An incredible morning meeting with buyers from Canada’s top home improvement retailers!

Key buyers from some of Canada’s leading companies will gather on May 15 to explain how to approach their buying teams with new products and programs. This half-day seminar is ideal for any company attempting to make inroads with Canada’s top retailers – and for anyone already supplying them who wishes to sharpen their focus.
So far we’ve confirmed:
* Luc Lemonde, Vice-President Merchandising, Sodisco-Howden Group
* Peter Vernon, Merchant for the Hardware Department (Tools and Hardware) at Home Depot
* Bernie Schneider and Dan McMurdy from Ace Hardware Canada
* James Jones, General Merchandising Manager for Réno-Dépôt and Building Box
* Buyer from Home Hardware Stores (tba)
Space is very limited for this incredible event – so book today!
Only $149 for subscribers, $249 for non-subscribers (+ appropriate taxes).
To register, call Nancy Wright at 416.489.3396, or email her at: nancy@hardlines.ca

Want to sponsor this exciting event? Call Beverly Allen, Marketing Manager at (416)489-3396 or email: bev@hardlines.ca.

Brooklyn, NY – Last week Home Depot opened a 61,000-sq.ft. warehouse-style home centre in a strip mall here. Depot is calling this its “urban neighbourhood” store, and plans to open another, a 77,000 sq.ft. outlet on Staten Island, NY in September, and a two-story, 80,000-sq.ft. unit in the Lincoln Park section of Chicago in January 2003. There are no plans in to bring the concept to Canada until it has been tested for one or two years in the U.S.

Its new mini warehouse is L-shaped and has a 3,500-sq.ft. mezzanine for its DesignPlace home décor department. It stocks about 70% of the 45,000 to 50,000 items a typical Home Depot carries. Company officials said its mix gives more space to better-selling items. For example, a typical Depot has 11 bins of light bulbs; the mini warehouse has seven, but doubles the facings of fast-turning bulbs.

With shorter racking and narrower aisles, the 32-section store includes a scaled down selection of small and large appliances, and does not have an outside selling area for lawn and garden. It doesn’t carry pressure-treated lumber, stationary tools or exterior paint, all of which can be ordered from nearby larger Home Depots.

On the other hand, laundry and cleaning products have been greatly expanded and are displayed on white racking.

Several categories – such as flooring and faucets – are sold mostly on special-order. This store is the first in the chain to offer customers an online kiosk that can link them to the database of Home Depot’s Maintenance Warehouse commercial division.

Another 160 “other” delegates, boosted the delegate ranks even further. These included about 80 representatives from the Wood Products Group, an organization dedicated to promoting wood use that held its annual general meeting in conjunction with the show.

The value of the show has just been assessed by the city of Moncton itself to help it evaluate the Coliseum’s proposal for a $3 million addition. An impact study has revealed that the show accounts for an infusion of upwards of $2.3 million into the local economy. About 90% of attendees at the show are from out of town, resulting in more than 1,200 booked hotel rooms.

Jones now divides his time between Montréal and Brampton, with a lot of travel to Windsor, ON in preparation for the next Building Box opening, which will take place in that city around June 1.

The restructuring is part of a larger initiative by Réno-Dépôt’s new CEO, Sylvain Toutant, who took the helm back in November, 2001. Toutant cleared out almost 70 managers and channel last month in an effort to streamline the chain of command in the firm and to get management closer to the customer.

TruServ Canada Cooperative Inc. will hold its national merchandise market April 22-23 at the Winnipeg Convention Centre. More than 500 vendors will showcase their wares to 600-plus member dealers from across Canada.

GSW Inc. has bought American Water Heater Co. in Johnson City, TN from Southcorp Ltd. According to GSW, this acquisition makes it the third-largest water heater manufacturer in North America. The move is part of the company’s strategy to grow its core businesses. AWHC and GSW Water Heating, based in Fergus, ON, will operate as separate companies.

84 Lumber‘s ambition to be the U.S.’s largest contractor-oriented building centre company came closer to reality last week when it opened another 20 stores, bringing its total to 434. Most of the stores are former Payless Cashway outlets.

Johns Manville is converting its production of fibreglass insulation to an entirely formaldehyde-free formulation. The company began using a resin-based binder in all its insulation in the U.S. beginning in March, and will start making the switch in Canada by August.

MFG2D Marketing Ltd. will merge with Thericon Inc., a company founded by industry veteran David Mackenzie, whose background includes CanWel, Homecare Building Centres and, most recently, Tim-BR-Marts. MFG2D is an electronic ordering system that allows independent home improvement retailers to buy directly from participating manufacturers without having to rely on a distributor.

CORRECTION: When we reported how strong Sico‘s results were a couple of weeks ago (so before the glasses were fixed, right? – Editor), you might have wondered what we were talking about. Seems we missed a decimal place when stating 2001 sales. They were actually $244 million. – Michael

Chris Taylor has joined Cameron Ashley Building Products as marketing and communications manager, based in their Mississauga, ON office. He was formerly with a small marketing agency. (905-677-9471)

WHAT: Hardlines Meet the Buyers Seminar
WHEN: May 15, 2002 from 8:30 a.m. to 11:30 a.m.
WHERE: Four Points Sheraton Hotel, Dixie Road and Highway 401, near the Toronto International Airport

We are delighted to bring together key buyers from some of Canada’s leading companies to tell us how to approach their buying teams with your new products and programs. Ideal for any company attempting to make inroads with Canada’s top retailers – and for anyone already supplying them who wishes to sharpen their focus. So far we’ve confirmed buyers from Home Hardware, Home Depot, Sodisco-Howden Group and Ace Hardware Canada. More details to come!

Cost for subscribers is only $149, for non-subscribers it’s $249. To register, call Nancy Wright at 416.489.3396, email her at: nancy@hardlines.ca.

Want to sponsor this exciting event? Call Beverly Allen, Marketing Manager: bev@hardlines.ca.

Gone are Keith Knight, who had handled garage door openers and miscellaneous hardware; Gary Curtis, an assistant buyer; Graham Teasdale, Lew McGinnis, in charge of air tools; Phyllis Johnson, in logistics and re-buying; Larry Walter, in traffic and logistics, and Susan Banting, another buyer. In addition, two clerical positions were terminated.

Eric Scrafield, who had been national business manager for hardware, has been named national business manager for bed and bath. Replacing him as new national business manager for hardware is Rob McKenzie, formerly with the major appliances group, and before that a power tool buyer for several years.

Reporting to him are: Daryl Villeneuve, who has moved over from housewares to handle hand tools, including garage door openers and air tools, merging roles of Keith Knight and Lew McGinnis; Bill McQueen, who is handling mechanics’ tools; Bob Masich, who stays with power tools; Jill Brown, in charge of outdoor power equipment; Greig Carson, who expands his portfolio to include water products, in addition to AC; and Cindy Jardin, adding in bath accessories to her existing paint, wallpaper and décor portfolio.

Other changes within the hardware department include the naming of Kent Pelletier as retail ad marketing manager, Roy Schuette as category business manager for hardware and Nezam Rampersad as category marketing manager for hardware.

Anticipating a good year ahead, SHG president and CEO Jos Wintermans says the new structure will make the company better able to deal with vendors, “and will help us be more competitive.”

Sodisco-Howden recently completed the acquisition of the supply business of Marchands Unis‘s hardware and building supply dealers. “We’re busy integrating customers and shipments from our Victoriaville distribution centre,” Wintermans says.

The hardware stores taken over from Marchands Unis comprise 30 Eureka dealers, 37 Bâtitout, and 41 Ferplus Quincaillerie dealers. Marchands Unis’s building supply dealers under the Chalifour banner will be combined with SHG’s Servimat building supply business. The combined sales of the two banners is expected to drive SHG’s wholesale shipments of building supplies in Québec to more than $200 million this year.

The suspects, former forest management supervisors who lost their jobs in the wake of the recent countervailing duties, have been shipping contraband to the U.S., primarily Oregon and Rhode Island. The drug that has captured the special attention of the DEA in Washington, DC is tetrabozocyllum (TBSC), known on the street as “bozo” or “clown candy,” a high grade form of marijuana grown hydroponically in abandoned Chimo Charlie lumber yards throughout Vancouver’s west end.

The profits from the illicit drug racket are reputedly being sent overseas to Al-Qaida cells in mountain regions of Ruritania and Pottsylvania. Bush has put the FBI on the alert from a couch in his living room.

The Canadian operation, under president Annette Verschuren, added 15 new stores last year for a total of 78 by the end of 2001. Sales grew by an estimated {>%, from $2.78 billion in 2000 to an estimated $%# billion in 2001. (damn typos! What happened to my glasses? – Editor)

Home Depot in the U.S. is trying out stand-alone garden centres aimed at wholesale and DIY users. The project, which is being launched with little fanfare, has been called “Project Greenback.” Home Depot has picked three sites so far in the Atlanta area, two of them near existing Home Depot outlets. Construction of the 12,000-sq.ft. stores is expected to begin soon.

Rona Inc. announced its support last week of a fundraising effort on behalf of Accueil Bonneau. The campaign hopes to raise more than $400,000 to assist the hundreds of homeless people fed, clothed and sheltered each year by the 125-year old centre.

Benjamin Moore has expanded the rollout of its branded stores across Canada and will count 300 stores within the next few months, says Alistair Linton, now director of retail development for all of North America. The affiliation program for independent paint dealers began in 1999.

BS Building Supplies in Deuxpieds à Gauche, AB has purchased three former Lumber Dudes stores in the Vancouver area after owner Bill Shitely won at bingo on Saturday night. BSBS reportedly paid $143.62 for the sites. Shitely will open the stores with a clearance sale on the excess inventory of used fluorescent lights and hydroponic plant food found in the stores.

Carlo Rossi has been appointed director of marketing at New Market Group in their Associated Food Distributors division. AFD is a food service buying group for the hospitality channel in Canada. Its 35 shareholder members represent more than 120 warehouses across Canada, with sales of more than $4 billion. (905-898-5383)

Exchange-A-Blade has made the following key appointments: Don Haliburton has been appointed general manager, reporting directly to Rob Forbes, president of Exchange-A-Blade. Haliburton brings many years of experience in both public accounting and private industry. He replaces Bob Nelles, who is retiring … Sushila Goundar will assume the responsibilities of controller … Amir Fallah has been named inventory controller and assistant plant manager … Gerry Lees, formerly Ontario and Atlantic sales manager, has retired to pursue other interests. (604-526-4595)

Shell Busey was awarded the BSDA of B.C. Industry Merit Award, given by the association at its Gala awards night on March 3, 2002. A past chairman of the association, Busey is best known as a television and radio personality whose programs are broadcast across the country. (604-513-2205)

After dropping 15.8% in January, U.S. home sales surged ahead by 5.3% in February. Single-family starts reached 875,000 units seasonally adjusted, up from 831,000 in the previous month.

Ace Hardware Canada has finalized a deal with United Farmers of Alberta to supply it with hardware.

The deal, aimed at expanding UFA’s focus beyond strictly farm products, was the result of trials in High River and Claresholm that began in mid-2001 after Ace beat out other suppliers for the program. “We refurbished and tested in two stores, and based on the test results, UFA wanted to move forward and expand their hardlines assortment,” says Dunc Wilson, vice-president of merchandising and marketing for Ace Hardware Canada.

The program will involve all 34 of UFA’s farm supply stores throughout Alberta. The co-op retailer had 2001 sales of $833.5 million in farm supplies, petroleum and other products to 110,000 members. The arrangement is a supply deal only, says Wilson, and does not involve adoption of the Ace banner.

“It just shows that Ace is going to stay. The market is competitive, but Ace is doing the right things to stay here,” Wilson adds.

UFA tried another partnership back in 2000 when it formed a joint venture with AgPro Grain, a subsidiary of Saskatchewan Wheat Pool, for the sale of crop input products. However, the joint venture was dissolved a year later.

This year’s show, to be held August 11-13 at McCormick Place in Chicago, will fit into only two buildings, shrinking exhibition space from a high of 1.2 million sq.ft. in three buildings down to under 900,000 sq.ft. this year. But costs will also be trimmed, in an effort to make the show more affordable for delegates and exhibitors alike. Drayage costs will be cut, while booth prices were reduced by a dollar a square foot in an early bird special that ended November 1, 2001. However, that special will be repeated at next year’s show. Advertising rates have been cut, too, and the show will again release the attendee list at no charge to qualified exhibitors for pre-show mailings.

For anyone coming to Chicago for the show, hotel rates in the city are being rolled back at least 25%.

Duane Goodwin, merchandising vice-president, who headed up the Home Depot contingent, says the venue was their idea, and noted it’s a strategy they’ve used at other shows. The first time it was used in Canada was during the Western Show in Vancouver in the early 90s. At that time, the show got a lot of criticism for its apparent preferential treatment of one retailer over the others.

Ever in search of new products, which he called “our retail lifeblood,” Goodwin reported that the venue worked well for his people. “It’s been a very good show. It’s afforded a lot of vendors [the means] to find us.” Will he repeat it next year? “Not sure,” he replies succinctly.

“The Interlink Conference is an excellent opportunity for like-minded businesses to share ideas and learn from each other,” says Paul Straus, vice-president and CEO of Home Hardware Stores Ltd. “Each member of Interlink heads up a retail organization that is member-focussed and runs on the cooperative business model. We have unique challenges and opportunities that transcend the markets in which we each operate.”

Formed in 1985, the group meets annually to share unique perspectives and ideas, and develop mutually beneficial business strategies. Total retail sales of Interlink members in 2001 were in excess of US$35 billion.

McMunn & Yates Building Supplies Ltd. has purchased Norwest Do-it Center in Thompson, MB from Prendiville Industries. The store is 10,000 sq.ft. in size and serves both the retail and contractor markets in northern Manitoba. This is the ninth retail outlet for McMunn & Yates, which also has a truss plant, a flooring store and a roofing and drywall outlet, and had sales of about $30 million in 2001.

Canadian Tire opened a 106,000-sq.ft. distribution centre last week in Kirkland, QC, near Montréal. The site employs about 75 people and will support daily shipments of automotive hard parts and accessories to CTC’s 133 stores in Québec and the Maritimes.

Matco-Ravary Inc. announced strong growth in its first quarter with sales up 13.3% to $12.1 million. Greatest growth was with contractor customers, up 15%, while retail trade was up 11%. The operating loss typical of the company in the first quarter was reduced from $277,210 in 2000 to $65,678.

Sico Inc. reported sales for fiscal 2001 of $22.4 million, up 8.9% from a year earlier. The company posted earnings before goodwill and amortization of $9.3 million, up 19.6% from $7.8 million a year earlier. Net earnings reached $8.6 million, up 13.7% from $7.6 million in 2000.

Home Depot has doubled its number of stores in Mexico with the acquisition of Del Norte, a four-outlet chain in Juarez. The deal is subject to approval by the Mexican government. Del Norte’s CEO, Eduardo Cantu, will join the team in Mexico. Home Depot is also building a store on a newly acquired site in Mexicali, and work will begin soon on another in Tijuana. Both are scheduled to open by the end of 2002. Home Depot entered Mexico last year with the acquisition of Total Home, a four-store chain in Monterrey and Mexico City.

Scotts Co. has acquired the Lawn Co., a privately held lawn care company in Boston. This boosts the Scotts LawnService unit to operations in 35 U.S. markets, reputedly making it the second-largest player in the lawn care business after ServiceMaster.

Sales by wholesalers were up 2.0% to $3.3 billion in January, according to Statistics Canada. Lumber and building materials were especially strong, gaining 5.8%. Hardware, metals and plumbing were up 0.9%.

After slow growth in 2001, manufacturing shipments in Canada climbed 3.1% in January, says Statistics Canada. Manufacturers trimmed their inventories by 0.5% that month, the eighth consecutive decline.

A grand opening on March 24 marks the fifth opening by Aylwards Home Hardware in Newfoundland. The store, in Gander, was taken over last year from an existing Home Hardware dealer and had a soft opening on December 3.

“We moved to Gander because Home Hardware hasn’t had a store in that market for four years, and an opportunity came up for us to buy something,” says Ron Aylward, general manager. The 12,500-sq.ft. outlet follows the purchase last year of an existing Home Hardware in St. Lawrence. Aylwards has additional stores in Placentia, Marystown and Grand Bank.

Aylwards had sales of $8.5 million last year, but Ron Aylward expects the Gander store to lift that to about $10 million in 2002. He also sees the potential for future acquisitions: “Oh, yes, if any good opportunities come along, we’ll take a look at them.”

Meanwhile, Rona now expects to open its Mississauga site for a Rona Home and Garden by September. Construction of the Kingston store, which was to have opened last summer, has been delayed and will begin construction sometime this year. But with the seeds of Western expansion sown by the acquisition of Revy, Rona believes there’s room for more big boxes in the West, especially Alberta.

Home Depot Canada, already well-ensconced in Southern Ontario, is putting a lot of focus on the Québec market in 2002. It plans to double the number of stores in that province to a total of 12 by the end of this year. One of those is in Gloucester, where Rona plans to open a Regional store later this year.

Geoff Wilson, vice-president industry and investor relations for Loblaw’s, says eco-friendly substitutes can work currently for about half their needs. But by Spring 2003 he anticipates organic alternatives for virtually all of the chemical pesticides currently carried in its 440 garden centres across Canada.

“We believe, and so do our customers, that there is an abundance of alternatives out there” that can be used for domestic use, says Wilson. Both existing chemical-based pesticide suppliers and new, innovative companies are developing the alternatives Loblaw’s is looking for.

Using the slogan, “Chemical Pesticide Free by 2003,” the switch will be coupled with a strong educational component that includes educational handouts to increase consumer awareness.

“Lawn and garden is a growing segment and Loblaw’s is a significant player in this sector,” says Wilson.

Industry commitment got a symbolic push, at least, at the large stand of the German association of hardware retailers, BHB. Virtually all the materials used in the booth’s construction – everything from decking to hardwood meeting tables – were made from materials from certified forests. (The stand was even handing out chewing gum made with treacle from certified forests in South America).

The message is getting through to vendors. Tramontina featured a full line of hammers with certified wood handles. “The aim has been to realize that by buying this kind of product, it will not destroy the world,” says Felisberto Yorges, director of Tramontina Garibaldi. He points out that companies like B&Q in the U.K. are committed to sell only certified forest products. In fact, Castorama and OBI have similar commitments in France and Germany, as do Home Depot and Lowe’s in the U.S.

A number of companies have been going to the Cologne show one year, and the National Hardware Show in Chicago the next. Bosch and Black & Decker have led this movement and neither was at Cologne last year. Interestingly, B&D was not featured at the show again this year – but DeWalt was. It took up a huge exhibition space, reminiscent of years past. But both Bosch and B&D were more sober, less glitzy in their presentations.

Some products that caught our eye:
Compact fluorescents – but really compact, with cf chandelier lights from Megaman … Heavy duty fluorescent work lights from Velalamp Italy … Four-LED halogen flashlight from Acculux with 10 hours of operation. When it’s time to recharge, just pull off the plug cap and plug the connectors into any household socket, without the need of a separate charger … Lenharz featured a quality line of re-usable paint pads for corners, edges and wall application, plus a compact wallpaper application system, complete with glue/water trough, cutter measuring device … Bondex was demonstrating paint designed especially for painting women’s breasts – at least that’s what it looked like from the demonstration. Any actual benefits of the product, unfortunately, were lost on most passersby … A block safe with alarm that can be opened by remote control from SimonsVoss … Air cushion cleaner for outdoor patios and decks, from Karcher for use with its power washers.

The dates for next year’s show, which has been renamed Practical World, are March 9-12, 2003.

TruServ Canada Co-operative Inc. will open four new V&S Options stores by May 1, 2002. They are in Almonte and Barry’s Bay, ON, and Morden and Sundre, MB. The first V&S Options store opened in Picture Butte, AB in September 2001.

Doman Industries has announced that it did not make its scheduled March 15, 2002 semi-annual interest payment on its outstanding 8.75% US$388 million senior unsecured notes maturing 2004, blaming a soft market, uncertain pulp prices and the potential for a big hit from softwood tariffs. The company has 30 days to make payment before defaulting.

Wal-Mart Stores will assume a 6.1% stake in Japanese supermarket chain Seiyu Ltd. and will pay six billion yen (US$46 million) for the stake with an option to take majority control. Both companies will continue to look for acquisitions in Japan.

Hudson’s Bay Co. will add 16 more Home Outfitters locations across Canada this year. This will bring the total number of these kitchen, bath, bed and home décor “superstores” to 38, each averaging 34,000 sq.ft.

Results from Canada’s latest census reveal that the population has grown only 4.0% since the last census in 1996. The census counted 30,007,094 people in the country on May 15, 2001. Growth was strongest in Alberta (+10.3%), Ontario (+6.1%) and British Columbia (4.9%). Concentration of population in urban areas continues, especially in four urban regions: the Golden Horseshoe in Southern Ontario; Montréal and environs; British Columbia’s Lower Mainland and southern Vancouver Island; and the Calgary-Edmonton corridor. In 2001, 51% of Canada’s population lived in these regions, compared with 49% in 1996.

With 3,880 suppliers from 59 countries on hand to meet some 90,300 trade visitors, space at the International Hardware Fair/ DIY`TEC in Cologne, Germany, March 3-6, was sold out. But the 286,000 square metres of exhibition space at KölnMesse featured only seven exhibitors from Canada. But while exhibitors were down from as many as 26 in the past, the presence of buyers and other companies seeking product and merchandising ideas were at a record high for Canadian participation.

The focal point for the more than 100 Canucks at the show was the Third Annual Canada Night Reception, held March 3 on the fair grounds. There, buyers and executives from Canadian Tire, Sears, Home Hardware, Ace Hardware, Acklands-Grainger and Lee Valley Tools enjoyed German beer and rubbed shoulders with representatives from companies such as Ryobi, Weiser, Mibro, Bosch, LePage and more.

This year, the event took on a more international aspect, as the heads of the French manufacturers’ association, Unibal, the British Hardware and Housewares Manufacturers Association, and the European federation Fediyma, were on hand; additional representatives from as far away as Australia also showed up.

This is the first year that attendees at the International Hardware Fair found themselves using the Euro. This new currency replaces the mark in Germany and the currencies of 11 other countries in the European Union. The effect is expected to be positive for consumers, as price comparisons from one country to another become instantly easier, both for end users and retailers themselves. The downward pressure on pricing at both wholesale and retail will have an impact on suppliers, as well.

During the Lord Mayor’s dinner just prior to this year’s show, a new name and logo were unveiled. Beginning next year, the show will be called Practical World, a vague catch-all for the three main sections of the event: tools, locks and security and building materials. Next year’s show will be held March 9-12, 2003.

(Next week: more on what we saw in Cologne – Michael)

Negotiations between the two groups began last year at at the International Hardware Fair/DIY’TEC in Cologne, Germany, where Lucien Hardt, general manager of Euro-Mat, first met Paul Ingevaldson, Ace’s vice-president international, logistics and new business. Euro-Mat had had some previous discussions with Do-it Best Corp. which failed to produce results.

According to Euro-Mat’s Hart, “This is the first-ever intercontinental buying relationship.” Both organizations, he adds, can share their expertise and suppliers to better compete against big boxes.

The aim of the new association, says Herbert, will be to address some of the issues facing the heavily saturated DIY home improvement industry in Europe, including shrinkage and logistics. A proposed promotional campaign to increase consumer awareness and increase the size of the consumer market is also under consideration.

The new association will be launched officially at the BHB’s annual congress in Berlin in April, when other countries from the European Union are expected to join. This initiative by the retail associations follows the formation two years ago of Fediyma, the federation of European DIY manufacturers’ associations.

Sears Canada has announced the retirement of William R. (Bill) Turner, president, merchandising, marketing, and logistics, effective April 17, 2002. Turner began with Sears in 1966 as a management trainee in Ottawa. In 1986, he was appointed vice-president, merchandising and assumed the additional duties of catalogue and distribution in 1989. He was promoted to his latest position in 1997. (416-362-1711)

TruServ Canada is currently upgrading its website with enhancements to the members-only site. Phase two of the website’s development is expected to be completed by September 2002, at which time the site will offer online ordering, as well as sales information and trends based on POS information from the stores themselves.

Hudson’s Bay Co. has reported that sales for the year ended January 31, 2002 increased 0.6% to $7.45 billion. Net earnings for the year were $73.4 million. The Bay had sales of $2.67 billion, down 1.3% from last year, with same-store sales down 4.8%. At Zellers, sales increased 1.9% to $4.69 billion; same-store sales increased 1.1%.

Newell Rubbermaid has taken over American Tool Cos. Newell already owned 49.5%, and paid US$419 million for the remainder, including assumption of debt. American Tool had 2001 sales of US$443.6 million and employs 4,600 people. This latest acquisition will be operated within Newell’s Levelor/Hardware Group, which had US$1.4 billion in sales and is led by B&D alumnus James Roberts. Allen Petersen, former head of American Tool, will continue with the new group as a consultant.

Kmart Corp. will receive $2 billion in new financing to help it through its reorganization, thanks to a decision by a bankruptcy court judge yesterday. The discount retailer will also get up to $150
million to distribute bonuses to its key executives and store managers.

In an undisclosed cash deal, Bed Bath & Beyond in the U.S. has purchased Harmon Stores Inc., which operates 27 health-and-beauty stores.

Weak job growth in 2001 and 2002 is considered the main reason for a small decline in housing starts this year, says CMHC in its first quarter Outlook. They are expected to drop to 156,100 starts from 158,000 in 2001. A stronger economy in 2003 is expected to boost demand again in 2003, with starts forecast to reach 159,200. Alberta is considered where the strongest growth will occur, while British Columbia is expected to continue rebounding from its slump.

Hardlines will be your eyes and ears at the Cologne International Hardware Fair/DIY’TEC this week. We’ll be on the lookout for the latest in product and merchandise trends worldwide. Watch our website every day for updates! — Michael

The boutique approach is something new both for TSC and for Prout’s, a Castle member with a strong contractor customer base. But Prout’s wants to expand its hardware offerings, and is willing to let TSC do it, so it’s turned over its retail showroom to TSC. Prout’s traditional retail contractor customers continue to get served from the service desk at the back of the store.

Called TSC Villager, the smaller size store features about 75% of the assortment found in a larger 22,000-sq.ft. TSC outlet, but in smaller quantities. Existing core lines of hardware, plumbing and electrical, formerly purchased through wholesalers such as Howden, are being replaced by TSC’s own selection (TSC is a member of Mutual Hardware). New lines will reflect TSC’s emphasis on the rural market, with the addition of workwear, safety clothing and equipment, pet supplies and farm products. The Villager experiment has been given a one-year trial period.

Prout’s existing staff, plus some new people, will work the TSC Villager sales floor, under a management contract forged between TSC and Prout’s.

TSC also opened its 19th stand-alone store in Ontario this weekend, this one a full-sized, 22,000-sq.ft. outlet in Peterborough. Another store will follow in Bowmanville in June.

Para ProSource is headed up by Doug Munro, general manager. Formerly a buyer with Homecare Building Centres, he was approached by Para just over a year ago to provide better sourcing and purchasing power to 300 Para dealers across Canada. The result was Para ProSource, which is owned by Para, but operated by Munro on a contract basis.

The buying group does not deal in paint. Instead, it gives dealers better access to accessories and décor lines, which many paint dealers are moving into in a bigger way. Everything from flooring and carpet, blinds and wallpaper are handled by Munro’s group.

Para ProSource helps the paint supplier build loyalty among its dealer customers. “This is really geared for the independent paint and wallpaper store,” he says. “The dealers have become extremely loyal to Para and the program has helped us develop new members.”

Munro is also developing private label products within the group. He’s just launched ProSource private-label brush program, in addition to existing programs for window blinds and wallpaper. “Nothng like this has been done before [for paint dealers],” he notes. “All these dealers had to run around to different suppliers on their own.”

Two more stores, in California and Colorado, will open this year. In addition, Home Depot plans to extend its pro services package to 400 existing stores in the U.S. over the next year, in addition to 535 stores outfitted during the past fiscal year. The company claims that 30% of its business comes from contractors (it’s closer to 25% in Canada). It seeks a greater piece of the estimated US$276 billion contractor market south of the border.

Since severing ties with its U.S. parent last fall, TruServ Canada has been working internally and externally to help dealers run their businesses better. “We were held back somewhat by the U.S. over the past few years,” Charrière admits. “You can expect a sharper focus on our members’ needs.”

Just last week the company launched True Value X-Sell 2002, a series of “in field” meetings to help individual hardware and building materials dealers refocus their businesses and identify new market opportunities. More than 100 stores will be involved in the initiative, which will continue until early June.

Home Depot in the U.S. reported a 53% increase in its 4Q profits, while sales were up 29% to US$13.5 billion. Profits for the fiscal year were up 18% to US$3.0 billion on sales of US$53.6 billion. Number-two player Lowe’s Cos. posted a 26% increase in profits to US$1.2 billion. While Home Depot’s profit level grew by double of Lowe’s, the latter saw same-store sales increase 7.4% in 2001, while Home Depot’s same-store sales were flat.

Rona has broken ground on a site in Mississauga, ON for another Rona Home and Garden big box. The store is scheduled to open in September 2002. Meanwhile, a site in Goucester, ON is on track to open around the third week of May.

Stanley Works has forged an agreement with Home Depot in the U.S. to become the supplier of choice for hand tools. The five-year deal includes Stanley Bostitch pneumatic tools. Stanley will also continue a 1992 deal whereby it manufactures Husky, Home Depot’s proprietary brand of mechanics’ tools and tool boxes. Stanley also now has the exclusive on builders’ hardware in Home Depot.

While in Cologne, be sure and join us for the Canada Night Reception on Sunday, March 3, 2002. It’s sponsored by Hardlines and Cologne International Trade Shows!

If you haven’t already booked your trip to the Cologne International Hardware Fair/DIY’TEC, March 3-6, 2002, contact Carol-Ann Itel at Trade Show Travel by phone: 1-877-873-7469; fax: 403-247-2448; or tradeshowtravel.ca to arrange your trip. Packages include return airfare and accommodations, as well as admission to the Exhibition. – Michael

Throughout the Montréal area on the same day, another 500-plus people were being recruited for stores in Anjou, Brossard, Laval, Mascouche, St. Bruno and St. Laurent.

Rona’s hiring is part of a search for some 1,200 people chain-wide. Retired or older experienced people were courted, as were students. Scholarships are being offered of up to $400 annually for certain students hired by Rona.

Meanwhile, Réno-Dépôt has let go 69 managers – 41 in Ontario and 28 in Québec.

“We’re looking at our store structure over all.” says Sylvain Toutant, president and CEO of Réno-Dépôt. “We had too many people being bosses and we want more people serving the customers.”

Under the old structure, each store manager had up to four assistant managers, who in turn had two or three coordinators. The coordinators have been eliminated, leaving department managers to report directly to the assistant managers.

“As the new CEO, I’m just questioning everything that we’ve done in the past. We’re now more efficient as far as spending time on the floor and training our associates,” Toutant concludes.

TruServ Canada continues to fine-tune its variety store program with a new banner. V&S Options features a broader, more “urban” assortment designed to keep local customers close to home, rather than making a destination of a large-surface retailer in a larger centre.

With its tighter merchandise mix and broader assortment, the format is ideal for smaller stores than a typical V&S Variety store. The ideal size is around 4,000 sq.ft. Within that store, 80% will be a scaled back traditional assortment; the other 20% will be devoted to specialty niches, such as wine making or TruServ’s pet supplies program.

The expanded assortment includes crafts, cards, picture frames, giftware and housewares, in addition to the soft goods typical of the variety, or junior mass merchant, assortment of V&S Variety.

Two stores have signed on for the the format so far – a ground up store in Picture Butte, AB and a V&S reno in Almont, ON that will be completed by the end of March.

Besides the altered assortments, the advertising will be different for the V&S Options stores, says Terry Derraugh, vice-president, merchandising and distribution for TruServ Canada.

About 110-120 existing V&S stores have been identified as candidates for the Options program, which was originally to be called C&S Choices, “but that name didn’t fly,” says Derraugh.

The emphasis on V&S Options also marks a departure from the Crafts ‘n More banner. The five-year experiment will no longer be promoted or recruited, says Derraugh. The 17 existing Crafts ‘n More stores continue to do well, he adds, but TruServ will not recruit further members for this banner.

The Builders Show, held in Atlanta, GA February 8-11, also put the spotlight on appliances and amenities that go inside a house. High-tech and high end were all the rage. Finishes on taps included aged bronze and polished chrome. Stainless steel sinks have moved into the bathroom, sometimes set in granite countertops.

Other advances in home building that were featured included whole-house wiring, private elevators, engineered plywood and foam-insulated panels that eliminate the need for studwalls and a big push on steel framing and poured concrete (the Benchmark System shown here). New systems are being regarded as so cost effective, in fact, that Habitat for Humanity has begun using insulated panels and poured concrete in its affordable homes. Steel framing was touted for its environmental advantages – being completely recyclable, creating less waste on the job, along with its resistance to termites, warping and splitting.

Other environmental products featured at the show included a tankless water heating unit – a 15-inch box that heats water as needed, replacing a 50-gallon hot water tank. Domestic solar panels that tie in with a home’s utility grid can reduce heating bills.

Bill Waters has been appointed director of marketing for the Sexton Group, effective today. He comes over from Weyerhaeuser Building Materials Division in Winnipeg, where he worked in a management position. Prior to that he was with the former Macmillan Bloedel Building Materials in various sales and senior management positions in Western Canada. (204-694-0296)

Castle Building Centres Group has added the following new members: Rosthern Valley Lumber & Building Products, Rosthern, SK; Morrisburg Building Centre, Morrisburg, ON; Greenfield General Store, Queens County, NS; Mike’s Home Centre, Southey, SK; Shoal Lake Building Supply, Shoal Lake, MB; Vaughan Building Supplies, Wolfe Island, ON; Mannings Building Supplies, Blyth, ON.

TruServ Canada begins a series of member meetings today to identify opportunities for new programs and introduce “Store Works Re (6)” for True Value stores. The program includes a detailed business review and market analysis potential aimed at helping retailers refocus their businesses. The workshops will be held in 17 locations across the country and will involve more than 100 True Value stores.

Ainsworth Lumber Co. had a net loss of $30.0 million for the year ended December 31, on sales of $312.9 million. This compares with net earnings of $10.5 million on sales of $331.6 million in 2000. The company ended the fourth quarter with a net loss of $19.3 million on sales of $67.4 million.

After only 15 months, Sears Canada will close the Eaton’s experiment, converting those stores to Sears. There are seven Eaton’s across Canada employing 600 people, and two of the stores, Yorkdale in Toronto and Polo Park in Winnipeg, share mall locations with existing Sears.

Wrapping up a fourth quarter with record earnings, Wal-Mart ended the year with sales of US$217.8 billion, up 13.8% over the prior fiscal year. Net income for the fiscal year increased 6.0% to a record US$6.7 billion, up from $6.3 billion a year earlier. Total same-store sales for the quarter were up 6.9%, including a 7.2% increase for Wal-Mart stores and a 5.7% increase for SAM’S. Total same-store sales for the year were up 5.8%, including a 5.9% increase for Wal-Mart and a 5.7% increase for SAM’S.

Workers at an Iowa Wal-Mart Supercenter auto centre have failed in their attempt to get the union in. The United Food and Commercial Workers have accused Wal-Mart of a “massive anti-worker program” that included threatening to take away staff bonuses, harassment of union supporters, illegal surveillance of workers and failing to replace broken tools for workers.

Better to pay a border tax to Canada than a duty to the U.S., says Rick Doman of Doman Industries. Keep the money in Canada, he urges, but other lumber producers have not said whether they’ll throw in with him. Right now, the penalty is in the form of a duty at the U.S. border. Under Doman’s proposal, Ottawa would place a 15% border tax on low-value lumber products heading to the U.S., if Washington agrees to suspend the existing 32% duties on Canadian timber.

Hardware, metal and plumbing wholesale sales were down 3.5% in 2001, while wholesale lumber and building materials sales rose 1.2%, says Stats Canada. Overall wholesale sales last year were up 2.3%, following an increase of 6.4% from 1999 to 2000.

New housing construction in the U.S. was up 6.3% in January to 1.68 million units, the highest it’s been in almost two years, says the U.S. Commerce Department. This follows a 2.0% decline in December. Despite a recession in the U.S., low mortgage interest rates have fuelled the housing market. First-time home buyers, especially under US$200,000, have been particularly strong. Building permits rose 3.1% in January to a rate of 1.71 million units.

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Canadian operations led the growth of Castorama Group in 2001, which had a consolidated sales increase of 12.9% company wide. But the most significant growth came from the international division, which includes its Canadian division, Réno-Dépôt. International sales grew 24.1% and Réno-Dépôt represented the most buoyant growth within that division – even though it’s the only place where Castorama competes directly with Home Depot.

Besides 14 Réno-Dépôt stores in Québec – mainly in and around Montréal – Castorama now has five Building Boxes in Ontario and plans to open another six there by 2004. Estimated sales for 2001 were approximately $800 million, up more than 20% over 2000, a year that marked what the company referred to as “a considerable slowdown in the Canadian market,” based on weather and deflation. Sales that year grew by an estimated 9% to $650 million.

Réno-Dépôt was bought by Castorama in Spring 1997.

Castorama Group has a total of 540 stores worldwide, and its total sales in 2001 reached Eur9.52 billion (CDN$13.3 billion), up from Eur8.43 billion (CDN$11.8 billion) in 2000. In Europe, Castorama is converting traditional centres in Germany to the large-surface Casto-Dépôt banner. In France, the company has launched its first Castorama L’Entrepôt, a big box format developed with expertise from the Montréal office.

Universal Building Supplies in Saskatoon, SK is the Western Canadian distributor for Royal Building Systems, a vinyl forms system for footings. It was formerly unaffiliated with a group. In the East, Corcom, with two stores, in Stroud and Lefroy, ON, has also signed up.

CBS targets yards that cater to commercial, industrial and institutional accounts. The growth strategy lets Castle woo dealers whose business is at least 90% builder/contractor and therefore do not compete directly with existing Castle members.

Castle hopes eventually to grow the CBS division to 100 dealers and add $100 million in purchasing power.

Moneris Solutions, a processor of credit and debit card transactions in Canada, says it processed more than 6.3 million Visa, MasterCard and Interac transactions in the home improvement category in the fourth quarter of 2001, up 10% from 5.7 million during the same period in 2000.

In addition, total dollars spent in the household/home improvement industry increased 16% from 4Q 2000 to 4Q 2001. Spending in the entire retail segment only realized a 7% increase during the same period.

Dollar volume growth in some of the key home improvement categories breaks down as:
· floor covering: up 15%
· furniture expenditures: up 14%
· drapery and upholstery: up 22%
· paint and wallpaper: up 20%
· appliances: up 26%
· lumber and building supplies: up 27%

Not only has the overall dollar volume grown in this segment but the average amount spent per purchase in the household industry grew 5.7% as the average purchase increased from $183.00 to $193.50. Overall retail, by comparison, was up by only 0.39%.

Moneris Solutions was formed in 2000 as a joint investment between the RBC Financial Group and Bank of Montreal. It also handles loyalty programs, electronic gift cards and wireless payment processing.

Castle Building Centres Group is expanding its dealer base in the West. Since Alan Schoemperlen, development manager for Western business, came on board last year from TruServ Canada, Western membership has increased from 29 to 40 dealers. One of the ways this national group is dealing regionally with members is with deals through its regionally based pool buying program.

ReStore, a retail outlet of Habitat for Humanity that sells donated used and new building materials, opened its second store in Toronto last Tuesday on Caledonia Road near Dufferin and Lawrence. Profits from the stores are used to build homes for the underprivileged. Home Depot Canada, which supports Habitat for Humanity, has donated about $500,000 to ReStore outlets nationwide.

Wal-Mart‘s Puerto Rican division will spend an undisclosed sum to acquire Supermercados Amigo, the leading grocer on the island. The 35-store chain will continue to operate under the Amigo name and be managed by José Revuelta, president of Supermercados Amigo. Wal-Mart plans to invest more than US$400 million in Puerto Rico over the next five years.

The New Housing Price Index rose 0.2% in December from November. Compared with December 2000, this index of contractors’ selling prices increased 2.8%. Monthly rises occurred in 11 of the 21 urban centres surveyed.

Keith Prew has joined Kenroc Building Materials, in the Calgary branch as sales manager. He was formerly at Westroc. (403-276-2262)

Ryan Forsyth has been promoted to regional account team leader – Ontario for LePage. He will be responsible for development of the food channel for LePage across Canada. (905-459-1140, ext. 2808)

The Outstanding Buyer of the Year Award, presented by Centre magazine at the recent Canadian Hardware and Building Materials Show, went to John Dyksterhuis, building products buyer for Home Hardware Stores Ltd. (519-664-2252)

James Gillies has been appointed managing director of Fiskars Canada Inc. Gillies brings 30 years experience in the Canadian durable packaged goods market, including a stint at Newell Rubbermaid. He will relocate to Toronto from Chicago and work out of the Fiskars office in Markham, ON. (905-940-8460)

Jerry Edwards has been promoted to executive vice-president of merchandising at Home Depot Inc. He is now responsible for the company’s merchandising operations and reports to CEO Bob Nardelli. Most recently Edwards was senior vice president – merchandising … Robert DeRodes, CEO of the technology unit of Delta Air Lines, has moved to Home Depot as chief information officer. The move signals the home improvement retailer’s increasing focus on technology as part of its growth strategy.

The latest Hardlines Breakfast was a great success, with almost 200 people crammed into that little room (we’ll have to get a bigger room next year!). Besides everybody being really good sports, your generosity in helping us launch our charitable support of The Inuit Art Foundation netted us more than $300. Thanks again to everyone! – Michael

But the good news was that pre-registration showed retailer attendance up by almost 10%. As Bob Elliott, executive director of the Canadian Retail Hardware Association, which co-hosts the show, says, “These are the best numbers in the last four shows.” (Actual attendance numbers won’t be available for a couple of more days – MM)

Pre-registration by building materials dealers was up 45%, reflecting the partnership of the Lumber and Building Materials Association of Ontario, which held its annual convention in conjunction with CHS. Paint and décor dealers were up 43% and window coverings dealers increased their numbers 90%, showing increased support for two new sections of the show that cater to these specialty retailers.

However, this show suffers from a malaise faced by any company today: how to evolve with the changing marketplace. The barometer of the show’s success or failure is writ large for the entire industry to see: how big is it? How many people showed up? Since it’s smaller this year, many consider it to be dying. Estimates of its viability range from as many as five years to as little as one year. But exhibitors who are committed to the show are looking for ways to make it better, to help it evolve.

And that’s a good thing. The industry needs strong focal points, centres of attention, and for that alone the show is worthwhile. Is it a buying show? Of course not. Does it have to be? Not the way the retail business is consolidated these days. Can it evolve into something else? People like Jim McEntee at Porter Cable/Delta think so. One thing he envisions is increased staff training and product knowledge opportunites, if only more front-line staff can be encouraged to attend.

“It would be a damned shame if this industry couldn’t support its own trade show in Canada,” he says.

For other exhibitors, that evolution is already underway – and paying off. One kitchen and bath exhibitor was delighted that his competitor was pulling out of the show. It meant his programs got more attention from buyers.

Does the show need all the extra events, such as awards and seminars? Yes and no. From the standpoint of attendance, these made little impact on independent dealer attendance. For a few sharp independents, seminars and panels were sources of much needed information on running the business. But even without making a big difference in attendance, these events are necessary. For the show to maintain its credibility as a truly national event, it has to maintain these aspects. Recognizing Canada’s outstanding retailers and best buyers is one of the roles of a national event. Even something as irreverent as the Hardlines Breakfast plays a small role in making the show a true meeting place for the industry.

The Hardware Show in Chicago faces the same challenge. It has seen big vendors, such as Black & Decker and Bosch, pull out. They and other majors are committing to the Cologne International Hardware Fair one year and Chicago the next. As more smaller companies follow suit, both shows may have no choice but to alternate years. The Toronto show’s role as a strong regional showcase can be enhanced. With proper promotion to the U.S., it can draw equally from the Great Lakes states as from Canada. And CHS could make a more affordable alternative to Cologne, if it, too, was on alternate years from Chicago.

In the meantime, the Canadian show remains a good venue for new products, whether it’s a small startup with one good idea or a major with the latest out of R&D. But every exhibitor will appeal more to independents by offering better show specials.

Besides, where else can this editor find so many people from so many sectors, regions and ranks to interview for news?

While they’re definitely there to reaffirm existing relationships with major suppliers, they’re also on the hunt for something unique that will put them ahead of their competition. The absence of some of those majors from this year’s show made that hunt all the easier.

“There are some hidden gems out there,” says Ken Friedmann, tool buyer at Home Hardware Stores. “The upside of some of the big guys being absent from the show means they don’t suck up all our time in their booth, so we do have time to focus on some of the smaller companies with some innovative products.”

Jim Jordan of Kent Building Materials in Saint John, NB agrees that the importance of the show lays in great part with the smaller exhibitors. “You have to search the whole beach so you don’t miss that one important pebble,” he says.

John MacDougall, 66, passed away Saturday, February 2, 2002. Born April 4, 1935 in Sydney, Cape Breton, he spent the early part of his career opening stores in northern Manitoba for the Hudson’s Bay Co. He then held managerial positions in merchandising in Kingston, ON and worked for J.W. Bird in Fredericton, NB and Bedford, NS.

In 1980 he started AWARD Wholesale and Retail Distributors to serve independent dealers in Atlantic Canada. John was one of the giants of the industry, a true visionary responsible for many innovations that benefitted not just his own dealers, but independents across the country.

He is survived by his wife of 40 years, Vivian; daughter, Karen; son, Jamie; granddaughter, Aylssa; brothers, Sinclair, Melvin (Audrey) and Harry (Rhea); sister-in-law, Gloria; several nieces and nephews. Memorial donations may be made to United Church Building Fund.

TruServ Canada’s Pet Junction specialty retail program now numbers 20 full bannered stores and a number of independents. TruServ added 2,200 SKUs to its distribution centre to service the growing sector.

Do-it Best Corp. recorded record levels for its online sales during the holiday season. Despite a softening U.S. economy, holiday sales were up almost 100% over 2000. The increase was attributed to intensive advertising for the web service, a greater assortment of products available online and increased customer ease with this type of purchase.

The Canadian Institute of Plumbing and Heating reports that its 2002/2003 campaign for Habitat for Humanity has raised $458,463. Since 1994, CIPH has raised a total of $1.59 million.

Bernie Owens has been appointed Atlantic Canada sales manager for Westroc. He adds this responsibility to his current role of manager of architectural products for Canada. In his new role, he will report to Germain Voyer, Eastern Canada sales manager, and continue to report to Don Moses for the architectural products business. Owens and his family will relocate to Halifax. He replaces Keith Prew, who left Westroc to join another company. (905-823-9881)

Al Holton has been named regional development manager Ontario for Rona Inc. He was formerly manager LBM development for Ontario (519-4733686) … His purchasing duties have been taken over by Bob Hill and Susan Ryan, LBM buyers at Rona Lansing’s Toronto (Martin Grove) offices. (416-241-8844)

“Take some chances, try different things and have fun with your customer.” – Ibid.

CTC closed 2001 with gross operating revenue of $4.2 billion, compared with $4.0 billion in 2000, due mainly to a 4.0% increase in shipments to dealers.

Retail sales for the fourth quarter were up 5.7% from the same quarter a year earlier, with same-store sales up 1.7%. Gross operating revenue was $1.15 billion, up 8.9%. Earnings before taxes for the quarter were $47.3 million, compared with $34.6 million a year earlier.

The Brampton facility is eager to serve the needs of our Ottawa Valley customers comments Jack Charlebois, CanWel’s Account Manager who will service this region. Initially the new run schedule will include weekly deliveries to the Gananoque and Deep River areas and twice a week delivery to the Ottawa Valley area. The delivery schedule will be reviewed as customers demands warrant changes.

For more information contact Mike Piggot at 1-800-772-4118 ext # 263 or e-mail: mike_piggot@canwel.com

Thanks to these participating companies for making our Showcase a success!

COLOGNE INTERNATIONAL TRADE SHOWS
JDA SOFTWARE CANADA LTD.
TRANS CANADA RETAIL SERVICES
STERLING COMMERCE
NEWS MARKETING CANADA
BLACK EAGLE CONSULTING
CANADIAN HARDWARE AND BUILDING MATERIALS SHOW
DIMENSIONS RETAIL SYSTEMS/SILK
HARDWARE MERCHANDISING/CONTRACTOR CONNECTION
NESBITT BURNS, PRIVATE CLIENT DIVISION
COLLETT DESIGNS INC.
NORAL INSTORE
PROFORMA
WOLF GUGLER & ASSOCIATES

This will be followed by another store in Bowmanville in late May or early June. Both locations are part of a strategy to fill in the region between TSC’s head office in London and its most eastern location, Belleville. The new stores sport brighter colours on their signage and an updated slogan: “We’re the incredible country hardware store,” replacing the old tag, “Farm Auto Hardware.”

The company was taken over last year by three partners, Roy Carter, John Kropp and Gord Illes. The Peterborough store is the second one they’ve opened since then – the first was a 22,000-sq.ft. location in Cambridge last Fall.

The newest store weighs in at 16,000 sq.ft., and reflects TSC’s focus on farm and hardware products – as well as the company’s commitment to expand beyond its core rural customer. “We’re expanding our scope,” says Carter, who is now president. “We’re trying to broaden our appeal to the DIYers and those who aspire to the country lifestyle – and, of course, to builders and contractors.”

A new format and banner, TSC Villager, is also under development and is scheduled to open this Spring in Forest, ON.

Carter wants to see an average of two openings a year for the next five years. “And if I can ramp that up, I will,” he adds.

It also earned Rona the Hardlines Newsmaker of the Year Award for 2001.

The award was presented at the 7th annual Hardlines Show Breakfast, which opened the Canadian Hardware and Building Materials Show at the National Trade Centre. The award recognizes the retailer that has made the greatest impact on the industry over the past year and is sponsored by Trans Canada Retail Services. Claude Bernier, Rona’s executive vice-president of tradtional stores, was on hand to accept the award.

For the first time this year, a supplier was honoured with the Newsmaker Award, as well. The US$500 million takeover of Masonite by Premdor last August was the latest – and most significant step in its expansion. With more than 70 facilities in 12 countries, this Canadian-owned company has ensured its position as a world leader in door and entry system sales.

The award was sponsored by Sterling Commerce, and presented to Larry Repar, executive vice-president and managing director of sales and marketing, Masonite International Corp.

Although the U.S. softwood lumber dispute had an impact on sales, and resulted in a drop in U.S. sales of about 6%, those sales only account for 25% of Taiga’s overall business, says Lloyd Hansen, the company’s CFO. Instead, stable pricing in both its dimension lumber and panel business had a positive impact on profits, even as volumes did not increase much over last year. Year-to-date earnings reached $5.5 million, compared with $554,000 a year earlier.

Peavey Industries has been concentrating on refurbishing its existing stores, including major retrofits to completely new facilities, including Camrose, Medicine Hat, and Grande Prairie, AB; and Saskatoon, SK. Its last new store opening was in Moose Jaw, SK five years ago.

Sales for Mark’s Work Wearhouse for the year ended January 26, 2002 reached $511.4 million, up 4.8% over the same period a year earlier. Things slowed a bit in the fourth quarter, with sales up 3.2%.

National Retail Credit Services Corp. (NRCS) has changed its name to Trans Canada Retail Services, to align itself more closely with the brand recognition of its parent, Trans Canada Credit Corp.

GE Capital will pay CDN$337.7 million for KingFisher’s financial services division. The deal includes providing retail credit services to KingFisher’s B&Q and Comet stores and could go beyond that, to include stores in France and Germany.

Wholesalers’ sales in December reached $201 million. This pushed the 2001 total to a record $3 billion, a 3.3% increase over 2000. Each product group reported increases, including plumbing, waterworks, industrial PVF, HVAC/R and hydronics, which was up up more than 20%. By region, 2001 total sales were down slightly in B.C., up 10% in Alberta and the Territories, up 2.5% in Saskatchewan and Manitoba, up 2.5% in Ontario, up 2% in Québec and up 3% in Atlantic Canada.

Denise Goodchild has been appointed marketing and communications supervisor at Homecare Building Centres (Tim-BR Mart Ontario). Formerly with Beaver Lumber, Goodchild now reports to Homecare president Don Nash. (905-671-2424)

The Brampton facility is eager to serve the needs of our Ottawa Valley customers comments Jack Charlebois, CanWel’s Account Manager who will service this region. Initially the new run schedule will include weekly deliveries to the Gananoque and Deep River areas and twice a week delivery to the Ottawa Valley area. The delivery schedule will be reviewed as customers demands warrant changes.

For more information contact Mike Piggot at 1-800-772-4118 ext # 263 or e-mail: mike_piggot@canwel.com