Feb25_02

“When you’re a little kid, you have no idea how much your parents love you.”
– Jeff Bezos (founder and CEO of amazon.com)

vol. viii, #8 February 25, 2002

* Rona on hiring spree in Ontario, Réno-Dépôt lets 69 go
* TruServ announces new executive team
* High end and high tech get spotlight in Atlanta
* V&S developed for smaller stores
* Retail sales strong in 2001
* Wal-Mart accused of union-busting

COLOGNE TRADE SHOW

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

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

RONA GOES ON HIRING BLITZ,
RÉNO-DÉPÔT TRIMS STORE MANAGEMENT

Rona Inc. went on a hiring spree last Thursday with an “open house day” in search of 400 people to work at five Rona Home & Garden and eight Rona Lansing stores in the Greater Toronto Area. Jobs being recruited included clerks, cashiers, delivery and sales people.

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

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

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

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

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

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

TRUSERV PUSHES NEW, SMALLER V&S BANNER

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

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

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

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

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

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

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

CONCRETE, STEEL STUDS ATTRACT ATTENTION
AT BUILDERS SHOW

Non-traditional building techniques for houses, combined with high-end luxury amenities to put inside those houses, exemplify some of the trends at this year’s International Builders Show. More expensive, but more permanent systems are gaining favour.

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

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

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

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	28.20	18.50	24.05
Canfor	12.60	8.08	9.59
Emco	790	3.35	8.10
Goodfellow	10.00	8.00	10.00
Home Depot	53.73	30.30	51.00
Hudson’s Bay	20.10	12.50	13.93
Lowe’s Cos.	48.88	24.99	46.05
Sears Canada	26.50	12.50	18.71
Sodisco-Howden	2.63	0.75	1.61
Taiga Forest	11.05	6.80	10.27
West Fraser	42.50	28.75	43.00

PEOPLE ON THE MOVE

Léo Charrière has been named president of TruServ Canada Co-operative Inc. A veteran of the company going back to the Macleod-Stedman days, he was most recently COO, in charge of the company since the retirement of president and CEO David Grubbe just over a year ago … Joining Charrière to form the new executive team are: Terry Derraugh, vice-president, merchandising/distribution. He was formerly director, merchandising/distribution … Ray Falkenberg, who has been promoted from director of business development/marketing to vice-president, business development/marketing … and Lorna McLeod, who has been promoted from director of finance to vice-president, finance … The TruServ Canada executive team is rounded out by Gerry Mauthe, who was appointed director, information technology in December 2001 and Catherine Gamby, director, human resources. (204-453-9511)

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

COMPANIES IN THE NEWS

Sodisco-Howden Group Inc. has completed its previously announced acquisition of the hardware and building materials assets of Marchands Unis Inc. The 150 Marchands Unis dealers affected by the purchase will continue to operate under their own banners – Bâtitout, Ferplus Quincaillerie and Jardirêve. In conjunction with the deal, Sodisco-Howden has secured new financing with Congress Financial Corp. (Canada) for a $55 million credit facility.

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

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

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

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

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

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

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

MARKET INDICATORS

Retail sales in Canada gained by 4.5% in 2001, from $277.0 billion in 2000 to $289.5 billion, says Statistics Canada. Greatest gains were in furniture (+7.9%), due to cocooning, and drug (+7.2%) due to higher medicine prices. December sales reached $25.0 billion, up 1.6% from November. This follows sales increases of 1.3% in November and 2.1% in October.

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

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

INDUSTRY NEWS. EVERY DAY

DAILY UPDATES ON RETAIL AND INDUSTRY NEWS THAT MATTER TO YOU. KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

EASTERN REGIONAL MANAGER:
Canadian In-Store Merchandising has an opening for the position of Eastern Regional Manager. The successful candidate, based out of our Mississauga Head Office, will be responsible for execution of daily activities such as merchandising, training, remodels, resets, and scheduling for the Ontario, Quebec and the Maritimes regions. A strong background in sales would be beneficial. Reporting to the National Operations Manager, this fast paced, challenging position will require a highly organized individual, who is exceptional at prioritizing in an ever changing environment. Computer skills, with a focus on excel spreadsheets, is a must. A rewarding compensation package including benefits and a car allowance will be based on experience. Please direct all resumés to the attention of Tim Surbey, 21789 Donovan Avenue, Maple Ridge, BC, V2X 3A6 or by email to tsurbey@shaw.ca

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DISTRIBUTORSHIP AVAILABLE:
Established exclusive distributorship in South Western Ontario. Exchange-A-Blade Ltd. is expanding. If you are interested in being your own boss and earning above average income, we have over 25 years of successful, proven distributorships across Canada and the U.S.A. Calling on retail box stores, lumber yards and hardware stores, you will use your selling and service skills to supply our unique products.

You should have a minimum of $50,000 unencumbered to invest. Please contact Gerry Lees at 705-526-2160. Visit our Website at www.exchangeablade.com.
(110302)

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ACCOUNT MANAGER AND SALES MANAGER/SALES EXECUTIVE:
Maxtech Manufacturing is one of the fastest growing designers, manufacturers and distributors of hand & power tool accessories. We are looking for an Account Manager and a Sales Manager/Sales Executive to grow our expanding Canadian & U.S. customer base and market share. Maxtech is an innovation leader that owns 28 U.S. utility patents with many more pending. We offer a dynamic work environment, a solid customer base and innovative product lines to sell that are unique to any other products available in the market today.

The ideal candidate will have experience in the hardware/home improvement market, ability to travel, highly motivated and proven sales abilities.

If you are interested, please forward your cover letter and resumé to Greg Schlosser:
gregs@maxtech-mfg.com or fax: 519-885-6066.
(040302)

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NATIONAL ACCOUNTS MANAGER
Are you an up and comer with major account management experience? If so, this premiere opportunity will be of interest to you. Our Client, a well known and well positioned category leader (Rona’s Vendor Of The Year for 2001 in their category) just finished another year of stellar performance and due to an internal promotion, needs to add a high performer to their accomplished team.

You’ll hold responsibility for defending your brand position and supervising a merchandising sales team for Rona and Home Depot while being the “corporate face” of the company to these high-level Retailers. Challenges include growing the current business while adding to your market share with new products and innovative programs. Looking for an employer who continually demonstrates a commitment to improving Customer satisfaction and employee development? To explore this Toronto-based opportunity in complete confidence, please contact Wolf Gugler, quoting file #C-02.

Wolf Gugler & Associates Limited, 300-1370 Don Mills Road, North York, Ontario M3B 3N7 Telephone: 416-386-1719 Email: admin@wolfgugler.com

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NORAL INSTORE:
Don’t leave your products’ display management to chance!
Let Noral Instore take care of your instore merchandising.
Visit http://www.noralmarketing.com
or call 519-439-6800 ext. 201

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Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
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© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
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Feb18_02

“As long as you are honest and up front with me, I will be the same with you.
But I still do things my way.”
– Waylon Jennings (country music giant, who passed away last Wednesday)

vol. viii, #7 February 18, 2002

* Réno-Dépôt leads international growth of Castorama
* Castle grows Western presence
* Home improvement means big credit card spending
* CBS gets first members
* Sexton expands private label for members

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CANADIAN DIVISION LEADS CASTORAMA’S STRONG YEAR END

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

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

Réno-Dépôt was bought by Castorama in Spring 1997.

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

CASTLE’S COMMERCIAL DIVISION SIGNS FIRST MEMBERS

Commercial Builders Supplies Inc., which was launched January 1, 2002 as a commercial division of Castle Building Centres Group, has signed its first two members.

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

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

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

ELECTRONIC TRANSACTIONS TRACK
HEALTHY GROWTH OF DIY MARKET

Debit and credit card spending in home improvement retailing was up 10% in the fourth quarter of 2001 over 2000. In addition, this category was far ahead of general retail spending averages – both in volumes and average dollars spent per purchase.

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

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

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

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

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

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	28.20	18.50	24.30
Canfor	12.60	8.08	9.94
Emco	7.85	3.35	7.30
Goodfellow	9.69	8.00	9.60
Home Depot	53.73	30.30	50.52
Hudson’s Bay	20.10	12.50	14.29
Lowe’s Cos.	48.88	24.99	45.60
Sears Canada	26.75	12.50	17.70
Sodisco-Howden	2.65	0.75	1.50
Taiga Forest	11.05	6.80	10.80
West Fraser	42.50	28.75	41.70

NOTED

Jello Biafra, former lead singer of the rock band The Dead Kennedys, has emerged as an unlikely poster boy for independent business owners. Speaking to a CBC Radio reporter last week, he suggested that consumers could create a saner world by avoiding making purchases from big box stores and supporting local retailers instead.

HARDLINES BREAKFAST A SUCCESS

The latest Hardlines Breakfast was a great success, with almost 200 people crammed into that little room (we’ll have to get a bigger room next year!) Thanks to you, our subscribers, and the following sponsors for making it a success!
-Michael, Beverly and Nancy
COLOGNE INTERNATIONAL TRADE SHOWS
JDA SOFTWARE CANADA LTD.
TRANS CANADA RETAIL SERVICES
STERLING COMMERCE
NEWS MARKETING CANADA
BLACK EAGLE CONSULTING
CANADIAN HARDWARE AND BUILDING MATERIALS SHOW
DIMENSIONS RETAIL SYSTEMS/SILK
HARDWARE MERCHANDISING/CONTRACTOR CONNECTION
NESBITT BURNS, PRIVATE CLIENT DIVISION
COLLETT DESIGNS INC.
NORAL INSTORE
PROFORMA
WOLF GUGLER & ASSOCIATES

COMPANIES IN THE NEWS

At its recent annual meeting, Sexton Group introduced some new product lines to its private label Builders Choice brand, including paint sundries, steel entrance doors and Citation vinyl siding. Also introduced: interior POP and exterior signage materials and new Builders Choice credit card promotions.

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

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

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

MARKET INDICATORS

Housing starts in January were up an amazing 17.3%, says CMHC. Seasonally adjusted starts grew to 204,300 units from 174,100 units in December. Urban singles were up 4.0% to an annual rate of 89,100 units from 85,700 in December, while urban multiple starts jumped 39.4% to an annual rate of 95,200 units from 68,300. Estimated rural starts slipped 0.5% to a seasonally adjusted annual rate of 20,000 units.

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

PEOPLE ON THE MOVE

Brian P. Bailley has recently been appointed director of sales for Canpar Industries, a leading producer of particleboard doorcore. Formerly with Georgia-Pacific and Domtar in sales and marketing roles in Canada and the U.S., Bailley will move to Grand Forks, BC to join the senior management team and head the sales operations. (250-442-5521)

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

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

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

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

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

INDUSTRY NEWS. EVERY DAY

DAILY UPDATES ON RETAIL AND INDUSTRY NEWS THAT MATTER TO YOU. KEEP INFORMED.
VISIT hardlines.ca – EVERY DAY!

****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

ACCOUNT MANAGER AND SALES MANAGER/SALES EXECUTIVE:
Maxtech Manufacturing is one of the fastest growing designers, manufacturers and distributors of hand & power tool accessories. We are looking for an Account Manager and a Sales Manager/Sales Executive to grow our expanding Canadian & U.S. customer base and market share. Maxtech is an innovation leader that owns 28 U.S. utility patents with many more pending. We offer a dynamic work environment, a solid customer base and innovative product lines to sell that are unique to any other products available in the market today.

The ideal candidate will have experience in the hardware/home improvement market, ability to travel, highly motivated and proven sales abilities.

If you are interested, please forward your cover letter and resumé to Greg Schlosser:
gregs@maxtech-mfg.com or fax: 519-885-6066.
(040302)

Wolf Gugler & Associates Limited, 300-1370 Don Mills Road, North York, Ontario M3B 3N7 Telephone: 416-386-1719 Email: admin@wolfgugler.com

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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.
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Boy, have I been getting a lot of queries about Cologne! If you’re thinking of going, this is definitely the year to go. All the big guys will be exhibiting. For information about the Cologne International Hardware Fair/DIY’TEC, March 3-6, 2002, contact:
Edel Wichmann, 416-598-3343; colognet@idirect.com. To book your flight and hotel, contact Carol-Ann Itel at 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!

Feb11_02

“There is sufficiency in the world for man’s need but not for man’s greed.”
– Mahatma Gandhi (1869-1948)

vol. viii, #6 February 11, 2002

* Smaller Hardware Show still valuable
* Buyers look for hidden gems at CHS
* Canadian Tire shows strong results for 2001
* Home Hardware expands credit card perks
* Stephen Lewis moves audience at Show

HARDLINES BREAKFAST

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

DEALER ATTENDANCE UP DESPITE DROP
IN EXHIBITORS AT CANADIAN HARDWARE SHOW

The most striking thing about this year’s Canadian Hardware and Building Materials Show was its size: it was distinctly smaller – by almost a fifth. A lot of U.S. companies are still facing no-fly mandates, especially internationally, cutting their presence on the show floor exactly in half. The result: some 500 companies were represented in just over 1,000 booths at Toronto’s National Trade Centre last week, compared with more than 600 exhibiting firms last year.

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

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

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

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

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

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

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

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

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

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

WITH BIG GUYS GONE,
INNOVATIONS EASIER TO FIND AT CHS

A number of key buyers made clear what they were looking for at last week’s Canadian Hardware and Building Materials Show: innovative new products.

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

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

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

IN MEMORIAM

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

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

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

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	28.20	18.50	24.75
Canfor	12.60	8.08	9.62
Emco	7.50	3.35	7.10
Goodfellow	9.50	8.00	9.25
Home Depot	53.73	30.30	49.70
Hudson’s Bay	20.10	12.50	14.63
Lowe’s Cos.	48.88	24.78	45.20
Sears Canada	26.95	12.50	19.45
Sodisco-Howden	2.75	0.75	1.40
Taiga Forest	11.05	6.80	10.90
West Fraser	42.25	27.00	41.75

COMPANIES IN THE NEWS

Home Hardware Stores Ltd. is enhancing its customer loyalty program. Beginning March 1, Homecard credit card holders will be automatically enrolled in the Home’s Advantage program. With every $25 in purchases on the card, customers get entered automatically in a bi-monthly draw to win vacations, merchandise, gift certificates and special offers.

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

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

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

MARKET INDICATORS

Stats Canada has released preliminary numbers on building permits: building intentions in 2001 were up 8.1% as the value of building permits reached $39.9 billion. Non-residential intentions were up 7.1% to $17.8 billion. Residential building permits were up 8.9%, reaching a total of $22.2 billion. More than 70% of residential intentions are made up of single-family starts, which were up 8.2% to $16.0 billion.

PEOPLE ON THE MOVE

Randy Aikens has joined Rona Ontario Inc. as new director of operations for Rona Home and Garden in Ontario. Formerly manager of Revy’s Edmonton West store, he replaces Keith Hustler, who left the company to return to Vancouver. (416-241-8844)

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

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

CORRECTION:

Last week’s report on wholesalers’ sales should have specified PHCP wholesalers.

OVERHEARD

“Take care of the employees and they’ll take care of the business.”
– Mark Healy, owner of the Oakville Canadian Tire and winner of Hardware Merchandising’s Outstanding Retailer Award for stores over 50,000 sq.ft. He offered this during his acceptance speech at last week’s CHS.

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

CANADIAN TIRE ENDS YEAR WITH
7% SALES GROWTH

Canadian Tire Corp.’s total retail sales for 2001 were $5.3 billion, a 6.9% increase over 2000. Same-store sales increased 2.2%. Consolidated net earnings were up 19.3% to $176.7 million, from $148.0 million. Those earnings benefitted from some extraordinary events, namely $15.4 million from the sale of credit charge receivables, $8.0 million from the sale of Hamilton Discount and $11.8 million from the sale of real estate to a U.S. investor. Negative impacts on earnings included $10.5 million spent last year on CTC’s website, which is not expected to break even until 2002 and a 4Q hit for the purchase of Mark’s Work Wearhouse. CTC also incurred $10.9 million in product clearance costs for Christmas lights and $4.0 million in restructuring costs.

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

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

STEPHEN LEWIS MOVES AUDIENCE AT CHS

The few dozen attendees who braved inclement weather last Monday morning to listen to Stephen Lewis at the Canadian Hardware and Building Materials Show probably weren’t surprised by the rhetorical skills of the former federal NDP leader – they’re legendary.

What they may not have expected was that Lewis vigorously questioned the ability of multinational corporations and the captains of globalization to cope with the complex socio-political issues that will affect North American society and business in the new century.

Lewis, who is currently special envoy to Africa for the United Nations, also spoke movingly about his efforts to fight the epidemic of HIV/AIDS in that country. Audience reaction was mixed. Several attendees were left shaking their heads; others blanched when Lewis suggested that if the current epidemic continues unabated, Africa will be home to 40 million orphans by 2010. And while he commended the hardware industry for its involvement in such programs as Habitat for Humanity, he urged its members to continue to look for ways to contribute to growth and stability in the developing world.

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!

****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

NATIONAL ACCOUNTS MANAGER
Are you an up and comer with major account management experience? If so, this premiere opportunity will be of interest to you. Our Client, a well known and well positioned category leader (Rona’s Vendor Of The Year for 2001 in their category) just finished another year of stellar performance and due to an internal promotion, needs to add a high performer to their accomplished team.

Wolf Gugler & Associates Limited, 300-1370 Don Mills Road, North York, Ontario M3B 3N7 Telephone: 416-386-1719 Email: admin@wolfgugler.com

CANWEL DISTRIBUTION ENHANCES SERVICE TO OTTAWA VALLEY

Lumber and Building supply dealers are excited over CanWel’s recent announcement that February 1, 2002 is the official date they will be servicing the Ottawa Valley from their distribution facility in Brampton Ontario.

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

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

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NATIONAL ACCOUNT MANAGER:
Due to increased growth, The MIBRO Group, a leading North American supplier of Power Tool Accessories, Chain, Chain Accessories, Hand Tools & Lawn and Garden products, is adding to its growing sales team.

The National Account Manager will be responsible for the sales and overall customer service of selected major accounts in both Canada and the United States.

The ideal candidate will have a proven track record of sales, a personable approach to selling, high self-motivation, a competitive nature, and the ability to work in a team environment. Computer skills including the use of Excel, ability to travel, strong business writing capabilities, and knowledge of hardware products and the marketplace are essential.

We offer a competitive compensation and benefits package. If you are interested in exploring this opportunity, and working in a high energy fast growing company, forward your resumé to esmith@mibro.com or via confidential fax to (416) 285-9623.

* * * * * ***************************************************************************
NORAL INSTORE:
Don’t leave your products’ display management to chance!
Let Noral Instore take care of your instore merchandising.
Visit http://www.noralmarketing.com
or call 519-439-6800 ext. 201

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

Feb4_02

“Don’t be afraid to take a big step. You can’t cross a chasm in two small jumps.”
– David Lloyd George (British statesman and prime minister, 1863-1945)

vol. viii, #5 February 4, 2002

* TSC commits to expansion, new hardware format
* Rona, Masonite garner Newsmaker award
* AWARD group signs service deal with Dimensions
* Peavey focuses on retrofits
* Canadian Tire dealer auctions Gardens Zamboni
* Pilozzi named CEO of Wal-Mart Canada

THE RETAIL SERVICES SHOWCASE at CHS

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

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

NEW-LOOK TSC PLANS THREE SPRING OPENINGS

Like a lot of regional retailers, TSC Stores Ltd. has made the commitment to grow the business. The Central Ontario hardware chain will open its nineteenth store on March 1, this one in Peterborough.

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

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

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

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

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

RONA, PREMDOR NAMED
NEWSMAKERS OF THE YEAR

Last year’s takeover of Revelstoke Home Centres by Rona Inc. was one of the biggest single deals in the history of Canadian home improvement retailing. The buyout created a network of 539 stores with approximately $2.8 billion in retail sales.

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

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

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

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

STABLE PRICES HELP TAIGA’S 3Q PROFITS

Earnings rose dramatically for Taiga Forest Products Ltd. in its the third quarter ended December 31, 2001. While sales were up slightly, to $182.2 million from $171.3 million, profits jumped from $40,000 during the same period in the previous year to $1.8 million.

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

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	28.20	18.50	25.00
Canfor	12.60	8.08	10.06
Emco	7.50	3.35	684
Goodfellow	14.20	8.00	9.11
Home Depot	53.73	30.30	49.12
Hudson’s Bay	20.10	12.50	15.15
Lowe’s Cos.	48.88	24.78	45.99
Sears Canada	26.95	12.50	19.05
Sodisco-Howden	2.79	0.75	1.65
Taiga Forest	11.00	6.80	11.00
West Fraser	40.00	27.00	41.00

COMPANIES IN THE NEWS

Dimensions Retail Systems has entered into an agreement with the Atlantic buying group AWARD to provide integrated rebate computer support for its head office. Much of the system’s functionality is provided by Dimensions’ parent company, Silk Systems. Dimensions was purchased by Silk Systems in October 2001 and this is their first joint sale.

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

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

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

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

MARKET INDICATORS

Annual department store sales in 2001 reached $19.8 billion, says Statistics Canada, an increase of 7.9% from 2000. The growth was accompanied by a 1.8% increase in the number of stores, from 719 in 2000 to 732 in 2001.

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

PEOPLE ON THE MOVE

Mario Pilozzi has been named CEO of Wal-Mart Canada. The 34-year retail veteran joined the company in 1994, and was most recently president and COO. Wal-Mart now has almost 200 stores in Canada. (905-821-2111) Tony DiEmanuele has been named director of marketing and business development for the Retail Division of Growmark Inc. He was formerly director of merchandising. He reports to Jim Hoyt, executive director of Canadian operations. (905-826-0200)

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

OVERHEARD

“They offer a competitive program and seem to be progressive in the style of how they negotiate.”
– Don Neufeld, president of J&H Builders Warehouse, on his decision to join the ILDC buying group.

CANADIAN TIRE DEALER AUCTIONS OFF MAPLE LEAF GARDENS ZAMBONI

As an avid Toronto Maple Leafs fan, Mark Healy probably thought he’d died and gone to hockey heaven when he purchased the last Zamboni used for the home team at Maple Leaf Gardens (and signed by Paul Henderson!). Since purchasing the vehicle in November, 2000 Healy has given it a place of honour at his Canadian Tire store in Oakville, ON and has loaned it out for several local parades.

Healy also had plans to use the Zamboni at an outdoor public rink at one end of the store’s parking lot. But when local red tape iced that idea, he decided it was time to unload the historic vehicle. The Zamboni has gone up for auction on eBay, and by the end of last week some well-healed hockey enthusiast had bid US$26,500 (CDN$42,161). Besides its sentimental value, it’s in great shape, Healy said in a CBC Radio interview last week.

He’d like the Zamboni to go to a fellow Leafs fan in the area. “I think it would be good luck for the Leafs to have it close by – it might help them win the Stanley Cup.

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!

****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

Wolf Gugler & Associates Limited, 300-1370 Don Mills Road, North York, Ontario M3B 3N7 Telephone: 416-386-1719 Email: admin@wolfgugler.com

CANWEL DISTRIBUTION ENHANCES SERVICE TO OTTAWA VALLEY

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

BUSINESS OPPORTUNITY:
Quality Craft is Looking for People to Start New Divisions. We are a well-established importer with offices in Canada, The U.S. and Europe. We specialize in supplying high volume Asian made products to discount, department and DIY retailers.

We are looking for highly motivated people to start new divisions. If you have experience selling to mass merchants in Canada and have good product category knowledge in almost any field, we would like to talk to you about starting a new division on a profit sharing basis. We are particularly interested in lighting, seasonal, hardware, lock sets and furniture.

For more information, call: John Brice, 1-800-663-2252 or email:jbrice@qualitycraft.com Confidentiality assured.

The National Account Manager will be responsible for the sales and overall customer service of selected major accounts in both Canada and the United States.

We offer a competitive compensation and benefits package. If you are interested in exploring this opportunity, and working in a high energy fast growing company, please visit our booth at The Canadian Hardware Show or forward your resumé to esmith@mibro.com or via confidential fax to (416) 285-9623.

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

CATEGORY MANAGER:
Located in Calgary, we are a progressive and dynamic agricultural cooperative seeking a Hardlines Category Manager with a proven track record of 5 years in the Category Management discipline. If you are a goal-oriented team leader who is committed and passionate in achieving results, you should apply no later than February 8, 2002 to:

Human Resources
United Farmers
1016-68 Ave. SW
Calgary, AB. Canada
T2V 4J2
Fax: (403) 258-7630
E- Mail: resumes@ufa.com
* * * * * ******************************************************************
CALLING ALL EMPLOYERS!
Wolf Gugler & Associates Limited, the undisputed leader in executive search and management appraisals for home improvement Retailers and their Suppliers and a proud Sponsor of the Hardlines Breakfast Sunday February 3, will be participating in the new Retail Services Showcase at CHS ’02. You’ll find us in Room 103 on Sunday from 8 a.m. until noon. Please stop by to confidentially discuss your proposed recruitment requirements with Wolf Gugler in person, or to arrange a convenient alternative time. You can also contact us prior to the show at 800-830-1090, or via email: wolf@wolfgugler.com to meet you at your booth during the show.

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

* * * * * ***************************************************************************
KEY SALES AND MARKETING POSITIONS:
As an international manufacturer and distributor of bath/shower organizational products and pioneers of the original award-winning shower organizer The Dispenser, Better Living Products is looking for key people to join our growing North American sales and marketing team.

The following are immediate opportunities:

National Sales Manager – Canada
Sales & Marketing Co-ordinator – U.S.A
Key Account Executive – U.S.A/Canada
Territory Account Manager, Secondary Markets – U.S.A/Canada
Inside Sales/Telemarketing Representative – U.S.A.

All positions will be located at our world-wide headquarters in Woodbridge, Ontario. For further information, please forward resume indicating the position being applied for to:
Camillo Caperchione, Vice President Sales & Marketing, Better Living Products, 201 Chrislea Rd., Vaughan Ont. L4L 8N6. Tel: 905-264-7100, Fax: 905-264-3690. Or email to camillo@dispenser.com

(040202)

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

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

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 at 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!

Jan28_02

“Hire people who will treat the switchboard operator as friendly as they’ll treat the managing director.”
– Richard Branson

vol. viii, #4 January 28, 2002

* Peterson leaves Home Depot Canada
* Canac-Marquis expands hardware store format
* Weyerhaeuser seals deal with Willamette
* Saskatoon show generates big sales
* Wal-Mart now biggest company in the world

INTRODUCING THE RETAIL SERVICES SHOWCASE

Hardlines is pleased to announce a new forum for service companies, which target suppliers and retailers in hardware/home improvement. These companies will be participating – check them out!

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

If you want your company to be part of this exciting new Showcase, contact Beverly Allen: 416-489-3396, bev@hardlines.ca

CANAC-MARQUIS GRENIER EXPANDS
SUCCESSFUL HARDWARE FORMAT

A new store scheduled for Victoriaville, QC marks the first outside the Québec City region for Canac-Marquis Grenier – and its second store to sell just hardware.

Canac-Marquis Grenier, an ILDC member with 11 stores and $100 million in retail sales, has had great success selling to a mix of DIY and trade customers. That success has been reflected in its growth – three new stores since 1998. But the most profitable of the three has been the 16,000-sq.ft. location that opened last year in Sainte-Foy – which doesn’t carry building materials.

Guy Bedard, general manager of Canac-Marquis Grenier, says the 26,000-sq.ft. store in Victoriaville will follow suit. “This is the first time Canac-Marquis Grenier is going outside of the Québec City region,” he says, noting the difficulty of finding a good site that will allow a lumber yard anywhere except on the outskirts of town. “It’s so hard to attract people to a store like that.”

The other challenge is shipping. Building materials shipped from Canac-Marquis Grenier’s distribution centre in Québec City will incur added costs and cut into margins. Given the success of the Sainte-Foy store, the hardware-only model is a good solution, says Bedard. “We’ll be the ‘big box’ in Victoriaville for hardware. We think we’ll do well.” The store is expected to open by the end of March.

Canac-Marquis Grenier intends to keep growing, with stores planned for Beauceville, Rimouski, or even the north shore across from Victoriaville. However, Bedard says the company has no plans to enter the competitive Montréal market.

HOME DEPOT CANADA VP HEADS FOR ATLANTA

Eric Peterson has left his position as vice-president merchandising for Home Depot Canada to join the newly formed Southeast division in Atlanta. He will act as regional vice-president of operations for the division, which will serve the U.S. Southeast and the Caribbean. An eight-year veteran of the company, Peterson joined the Toronto office two years ago as right-hand to Annette Verschuren, president. His influence is regarded by many observers as having helped tie the Canadian division more closely to Atlanta. His merchandising skills were respected by vendors and competitors alike and his role within the Canadian division was considered a significant one. In fact, when both he and Verschuren spoke at the Hardlines Marketing Conference in 2000, she signified his importance by referring to him as her “partner” in the operation of the business.

No replacement has been named for Peterson in Toronto as yet.

PRAIRIE SHOWCASE GARNERS
KUDOS FOR HEAVY BUYING ACTIVITY

At the Prairie Showcase held last week in Saskatoon, SK, vendors enjoyed strong sales and dealers expressed a buoyant mood, reflecting the event’s success as a buying show.

And, even though attendance was down slightly over last year, overall sales generated by the event were up. “I’ve never heard such excitement on the show floor before,” says Judy Huston, executive director of the Western Retail Lumber Association, which put on the event. “Exhibitors were saying it’s better than last year.” In fact, for some vendors, it was their best buying show in many years, with dealers lined up at 8 a.m. on opening day, waiting for the doors to open.

The show benefited from the support of regional buying groups, including Tim-BR-Marts, Sexton Group and Castle Building Centres, which all held dealer meetings in conjunction with the show.

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	28.20	18.50	24.70
Canfor	12.60	8.08	9.47
Emco	7.50	3.35	6.70
Goodfellow	14.20	8.00	9.26
Home Depot	53.73	30.30	47.00
Hudson’s Bay	20.10	12.50	14.66
Lowe’s Cos.	48.88	21.33	44.70
Sears Canada	26.95	12.50	17.70
Sodisco-Howden	2.80	0.75	1.43
Taiga Forest	10.80	6.80	9.80
West Fraser	60.35	22.71	39.95

COMPANIES IN THE NEWS

J&H Builder’s Warehouse, Saskatoon, SK, has joined Independent Lumber Dealers Association. The former Tim-BR-Mart member follows on the heels of McMunn & Yates, which joined ILDC before Christmas.

Despite 7% growth in its last quarter, sales by Matco Ravary for the year ended October 31, 2001 were down 2.4% to $58.8 million, compared with $60.2 million the previous year. The company blamed the shortfall in part on weak LBM prices.

Weyerhaeuser has finally succeeded in its bitter takeover battle for Willamette Industries Inc., paying US$5.50 a share, totalling about US$6.1 billion. Willamette’s board was holding out in an effort to merge with Georgia Pacific. The deal is not expected to have any immediate impact on Weyerhaeuser’s Canadian operations.

Master Lock Co. has appointed Action Marketing to handle its commercial sales and marketing in Québec. Celca Marketing will manage all other retail accounts and store servicing in Québec. McCullough Sales will provide store servicing and manage all sales and marketing for retail accounts in Ontario.

International Forest Products suffered a $1.9 million loss in its fourth quarter, down from a profit of $7.6 million in the same period a year earlier. Results reflect a provision made for duties from the U.S. Overall, Interfor’s sales revenue declined to $175 million in the 4th quarter from $193 million in the 3rd quarter.

Poor holiday sales and tough competition from Wal-Mart and Target have driven Kmart to file for bankruptcy protection. Strapped for cash, with its credit rating plummeting, the company says its 2,100 stores will remain open during restructuring.

With US$220 billion in sales in 2001, Wal-Mart has pulled ahead of Exxon Mobil Corp. as the largest company in the world, according to Fortune magazine. With 1,165 stores from Argentina to South Korea, it’s also truly global.

MARKET INDICATORS

Expect near-zero growth in Canada’s construction industry for the year ahead, says the Canadian Construction Association. Construction will grow from $46.8 billion in 2001 to $47.9 billion, says CCA, but mostly due to inflation, not real growth. Commercial construction is expected to dip 0.8% in 2002. However, residential housing is expected to rise by 1.2%.Retail sales grew again in November, this time by 1.4% to $24.6 billion. This follows a 1.8% increase in October. November’s increase was due largely to incentive-driven sales by auto dealers. Not counting auto sales, retail sales fell 0.6% in November. In constant dollars, retail sales advanced 2.1% in November after a similar gain in October (+2.4%).

Consumers paid only 0.7% more for goods and services in Canada in December 2001 than they did in December 2000. Lower energy prices kept the consumer price index down. Excluding energy, the CPI was up 2.0%.

OVERHEARD

PEOPLE ON THE MOVE

After 10 years as executive director of the Western Retail Lumber Association, Judy Huston has announced her retirement effective March 2003. Under her aegis, the association grew tremendously and launched a successful regional trade show, despite the scepticism at the time of the editor of one national trade magazine (oh, don’t tell me, let me guess – MM). The WRLA board will begin their search for a replacement by next Fall. (204-957-1077)Stan Burkholder, co-owner of Burkholder Building Supply in Fairview, AB, has been named the new president of the Western Retail Lumber Association. He replaces Merv Weiss of Nor-Sask Investments Ltd. (204-957-1077)

Mark Flor, formerly director of merchandising and marketing for Ace Hardware Canada, has joined Nesbitt Burns, private client division, as an investment advisor. (416-359-7649) (He’ll also be joining us as an exhibitor at our Retail Services Showcase during the Hardlines Show Breakfast on February 3!)

Debbie Lambert has been appointed vice-president of sales and marketing at Outdoor Inspirations. She was formerly national sales manager at Colorite Swan … Lambert joins Trent Coleman, who is president of the new company. He was formerly lead category manager for lawn & garden at Canadian Tire Corp. (905-852-9930)

A number of appointments have been made at Master Lock Co.: John Collins, retail sales manager, will now hold responsibility for all regional sales activities across Canada and continue to manage national retail accounts … Andrew deBogyay has been promoted to retail accounts executive based in Québec … Kimberley Underhay has been promoted to retail accounts executive based in Ontario … Steve Burgess has been promoted to director of marketing & new business development … Kevin Draper has been appointed commercial sales manager for the Locker Lock business. (800-227-9599)

Coleman Powermate in the U.S. has appointed Cindy Malin vice-president of business development – home centres. She will be responsible for strengthening the company’s relationship with the likes of Home Depot, Lowe’s, Menard’s, Northern Tool and Fingerhut. She was most recently vice-president sales for Coleman’s Outdoor Leisure Products group.

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!

****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

CANWEL DISTRIBUTION ENHANCES SERVICE TO OTTAWA VALLEY

Lumber and Building supply dealers are excited over CanWel’s recent announcement that February 1, 2002 is the official date they will be servicing the Ottawa Valley from their distribution facility in Brampton Ontario.

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

BUSINESS OPPORTUNITY:
Quality Craft is Looking for People to Start New Divisions. We are a well-established importer with offices in Canada, The U.S. and Europe. We specialize in supplying high volume Asian made products to discount, department and DIY retailers.

For more information, call: John Brice, 1-800-663-2252 or email:jbrice@qualitycraft.com Confidentiality assured.
***********************************************************************************
NATIONAL ACCOUNT MANAGER:
Due to increased growth, The MIBRO Group, a leading North American supplier of Power Tool Accessories, Chain, Chain Accessories, Hand Tools & Lawn and Garden products, is adding to its growing sales team.

The National Account Manager will be responsible for the sales and overall customer service of selected major accounts in both Canada and the United States.

We offer a competitive compensation and benefits package. If you are interested in exploring this opportunity, and working in a high energy fast growing company, please visit our booth at The Canadian Hardware Show or forward your resumé to esmith@mibro.com or via confidential fax to (416) 285-9623.
***********************************************************************************

Human Resources
United Farmers
1016-68 Ave. SW
Calgary, AB. Canada
T2V 4J2
Fax: (403) 258-7630
E- Mail: resumes@ufa.com
* * * * * ******************************************************************
CALLING ALL EMPLOYERS!
Wolf Gugler & Associates Limited, the undisputed leader in executive search and management appraisals for home improvement Retailers and their Suppliers and a proud Sponsor of the Hardlines Breakfast Sunday February 3, will be participating in the new Retail Services Showcase at CHS ’02. You’ll find us in Room 103 on Sunday from 8 a.m. until noon. Please stop by to confidentially discuss your proposed recruitment requirements with Wolf Gugler in person, or to arrange a convenient alternative time. You can also contact us prior to the show at 800-830-1090, or via email: wolf@wolfgugler.com to meet you at your booth during the show.

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

Jan21_02

“Look out for the fellow who lets you do all the talking.”
– Frank McKinney (American humorist, 1868-1930)

vol. viii, #3 January 21, 2002

* Women prefer local hardware store, Canadian Tire
* Smaller sites force boxes into smaller stores
* Home Depot cuts one division in the U.S.
* Lee Valley Tools will open 10th store
* Wholesale trade up slightly in November

INTRODUCING THE RETAIL SERVICES SHOWCASE

Hardlines is pleased to announce a new forum for service companies that target suppliers and retailers in hardware/home improvement. These companies can help you run your business better – whether it’s logistics, EDI, HR, printing services, instore merchandising, etc., etc. The Retail Services Showcase will run during our Show Breakfast on Sunday, February 3, 2002 in Room 103, starting at 8 a.m. and stay open right up until noon that day.

The Retail Services Showcase is going to be an amazing value-added for our sponsors – and a great addition for our guests to get the most out of the Show. If you want your company to be part of this exciting new Showcase, just contact Bev Allen: 416-489-3396, bev@hardlines.ca

WOMEN PREFER TO SHOP LOCALLY
SAYS NEW STUDY

Canadian women prefer to shop at well-established stores that are close to home, says the latest research from Hardlines Quarterly Report.

A survey of men and women across the country, conducted by ACNielsen Canada for HQR, the sister publication to Hardlines, reveals that women rank the convenience and brand recognition of Canadian Tire and neighbourhood hardware stores above big boxes or building centres.

Once inside a big box store, women are more inclined than men to spend money, says the report. But for purchases over $200, women are most inclined to spend at a building centre or lumber yard than a big box.

(The results of this exclusive survey, plus tons of other research – and an interview with the head of Home Depot Canada – all appear in the 1Q issue of HQR, available February 3 – MM)

WHY SOME BIG BOXES ARE GETTING …. LESS BIG

Home Depot Canada is the latest big box player to start downsizing its stores – and for once the consumer isn’t driving the change. Faced with fewer and fewer good large urban sites, Home Depot, Réno-Dépôt and Rona are all looking for ways to put a full assortment into stores that are 10% or 20% smaller than the traditional footprint.

Eric Peterson, vice-president merchandising for Home Depot Canada, says the move is a pragmatic one in response to the tight demand for real estate. But, he adds, the big box model doesn’t get compromised by the downsizing; in fact, older Home Depot stores were typically closer to 95,000 sq.ft. than the current model of 115,000-plus sq.ft. – plus garden centre, that is.

Peterson says Home Depot has four sizes “on the boards”: 81,000, 90,000 (Peterson’s personal favourite!), 95,000-100,000 and 110,000 sq.ft. In each case the garden centre adds about 20,000 sq.ft.

Sylvain Toutant, president and CEO of Réno-Dépôt, says his company has encountered the same challenge. While stores in the Montréal area reach 165,000 sq.ft., a recent opening in Sherbrooke, QC weighed in at 124,000 sq.ft. Some of its Building Box stores currently under development, including one slated to open in Windsor ON this Spring, will likely be around 130,000 sq.ft.

Even Rona has been cautious in opening large-size stores. Although it’s currently building a Rona Warehouse in Gloucester, ON, Its latest opening in the Montréal area – in Laval – was in fact a smaller box format Regional store.

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	28.20	17.15	26.50
Canfor	12.60	8.05	9.70
Emco	7.50	2.60	5.75
Goodfellow	9.90	8.00	9.00
Home Depot	53.73	30.30	49.41
Hudson’s Bay	20.10	30.30	13.60
Lowe’s Cos.	47.14	18.87	46.31
Sears Canada	26.95	12.50	17.40
Sodisco-Howden	2.80	0.75	1.30
Taiga Forest	10.80	6.80	9.80
West Fraser	40.00	23.00	37.75

COMPANIES IN THE NEWS

Sales for Sears Canada were up slightly in 2001, to $6.726 billion, from $6.356 billion in 2000. Profits dropped to $94.1 million from $225.8 million a year earlier. Sales dropped 1.6% in December, and same-store sales for the month were down 3.5%.

Home Depot in the U.S. will combine two of its nine divisions into a new unit to service stores in the U.S. Southeast and Caribbean. The Southern division in Tampa, FL will be rolled into the Atlanta-based Midsouth division.

Lee Valley Tools will open its 10th store by Fall 2002. It will be located in Burlington, ON on a site that will be shared with Home Depot, Staples and other retailers.

American Tool Cos. Canada Inc. will move to new offices effective February 1 ,2002: 391B Matheson Blvd. East, Mississauga, ON L4Z 2H2. Phone and fax remain the same: 905-890-0334; fax: 905-890-7037.

Do-it Best Corp. will offer an executive symposium for its retail members throughout the month of February. Called “Maximize your retail image, your profits, your growth,” the program is aimed at updating members on current industry trends to help them refine their growth strategies. The one-day event will be hosted in 36 locations throughout the U.S.

Home Depot in the U.S. slipped from number one to 19th place in this year’s consumer survey of corporate reputation. Cluttered aisles and lack of product knowledge led the list of gripes by shoppers who were surveyed, says a study by Harris Interactive and the Reputation Institute. Wal-Mart ranked 17th.

PEOPLE ON THE MOVE

Phil Brown, formerly vice-president of Growmark Canada‘s consumer division, has departed on the heels of a restructuring of the Canadian operation at the hands of Growmark’s parent, Growmark Inc. in the U.S. Tony Di Emanuele, director of merchandising and marketing, will handle retail concerns until the new structure is finalized. (905-826-0200)

MARKET INDICATORS

Sales by large retailers were up 6.4% to $7.6 billion in November 2001, from November 2000. According to Statistics Canada, the hardware, lawn and garden category was up 9.0%; home furnishings and electronics were up 12.8%.

Wholesale trade in Canada rose a modest 0.4% in November, says Statistics Canada. Strongest gains were in the “other” category, which includes toys and sporting goods, while hardware and plumbing fell 1.8%. Wholesale sales weakened in all provinces except Manitoba, Newfoundland and Québec.

OVERHEARD

“I don’t even pretend to understand, anymore, why we continue to grow.” – Leonard Lee, president of Lee Valley Tools, reflecting on company sales growth in December 2001 from a year earlier. which was more than double its forecast.

RETAILER PRE-REGISTRATION IS WAY UP FOR CHS

Pre-registrations for the 2002 Canadian Hardware and Building Materials Show are up substantially compared with the same period last year. To date, advance registration is up by 16%. While registrations from Ontario are at par with last year, CHS is enjoying increased registration from Western Canada and the Atlantic provinces. Québec is the only province with fewer registrants to date.

“Registration in the all-important retailer attendee category is up by 23%, a figure which bodes well for booth activity at CHS,” says Bob Elliott, president of the Canadian Retail Hardware Association, which co-hosts the show.

A good portion of this year’s advance registration is in the interior design/decorator attendee category. The show’s new alliance with the Walls Windows Furnishings Association has resulted in a surge of interest in the show’s Décor Showcase – which is expected to benefit related home improvement exhibits.

The show runs February 3-5 at The National Trade Centre in Toronto.

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!

****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

For more information, call: John Brice, 1-800-663-2252. Confidentiality assured.

Human Resources
United Farmers
1016-68 Ave. SW
Calgary, AB. Canada
T2V 4J2
Fax: (403) 258-7630
E- Mail: resumes@ufa.com

(040202)

* * * * * *
CALLING ALL EMPLOYERS!
Wolf Gugler & Associates Limited, the undisputed leader in executive search and management appraisals for home improvement Retailers and their Suppliers and a proud Sponsor of the Hardlines Breakfast Sunday February 3, will be participating in the new Retail Services Showcase at CHS ’02. You’ll find us in Room 103 on Sunday from 8 a.m. until noon. Please stop by to confidentially discuss your proposed recruitment requirements with Wolf Gugler in person, or to arrange a convenient alternative time. You can also contact us prior to the show at 800-830-1090, or via email: wolf@wolfgugler.com to meet you at your booth during the show.

* * * * * *
KEY SALES AND MARKETING POSITIONS:
As an international manufacturer and distributor of bath/shower organizational products and pioneers of the original award-winning shower organizer The Dispenser, Better Living Products is looking for key people to join our growing North American sales and marketing team.

The following are immediate opportunities:
National Sales Manager – Canada
Sales & Marketing Co-ordinator – U.S.A
Key Account Executive – U.S.A/Canada
Territory Account Manager, Secondary Markets – U.S.A/Canada
Inside Sales/Telemarketing Representative – U.S.A.

* * * * * *
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

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.

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 at 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!

Jan14_02

“Why should I care about posterity? What’s posterity ever done for me?”
– Groucho Marx (1890-1977)

vol. viii, #2 January 14, 2002

* Editors’ roundtable will discuss retail issues at CHS
* Ace signs with technology partner
* Sears Canada remains committed to carpet business
* BSDA show will be twice as big this year
* Home Depot’s international president resigns

EDITORS WILL AIR THEIR VIEWS AT CHS
Hardlines is pleased to announce a new forum for service companies that target suppliers and retailers in hardware/home improvement. These companies can help you run your business better – whether it’s logistics, EDI, HR, printing services, instore merchandising, etc., etc. The Retail Services Showcase will run during our Show Breakfast on Sunday, February 3, 2002 in Room 103, starting at 8 a.m. and stay open right up until noon that day. The Retail Services Showcase is going to be an amazing value-added for our sponsors – and a great addition for our guests to get the most out of the Show. If you want your company to be part of this exciting new Showcase, just contact Bev Allen: 416-489-3396, bev@hardlines.ca
ACE CANADA PICKS CCITRIAD AS TECHNOLOGY PARTNER
Ace Hardware Canada has selected CCITriad as its preferred retail computer provider of choice for its Canadian-based stores. Under the agreement the two companies promote the installation of CCITriad’s Eagle system. Paul Ingevaldson, senior vice-president international and technology for Ace Hardware, says, “Ace Canada is committed to retail success, and this partnership is one more step we are taking to help our retailers be even more competitive in the Canadian marketplace.” This alliance agreement is an extension of the partnership Ace in the U.S. formed with CCITriad in September 2000. Under that agreement, Ace exclusively endorsed CCITriad as the preferred computer provider for its 5,000 participating U.S. retailers.
EDITORS WILL AIR THEIR VIEWS AT CHS
Some of the industry’s keenest observers will voice their observations at the upcoming Canadian Hardware and Building Materials Show. “Hardlines Uncensored” will feature the editors of some of the leading trade publications in Canada in a round table discussion where they’ll tackle topics such as the challenge of globalization to Canadian suppliers, the long-term effectiveness of the big box as a retail model and new competitive threats to the independent retailer. The participants will be Rob Gerlsbeck of Hardware Merchandising, Donald O’Hara of Quart de Rond and Joe Hornyak of Home Improvement Retailing. Michael McLarney of Hardlines (who dat? – Editor) will moderate the panel. Presented by Hardlines in conjunction with CHS, “Hardlines Uncensored” will be held February 4, 2002 at noon in Toronto’s National Trade Centre, as part of the show’s education program.
COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	28.20	17.10	26.03
Canfor	12.60	8.05	10.45
Emco	7.50	2.60	6.75
Goodfellow	9.90	8.00	9.25
Home Depot	53.73	30.30	9.25
Hudson’s Bay	20.10	30.30	50.46
Lowe’s Cos.	45.55	18.87	42.03
Sears Canada	26.95	12.50	19.55
Sodisco-Howden	2.80	0.75	1.77
Taiga Forest	10.80	6.80	10.10
West Fraser	40.00	23.00	38.50

VANCOUVER SHOW WILL DOUBLE IN SIZE
After taking what it calls “baby steps,” the annual trade show and convention of the Building Supply Dealers of British Columbia is moving into a new, larger venue this year, one that will let it expand from 109 booths to 192. The trade show portion of Westcoast 2002 will be held in Vancouver’s Pacific Coliseum, while the conference will be at the Executive Inn in nearby Coquitlam. Shuttle buses will move delegates between locations. The combined event, put on by the BSDA, will take place March 8-9. “The retailers were very clear as to what we needed to be a successful show,” says Diane McConnell, show manager. “To make it a proper show we had to expand into a larger facility with a full range of suppliers.” McConnell expects to sell out the few remaining booths by the end of this week. The new venue will put all exhibitors on one floor, each with their own full-sized booth. “In previous years, we had to squeeze them into every nook and cranny,” says McConnell. The show is not the only thing that’s grown. McConnell expects 350 people to attend the gala on March 9.

COMPANIES IN THE NEWS

Sears Canada will be unaffected by the decision of Sears Roebuck in the U.S. to exit the carpet business there. Sears currently has 38 independently owned floorcovering stores across Canada, and is continuing to roll out more. Sears in the U.S. will get out of the carpet business in February. It sells carpet through 560 stores. Observers say Home Depot and Lowe’s are taking a big chunk of the floorcovering business. KM Agency, headed up by Sid Smith, has been appointed to represent RCR International Inc. in Atlantic Canada. Smith’s team will be responsible for all accounts, including RCR’s major accounts in the region.

Hardware and home improvement products at Canadian Tire enjoyed double-digit sales growth in December, as holiday sales proved strong for the company. Its retail sales increased 5.0% over December, 2000.

With 64% of Willamette shares already tendered, Weyerhaeuser Co. is confident an extension of its US$55 per share offer for Willamette Industries will result in a successful takeover versus rival bidder Georgia-Pacific.

Sears in the U.S. plans to open 15 new stores the end of this year and refurbish another 50. This will begin a program to renovate 600 of the retailer’s largest stores over the next four years.

PEOPLE ON THE MOVE

Anders Möberg, president of the international division of Home Depot, will resign effective January 25. He oversaw Canada, Mexico and South America. While Canada has flourished, the company is pulling back in South America, and plans for European expansion have stalled. Annette Verschuren, president of Home Depot Canada, who formerly reported to Möberg, will now report directly to CEO Robert Nardelli.

MARKET INDICATORS

The New Housing Price Index rose 0.3% in November from October. Compared with November 2000, this index of contractors’ selling prices increased 2.7%. The rate of housing construction from November to December increased 4.0% to 175,500, reports Canada Mortgage and Housing Corp. The greatest growth was in multiple starts, which were up 7.9% to an annual rate of 68,300 units. Urban singles rose 2.0% to an annual rate of 85,700 units from 63,300 in November. Estimated rural starts remained unchanged at a seasonally adjusted annual rate of 21,500 units.

Building permits in both residential and non-residential sectors exceeded $3.5 billion in November – only the second time that’s happened in the last decade, says Statistics Canada. Residential permits were up 6.6% from October.

NOTED

Absolutely the coolest business card I’ve seen in a long while was handed to me recently by Bernie Bosch. She’s the Canadian sales director for Plantation Products, which sells seeds and related products. Her business card is actually a card-sized packet of – you guessed it – seeds. (Mine were forget-me-nots.) – Michael

INTRODUCING THE RETAIL SERVICES SHOWCASE

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!

* * * * * *
CALLING ALL EMPLOYERS!
Wolf Gugler & Associates Limited, the undisputed leader in executive search and management appraisals for home improvement Retailers and their Suppliers and a proud Sponsor of the Hardlines Breakfast Sunday February 3, will be participating in the new Retail Services Showcase at CHS ’02. You’ll find us in Room 103 on Sunday from 8 a.m. until noon. Please stop by to confidentially discuss your proposed recruitment requirements with Wolf Gugler in person, or to arrange a convenient alternative time. You can also contact us prior to the show at 800-830-1090, or via email: wolf@wolfgugler.com to meet you at your booth during the show. * * * * * *
KEY SALES AND MARKETING POSITIONS:
As an international manufacturer and distributor of bath/shower organizational products and pioneers of the original award-winning shower organizer The Dispenser, Better Living Products is looking for key people to join our growing North American sales and marketing team.

* * * * * *
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

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!
_____________________________________________
Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2002 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
THE HARDLINES “FAIR PLAY” POLICY:
Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!
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Nov. 29, 2001

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

* * * * * *

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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.

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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.

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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.

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