successful bilingual candidate will build upon strong relationships with major and national retail accounts — developing and implementing comprehensive strategies to provide superior service and support. Leading a group of dedicated sales professionals, the Québec manager actively participates in all facets of the business including sales development, program presentation, category management, promotions, and budget planning.

Key requirements for this position include:

  • a minimum of 6 years in a regional sales management role
  • a passion for sales development and growth
  • a proven ability to coach and build teams with a strong customer service focus
  • a well developed network in the hardware retail industry in Quebec
  • knowledge of category management initiatives and national account management
  • a track record of superior performance in retail account management

The bilingual candidate will have superior business planning and presentation skills, and will enjoy a team environment. Candidates should possess a post-secondary education, computer literacy, and corporate reporting experience.

This position offers an attractive salary and sales incentives, a benefits package and more.

For those people interested in moving their careers forward, we invite you to explore this opportunity further by contacting Danek Anthony Inc. Please contact by phone or email: Don Dominczuk, 416/214-9938 or dondomin@uniserve.com ; Tom Carroll, 416/259-4994 or carroll4994@rogers.com

***********************************************************************************

NORAL INSTORE:
Don’t leave your products’ display management
to chance! Let Noral Instore take care
of your instore merchandising.

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201

**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

May13_02

 

“Let every man be swift to hear, slow to speak, slow to wrath.”
– The Bible (James 1:19)
vol. viii, #19 May 13, 2002
 
* Canadian Tire dealer sales up 9.4% in first quarter
* Sodisco-Howden’s first quarter shows impact of restructuring
* CHS focuses on buying function
* Housing starts down in April, but up year over year
* Home Depot tries delivering its own appliances
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS
THAT MATTER TO YOU.
 

KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

ARE YOU IN THE KNOW?
…The Spring issue of Hardlines Quarterly Report features: The Three Billion Dollar Club – find out which home improvement retailers dominate the Canadian scene…Who’s winning the big box war? Big box expansion in Canada….. CLICK HERE to find out more!
RESTRUCTURING AFFECTS SODISCO-HOWDEN’S BOTTOM LINE
Montréal, QC – Sales were up for Sodisco-Howden Group in its first quarter, while the bottom line took a hit due to costs of restructuring and buying another company’s business.

SHG had revenues of $86.6 million for the first quarter, up 19% over the same period a year earlier, due largely to the acquisition of the hardware and building materials business of Marchands Unis, and the strong performance of the LBM sector. Combined with integration costs of $1.8 million for the acquisition of Marchands Unis, the company recorded a net loss of $2.8 million in the first three months of the year.

However, the quarter also marked a transition period, during which SHG made a number of aggressive moves to streamline operations and reduce costs.

According to Jos Wintermans, president and CEO of SHG, the costs of the Marchands Unis acquisition are reflected in the 1Q results, but the benefits of added sales to these dealers will not emerge until later quarters. Hence the hit on the bottom line. However, he expects revenues to increase by as much as 20%, thanks to the new business. “I’m very confident of that and expect to see it in future quarters.”

Wintermans also points to the costs of consolidating the buying offices of its two divisions in Victoriaville, QC and London, ON. All decisions are now being made in Montréal, a move that was completed at the end of March. Again, the costs impact 1Q, “but I think the reorganization will make a great impact on the bottom line in the future,” he says. The impact will come not just from lower operating costs, but from a better negotiating position for the company’s combined divisions. “If you’re a Sodisco-Howden vendor, you’re now sitting across from a buyer who’s responsible for the whole national picture. So now you’re in a position to grow your market share with an organization that’s really growing.”

CANADIAN TIRE RETAIL UP 9.4%, MORE TALK OF U.S. EXPANSION
Toronto, ON – First-quarter profits for Canadian Tire Corp. rose 5.5% year-over-year to $30.3 million, as sales increased 11.1% to $1.24 billion, compared with $1.12 billion a year earlier.

The positive results were driven in part by strong sales at Canadian Tire retail stores, which grew 9.4% to $989 million from $903.9 million. Same-store sales were up 5.8%. Growth was especially strong in core categories such as hardware, automotive and sporting goods. The increase does not include sales by Mark’s Work Wearhouse, which CTC bought in February 2002. Average sales by traditional stores in the first quarter were $8.3 million per year on an annualized basis; new-format stores had sales of $14.8 million on an annualized basis.

The company’s profit picture was enhanced by the retail division, which had an increase of 4.5% in gross operating revenue to $884 million, driven by a similar increase in shipments to dealers. While increases are harder to gauge because of the acquisition of Mark’s Work Wearhouse and by one-time gains from the sale of Hamilton Discount, its credit card arm, in the first quarter of last year, the company said net profit was up 27% year-over-year.

Speaking at its annual general meeting last Thursday, CTC president and CEO Wayne Sales reiterated the company’s interest in continuing its expansion into new categories and geographic markets. The Mark’s acquisition and the expansion of its car wash business are recent examples. But Sales also spoke about U.S. expansion or acquisition. (Old news, of course, for anyone attending last year’s Hardlines Marketing Conference, where Canadian Tire Retail president Mark Foote talked about the very same thing – Editor).
The company opened four new-format stores in the first quarter, for a total 451 outlets, 274 of them new-format, and plans to open another 18 this year. It ultimately wants to increase its store count by 40-50 for a total of 480 to 490 by the end of 2005, with 350-370 of them larger, revamped new-format stores. CTC also wants to increase its revenue by 10% a year and earnings by 10-15%.

CHS SEEKS TO ENHANCE BUYING FOCUS
TORONTO – The Canadian Retail Hardware Association met recently with retail and manufacturers’ groups to examine the challenges facing its Canadian Hardware and Building Materials Show.

The panel included representatives from Castle Building Centres, Homecare Building Centres, Home Hardware, ILDC, RONA Ontario Inc., Spancan, and the Canadian Hardware and Housewares Manufacturers Association. Talks also included the CRHA’s affiliated show sponsors, the Lumber and Building Materials Association of Ontario and the Paint and Decorating Retailers Association.

The show is undertaking lots of research to understand the needs of both delegates and exhibitors. But one prominent trend was the need to emphasize the role of CHS as a buying show.

Other initiatives developed from the meeting included keeping booth rates unchanged, creation of buying incentives such as discounts, terms, rebates, volume discounts and introductory offers by vendors, and special attention to good booth location for new exhibitors.

CHS also intends to work more closely with vendors, buying groups and dealers to develop product knowledge opportunities for store staff.

CHS 2003 will be held February 2-4 at The National Trade Centre in Toronto. For more information, visit www.crha.com or contact Joe Edwards, show manager at 905-821-3470; fax: 905-821-8946; or e-mail: crha@crha.com.

 

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 31.85 18.50 30.85
Canfor 12.60 8.08 9.95
Emco 12.09 3.35 11.00
Goodfellow 11.90 8.00 11.00
Home Depot 53.73 30.30 45.50
Hudson’s Bay 20.10 12.50 13.55
Lowe’s Cos. 48.88 24.99 41.80
Sears Canada 25.00 12.50 23.50
Sodisco-Howden 2.63 0.75 1.84
Taiga Forest 12.75 7.40 12.00
West Fraser 44.42 26.13 40.99
COMPANIES IN THE NEWS
Rona Lansing reopened its Markham, ON store on Saturday with an expanded facility. The size has almost doubled to 30,000 sq.ft., while inventory has been increased by 25%.

At their contractor appreciation event, or “Pro Show,” held in Ottawa, Home Hardware stores there benefitted from $20,000 in hockey tickets, courtesy of the Ottawa Senators hockey team. In addition, the Ottawa-area dealers ran advertising in the Senators’ fan magazine, which ended up garnering orders for about 20 home packages.

Kent Building Supplies had a grand opening celebration on May 4 weekend for its Mt. Pearl big box store, its second in St. John’s, NF. The 130,000-sq.ft. site appears more female-oriented, with a distinct emphasis on certain categories, especially an expanded lighting department and more vignettes devoted to kitchens and bath. The store had a soft opening in the middle of March.

Total revenues for Sears Canada in April increased 2.5% to $506.2 million, from $494.0 million for the same period last year. Merchandise sales increased by 3.9% in the month. Same store sales in retail stores decreased 1.5%.

TruServ Corp. in the U.S. reported a profit for its fiscal year ended March 30 of US$4.6 million, up from a loss of US$13.9 million a year earlier. However, going into 2002, 1Q sales were down 15.5% to US$553.2 million, from US$654.3 million a year ago.

Home Depot in the U.S. will try making its own appliance deliveries instead of outsourcing the service. According to Chain Store Age, the company will open a 40,000-50,000-sq.ft. distribution centre to handle the deliveries.

PEOPLE ON THE MOVE
Edel Wichmann, manager of the Canadian office for Cologne International Trade Shows, has retired after 20 years. Edel was a indefatigable promoter of the world’s largest hardware show, held every March in Cologne, Germany, and has been a loyal supporter of Hardlines and our events through the years … She has been replaced by Barbara Hills, who was formerly with Lufthansa in Toronto for many years, before joining with Cologne. (416-598-3343)
MARKET INDICATORS
The New Housing Price Index rose 0.4% in March and stands 3.3% higher than March 2001. March’s increase was the highest year-over-year increase since May 1990. Monthly advances occurred in 10 of the 21 urban centres surveyed. The largest advance was in Edmonton (+1.1%), due to high demand and increased material and labour costs. Calgary and Montréal followed closely with increases of 1.0% and 0.9% respectively.

Housing starts in Canada decreased 11.3% in April to 184,500 units seasonally adjusted, from 208,000 units in March, according to CMHC. Urban singles declined 6.4% to 96,600 units in April to an annual rate of 96,600 units in April from 103,200 in March while urban multiple starts were down 17.7% to an annual rate of 62,000 units from 75,300. Rural starts, estimated at a seasonally adjusted annual rate of 25,900 units in April, were down from a revised 29,500 units in March. While seasonally adjusted starts are down after a record high March, actual starts are 25.2% higher than April 2001.

The value of residential building permits was down slightly in March. Contractors took out $2.4 billion in permits for housing in March, down 1.2% from a record high in February. However, it’s still up a whopping 30% for the first quarter of the year, compared with the same period a year ago. Housing permits reached $7.2 billion for the first three months of 2002. Nearly 53,000 new dwellings were authorized from January to March, the highest quarterly level since the first quarter of 1990. Three-quarters of that activity was in single-family unit intentions.

NOTED…
I’m delighted to report that our Meet the Buyers Breakfast Seminar is not only a sold-out event, but it’s truly international. We’ve got vendors from the U.S. and even the U.K. registered! We’re examining the possibility of doing this in other cities. Montréal is already being planned and I’d love to hear if anyone would be interested in one out West. Let me know! – Michael
INDUSTRY NEWS. EVERY DAY
DAILY UPDATES ON RETAIL AND INDUSTRY NEWS THAT MATTER TO YOU. KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED
REGIONAL SALES MANAGER
Moen Inc.

, Canada’s leading supplier of faucets, plumbing parts and accessories, seeks a passionate sales leader for their Montréal office.The successful bilingual candidate will build upon strong relationships with major and national retail accounts — developing and implementing comprehensive strategies to provide superior service and support. Leading a group of dedicated sales professionals, the Québec manager actively participates in all facets of the business including sales development, program presentation, category management, promotions, and budget planning.

Key requirements for this position include:

  • a minimum of 6 years in a regional sales management role
  • a passion for sales development and growth
  • a proven ability to coach and build teams with a strong customer service focus
  • a well developed network in the hardware retail industry in Quebec
  • knowledge of category management initiatives and national account management
  • a track record of superior performance in retail account management

The bilingual candidate will have superior business planning and presentation skills, and will enjoy a team environment. Candidates should possess a post-secondary education, computer literacy, and corporate reporting experience.

This position offers an attractive salary and sales incentives, a benefits package and more.

For those people interested in moving their careers forward, we invite you to explore this opportunity further by contacting Danek Anthony Inc. Please contact by phone or email: Don Dominczuk, 416/214-9938 or dondomin@uniserve.com ; Tom Carroll, 416/259-4994 or carroll4994@rogers.com

***********************************************************************************
BUSINESS OPPORTUNITIES

MERGER OPPORTUNITY
It’s time to grow our business. We are a leading national manufacturers’ rep agency with major manufacturer clients. We’re looking for a merger with an existing Ontario agency. We can reach critical mass with the right partner.

If your current lines are the right fit with ours, we can grow together. Reply in strictest confidence to Box 350, Hardlines, c/o bev@hardlines.ca. (Put “Box 350” in subject line.)

***********************************************************************************  
SALES AGENTS, REPS WANTED
Canadian custom manufacturer of unique home address plaques is looking for a sales agency (or agencies) to increase its Canadian and US exposure. Our products are best positioned in specialty hardware and lighting retailers that offer unique quality products.

For more information, please write to PO Box 5821, Station A, Calgary, Alberta T2H 1Y3 or phone 403-253-1865; fax 403-253-4788.

***********************************************************************************
PREQ. REBATES, GMROI, FOIDS –
these are powerful concepts in your work. Asset allocation, diversification, Sharpe ratio – and these are key concepts in investing your money to “retire in style.”

Call or email me to arrange a confidential portfolio review and see how we can work together to grow your hard-earned savings to “higher plateaus.” Mark Flor, BEng., MBA – Investment Advisor, BMO Nesbitt Burns Inc. (member CIPF), Tel. 416-359-7649, Email: mark.flor@nbpcd.com

***********************************************************************************
AGENTS, REPS WANTED

W. H. Maze Company, (Maze Nails). This Illinois based manufacturer of specialty nails is seeking a sales agency in Canada. Targeted markets for Maze Nails include lumber yards, building contractors and the manufactured housing industry. Tom Koch, Vice President of Sales & Marketing for Maze Nails, will be in the Toronto vicinity for business appointments the week of May 13th, 2002. He will also be attending the “Meet the Buyers Breakfast Seminar”, sponsored by HARDLINES on May 15th.

You can learn more about Maze Nails by visiting their website at www.mazenails.com. If you would like to meet with Mr. Koch, please contact Jeffrey Johnson of the State of Illinois Canada Office at (416) 695-9888. The email address is illinois@iltrade.toronto.on.ca .

***********************************************************************************
NORAL INSTORE:
Don’t leave your products’ display management
to chance! Let Noral Instore take care
of your instore merchandising.

Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201

**********************************************************************************
SELL YOUR COMPANY – OR BUY ONE – WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.

ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR
EMAIL: bev@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
______________________________________________
Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.