HARDLINES NEWS SPECIAL

Canada’s electronic information service for home improvement industry

October 29, 2001

Volume vii, #45

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

Need a comprehensive list of the top retail customers in the Canadian market?

 

Click here! https://hardlines.ca/html/whos_who.html

 

* * * * * *

WILSON AND BICE TO LEAVE SODISCO-HOWDEN

As part of the latest shake-up at Sodisco-Howden Group, divisional general managers are being eliminated. Effective

November 9, Bill Wilson will end his role as vice-president and general manager of the Howden Division in London, ON. He

spent 30 years at Howden, and was a Pro dealer before that. Terry Bice, general manager of the Smith-Barregar Division

in Langley, will also leave.

______________________________________________

CLARIFICATION:

Tim-BR Mart stores nationwide will carry Air Miles rewards Tim-BR-Marts Ltd. has signed an agreement to take on the Air

Miles rewards program in Western Canada while AWARD is picking it up in Atlantic Canada. The program will be

promoted nationally in conjunction with the Tim-BR Mart brand, exclusively for dealers carrying that banner.

Tom Smith, president of AWARD in Dartmouth, NS, notes that Sobey’s and PharmaSave have also got the program for their

respective retail sectors. “With three of the biggest retailers in Atlantic Canada carrying the program, the

visibility is going to be huge,” he says. The two buying groups join fellow Matreco member Homecare

Building Centres in Ontario, which has carried the program there since 1993. As with all Matreco member groups, except

Groupe BMR in Québec, the majority of Homecare’s dealers operate under the Tim-BR Mart banner.

______________________________________________

COMPANIES IN THE NEWS

Supplierpipeline Inc. has announced the acquisition of Compact Wood Products, a Richmond Hill, ON-based

manufacturer of wood climbing products, including attic loft ladders, wood step, extension and specialty ladders. This

acquisition follows Supplierpipeline’s purchase of Caradon Lite Products earlier this year.

______________________________________________

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 4,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

Contact Eugenia Canas at 416-489-3396 or email:

 

buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

 

 

 

 

 

 

HARDLINES NEWS SPECIAL

Canada’s electronic information service for home improvement industry

October 29, 2001

Volume vii, #45

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

Need a comprehensive list of the top retail customers in the Canadian market?

 

Click here! https://hardlines.ca/html/whos_who.html

 

* * * * * *

WILSON AND BICE TO LEAVE SODISCO-HOWDEN

As part of the latest shake-up at Sodisco-Howden Group, divisional general managers are being eliminated. Effective

November 9, Bill Wilson will end his role as vice-president and general manager of the Howden Division in London, ON. He

spent 30 years at Howden, and was a Pro dealer before that. Terry Bice, general manager of the Smith-Barregar Division

in Langley, will also leave.

______________________________________________

CLARIFICATION:

Tim-BR Mart stores nationwide will carry Air Miles rewards Tim-BR-Marts Ltd. has signed an agreement to take on the Air

Miles rewards program in Western Canada while AWARD is picking it up in Atlantic Canada. The program will be

promoted nationally in conjunction with the Tim-BR Mart brand, exclusively for dealers carrying that banner.

Tom Smith, president of AWARD in Dartmouth, NS, notes that Sobey’s and PharmaSave have also got the program for their

respective retail sectors. “With three of the biggest retailers in Atlantic Canada carrying the program, the

visibility is going to be huge,” he says. The two buying groups join fellow Matreco member Homecare

Building Centres in Ontario, which has carried the program there since 1993. As with all Matreco member groups, except

Groupe BMR in Québec, the majority of Homecare’s dealers operate under the Tim-BR Mart banner.

______________________________________________

COMPANIES IN THE NEWS

Supplierpipeline Inc. has announced the acquisition of Compact Wood Products, a Richmond Hill, ON-based

manufacturer of wood climbing products, including attic loft ladders, wood step, extension and specialty ladders. This

acquisition follows Supplierpipeline’s purchase of Caradon Lite Products earlier this year.

______________________________________________

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 4,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

Contact Eugenia Canas at 416-489-3396 or email:

 

buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

 

 

 

 

 

 

 

HARDLINES

Canada’s electronic information service for home improvement

industry

November 26, 2001

Volume vii, #50

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Réno-Dépôt tries smaller stores, smaller markets

* Sodisco-Howden buys hardware and LBM from Marchands Unis

* Bill Wilson is back at Howden

* Cologne Show puts focus on building materials in 2002

* Home Depot will open in Montréal next week

* * * * * *

HARDLINES TO SPEAK AT NEXT MEETING OF

THE WOMEN’S CONSUMER PRODUCTS NETWORK –

DON’T MISS THIS EVENT!!!

Beverly Allen, Marketing Manager of Hardlines, will present

a NEWLY UPDATED overview of the retail hardware and home

improvement industry, including the size of the market,

retail trends and emerging product categories. Find out the

latest on what’s going on behind the scenes with the key

players in retail hardware/home improvement.

WCPN Breakfast Meeting-8:30 to 10:30 a.m., Tuesday, December

4th, 2001. Loblaws at Heartland Town Centre at the corner of

McLaughlin Road and Britannia Road in Mississauga, ON.

Members only: $10.00

(HARDLINES IS A PROUD SPONSOR OF WCPN)

* * * * * *

NEW: POWERPOINT PRESENTATION

ON THE CANADIAN MARKET

A point-by-point illustration of the Canadian market and the

growth of its key players.

Dazzle your bosses and impress your friends with this one!

($179 + taxes for subscribers, $449 + taxes for

non-subscribers.)

Call Nancy Wright at 416.489.3396, email her at:

 

nancy@hardlines.ca, or go online:

 

https://hardlines.ca/html/order.html to order any of the

 

above publications.

* * * * * *

MARCHANDS UNIS SELLS HARDWARE AND LBM

SIDE TO SODISCO-HOWDEN

An on-again off-again deal is … on again. Sodisco-Howden

Group has entered into an agreement to acquire the hardware

and building materials division of Marchands Unis. The $20

million deal, expected to close by January 31, 2002, gives

SHG another 150 hardware and building supply dealers in

Québec and francophone areas of Eastern Ontario and New

Brunswick. They join more than 800 Pro and Do-it center

dealers across Canada and will continue to operate under

their own banners, namely Bâtitout, Ferplus Quincaillerie

and Jardirêve.

Marchands Unis also services 200 sporting goods dealers that

operate as Excellence Sports, Sports Excellence and Propac

Chasse et Pêche. They will remain with Marchands Unis as

part of its new focus on sports, hunting and fishing.

According to Jos Wintermans, president and CEO of SHG, a

sale had been under consideration for about three years, but

neither side was ever able to come to a conclusion. “We

revived this as soon as I was in place,” says Wintermans,

who took over in July, 2001. “The key to it was the

refinancing we had to do.” Congress Financial Corp., an

asset-based lender, has put up a new $55 million line of

credit, from which the purchase will be funded.

The addition to its dealer ranks is expected to enable SHG

to increase its shipments by $100 million, taking it over

$500 million in overall annual sales. It will also give a

boost to its alliance with ILDC under SpanCan. “The deal

will help us increase the SpanCan buying group volume, which

fills the gap we had when we lost Revy to Rona,” Wintermans

says.

The deal is also part of SHG’s strategy to clean its house,

paving the way to effectively handle additional distribution

capacity. That reorg has included centralizing buying from

both its Victoriaville and London, ON distribution centres

into its Montréal head office.

“There’s a lot of opportunity to work on the vendor side to

make things simpler, to negotiate for the whole business,

not just the Sodisco or the Howden business,” Wintermans

concludes.

______________________________________________

RÉNO-DÉPÔT TRIES SMALLER BIG BOX FORMAT

Réno-Dépôt prides itself on some of the largest home

improvement stores in the country. But the store that opened

this past weekend in Sherbrooke, QC marks the company’s

experiment with a slightly smaller store to suit a smaller

market, says Réno-Dépôt president and CEO Sylvain Toutant.

This one is 124,000 sq.ft. and, if successful, Toutant sees

rolling the concept into other similar communities. “If

Sherbrooke is a good town, then so is Trois Rivières.”

Réno-Dépôt’s stores can get as big as 160,000 sq.ft. By

comparison, Home Depot’s stores are typically around 130,000

sq.ft.

The smaller size does not denote a new retail concept à la

Home Depot’s new 50,000-80,000-sq.ft. “urban” stores, but

rather a pragmatic response to the need for the best

available sites. “It’s really about accepting the

opportunity in the marketplace,” says Paul Hètu,

vice-president marketing for Réno-Dépôt. “It’s not a

compromise, not a different store.”

The pressure, he adds, was on the merchandising team to

create the same kind of shopping experience as a larger

store. As a result, some departments got trimmed a bit. For

example, the number of faucets dropped from 422 to about

350, without changing the look of the department, insists

Hètu. “Is 350 enough to knock you off your feet? Yes!” The

kitchen showroom was also downsized slightly, though the

same selection is still available. On the other hand,

departments such as paint got even more space.

Réno-Dépôt’s next Building Box will open in Windsor, ON in

Spring 2002. That store will also be slightly smaller,

weighing in at just under 130,000 sq.ft.

While stalled on their entry into Southern Ontario in

November 2000, Réno-Dépôt has since picked up steam with two

Building Box openings this month, one in Mississauga on

November 14 and London, ON on November 28, in addition to

Sherbrooke this past weekend. “It’s not a race for the

number of stores,” says Toutant. “It’s a race for the number

of profitable stores.”

______________________________________________

COLOGNE SHOW 2002 WILL INCREASE

FOCUS ON BUILDING MATERIALS

Under a mandate to become more user-friendly, the

International Hardware Show/DIY’TEC in Cologne will

concentrate on building materials in 2002.

The show has been coordinated with various European

associations – including the Construction and DIY

Manufacturers Association and the Federal Association of

German Building and Garden Specialist Stores.

“In terms of the organization of the show, and of the

European presence there, it is completely business as

usual,” says Edel Wichmann, manager of Canadian

representation for the show. “The economy is on a downward

trend globally, but that makes a company’s presence all the

more important, because it establishes and develops contacts

that non-exhibiting competitors may not be making.”

In 2001, the Cologne show counted 3,832 exhibiting companies

from 58 countries, and 87,000 visitors from 123 countries.

______________________________________________

COMPANIES IN THE NEWS

Home Depot Canada’s 77th store, and its first right in

Montréal, will open November 29. The store, located at 1000,

West Sauvé Street, brings the retailer’s total in Québec to

five.

Sodisco-Howden has posted third-quarter results for the

period ended September 30th, 2001. The company had revenues

of $108,306 million for the quarter, an 8% increase from the

same quarter in 2000. The hardware division increased 4.6%

to $59.1 million, while lumber and building materials rose

11.4% to $45.7 million, and other sources reached $3.5

million. The company posted net earnings of $279,000.

Revenues for the nine-month period were $300,660.

T-Fal has made an offer to buy selected inventory from

Moulinex Canada, which entered bankruptcy on November 14.

Moulinex and Krups brand products are expected to continue

to be sold by T-Fal if the sale goes through. Under the

terms of the offer, T-Fal will assume existing warranties

for certain Moulinex products.

LePage, a division of Henkel Canada, has chosen KM Agency

Ltd. as its sole agent in Atlantic Canada, effective

December 1st, 2001. Previously responsible for LePage’s DIY

channel, KM will now be responsible for the professional

markets channel, as well.

Hudson’s Bay Co. has opened two more Home Outfitters stores,

bringing the total to 21. One store, opened in Edmonton, AB,

marks the second in that province. The retailer also opened

a store in Winnipeg, MB. Both locations are more than 40,000

sq.ft. and employ approximately 100 people.

Wal-Mart Stores is shifting its buying away from its Hong

Kong agent and into Shenzhen, in southern China. The company

said it wants to deal directly with suppliers and be closer

to manufacturers. But the move adds to fears that service

industry jobs will migrate across the Chinese border just as

manufacturing jobs did in the 1980s.

Sears, Roebuck and Co. has said it expects its same-store

sales during the holiday shopping season to fall 3% to 4%.

Total domestic sales for the four weeks ended November 30

were down 3.4% from a year ago to US$2.15 billion.

Lowe’s Cos. Inc. has reported third-quarter sales were up

21% to US$5.45 billion from US$4.5 billion. Same-store sales

rose 4%. Net income was US$250.5 million, up from US$202

million a year earlier. Healthy results were attributed due

to consumer focus on their homes.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	26.55
Canfor	16.95	7.65	9.25
Emco	7.50	2.60	6.25
Goodfellow	11.00	8.00	8.60
Home Depot	49.74	47.61	45.68
Hudson’s Bay	17.65	12.40	14.39
Lowe’s	64.90	34.25	42.88
Sears Canada	37.25	18.55	17.50
Sodisco Howden	2.80	0.75	1.40
Taiga Forest	10.00	6.80	9.50
West Fraser	36.50	21.00	37.00

 

______________________________________________

“Is not life a hundred times too short for us to bore

ourselves?”

– Friedrich Nietzsche (1844-1900)

______________________________________________

MARKET INDICATORS

Statistics Canada has released its Composite Index, posting

a 0.1% gain in October. The index was buttressed by housing:

both housing starts and existing home sales hit their

second-highest level of the year in October.

Wholesale trade fell 0.9% in September, says Stats Canada.

Nine of the 11 sectors reported declines. Over the past

year, wholesale trade has reported three monthly declines

equal to or in excess of 0.9%, and the trend has continued

to rise.

Consumers paid 1.9% more in October than they did in October

2000 for the goods and services in the Consumer Price Index

(CPI) basket, according to Stats Canada. It was the

smallest increase since July 1999. The index rose 2.5% over

the 12 months ending in October. Increases for this index

have ranged between 2.5% and 2.7% since May.

In September, retail sales dropped 1.7% to $23.7 billion –

the largest monthly decline since the ice storm of January

1998 disrupted retail sales in Central and Eastern Canada.

In constant dollars, retail sales tumbled 2.3% in September,

after remaining flat for four months.

U.S. consumer prices fell in October, as reported by the

U.S. Labor Department. The index declined 0.3% last month

following a 0.4% gain in September, the Labor Department

said. Excluding the more volatile food and energy prices,

the so-called core CPI rose 0.2% for the fourth straight

month.

______________________________________________

PEOPLE ON THE MOVE

Bill Wilson’s departure from the Howden Division of

Sodisco-Howden Group was mercifully short. He’s back in the

London division full-time under a renewable contract. With

the consolidation of executive teams into SHG’s Montréal

corporate offices, Wilson will work with Howden’s key buying

group and large retailer customers. (519-664-2200)

While all the buying duties have not been confirmed yet for

Sodisco-Howden’s Montréal team, we have heard that Al Lynn,

Howden’s merchandising director at Howden, has agreed to

move to Montréal as national director, merchandising,

responsible for all merchandising operations. (514-286-8986)

Tony Duffy, vice-president of sales & marketing at Tremco

Canada, has been appointed to the CHHMA board of directors.

He replaces John Hammill of Moen Inc., who resigned from the

board due to a change in job function. Duffy will serve the

balance of Mr. Hammill’s term. (416-282-0022)

Home Depot Inc. has announced that its current CEO, Bob

Nardelli, will become chairman of the company next year.

Nardelli will replace current Home Depot chairman and

co-founder Bernie Marcus on January 1, 2002. The company

added that Nardelli would give up the president’s position

when he becomes chairman. (416-609-0852)

Seljax Int’l Inc., a Canadian software company that provides

software solutions to the building materials industry, has

added sales agents in Lexington, KY to increase its hold on

the U.S. market. Fran W. Anderson, vice-president of U.S.

sales and James L. Hughes, major accounts manager, have

joined the Seljax team south of the border. (1-800-651-7955)

The Canadian Institute of Plumbing and Heating Board has

appointed GSW’s Terry Parsons as director. Parsons fills one

of the three vacancies on the board. He is president of GSW

Water Heating Cos. in Fergus. Parsons replaces Rod Pullen

from Brasscraft. (519-942-3075)

TruServ Corp. has appointed Pamela Forbes Lieberman as CEO.

Lieberman came to TruServ last March as CFO; she took on the

duties of CFO last July upon the resignation of then-CEO

Donald Hoye. Last year, the previous CFO found more than

$100 million in accounting errors that forced TruServ to

post a $131 million loss for 1999. This year, Lieberman

uncovered more problems that required it to restate results

for 1997-99. (204-452-6615)

CORRECTION: Check your spelling of Luc Lemonde (appointed

vice-president of merchandising at Sodisco-Howden Group

Montréal offices); Serge Imbeault ( now vice-president of

operations in charge of all warehouses); and Robert Harritt,

executive vice-president and CFO. We got them ALL wrong in

our last issue. Yikes! (514-286-8986)

* * * * * *

INDUSTRY NEWS. EVERY DAY –

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS

THAT MATTER TO YOU. KEEP INFORMED. VISIT hardlines.ca –

EVERY DAY!

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE

THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel

 

Wichmann, 416-598-3343; or colognet@idirect.com. To book

 

your flight and hotel, call Carol-Ann Contact Trade Show

Travel by phone: 1-877-873-7469; fax: 403-247-2448; or

 

tradeshowtravel@shaw.ca to arrange your trip. Packages

 

include return airfare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally

famous Canada Night Reception on Sunday, March 3, 2002,

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

* * * * * *

OVERHEARD …

“The idea is to carry as much in-stock as possible.”

– Sylvain Toutant, president and CEO of Réno-Dépôt, at the

recent opening of The Building Box in Mississauga, ON.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL INSTORE:

BOOST your retail profile with instore sales support

for your products and merchandising

 

Visit http://www.noralmarketing.com

 

or call 519-439-6800 ext. 201

* * * * * *

PROMOTE YOUR COMPANY BETTER

Want to communicate more effectively to your customers?

Need help announcing new products, businesses or marketing

initiatives?

McLARNEYCOM brings vendors and retailers the marketing tools

they need to boost sales:

press releases, corporate brochures, customer newsletters,

direct mail and more!

 

Contact us at 416-489-3396; buzz@hardlines.ca

 

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

 

Contact us at 416-489-3396 or email: buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@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. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

 

HARDLINES

Canada’s electronic information service for home improvement

industry

November 26, 2001

Volume vii, #50

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Réno-Dépôt tries smaller stores, smaller markets

* Sodisco-Howden buys hardware and LBM from Marchands Unis

* Bill Wilson is back at Howden

* Cologne Show puts focus on building materials in 2002

* Home Depot will open in Montréal next week

* * * * * *

HARDLINES TO SPEAK AT NEXT MEETING OF

THE WOMEN’S CONSUMER PRODUCTS NETWORK –

DON’T MISS THIS EVENT!!!

Beverly Allen, Marketing Manager of Hardlines, will present

a NEWLY UPDATED overview of the retail hardware and home

improvement industry, including the size of the market,

retail trends and emerging product categories. Find out the

latest on what’s going on behind the scenes with the key

players in retail hardware/home improvement.

WCPN Breakfast Meeting-8:30 to 10:30 a.m., Tuesday, December

4th, 2001. Loblaws at Heartland Town Centre at the corner of

McLaughlin Road and Britannia Road in Mississauga, ON.

Members only: $10.00

(HARDLINES IS A PROUD SPONSOR OF WCPN)

* * * * * *

NEW: POWERPOINT PRESENTATION

ON THE CANADIAN MARKET

A point-by-point illustration of the Canadian market and the

growth of its key players.

Dazzle your bosses and impress your friends with this one!

($179 + taxes for subscribers, $449 + taxes for

non-subscribers.)

Call Nancy Wright at 416.489.3396, email her at:

 

nancy@hardlines.ca, or go online:

 

https://hardlines.ca/html/order.html to order any of the

 

above publications.

* * * * * *

MARCHANDS UNIS SELLS HARDWARE AND LBM

SIDE TO SODISCO-HOWDEN

An on-again off-again deal is … on again. Sodisco-Howden

Group has entered into an agreement to acquire the hardware

and building materials division of Marchands Unis. The $20

million deal, expected to close by January 31, 2002, gives

SHG another 150 hardware and building supply dealers in

Québec and francophone areas of Eastern Ontario and New

Brunswick. They join more than 800 Pro and Do-it center

dealers across Canada and will continue to operate under

their own banners, namely Bâtitout, Ferplus Quincaillerie

and Jardirêve.

Marchands Unis also services 200 sporting goods dealers that

operate as Excellence Sports, Sports Excellence and Propac

Chasse et Pêche. They will remain with Marchands Unis as

part of its new focus on sports, hunting and fishing.

According to Jos Wintermans, president and CEO of SHG, a

sale had been under consideration for about three years, but

neither side was ever able to come to a conclusion. “We

revived this as soon as I was in place,” says Wintermans,

who took over in July, 2001. “The key to it was the

refinancing we had to do.” Congress Financial Corp., an

asset-based lender, has put up a new $55 million line of

credit, from which the purchase will be funded.

The addition to its dealer ranks is expected to enable SHG

to increase its shipments by $100 million, taking it over

$500 million in overall annual sales. It will also give a

boost to its alliance with ILDC under SpanCan. “The deal

will help us increase the SpanCan buying group volume, which

fills the gap we had when we lost Revy to Rona,” Wintermans

says.

The deal is also part of SHG’s strategy to clean its house,

paving the way to effectively handle additional distribution

capacity. That reorg has included centralizing buying from

both its Victoriaville and London, ON distribution centres

into its Montréal head office.

“There’s a lot of opportunity to work on the vendor side to

make things simpler, to negotiate for the whole business,

not just the Sodisco or the Howden business,” Wintermans

concludes.

______________________________________________

RÉNO-DÉPÔT TRIES SMALLER BIG BOX FORMAT

Réno-Dépôt prides itself on some of the largest home

improvement stores in the country. But the store that opened

this past weekend in Sherbrooke, QC marks the company’s

experiment with a slightly smaller store to suit a smaller

market, says Réno-Dépôt president and CEO Sylvain Toutant.

This one is 124,000 sq.ft. and, if successful, Toutant sees

rolling the concept into other similar communities. “If

Sherbrooke is a good town, then so is Trois Rivières.”

Réno-Dépôt’s stores can get as big as 160,000 sq.ft. By

comparison, Home Depot’s stores are typically around 130,000

sq.ft.

The smaller size does not denote a new retail concept à la

Home Depot’s new 50,000-80,000-sq.ft. “urban” stores, but

rather a pragmatic response to the need for the best

available sites. “It’s really about accepting the

opportunity in the marketplace,” says Paul Hètu,

vice-president marketing for Réno-Dépôt. “It’s not a

compromise, not a different store.”

The pressure, he adds, was on the merchandising team to

create the same kind of shopping experience as a larger

store. As a result, some departments got trimmed a bit. For

example, the number of faucets dropped from 422 to about

350, without changing the look of the department, insists

Hètu. “Is 350 enough to knock you off your feet? Yes!” The

kitchen showroom was also downsized slightly, though the

same selection is still available. On the other hand,

departments such as paint got even more space.

Réno-Dépôt’s next Building Box will open in Windsor, ON in

Spring 2002. That store will also be slightly smaller,

weighing in at just under 130,000 sq.ft.

While stalled on their entry into Southern Ontario in

November 2000, Réno-Dépôt has since picked up steam with two

Building Box openings this month, one in Mississauga on

November 14 and London, ON on November 28, in addition to

Sherbrooke this past weekend. “It’s not a race for the

number of stores,” says Toutant. “It’s a race for the number

of profitable stores.”

______________________________________________

COLOGNE SHOW 2002 WILL INCREASE

FOCUS ON BUILDING MATERIALS

Under a mandate to become more user-friendly, the

International Hardware Show/DIY’TEC in Cologne will

concentrate on building materials in 2002.

The show has been coordinated with various European

associations – including the Construction and DIY

Manufacturers Association and the Federal Association of

German Building and Garden Specialist Stores.

“In terms of the organization of the show, and of the

European presence there, it is completely business as

usual,” says Edel Wichmann, manager of Canadian

representation for the show. “The economy is on a downward

trend globally, but that makes a company’s presence all the

more important, because it establishes and develops contacts

that non-exhibiting competitors may not be making.”

In 2001, the Cologne show counted 3,832 exhibiting companies

from 58 countries, and 87,000 visitors from 123 countries.

______________________________________________

COMPANIES IN THE NEWS

Home Depot Canada’s 77th store, and its first right in

Montréal, will open November 29. The store, located at 1000,

West Sauvé Street, brings the retailer’s total in Québec to

five.

Sodisco-Howden has posted third-quarter results for the

period ended September 30th, 2001. The company had revenues

of $108,306 million for the quarter, an 8% increase from the

same quarter in 2000. The hardware division increased 4.6%

to $59.1 million, while lumber and building materials rose

11.4% to $45.7 million, and other sources reached $3.5

million. The company posted net earnings of $279,000.

Revenues for the nine-month period were $300,660.

T-Fal has made an offer to buy selected inventory from

Moulinex Canada, which entered bankruptcy on November 14.

Moulinex and Krups brand products are expected to continue

to be sold by T-Fal if the sale goes through. Under the

terms of the offer, T-Fal will assume existing warranties

for certain Moulinex products.

LePage, a division of Henkel Canada, has chosen KM Agency

Ltd. as its sole agent in Atlantic Canada, effective

December 1st, 2001. Previously responsible for LePage’s DIY

channel, KM will now be responsible for the professional

markets channel, as well.

Hudson’s Bay Co. has opened two more Home Outfitters stores,

bringing the total to 21. One store, opened in Edmonton, AB,

marks the second in that province. The retailer also opened

a store in Winnipeg, MB. Both locations are more than 40,000

sq.ft. and employ approximately 100 people.

Wal-Mart Stores is shifting its buying away from its Hong

Kong agent and into Shenzhen, in southern China. The company

said it wants to deal directly with suppliers and be closer

to manufacturers. But the move adds to fears that service

industry jobs will migrate across the Chinese border just as

manufacturing jobs did in the 1980s.

Sears, Roebuck and Co. has said it expects its same-store

sales during the holiday shopping season to fall 3% to 4%.

Total domestic sales for the four weeks ended November 30

were down 3.4% from a year ago to US$2.15 billion.

Lowe’s Cos. Inc. has reported third-quarter sales were up

21% to US$5.45 billion from US$4.5 billion. Same-store sales

rose 4%. Net income was US$250.5 million, up from US$202

million a year earlier. Healthy results were attributed due

to consumer focus on their homes.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	26.55
Canfor	16.95	7.65	9.25
Emco	7.50	2.60	6.25
Goodfellow	11.00	8.00	8.60
Home Depot	49.74	47.61	45.68
Hudson’s Bay	17.65	12.40	14.39
Lowe’s	64.90	34.25	42.88
Sears Canada	37.25	18.55	17.50
Sodisco Howden	2.80	0.75	1.40
Taiga Forest	10.00	6.80	9.50
West Fraser	36.50	21.00	37.00

 

______________________________________________

“Is not life a hundred times too short for us to bore

ourselves?”

– Friedrich Nietzsche (1844-1900)

______________________________________________

MARKET INDICATORS

Statistics Canada has released its Composite Index, posting

a 0.1% gain in October. The index was buttressed by housing:

both housing starts and existing home sales hit their

second-highest level of the year in October.

Wholesale trade fell 0.9% in September, says Stats Canada.

Nine of the 11 sectors reported declines. Over the past

year, wholesale trade has reported three monthly declines

equal to or in excess of 0.9%, and the trend has continued

to rise.

Consumers paid 1.9% more in October than they did in October

2000 for the goods and services in the Consumer Price Index

(CPI) basket, according to Stats Canada. It was the

smallest increase since July 1999. The index rose 2.5% over

the 12 months ending in October. Increases for this index

have ranged between 2.5% and 2.7% since May.

In September, retail sales dropped 1.7% to $23.7 billion –

the largest monthly decline since the ice storm of January

1998 disrupted retail sales in Central and Eastern Canada.

In constant dollars, retail sales tumbled 2.3% in September,

after remaining flat for four months.

U.S. consumer prices fell in October, as reported by the

U.S. Labor Department. The index declined 0.3% last month

following a 0.4% gain in September, the Labor Department

said. Excluding the more volatile food and energy prices,

the so-called core CPI rose 0.2% for the fourth straight

month.

______________________________________________

PEOPLE ON THE MOVE

Bill Wilson’s departure from the Howden Division of

Sodisco-Howden Group was mercifully short. He’s back in the

London division full-time under a renewable contract. With

the consolidation of executive teams into SHG’s Montréal

corporate offices, Wilson will work with Howden’s key buying

group and large retailer customers. (519-664-2200)

While all the buying duties have not been confirmed yet for

Sodisco-Howden’s Montréal team, we have heard that Al Lynn,

Howden’s merchandising director at Howden, has agreed to

move to Montréal as national director, merchandising,

responsible for all merchandising operations. (514-286-8986)

Tony Duffy, vice-president of sales & marketing at Tremco

Canada, has been appointed to the CHHMA board of directors.

He replaces John Hammill of Moen Inc., who resigned from the

board due to a change in job function. Duffy will serve the

balance of Mr. Hammill’s term. (416-282-0022)

Home Depot Inc. has announced that its current CEO, Bob

Nardelli, will become chairman of the company next year.

Nardelli will replace current Home Depot chairman and

co-founder Bernie Marcus on January 1, 2002. The company

added that Nardelli would give up the president’s position

when he becomes chairman. (416-609-0852)

Seljax Int’l Inc., a Canadian software company that provides

software solutions to the building materials industry, has

added sales agents in Lexington, KY to increase its hold on

the U.S. market. Fran W. Anderson, vice-president of U.S.

sales and James L. Hughes, major accounts manager, have

joined the Seljax team south of the border. (1-800-651-7955)

The Canadian Institute of Plumbing and Heating Board has

appointed GSW’s Terry Parsons as director. Parsons fills one

of the three vacancies on the board. He is president of GSW

Water Heating Cos. in Fergus. Parsons replaces Rod Pullen

from Brasscraft. (519-942-3075)

TruServ Corp. has appointed Pamela Forbes Lieberman as CEO.

Lieberman came to TruServ last March as CFO; she took on the

duties of CFO last July upon the resignation of then-CEO

Donald Hoye. Last year, the previous CFO found more than

$100 million in accounting errors that forced TruServ to

post a $131 million loss for 1999. This year, Lieberman

uncovered more problems that required it to restate results

for 1997-99. (204-452-6615)

CORRECTION: Check your spelling of Luc Lemonde (appointed

vice-president of merchandising at Sodisco-Howden Group

Montréal offices); Serge Imbeault ( now vice-president of

operations in charge of all warehouses); and Robert Harritt,

executive vice-president and CFO. We got them ALL wrong in

our last issue. Yikes! (514-286-8986)

* * * * * *

INDUSTRY NEWS. EVERY DAY –

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS

THAT MATTER TO YOU. KEEP INFORMED. VISIT hardlines.ca –

EVERY DAY!

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE

THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel

 

Wichmann, 416-598-3343; or colognet@idirect.com. To book

 

your flight and hotel, call Carol-Ann Contact Trade Show

Travel by phone: 1-877-873-7469; fax: 403-247-2448; or

 

tradeshowtravel@shaw.ca to arrange your trip. Packages

 

include return airfare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally

famous Canada Night Reception on Sunday, March 3, 2002,

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

* * * * * *

OVERHEARD …

“The idea is to carry as much in-stock as possible.”

– Sylvain Toutant, president and CEO of Réno-Dépôt, at the

recent opening of The Building Box in Mississauga, ON.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL INSTORE:

BOOST your retail profile with instore sales support

for your products and merchandising

 

Visit http://www.noralmarketing.com

 

or call 519-439-6800 ext. 201

* * * * * *

PROMOTE YOUR COMPANY BETTER

Want to communicate more effectively to your customers?

Need help announcing new products, businesses or marketing

initiatives?

McLARNEYCOM brings vendors and retailers the marketing tools

they need to boost sales:

press releases, corporate brochures, customer newsletters,

direct mail and more!

 

Contact us at 416-489-3396; buzz@hardlines.ca

 

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

 

Contact us at 416-489-3396 or email: buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@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. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

 

 

HARDLINES

Canada’s electronic information service for home improvement

industry

November 19, 2001

Volume vii, #49

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Hardware sales climb at latest BMR show

* Newest Building Box nears stays true to big box format

* Sodisco Howden reorganizes buying team into Montreal

* French home décor retailer opens first Canadian store

* New housing prices edge up in September

* * * * * *

HARDLINES TO SPEAK AT NEXT MEETING OF

THE WOMEN’S CONSUMER PRODUCTS NETWORK –

DON’T MISS THIS EVENT!!!

Beverly Allen, Marketing Manager of Hardlines, will present

an overview of the retail hardware and home improvement

industry, including the size of the market, retail trends

and emerging product categories. Find out the latest on

what’s going on behind the scenes with the key players in

retail hardware/home improvement.

WCPN Breakfast Meeting – 8:30 to 10:30 a.m., Tuesday,

December 4th, 2001. Loblaws at Heartland Town Centre, the

corner of McLaughlin Road and Britannia Road in Mississauga,

ON. Members only: $10.00

* * * * * *

DEALERS SHOP MORE HARDWARE,

LAWN AND GARDEN AT LATEST BMR SHOW

The success of the latest dealer show by Groupe BMR Inc. is

reflective of the growing move by building centre dealers

across the country to increase their hardware assortments.

The show, which played host in Québec City on November 15

and 16 to the 106-store wholesale buying group’s members,

managed to generate $10 million in sales – a significant

part of that coming from hardware vendors.

“We’re seeing more and more of a mix of hardware with

building supplies,” says Alain John Pinard, director of

marketing for Groupe BMR. “Customers today realize you need

a compliment between the two. They are looking for one-stop

shopping.”

Mark Gagliardi, of J.L. Gagliardi & Associates in Pointe

Claire, an exhibitor who reps a number of hardlines, agrees.

He found great interest for his products. While many

building materials vendors might be taking reorders,

Gagliardi and other hardlines vendors found lots of new

business from dealers who had yet to carry their types of

products.

In light of the growth of hardware, coupled with the

increase in its dealer ranks (BMR added 13 new members this

year), the group is considering plans to devote more space

in its warehouse to hardware.

Further evidence of BMR’s moves to soften its product

selection was a large exhibit in the middle of the show

floor devoted to the group’s décor program, Boutique

Inspiration. The department features décor and accessories

that range from decorative mouldings to window coverings.

Now in its third year, Boutique Inspiration is carried by

more than 40 dealers, half a dozen of them featuring the

complete program – a virtual store within a store. The

decorative niche is supported by its own semi-annual flyer.

Dealers are also getting more involved in seasonal,

particularly lawn and garden. Harnois Industries, a supplier

of garden supplies, featured a large greenhouse filled with

products.

______________________________________________

LATEST BUILDING BOX REFLECTS FOCUS ON TRADITIONAL

WAREHOUSE RETAILING – WITH FLOURISHES

The latest opening by Réno-Dépôt is one of three scheduled

for this month – and indicates the company’s renewed

commitment to the big box fray in Southern Ontario.

The newest Building Box, in Mississauga, ON, about one

half-hour west of Toronto, is a typical 130,000 sq.ft.

outlet with another 30,000 sq.ft. devoted to lawn and

garden. The store, the fourth for the chain, will be

followed on November 24 by another in London, ON. A

Réno-Dépôt location in Sherbrooke, in Québec’s Eastern

Townships, is scheduled to open on November 28.

The Mississauga opening, on November 14, featured a cameo

appearance by Sylvain Toutant, the new president and CEO of

Réno-Dépôt. A brief tour of the store with Toutant and his

Ontario merchandising manager, James Jones, revealed little

variation from the Réno-Dépôt mould, which emphasizes huge

selection with 50,000-plus SKUs. In fact, says Toutant, the

company’s faithfulness to a traditional big box format will

set it apart from other large surface retailers as they go

further afield to reinvent themselves. “We want to stay pure

to our warehouse strategy.”

Reinvention for Réno-Dépôt may mean adherence to traditional

type, but with forays into new categories, such as storage.

The retailer will also leverage its powerful family

connections. Parent company Castorama Group is committed to

continue its Ontario expansion; the opening of a store in

Windsor next Spring will mark the halfway point in its

planned $350 million investment in that province over the

next two years. Focus will be on the Greater Toronto Area,

says Toutant.

Expect two or three more stores to be announced within the

GTA in 2002. “After 18 months, we’ll have six stores here,”

he says. Another three will be announced in Québec next year

as well, including a third store in Québec City. “Last year

was tough for us, as the first stores opened late,” he says

of the three openings in November 2000 that kicked off

Building Box in Ontario. “But 2001 is on track.” He expects

Réno-Dépôt to have at least 20 big boxes by the end of 2002.

He adds that continued growth will be “organic,” with

ground-up stores, rather than acquisitions. Although it’s

not as fast, he notes, it enables the company to manage that

growth better. “Retail is all about people. It’s not about

buildings. That’s one of the reasons we’re very, very

strong.”

______________________________________________

LBMAO ANNOUNCES STAND ON

SOFTWOOD LUMBER DISPUTE

The Government and Environmental Issues Advisory Committee

of the Lumber and Building Materials Association of Ontario

has issued an official policy paper on the bizarre tariff

policies of the U.S. Commerce Department regarding softwood

lumber exports.

According to Steve Johns, LBMAO president, the dealer

association opposes any kind of countervailing or quota

system, saying “it’s discriminatory in both spirit and

intent of a free market environment. And frankly, we’re

concerned that it’s going to affect domestic retailers and

their ability to access products.”

The U.S. response to the issue fuels an already volatile

market, Johns adds. The resulting price uncertainty affects

the ability of dealers to quote jobs effectively and to cost

out their lumber purchasing.

______________________________________________

COMPANIES IN THE NEWS

Fly Furniture and Decoration, a home décor chain based in

France, has opened its first North American store in Laval,

QC. The 75,000-sq.ft. outlet will offer furniture,

accessories and decorative items with a European twist,

identical to the 150 Fly stores in France, Switzerland and

Spain.

Weyerhaeuser has announced it will close three mills,

including the White Pine sawmill and particleboard plant in

Vancouver, resulting in the layoffs of some 600 people. The

company will also close the sawmill, wood-fibre cement and

glulam beam facilities in Durango, Mexico. The associated

particleboard facility will continue operating. The move was

attributed to a weaker market due to duties arising from the

U.S. ruling on Canadian softwood exports.

Canadian Tire has opened a 90,000-sq.ft. store and gas bar

in Vaughan, ON. The store, touted as being the equivalent of

seven Olympic-sized swimming pools, will be run by associate

dealer Jack Velanoff. The company has also announced the

purchase of a four-acre site in the Garibaldi Village

development in Squamish, BC.

Bowater Inc. has announced that it will close four sawmills

in Québec due to soft lumber market conditions and tariffs

resulting from the Canada/U.S. lumber dispute. The Dégelis,

Lac-des-Aigles, Baie-Trinité and Girardville mills will

close indefinitely by November 30, and operating shifts at

the St-Felicién and Price mills will be reduced. The mills

to be closed employ 215 people and produce 160 million board

feet each year.

Williams-Sonoma Inc. has reported a 70% jump in

third-quarter earnings due to lower costs and higher sales.

The company reported sales of US$462.1 million, up 8.8% from

US$424.6 million a year ago. The addition of 42 new stores,

up from 370 a year ago, contributed significantly to these

increases. Net income for the third quarter rose to US$3.9

million from US$2.3 million.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	25.50
Canfor	16.95	7.65	9.49
Emco	7.50	2.60	5.85
Goodfellow	11.00	8.00	8.50
Home Depot	49.74	47.61	45.80
Hudson’s Bay	17.65	12.40	14.26
Lowe’s	64.90	34.25	40.35
Sears Canada	37.25	18.55	18.40
Sodisco Howden	2.80	0.75	1.19
Taiga Forest	10.00	6.80	9.10
West Fraser	36.50	21.00	35.50

______________________________________________

“Lately it occurs to me, what a long, strange trip it’s

been.”

– (line from that Grateful Dead song, “Trucking”)

______________________________________________

MARKET INDICATORS

The New Housing Price Index rose 0.2% in September from

August, says Stats Canada. On an annual basis, the index

increased 2.9%, posting rises in 14 of the 21 urban centres

surveyed. The largest advance was in Hamilton, where the

index was up 0.6% from August. Notable advances were also

seen in Sudbury-Thunder Bay (+0.4%), Calgary (+0.4%) and

Vancouver (+0.4%).

Statistics Canada has reported that the composite price

index for non-residential building construction was 125.1 in

the third quarter, up 0.2% from the second quarter and up

2.5% from the third quarter of 2000. Compared with the third

quarter of 2000, Toronto saw the strongest advance (+3.4%).

Calgary and Edmonton gained 2.9%, followed by Ottawa

(+2.8%), Vancouver (+1.2%), Montréal (+0.8%) and Halifax

(+0.5%). The index for Edmonton rose 0.4% from the second

quarter, followed by Halifax and Calgary (both at +0.3%),

Toronto (+0.2%), Ottawa and Vancouver (+0.1%). Montréal

registered no change.

The U.S. Commerce Department has reported a 7.1% zoom in

retail sales to US$306.83 billion seasonally adjusted last

month, the strongest sales surge for any month on record.

Sales had previously decreased by 2.2% in September. The

overall October retail sales increase was nearly triple the

modest 2.7% rise that Wall Street had forecast.

______________________________________________

PEOPLE ON THE MOVE

The consolidation of operations at Sodisco-Howden Group has

resulted in a reorganization of the buying team, now located

at SHG’s new Montréal head offices: Luc Lemond has been

appointed vice-president merchandising, with six category

managers and one analyst reporting to him … Mario Cloutier

is vice-president sales with four regional sales managers

under him … Serge Imbault is vice-president operations in

charge of all warehouses … Robert Harrit is executive

vice-president and CFO … Sylvain Pelletier is

vice-president, human resources. A new vice-president of

marketing has yet to be named. (514-286-8986)

Groupe BMR Inc. has made the following appointments over

recent months: Patrick Robert has joined as director of

operations. He will be in charge of logistics and warehouse

operations for the Montréal and Québec areas, along with

involvement in development and expansion programs …

Christian Nadeau has been appointed director of hardware. He

was formerly director of purchasing at Canac Marquis

Grenier, a major independent based in Beauport, QC … Alain

John Pinard has been appointed director of marketing. He

brings a strong background in retail and marketing from his

previous positions, which include most recently Ivanhoe

Shopping Centres. (450-463-2441)

* * * * * *

INDUSTRY NEWS. EVERY DAY –

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS

THAT MATTER TO YOU. KEEP INFORMED. VISIT hardlines.ca –

EVERY DAY!

* * * * * *

OVERHEARD …

“It’s not just a ‘French’ takeover. I’m really impressed

with these people.”

– Jos Wintermans, president and CEO of Sodisco-Howden Group,

explaining the new executive lineup at SHG’s head office. He

was speaking in Toronto at a recent breakfast meeting of the

Canadian Hardware and Housewares Manufacturers Association.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL INSTORE:

BOOST your retail profile with instore sales support

for your products and merchandising

 

Visit http://www.noralmarketing.com

 

or call 519-439-6800 ext. 201

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

 

Contact us at 416-489-3396 or email: buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@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. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

 

HARDLINES

Canada’s electronic information service for home improvement

industry

November 19, 2001

Volume vii, #49

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Hardware sales climb at latest BMR show

* Newest Building Box nears stays true to big box format

* Sodisco Howden reorganizes buying team into Montreal

* French home décor retailer opens first Canadian store

* New housing prices edge up in September

* * * * * *

HARDLINES TO SPEAK AT NEXT MEETING OF

THE WOMEN’S CONSUMER PRODUCTS NETWORK –

DON’T MISS THIS EVENT!!!

Beverly Allen, Marketing Manager of Hardlines, will present

an overview of the retail hardware and home improvement

industry, including the size of the market, retail trends

and emerging product categories. Find out the latest on

what’s going on behind the scenes with the key players in

retail hardware/home improvement.

WCPN Breakfast Meeting – 8:30 to 10:30 a.m., Tuesday,

December 4th, 2001. Loblaws at Heartland Town Centre, the

corner of McLaughlin Road and Britannia Road in Mississauga,

ON. Members only: $10.00

* * * * * *

DEALERS SHOP MORE HARDWARE,

LAWN AND GARDEN AT LATEST BMR SHOW

The success of the latest dealer show by Groupe BMR Inc. is

reflective of the growing move by building centre dealers

across the country to increase their hardware assortments.

The show, which played host in Québec City on November 15

and 16 to the 106-store wholesale buying group’s members,

managed to generate $10 million in sales – a significant

part of that coming from hardware vendors.

“We’re seeing more and more of a mix of hardware with

building supplies,” says Alain John Pinard, director of

marketing for Groupe BMR. “Customers today realize you need

a compliment between the two. They are looking for one-stop

shopping.”

Mark Gagliardi, of J.L. Gagliardi & Associates in Pointe

Claire, an exhibitor who reps a number of hardlines, agrees.

He found great interest for his products. While many

building materials vendors might be taking reorders,

Gagliardi and other hardlines vendors found lots of new

business from dealers who had yet to carry their types of

products.

In light of the growth of hardware, coupled with the

increase in its dealer ranks (BMR added 13 new members this

year), the group is considering plans to devote more space

in its warehouse to hardware.

Further evidence of BMR’s moves to soften its product

selection was a large exhibit in the middle of the show

floor devoted to the group’s décor program, Boutique

Inspiration. The department features décor and accessories

that range from decorative mouldings to window coverings.

Now in its third year, Boutique Inspiration is carried by

more than 40 dealers, half a dozen of them featuring the

complete program – a virtual store within a store. The

decorative niche is supported by its own semi-annual flyer.

Dealers are also getting more involved in seasonal,

particularly lawn and garden. Harnois Industries, a supplier

of garden supplies, featured a large greenhouse filled with

products.

______________________________________________

LATEST BUILDING BOX REFLECTS FOCUS ON TRADITIONAL

WAREHOUSE RETAILING – WITH FLOURISHES

The latest opening by Réno-Dépôt is one of three scheduled

for this month – and indicates the company’s renewed

commitment to the big box fray in Southern Ontario.

The newest Building Box, in Mississauga, ON, about one

half-hour west of Toronto, is a typical 130,000 sq.ft.

outlet with another 30,000 sq.ft. devoted to lawn and

garden. The store, the fourth for the chain, will be

followed on November 24 by another in London, ON. A

Réno-Dépôt location in Sherbrooke, in Québec’s Eastern

Townships, is scheduled to open on November 28.

The Mississauga opening, on November 14, featured a cameo

appearance by Sylvain Toutant, the new president and CEO of

Réno-Dépôt. A brief tour of the store with Toutant and his

Ontario merchandising manager, James Jones, revealed little

variation from the Réno-Dépôt mould, which emphasizes huge

selection with 50,000-plus SKUs. In fact, says Toutant, the

company’s faithfulness to a traditional big box format will

set it apart from other large surface retailers as they go

further afield to reinvent themselves. “We want to stay pure

to our warehouse strategy.”

Reinvention for Réno-Dépôt may mean adherence to traditional

type, but with forays into new categories, such as storage.

The retailer will also leverage its powerful family

connections. Parent company Castorama Group is committed to

continue its Ontario expansion; the opening of a store in

Windsor next Spring will mark the halfway point in its

planned $350 million investment in that province over the

next two years. Focus will be on the Greater Toronto Area,

says Toutant.

Expect two or three more stores to be announced within the

GTA in 2002. “After 18 months, we’ll have six stores here,”

he says. Another three will be announced in Québec next year

as well, including a third store in Québec City. “Last year

was tough for us, as the first stores opened late,” he says

of the three openings in November 2000 that kicked off

Building Box in Ontario. “But 2001 is on track.” He expects

Réno-Dépôt to have at least 20 big boxes by the end of 2002.

He adds that continued growth will be “organic,” with

ground-up stores, rather than acquisitions. Although it’s

not as fast, he notes, it enables the company to manage that

growth better. “Retail is all about people. It’s not about

buildings. That’s one of the reasons we’re very, very

strong.”

______________________________________________

LBMAO ANNOUNCES STAND ON

SOFTWOOD LUMBER DISPUTE

The Government and Environmental Issues Advisory Committee

of the Lumber and Building Materials Association of Ontario

has issued an official policy paper on the bizarre tariff

policies of the U.S. Commerce Department regarding softwood

lumber exports.

According to Steve Johns, LBMAO president, the dealer

association opposes any kind of countervailing or quota

system, saying “it’s discriminatory in both spirit and

intent of a free market environment. And frankly, we’re

concerned that it’s going to affect domestic retailers and

their ability to access products.”

The U.S. response to the issue fuels an already volatile

market, Johns adds. The resulting price uncertainty affects

the ability of dealers to quote jobs effectively and to cost

out their lumber purchasing.

______________________________________________

COMPANIES IN THE NEWS

Fly Furniture and Decoration, a home décor chain based in

France, has opened its first North American store in Laval,

QC. The 75,000-sq.ft. outlet will offer furniture,

accessories and decorative items with a European twist,

identical to the 150 Fly stores in France, Switzerland and

Spain.

Weyerhaeuser has announced it will close three mills,

including the White Pine sawmill and particleboard plant in

Vancouver, resulting in the layoffs of some 600 people. The

company will also close the sawmill, wood-fibre cement and

glulam beam facilities in Durango, Mexico. The associated

particleboard facility will continue operating. The move was

attributed to a weaker market due to duties arising from the

U.S. ruling on Canadian softwood exports.

Canadian Tire has opened a 90,000-sq.ft. store and gas bar

in Vaughan, ON. The store, touted as being the equivalent of

seven Olympic-sized swimming pools, will be run by associate

dealer Jack Velanoff. The company has also announced the

purchase of a four-acre site in the Garibaldi Village

development in Squamish, BC.

Bowater Inc. has announced that it will close four sawmills

in Québec due to soft lumber market conditions and tariffs

resulting from the Canada/U.S. lumber dispute. The Dégelis,

Lac-des-Aigles, Baie-Trinité and Girardville mills will

close indefinitely by November 30, and operating shifts at

the St-Felicién and Price mills will be reduced. The mills

to be closed employ 215 people and produce 160 million board

feet each year.

Williams-Sonoma Inc. has reported a 70% jump in

third-quarter earnings due to lower costs and higher sales.

The company reported sales of US$462.1 million, up 8.8% from

US$424.6 million a year ago. The addition of 42 new stores,

up from 370 a year ago, contributed significantly to these

increases. Net income for the third quarter rose to US$3.9

million from US$2.3 million.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	25.50
Canfor	16.95	7.65	9.49
Emco	7.50	2.60	5.85
Goodfellow	11.00	8.00	8.50
Home Depot	49.74	47.61	45.80
Hudson’s Bay	17.65	12.40	14.26
Lowe’s	64.90	34.25	40.35
Sears Canada	37.25	18.55	18.40
Sodisco Howden	2.80	0.75	1.19
Taiga Forest	10.00	6.80	9.10
West Fraser	36.50	21.00	35.50

______________________________________________

“Lately it occurs to me, what a long, strange trip it’s

been.”

– (line from that Grateful Dead song, “Trucking”)

______________________________________________

MARKET INDICATORS

The New Housing Price Index rose 0.2% in September from

August, says Stats Canada. On an annual basis, the index

increased 2.9%, posting rises in 14 of the 21 urban centres

surveyed. The largest advance was in Hamilton, where the

index was up 0.6% from August. Notable advances were also

seen in Sudbury-Thunder Bay (+0.4%), Calgary (+0.4%) and

Vancouver (+0.4%).

Statistics Canada has reported that the composite price

index for non-residential building construction was 125.1 in

the third quarter, up 0.2% from the second quarter and up

2.5% from the third quarter of 2000. Compared with the third

quarter of 2000, Toronto saw the strongest advance (+3.4%).

Calgary and Edmonton gained 2.9%, followed by Ottawa

(+2.8%), Vancouver (+1.2%), Montréal (+0.8%) and Halifax

(+0.5%). The index for Edmonton rose 0.4% from the second

quarter, followed by Halifax and Calgary (both at +0.3%),

Toronto (+0.2%), Ottawa and Vancouver (+0.1%). Montréal

registered no change.

The U.S. Commerce Department has reported a 7.1% zoom in

retail sales to US$306.83 billion seasonally adjusted last

month, the strongest sales surge for any month on record.

Sales had previously decreased by 2.2% in September. The

overall October retail sales increase was nearly triple the

modest 2.7% rise that Wall Street had forecast.

______________________________________________

PEOPLE ON THE MOVE

The consolidation of operations at Sodisco-Howden Group has

resulted in a reorganization of the buying team, now located

at SHG’s new Montréal head offices: Luc Lemond has been

appointed vice-president merchandising, with six category

managers and one analyst reporting to him … Mario Cloutier

is vice-president sales with four regional sales managers

under him … Serge Imbault is vice-president operations in

charge of all warehouses … Robert Harrit is executive

vice-president and CFO … Sylvain Pelletier is

vice-president, human resources. A new vice-president of

marketing has yet to be named. (514-286-8986)

Groupe BMR Inc. has made the following appointments over

recent months: Patrick Robert has joined as director of

operations. He will be in charge of logistics and warehouse

operations for the Montréal and Québec areas, along with

involvement in development and expansion programs …

Christian Nadeau has been appointed director of hardware. He

was formerly director of purchasing at Canac Marquis

Grenier, a major independent based in Beauport, QC … Alain

John Pinard has been appointed director of marketing. He

brings a strong background in retail and marketing from his

previous positions, which include most recently Ivanhoe

Shopping Centres. (450-463-2441)

* * * * * *

INDUSTRY NEWS. EVERY DAY –

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS

THAT MATTER TO YOU. KEEP INFORMED. VISIT hardlines.ca –

EVERY DAY!

* * * * * *

OVERHEARD …

“It’s not just a ‘French’ takeover. I’m really impressed

with these people.”

– Jos Wintermans, president and CEO of Sodisco-Howden Group,

explaining the new executive lineup at SHG’s head office. He

was speaking in Toronto at a recent breakfast meeting of the

Canadian Hardware and Housewares Manufacturers Association.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL INSTORE:

BOOST your retail profile with instore sales support

for your products and merchandising

 

Visit http://www.noralmarketing.com

 

or call 519-439-6800 ext. 201

* * * * * *

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A classified ad with Hardlines is the most direct way to

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Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

 

Contact us at 416-489-3396 or email: buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

 

______________________________________________

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Reproduction in whole or in part is very uncool and strictly

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play fair! Call for information on multiple subscriptions or

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your internal routing from this end!

______________________________________________

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HARDLINES

Canada’s electronic information service for home improvement

industry

November 12, 2001

Volume vii, #47

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

 

IN THIS ISSUE:

* Ace to close western distribution

* Housing starts jump in October

* Canfor plays hardball with U.S. softwood ruling

* CRHA links members to consumers with new website

* Homeless find a habitat on Toronto Home Depot site

 

* * * * * *

HARDLINES TO SPEAK AT NEXT MEETING OF

THE WOMEN’S CONSUMER PRODUCTS NETWORK –

DON’T MISS THIS EVENT!!!

 

Beverly Allen, Marketing Manager of Hardlines, will present

an overview of the retail hardware and home improvement

industry, including the size of the market, retail trends

and emerging product categories. Find out the latest on

what’s going on behind the scenes with the key players in

retail hardware/home improvement.

 

WCPN Breakfast Meeting – 8:30 to 10:30 a.m., Tuesday,

December 4th, 2001. Loblaws at Heartland Town Centre at the

corner of McLaughlin Road and Britannia Road in Mississauga,

ON. Members only: $10.00

* * * * * *

NEW: POWERPOINT PRESENTATION

ON THE CANADIAN MARKET

 

A point-by-point illustration of the Canadian market and the

growth of its key players.

 

Dazzle your bosses and impress your friends with this one!

($179 + taxes for subscribers, $449 + taxes for

non-subscribers.)

 

Call Nancy Wright at 416.489.3396, email her at:

 

nancy@hardlines.ca, or go online:

 

https://hardlines.ca/html/order.html to order any of the

 

above publications.

* * * * * *

 

ACE WILL CLOSE CALGARY DISTRIBUTION CENTRE

 

Ace Hardware Canada will merge its distribution facilities

by closing its retail support centre in Calgary. All

products for the Canadian market will be shipped out of

Ace’s Brantford, ON distribution centre. The last shipment

will leave Calgary around the end of this year.

 

The facility, which employs 22, has been used for shipments

to Ace’s Western dealers, including Yukon and the North West

Territories. But despite the closure it will be business as

usual, says Ace, with all orders being processed through its

450,000-sq.ft. Brantford facility.

 

“We’re not going to add any more costs to our western

dealers,” says Paul Ingevaldson, vice-president

international for Ace. “Our landed costs won’t increase.”

 

The move coincides with renewed attention on Canada from the

U.S. parent. Says Ingevaldson: “I’ll be spending more time

here over the next little while.” Growing interest from the

Canadian market is driving the decision. “We have so much

going on and we’re getting a lot of enquiries.” Canadian

operations are overseen by Rob Collins, managing director of

Ace Canada.

 

The existence of the Calgary distribution centre dates back

to 1995. That’s when Ace inherited the 240,000-sq.ft.

facility from Beaver Lumber to take over hardware

distribution for Beaver. Ingevaldson admits the centre never

really carried its weight. “We had trouble getting the

business to justify the site.” The loss of the Beaver

business with the sale of that chain to Home Hardware

reinforced the decision.

 

However, the closing does not reflect any withdrawal from

the West. In fact, this weekend Ace’s first two stores in

Calgary will open. Growth will continue, says Ingevaldson,

store by store and through group deals. He expects the

volume of Beaver business to be effectively replaced within

one to two years.

 

Ace, with 5,100 stores worldwide, has 14 distribution

centres in the U.S.

______________________________________________

HOUSING STARTS DEFY EXPECTATIONS

WITH OCTOBER INCREASE

 

Residential construction jumped 12.7% in October, despite

indications of economic slowdown in other sectors. According

to the latest numbers from CMHC, housing starts during the

month rose 12.7% to 173,500 units seasonally adjusted, from

154,000 in September. Urban singles rose 7.2% to 84,800

units, the highest annual rate for single starts since March

2000. Multiple starts also increased, bouncing bounced back

20.6% to an annual rate of 67,200 units, compared with

55,700 a month earlier.

 

In its just-released fourth-quarter housing report, CMHC

forecasts that Canadian housing starts will reach 160,100

units this year and 155,800 in 2002.

 

“Despite the North American economic slowdown, the Canadian

housing market is expected to achieve levels of starts only

slightly below 2001 levels,” the agency said.

 

Many economists anticipated much lower starts, somewhere

around 154,000 starts for the month. However, continual

drops in mortgage interest rates, high immigration and low

inventories of existing housing have fuelled the growth. In

addition, homeowners are putting renewed focus on cocooning,

say many in the home improvement industry. As people remain

wary of travelling following September 11’s terrorist

attacks, more emphasis is being put on staying put – and

either fixing up or moving up.

______________________________________________

CANFOR POISED FOR LAWSUIT IN

SOFTWOOD LUMBER BATTLE

 

Canfor Corp. has announced that it is filing a Notice of

Intent to Submit a Claim of Arbitration against the U.S.

government for damages under the North American Free Trade

Agreement. The possible suit is based on the allegation that

the U.S. has violated several provisions in the “Investment

Chapter” of NAFTA.

 

The Notice seeks damages of not less than US$250 million.

Canfor believes that U.S. preliminary determinations –

ruling that a countervailing duty of 19.3% and antidumping

duty of 12.98% be applied on Canfor’s softwood lumber

exports south of the border – were made in an arbitrary,

discriminatory and capricious manner.

 

Spearheading the campaign is Canfor’s president and CEO

David Emerson, a 56-year-old economist who is trying to

maintain the shareholder value of Canada’s largest lumber

producer and exporter. His company also has contractual

obligations to supply lumber to U.S. home improvement

retailers such as Home Depot and Lowe’s.

 

In late October, Canfor reported third quarter results that

included a net income of $19.6 million. The quarter was

adversely impacted by a $11.5 million after tax accrual for

the potential liability relating to countervailing duties.

Levies imposed thus far in the lumber squabble between

Canada and the U.S. have already resulted in 16,000 job

losses in B.C. mill towns at large. The toll, say analysts,

could rise above 30,000.

______________________________________________

CRHA website creates dealer-to-consumer link

 

The Canadian Retail Hardware Association has developed a

website that allows consumers to locate information relating

to the hardware/home improvement industry via its member

retailers.

 

 

http://www.toolnet.ca/ offers a nationwide listing of

 

hardware and building supply retailers. Information is

accessible through store, product and services searches that

will direct the consumer to any of CRHA’s 1,800 members.

Dealers have jumped aboard by filling out an information

template that includes product and service listings, contact

info, and store hours.

 

Other informational tools include an interactive message

board that allows consumers to swap hardware/home

improvement tips from the dealers themselves. A DIY project

library will be created from the site’s own consumer-focused

stories.

 

The site is being promoted through the dealers themselves,

who are being relied upon to get the message out to their

own customers.

_____________________________________________

COMPANIES IN THE NEWS

Toronto City council has approved the erection of prefab

houses for 32 homeless people on contaminated land owned by

Home Depot Canada. The land, part of Toronto’s derelict

lakefront lands, was sold to Home Depot with the

understanding that environmental cleanup would be long and

costly. But it’s also the site of a tent city that shelters

scores of “street people.” The $1.1-million housing project,

which would be financed primarily by a $1-million federal

grant, would be built and run by Homes First, a non-profit

agency.

 

Hudson’s Bay Co. has opened its first Home Outfitters store

in Québec. Called Déco Découverte, the kitchen, bed and bath

superstore is in Mascouche and brings this chain’s total

store count to 19.

 

In October, Sears Canada saw total revenues increase 4.9% to

$571.8 million, from $545.5 million in the same period last

year. Merchandise sales increased 5.0% while same-store

sales increased 0.2%. The company announced that its outlook

remains guarded in spite of its strong positioning for the

upcoming holiday season and for Spring 2002.

 

Do it Best Corp. has signed a membership agreement with The

Handyman, a 31-store retail hardware retailer in the

Philippines. The family owned chain has sales of more than

US$31 million. Do it Best will co-brand all of The

Handyman’s stores over the next several months.

 

House2Home Inc., formerly the HomeBase home improvement

chain, has filed under Chapter 11 bankruptcy protection for

all of its 42 stores. BJ’s Wholesale Club Inc., a House2Home

spin-off store owned by parent-company TJX, has agreed to

share responsibility for 41 of the pending House2Home

leases. The closure process is expected to take about 13

weeks. House2Home has about 4,700 employees.

 

Premdor Inc. announced results for the third quarter ended

September 30, 2001. The company reported a sales increase of

14% to US$363 million. Internal growth, including the

Masonite acquisition, completed August 31, accounts for

approximately 80% of the increase. Year-to-date, Premdor has

reported sales of US$1.045 billion, a 7% increase over 2000.

 

For the year ended September 30, Nu-Gro Corp. had total

sales of $166,549, up from $142,710 in 2000. For the fourth

quarter, Nu-Grow reported sales of $31,613, fuelled by the

acquisition of the Vigoro business effective November 1,

2000.

 

Wal-Mart Stores Inc. announced its net sales in the four

weeks ended November 2 rose 14.6% to US$16.62 billion, from

US$14.50 billion a year earlier. Same-store sales in October

increased 6.7% from a year earlier. Same-store sales at

Wal-Mart stores rose 6.3% last month, while at Sam’s Club

sales were up 8%. Last week, the company denied reports that

it was cutting 1,350 jobs from its German unit, Wal-Mart

GmgH, where it has 94 stores.

 

Sears, Roebuck and Co. has announced that sales at its

domestic stores fell 4.4% in October, as the weak economy

continued to weigh on results. The company said domestic

store revenues for the month totalled US$2.15 billion, a

3.4% decrease from a year earlier. The retailer reported

that full-line stores had strong same-store sales, with

increases in appliances, lawn and garden and fitness

equipment. Decreases across most softlines categories

affected the results negatively.

 

_____________________________________________

CANADIAN STOCK WATCH

 

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	15.05
Canfor	16.95	7.65	7.65
Emco	7.50	2.60	2.60
Goodfellow	11.00	8.00	8.00
Home Depot	49.74	47.61	30.30
Hudson’s Bay	17.65	12.40	12.40
Lowe’s	64.90	34.25	18.18
Sears Canada	37.25	18.55	12.50
Sodisco Howden	2.80	0.75	0.75
Taiga Forest	10.00	6.80	6.80
West Fraser	36.50	21.00	21.00

 

 

______________________________________________

“Never let a fool kiss you or a kiss fool you.”

– Joey Adams

______________________________________________

MARKET INDICATORS

The value of building permits issued by municipalities

declined for a second consecutive month in September,

according to Stats Canada. Builders took out $3.2 billion

worth of permits, down 1.2% from August. Construction

intentions in the commercial sector hit their lowest point

in four years with a 3% fall to $1.4 billion in September,

after dropping 12.2% in August. The value of housing permits

rose a marginal 0.2% to $1.8 billion; only multi-family

dwellings contributed to this gain.

U.S. consumer sentiment has risen unexpectedly during the

first week of November, market sources said. The University

of Michigan’s preliminary November consumer sentiment index

rose to 83.5 from 82.7 in October. That stood in sharp

contrast to analysts’ forecasts of a drop.

* * * * * *

INDUSTRY NEWS. EVERY DAY –

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS

THAT MATTER TO YOU. KEEP INFORMED.

VISIT hardlines.ca – EVERY DAY!

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE

THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel

 

Wichmann, 416-598-3343; or colognet@idirect.com. To book

 

your flight and hotel, call Carol-Ann Contact Trade Show

Travel by phone: 1-877-873-7469; fax: 403-247-2448; or

 

tradeshowtravel@shaw.ca to arrange your trip. Packages

 

include return airfare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally

famous Canada Night Reception on Sunday, March 3, 2002,

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

* * * * * *

PEOPLE ON THE MOVE

Peter Simmons has been appointed manager of procurement with

Shoppers Drug Mart. He is in charge of store planning,

supplies and services for the corporate and retail sides of

the business. Simmons was formerly a senior merchant at Ace

Hardware Canada, and at Beaver Lumber before that.

Canada Wood Specialties Inc. has appointed Blake Kent to its

sales force. He will be responsible for the Eastern Ontario

region, previously represented by Don Sansone, who has left

the company. (705-326-1301)

Pierre Racette, formerly vice-president marketing and sales

and the building materials division of Sodisco-Howden Group,

did not end up in the U.S. as we originally heard. He has

remained in Canada. (514-995-9869)

______________________________________________

NOTED …

A Calgary judge has ruled in the nine-year-old case

involving a love-triangle and a failed real estate venture

between Canadian Tire heiress Martha Billes and ex-lover

Paul McAteer. The judge came down hard on McAteer, a lawyer

and real-estate developer who had managed to become Billes’s

lover and investor in his schemes. The judge ordered McAteer

to pay back a $1.95-million loan guarantee to a company

owned 49% by Billes, with whom he had a 21-month love affair

in the early ’90s. McAteer was also ordered to pay $440,000

plus interest and legal expenses to his ex-wife. Billes owns

61% of Canadian Tire’s voting shares and is worth about $101

million.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of

product lines.

Why not make yours one of them?

www.noralmarketing.com or call 519-439-6800 ext. 201

* * * * * *

PROMOTE YOUR COMPANY BETTER

Want to communicate more effectively to your customers?

Need help announcing new products, businesses or marketing

initiatives?

McLARNEYCOM brings vendors and retailers the marketing tools

they need to boost sales:

press releases, corporate brochures, customer newsletters,

direct mail and more!

 

Contact us at 416-489-3396; buzz@hardlines.ca

 

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

 

Contact us at 416-489-3396 or email: buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@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. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

 

HARDLINES

Canada’s electronic information service for home improvement

industry

November 12, 2001

Volume vii, #47

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

 

IN THIS ISSUE:

* Ace to close western distribution

* Housing starts jump in October

* Canfor plays hardball with U.S. softwood ruling

* CRHA links members to consumers with new website

* Homeless find a habitat on Toronto Home Depot site

 

* * * * * *

HARDLINES TO SPEAK AT NEXT MEETING OF

THE WOMEN’S CONSUMER PRODUCTS NETWORK –

DON’T MISS THIS EVENT!!!

 

Beverly Allen, Marketing Manager of Hardlines, will present

an overview of the retail hardware and home improvement

industry, including the size of the market, retail trends

and emerging product categories. Find out the latest on

what’s going on behind the scenes with the key players in

retail hardware/home improvement.

 

WCPN Breakfast Meeting – 8:30 to 10:30 a.m., Tuesday,

December 4th, 2001. Loblaws at Heartland Town Centre at the

corner of McLaughlin Road and Britannia Road in Mississauga,

ON. Members only: $10.00

* * * * * *

NEW: POWERPOINT PRESENTATION

ON THE CANADIAN MARKET

 

A point-by-point illustration of the Canadian market and the

growth of its key players.

 

Dazzle your bosses and impress your friends with this one!

($179 + taxes for subscribers, $449 + taxes for

non-subscribers.)

 

Call Nancy Wright at 416.489.3396, email her at:

 

nancy@hardlines.ca, or go online:

 

https://hardlines.ca/html/order.html to order any of the

 

above publications.

* * * * * *

 

ACE WILL CLOSE CALGARY DISTRIBUTION CENTRE

 

Ace Hardware Canada will merge its distribution facilities

by closing its retail support centre in Calgary. All

products for the Canadian market will be shipped out of

Ace’s Brantford, ON distribution centre. The last shipment

will leave Calgary around the end of this year.

 

The facility, which employs 22, has been used for shipments

to Ace’s Western dealers, including Yukon and the North West

Territories. But despite the closure it will be business as

usual, says Ace, with all orders being processed through its

450,000-sq.ft. Brantford facility.

 

“We’re not going to add any more costs to our western

dealers,” says Paul Ingevaldson, vice-president

international for Ace. “Our landed costs won’t increase.”

 

The move coincides with renewed attention on Canada from the

U.S. parent. Says Ingevaldson: “I’ll be spending more time

here over the next little while.” Growing interest from the

Canadian market is driving the decision. “We have so much

going on and we’re getting a lot of enquiries.” Canadian

operations are overseen by Rob Collins, managing director of

Ace Canada.

 

The existence of the Calgary distribution centre dates back

to 1995. That’s when Ace inherited the 240,000-sq.ft.

facility from Beaver Lumber to take over hardware

distribution for Beaver. Ingevaldson admits the centre never

really carried its weight. “We had trouble getting the

business to justify the site.” The loss of the Beaver

business with the sale of that chain to Home Hardware

reinforced the decision.

 

However, the closing does not reflect any withdrawal from

the West. In fact, this weekend Ace’s first two stores in

Calgary will open. Growth will continue, says Ingevaldson,

store by store and through group deals. He expects the

volume of Beaver business to be effectively replaced within

one to two years.

 

Ace, with 5,100 stores worldwide, has 14 distribution

centres in the U.S.

______________________________________________

HOUSING STARTS DEFY EXPECTATIONS

WITH OCTOBER INCREASE

 

Residential construction jumped 12.7% in October, despite

indications of economic slowdown in other sectors. According

to the latest numbers from CMHC, housing starts during the

month rose 12.7% to 173,500 units seasonally adjusted, from

154,000 in September. Urban singles rose 7.2% to 84,800

units, the highest annual rate for single starts since March

2000. Multiple starts also increased, bouncing bounced back

20.6% to an annual rate of 67,200 units, compared with

55,700 a month earlier.

 

In its just-released fourth-quarter housing report, CMHC

forecasts that Canadian housing starts will reach 160,100

units this year and 155,800 in 2002.

 

“Despite the North American economic slowdown, the Canadian

housing market is expected to achieve levels of starts only

slightly below 2001 levels,” the agency said.

 

Many economists anticipated much lower starts, somewhere

around 154,000 starts for the month. However, continual

drops in mortgage interest rates, high immigration and low

inventories of existing housing have fuelled the growth. In

addition, homeowners are putting renewed focus on cocooning,

say many in the home improvement industry. As people remain

wary of travelling following September 11’s terrorist

attacks, more emphasis is being put on staying put – and

either fixing up or moving up.

______________________________________________

CANFOR POISED FOR LAWSUIT IN

SOFTWOOD LUMBER BATTLE

 

Canfor Corp. has announced that it is filing a Notice of

Intent to Submit a Claim of Arbitration against the U.S.

government for damages under the North American Free Trade

Agreement. The possible suit is based on the allegation that

the U.S. has violated several provisions in the “Investment

Chapter” of NAFTA.

 

The Notice seeks damages of not less than US$250 million.

Canfor believes that U.S. preliminary determinations –

ruling that a countervailing duty of 19.3% and antidumping

duty of 12.98% be applied on Canfor’s softwood lumber

exports south of the border – were made in an arbitrary,

discriminatory and capricious manner.

 

Spearheading the campaign is Canfor’s president and CEO

David Emerson, a 56-year-old economist who is trying to

maintain the shareholder value of Canada’s largest lumber

producer and exporter. His company also has contractual

obligations to supply lumber to U.S. home improvement

retailers such as Home Depot and Lowe’s.

 

In late October, Canfor reported third quarter results that

included a net income of $19.6 million. The quarter was

adversely impacted by a $11.5 million after tax accrual for

the potential liability relating to countervailing duties.

Levies imposed thus far in the lumber squabble between

Canada and the U.S. have already resulted in 16,000 job

losses in B.C. mill towns at large. The toll, say analysts,

could rise above 30,000.

______________________________________________

CRHA website creates dealer-to-consumer link

 

The Canadian Retail Hardware Association has developed a

website that allows consumers to locate information relating

to the hardware/home improvement industry via its member

retailers.

 

 

http://www.toolnet.ca/ offers a nationwide listing of

 

hardware and building supply retailers. Information is

accessible through store, product and services searches that

will direct the consumer to any of CRHA’s 1,800 members.

Dealers have jumped aboard by filling out an information

template that includes product and service listings, contact

info, and store hours.

 

Other informational tools include an interactive message

board that allows consumers to swap hardware/home

improvement tips from the dealers themselves. A DIY project

library will be created from the site’s own consumer-focused

stories.

 

The site is being promoted through the dealers themselves,

who are being relied upon to get the message out to their

own customers.

_____________________________________________

COMPANIES IN THE NEWS

Toronto City council has approved the erection of prefab

houses for 32 homeless people on contaminated land owned by

Home Depot Canada. The land, part of Toronto’s derelict

lakefront lands, was sold to Home Depot with the

understanding that environmental cleanup would be long and

costly. But it’s also the site of a tent city that shelters

scores of “street people.” The $1.1-million housing project,

which would be financed primarily by a $1-million federal

grant, would be built and run by Homes First, a non-profit

agency.

 

Hudson’s Bay Co. has opened its first Home Outfitters store

in Québec. Called Déco Découverte, the kitchen, bed and bath

superstore is in Mascouche and brings this chain’s total

store count to 19.

 

In October, Sears Canada saw total revenues increase 4.9% to

$571.8 million, from $545.5 million in the same period last

year. Merchandise sales increased 5.0% while same-store

sales increased 0.2%. The company announced that its outlook

remains guarded in spite of its strong positioning for the

upcoming holiday season and for Spring 2002.

 

Do it Best Corp. has signed a membership agreement with The

Handyman, a 31-store retail hardware retailer in the

Philippines. The family owned chain has sales of more than

US$31 million. Do it Best will co-brand all of The

Handyman’s stores over the next several months.

 

House2Home Inc., formerly the HomeBase home improvement

chain, has filed under Chapter 11 bankruptcy protection for

all of its 42 stores. BJ’s Wholesale Club Inc., a House2Home

spin-off store owned by parent-company TJX, has agreed to

share responsibility for 41 of the pending House2Home

leases. The closure process is expected to take about 13

weeks. House2Home has about 4,700 employees.

 

Premdor Inc. announced results for the third quarter ended

September 30, 2001. The company reported a sales increase of

14% to US$363 million. Internal growth, including the

Masonite acquisition, completed August 31, accounts for

approximately 80% of the increase. Year-to-date, Premdor has

reported sales of US$1.045 billion, a 7% increase over 2000.

 

For the year ended September 30, Nu-Gro Corp. had total

sales of $166,549, up from $142,710 in 2000. For the fourth

quarter, Nu-Grow reported sales of $31,613, fuelled by the

acquisition of the Vigoro business effective November 1,

2000.

 

Wal-Mart Stores Inc. announced its net sales in the four

weeks ended November 2 rose 14.6% to US$16.62 billion, from

US$14.50 billion a year earlier. Same-store sales in October

increased 6.7% from a year earlier. Same-store sales at

Wal-Mart stores rose 6.3% last month, while at Sam’s Club

sales were up 8%. Last week, the company denied reports that

it was cutting 1,350 jobs from its German unit, Wal-Mart

GmgH, where it has 94 stores.

 

Sears, Roebuck and Co. has announced that sales at its

domestic stores fell 4.4% in October, as the weak economy

continued to weigh on results. The company said domestic

store revenues for the month totalled US$2.15 billion, a

3.4% decrease from a year earlier. The retailer reported

that full-line stores had strong same-store sales, with

increases in appliances, lawn and garden and fitness

equipment. Decreases across most softlines categories

affected the results negatively.

 

_____________________________________________

CANADIAN STOCK WATCH

 

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	15.05
Canfor	16.95	7.65	7.65
Emco	7.50	2.60	2.60
Goodfellow	11.00	8.00	8.00
Home Depot	49.74	47.61	30.30
Hudson’s Bay	17.65	12.40	12.40
Lowe’s	64.90	34.25	18.18
Sears Canada	37.25	18.55	12.50
Sodisco Howden	2.80	0.75	0.75
Taiga Forest	10.00	6.80	6.80
West Fraser	36.50	21.00	21.00

 

 

______________________________________________

“Never let a fool kiss you or a kiss fool you.”

– Joey Adams

______________________________________________

MARKET INDICATORS

The value of building permits issued by municipalities

declined for a second consecutive month in September,

according to Stats Canada. Builders took out $3.2 billion

worth of permits, down 1.2% from August. Construction

intentions in the commercial sector hit their lowest point

in four years with a 3% fall to $1.4 billion in September,

after dropping 12.2% in August. The value of housing permits

rose a marginal 0.2% to $1.8 billion; only multi-family

dwellings contributed to this gain.

U.S. consumer sentiment has risen unexpectedly during the

first week of November, market sources said. The University

of Michigan’s preliminary November consumer sentiment index

rose to 83.5 from 82.7 in October. That stood in sharp

contrast to analysts’ forecasts of a drop.

* * * * * *

INDUSTRY NEWS. EVERY DAY –

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS

THAT MATTER TO YOU. KEEP INFORMED.

VISIT hardlines.ca – EVERY DAY!

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE

THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel

 

Wichmann, 416-598-3343; or colognet@idirect.com. To book

 

your flight and hotel, call Carol-Ann Contact Trade Show

Travel by phone: 1-877-873-7469; fax: 403-247-2448; or

 

tradeshowtravel@shaw.ca to arrange your trip. Packages

 

include return airfare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally

famous Canada Night Reception on Sunday, March 3, 2002,

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

* * * * * *

PEOPLE ON THE MOVE

Peter Simmons has been appointed manager of procurement with

Shoppers Drug Mart. He is in charge of store planning,

supplies and services for the corporate and retail sides of

the business. Simmons was formerly a senior merchant at Ace

Hardware Canada, and at Beaver Lumber before that.

Canada Wood Specialties Inc. has appointed Blake Kent to its

sales force. He will be responsible for the Eastern Ontario

region, previously represented by Don Sansone, who has left

the company. (705-326-1301)

Pierre Racette, formerly vice-president marketing and sales

and the building materials division of Sodisco-Howden Group,

did not end up in the U.S. as we originally heard. He has

remained in Canada. (514-995-9869)

______________________________________________

NOTED …

A Calgary judge has ruled in the nine-year-old case

involving a love-triangle and a failed real estate venture

between Canadian Tire heiress Martha Billes and ex-lover

Paul McAteer. The judge came down hard on McAteer, a lawyer

and real-estate developer who had managed to become Billes’s

lover and investor in his schemes. The judge ordered McAteer

to pay back a $1.95-million loan guarantee to a company

owned 49% by Billes, with whom he had a 21-month love affair

in the early ’90s. McAteer was also ordered to pay $440,000

plus interest and legal expenses to his ex-wife. Billes owns

61% of Canadian Tire’s voting shares and is worth about $101

million.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of

product lines.

Why not make yours one of them?

www.noralmarketing.com or call 519-439-6800 ext. 201

* * * * * *

PROMOTE YOUR COMPANY BETTER

Want to communicate more effectively to your customers?

Need help announcing new products, businesses or marketing

initiatives?

McLARNEYCOM brings vendors and retailers the marketing tools

they need to boost sales:

press releases, corporate brochures, customer newsletters,

direct mail and more!

 

Contact us at 416-489-3396; buzz@hardlines.ca

 

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

 

Contact us at 416-489-3396 or email: buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@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. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

 

 

HARDLINES

Canada’s electronic information service for home improvement

industry

November 5, 2001

Volume vii, #46

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Réno-Dépôt names new CEO

* BMR enjoys growth thanks to new members

* Retail guru challenges retailers to take long-term view

* Retail sales up for Canadian Tire dealers in 3Q

* GDP stays flat in August

* * * * * *

I know some people object to the promotional stuff, but I

wouldn’t include it if a lot of people weren’t finding these

information products really helpful. So please, check ’em

out!! – Michael

 

There’s no better place to get information on the Canadian

hardware/home improvement industry than the Hardlines

Information Service.

Save hundreds of hours of research (and cut down on

frustration) with:

** Hardlines Quarterly Report **

An executive summary and in-depth analysis of the issues and

news driving hardware and home improvement retailing – plus

proprietary research you can’t get anywhere else. ($349 +

taxes)

** Hardlines Industry Report: Home Improvement Retailing in

Canada **

The Big Kahuna: comprehensive overview of the Canadian

market: size, key players, growth of big boxes, trends in

housing, renovation and market. ($750 for subscribers to the

weekly newsletter, way more for everyone else.)

** Hardlines 2001-2002 Who’s Who **

An invaluable aid for targeting your prospects in the

industry. It includes sales figures, product mix, executive

personnel and key buyers for more than 100 hardware and home

improvement retailers, wholesalers, buying groups, mass

merchants and co-ops. ($135 + taxes for subscribers, $175 +

taxes for non-subscribers.)

** NEW: PowerPoint Presentation on the Canadian Market **

(from our first annual Retail Strategies Symposium)

A point-by-point illustration of how the Canadian market

works and where it’s heading. Dazzle your bosses with this

one! ($179 + taxes for subscribers, $449 + taxes for

non-subscribers.)

 

Call Nancy Wright at 416.489.3396, email her at:

 

nancy@hardlines.ca, or go online:

 

https://hardlines.ca/html/order.html to order any of the

 

above publications.

______________________________________________

TOUTANT NAMED CEO OF RÉNO-DÉPÔT,

ARCHAMBAULT BECOMES CO-CHAIR

Sylvain Toutant, 38, has been named the new head of Canada’s

sixth-largest retail home improvement organization.

 

Toutant’s promotion to president and CEO of Réno-Dépôt Inc.

is just the latest step in his rise. In January 2001, he had

added merchandising to his duties as vice-president

marketing at Réno-Dépôt, when Richard Martoccia exited the

merchandising role to work more closely with Réno-Dépôt’s

parent, Castorama in France, as Réno-Dépôt’s vp synergy.

 

Toutant’s assumption of the day-to-day operations of the

company has left Archambault to join company founder Pierre

Michaud as co-chairman of the board. Earlier this year,

Archambault told the company’s shareholders that he wished

to relinquish his duties as president and CEO of Réno-Dépôt

in favour of personal pursuits, including spending more time

with his family. The announcement prompted the change in

leadership. As part of his new responsibilities, he will

serve as special consultant to Toutant for an unspecified

length of time.

 

“Over the past two decades, Mr. Archambault has helped

redefine the product offering in Quebec’s hardware and home

renovation industry. He has been a driving force behind the

development of the ‘home renovation warehouse’ concept in

Quebec,” said Michaud in a prepared release.

 

Toutant himself has worked with Archambault at Réno-Dépôt

for nearly 15 years. A graduate in administration from the

University of Québec at Trois-Rivières, he joined the

company as marketing coordinator with Brico Centre,

Réno-Dépôt’s predecessor.

 

In 1992 and 1993, Toutant was involved in setting up

Réno-Dépôt and, in 1994, became its vice-president,

marketing. Since then, he has been integral to the

development of the banner. On November 24, Réno-Dépôt will

open its 14th warehouse store in Canada, this one in

Sherbrooke, QC.

 

______________________________________________

BMR ENJOYS DOUBLE-DIGIT GROWTH

New stores and a relatively healthy economy in Québec have

resulted in double-digit growth for Groupe BMR in 2001, says

Yves Gagnon, president of the Longueuil, QC-based wholesale

buying group.

 

The group, a member of umbrella buying group Matreco, “is

doing very well,” says Gagnon, who expects retail sales

growth to be 22% higher in 2001 than in the previous year. A

good deal of that growth has come from the acquisition of

new member dealers, starting at the beginning of the year

with the signing of Builders’ Warehouse, a former Rona

member that has sales of $50 million. Four other stores have

since joined, while Gagnon is evaluating enquiries from 15

more.

 

______________________________________________

PACO UNDERHILL: RETAILERS MUST

FOCUS ON THE STORE FLOOR

Most merchants or marketers were trained to fight wars, like

the ones between The Bay and eatons or McDonald’s and Burger

King,” says retail guru Paco Underhill. But singular focus

on the cash register is a myopic one, he warned. He spoke

last week in Toronto at a conference hosted by the Retail

Council of Canada.

 

Underhill’s job, as he described it, is to find out how

little merchants actually know about what happens on their

store floor. “They’ve got to remember they need to have a

living, effective store,” he said.

 

“Knowing store traffic patterns is crucial.” Most people go

to the right because 80% of the world is right-handed.

Beyond that, managing store traffic includes setting

landmarks that help people get their bearings and feel

comfortable with the store quickly. And there are marketing

advantages to sitting still: if a woman can plant her

significant other on a chair, she will spend more time in

the store – and spend more.

 

Underhill emphasizes common impediments to spending money in

a store, regardless of its size. “We are part of an aging

culture,” he said. “Demographics will determine how

lighting, colours and legible signage can make a friendly

store.” He added that reaching out to ethnic communities

has proven very effective for retailers such as Home Depot

Canada.

 

Because retail spending tends to follow housing trends,

Underhill sees the era of the big box coming to a

conclusion. The small, nimble independent will have the

advantage through selling unique selections of products.

“The strength and the weakness of the big guys is the

ability to buy in bulk,” he said.

_____________________________________________

COMPANIES IN THE NEWS

 

For its third quarter, Canadian Tire Corp. reported earnings

of $53.5 million, up from $43 million a year earlier. A

one-time gain from the sale of receivables totalling $9.5

million impacted the earnings. Sales, however, fell 1.7%,

from $1.33 billion to $1.30 billion. Retail sales grew 6.2%,

while same-store sales increased by 2.6%. Retail sales for

the first nine months were up 7.4% from the same period a

year earlier.

 

Calgary Co-op has opened a new store in Calgary. The new

store is part of the co-op’s strategic development and

enhancement plan, which includes the replacement and

renovation of older centres. The new 54,000-sq.ft. store is

in the site of a previous outlet, which opened in 1963 and

has been demolished.

 

In an effort to integrate its entire North American

operations, American Tool Cos. has eliminated its

distribution and marketing function in Canada. The move has

resulted in the closing of its Mississauga, ON distribution

centre, in favour of a cross-docking operation handled by

Caterpillar Logistics in Guelph ON. In addition, five

positions, including marketing, were eliminated.

 

Swan Co., formerly owned by Mark IV Industries, has been

purchased by Tekni-Plex. The Columbus, NJ-based company also

owns six other companies, including Colorite and American

Gasket and Rubber. Canadian operations, formerly Dayco Swan,

will continue to operate unchanged, under the Swan Hose

name.

 

SICO Inc. has posted net earnings of $3,193,000, up 3.4%

over net earnings of $3,088,000 during the same period in

2000. Sales rose 3.4% to $56.6 million, due mainly to

business from the acquisition of Chemcraft International

Inc. last year.

 

GSW Inc. has announced its results for the third quarter of

2001. Sales were $59.3 million, up from $55.2 million in

2000. Net income was reported at $467,000, up from $407,000

a year ago.

 

MiTek and Trus Joist, a Weyerhaeuser business headquartered

in Boise, Idaho, have formed a joint venture to develop

“whole-house” software to be used in residential wood-framed

construction. The software will support component suppliers

through a focus on design solutions for structural frames.

OptiFrame Software LLC will be headquartered in Denver,

Colorado, and will be operational during the first quarter

of 2002.

 

Newell Rubbermaid Inc. expects its recovery plan to continue

on cue in spite of a slowdown in the U.S. economy. The

company posted expectations of a 15% growth in earnings in

2002. This follows an announcement of a 27% net income fall

and 0.7% sales growth in the third quarter, which was slated

as the first quarter of its expansion plan.

 

Martha Stewart Living Omnimedia Inc. has posted a 25% rise

in third-quarter earnings, mostly due to new lines of

business and cost controls. The company also announced multi

year merchandising partnerships with Bernhardt Furniture Co.

and Shaw Industries Inc. to design and market home furniture

and floor coverings bearing the “Martha Stewart Signature”

label.

 

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	15.05
Canfor	16.95	7.65	7.65
Emco	7.50	2.60	2.60
Goodfellow	11.00	8.00	8.00
Home Depot	49.74	47.61	30.30
Hudson’s Bay	17.65	12.40	12.40
Lowe’s	64.90	34.25	18.18
Sears Canada	37.25	18.55	12.50
Sodisco Howden	2.80	0.75	0.75
Taiga Forest	10.00	6.80	6.80
West Fraser	36.50	21.00	21.00

______________________________________________

“When a man sells 11 ounces for 12, he makes a compact with

the devil, and sells himself for the value of an ounce.”

– Henry Howard Beecher (1813-87)

______________________________________________

MARKET INDICATORS

Gross domestic product remained largely flat for the fourth

straight month, according to Stats Canada. The economy

increased a marginal 0.1% in August, just prior to the

terrorist attacks in the U.S. It was only the fifth time in

the past 12 months that the economy as a whole showed any

improvement. Output of wood products was 0.9% higher in

August, largely in response to the surge in new home

building.

 

The annual rate of growth in industrial product prices was

the same in September as in August, according to Stats

Canada. Raw materials prices continued to decline compared

with September 2000, the fourth consecutive month of

negative growth. Manufacturers’ prices, as measured by the

Industrial Product Price Index (IPPI), grew 0.6% in

September compared with September 2000; August saw a similar

year-over-year gain of 0.6%.

 

The U.S. chain stores sales snapshot reported by the Bank of

Tokyo-Mitsubishi and UBS Warburg’s fell 1.6% during last

week. This is the largest decline since March. According to

the report, consumer confidence plummeted in October,

hitting a seven-year low.

 

* * * * * *

INDUSTRY NEWS. EVERY DAY –

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS

THAT MATTER TO YOU. KEEP INFORMED.

VISIT hardlines.ca – EVERY DAY!

 

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel

 

Wichmann, 416-598-3343; or colognet@idirect.com. To book

 

your flight and hotel, call Carol-Ann Contact Trade Show

Travel by phone: 1-877-873-7469; fax: 403-247-2448; or

 

tradeshowtravel@shaw.ca to arrange your trip. Packages

 

include return airfare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

 

Packages also include an invitation to the internationally

famous Canada Night Reception on Sunday, March 3, 2002,

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

 

* * * * * *

PEOPLE ON THE MOVE

Rona Inc. has made some changes to its buying team: Larry

Jarvis, previously vice-president building materials for

Revy, has been named vice-president building materials for

the entire Rona network … Jeff Kilgour is now

vice-president, forest products … Pierre Charron is

vice-president for buying and purchasing of hardware …

Mark Dufresne is now vice-president purchasing and

logistics. He was previously vice-president strategy and

development. (514-599-5100)

 

After more than 27 years with Canadian Tire Corp., most

recently as project manager in its head-office marketing

operations division, Harold Fry has moved to Nexwood

Industries in Brampton, ON as sales manager. Nexwood sells

composite wood/resin building products for use in decks,

fencing and other outdoor construction. (905-799-9686)

 

More cuts at Sodisco-Howden Group: Peter Ulmer, formerly

regional sales manager, Ontario, left on October 25th …

Richard Mitton, previously regional sales manager for

Atlantic Canada, left at the same time. Mitton’s experience

includes three years with Sodisco-Howden and 14 years with

Thornes. The shuffle occurred at the same time as the

previously announced exit of two vice-presidents, Bill

Wilson in London, ON and Terry Bice in Surrey, BC.

(519-686-2200)

______________________________________________

OVERHEARD …

“Canadian Tire needs to understand that Wal-Mart and

Shoppers Drug Mart are their competitors, not just Home

Depot.” – Paco Underhill, author and retail guru who spoke

last week in Toronto at a conference hosted by the Retail

Council of Canada.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of

product lines.

Why not make yours one of them?

www.noralmarketing.com or call 519-439-6800 ext. 201

* * * * * *

PROMOTE YOUR COMPANY BETTER

Want to communicate more effectively to your customers?

Need help announcing new products, businesses or marketing

initiatives?

McLARNEYCOM brings vendors and retailers the marketing tools

they need to boost sales:

press releases, corporate brochures, customer newsletters,

direct mail and more!

 

Contact us at 416-489-3396; buzz@hardlines.ca

 

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

 

Contact us at 416-489-3396 or email: buzz@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 (c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@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. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

 

HARDLINES

Canada’s electronic information service for home improvement

industry

November 5, 2001

Volume vii, #46

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Réno-Dépôt names new CEO

* BMR enjoys growth thanks to new members

* Retail guru challenges retailers to take long-term view

* Retail sales up for Canadian Tire dealers in 3Q

* GDP stays flat in August

* * * * * *

I know some people object to the promotional stuff, but I

wouldn’t include it if a lot of people weren’t finding these

information products really helpful. So please, check ’em

out!! – Michael

 

There’s no better place to get information on the Canadian

hardware/home improvement industry than the Hardlines

Information Service.

Save hundreds of hours of research (and cut down on

frustration) with:

** Hardlines Quarterly Report **

An executive summary and in-depth analysis of the issues and

news driving hardware and home improvement retailing – plus

proprietary research you can’t get anywhere else. ($349 +

taxes)

** Hardlines Industry Report: Home Improvement Retailing in

Canada **

The Big Kahuna: comprehensive overview of the Canadian

market: size, key players, growth of big boxes, trends in

housing, renovation and market. ($750 for subscribers to the

weekly newsletter, way more for everyone else.)

** Hardlines 2001-2002 Who’s Who **

An invaluable aid for targeting your prospects in the

industry. It includes sales figures, product mix, executive

personnel and key buyers for more than 100 hardware and home

improvement retailers, wholesalers, buying groups, mass

merchants and co-ops. ($135 + taxes for subscribers, $175 +

taxes for non-subscribers.)

** NEW: PowerPoint Presentation on the Canadian Market **

(from our first annual Retail Strategies Symposium)

A point-by-point illustration of how the Canadian market

works and where it’s heading. Dazzle your bosses with this

one! ($179 + taxes for subscribers, $449 + taxes for

non-subscribers.)

 

Call Nancy Wright at 416.489.3396, email her at:

 

nancy@hardlines.ca, or go online:

 

https://hardlines.ca/html/order.html to order any of the

 

above publications.

______________________________________________

TOUTANT NAMED CEO OF RÉNO-DÉPÔT,

ARCHAMBAULT BECOMES CO-CHAIR

Sylvain Toutant, 38, has been named the new head of Canada’s

sixth-largest retail home improvement organization.

 

Toutant’s promotion to president and CEO of Réno-Dépôt Inc.

is just the latest step in his rise. In January 2001, he had

added merchandising to his duties as vice-president

marketing at Réno-Dépôt, when Richard Martoccia exited the

merchandising role to work more closely with Réno-Dépôt’s

parent, Castorama in France, as Réno-Dépôt’s vp synergy.

 

Toutant’s assumption of the day-to-day operations of the

company has left Archambault to join company founder Pierre

Michaud as co-chairman of the board. Earlier this year,

Archambault told the company’s shareholders that he wished

to relinquish his duties as president and CEO of Réno-Dépôt

in favour of personal pursuits, including spending more time

with his family. The announcement prompted the change in

leadership. As part of his new responsibilities, he will

serve as special consultant to Toutant for an unspecified

length of time.

 

“Over the past two decades, Mr. Archambault has helped

redefine the product offering in Quebec’s hardware and home

renovation industry. He has been a driving force behind the

development of the ‘home renovation warehouse’ concept in

Quebec,” said Michaud in a prepared release.

 

Toutant himself has worked with Archambault at Réno-Dépôt

for nearly 15 years. A graduate in administration from the

University of Québec at Trois-Rivières, he joined the

company as marketing coordinator with Brico Centre,

Réno-Dépôt’s predecessor.

 

In 1992 and 1993, Toutant was involved in setting up

Réno-Dépôt and, in 1994, became its vice-president,

marketing. Since then, he has been integral to the

development of the banner. On November 24, Réno-Dépôt will

open its 14th warehouse store in Canada, this one in

Sherbrooke, QC.

 

______________________________________________

BMR ENJOYS DOUBLE-DIGIT GROWTH

New stores and a relatively healthy economy in Québec have

resulted in double-digit growth for Groupe BMR in 2001, says

Yves Gagnon, president of the Longueuil, QC-based wholesale

buying group.

 

The group, a member of umbrella buying group Matreco, “is

doing very well,” says Gagnon, who expects retail sales

growth to be 22% higher in 2001 than in the previous year. A

good deal of that growth has come from the acquisition of

new member dealers, starting at the beginning of the year

with the signing of Builders’ Warehouse, a former Rona

member that has sales of $50 million. Four other stores have

since joined, while Gagnon is evaluating enquiries from 15

more.

 

______________________________________________

PACO UNDERHILL: RETAILERS MUST

FOCUS ON THE STORE FLOOR

Most merchants or marketers were trained to fight wars, like

the ones between The Bay and eatons or McDonald’s and Burger

King,” says retail guru Paco Underhill. But singular focus

on the cash register is a myopic one, he warned. He spoke

last week in Toronto at a conference hosted by the Retail

Council of Canada.

 

Underhill’s job, as he described it, is to find out how

little merchants actually know about what happens on their

store floor. “They’ve got to remember they need to have a

living, effective store,” he said.

 

“Knowing store traffic patterns is crucial.” Most people go

to the right because 80% of the world is right-handed.

Beyond that, managing store traffic includes setting

landmarks that help people get their bearings and feel

comfortable with the store quickly. And there are marketing

advantages to sitting still: if a woman can plant her

significant other on a chair, she will spend more time in

the store – and spend more.

 

Underhill emphasizes common impediments to spending money in

a store, regardless of its size. “We are part of an aging

culture,” he said. “Demographics will determine how

lighting, colours and legible signage can make a friendly

store.” He added that reaching out to ethnic communities

has proven very effective for retailers such as Home Depot

Canada.

 

Because retail spending tends to follow housing trends,

Underhill sees the era of the big box coming to a

conclusion. The small, nimble independent will have the

advantage through selling unique selections of products.

“The strength and the weakness of the big guys is the

ability to buy in bulk,” he said.

_____________________________________________

COMPANIES IN THE NEWS

 

For its third quarter, Canadian Tire Corp. reported earnings

of $53.5 million, up from $43 million a year earlier. A

one-time gain from the sale of receivables totalling $9.5

million impacted the earnings. Sales, however, fell 1.7%,

from $1.33 billion to $1.30 billion. Retail sales grew 6.2%,

while same-store sales increased by 2.6%. Retail sales for

the first nine months were up 7.4% from the same period a

year earlier.

 

Calgary Co-op has opened a new store in Calgary. The new

store is part of the co-op’s strategic development and

enhancement plan, which includes the replacement and

renovation of older centres. The new 54,000-sq.ft. store is

in the site of a previous outlet, which opened in 1963 and

has been demolished.

 

In an effort to integrate its entire North American

operations, American Tool Cos. has eliminated its

distribution and marketing function in Canada. The move has

resulted in the closing of its Mississauga, ON distribution

centre, in favour of a cross-docking operation handled by

Caterpillar Logistics in Guelph ON. In addition, five

positions, including marketing, were eliminated.

 

Swan Co., formerly owned by Mark IV Industries, has been

purchased by Tekni-Plex. The Columbus, NJ-based company also

owns six other companies, including Colorite and American

Gasket and Rubber. Canadian operations, formerly Dayco Swan,

will continue to operate unchanged, under the Swan Hose

name.

 

SICO Inc. has posted net earnings of $3,193,000, up 3.4%

over net earnings of $3,088,000 during the same period in

2000. Sales rose 3.4% to $56.6 million, due mainly to

business from the acquisition of Chemcraft International

Inc. last year.

 

GSW Inc. has announced its results for the third quarter of

2001. Sales were $59.3 million, up from $55.2 million in

2000. Net income was reported at $467,000, up from $407,000

a year ago.

 

MiTek and Trus Joist, a Weyerhaeuser business headquartered

in Boise, Idaho, have formed a joint venture to develop

“whole-house” software to be used in residential wood-framed

construction. The software will support component suppliers

through a focus on design solutions for structural frames.

OptiFrame Software LLC will be headquartered in Denver,

Colorado, and will be operational during the first quarter

of 2002.

 

Newell Rubbermaid Inc. expects its recovery plan to continue

on cue in spite of a slowdown in the U.S. economy. The

company posted expectations of a 15% growth in earnings in

2002. This follows an announcement of a 27% net income fall

and 0.7% sales growth in the third quarter, which was slated

as the first quarter of its expansion plan.

 

Martha Stewart Living Omnimedia Inc. has posted a 25% rise

in third-quarter earnings, mostly due to new lines of

business and cost controls. The company also announced multi

year merchandising partnerships with Bernhardt Furniture Co.

and Shaw Industries Inc. to design and market home furniture

and floor coverings bearing the “Martha Stewart Signature”

label.

 

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	15.05
Canfor	16.95	7.65	7.65
Emco	7.50	2.60	2.60
Goodfellow	11.00	8.00	8.00
Home Depot	49.74	47.61	30.30
Hudson’s Bay	17.65	12.40	12.40
Lowe’s	64.90	34.25	18.18
Sears Canada	37.25	18.55	12.50
Sodisco Howden	2.80	0.75	0.75
Taiga Forest	10.00	6.80	6.80
West Fraser	36.50	21.00	21.00

______________________________________________

“When a man sells 11 ounces for 12, he makes a compact with

the devil, and sells himself for the value of an ounce.”

– Henry Howard Beecher (1813-87)

______________________________________________

MARKET INDICATORS

Gross domestic product remained largely flat for the fourth

straight month, according to Stats Canada. The economy

increased a marginal 0.1% in August, just prior to the

terrorist attacks in the U.S. It was only the fifth time in

the past 12 months that the economy as a whole showed any

improvement. Output of wood products was 0.9% higher in

August, largely in response to the surge in new home

building.

 

The annual rate of growth in industrial product prices was

the same in September as in August, according to Stats

Canada. Raw materials prices continued to decline compared

with September 2000, the fourth consecutive month of

negative growth. Manufacturers’ prices, as measured by the

Industrial Product Price Index (IPPI), grew 0.6% in

September compared with September 2000; August saw a similar

year-over-year gain of 0.6%.

 

The U.S. chain stores sales snapshot reported by the Bank of

Tokyo-Mitsubishi and UBS Warburg’s fell 1.6% during last

week. This is the largest decline since March. According to

the report, consumer confidence plummeted in October,

hitting a seven-year low.

 

* * * * * *

INDUSTRY NEWS. EVERY DAY –

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS

THAT MATTER TO YOU. KEEP INFORMED.

VISIT hardlines.ca – EVERY DAY!

 

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel

 

Wichmann, 416-598-3343; or colognet@idirect.com. To book

 

your flight and hotel, call Carol-Ann Contact Trade Show

Travel by phone: 1-877-873-7469; fax: 403-247-2448; or

 

tradeshowtravel@shaw.ca to arrange your trip. Packages

 

include return airfare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

 

Packages also include an invitation to the internationally

famous Canada Night Reception on Sunday, March 3, 2002,

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

 

* * * * * *

PEOPLE ON THE MOVE

Rona Inc. has made some changes to its buying team: Larry

Jarvis, previously vice-president building materials for

Revy, has been named vice-president building materials for

the entire Rona network … Jeff Kilgour is now

vice-president, forest products … Pierre Charron is

vice-president for buying and purchasing of hardware …

Mark Dufresne is now vice-president purchasing and

logistics. He was previously vice-president strategy and

development. (514-599-5100)

 

After more than 27 years with Canadian Tire Corp., most

recently as project manager in its head-office marketing

operations division, Harold Fry has moved to Nexwood

Industries in Brampton, ON as sales manager. Nexwood sells

composite wood/resin building products for use in decks,

fencing and other outdoor construction. (905-799-9686)

 

More cuts at Sodisco-Howden Group: Peter Ulmer, formerly

regional sales manager, Ontario, left on October 25th …

Richard Mitton, previously regional sales manager for

Atlantic Canada, left at the same time. Mitton’s experience

includes three years with Sodisco-Howden and 14 years with

Thornes. The shuffle occurred at the same time as the

previously announced exit of two vice-presidents, Bill

Wilson in London, ON and Terry Bice in Surrey, BC.

(519-686-2200)

______________________________________________

OVERHEARD …

“Canadian Tire needs to understand that Wal-Mart and

Shoppers Drug Mart are their competitors, not just Home

Depot.” – Paco Underhill, author and retail guru who spoke

last week in Toronto at a conference hosted by the Retail

Council of Canada.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of

product lines.

Why not make yours one of them?

www.noralmarketing.com or call 519-439-6800 ext. 201

* * * * * *

PROMOTE YOUR COMPANY BETTER

Want to communicate more effectively to your customers?

Need help announcing new products, businesses or marketing

initiatives?

McLARNEYCOM brings vendors and retailers the marketing tools

they need to boost sales:

press releases, corporate brochures, customer newsletters,

direct mail and more!

 

Contact us at 416-489-3396; buzz@hardlines.ca

 

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure

today.

 

Contact us at 416-489-3396 or email: buzz@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 (c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@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. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

 

 

HARDLINES

Canada’s electronic information service for home improvement industry

October 29, 2001

Volume vii, #44

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Building Box loses installed sales partner

* Turkstra picks up a new store

* TruServ’s new financing deal gets 95% acceptance by

dealers

* Home Depot confirms intention to pull out of South America

* Premdor will change its name to Masonite

* * * * * *

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED:

HARDLINES RETAIL REPORT 2001 – a turnkey PowerPoint presentation to wow your boss at planning time. Bev actually

thought of this one, after getting so many calls during planning time from people looking for a concise snapshot of

the market: This presentation looks fabulous. It comes complete with charts, photos and pie charts, including:

– provincial breakouts

– market share by retail format

– growth of the big boxes

– top 10 home improvement retailers

– ranking of buying groups.

A MUST for anyone trying to explain the Canadian market. Priced VERY low at only $179 + taxes for Hardlines

subscribers! (WAY more expensive for non-subscribers!) Call 416.489.3396 or email nancy@hardlines.ca or order online:

 

https://hardlines.ca/html/order.html to get your CD-ROMnow.

 

* * * * * *

ARE YOU GETTING HARDLINES QUARTERLY REPORT?

The next issue will tell you:

* what’s coming this spring with the Top Four Retailers

* analysis of the Top 10 Retailers, 1990 and now

* the European market outlook

* the latest economic indicators

* and more …

So if you’re not a subscriber, you’ll miss it all. Both The Financial Post and the Toronto Star have reported on the

exclusive research that appears in HQR. Shouldn’t you be reading it? Only $349 + taxes for a full year. Call Nancy Wright at

 

416.489.3396, email her at: nancy@hardlines.ca, or go to our website: https://hardlines.ca/html/order.html

 

______________________________________________

INSTALLED SALES PARTNER PULLS OUT OF BUILDING BOX

The Building Box is losing its partner in installed sales in its stores in Southern Ontario. The service had been

provided in conjunction with The Homeservice Club, a Toronto-area members-only residential home improvement and

repairs company that links up approved trades with homeowners. Homeservice Club had its own kiosks and staff right in the

stores, but is in the process of closing them down. The one in Cambridge was shut down on October 2, while Scarborough

and Brampton will be shut down on November 2. The new Building Box that will open November 14 in Mississauga, ON

does not even include an installed sales counter. Rick Felton, president of the Homeservice Club, blames the

failure of the program on a lack of commitment by Réno-Dépôt, the parent of the Building Box, to promote the

service adequately, both instore and through advertising. Even the initial run of advertising that accompanied the

launch of The Building Box in Southern Ontario in November 2000 never included any mention of installed sales, he says.

“A lot of staff didn’t even know where the installed service counter was in the store.” Says Paul Hetu, vice-president of marketing at Réno-Dépôt,

“the Building Box is still offering installed sales, but only in departments where it makes a lot of sense, such as

kitchens, doors and windows, and floors.” The service, he adds, will be on a referral basis only and involve good

contractor customers of the Building Box. One sticking point was Felton’s desire to have Réno-Dépôt

subsidize the cost of keeping a Homeservice Club staff member in the stores. “It was a point where we agreed to

disagree,” says Hetu. “Building Box wants to focus on selling the goods, not installing the goods.”

 

At its peak, Homeservice Club was receiving up to 800 orders per month out of the first two Building Box stores, Felton

says. As the program lost steam and the service desk was replaced by an instore hotline phone to Homeservice Club’s

office, orders dwindled to a meagre 30 per month.

______________________________________________

TURKSTRA LUMBER TRIES HYBRID STRATEGY FOR ITS YARDS IN SOUTHWESTERN ONTARIO

 

Turkstra Lumber has announced its expansion into the Cambridge, ON market through the purchase of Cambridge Home

Centre. The 30,000-sq.ft. facility will retain its name and operate as a separate company.

Two of the three owners of Cambridge, which was formerly with Castle, will continue to work there. The third has

accepted a position at Turkstra. All other employees will remain in place.

 

“Both the staff and location make this a very consumer friendly store,” says Peter Turkstra, vice-president

operations, Turkstra Lumber. “The plan is to provide the store with a contractor view and the financial resources to

increase its performance as a hybrid.” Some changes are already in place: the store has stopped

opening on Sundays and has replaced its cash registers with service desks to enhance the customer service and grow the

contractor side of the market. Turkstra views this purchase as the first in a series of

moves that will help his company expand its geographic market. “We feel we are in a position to help the

independent. We want to expand in the Southwestern Ontario area, and are very interested in other opportunities like

this one.”

 

Cambridge Home Centre was previously a Castle dealer.

______________________________________________

 

TRUSERV DEALERS OVERWHELMINGLY ACCEPT BUYOUT PLAN

 

At the national merchandise market and annual general meeting of TruServ Canada, member dealers voted

overwhelmingly to accept a new deal to make their co-op 100% Canadian owned. Until then, the Canadian operation had been

held by Cotter Canada Hardware and Variety Co., a wholly owned subsidiary of TruServ Corp. in Chicago.

At the AGM on October 23, executives of TruServ Canada announced the successful buyout of the preferred voting

shares and other assets, including TruServ’s Winnipeg distribution centre. That involved getting member approval

for financing from an undisclosed Canadian institution to redeem, at book value, all shares of TruServ Canada owned by

the U.S. operation.

Most recently, TruServ U.S. held 85% of voting control but only 44% of the common shares. TruServ Canada members owned

the remaining 56%. Under the original deal, which closed January 31, 1992, the U.S. company had rescued the wholesale

operations of Macleod-Stedman Inc. from bankruptcy, taking ownership of almost 100% of the Canadian distributor’s

shares.

In a new deal that will last up to 10 years, TruServ Canada will continue to pay the U.S. operation a royalty fee for

use of the TruServ name. Lorna McLeod, director of finance at TruServ in Winnipeg, declined to reveal the amount of

that fee, but said it’s less than what was being paid before.

_____________________________________________

COMPANIES IN THE NEWS

Home Depot has confirmed its intention (first announced at the Hardlines Marketing Conference on September 13! –

Editor) to sell its stores in South America. The five stores in Chile will be sold back to joint-venture partner

Falabella. Four stores in Argentina will be sold to Hipermercados Jumbo, which owns Easy Homecenter. The deals

are expected to close during Home Depot’s fourth quarter, which ends January 31, 2002. The company says it intends to

focus on its acquisition of the four-store chain Total Home in Mexico, and on continued expansion in Canada and the

Caribbean.

 

The AWARD Group has moved to a new corporate head office: Suite 1030 Metropolitan Place, 99 Wyse Road, Dartmouth, NS

B4A 4S5. The phone remains the same: 902-835-7242. Premdor Inc. will change its name to Masonite International

Corp., effective January 1, 2002. The move follows the takeover on August 31, 2001 by Premdor of Masonite Corp.

from International Paper Co. Premdor’s line of exterior and interior doors will be branded “The Premdor Collection of

Premium Quality Doors Exclusively from Masonite.” Door components and related products will carry the Masonite

name. The Mississauga, ON-based company operates 70 facilities in 12 countries.

 

PPG AC Canada has relocated its central Canadian distribution centre to a new facility in Brampton, ON: 4

Kenview Boul., Brampton, ON L6T 5E4; phone: 905-790-5339; fax: 905-458-0673. The new facility will be used to service

PPG’s customers in Ontario and Québec. Hudson’s Bay Co. opened three Home Outfitters stores last

week, including its first two locations in Ottawa. The 40,000-sq.ft. stores bring the total number of Home

Outfitters locations in Canada to 17, including one store in Alberta, three stores in Québec – operating under the Deco

Decouverte name – and one store in Manitoba. Five more stores are scheduled to open across the country by the end

of the year.

 

Sears Canada has invested further in the services side of its business with the purchase of Tripeze.com Inc. The

acquisition will broaden the ability of Sears Travel to sell travel through its stores and online. The transaction was

completed for an undisclosed amount through the wholly-owned Sears Travel Service division.

As the prime rate drops down to 4.5%, department stores are getting flak for credit card charges of 28.8%. Retailers

such as Canadian Tire and Sears, which have retained credit card fees of 28% for ten and twenty years respectively, have

indicated that they have no intentions of lowering their rates. Both companies argue that the cost of running credit

card programs remains steady despite changes in the prime rate.

 

Weyerhaeuser Co. has announced a third-quarter earnings fall of 54% as the economic downturn weakened the markets for

pulp, paper and packaging. The company reported a profit of US$91 million, compared with US$199 million a year earlier.

Sales fell to US$3.7 billion from US$3.9 billion a year ago. Sears, Roebuck and Co. is shifting its strategy down-market

to more closely resemble discount chains like Wal-Mart Inc. and Target Corp. The announcement comes in the heels of

U.S.-based parent-company layoffs involving 22% of the workforce. The strategy is geared to double company profits

by end of 2004. Sears Canada will not be affected by the job cuts.

 

Black & Decker Corp. has reported a sharp drop in third-quarter earnings, with a total of US$46.2 million,

compared with US$86.3 million a year earlier. Third-quarter sales fell 6% to US$1.06 billion from US$1.13 billion.

_____________________________________________

CANADIAN STOCK WATCH

 

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.86
Canfor	16.95	7.65	8.60
Emco	7.50	2.60	5.50
Goodfellow	11.00	8.00	8.50
Home Depot	49.74	47.61	40.29
Hudson’s Bay	17.65	12.40	14.83
Lowe’s	64.90	34.25	34.75
Sears Canada	37.25	18.55	14.20
Sodisco Howden	2.80	0.75	1.12
Taiga Forest	10.00	6.80	10.00
West Fraser	36.50	21.00	31.75

______________________________________________

“The superior man understands what is right; the inferior man understands what will sell.”

– Confucius (c. 551-479 B.C.)

______________________________________________

MARKET INDICATORS

The Composite Index edged up 0.1% in August, says Statistics Canada. The housing index rose less rapidly (+0.2%)

in September than in August (+1.6%), as housing starts slowed in Ontario after vacancy rates edged up. Sales by the group

of large retailers totalled $6.9 billion in August, up 8.5% from the same month last year, according

to Statistics Canada. The largest gains were seen in the health and personal care products category, with an increase

of 14.9%. Hardware and lawn and garden products increased in sales by 10.2%.

 

September sales at department stores fell 4.5% from August totals, according to Statistics Canada. This was the second

decline in two months and the largest since the 5.6% decline of November 1999. Retail sales posted a 0.3% increase in August, offsetting a

0.3% decline the previous month, as reported by Statistics Canada. In August, retail sales in constant dollars were up

a slight 0.2% from July. For the first eight months of 2001, retail sales were 5.0% higher than during the same period of

2000.

 

The U.S. housing industry is predicting a short and shallow dip for home building sales, forecasting declines in both

new and existing home sales and housing starts for the last two quarters of 2001. But demand for housing is expected to

remain strong, based on population growth, low mortgage rates through 2002 and a low inventory of homes available

for sale.

 

The Conference Board has reported that the U.S. index of leading economic indicators fell 0.5% in September, the

largest decline since a 0.8% fall in January 1996. The research firm called this a sign the economy would likely

remain weak into next year.

* * * * * *

 

$9 billion worth of retail buying power – and it fits right in your pocket! HARDLINES WHO’S WHO DIRECTORY (2001-2002 edition)

You can tap the combined buying power of Canada’s leading home improvement retailers – for only $135. The Who’s Who

includes sales figures, product mix, executive personnel and key buyers for more than 100 hardware and home improvement

retailers, wholesalers buying groups, mass merchants and co-ops.

 

ORDER TODAY! 416-489-3396, nancy@hardlines.ca or check it out at: https://hardlines.ca/html/whos_who.html

 

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel

 

Wichmann, 416-598-3343; or colognet@idirect.com. To book

 

your flight and hotel, call Carol-Ann Itel of Trade Show

Travel: 1-877-873-7469; fax: 403-247-2448; or

 

tradeshowtravel@home.com to arrange your trip. Packages

 

include return air fare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally

famous Canada Night Reception on Sunday, March 3, 2002,

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

* * * * * *

PEOPLE ON THE MOVE

The buyout of TruServ Canada Co-operative Inc. by the Canadian membership will leave the executive team unchanged.

However, one of the people who helped bring the deal to a successful conclusion, Pierre Levesque of Sturgeon Falls

True Value in Sturgeon Falls, ON has been appointed chairman of TruServ Canada. (204-453-9511)

ProfitMaster Canada has appointed three new members to their customer support team: Ken Harwood joins as customer support

analyst … Laurie Chownyk and R-P Singh both join an implementation project managers. (204-889-5320)

 

Leading to the relocation of its distribution centre to Brampton, ON, PPG AC Canada has also redefined various

management roles. Robert Fierheller will focus on dealer development as national team leader … Brad Rossetto will

continue leading the Canadian sales and marketing team as director … Todd Bourgon has joined the company as key

account manager. He replaces Lawrence Drew, former national accounts manager … Martine Warda, who joined the company

in March, will operate as marketing and communications coordinator for the Canadian business. (905-790-5339)

______________________________________________

NOTED …

In its latest “Best of T.O.” poll, urban arts and entertainment magazine Now readers voted Canadian Tire

stores in Toronto as “Best place to meet a straight man.” Two years ago, the same poll voted Home Depot’s Stockyards

store “Best place to meet a gay man.”

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986. We ensure high profile retail presence for a wide range of

product lines. Why not make yours one of them?

www.noralmarketing.com or call 519-439-6800 ext. 201

* * * * * *

PROMOTE YOUR COMPANY BETTER

Want to communicate more effectively to your customers? Need help announcing new products, businesses or marketing

initiatives? McLARNEYCOM brings vendors and retailers the marketing tools they need to boost sales:

press releases, corporate brochures, customer newsletters, direct mail and more!

 

Contact us at 416-489-3396; buzz@hardlines.ca

 

* * * * * *

MARKETING AND COMMUNICATIONS:

You are a senior marketing professional with many years of retail and contractor experience. As a team player, you

possess strong communication, managerial and interpersonal skills. You are a very motivated, ‘hands-on’ individual who

will be responsible for developing and executing various marketing programs, including print, radio and television.

Strong organizational skills are required for overseeing the budget and critical execution paths. Experience in setting

up trade and consumer shows and special events would be an asset.

TIM-BR Mart is the national retail brand for hundreds of building centres across Canada. This Ontario management

position is dedicated to ensuring that our stores project a strong retail image in the marketplace. Your goal is to

strengthen the TIM-BR Mart brand by making the marketing decisions that provide the best value within the approved

budget.

We offer a competitive compensation package and a pleasant working environment. We thank all candidates for their

interest; however, only those candidates selected for an interview will be contacted.

Please fax your resumé, in strictest confidence, to the Executive Assistant at the private fax: 905-671-9467 or

 

e-mail to sheenaj@homecare.on.ca

 

* * * * * *

MERCHANDISER/SUPERVISOR:

MOST Marketing is looking for an experienced merchandiser/supervisor to service the Leviton line of

products for retail stores in the Toronto area market. This is a contract position. Benefits and remuneration are

based on experience. If you’re interested and a hard worker, contact Alain Carle, Merchandising and Servicing Manager,

Leviton Manufacturing Canada; 1-800-461-2002 ext. 467; e-mail: acarle@leviton.com. Suitable candidates must have a

 

car, and must be available to travel.

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to industry eyes. Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure today.

 

Contact us at 416-489-3396 or email: buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@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 #139870398 RT). Secondary subscriptions at the same office are

only $28 + $1.96 GST = $29.98. You can pay online by VISA at our secure website or send us money. Please make cheque

payable to McLarneyCom.

 

 

 

 

HARDLINES

Canada’s electronic information service for home improvement industry

October 29, 2001

Volume vii, #44

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Building Box loses installed sales partner

* Turkstra picks up a new store

* TruServ’s new financing deal gets 95% acceptance by

dealers

* Home Depot confirms intention to pull out of South America

* Premdor will change its name to Masonite

* * * * * *

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED:

HARDLINES RETAIL REPORT 2001 – a turnkey PowerPoint presentation to wow your boss at planning time. Bev actually

thought of this one, after getting so many calls during planning time from people looking for a concise snapshot of

the market: This presentation looks fabulous. It comes complete with charts, photos and pie charts, including:

– provincial breakouts

– market share by retail format

– growth of the big boxes

– top 10 home improvement retailers

– ranking of buying groups.

A MUST for anyone trying to explain the Canadian market. Priced VERY low at only $179 + taxes for Hardlines

subscribers! (WAY more expensive for non-subscribers!) Call 416.489.3396 or email nancy@hardlines.ca or order online:

 

https://hardlines.ca/html/order.html to get your CD-ROMnow.

 

* * * * * *

ARE YOU GETTING HARDLINES QUARTERLY REPORT?

The next issue will tell you:

* what’s coming this spring with the Top Four Retailers

* analysis of the Top 10 Retailers, 1990 and now

* the European market outlook

* the latest economic indicators

* and more …

So if you’re not a subscriber, you’ll miss it all. Both The Financial Post and the Toronto Star have reported on the

exclusive research that appears in HQR. Shouldn’t you be reading it? Only $349 + taxes for a full year. Call Nancy Wright at

 

416.489.3396, email her at: nancy@hardlines.ca, or go to our website: https://hardlines.ca/html/order.html

 

______________________________________________

INSTALLED SALES PARTNER PULLS OUT OF BUILDING BOX

The Building Box is losing its partner in installed sales in its stores in Southern Ontario. The service had been

provided in conjunction with The Homeservice Club, a Toronto-area members-only residential home improvement and

repairs company that links up approved trades with homeowners. Homeservice Club had its own kiosks and staff right in the

stores, but is in the process of closing them down. The one in Cambridge was shut down on October 2, while Scarborough

and Brampton will be shut down on November 2. The new Building Box that will open November 14 in Mississauga, ON

does not even include an installed sales counter. Rick Felton, president of the Homeservice Club, blames the

failure of the program on a lack of commitment by Réno-Dépôt, the parent of the Building Box, to promote the

service adequately, both instore and through advertising. Even the initial run of advertising that accompanied the

launch of The Building Box in Southern Ontario in November 2000 never included any mention of installed sales, he says.

“A lot of staff didn’t even know where the installed service counter was in the store.” Says Paul Hetu, vice-president of marketing at Réno-Dépôt,

“the Building Box is still offering installed sales, but only in departments where it makes a lot of sense, such as

kitchens, doors and windows, and floors.” The service, he adds, will be on a referral basis only and involve good

contractor customers of the Building Box. One sticking point was Felton’s desire to have Réno-Dépôt

subsidize the cost of keeping a Homeservice Club staff member in the stores. “It was a point where we agreed to

disagree,” says Hetu. “Building Box wants to focus on selling the goods, not installing the goods.”

 

At its peak, Homeservice Club was receiving up to 800 orders per month out of the first two Building Box stores, Felton

says. As the program lost steam and the service desk was replaced by an instore hotline phone to Homeservice Club’s

office, orders dwindled to a meagre 30 per month.

______________________________________________

TURKSTRA LUMBER TRIES HYBRID STRATEGY FOR ITS YARDS IN SOUTHWESTERN ONTARIO

 

Turkstra Lumber has announced its expansion into the Cambridge, ON market through the purchase of Cambridge Home

Centre. The 30,000-sq.ft. facility will retain its name and operate as a separate company.

Two of the three owners of Cambridge, which was formerly with Castle, will continue to work there. The third has

accepted a position at Turkstra. All other employees will remain in place.

 

“Both the staff and location make this a very consumer friendly store,” says Peter Turkstra, vice-president

operations, Turkstra Lumber. “The plan is to provide the store with a contractor view and the financial resources to

increase its performance as a hybrid.” Some changes are already in place: the store has stopped

opening on Sundays and has replaced its cash registers with service desks to enhance the customer service and grow the

contractor side of the market. Turkstra views this purchase as the first in a series of

moves that will help his company expand its geographic market. “We feel we are in a position to help the

independent. We want to expand in the Southwestern Ontario area, and are very interested in other opportunities like

this one.”

 

Cambridge Home Centre was previously a Castle dealer.

______________________________________________

 

TRUSERV DEALERS OVERWHELMINGLY ACCEPT BUYOUT PLAN

 

At the national merchandise market and annual general meeting of TruServ Canada, member dealers voted

overwhelmingly to accept a new deal to make their co-op 100% Canadian owned. Until then, the Canadian operation had been

held by Cotter Canada Hardware and Variety Co., a wholly owned subsidiary of TruServ Corp. in Chicago.

At the AGM on October 23, executives of TruServ Canada announced the successful buyout of the preferred voting

shares and other assets, including TruServ’s Winnipeg distribution centre. That involved getting member approval

for financing from an undisclosed Canadian institution to redeem, at book value, all shares of TruServ Canada owned by

the U.S. operation.

Most recently, TruServ U.S. held 85% of voting control but only 44% of the common shares. TruServ Canada members owned

the remaining 56%. Under the original deal, which closed January 31, 1992, the U.S. company had rescued the wholesale

operations of Macleod-Stedman Inc. from bankruptcy, taking ownership of almost 100% of the Canadian distributor’s

shares.

In a new deal that will last up to 10 years, TruServ Canada will continue to pay the U.S. operation a royalty fee for

use of the TruServ name. Lorna McLeod, director of finance at TruServ in Winnipeg, declined to reveal the amount of

that fee, but said it’s less than what was being paid before.

_____________________________________________

COMPANIES IN THE NEWS

Home Depot has confirmed its intention (first announced at the Hardlines Marketing Conference on September 13! –

Editor) to sell its stores in South America. The five stores in Chile will be sold back to joint-venture partner

Falabella. Four stores in Argentina will be sold to Hipermercados Jumbo, which owns Easy Homecenter. The deals

are expected to close during Home Depot’s fourth quarter, which ends January 31, 2002. The company says it intends to

focus on its acquisition of the four-store chain Total Home in Mexico, and on continued expansion in Canada and the

Caribbean.

 

The AWARD Group has moved to a new corporate head office: Suite 1030 Metropolitan Place, 99 Wyse Road, Dartmouth, NS

B4A 4S5. The phone remains the same: 902-835-7242. Premdor Inc. will change its name to Masonite International

Corp., effective January 1, 2002. The move follows the takeover on August 31, 2001 by Premdor of Masonite Corp.

from International Paper Co. Premdor’s line of exterior and interior doors will be branded “The Premdor Collection of

Premium Quality Doors Exclusively from Masonite.” Door components and related products will carry the Masonite

name. The Mississauga, ON-based company operates 70 facilities in 12 countries.

 

PPG AC Canada has relocated its central Canadian distribution centre to a new facility in Brampton, ON: 4

Kenview Boul., Brampton, ON L6T 5E4; phone: 905-790-5339; fax: 905-458-0673. The new facility will be used to service

PPG’s customers in Ontario and Québec. Hudson’s Bay Co. opened three Home Outfitters stores last

week, including its first two locations in Ottawa. The 40,000-sq.ft. stores bring the total number of Home

Outfitters locations in Canada to 17, including one store in Alberta, three stores in Québec – operating under the Deco

Decouverte name – and one store in Manitoba. Five more stores are scheduled to open across the country by the end

of the year.

 

Sears Canada has invested further in the services side of its business with the purchase of Tripeze.com Inc. The

acquisition will broaden the ability of Sears Travel to sell travel through its stores and online. The transaction was

completed for an undisclosed amount through the wholly-owned Sears Travel Service division.

As the prime rate drops down to 4.5%, department stores are getting flak for credit card charges of 28.8%. Retailers

such as Canadian Tire and Sears, which have retained credit card fees of 28% for ten and twenty years respectively, have

indicated that they have no intentions of lowering their rates. Both companies argue that the cost of running credit

card programs remains steady despite changes in the prime rate.

 

Weyerhaeuser Co. has announced a third-quarter earnings fall of 54% as the economic downturn weakened the markets for

pulp, paper and packaging. The company reported a profit of US$91 million, compared with US$199 million a year earlier.

Sales fell to US$3.7 billion from US$3.9 billion a year ago. Sears, Roebuck and Co. is shifting its strategy down-market

to more closely resemble discount chains like Wal-Mart Inc. and Target Corp. The announcement comes in the heels of

U.S.-based parent-company layoffs involving 22% of the workforce. The strategy is geared to double company profits

by end of 2004. Sears Canada will not be affected by the job cuts.

 

Black & Decker Corp. has reported a sharp drop in third-quarter earnings, with a total of US$46.2 million,

compared with US$86.3 million a year earlier. Third-quarter sales fell 6% to US$1.06 billion from US$1.13 billion.

_____________________________________________

CANADIAN STOCK WATCH

 

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.86
Canfor	16.95	7.65	8.60
Emco	7.50	2.60	5.50
Goodfellow	11.00	8.00	8.50
Home Depot	49.74	47.61	40.29
Hudson’s Bay	17.65	12.40	14.83
Lowe’s	64.90	34.25	34.75
Sears Canada	37.25	18.55	14.20
Sodisco Howden	2.80	0.75	1.12
Taiga Forest	10.00	6.80	10.00
West Fraser	36.50	21.00	31.75

______________________________________________

“The superior man understands what is right; the inferior man understands what will sell.”

– Confucius (c. 551-479 B.C.)

______________________________________________

MARKET INDICATORS

The Composite Index edged up 0.1% in August, says Statistics Canada. The housing index rose less rapidly (+0.2%)

in September than in August (+1.6%), as housing starts slowed in Ontario after vacancy rates edged up. Sales by the group

of large retailers totalled $6.9 billion in August, up 8.5% from the same month last year, according

to Statistics Canada. The largest gains were seen in the health and personal care products category, with an increase

of 14.9%. Hardware and lawn and garden products increased in sales by 10.2%.

 

September sales at department stores fell 4.5% from August totals, according to Statistics Canada. This was the second

decline in two months and the largest since the 5.6% decline of November 1999. Retail sales posted a 0.3% increase in August, offsetting a

0.3% decline the previous month, as reported by Statistics Canada. In August, retail sales in constant dollars were up

a slight 0.2% from July. For the first eight months of 2001, retail sales were 5.0% higher than during the same period of

2000.

 

The U.S. housing industry is predicting a short and shallow dip for home building sales, forecasting declines in both

new and existing home sales and housing starts for the last two quarters of 2001. But demand for housing is expected to

remain strong, based on population growth, low mortgage rates through 2002 and a low inventory of homes available

for sale.

 

The Conference Board has reported that the U.S. index of leading economic indicators fell 0.5% in September, the

largest decline since a 0.8% fall in January 1996. The research firm called this a sign the economy would likely

remain weak into next year.

* * * * * *

 

$9 billion worth of retail buying power – and it fits right in your pocket! HARDLINES WHO’S WHO DIRECTORY (2001-2002 edition)

You can tap the combined buying power of Canada’s leading home improvement retailers – for only $135. The Who’s Who

includes sales figures, product mix, executive personnel and key buyers for more than 100 hardware and home improvement

retailers, wholesalers buying groups, mass merchants and co-ops.

 

ORDER TODAY! 416-489-3396, nancy@hardlines.ca or check it out at: https://hardlines.ca/html/whos_who.html

 

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel

 

Wichmann, 416-598-3343; or colognet@idirect.com. To book

 

your flight and hotel, call Carol-Ann Itel of Trade Show

Travel: 1-877-873-7469; fax: 403-247-2448; or

 

tradeshowtravel@home.com to arrange your trip. Packages

 

include return air fare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally

famous Canada Night Reception on Sunday, March 3, 2002,

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

* * * * * *

PEOPLE ON THE MOVE

The buyout of TruServ Canada Co-operative Inc. by the Canadian membership will leave the executive team unchanged.

However, one of the people who helped bring the deal to a successful conclusion, Pierre Levesque of Sturgeon Falls

True Value in Sturgeon Falls, ON has been appointed chairman of TruServ Canada. (204-453-9511)

ProfitMaster Canada has appointed three new members to their customer support team: Ken Harwood joins as customer support

analyst … Laurie Chownyk and R-P Singh both join an implementation project managers. (204-889-5320)

 

Leading to the relocation of its distribution centre to Brampton, ON, PPG AC Canada has also redefined various

management roles. Robert Fierheller will focus on dealer development as national team leader … Brad Rossetto will

continue leading the Canadian sales and marketing team as director … Todd Bourgon has joined the company as key

account manager. He replaces Lawrence Drew, former national accounts manager … Martine Warda, who joined the company

in March, will operate as marketing and communications coordinator for the Canadian business. (905-790-5339)

______________________________________________

NOTED …

In its latest “Best of T.O.” poll, urban arts and entertainment magazine Now readers voted Canadian Tire

stores in Toronto as “Best place to meet a straight man.” Two years ago, the same poll voted Home Depot’s Stockyards

store “Best place to meet a gay man.”

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

 

https://hardlines.ca/html/classifieds_new.asp

 

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986. We ensure high profile retail presence for a wide range of

product lines. Why not make yours one of them?

www.noralmarketing.com or call 519-439-6800 ext. 201

* * * * * *

PROMOTE YOUR COMPANY BETTER

Want to communicate more effectively to your customers? Need help announcing new products, businesses or marketing

initiatives? McLARNEYCOM brings vendors and retailers the marketing tools they need to boost sales:

press releases, corporate brochures, customer newsletters, direct mail and more!

 

Contact us at 416-489-3396; buzz@hardlines.ca

 

* * * * * *

MARKETING AND COMMUNICATIONS:

You are a senior marketing professional with many years of retail and contractor experience. As a team player, you

possess strong communication, managerial and interpersonal skills. You are a very motivated, ‘hands-on’ individual who

will be responsible for developing and executing various marketing programs, including print, radio and television.

Strong organizational skills are required for overseeing the budget and critical execution paths. Experience in setting

up trade and consumer shows and special events would be an asset.

TIM-BR Mart is the national retail brand for hundreds of building centres across Canada. This Ontario management

position is dedicated to ensuring that our stores project a strong retail image in the marketplace. Your goal is to

strengthen the TIM-BR Mart brand by making the marketing decisions that provide the best value within the approved

budget.

We offer a competitive compensation package and a pleasant working environment. We thank all candidates for their

interest; however, only those candidates selected for an interview will be contacted.

Please fax your resumé, in strictest confidence, to the Executive Assistant at the private fax: 905-671-9467 or

 

e-mail to sheenaj@homecare.on.ca

 

* * * * * *

MERCHANDISER/SUPERVISOR:

MOST Marketing is looking for an experienced merchandiser/supervisor to service the Leviton line of

products for retail stores in the Toronto area market. This is a contract position. Benefits and remuneration are

based on experience. If you’re interested and a hard worker, contact Alain Carle, Merchandising and Servicing Manager,

Leviton Manufacturing Canada; 1-800-461-2002 ext. 467; e-mail: acarle@leviton.com. Suitable candidates must have a

 

car, and must be available to travel.

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to industry eyes. Over 3,000 executives in the industry come in contact with

our email and fax publications …

… and have you seen our Marketplace in our new website?

 

https://hardlines.ca/html/classifieds_new.asp

 

Publish your ad where it matters. Get industry exposure today.

 

Contact us at 416-489-3396 or email: buzz@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

(c) 2001 by Michael McLarney.

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

 

Michael McLarney, Editor & Publisher: mike@hardlines.ca

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

 

______________________________________________

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Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please,

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your internal routing from this end!

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