Oct22_01

HARDLINES

Canada’s electronic information service for home improvement

industry

October 22, 2001

Volume vii, #43

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Kent explores new formats

* Schurman opens big box style flagship in Charlottetown

* Sodisco-Howden looks inward for greater efficiencies

* Fantom Fury ceases manufacturing

* 3Q sales up, profits down for Sears Canada

* * * * * *

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED:

HARDLINES RETAIL REPORT 2001 – a turnkey PowerPoint

presentation to wow your boss at planning time. Bev actually

thought of this one, after getting so many calls during

planning time from people looking for a concise snapshot of

the market: This presentation looks fabulous. It comes

complete with charts, photos and pie charts, including:

– provincial breakouts

– market share by retail format

– growth of the big boxes

– top 10 home improvement retailers

– ranking of buying groups.

A MUST for anyone trying to explain the Canadian market.

Priced VERY low at only $179 + taxes for Hardlines

subscribers! (WAY more expensive for non-subscribers!) Call

416.489.3396 or email nancy@hardlines.ca or order online:

https://hardlines.ca/html/order.html to get your CD-ROM

now.

* * * * * *

ARE YOU GETTING HARDLINES QUARTERLY REPORT?

The next issue will tell you:

* what’s coming this spring with the Top Four Retailers

* analysis of the Top 10 Retailers, 1990 and now

* the European market outlook

* the latest economic indicators

* and more …

So if you’re not a subscriber, you’ll miss it all. Both The

Financial Post and the Toronto Star have reported on the

exclusive research that appears in HQR. Shouldn’t you be

reading it?

Only $349 + taxes for a full year. Call Nancy Wright at

416.489.3396, email her at: nancy@hardlines.ca, or go to our

website: https://hardlines.ca/html/order.html

______________________________________________

SCHURMAN OPENS NEW FLAGSHIP

STORE IN CHARLOTTETOWN

In a departure from its traditional building centre format,

Schurman Building Supplies has opened its largest outlet

yet. The new 55,000-sq.ft. store in Charlottetown features

about 30,000 sq.ft. of retail – and is more than four times

larger than the one it replaces in that city. It had a soft

opening on October 9; the grand opening will be on November

The store continues with some strategies first implemented

in Schurman’s store in Montague, PE when that one was

renovated and expanded three years ago. Features include a

mix of traditional gondolas and warehouse racking, with

overhead storage to get as much product out on the floor as

possible. Charlottetown is the last location in the

five-store chain to get upgraded. It’s also the most

radical.

“We looked at a couple of areas we could be dominant in and

decided on power tools and lighting,” says Mike Simms,

general manager of Schurman. “Another area was hardware – we

have the largest hardware assortment on the island.”

Both lighting and power tools are featured prominently,

right at the front of the store. The store carries 500 light

fixtures and some 300 power tools. The larger size and

expanded assortments are paying off, says Simms. “We did 30%

of our year-to-date volume in lighting in the first week we

were opened.”

Sitting on a six-acre site with three acres of yard, the

store maintains its core strength in lumber and building

materials, while expanding into more retail-oriented areas.

That retail customer includes women. Already strong in

crafts, Schurman has expanded this department in the new

store to a full 112 feet. “It certainly caters to the female

shopper we’re trying hard to attract,” Simms adds.

Another area the store has increased its focus on is paint.

An exclusive agreement with Sico for PEI gives the company a

broader assortment, alongside PPG, another Schurman

exclusive. Simms cites the healthy margins, resistance to

seasonal ups and downs – and appeal for women customers.

______________________________________________

KENT CHARTS NEW LOOK FOR TRADITIONAL STORES

Kent Building Supplies remains on track for the opening of

its next big box store. This one, in Mt. Pearl, NF, will be

the second for the St. John’s market and the chain’s seventh

warehouse-format store. It’s slated to open in Spring 2002.

But it may also be the last one.

According to Stew Valcour, general manager of Kent, the

company will continue to develop both its traditional and

big box formats. But, he adds, “I think we’re coming to the

end of the road for [big boxes] in Atlantic Canada.” There

is “lots more room” for traditional building centre stores,

however, Valcour says. A store in Saint John, NB was

replaced last Spring by a Kent big box.

The only big box competition comes from two Home Depot

stores, one in Halifax, NS and the other in nearby

Dartmouth. A Home Depot store planned for Moncton for the

past two years has been yanked once and for all, and

Wal-Mart now has the option on the site.

While the Halifax store is flourishing, parking lot activity

at the Dartmouth store tells a different story there. Likely

with its eye on the performance of the Home Depot in

Dartmouth, Kent is considering carefully any further plans

to open big boxes of its own. It is, however, working on

upgrading its traditional stores. Though Valcour wouldn’t

confirm a date, a new look will appear in Rothesay, NB in

Spring or Summer 2002. There, an 11,000-sq.ft. outlet will

be replaced by a 60,000-sq.ft. store. The opening last week

of a 55,000-sq.ft. store in Charlottetown, PE by Schurman

Building Supplies represents a model for a downsized big box

format, one that Kent may borrow from in its Rothesay store.

______________________________________________

SODISCO-HOWDEN SEEKS GROWTH

BY “FOCUSING ON THE FUNDAMENTALS”

Sodisco-Howden Group’s financial health is good, despite

sagging profits, says Jos Wintermans, the new president and

CEO. Speaking at the Howden Division’s Fall Market last week

in Toronto, he told an audience of dealers from all parts of

English Canada that the company’s financial health is

supported by good cash flow and healthy inventories.

The mandate of his predecessor, Tony Molluso, was to drive

sales. Under Wintermans, who has a solid background in

operations (his legacy includes Canadian Tire Finance and a

seat on Sodisco-Howden’s board of directors), attention

appears to be turning inward. Currently, org teams

comprising 50 SHG employees are mandated to develop

execution plans for a number of ideas that have largely come

from the staff themselves. The process includes increasing

service levels, a SKU review and increasing inventory

accuracy and turns.

“It utilizes the knowledge and experience of the employees

inside our own company,” Wintermans said. Included in all

this is an effort to better harmonize the buying teams in

the company’s two divisions. The six-month process is

expected to be ready for implementation by early 2002.

The initiative is also looking externally, seeking ways to

grow the Pro banner nationwide and increase buying power for

dealers.

Later, in an interview with Hardlines, Wintermans explained

that he’s simply trying to encourage an environment and a

mentality to get good ideas tested and implemented. “It’s a

framework and a discipline that says, ‘let’s live by facts,

not by opinion.’ ”

Wintermans added that he expects to be in place for anywhere

from one to two years. He currently commutes to both the

Sodisco Division in Victoriaville, QC and the London

facility from his home in Toronto.

_____________________________________________

COMPANIES IN THE NEWS

Taiga Forest Products has reported second-quarter sales for

the period ended September 30, 2001. Sales totaled $230.1

million, a 14% increase over the same period last year, when

sales were $201.9 million. Sales for the six-month period

were $465.6 million, compared with $447.3 the previous year.

Earnings for the same period were $3.8 million and $514,000

for the equivalent time in 2000.

Sales in the third quarter were up 8.6% for Sears Canada,

from $1.46 billion to $1.58 million. Merchandise sales were

up 5.4%, while same-store sales fell 1.1%. Net income fell

to $17.9 million from $36.2 million.

West Fraser had sales of $407 million, compared with $341

million for the same period last year. Net income totalled

$46 million versus $24 million. Sales year-to-date were

$1.20 billion, compared with $1.37 billion for the first

nine months of 2000. During the third quarter, West Fraser

discontinued operations of its retail home improvement

division, with the sale of Revy Home Centres and the

disposal of most of the related real estate. The selloff

earned the company $220 million, less the $32.1 million it

had to pay to the Kitchen family for outstanding Revy

shares.

More than 600 TruServ and V&S dealers are expected today in

Winnipeg for TruServ’s National Merchandise Market, which

runs until October 23. The event, at the Winnipeg Convention

Centre, will feature dealer seminars and products from 500

manufacturers.

The Zircon Corp.’s Canadian sales office has a new location,

effective immediately: 90 Kenmore Ave., Cambridge, ON N1S

3H6. Phone remains the same: 519-624-1063; and so does the

guy who runs it: John Tizzard, director of sales &

marketing: johnt@zircon.com.

Roland Boulanger Ltd. is establishing a new facility to

serve the Ontario market, effective November 1: 10

Kingsbridge Garden Circle, suite 704, Mississauga, ON L5R

3K6; phone: 905-502-3483; fax: 905-502-3484.

Fantom Industries has stopped shipping after months of

losses amidst ongoing efforts to restructure. The maker of

the wonderfully named Fantom Fury vacuum cleaner has reduced

its work force and ceased manufacturing.

Willamette Industries Inc. announced last week it was

willing to discuss a sale to Weyerhaeuser Co., if the latter

makes a written offer in the high US$50 per share range.

This was the first time Willamette has spelled out what

price it will be willing to sell at.

Wal-Mart Stores Inc. announced same-store sales for the

first week of October that were slightly below plan. The

company is still tracking within the 4%-6% range it

anticipates for the full month. Sales were above average in

several categories, including housewares, office supplies,

fabrics and crafts, pet supplies, shoes, household chemicals

and paper, pharmacy and cosmetics.

Sears, Roebuck and Co. has announced that total domestic

store revenues for the five weeks ending September 29, 2001

were US$2.51 million. This represents a 6% decrease from the

same period in 2000. Same-store revenues decreased 6.7%.

The U.S. is poised to appoint Marc Racicot, former

Republican governor of Montana, as a new point man in the

softwood lumber dispute. Racicot, a U.S. Army prosecutor

before he entered politics, acted as spokesman for Mr. Bush

during the Florida ballot recount. Canadian government

representatives have raised concerns that the introduction

of Racicot this late in the process could slow any possible

resolutions to the conflict.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.12
Canfor	16.95	7.65	9.10
Emco	7.50	2.60	4.30
Goodfellow	11.00	8.00	8.40
Home Depot	49.74	47.61	41.68
Hudson’s Bay	17.65	12.40	15.40
Lowe’s	64.90	34.25	34.69
Sears Canada	37.25	18.55	15.40
Sodisco-Howden	0.75	2.80	0.75
Taiga Forest	10.00	6.80	10.50
West Fraser	36.50	21.00	31.00

______________________________________________

“When you make a world tolerable for yourself you make a

world tolerable for others.”

– Anais Nin (20th-century French author)

______________________________________________

MARKET INDICATORS

The Consumer Price Index increased 2.6% in September over

September 2000, according to Stats Canada. This follows

another year-over-year increase of 2.8% in August. Almost a

third of the September increase was due to higher food

prices.

Wholesale sales increased 0.8% from July to August, says

Stats Canada. Wholesalers sold $33.2 billion worth of goods

and services that month, with an increase in automotive

(+3.4%), but a decline in metals, plumbing and hardware

(-1.1%). Lumber and building materials were up 0.4%.

* * * * * *

INDUSTRY NEWS. EVERY DAY –

Our website has daily updates on retail and industry news

that matter to you.

Keep informed. Visit hardlines.ca. Every day.

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE

THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

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

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

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

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

tradeshowtravel@home.com to arrange your trip. Packages

include return air fare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally

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

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

* * * * * *

PEOPLE ON THE MOVE

Trent Coleman has left Canadian Tire Corp., which has

resulted in Dave Party moving over to replace him as lead

category manager, outdoor equipment and yard tools …

Suzanne Morgan replaces Party as lead category manager,

décor … Pam Pike has joined Morgan’s team as category

manager in plumbing and décor … No replacement has yet

been named for Pike, who formerly handled power tool

accessories and generators. (416-480-3000)

The Canadian Retail Building Supply Council has appointed

Donald O’Hara as president for the 2001-2003 term. CRBSC is

a national umbrella organization comprised of Canada’s five

regional and provincial building supply dealer associations:

Building Supply Dealers Association of BC, Western Retail

Lumber Association, Lumber and Building Materials

Association of Ontario, Québec Building Materials Dealers

Association, and Atlantic Building Supply Dealers

Association. O’Hara is executive vice-president of ADMACQ.

CRBSC has a combined membership of 1,800 companies

representing total estimated sales of $28.5 billion at

retail. (450-646-5842)

______________________________________________

NOTED …

Elena Opasini, editor of Centre magazine, is rounding up

votes for her Best in Business Awards, but it’s last call,

so act fast. To vote for your favourite buyer or vendor,

visit http://www.centremagazine.com/ and cast your

electronic vote.

A coin has been struck in honour of Walter Hachborn, founder

of Home Hardware Stores, in Kitchener-Waterloo, ON. The

two-dollar coin is legal tender in the twin cities for the

duration of Oktoberfest.

Retail Council of Canada is bringing behavioural market

researcher Paco Underhill to Toronto on October 29 at the

Sheraton Parkway North, and to Ottawa on October 30 at the

Ottawa Congress Centre. Underhill is the author of the

international best-selling book, Why We Buy: The Science of

Shopping. Tickets are $60 for members, $90 for non-members

and $30 for students. To register, call 416-922-6678;

http://www.retailcouncil.org/.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of

product lines.

Why not make yours one of them?

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

* * * * * *

MARKETING AND COMMUNICATIONS:

You are a senior marketing professional with many years of

retail and contractor experience. As a team player, you

possess strong communication, managerial and interpersonal

skills. You are a very motivated, ‘hands-on’ individual who

will be responsible for developing and executing various

marketing programs, including print, radio and television.

Strong organizational skills are required for overseeing the

budget and critical execution paths. Experience in setting

up trade and consumer shows and special events would be an

asset.

TIM-BR Mart is the national retail brand for hundreds of

building centres across Canada. This Ontario management

position is dedicated to ensuring that our stores project a

strong retail image in the marketplace. Your goal is to

strengthen the TIM-BR Mart brand by making the marketing

decisions that provide the best value within the approved

budget.

We offer a competitive compensation package and a pleasant

working environment. We thank all candidates for their

interest; however, only those candidates selected for an

interview will be contacted.

Please fax your resumé, in strictest confidence, to the

Executive Assistant at the private fax: 905-671-9467 or

e-mail to sheenaj@homecare.on.ca

* * * * * *

MERCHANDISER/SUPERVISOR:

MOST Marketing is looking for an experienced

merchandiser/supervisor to service the Leviton line of

products for retail stores in the Toronto area market.

This is a contract position. Benefits and remuneration are

based on experience. If you’re interested and a hard worker,

contact Alain Carle, Merchandising and Servicing Manager,

Leviton Manufacturing Canada; 1-800-461-2002 ext. 467;

e-mail: acarle@leviton.com. Suitable candidates must have a

car, and must be available to travel.

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

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

our email and fax publications …

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

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

Publish your ad where it matters. Get industry exposure

today.

______________________________________________

Hardlines is published weekly (except monthly in December

and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada

M4S 2M7

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

Reproduction in whole or in part is very uncool and strictly

forbidden and really and truly against the law. So please,

play fair! Call for information on multiple subscriptions or

a site license for your company. We do want as many people

as possible to read Hardlines each week – but let us handle

your internal routing from this end!

______________________________________________

Subscription: $199+$13.93 GST = $212.93 per year (GST #13987

0398 RT). Secondary subscriptions at the same office are

only $28 + $1.96 GST = $29.98. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

HARDLINES

Canada’s electronic information service for home improvement

industry

October 22, 2001

Volume vii, #43

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca

* * * * * *

IN THIS ISSUE:

* Kent explores new formats

* Schurman opens big box style flagship in Charlottetown

* Sodisco-Howden looks inward for greater efficiencies

* Fantom Fury ceases manufacturing

* 3Q sales up, profits down for Sears Canada

* * * * * *

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED:

HARDLINES RETAIL REPORT 2001 – a turnkey PowerPoint

presentation to wow your boss at planning time. Bev actually

thought of this one, after getting so many calls during

planning time from people looking for a concise snapshot of

the market: This presentation looks fabulous. It comes

complete with charts, photos and pie charts, including:

– provincial breakouts

– market share by retail format

– growth of the big boxes

– top 10 home improvement retailers

– ranking of buying groups.

A MUST for anyone trying to explain the Canadian market.

Priced VERY low at only $179 + taxes for Hardlines

subscribers! (WAY more expensive for non-subscribers!) Call

416.489.3396 or email nancy@hardlines.ca or order online:

https://hardlines.ca/html/order.html to get your CD-ROM

now.

* * * * * *

ARE YOU GETTING HARDLINES QUARTERLY REPORT?

The next issue will tell you:

* what’s coming this spring with the Top Four Retailers

* analysis of the Top 10 Retailers, 1990 and now

* the European market outlook

* the latest economic indicators

* and more …

So if you’re not a subscriber, you’ll miss it all. Both The

Financial Post and the Toronto Star have reported on the

exclusive research that appears in HQR. Shouldn’t you be

reading it?

Only $349 + taxes for a full year. Call Nancy Wright at

416.489.3396, email her at: nancy@hardlines.ca, or go to our

website: https://hardlines.ca/html/order.html

______________________________________________

SCHURMAN OPENS NEW FLAGSHIP

STORE IN CHARLOTTETOWN

In a departure from its traditional building centre format,

Schurman Building Supplies has opened its largest outlet

yet. The new 55,000-sq.ft. store in Charlottetown features

about 30,000 sq.ft. of retail – and is more than four times

larger than the one it replaces in that city. It had a soft

opening on October 9; the grand opening will be on November

The store continues with some strategies first implemented

in Schurman’s store in Montague, PE when that one was

renovated and expanded three years ago. Features include a

mix of traditional gondolas and warehouse racking, with

overhead storage to get as much product out on the floor as

possible. Charlottetown is the last location in the

five-store chain to get upgraded. It’s also the most

radical.

“We looked at a couple of areas we could be dominant in and

decided on power tools and lighting,” says Mike Simms,

general manager of Schurman. “Another area was hardware – we

have the largest hardware assortment on the island.”

Both lighting and power tools are featured prominently,

right at the front of the store. The store carries 500 light

fixtures and some 300 power tools. The larger size and

expanded assortments are paying off, says Simms. “We did 30%

of our year-to-date volume in lighting in the first week we

were opened.”

Sitting on a six-acre site with three acres of yard, the

store maintains its core strength in lumber and building

materials, while expanding into more retail-oriented areas.

That retail customer includes women. Already strong in

crafts, Schurman has expanded this department in the new

store to a full 112 feet. “It certainly caters to the female

shopper we’re trying hard to attract,” Simms adds.

Another area the store has increased its focus on is paint.

An exclusive agreement with Sico for PEI gives the company a

broader assortment, alongside PPG, another Schurman

exclusive. Simms cites the healthy margins, resistance to

seasonal ups and downs – and appeal for women customers.

______________________________________________

KENT CHARTS NEW LOOK FOR TRADITIONAL STORES

Kent Building Supplies remains on track for the opening of

its next big box store. This one, in Mt. Pearl, NF, will be

the second for the St. John’s market and the chain’s seventh

warehouse-format store. It’s slated to open in Spring 2002.

But it may also be the last one.

According to Stew Valcour, general manager of Kent, the

company will continue to develop both its traditional and

big box formats. But, he adds, “I think we’re coming to the

end of the road for [big boxes] in Atlantic Canada.” There

is “lots more room” for traditional building centre stores,

however, Valcour says. A store in Saint John, NB was

replaced last Spring by a Kent big box.

The only big box competition comes from two Home Depot

stores, one in Halifax, NS and the other in nearby

Dartmouth. A Home Depot store planned for Moncton for the

past two years has been yanked once and for all, and

Wal-Mart now has the option on the site.

While the Halifax store is flourishing, parking lot activity

at the Dartmouth store tells a different story there. Likely

with its eye on the performance of the Home Depot in

Dartmouth, Kent is considering carefully any further plans

to open big boxes of its own. It is, however, working on

upgrading its traditional stores. Though Valcour wouldn’t

confirm a date, a new look will appear in Rothesay, NB in

Spring or Summer 2002. There, an 11,000-sq.ft. outlet will

be replaced by a 60,000-sq.ft. store. The opening last week

of a 55,000-sq.ft. store in Charlottetown, PE by Schurman

Building Supplies represents a model for a downsized big box

format, one that Kent may borrow from in its Rothesay store.

______________________________________________

SODISCO-HOWDEN SEEKS GROWTH

BY “FOCUSING ON THE FUNDAMENTALS”

Sodisco-Howden Group’s financial health is good, despite

sagging profits, says Jos Wintermans, the new president and

CEO. Speaking at the Howden Division’s Fall Market last week

in Toronto, he told an audience of dealers from all parts of

English Canada that the company’s financial health is

supported by good cash flow and healthy inventories.

The mandate of his predecessor, Tony Molluso, was to drive

sales. Under Wintermans, who has a solid background in

operations (his legacy includes Canadian Tire Finance and a

seat on Sodisco-Howden’s board of directors), attention

appears to be turning inward. Currently, org teams

comprising 50 SHG employees are mandated to develop

execution plans for a number of ideas that have largely come

from the staff themselves. The process includes increasing

service levels, a SKU review and increasing inventory

accuracy and turns.

“It utilizes the knowledge and experience of the employees

inside our own company,” Wintermans said. Included in all

this is an effort to better harmonize the buying teams in

the company’s two divisions. The six-month process is

expected to be ready for implementation by early 2002.

The initiative is also looking externally, seeking ways to

grow the Pro banner nationwide and increase buying power for

dealers.

Later, in an interview with Hardlines, Wintermans explained

that he’s simply trying to encourage an environment and a

mentality to get good ideas tested and implemented. “It’s a

framework and a discipline that says, ‘let’s live by facts,

not by opinion.’ ”

Wintermans added that he expects to be in place for anywhere

from one to two years. He currently commutes to both the

Sodisco Division in Victoriaville, QC and the London

facility from his home in Toronto.

_____________________________________________

COMPANIES IN THE NEWS

Taiga Forest Products has reported second-quarter sales for

the period ended September 30, 2001. Sales totaled $230.1

million, a 14% increase over the same period last year, when

sales were $201.9 million. Sales for the six-month period

were $465.6 million, compared with $447.3 the previous year.

Earnings for the same period were $3.8 million and $514,000

for the equivalent time in 2000.

Sales in the third quarter were up 8.6% for Sears Canada,

from $1.46 billion to $1.58 million. Merchandise sales were

up 5.4%, while same-store sales fell 1.1%. Net income fell

to $17.9 million from $36.2 million.

West Fraser had sales of $407 million, compared with $341

million for the same period last year. Net income totalled

$46 million versus $24 million. Sales year-to-date were

$1.20 billion, compared with $1.37 billion for the first

nine months of 2000. During the third quarter, West Fraser

discontinued operations of its retail home improvement

division, with the sale of Revy Home Centres and the

disposal of most of the related real estate. The selloff

earned the company $220 million, less the $32.1 million it

had to pay to the Kitchen family for outstanding Revy

shares.

More than 600 TruServ and V&S dealers are expected today in

Winnipeg for TruServ’s National Merchandise Market, which

runs until October 23. The event, at the Winnipeg Convention

Centre, will feature dealer seminars and products from 500

manufacturers.

The Zircon Corp.’s Canadian sales office has a new location,

effective immediately: 90 Kenmore Ave., Cambridge, ON N1S

3H6. Phone remains the same: 519-624-1063; and so does the

guy who runs it: John Tizzard, director of sales &

marketing: johnt@zircon.com.

Roland Boulanger Ltd. is establishing a new facility to

serve the Ontario market, effective November 1: 10

Kingsbridge Garden Circle, suite 704, Mississauga, ON L5R

3K6; phone: 905-502-3483; fax: 905-502-3484.

Fantom Industries has stopped shipping after months of

losses amidst ongoing efforts to restructure. The maker of

the wonderfully named Fantom Fury vacuum cleaner has reduced

its work force and ceased manufacturing.

Willamette Industries Inc. announced last week it was

willing to discuss a sale to Weyerhaeuser Co., if the latter

makes a written offer in the high US$50 per share range.

This was the first time Willamette has spelled out what

price it will be willing to sell at.

Wal-Mart Stores Inc. announced same-store sales for the

first week of October that were slightly below plan. The

company is still tracking within the 4%-6% range it

anticipates for the full month. Sales were above average in

several categories, including housewares, office supplies,

fabrics and crafts, pet supplies, shoes, household chemicals

and paper, pharmacy and cosmetics.

Sears, Roebuck and Co. has announced that total domestic

store revenues for the five weeks ending September 29, 2001

were US$2.51 million. This represents a 6% decrease from the

same period in 2000. Same-store revenues decreased 6.7%.

The U.S. is poised to appoint Marc Racicot, former

Republican governor of Montana, as a new point man in the

softwood lumber dispute. Racicot, a U.S. Army prosecutor

before he entered politics, acted as spokesman for Mr. Bush

during the Florida ballot recount. Canadian government

representatives have raised concerns that the introduction

of Racicot this late in the process could slow any possible

resolutions to the conflict.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.12
Canfor	16.95	7.65	9.10
Emco	7.50	2.60	4.30
Goodfellow	11.00	8.00	8.40
Home Depot	49.74	47.61	41.68
Hudson’s Bay	17.65	12.40	15.40
Lowe’s	64.90	34.25	34.69
Sears Canada	37.25	18.55	15.40
Sodisco-Howden	0.75	2.80	0.75
Taiga Forest	10.00	6.80	10.50
West Fraser	36.50	21.00	31.00

______________________________________________

“When you make a world tolerable for yourself you make a

world tolerable for others.”

– Anais Nin (20th-century French author)

______________________________________________

MARKET INDICATORS

The Consumer Price Index increased 2.6% in September over

September 2000, according to Stats Canada. This follows

another year-over-year increase of 2.8% in August. Almost a

third of the September increase was due to higher food

prices.

Wholesale sales increased 0.8% from July to August, says

Stats Canada. Wholesalers sold $33.2 billion worth of goods

and services that month, with an increase in automotive

(+3.4%), but a decline in metals, plumbing and hardware

(-1.1%). Lumber and building materials were up 0.4%.

* * * * * *

INDUSTRY NEWS. EVERY DAY –

Our website has daily updates on retail and industry news

that matter to you.

Keep informed. Visit hardlines.ca. Every day.

* * * * * *

EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE

THERE!

THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

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

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

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

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

tradeshowtravel@home.com to arrange your trip. Packages

include return air fare and accommodations, as well as

admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally

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

sponsored by Hardlines and Cologne International Trade

Shows. We’ll see you in Cologne!

* * * * * *

PEOPLE ON THE MOVE

Trent Coleman has left Canadian Tire Corp., which has

resulted in Dave Party moving over to replace him as lead

category manager, outdoor equipment and yard tools …

Suzanne Morgan replaces Party as lead category manager,

décor … Pam Pike has joined Morgan’s team as category

manager in plumbing and décor … No replacement has yet

been named for Pike, who formerly handled power tool

accessories and generators. (416-480-3000)

The Canadian Retail Building Supply Council has appointed

Donald O’Hara as president for the 2001-2003 term. CRBSC is

a national umbrella organization comprised of Canada’s five

regional and provincial building supply dealer associations:

Building Supply Dealers Association of BC, Western Retail

Lumber Association, Lumber and Building Materials

Association of Ontario, Québec Building Materials Dealers

Association, and Atlantic Building Supply Dealers

Association. O’Hara is executive vice-president of ADMACQ.

CRBSC has a combined membership of 1,800 companies

representing total estimated sales of $28.5 billion at

retail. (450-646-5842)

______________________________________________

NOTED …

Elena Opasini, editor of Centre magazine, is rounding up

votes for her Best in Business Awards, but it’s last call,

so act fast. To vote for your favourite buyer or vendor,

visit http://www.centremagazine.com/ and cast your

electronic vote.

A coin has been struck in honour of Walter Hachborn, founder

of Home Hardware Stores, in Kitchener-Waterloo, ON. The

two-dollar coin is legal tender in the twin cities for the

duration of Oktoberfest.

Retail Council of Canada is bringing behavioural market

researcher Paco Underhill to Toronto on October 29 at the

Sheraton Parkway North, and to Ottawa on October 30 at the

Ottawa Congress Centre. Underhill is the author of the

international best-selling book, Why We Buy: The Science of

Shopping. Tickets are $60 for members, $90 for non-members

and $30 for students. To register, call 416-922-6678;

http://www.retailcouncil.org/.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of

product lines.

Why not make yours one of them?

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

* * * * * *

MARKETING AND COMMUNICATIONS:

You are a senior marketing professional with many years of

retail and contractor experience. As a team player, you

possess strong communication, managerial and interpersonal

skills. You are a very motivated, ‘hands-on’ individual who

will be responsible for developing and executing various

marketing programs, including print, radio and television.

Strong organizational skills are required for overseeing the

budget and critical execution paths. Experience in setting

up trade and consumer shows and special events would be an

asset.

TIM-BR Mart is the national retail brand for hundreds of

building centres across Canada. This Ontario management

position is dedicated to ensuring that our stores project a

strong retail image in the marketplace. Your goal is to

strengthen the TIM-BR Mart brand by making the marketing

decisions that provide the best value within the approved

budget.

We offer a competitive compensation package and a pleasant

working environment. We thank all candidates for their

interest; however, only those candidates selected for an

interview will be contacted.

Please fax your resumé, in strictest confidence, to the

Executive Assistant at the private fax: 905-671-9467 or

e-mail to sheenaj@homecare.on.ca

* * * * * *

MERCHANDISER/SUPERVISOR:

MOST Marketing is looking for an experienced

merchandiser/supervisor to service the Leviton line of

products for retail stores in the Toronto area market.

This is a contract position. Benefits and remuneration are

based on experience. If you’re interested and a hard worker,

contact Alain Carle, Merchandising and Servicing Manager,

Leviton Manufacturing Canada; 1-800-461-2002 ext. 467;

e-mail: acarle@leviton.com. Suitable candidates must have a

car, and must be available to travel.

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to

industry eyes.

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

our email and fax publications …

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

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

Publish your ad where it matters. Get industry exposure

today.

______________________________________________

Hardlines is published weekly (except monthly in December

and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada

M4S 2M7

HARDLINES(tm) the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

Reproduction in whole or in part is very uncool and strictly

forbidden and really and truly against the law. So please,

play fair! Call for information on multiple subscriptions or

a site license for your company. We do want as many people

as possible to read Hardlines each week – but let us handle

your internal routing from this end!

______________________________________________

Subscription: $199+$13.93 GST = $212.93 per year (GST #13987

0398 RT). Secondary subscriptions at the same office are

only $28 + $1.96 GST = $29.98. You can pay online by VISA at

our secure website or send us money. Please make cheque

payable to McLarneyCom.

Oct15_01

HARDLINES

Canada’s electronic information service

for home improvement industry

October 15, 2001

Volume vii, #42

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca

* * * * * * * * * *

IN THIS ISSUE …

* Réno-Dépôt defends turf in Montréal market

* Canadian Tire will unveil new program in 2003

* Ace signs buying agreement with Allroc

* Home Depot buys California plumbing wholesaler

* U.S. president gets more pressure to reverse softwood duties

* * * * * * * * * *

DOING YOUR MARKETING STRATEGY?

PLANNING THE BUDGET?

THEN YOU WILL NEED:

HARDLINES RETAIL REPORT 2001 — a turnkey PowerPoint presentation to wow your boss at planning time. Bev actually thought of this one, after getting so many calls every year from people looking for an overview of the size of the market: This presentation looks fabulous: it comes complete with charts, photos and pie charts. Includes

– provincial breakouts

– market share by retail format

– growth of the big boxes

– top 10 home improvement retailers

– ranking of buying groups.

A MUST for anyone trying to explain the Canadian market. Priced VERY low at only $179 + taxes for Hardlines subscribers! (WAY more expensive for non-subscribers!) Call 416.489.3396 or email nancy@hardlines.ca to order your CD-ROM now.

* * * * * * * * * *

HARDLINES INDUSTRY REPORT —

HOME IMPROVEMENT RETAILING IN CANADA

This huge report offers a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends — and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers! For more information, contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396.

(go to https://hardlines.ca/html/industry_report.html)

* * * * * * * * * *

RÉNO-DÉPÔT EXPANDS IN ONTARIO, DEFENDS TURF IN QUÉBEC

The opening next month of two new Building Box stores marks the latest strike by Réno-Dépôt to affirm its position as a player in the big box market in Southern Ontario. It entered that market, its first foray outside of Québec, in November 2000 and currently has three stores there. The Mississauga store, scheduled to open November 14, will be the fourth, followed a week later by one in London. A sixth store will open in Windsor next Spring.

“It’s a race for the number two position,” says Sylvain Toutant, vice-president marketing and development for Réno-Dépôt. However, in Québec, the strategy is different. “We’re playing a defensive role in Québec,” says Toutant. “There, we have to protect our brand.”

Both his company and Rona are dukeing it out in Québec with Home Depot, which now has four stores there, three of them in the Montréal area. Rona has two dozen large format stores of its own in Québec, half of them so-called “regional” stores, mini-big boxes that are under 90,000 sq.ft. The 14th Réno-Dépôt will open in Sherbrooke around the end of November.

* * * * * * * * * *

CANADIAN TIRE WILL REINVENT STORE PROGRAM FOR 2003

Canadian Tire has unveiled plans for Next Generation II, the latest upgrade to its “Best of” store upgrade program begun in the early ’90s. Next Gen II, which will begin rolling out in Spring 2003, will feature a major push toward new concepts, including category changes and businesses, brand positioning work, adjacencies, and entirely new product lines. Changes will be accommodated in part by increased retail space from conversion of warehouse space in existing stores.

CTC intends to leverage its name to boost sales in existing stores as new-store growth is expected to slow within the next two-three years. Therefore, pressure will fall on existing stores to generate growth.

Gas bars and car washes will be installed in more stores. One of the areas being investigated is at-home services in related areas, including power equipment after-service. Following a trend among Canadian retailers to softer DIY, CTC will expand its range of home décor products, as well.

* * * * * * * * * *

BUSH CALLED UPON TO RECONSIDER LUMBER RULING

U.S. president George Bush continues to get pressure from special interest groups south of the border opposed to duties on Canadian softwood lumber.

The alliance of American Consumers for Affordable Homes, a 15-member organization that includes Home Depot, CHEP, and the National Association of Home Builders, has urged President Bush to intervene in the Commerce Department’s preliminary decision to impose countervailing duties of 19.3% on softwood lumber imports from Canada.

In a letter to President Bush, the ACAH outlined the impact of the decision on the U.S. economy: duties could reduce GDP from 0.05% to 0.11% — at a time when GDP growth was last reported to be only 0.3%.

The duty’s negative effect on an industry that employs more than seven million workers, and accounts for 5% of the GDP, was stressed. Softwood lumber imports from Canada account for some 35% of U.S. softwood lumber consumption.

A similar appeal was made recently by two ACAH member organizations, Manufactured Housing Institute and Manufacturing Housing Association for Regulatory Reform, pointing out that the cost of a manufactured home has increased by as much as US$2,000 since the duties were imposed.

Upon the April expiration of the U.S./Canada Softwood Lumber Agreement, the U.S. Commerce issued a preliminary ruling on August 10 that put the 19.3% duty in place on Canadian softwood lumber imports.

* * * * * * * * * *

COMPANIES IN THE NEWS

Ace Hardware Canada has signed a supply agreement to provide hardware products to Allroc Building Supplies Ltd. Calgary-based Allroc is a private buying group that serves 91 dealers, including seven in the U.S.

Crane Plumbing Corp. Canada has acquired the major assets of Crane Canada Inc.’s Plumbing Division, based in Stratford, ON. The Evanston, IL-based parent company, Crane Plumbing LLC, announced the acquisition as part of their growth strategy into Canada. The company has a previously-established Canadian unit, Fiat Products Ltd., in Winnipeg, MB.

Janus Flooring Co. has made a deal with CanWel Distribution Ltd. to distribute their IMaGES products, a line of prefinished hardwood flooring. CanWel has 13 distribution centres across Canada.

Home Depot Inc. will acquire Your Other Warehouse (YOW), a Baton Rouge, CA distributor of faucets, fixtures and bath & kitchen accessories. YOW had been supplying two divisions of Home Depot, as well as the retailer’s EXPO Design Centers, with some special order plumbing products. YOW will continue serving its traditional plumbing wholesaler customers. The deal is expected to close in November.

Lowe’s Cos. has reported net earnings of US$329.1 million for the quarter ended August 3, 2001, a 17.7% increase over the same period a year ago. The retailer’s annual sales for 2000 were reported at US$329.1 million.

Willamette Industries Inc. has announced a 21% fall in profits amid sluggish U.S. demand for building materials, packaging and paper. Sales fell to US$1.12 billion from US$1.17 billion a year earlier at the Portland, OR-based company. The company has been battling a hostile takeover bid by rival Weyerhaeuser Co.

Costco Wholesale Corp. has reported a 5% decrease in fourth-quarter earnings, with a net income of US$190.7 million compared with US$200.2 million for the same quarter a year ago. Sales in the quarter rose 5% to US$10.91-billion from $10.41-billion a year-ago. Same-store sales also rose 5%. September same-store sales climbed 4%. Net sales jumped 10% to US$3.26-billion.

* * * * * * * * * *

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.12
Canfor	16.95	7.65	9.10
Emco	7.50	2.60	4.30
Goodfellow	11.00	8.00	8.40
Home Depot	49.74	47.61	41.68
Hudson’s Bay	17.65	12.40	15.40
Lowe’s	64.90	34.25	34.69
Sears Canada	37.25	18.55	15.40
Sodisco-Howden	0.75	2.80	0.75
Taiga Forest	10.00	6.80	10.50
West Fraser	36.50	21.00	31.00

“Do not always assume that the other fellow has intelligence equal to yours. He may have more.”

— Terry-Thomas

* * * * * * * * * *

MARKET INDICATORS

The housing market in Canada continued strong through September, according Royal LePage Real Estate Services of Toronto. Canadian realtors sold more houses in September 2001 than they did the year previous; the only noticeable impact of the economic slowdown so far is a slight softening of demand for houses in the $500,000 to $1-million range. Houses in this price range are still selling, but a little slower than usual.

The new housing price index rose 0.2% in August from July, according to Statistics Canada. Compared with August 2000, this index of contractors’ selling prices increased 2.9%. Monthly rises occurred in 11 of the 21 urban centres surveyed. In Halifax, higher prices for building materials and labour pushed the index up 0.7% over July. Notable advances were also seen in St. Catharines-Niagara (+0.5%), Montréal (+0.3%) and Edmonton (+0.3%).

U.S. retail sales at discount, chain and department stores fell sharply during the five weeks ended October 6, Instinet Research reported in its weekly Redbook Retail Sales Average. The Redbook Retail Sales Average fell 2.5% during this period, compared with August, slightly worse than the 2.3% decline in the first of those weeks.

* * * * * * * * * *

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.

* * * * * * * * * *

PEOPLE ON THE MOVE

Glen French has left Rona Inc. Formerly vice-president merchandising for Rona Retail, he had been re-posted briefly to the Rona Lansing office in Rexdale, following the closing of the consolidation of the Toronto operations. No replacement will be named. (416-241-5129)

Eric Lloyd has joined Kent Building Materials as IT manager. He comes over from GE Reinsurance, replacing Brian McGillivray. (506-632-4100)

Brian McGillivray starts today at Kenroc Building Materials Ltd. in Regina as vice-president operations. He was formerly IT manager at Kent. McGillivray replaces Bruce Bryan, who is retiring, but will remain on during a transition period. (306-525-1415)

Dennis Nykoliation has been appointed president and CEO of GSW Building Products in Barrie, ON. He was formerly president and CEO of CanWel Distribution. He replaces Brian Bacik, who has retired. (705-728-7141)

ProfitMaster Canada has appointed Larry Stewart as regional sales manager for Eastern Canada. He was formerly with Dimensions Retail Systems … Carole Marshall is now Profitmaster’s marketing manager. (204-889-5320)

Geoff Hicks, formerly with Jacuzzi as national wholesale sales manager, is now president and CEO of Cardinal Sales and Marketing. (416-729-8345)

* * * * * * * * * *

NOTED …

The Canadian Hardware & Building Materials Show will host “Just say NO to DIY”, a seminar offering insider information on how to effectively pursue and profit from contractor sales. Peter Turkstra, vice-president of operations for Turkstra Lumber Co., and Mario Giannetti, owner of Preston Hardware, will lead the discussion. Turkstra’s reputation as a top-notch business speaker goes back to his outstanding presentation at the Sixth Annual Hardlines Marketing Conference, a trend-setting event if ever there was one!

* * * * * * * * * *

OVERHEARD …

“Our number-one competition is the tourist industry. The impact of the erosion of tourism will have a positive impact on our industry.”

— Sylvain Toutant, vice-president marketing and development for Réno-Dépôt, observes that the uncertainty surrounding the current world situation will push people to cocoon even more than ever, resulting in greater home improvement expenditures.

* * * * * * * * * *

HARDLINES MARKETPLACE

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

* * * * * * * * * *

SERVICES OFFERED

Noral Marketing:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

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

* * * * * * * * * *

HELP WANTED

MERCHANDISER/SUPERVISOR:

MOST Marketing is looking for an experienced merchandiser/supervisor to service the Leviton line of products for retail stores in the Toronto area market.

This is a contract position. Benefits and remuneration are based on experience. If you’re interested and a hard worker, contact Alain Carle, Merchandising and Servicing Manager, Leviton Manufacturing Canada; 1-800-461-2002 ext. 467; e-mail: acarle@leviton.com. Suitable candidates must have a car, and must be available to travel.

* * * * * * * * * *

MARKETING AND COMMUNICATIONS:

You are a senior marketing professional with many years of retail and contractor experience. As a team player, you possess strong communication, managerial and interpersonal skills. You are a very motivated, ‘hands-on’ individual who will be responsible for developing and executing various marketing programs, including print, radio and television. Strong organizational skills are required for overseeing the budget and critical execution paths. Experience in setting up trade and consumer shows and special events would be an asset.

TIM-BR Mart is the national retail brand for hundreds of building centres across Canada. This Ontario management position is dedicated to ensuring that our stores project a strong retail image in the marketplace. Your goal is to strengthen the TIM-BR Mart brand by making the marketing decisions that provide the best value within the approved budget.

We offer a competitive compensation package and a pleasant working environment. We thank all candidates for their interest; however, only those candidates selected for an interview will be contacted.

Please fax your resumé, in strictest confidence, to the Executive Assistant at the private fax: 905-671-9467 or e-mail to sheenaj@homecare.on.ca

* * * * * * * * * *

OUTSIDE SALES BUILDING MATERIALS, SOUTHWESTERN ONTARIO:

Goodfellow Inc. is looking for a BUILDING MATERIALS SALES REPRESENTATIVE, Southwestern Ontario. Some of the products included in the line are hardwood and flooring, pre-finished siding, composite decking, ceiling tile, lumber and panels.

The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.

Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mmlohmus@goodfellowinc.com; fax: 905-854-6104.

* * * * * * * * * *

VICE-PRESIDENT RESIDENTIAL MARKETS:

Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.

Business is good, and it’s time to add a Sales and Marketing leader to direct the strategic planning process and drive unprecedented growth in both the Retail (DIY, LBM, Mass Merchants and Co-ops) and new home construction (builders, remodelers, home service organizations) channels.

Based in the Canadian corporate office in Toronto, you’ll also provide collaborative input to the U.S. parent for sales and marketing strategy alignment, utilizing their strong brand management support team. In addition, you will develop and direct the Canadian Sales and Trade Marketing group.

Among your verifiable skills are both strategic planning and tactical execution in the home improvement and new construction markets. You’re as comfortable presenting programs in front of the Customer as you are putting forward your plans to the company President for approval. “Hitting the home run” would appropriately describe some of your individual and team-based business successes.

Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.

Please contact Wolf Gugler, quoting file #02-114. Confidentiality is assured. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite 300, Don Mills, ON; M3B 3N7; Phone: 416-386-1719; email: admin@wolfgugler.com; website: http://www.wolfgugler.com

* * * * * * * * * *

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 …

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.

* * * * * * * * * *

EUROPE IS STILL OPEN FOR BUSINESS!

CANADIANS SHOULD BE THERE!

COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

March 3-6, 2002. For show information, contact: Edel Wichmann, 416-598-3343. To book your flight and hotel, call Carol-Ann Itel at Trade Show Travel: 1-877-873-7469; or fax: 403-247-2448 to arrange your trip. Packages include return air fare and accommodations, as well as admission to the Exhibition. BOOK EARLY!

Each package includes an invitation to the internationally famous CANADA NIGHT RECEPTION on Sunday, March 3, 2002, sponsored by Hardlines and Cologne International Trade Shows. A must for EVERY Canuck in Cologne. We’ll see you there!

* * * * * * * * * *

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT).

Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98.

You can pay online by VISA at our secure website: https://hardlines.ca/html/order.html

or send us money. Please make cheque payable to McLarneyCom.

* * * * * * * * * *

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!

* * * * * * * * * *

HARDLINES

Canada’s electronic information service

for home improvement industry

October 15, 2001

Volume vii, #42

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca

* * * * * * * * * *

IN THIS ISSUE …

* Réno-Dépôt defends turf in Montréal market

* Canadian Tire will unveil new program in 2003

* Ace signs buying agreement with Allroc

* Home Depot buys California plumbing wholesaler

* U.S. president gets more pressure to reverse softwood duties

* * * * * * * * * *

DOING YOUR MARKETING STRATEGY?

PLANNING THE BUDGET?

THEN YOU WILL NEED:

– provincial breakouts

– market share by retail format

– growth of the big boxes

– top 10 home improvement retailers

– ranking of buying groups.

* * * * * * * * * *

HARDLINES INDUSTRY REPORT —

HOME IMPROVEMENT RETAILING IN CANADA

(go to https://hardlines.ca/html/industry_report.html)

* * * * * * * * * *

RÉNO-DÉPÔT EXPANDS IN ONTARIO, DEFENDS TURF IN QUÉBEC

* * * * * * * * * *

CANADIAN TIRE WILL REINVENT STORE PROGRAM FOR 2003

* * * * * * * * * *

BUSH CALLED UPON TO RECONSIDER LUMBER RULING

U.S. president George Bush continues to get pressure from special interest groups south of the border opposed to duties on Canadian softwood lumber.

* * * * * * * * * *

COMPANIES IN THE NEWS

Janus Flooring Co. has made a deal with CanWel Distribution Ltd. to distribute their IMaGES products, a line of prefinished hardwood flooring. CanWel has 13 distribution centres across Canada.

* * * * * * * * * *

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.12
Canfor	16.95	7.65	9.10
Emco	7.50	2.60	4.30
Goodfellow	11.00	8.00	8.40
Home Depot	49.74	47.61	41.68
Hudson’s Bay	17.65	12.40	15.40
Lowe’s	64.90	34.25	34.69
Sears Canada	37.25	18.55	15.40
Sodisco-Howden	0.75	2.80	0.75
Taiga Forest	10.00	6.80	10.50
West Fraser	36.50	21.00	31.00

“Do not always assume that the other fellow has intelligence equal to yours. He may have more.”

— Terry-Thomas

* * * * * * * * * *

MARKET INDICATORS

* * * * * * * * * *

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.

* * * * * * * * * *

PEOPLE ON THE MOVE

Eric Lloyd has joined Kent Building Materials as IT manager. He comes over from GE Reinsurance, replacing Brian McGillivray. (506-632-4100)

Geoff Hicks, formerly with Jacuzzi as national wholesale sales manager, is now president and CEO of Cardinal Sales and Marketing. (416-729-8345)

* * * * * * * * * *

NOTED …

* * * * * * * * * *

OVERHEARD …

“Our number-one competition is the tourist industry. The impact of the erosion of tourism will have a positive impact on our industry.”

* * * * * * * * * *

HARDLINES MARKETPLACE

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

* * * * * * * * * *

SERVICES OFFERED

Noral Marketing:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

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

* * * * * * * * * *

HELP WANTED

MERCHANDISER/SUPERVISOR:

MOST Marketing is looking for an experienced merchandiser/supervisor to service the Leviton line of products for retail stores in the Toronto area market.

* * * * * * * * * *

MARKETING AND COMMUNICATIONS:

We offer a competitive compensation package and a pleasant working environment. We thank all candidates for their interest; however, only those candidates selected for an interview will be contacted.

Please fax your resumé, in strictest confidence, to the Executive Assistant at the private fax: 905-671-9467 or e-mail to sheenaj@homecare.on.ca

* * * * * * * * * *

OUTSIDE SALES BUILDING MATERIALS, SOUTHWESTERN ONTARIO:

The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.

Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mmlohmus@goodfellowinc.com; fax: 905-854-6104.

* * * * * * * * * *

VICE-PRESIDENT RESIDENTIAL MARKETS:

Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.

Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.

* * * * * * * * * *

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 …

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.

* * * * * * * * * *

EUROPE IS STILL OPEN FOR BUSINESS!

CANADIANS SHOULD BE THERE!

COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

* * * * * * * * * *

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT).

Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98.

You can pay online by VISA at our secure website: https://hardlines.ca/html/order.html

or send us money. Please make cheque payable to McLarneyCom.

* * * * * * * * * *

THE HARDLINES “FAIR PLAY” POLICY:

* * * * * * * * * *

Oct9_01

HARDLINES

Canada’s electronic information service for home improvement industry

October 8, 2001

Volume vii, #41

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Nelson switches to Sexton

* Ace cracks Calgary market with two store

* TruServ dealers repatriate co-op’s ownership

* Building Box announces sixth Ontario location

* Residential building permits climb in August

* * * * * *

WANT THE BIG PICTURE?

GO TO THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC

March 3-6, 2002. For trade show information, contact: Edel Wichmann, 416-598-3343.

Contact Trade Show Travel to arrange your trip. Packages include return air fare and accommodations, as well as admission to the Exhibition. BOOK EARLY!

Email: tradeshowtravel@home.com Phone (1-877-873-7469) or fax (403-247-1510)

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!

* * * * * *

PLANNING YOUR BUDGET? DOING YOUR MARKETING STRATEGY?

THEN YOU NEED HARDLINES RETAIL REPORT 2001 —

A turnkey PowerPoint presentation to wow your boss at planning time. Beverly said we had to have this after getting so many calls every year from people looking for a snapshot of the market: This CD-ROM presentation looks fabulous: it comes complete with charts, photos and pie charts. It includes:

– size of market, including provincial breakouts

– market share by retail format

– growth and strategies of the big boxes & Canadian Tire

– top 10 home improvement retailers

– ranking of buying groups

A MUST for anyone trying to explain the Canadian market. Priced VERY LOW at only $179 + taxes for Hardlines subscribers! (WAY more expensive for non-subscribers!) Call Nancy Wright at 416.489.3396 or nancy@hardlines.ca to order your CD now.

* * * * * *

“HARDLINES INDUSTRY REPORT – HOME IMPROVEMENT RETAILING IN CANADA”

(To order online, go to https://hardlines.ca/html/industry_report.html)

* * * * * *

This week in Hardlines:

NELSON QUITS TIM-BR-MARTS

FOR SEXTON GROUP

In the wake of its recent acquisition of SRI Homes Inc., Nelson Lumber Co. in Lloydminster, AB has joined the Sexton Group, adding approximately $170 million in top-line sales to the Winnipeg-based buying group.

The retailer was previously affiliated with Tim-BR-Marts while SRI had originally been a Sexton member, bringing $35 million in sales to that group.

“There was a need to re-assess who our buying group would be because we were controlling a much larger buying power,” says Brian Holterhus, CFO and co-CEO of Nelson.

Nelson, which operates five building supply outlets and three manufacturing plants, finalized the acquisition of SRI Homes in May of this year, after eight months of negotiations. The deal expanded Nelson’s manufacturing facilities to Winfield, BC, Lethbridge, AB, and Estevan, SK. The company also bought a truss facility in Barrie, ON earlier in January 2001.

“We grew significantly in combining with SRI,” adds Holterhus. Sales totals for the retailer were $94 million in 2000, while projected sales from the combined company for 2001 are expected to reach $170-180 million.

In addition to Nelson Lumber, the Sexton Group has announced three other new members since July: Macleod’s True Value, Atikokan, ON; Norfab Building Components, Fort Frances, ON; and Arcola Building Supplies Ltd., Arcola, SK. The additions bring Sexton’s total projected retail sales to $1.185 billion.

______________________________________________

ACE FINE-TUNES URBAN FORMAT

WITH NEW CALGARY STORES

With an eye to urban centres, Ace Hardware Canada will open two new locations in Calgary. The stand-alone stores, both in shopping malls, are larger than a typical Ace store: with more than 10,000 sq.ft. of space, they are big enough to include some soft product categories meant to interest the urban shopper — particularly women.

Ace has planned these stores to include a full hardware assortment and rental shop, along with an AGFA photo finishing facility, an expanded house wares program and a heavy seasonal goods presence. In keeping with Ace’s supply chain deal with Growmark, the stores will also carry work wear and pet supplies.

“This is an exciting move for Ace,” says Dunc Wilson, vice-president merchandising and marketing, Ace Hardware Canada. “These stores act as a starting point for the company’s move back into the urban market. We think this is the prototype for the urban store of the future.”

Both stores are slated for a soft opening November 1st and a grand opening on November 15th. They bring the count of Ace’s bannered stores in Canada to 11. The dealer is Albert Boire, formerly with Beaver Lumber, who has invested in the stores with two partners.

______________________________________________

TRUSERV DEALERS WILL SOON BE

MASTERS OF THEIR DOMAIN

TruServ Canada will soon be able to call itself a 100% Canadian, dealer-owned organization.

The termination of TruServ’s financing deal from its U.S. counterpart will occur within the next few months. A high percentage of the co-op’s 530 members approved a vote for a buyout of all U.S.-owned shares for an undisclosed amount.

TruServ’s origins date back to MacLeod-Stedman Inc., which went under in 1991 and threatened to leave its Macleods hardware and Stedman junior department store dealers high and dry. TruServ in the U.S., then called Cotter & Co., made a deal with the receiver and bought out the company. The Canadian co-op has been paying off debt, as well as royalties, ever since.

“The association, from an external standpoint, will not be financially different,” says Leo Charriere, COO, TruServ Canada. “The company will continue to carry the TruServ banner, as well as distribute TruServ paint.”

The only difference will be in the change of their financial relationship. TruServ Canada currently has 530 stores and $465 million in annual retail sales.

______________________________________________

COMPANIES IN THE NEWS

The Building Box has announced its sixth location in Ontario — a 109,000-sq.ft. store in Windsor that is scheduled to open in Spring 2002. The new store will have a 30,000-sq.ft. greenhouse and more than 55,000 SKUs. Two more stores, in London and Mississauga, ON, are scheduled to open in November 2001.

Sico Inc. has purchased Bétonel Ltd., a Québec-based manufacturer of architectural coatings with a network of franchised and corporate specialty stores. Bétonel has annual sales of $27 million, 70% to professionals. The transaction, worth $13.5 million, will close in late November. Bétonel is Sico’s fourth acquisition since December 2000. The others are Chemcraft International Inc., Sico’s interest in the Mexico-based Pinturas Industriales Sicorel S.A. de C.V. and Blancomme S.A., a public transit and rail coatings business.

Silk Systems has acquired all outstanding shares of Dimensions Retail Systems Inc. in London, ON for an undisclosed amount. Silk, based in Coquitlam, BC, provides business management information systems to a range of sectors, including distribution, retail and equipment. The takeover gives Silk presence in Central Canada to serve a growing base of customers there. Dimensions is expected to operate unchanged, providing business software to hardware and home improvement retailers nationwide.

Shares of Willamette Industries Inc. jumped 5.5% last week, on word that a large shareholder’s estate had asked executives to explore selling the paper products company to hostile suitor Weyerhaeuser Inc. for US$55 per share. Willamette has been trying to fend off hostile takeover advances from Weyerhaeuser since last November, when the Washington-based timber company first offered to buy Oregon-based Willamette for US$48 per share. Weyerhaeuser sweetened its bid to US$50 per share in May.

Wal-Mart Canada has unveiled seven new stores in the communities of Courtenay, Vernon, and Quesnel, BC; Cold Lake, AB; St. Thomas, ON; Jonquiere, QC; and Halifax, NS. The new stores will bring Wal-Mart Canada’s nationwide store count to 186. The retailer expects to open seven more stores before the end of the year.

Wal-Mart Stores Inc. has announced that sales at stores open for a least a year were “on plan” for the third week in September. Same-store sales rose 4%. The company plans to open 50 new discount stores and 180-185 new super centres next year, increasing its plan for super store openings due to strong financial results from the format. The plan represents 46 million square feet, or a 9% increase in capacity.

EXPO Design Centers, the upscale interior design and décor chain that is part of Home Depot, has launched a new website, www.EXPO.com. The site offers company information and the opportunity to purchase a select group of 200 products online. Visitors will find various product categories: ready-made drapery, bathroom and kitchen faucets, lamps, ceiling fans and accessories.

Home furnishings retailer Williams-Sonoma Inc. said it expects third-quarter and full-year earnings to match the company’s forecasts, but said sales would fall short of expectations amid volatile selling conditions. The company is forecasting revenues of between US$460 million and US$470 million. It previously forecast US$478 million to US$492 million.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.50
Canfor	16.95	7.65	9.00
Emco	7.50	2.60	4.60
Goodfellow	11.00	8.00	8.84
Home Depot	49.74	47.61	39.41
Hudson’s Bay	17.65	12.40	14.10
Lowe’s	64.90	34.25	32.30
Sears Canada	37.25	18.55	13.60
Taiga Forest	10.00	6.80	9.50
West Fraser	36.50	21.00	31.50

______________________________________________

“A prosperous fool is a grievous burden.”

—Aeschylus (525-456 B.C.)

______________________________________________

MARKET INDICATORS

Builders took out $3.3 billion worth of building permits in August, a 4.4% decline that has halted four consecutive months of increases. However, the decline was due to a drop in non-residential permits, which fell 11.9% to $1.4 billion. In contrast, both single- and multi-family dwelling construction intentions rose, lifting the value of housing permits 2.5% to $1.8 billion. Year-to-date, municipalities issued building permits worth $26.8 billion during the first eight months of 2001, up 11.2% from the same period in 2000. This was the highest cumulative level for any January-to-August period since 1989. Both the residential and non-residential sectors showed advances year-to-date.

Department store sales totalled $1.68 billion seasonally adjusted in August, down 2.9% from July. This decline is the first in six months. Year over year, sales were up 10.4% in August compared with August 2000, with advances in all provinces.

U.S. chain store sales fell in the latest week, but less sharply than in the two preceding weeks, indicating the impact of the Sept. 11 attacks on retail sales may be moderate. U.S. chain store sales inched 0.2% lower during the week ended Sept. 29. The sales index also slipped, to 393.0 from 393.6 in the previous week. On a year-over-year basis, the index rose 2.4%, below the prior week’s gain of 2.6%.

* * * * * *

INDUSTRY NEWS. EVERY DAY —

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

ProfitMaster Canada has appointed Larry Stewart as regional sales manager for Eastern Canada. Stewart, formerly at Dimensions Retail Systems, has served the specialized retail computer systems market for eight years and has over two decades of experience in the building products industry. (204-889-5320)

CGC Inc. has announced the following personnel changes: Mike Garvey, formerly director, corporate accounts and marketing, has been promoted to director, marketing and technical services … Bill Miculescu, formerly national account manager — eastern area, has been promoted to manager, corporate accounts … Tony Anderson, formerly product manager, interior finishes, has been promoted to sales manager, British Columbia … Max Martin, formerly product manager, suspension systems, has been promoted to sales manager, Quebec … Larry Dean, formerly sales manager British Columbia, has been named product manager suspension systems … Matt Jameson, formerly market sales representative, has been promoted to product manager, interior finishes … Doug Skrepnek, formerly director, sales and marketing, has been named vice-president, sales and marketing.

Pierre Racette has left his position as vice-president marketing at Sodisco Howden Group and returned to the gypsum industry with a position in New Mexico. No replacement has been named yet. (514-286-8986)

Geoff Hicks, who spent four years at Jacuzzi as national wholesale sales manager, is now president & CEO of Cardinal Sales and Marketing. The position with Jacuzzi was eliminated, so there’s no replacement there. Cardinal Sales represents Hunter Technology in eastern Ontario and the GTA. (905-338-9797)

Dave Rimmer has been appointed National Retail Sales Manager, Canada, for Ingersoll-Rand Security & Safety. He joined the retail team of IR Security & Safety in 1998 as retail national account manager and in was most recently sales manager, national accounts. (905-278-6128)

______________________________________________

NOTED …

You might want to think about your long-term trip plans now. Rates are incredibly low for airline travel, including the International Hardware show, Cologne, Germany, March 3-6, 2002. For more info, email Carol-Ann at: tradeshowtravel@home.com

The Walls Windows Furnishings Association is offering two certification courses scheduled prior to the opening of the Canadian Hardware & Building Materials Show/Décor Showcase. The courses, focusing on window treatment and wall-décor consultant certification, are being presented by the CRHA, the PDRA and WWFA. Presenters include Wallpaper Guru, and former editor of WALLpaper magazine Marita Thomas; Jeff Keelan of the Zinser Company, who specializes in adhesives; and Neil Cody of Living with Faux. Courses will take place at the Toronto Colony Hotel, Toronto. CHS/Decor Showcase opens February 3rd to 5th at The National Trade Centre, Toronto.

______________________________________________

OVERHEARD …

The economic perspective looks very uncertain. But it could be that the DIY market is not affected too much. In the short term, consumers may fear to go to stores for two or three months. Thereafter, we believe that they could spend more money in their home. It is what happened during the Gulf war. But the scenario could be different if there is a new event/attack. When are you coming to Europe?

— Yves Rambaud, Fediyma, in follow-up correspondence to our Hardlines Conference, where Gilles Caille, president of Fediyma, gave a presentation via teleconference.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201

* * * * * *

OUTSIDE SALES BUILDING MATERIALS,

SOUTHWESTERN ONTARIO:

The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.

Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mlohmus@goodfellowinc.com; fax: 905-854-6104.

* * * * * *

VICE-PRESIDENT RESIDENTIAL MARKETS:

Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.

Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.

* * * * * *

RETAIL SALES CONSULTANT:

Ace Hardware Canada Ltd., a worldwide leader in hardware supply and distribution with operations in Markham, Brantford and Calgary, has an immediate vacancy for the position of RETAIL SALES CONSULTANT–Saskatchewan and Manitoba Region.

As the successful candidate, you will have five or more years sales experience in the wholesale hardware or LBM Industry with extensive knowledge of how to provide effective support to retail hardware customers. At Ace Canada, “effective support” means listening and responding to the needs of our customers; attending to detail and providing consistent follow-up. You have a reasonable knowledge of how to use computers to advantage; and most of all, you are highly organized and capable of working both independently and as part of the team.

Ace Canada offers a competitive compensation package and career potential. If you are qualified for this position, please fax or e-mail your résumé, including salary history/expectations to: Vice-President, Operations and Administration, Ace Hardware Canada Ltd., 80 Micro Court, 3rd Floor, Markham, ON; L3R 9Z5; fax 905-475-2721; e-mail: stan.sauer@acehardware.ca

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to industry eyes.

Over 3,000 executives in the industry come in contact with our email and fax publications …

… and have you seen our Marketplace in our new website? https://hardlines.ca/html/classifieds_new.asp

Publish your ad where it matters. Get industry exposure today.

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

HARDLINES

Canada’s electronic information service for home improvement industry

October 8, 2001

Volume vii, #41

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Nelson switches to Sexton

* Ace cracks Calgary market with two store

* TruServ dealers repatriate co-op’s ownership

* Building Box announces sixth Ontario location

* Residential building permits climb in August

* * * * * *

WANT THE BIG PICTURE?

GO TO THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC

March 3-6, 2002. For trade show information, contact: Edel Wichmann, 416-598-3343.

Contact Trade Show Travel to arrange your trip. Packages include return air fare and accommodations, as well as admission to the Exhibition. BOOK EARLY!

Email: tradeshowtravel@home.com Phone (1-877-873-7469) or fax (403-247-1510)

* * * * * *

PLANNING YOUR BUDGET? DOING YOUR MARKETING STRATEGY?

THEN YOU NEED HARDLINES RETAIL REPORT 2001 —

– size of market, including provincial breakouts

– market share by retail format

– growth and strategies of the big boxes & Canadian Tire

– top 10 home improvement retailers

– ranking of buying groups

* * * * * *

“HARDLINES INDUSTRY REPORT – HOME IMPROVEMENT RETAILING IN CANADA”

(To order online, go to https://hardlines.ca/html/industry_report.html)

* * * * * *

This week in Hardlines:

NELSON QUITS TIM-BR-MARTS

FOR SEXTON GROUP

The retailer was previously affiliated with Tim-BR-Marts while SRI had originally been a Sexton member, bringing $35 million in sales to that group.

“There was a need to re-assess who our buying group would be because we were controlling a much larger buying power,” says Brian Holterhus, CFO and co-CEO of Nelson.

______________________________________________

ACE FINE-TUNES URBAN FORMAT

WITH NEW CALGARY STORES

______________________________________________

TRUSERV DEALERS WILL SOON BE

MASTERS OF THEIR DOMAIN

TruServ Canada will soon be able to call itself a 100% Canadian, dealer-owned organization.

The only difference will be in the change of their financial relationship. TruServ Canada currently has 530 stores and $465 million in annual retail sales.

______________________________________________

COMPANIES IN THE NEWS

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.50
Canfor	16.95	7.65	9.00
Emco	7.50	2.60	4.60
Goodfellow	11.00	8.00	8.84
Home Depot	49.74	47.61	39.41
Hudson’s Bay	17.65	12.40	14.10
Lowe’s	64.90	34.25	32.30
Sears Canada	37.25	18.55	13.60
Taiga Forest	10.00	6.80	9.50
West Fraser	36.50	21.00	31.50

______________________________________________

“A prosperous fool is a grievous burden.”

—Aeschylus (525-456 B.C.)

______________________________________________

MARKET INDICATORS

* * * * * *

INDUSTRY NEWS. EVERY DAY —

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

______________________________________________

NOTED …

______________________________________________

OVERHEARD …

— Yves Rambaud, Fediyma, in follow-up correspondence to our Hardlines Conference, where Gilles Caille, president of Fediyma, gave a presentation via teleconference.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201

* * * * * *

OUTSIDE SALES BUILDING MATERIALS,

SOUTHWESTERN ONTARIO:

The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.

Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mlohmus@goodfellowinc.com; fax: 905-854-6104.

* * * * * *

VICE-PRESIDENT RESIDENTIAL MARKETS:

Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.

Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.

* * * * * *

RETAIL SALES CONSULTANT:

* * * * * *

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.

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Oct1_01

HARDLINES

Canada’s electronic information service for home improvement industry

October 1, 2001

Volume vii, #40

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Canadian Tire’s new strategy includes possible acquisitions, geographic expansion

* Home Hardware puts push on Home Furniture stores

* Canfor adopts CSA forestry certification

* Rona looks to other banners for new recruits

* * * * * *

WANT THE BIG PICTURE?

GO TO THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

Contact Trade Show Travel by phone (1-877-873-7469) or fax (403-247-1510) to arrange your trip. Packages include return air fare and accommodations, as well as admission to the Exhibition. BOOK EARLY!

Packages also include an invitation to the internationally famous Canada Night Reception, sponsored by Hardlines and Cologne International Trade Shows. We’ll see you in Cologne.

* * * * * *

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU NEED HARDLINES RETAIL REPORT 2001 –

– size of market, including provincial breakouts

– market share by retail format

– growth and strategies of the big boxes & Canadian Tire

– top 10 home improvement retailers

– ranking of buying groups

A MUST for anyone trying to explain the Canadian market. Priced VERY LOW at only $179 + taxes for Hardlines subscribers! (WAY more expensive for non-subscribers!) Call 416.489.3396 or nancy@hardlines.ca to order your CD now.

* * * * * *

“HARDLINES INDUSTRY REPORT – HOME IMPROVEMENT RETAILING IN CANADA”

This huge report offers a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends – and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers! For more information, contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396.

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

HOME FURNITURE BOOSTS SELECTION,

LAUNCHES AD CAMPAIGN

Home Furniture, the specialty home furnishings banner of Home Hardware Stores, is trying to raise its consumer profile with a beefed up catalogue, an expanded private label program and more emphasis on home décor items.

It’s also trying to add dealers: five new stores have come on board already this year, in addition to seven last year, for a total of 60. Home is also eyeing the Toronto market and is looking for sites in the GTA that can be developed for new stores.

Home Furniture’s own furniture brand, Premier Collection, is being expanded to feature more styles and fabric choices. Home’s Paint Experts program, a fixture in its hardware and building centre outlets, is also being promoted to Home Furniture dealers. And with more than 50% of its sales coming from special orders, Home has expanded the range of fabrics and colours consumers can choose from. The chain has launched its first advertising campaign this Fall, which includes a twice-a-year four-colour catalogue.

______________________________________________

CANADIAN TIRE STRATEGY INCLUDES SLOWER

RETAIL EXPANSION, POSSIBLE STRATEGIC ALLIANCES

A pitch to Bay Street analysts last week revealed Canadian Tire’s plans to realize annual revenue increases of at least 10% from 2001 to 2005, and profit increases of up to 15% per year. The presentation was headed up by Canadian Tire’s president and CEO Wayne Sales, who has been at the helm for one year following the exit of his predecessor, Stephen Bachand.

Sales said the company is on target to achieve a 7%-9% increase in profits this year, while sales are expected to rise 6%-8%.

The strategy will pay more attention to its credit card and petroleum businesses. Fine tuning of the merchandising will be seen on Canadian Tire’s shelves by next Spring, with emphasis on more upscale product categories and increased retail space in existing stores. The equity of the Canadian Tire brand in Canada is pushing the company to consider completely new businesses, services and product lines.

Nor does the company rule out the possibility of an acquisition in the U.S. or a strategic partnership. In fact, it is evaluating new opportunities even now that could take it outside of Canada, in either existing businesses or start-ups.

With an eye on U.S. retailers like Target, CTC wants to exploit the huge growth potential it sees in house wares. One way will be with the introduction of “Persona,” a new brand for CTC’s private-label house wares products. The brand will be applied to everything from cookware to small kitchen appliances. Some trimming of SKUs in the existing assortment will take place to make room for a wider selection of products, including more upscale assortments, in both national brands and Persona.

Other things to watch for in Spring 2002 will include changes to the automotive section, with more emphasis on high performance accessories, and custom kits. More emphasis will be placed on national brands and a décor-based paint selection, including Pratt & Lambert, Martha Stewart and Thompson. Décor will be enhanced further by the presence of designer names such as Laura Ashley.

According to Mark Foote, president of Canadian Tire Retail, the company will take a page from the big box book by converting some of the warehouse space in its stores to retail. About 40% of the larger stores, for example, are dedicated to the back room. By turning anywhere from one-half to two-thirds of that space into retail, Foote says the company could make room for the new products and proposed new services. The added sales, he says, could boost the top line by up to $800 million.

______________________________________________

CANFOR FIRST TO APPLY NEW CSA

FOREST CERTIFICATION PROGRAM

Canadian Forest Products Ltd. (Canfor) has become the first company to apply CSA’s new sustainable Forest Management Mark. The new program tracks products from a CAN/CSA-Z809-certified forest through all phases of ownership, transportation and transformation prior to reaching the consumer.

The mark will appear on the packaging of products being produced at Canfor’s sawmill in Grande Prairie, AB. The sawmill produces 210 million board feet of dimension lumber a year for customers such as Totem, Home Depot, Lowe’s, Wickes, 84 Lumber and Carolina Holdings.

CSA introduced its marking program in July of this year. CAN/CSA-Z809 forest certification has been in place since 1996. More than 5 million hectares of Canadian forests have been certified to this standard in the last five years.

______________________________________________

QUICK FIX FOR LUMBER THROES

MEETS COLD RECEPTION BY OTTAWA

Doman Industries Ltd., a B.C. coastal lumber producer, has called on the federal government to negotiate an export tax on softwood lumber with the U.S. Lumber industry representatives south of the border have also called on such a tax as an interim step to a long-lasting deal.

The proposed 15% tax would be levied on exports when the price falls below US$250 per 1,000 board feet, which, according to estimates, happens 10%-20% of the time. The tax would be in place for two years while a binational panel sought a permanent solution.

About 2,000 of Doman’s workers, approximately half its labour force, have been laid off throughout the drawn-out talks between Ottawa and Washington. A swift solution that brings the industry back to working order is the basis of the appeal.

Ottawa, however, seems intent on discussions that bring about a long-term solution.

“Minister Pettigrew has suggested many times that we need more than a quick fix,” said Sébastien Théberge, spokesman for Pierre Pettigrew, Minister for International Trade. “There’s never been a consensus [among provinces and industry] on an export tax.”

_____________________________________________

COMPANIES IN THE NEWS

Rona says it will have more announcements within the next several weeks as it steps up its recruitment drive for new dealers. Continued growth is less likely to come from acquisitions at this time, as the company struggles to rationalize the operations of five different companies into one. Instead, growth is likely to come from existing independents who wish to switch banners in favour of Rona. A big push is being put on Rona’s presence in Western Canada. Also: Rona will break ground on its Gloucester and Mississauga big box stores in next few weeks for opening in Spring 2002 (no word on the Kingston, ON store).

Hudson’s Bay Co. has selected two agencies to give a boost to the promotion of its new loyalty program, HBC Rewards. Padulo Integrated Inc. will handle the retailer’s overall positioning and general advertising, while Vickers & Benson will be the agency of record for direct marketing and in-store initiatives.

Richelieu Hardware has posted strong results for its third quarter, with sales totalling $58.5 million, up 15.7% over 2000. Results for the first nine months saw sales rise 15.3% to $164.6 million. Net earnings grew 17.3% to $10.2 million.

Bed Bath & Beyond Inc. reported its second-quarter profits rose 24%, boosted by relatively strong sales in an otherwise difficult U.S. retail environment. The retailer, which sells bed linen, bath accessories and kitchen items in 359 U.S. stores, said its 2Q net income rose to US$54.0 million from US$43.6 million.

Japanese newspaper Yomiuri Shimbun has reported that Wal-Mart and Mycal Corp., a failed Japanese supermarket operator, were working out a deal which could result in Wal-Mart taking over 96 profitable stores while shutting 48 other Mycal outlets. The U.S. retailer plans to make a decision by the end of September. The US$850.8 million purchase of the country’s fourth-largest supermarket chain operator will represent Wal-Mart’s first foothold in the lucrative Japanese market.

Drugstore chain Walgreen Co. has joined Wal-Mart Stores Inc. in refusing to accept debit cards on the Visa Interlink network. The companies viewed Visa’s new strategy as anti-consumer, since the new structure will result in doubled transaction costs for retailers. Customers can still use Interlink debit cards if they sign a receipt at the checkout counter.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	24.07
Canfor	16.95	7.65	9.05
Emco	7.50	2.60	4.00
Goodfellow	11.00	8.00	8.65
Home Depot	49.74	47.61	38.37
Hudson’s Bay	17.65	12.40	15.39
Lowe’s	64.90	34.25	31.65
Sears Canada	37.25	18.55	13.85
Taiga Forest	10.00	6.80	7.50
West Fraser	36.50	21.00	31.62

______________________________________________

“Fanatics seldom laugh. They never laugh at themselves.”

– James M. Gillis (American writer)

“If you can’t laugh at yourself, someone else will.”

– Mr. Toronto

______________________________________________

MARKET INDICATORS

The Composite Index was flat in August for the second month in a row, according Statistics Canada. Three of the four components that rose were related to household demand. Manufacturing continued to contract, as did business services. The housing index returned to the positive trend it has shown most of the year. Housing starts rebounded in August, regaining almost all of the ground lost in July. Spending on durable goods was restrained by the slack in incomes and labour market conditions. Spending on both furniture and appliances and other durable goods slowed further.

The Canadian Construction Association has released construction growth rate and employment projections that show industry decreases until 2003. The projections reveal that construction GDP is expected to shrink by 1.4% in 2001, and grow by only 1% in 2002 and 1.7% in 2003. By 2004, GDP is expected to climb to 3.1% and 2.8% in 2006.

U.S. consumer confidence fell sharply in September, suffering its largest one-month drop since October 1990, during the Gulf crisis. The Conference Board, a New York-based private business research group, said its monthly index of consumer confidence fell 16.4 points to 97.6 in September, from a downwardly-revised 114.0 in August. This was the lowest reading since January 1996. Wall Street economists had forecast a fall to 105.1.

Sales of existing homes in the U.S. rose at a record pace in the month of August, increasing 5.8% to a seasonally adjusted annual rate of 5.5 million units from a revised rate of 5.2 million units in July. The increase in the pace of existing home sales contrasted with a 6.9% drop in housing starts in August reported by the Commerce Department last week.

* * * * * *

INDUSTRY NEWS. EVERY DAY –

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

Jim McCrea has accepted the position of aftermarket sales manager, North America for Philips Automotive Lighting in Detroit, MI. He will report to David Davoudi, the new general manager of Philips Automotive Lighting for North America. Davoudi replaces Frank Hiemstra, who will be retiring this year. (1-800-555-0050)

CORRECTION: Paul Secen has been promoted to national marketing manager for Stanley Hardware and Stanley Tools. He was formerly at Stanley Works Global Procurement, purchased products. (905-825-1981)

______________________________________________

OVERHEARD …

… “The importance of new products? It’s huge. It’s all about new product development, innovation.”

– Mark Foote, president of Canadian Tire Retail, while walking the floor of last week’s dealer market in Toronto. He adds that this pursuit of innovation requires a lot of travel to the Orient and to European shows for new ideas.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201

* * * * * *

OUTSIDE SALES BUILDING MATERIALS,

SOUTHWESTERN ONTARIO:

The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.

Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mlohmus@goodfellowinc.com; fax: 905-854-6104.

* * * * * *

VICE-PRESIDENT RESIDENTIAL MARKETS:

Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.

Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.

* * * * * *

RETAIL SALES CONSULTANT:

* * * * * *

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.

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!

______________________________________________

HARDLINES

Canada’s electronic information service for home improvement industry

October 1, 2001

Volume vii, #40

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Canadian Tire’s new strategy includes possible acquisitions, geographic expansion

* Home Hardware puts push on Home Furniture stores

* Canfor adopts CSA forestry certification

* Rona looks to other banners for new recruits

* * * * * *

WANT THE BIG PICTURE?

GO TO THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC:

Packages also include an invitation to the internationally famous Canada Night Reception, sponsored by Hardlines and Cologne International Trade Shows. We’ll see you in Cologne.

* * * * * *

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU NEED HARDLINES RETAIL REPORT 2001 –

– size of market, including provincial breakouts

– market share by retail format

– growth and strategies of the big boxes & Canadian Tire

– top 10 home improvement retailers

– ranking of buying groups

* * * * * *

“HARDLINES INDUSTRY REPORT – HOME IMPROVEMENT RETAILING IN CANADA”

This huge report offers a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends – and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers! For more information, contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396.

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

HOME FURNITURE BOOSTS SELECTION,

LAUNCHES AD CAMPAIGN

______________________________________________

CANADIAN TIRE STRATEGY INCLUDES SLOWER

RETAIL EXPANSION, POSSIBLE STRATEGIC ALLIANCES

Sales said the company is on target to achieve a 7%-9% increase in profits this year, while sales are expected to rise 6%-8%.

______________________________________________

CANFOR FIRST TO APPLY NEW CSA

FOREST CERTIFICATION PROGRAM

______________________________________________

QUICK FIX FOR LUMBER THROES

MEETS COLD RECEPTION BY OTTAWA

Ottawa, however, seems intent on discussions that bring about a long-term solution.

_____________________________________________

COMPANIES IN THE NEWS

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	24.07
Canfor	16.95	7.65	9.05
Emco	7.50	2.60	4.00
Goodfellow	11.00	8.00	8.65
Home Depot	49.74	47.61	38.37
Hudson’s Bay	17.65	12.40	15.39
Lowe’s	64.90	34.25	31.65
Sears Canada	37.25	18.55	13.85
Taiga Forest	10.00	6.80	7.50
West Fraser	36.50	21.00	31.62

______________________________________________

“Fanatics seldom laugh. They never laugh at themselves.”

– James M. Gillis (American writer)

“If you can’t laugh at yourself, someone else will.”

– Mr. Toronto

______________________________________________

MARKET INDICATORS

* * * * * *

INDUSTRY NEWS. EVERY DAY –

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

CORRECTION: Paul Secen has been promoted to national marketing manager for Stanley Hardware and Stanley Tools. He was formerly at Stanley Works Global Procurement, purchased products. (905-825-1981)

______________________________________________

OVERHEARD …

… “The importance of new products? It’s huge. It’s all about new product development, innovation.”

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201

* * * * * *

OUTSIDE SALES BUILDING MATERIALS,

SOUTHWESTERN ONTARIO:

The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.

Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mlohmus@goodfellowinc.com; fax: 905-854-6104.

* * * * * *

VICE-PRESIDENT RESIDENTIAL MARKETS:

Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.

Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.

* * * * * *

RETAIL SALES CONSULTANT:

* * * * * *

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.

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!

______________________________________________

Sept24_01

HARDLINES

Canada’s electronic information service for home improvement industry

September 24, 2001

Volume vii, #39

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Rona to announce new branding strategy for Ontario stores

* Dekor chain folds its doors in the U.S.

* Rona buys Stockyards store from West Fraser

* Home Hardware puts push on Home Furniture stores

* * * * * *

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED:

HARDLINES RETAIL REPORT 2001 — a turnkey PowerPoint presentation to wow your boss at planning time. This handy little presentation will give you an instant overview of the size of the market complete with charts and photos. Includes provincial breakouts, market share by retail format, growth of the big boxes, top 10 home improvement retailers and ranking of buying groups. A MUST for anyone trying to explain the Canadian market. Only $179 + taxes for Hardlines subscribers! Call 416.489.3396 to order your CD now.

“HARDLINES INDUSTRY REPORT – HOME IMPROVEMENT RETAILING IN CANADA”

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

RONA PREPARES TO SWITCH LANSING AND REVY

Rona will unveil its brand strategy for English Canada this week. The official announcement will come during the Toronto Home Show on Wednesday. However, Rona chairman Henri Drouin gave a preview of the plan to delegates at the Hardlines Marketing Conference two weeks earlier.

The announcement will involve change of Ontario Revy stores to Rona Home & Garden. The Lansing banner, a familiar one in the Toronto market since its inception in 1951, will also get consolidated, re-emerging as Rona Lansing. Revy and Revelstoke stores in Western Canada, where the name is well established, will convert on a more gradual basis.

Debate has surrounded the switching of the Lansing name. However, Cashway, another venerable name in Ontario, quickly got switched to Rona Cashway, following that takeover back in February 2000. Rona also has more than 100 traditional hardware stores and building centres in Ontario.

Rona’s experimental Home Solutions concept will not be rolled out beyond the one store in Brampton, ON. However, it has become a case study for the outer limits of “soft-DIY” merchandising, with aspects of women-friendly, style-oriented décor that will be carried over into its new big box Rona Warehouse stores, which are scheduled to open in Mississauga, Gloucester and Kingston, ON by Spring 2002.

______________________________________________

DEKOR CALLS IT QUITS BUT

OUTLOOK FOR SOFT DIY REMAINS STRONG

Dekor, the soft-DIY chain opened by former Home Depot executives Herb Biggers and Jim Inglis, has closed its doors. “We ran out of money in time to make it work,” Biggers told an Atlanta newspaper.

Dekor touted itself as the harbinger of an industry-wide shift from do-it-yourself stores executed as warehouses. Averaging 80,000-sq.ft., the Dekor stores were designed to create to a women-oriented, “do-it-for-me” shopping experience.

The chain wowed the Atlanta scene when it opened four stores last January. But by early July, Dekor had laid off about 20% of its staff, closed its Douglasville, GA store, and postponed plans to expand in the Nashville area. Employees showed up for work last Monday morning only to find that the stores had been closed. Severance packages were not offered.

Biggers said Dekor has options and is exploring alternatives. Dekor could consider selling the chain or filing for bankruptcy. “We anticipate a resolution in a week,” Biggers said. “We have very large investors. Selling the company is clearly one of the options we have been pursuing.”

The financial difficulties have occurred despite a recently announced investment in the company by U.K. retail giant Kingfisher.

______________________________________________

RONA BUYS STOCKYARDS REVY STORE

Rona has taken back one maverick store not included in the original purchase from West Fraser Timber. An agreement in principle took effect September 19th whereby Rona purchased all the assets, including an estimated $6 million in inventory, of the Revy Home & Garden warehouse at Toronto’s Stockyards property. The deal does not include the building or the land, which is leased. The amount of the deal was not disclosed.

Sylvain Morissette, director of communications at Rona, originally said the store did not meet performance levels considered acceptable by Rona. Its sales are reportedly below $20 million. In addition, the store sits in a power centre alongside one of the highest-performing Home Depot stores in Canada and a Canadian Tire that also has reportedly high sales. Unfortunately, the Revy store sits at the end of a lane past its competitors and has yet to capitalize fully on the site’s location. A cutback in Revy’s advertising in the Toronto area has further challenged the store’s ability to grow its sales.

When Rona completed its acquisition of Revy Home Centres, there were six stores not included in the deal. The rest of the stores are in the West and remain in the hands of West Fraser.

_____________________________________________

COMPANIES IN THE NEWS

Home Hardware cut the ribbon on the latest expansion of its St. Jacobs, ON distribution centre this morning. The size of the Henry Sittler Building was increased by 96,000 sq.ft. to a total of 230,000 sq.ft., in part to accommodate the growth of Home Hardware’s semi-annual dealer markets. The Fall market is on currently and features more than 850 vendors.

Sears has opened its 118th store, this one in North Bay, ON. The 90,000-sq.ft. outlet reflects a $13 million investment that will include a “Brand Central” store-within-a-store featuring national brand appliances.

Kindred Industries, owned by the Franke Group of Switzerland, has announced a four-year investment plan that will put $25 million into its 124,000-sq.ft. facility in Midland, ON.

Shares of Lowe’s Cos. Inc. rose last week after a Deutsche Bank report raised its rating on the retailer. The report said Lowe’s has reduced its operating return-on-assets gap with Home Depot over the past seven quarters, and added that in the first half of 2001, Lowe’s new store productivity averaged 76%, compared with 60% for Home Depot. Lowe’s is currently opening stores in major metropolitan markets where Home Depot has had a presence for years. Currently, just 20% of Lowe’s stores are in major markets, compared with 43% of Home Depot’s stores.

Lowe’s Cos. in the U.S. has announced that all 713 stores nationwide will serve as official cash donation sites for the American Red Cross. The retailer joins an extensive list of companies contributing to U.S. relief efforts.

______________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	21.29
Canfor	16.95	7.65	9.50
Emco	7.50	2.60	5.30
Goodfellow	11.00	8.00	8.65
Home Depot	49.74	47.61	33.11
Hudson’s Bay	17.65	12.40	14.31
Lowe’s	64.90	34.25	31.86
Sears Canada	37.25	18.55	13.20
Taiga Forest	10.00	6.80	7.60
West Fraser	36.50	21.00	32.50

______________________________________________

“Never think that war, no matter necessary, nor how justified, is not a crime.”

— Ernest Hemingway

______________________________________________

MARKET INDICATORS

Retail sales fell for the second month in a row in July, says Stats Canada, reflecting lower sales by gas stations in both months. Retailers sold $24.1 billion worth of goods and services in July, 0.5% less than in June. The declines in July and June were preceded by six months of rapidly advancing sales. From January to July, retailers have sold 5.2% more than in the first seven months of 2000. This compares with a 6.6% increase in the same period of 2000.

Sales by the group of 80 large retailers in Canada totalled $6.4 billion in July, a 3.2% increase over July 2000, according to Stats Canada. Increases in health and personal care products, other goods and services, and home furnishings and electronics led the way. Excluding the clothing and food commodity groups, sales by the group of large retailers rose 6.9% compared with July 2000.

Consumers paid 2.8% more for the goods and services included in the Consumer Price Index (CPI) in August than they did in August 2000, says Stats Canada. While this was lower than the 3.9% increase posted in May, it was higher than July’s rate of 2.6%. The increase in the CPI partly reflects the renewed impact of energy prices, which accounted for about 16% of the all-items increase.

The Consumer Price Index rose 0.1% in August after a decline of 0.3% in July says Stats Canada, less than the 0.2% gain economists polled by Reuters had expected. Excluding volatile food and energy prices, the index rose 0.2%, in line with economists’ forecasts after the same rise in July.

U.S. chain store sales slumped in the latest week, as consumers shied away from stores following terrorist strikes on New York and Washington, D.C., according to two recent reports. The Redbook Average fell 3.2% during the first two retail weeks of September, a bigger fall than last week’s 0.7% loss and compared with a target of flat sales, Redbook said.

* * * * * *

INDUSTRY NEWS. EVERY DAY —

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

Goodfellow Inc. has appointed four new vice-presidents, effective immediately. Out of the Campbellville, ON office, Mary Lohmus is now vice-president, building materials … James Hutton is vice-president, industrial … Dave Warren has been named vice-president, Atlantic Canada. He will operate from the Dartmouth, NS office … Mike Faccal, now vice-president, hardwood lumber, will operate from the Montréal office. (905-854-5800)

The Canadian Hardware & Building Materials Show has appointed Lindsay O’Handley to the show sales team as business development associate. Mr. O’Handley’s career includes a senior sales position with Delta International Machinery, and most recently with Ryobi Canada as national sales manager. (905-821-3470)

Bruce Pippard has joined ITW Construction Products as retail business unit manager. He was formerly with Hagen as national sales manager. (416-750-0557)

Al D’Addese has been appointed national account team leader at Lepage, division of Henkel Canada. He comes over from Rubbermaid, where he was national account manager. (905-459-1140)

Paul Secen has been promoted at Stanley Works to oversee global procurement, purchased products. He was formerly national marketing manager for Stanley Hardware and Stanley Tools. (905-825-1981)

______________________________________________

NOTED …

The BSDA of B.C. will host its next trade show and convention March 8-9, 2002. “Westcoast 2002” will host some 200 booths at the Pacific Coliseum in Vancouver. The conference portion will take place at the Executive Inn in Coquitlam. For more information on this growing event, contact the BSDA at: 888-711-5656 or 604-513-2205.

______________________________________________

OVERHEARD …

“I cannot comment on why Dekor closed, but I think that it will not affect soft DIY. There must be other reasons. If anything, the events of [September 11] will increase cocooning. It will be more in style than ever to stay home and to improve the home. This will affect soft DIY positively.” — Henry Drouin, chairman of Rona Inc., on the failure of Dekor, a small startup in the U.S. Rona had launched its own soft-DIY concept called Rona Home Solutions, which has not generated the sales the new concept warranted.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201

* * * * * *

OUTSIDE SALES BUILDING MATERIALS,

SOUTHWESTERN ONTARIO:

Goodfellow Inc. is looking for a BUILDING MATERIALS SALES REPRESENTATIVE, Southwestern Ontario. Some of the products included in the line are hardwood, flooring, pre-finished siding, ceiling tile, lumber and panels.

The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.

Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mlohmus@goodfellowinc.com; fax: 905-854-6104.

* * * * * *

VICE-PRESIDENT RESIDENTIAL MARKETS:

Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.

Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.

* * * * * *

RETAIL SALES CONSULTANT:

* * * * * *

MARKETING DIRECTOR:

Sexton Group Ltd. operates as a buying group for approximately 275 building supply members located from Ontario to British Columbia. It also has an affiliation with a buying group serving the greater Toronto area and with a buying group serving Québec.

To serve our members with competitive buying programs, with the best prices, terms and conditions, we require an individual to perform the function of MARKETING DIRECTOR.

Working from our Winnipeg office and traveling frequently, the incumbent will meet with members to understand and respond to their needs. The incumbent will also negotiate purchase arrangements with new and existing suppliers and be responsible for various member programs such as flyers and private label programs.

The ideal candidate will have a background in sales and marketing, preferable in the retail and wholesale building materials industry, computer literacy, superior human relation skills, and growth potential.

Please submit your résumé in confidence to: Bob Mondy, Vice-President and General Manager, Sexton Group Ltd., 46 — 1313 Border Street, Winnipeg, MB; R3H 0X3.

For further information, visit our website: http://www.sextongroup.com <http://www.sextongroup.com/>

* * * * * *

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.

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

HARDLINES

Canada’s electronic information service for home improvement industry

September 24, 2001

Volume vii, #39

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Rona to announce new branding strategy for Ontario stores

* Dekor chain folds its doors in the U.S.

* Rona buys Stockyards store from West Fraser

* Home Hardware puts push on Home Furniture stores

* * * * * *

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED:

“HARDLINES INDUSTRY REPORT – HOME IMPROVEMENT RETAILING IN CANADA”

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

RONA PREPARES TO SWITCH LANSING AND REVY

______________________________________________

DEKOR CALLS IT QUITS BUT

OUTLOOK FOR SOFT DIY REMAINS STRONG

The financial difficulties have occurred despite a recently announced investment in the company by U.K. retail giant Kingfisher.

______________________________________________

RONA BUYS STOCKYARDS REVY STORE

When Rona completed its acquisition of Revy Home Centres, there were six stores not included in the deal. The rest of the stores are in the West and remain in the hands of West Fraser.

_____________________________________________

COMPANIES IN THE NEWS

Kindred Industries, owned by the Franke Group of Switzerland, has announced a four-year investment plan that will put $25 million into its 124,000-sq.ft. facility in Midland, ON.

______________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	21.29
Canfor	16.95	7.65	9.50
Emco	7.50	2.60	5.30
Goodfellow	11.00	8.00	8.65
Home Depot	49.74	47.61	33.11
Hudson’s Bay	17.65	12.40	14.31
Lowe’s	64.90	34.25	31.86
Sears Canada	37.25	18.55	13.20
Taiga Forest	10.00	6.80	7.60
West Fraser	36.50	21.00	32.50

______________________________________________

“Never think that war, no matter necessary, nor how justified, is not a crime.”

— Ernest Hemingway

______________________________________________

MARKET INDICATORS

* * * * * *

INDUSTRY NEWS. EVERY DAY —

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

Bruce Pippard has joined ITW Construction Products as retail business unit manager. He was formerly with Hagen as national sales manager. (416-750-0557)

Al D’Addese has been appointed national account team leader at Lepage, division of Henkel Canada. He comes over from Rubbermaid, where he was national account manager. (905-459-1140)

Paul Secen has been promoted at Stanley Works to oversee global procurement, purchased products. He was formerly national marketing manager for Stanley Hardware and Stanley Tools. (905-825-1981)

______________________________________________

NOTED …

______________________________________________

OVERHEARD …

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201

* * * * * *

OUTSIDE SALES BUILDING MATERIALS,

SOUTHWESTERN ONTARIO:

The candidate must possess a minimum of 3 years of sales and marketing experience, as well as be self-motivated, organized, energetic and personable.

Submit your résumé to: Mary Lohmus, VP Building Materials, Goodfellow Inc., PO Box 460; 9184 Twiss Rd., Campbellville, ON; L0P 1B0; email: mlohmus@goodfellowinc.com; fax: 905-854-6104.

* * * * * *

VICE-PRESIDENT RESIDENTIAL MARKETS:

Looking for a superior opportunity with a branded, multi-divisional manufacturer? This is it.

Rewards include a generous compensation package including salary, bonus, company vehicle, pension, and deferred profit sharing plan coupled with a dynamic, professional work environment.

* * * * * *

RETAIL SALES CONSULTANT:

* * * * * *

MARKETING DIRECTOR:

To serve our members with competitive buying programs, with the best prices, terms and conditions, we require an individual to perform the function of MARKETING DIRECTOR.

Please submit your résumé in confidence to: Bob Mondy, Vice-President and General Manager, Sexton Group Ltd., 46 — 1313 Border Street, Winnipeg, MB; R3H 0X3.

For further information, visit our website: http://www.sextongroup.com <http://www.sextongroup.com/>

* * * * * *

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.

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Sept17_01

HARDLINES

Canada’s electronic information service for home improvement industry

September 17, 2001

Volume vii, #38

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Retailers rally following NYC terrorist attack

* Canadian Tire considering at-home services

* Hardlines Conference gets overwhelming support from industry

* * * * * *

SPECIAL REPORT:

THE CONFERENCE THAT ALMOST WASN’T

Two days of information, ideas and networking marked the latest Hardlines Marketing Conference in Toronto on September 13. More than 110 people managed to attend the Conference, presented in combination with the Retail Strategies Symposium on September 12.

However, the tragic events of a day earlier, when terrorist attacks rocked the Western World, put the fate of the entire event in question. Like the rest of the world, we tried to process the magnitude of the horror of what had just occurred. But after an hour, another realization set in: the viability of the Hardlines Conference hung in the balance. Speakers were not going to be able to get here from the U.S. and Europe. Delegates were stuck who would have flown in from the U.S. as well. Then we heard Canadian air travel was grounded. Now, anyone who would have flown into Toronto for this just wasn’t going to make it.

Paul Ingevaldson of Ace Hardware tried until the last minute to take a car across the border from Chicago to fulfill his obligation to be our opening speaker. Tom Hearn, vice-chair of American Tool, tried frantically to round up a corporate jet. Wolf Gugler was in Oklahoma; Brenda Dumont was stuck in Vancouver. Don Sherwood of the ABSDA in Moncton, NB remained in constant communication with the airport there, trying for the next 36 hours to get his Maritime delegation into Toronto.

Although all their efforts were in vain, they all reflected the incredible support we were receiving for this conference.

We had to get new speakers. What normally takes up to two years to plan had to be done overnight. First up to the plate: Walter Hachborn and Paul Straus of Home Hardware Stores, who opened the day for us. Alistair Linton, in charge of building the Benjamin Moore brand in stores across Canada, agreed to give a presentation with only hours to spare. Finally, a panel of retailers came together for us at the last minute, comprising Dunc Wilson of Ace Hardware Canada, Tony DiEmanuele of GROWMARK and Jos Wintermans, the new head of Sodisco-Howden Group.

Gilles Caille of Fediyma, the federation of European hardware manufacturers, delivered his presentation by international live telephone feed, in sync with his Powerpoint presentation, which we had received a few days earlier. It was an unequivocal success.

Henri Drouin, chairman of Rona Inc., took the train from Montréal. Mark Foote, president of Canadian Tire Retail made it despite the imminence of CTC’s own dealer event a few days later.

Of course, the best part of the Conference was the audience itself. The support of the people who did make it was overwhelming and was the final, and most important, part of a successful event. Unquestionably, September 11 is a day that will change irrevocably how we conduct our lives and our businesses. Our thanks to everyone who did make it to the Sixth Annual Hardlines Marketing Conference, and to those who tried so hard to make it, in spite of the challenges, both personal and professional.

— Sincerely, Michael, Beverly, Nancy & Eugenia

______________________________________________

CANADIAN TIRE TOYS WITH AT-HOME SERVICES,

EXPANDS CONSUMABLES

“Constant Renewal” is nothing less than a company philosophy, one that is obsessed with change, said Mark Foote, president of Canadian Tire Retail, at the Sixth Annual Hardlines Marketing Conference last week. That change has marked the company’s continual updating of its store programs, careful analysis of its customer base and its exploration of new businesses — including the exploration of domestic services.

Following an overview of Canadian Tire’s positioning in the market, Foote went on to discuss the company’s strategy for change. The strategy involves a cycle of idea generation, testing, and eventual roll-out.

He underscored an important point about the process of constant renewal. The evaluation of implemented ideas is a step that retailers often miss.

And even Canadian Tire is not exempt: Foote cited the rollout of the company’s Next Generation stores at the beginning of 2000. Next Generation was an enhancement to its “Class of” program, aimed at upgrading the layout and programs within its stores. Foote admitted that the dealers’ eagerness to adopt the Next Generation program meant mistakes were repeated unnecessarily. Many dealers put the program into their own stores before it was adequately tested. A continuing evaluation process was able to identify — and eliminate — these mistakes for the remaining dealers.

Having gone through a further evaluation, Canadian Tire is now expecting to change up to 400 of its stores to the Next Generation format.

Canadian Tire is now spending a lot more time making sure that ideas work. Viable ideas generated by anyone from head office or from among the dealer base will be eventually implemented and “sold” to the rest of the stores, but only after lots of testing. Most testing takes place at the “Retail City” facility in the Sheppard Ave. warehouse. The site houses a full “class A” store, while a “class C” store has just been completed and a new automotive department is on display there right now.

The constant renewal process requires that, once evaluation is completed, all the players go back to brainstorming to start the cycle once again.

Foote revealed that service extensions such as lawn care are under consideration right now. “We like experimenting with services that are close to the products offered,” he said. Instore, consumables continue to grow. For example, pet food can now be found in CTC’s larger format stores. “Pet food is one of our largest growth categories. It’s profitable. It creates good natural frequency stops. In the past we had a debate over whether to offer consumable goods, and the conclusion was that goods like that promote frequency visits and basket filling.”

Canadian Tire’s “odd duck reputation,” as Foote puts it, comes from the indefinable combination of its product offerings. “If you can’t eat it or wear it, you’ll find it at Canadian Tire,” he says.

“There is a lot of temptation to drift away from our roots,” says Foote. But this is changing as the company irons out the wrinkles of its change philosophy. “Assessing the fit of an idea is now essential.”

______________________________________________

RETAILERS RESPOND TO TRAGEDY WITH RELIEF EFFORTS

Canadian Tire is among the companies pitching in to provide aid to victims of the disasters that struck September 11 in the U.S. CTC stores across the country will serve as collection points for cash donations on behalf of the Canadian Red Cross U.S.A. Appeal. Sleeping bags, air mattresses and other camping equipment have been donated to shelters for stranded travellers throughout Canada.

Both Lowe’s and Home Depot in the U.S. have donated US$1 million toward relief efforts, while both TruServ and Ace Hardware have shipped truckloads of supplies to aid rescue efforts.

_____________________________________________

COMPANIES IN THE NEWS

Home Depot opened its newest store in Leaside, ON last Thursday. The store continues the company’s expansion of its “soft DIY” approach, with greater emphasis on décor products and accessories.

Sears Canada has reported that August revenues increased 6.5% to $454.7 million, from $426.9 million for the same period last year. Merchandise sales increased 8.6% in the month. Same store sales increased 1.2%.

Premdor Inc. has completed the acquisition of Masonite Corp. from International Paper Corp., which becomes part of a worldwide door manufacturing operation comprising 70 facilities in 12 countries.

Uniforêt has announced that production at its Port-Cartier sawmill will be suspended from October 1st to October 12th, 2001 inclusively. This step was taken in response to deteriorating conditions on the lumber market following the preliminary determination of a 19.3% countervailing duty on Canadian lumber shipments to U.S. markets.

JDA Software has acquired E3 Corp., a maker of inventory optimization systems. Many home improvement retailers currently use E3, and the acquisition gives JDA a fuller base of space management software for retailers, wholesalers, distributors and manufacturers to maximize their inventory decisions with computer assisted ordering and replenishment systems.

______________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.70
Canfor	16.95	7.65	9.45
Emco	7.50	2.60	6.65
Goodfellow	11.00	8.00	8.65
Home Depot	49.74	47.61	40.45
Hudson’s Bay	17.65	12.40	15.30
Lowe’s	64.90	34.25	31.86
Sears Canada	37.25	18.55	14.00
Taiga Forest	10.00	6.80	9.90
West Fraser	36.50	21.00	36.00

______________________________________________

“There never was a good war or a bad peace.”

— Benjamin Franklin (1706-1790)

“Today the real test of power is not capacity to make war but to prevent it.”

– Anne O’Hare McCormick

______________________________________________

MARKET INDICATORS

U.S. retailers, already weakened by a sputtering U.S. economy, could face another drop in consumer spending after the terrorist attacks this week. Americans remained glued to round-the-clock news coverage of grieving families and the wreckage of the attacks, and many would consider it insensitive and almost unpatriotic to take a trip to the mall. Although most retailers agreed that it was too early to quantify the impact to sales or earnings, analysts said September and third-quarter results would take a heavy hit.

* * * * * *

INDUSTRY NEWS. EVERY DAY —

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

The following individuals were elected to the CRHA board of directors: Alex Blais, Stephan Home Hardware Building Supplies, Drayton Valley, AB; Brad Collins, Collins True Value Hardware, The Pas, MB; Jack Crombie, Centre Do-It Hudson, Hudson, QC; Mack Foster, Mack Foster Building Materials Ltd., Richmond, BC; Ib Fynbo, Essex Home Hardware, Essex, ON; Stéphane Gagnon, RONA L’entrep?t, St. Bruno, QC; Mario Giannetti, Preston Hardware, Ottawa; Pierre Levesque, Michaud & Levesque, Sturgeon Falls, ON; Michel Perron, Quincaillerie St-Sacrement, QC; Linda Smith, Dickson Pro Hardware, Toronto, ON; Bill Towndrow, Lunenburg Pro Hardware, Lunenburg, NS; Brian Warr, George Warr Ltd., Springdale, NF. (905-821-3470)

The Canadian Institute of Plumbing and Heating has announced the transfer of leadership from soon-to-retire CIPH president Ed Hardison to president-elect Ralph Suppa. Suppa assumes full responsibility for the CIPH staff immediately. Hardison will focus on major external programs including the first ISH North America show to be held in Toronto in 2002. (416-695-0447)

Home Depot in Atlanta has appointed David Rutherford to the position of vice-president of litigation. He will report directly to Frank Fernandez, executive vice-president, secretary and general counsel, and will be based at the Home Depot store support centre in Atlanta, GA. (770-433-8211)

______________________________________________

OVERHEARD …

“Some people say it’s a sin to make a profit. I say it’s a miracle.”

— Walter Hachborn, chairman and president of Home Hardware Stores Ltd., in his opening remarks at the recent Hardlines Marketing Conference. He was commenting on the challenge faced by the independent retailer to run a profitable enterprise in today’s competitive marketplace.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201

* * * * * *

RETAIL SALES CONSULTANT:

Ace Canada offers a competitive compensation package and career potential. If you are qualified for this position, please fax or e-mail your résumé, including salary history/expectations to: vice-president, operations and administration, Ace Hardware Canada Ltd., 80 Micro Court, 3rd Floor, Markham, ON; L3R 9Z5; fax 905-475-2721; e-mail: stan.sauer@acehardware.ca

* * * * * *

MARKETING DIRECTOR:

To serve our members with competitive buying programs, with the best prices, terms and conditions, we require an individual to perform the function of MARKETING DIRECTOR.

Please submit your résumé in confidence to: Bob Mondy, Vice-President and General Manager, Sexton Group Ltd., 46 — 1313 Border Street, Winnipeg, MB; R3H 0X3

For further information, visit our website: http://www.sextongroup.com <http://www.sextongroup.com/>

* * * * * *

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.

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

“Home Improvement Retailing in Canada” is a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends — and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers! For more information, contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396.

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

HARDLINES

Canada’s electronic information service for home improvement industry

September 17, 2001

Volume vii, #38

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Retailers rally following NYC terrorist attack

* Canadian Tire considering at-home services

* Hardlines Conference gets overwhelming support from industry

* * * * * *

SPECIAL REPORT:

THE CONFERENCE THAT ALMOST WASN’T

Although all their efforts were in vain, they all reflected the incredible support we were receiving for this conference.

Henri Drouin, chairman of Rona Inc., took the train from Montréal. Mark Foote, president of Canadian Tire Retail made it despite the imminence of CTC’s own dealer event a few days later.

— Sincerely, Michael, Beverly, Nancy & Eugenia

______________________________________________

CANADIAN TIRE TOYS WITH AT-HOME SERVICES,

EXPANDS CONSUMABLES

He underscored an important point about the process of constant renewal. The evaluation of implemented ideas is a step that retailers often miss.

Having gone through a further evaluation, Canadian Tire is now expecting to change up to 400 of its stores to the Next Generation format.

The constant renewal process requires that, once evaluation is completed, all the players go back to brainstorming to start the cycle once again.

______________________________________________

RETAILERS RESPOND TO TRAGEDY WITH RELIEF EFFORTS

Both Lowe’s and Home Depot in the U.S. have donated US$1 million toward relief efforts, while both TruServ and Ace Hardware have shipped truckloads of supplies to aid rescue efforts.

_____________________________________________

COMPANIES IN THE NEWS

Premdor Inc. has completed the acquisition of Masonite Corp. from International Paper Corp., which becomes part of a worldwide door manufacturing operation comprising 70 facilities in 12 countries.

______________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	22.70
Canfor	16.95	7.65	9.45
Emco	7.50	2.60	6.65
Goodfellow	11.00	8.00	8.65
Home Depot	49.74	47.61	40.45
Hudson’s Bay	17.65	12.40	15.30
Lowe’s	64.90	34.25	31.86
Sears Canada	37.25	18.55	14.00
Taiga Forest	10.00	6.80	9.90
West Fraser	36.50	21.00	36.00

______________________________________________

“There never was a good war or a bad peace.”

— Benjamin Franklin (1706-1790)

“Today the real test of power is not capacity to make war but to prevent it.”

– Anne O’Hare McCormick

______________________________________________

MARKET INDICATORS

* * * * * *

INDUSTRY NEWS. EVERY DAY —

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

______________________________________________

OVERHEARD …

“Some people say it’s a sin to make a profit. I say it’s a miracle.”

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

Check out Hardlines Classifieds on the web:

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986.

We ensure high profile retail presence for a wide range of product lines.

Why not make yours one of them?

www.noralmarketing.com <http://www.noralmarketing.com/> or call 519-439-6800 ext. 201

* * * * * *

RETAIL SALES CONSULTANT:

Ace Canada offers a competitive compensation package and career potential. If you are qualified for this position, please fax or e-mail your résumé, including salary history/expectations to: vice-president, operations and administration, Ace Hardware Canada Ltd., 80 Micro Court, 3rd Floor, Markham, ON; L3R 9Z5; fax 905-475-2721; e-mail: stan.sauer@acehardware.ca

* * * * * *

MARKETING DIRECTOR:

To serve our members with competitive buying programs, with the best prices, terms and conditions, we require an individual to perform the function of MARKETING DIRECTOR.

Please submit your résumé in confidence to: Bob Mondy, Vice-President and General Manager, Sexton Group Ltd., 46 — 1313 Border Street, Winnipeg, MB; R3H 0X3

For further information, visit our website: http://www.sextongroup.com <http://www.sextongroup.com/>

* * * * * *

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.

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Sept10_01

HARDLINES

Canada’s electronic information service for home improvement industry

September 10, 2001

Volume vii, #37

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Totem opens latest store in Camrose

* Home Depot expansion will focus on Montréal

* Rona posts 15.8% increase in 2Q sales

* U.S. to impose duties on value-added timber products

* Lowe’s expects to open 115 stores this year

* 2Q housing starts up 8.2%

* Department store sales up in July

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MAREKTING CONFERENCE:

Join Canadian Tire, Rona, Ace Hardware, American Tool, Turkstra Lumber and more. Where? The Sixth Annual Hardlines Marketing Conference – September 13, 2001 at the Four Points Sheraton! I am confident this conference will turn out to be the single best day of education, insights and networking you’ll have all year. period. Only $389.00 per person – includes continental breakfast, lunch, cocktails, prizes and more! Contact nancy@hardlines.ca for more info, or call me direct: 416.489.3396.

– Michael

(go to https://hardlines.ca/html/conferences/html)

* * * * *

THE RETAIL STRATEGIES SYMPOSIUM

A half-day education seminar that will feature industry overviews from authorities on the Canadian and U.S. markets (well, actually that would be me and the Editor of National Home Center News in the U.S.). learn how the key retail players are positioned for growth, how Canadian distribution channels work, and how the big box retailers are capturing their share of the Canadian market.

September 12, 2001, at the Four Points Sheraton Hotel, Dixie Rd. and Hwy. 401, Mississauga, ON. Call for details! nancy@hardlines.ca

* * * * *

TOTEM CONTINUES EXPANSION WITH 13TH STORE

Totem Building Supplies opened its newest building centre last Thursday, this one in Camrose, AB. The 30,000-sq.ft. outlet is the second of its kind to go into a smaller community. Camrose has a population of just over 15,000. The first such store went into Airdrie last year.

The next opening will be in the Sherwood Park area, adjacent to Edmonton, early in 2002, for a total of three Edmonton stores.

In addition to its 13 current retail outlets, Totem has one contractor yard at its distribution centre in the heart of Calgary. One of the largest independents left in Canada, with 2000 sales of $150 million, Totem left Tim-BR-Marts to join ILDC last Spring.

______________________________________________

HOME DEPOT EXPANSION WILL FOCUS

ON QUÉBEC, ONTARIO IN 2002

Home Depot Canada has up to 14 stores planned for 2001, with the focus on the Montréal area and secondary markets in Ontario.

Sometime in October, store number three in Montréal will open, this one across the river in St. Bruno. Four more are planned in the Montréal area by next Spring: St. Henri, Marché Centrale, Anjou and Montréal Parc. They join stores in Laval and Lachenaie. Another Québec store is in Gatineau, across the river from Ottawa.

Sites for full-sized stores are also being developed in smaller communities in Ontario. Sarnia and Oakville are both under construction, while land has been secured in Central Ontario, namely Bracebridge and Owen Sound, though 2002 openings have not been confirmed for either site.

The next openings outside of Québec will take place this Thursday, in Toronto’s Leaside area, followed by Red Deer, AB in November. Home Depot Canada expects to have open a total of 12 stores by the end of December, 2001 and up to 14 in 2002.

______________________________________________

LUMBER DUTY A BLOW TO SECONDARY MANUFACTURERS

The latest volley from the U.S. government has left Canadian softwood lumber exporters reeling. A move to boost duties by 19.3% on the border-ready price of product rather than at the mill gate will have a big impact on re-manufacturers and value-added producers.

This sector, which accounted for 10% of Canada’s $10-billion softwood exports last year, was expecting to pay duty only on the lumber it bought, known as the mill gate or first mill price, according to the National Post. The structure of the new duty will affect the secondary market, which was untouched under previous tariffs.

The decision by the U.S. Commerce Department was the result of intensive lobbying by the lumber industry there.

______________________________________________

COMPANIES IN THE NEWS

For its second quarter, Rona Inc. chalked up net sales of $478.2 million, a 15.8% increase over the $413.0 million posted for the corresponding quarter in 2000. For the first six months, net sales rose to $731.8 million, up 11.2% over the previous year. Second quarter net earnings were $8.6 million, up 16.0%, while earnings reached $11.4 million, 13.4% higher than last year.

Nu-Gro Co. has announced results for the third quarter and nine-month period ended June 30, 2001. Sales are up $9 million or 17% over their third quarter in 20000, primarily due to the acquisition of Pursell Vigoro Canada last November.

Domtar Inc. has completed its acquisition of four paper mills and their related business from Georgia-Pacific Co. The total purchase price was US$1.65 billion, which included US $200 million for working capital.

Kingfisher and Hornbach – two of Europe’s leading DIY retailers – have invested in Dekor, the chain founded by two former Home Depot execs and based in Atlanta, GA. Kingfisher has reportedly taken the stake because it is interested in Dekor’s soft DIY approach, but neither Kingfisher nor Hornbach Holdings would comment on how much they had invested.

Lowe’s Cos. is pushing into major metropolitan markets and plans to open 115 stores in 2001. In fiscal 2000, Lowe’s opened 100 stores, including 20 relocations. As of August 3, Lowe’s had 700 stores in 40 states.

Owens Corning has filed a six-month extension to February 2, 2002 for an exclusive reorganization and approval of its bankruptcy plan. The company is dealing with millions in losses stemming from asbestos litigation.

Williams-Sonoma Inc.’s fiscal second-quarter profit tumbled 73%, while revenue jumped 17% to US$429 million from $365 million. Retail sales rose 18% to US$244.4 million. Same-store sales inched up 1%.

______________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	24.80
Canfor	16.95	7.65	10.19
Emco	7.50	2.60	6.65
Goodfellow	11.00	8.00	8.51
Home Depot	49.74	47.61	40.95
Hudson’s Bay	17.65	12.40	16.40
Lowe’s	64.90	34.25	32.00
Sears Canada	37.25	18.55	17.80
Taiga Forest	10.00	6.80	10.00
West Fraser	36.50	21.00	36.00

______________________________________________

“Football combines the two worst things about America: it is violence punctuated by committee meetings.”

– George R. Will (1941-)

______________________________________________

MARKET INDICATORS

New housing was up 8.2%, to $5.8 billion, from the second quarter of 2000, Stats Canada reports. Multiple starts were up 24.5% to $1.0 billion. Investment in single-family dwellings was up 3.1% to $3.6 billion. The value of renovations carried out in the second quarter was $4.8 billion, up 3.3% from the second quarter of 2000.

Department store sales totalled $1.72 billion seasonally adjusted in July, up 3.3% from June, says Stats Canada, the largest monthly increase since January 2001, when it rose 4.7%. Department store sales have grown every month this year, except for a 1.2% decline in February. The upward movement in department store sales that began in the Spring of 2000 has gained momentum since the start of 2001. Prior to the Spring of 2000, sales had been declining since September 1999, following a period of increases that lasted more than a year.

Unadjusted for seasonality, department store sales nationally were up 7.5% in July, compared with July 2000, says Stats Canada. Sales advanced in all provinces except Nova Scotia (-0.4%). The largest increases were posted in Newfoundland and Prince Edward Island (+19.9% collectively), in Alberta (+14.3%) and in the region formed by British Columbia, Yukon, the Northwest Territories and Nunavut (+10.8%).

* * * * * *

INDUSTRY NEWS. EVERY DAY –

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

At RCR international Inc., Charles Trépanier has been promoted to the position of national merchandising manager. An MBA graduate of Montréal University, he was formerly a sales rep for RCR. (450-670-8100)

Kendal Maher has joined JDA Intactix as customer relationship manager. Maher recently transferred to JDA Canada from JDA’s Sydney, Australia, office, where she was a senior consultant. (416-490-9436)

Paul Montgomerie has joined The Mibro Group as director of marketing. He replaces Sally-Ann MacGillivray Wren, who has left the industry. (416-285-9000)

Vincent Lin is the new manager for Canada at McCulloch Canada. His previous experience was in international sales in Taiwan … Jeff McDonald is now McCulloch’s national sales manager. He was formerly at Maxtech. (519-780-1494)

Home Depot in Atlanta has appointed Ricardo Saldivar to the position of regional president & managing director of operations in Mexico. He will report directly to Anders Moberg, president of the international division, and will be based in Monterrey, Mexico. Saldivar was formerly CEO of Total HOME, a Mexican chain that was recently purchased by Home Depot. (770-433-8211)

______________________________________________

NOTED …

For the fourth consecutive year, the DIY & Home Improvement Show and GardenExpo, January 20-22, 2002, will welcome a group exhibit of Canadian manufacturers. Organized by the Canadian high Commission in London, over the years the Canadian stand has featured a variety of products – everything from hand tools, tool pouches and power tool accessories to doors, brackets and furniture. In 2001, eight companies participated in the Canadian group stand and the 2002 event is expected to be at least as big. For more information, call: 020 8462 0721.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986. We ensure high profile retail presence for a wide range of product lines. Why not make yours one of them? http://www.noralmarketing.com/ or call 519-439-6800 ext. 201

* * * * * *

MARKETING DIRECTOR:

Sexton Group ltd. operates as a buying group for approximately 275 building supply members located from Ontario to British Columbia. It also has an affiliation with a buying group serving the greater Toronto area and with a buying group serving Québec.

To serve our members with competitive buying programs, with the best prices, terms and conditions, we require an individual to perform the function of MARKETING DIRECTOR.

Please submit your résumé in confidence to: Bob Mondy, Vice-President and General Manager, Sexton Group Ltd., 46 – 1313 Border Street, Winnipeg, MB; R3H 0X3

For further information, visit our website: http://www.sextongroup.com <http://www.sextongroup.com/>

* * * * * *

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.

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

“Home Improvement Retailing in Canada” is a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends – and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers! For more information, contact Nancy Wright at nancy@hardlines.ca <……….WINDOWSDesktopMy%20Briefcasenancy@hardlines.ca> ; phone: 416-489-3396.

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca <https://hardlines.ca/>

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!

______________________________________________

HARDLINES

Canada’s electronic information service for home improvement industry

September 10, 2001

Volume vii, #37

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Totem opens latest store in Camrose

* Home Depot expansion will focus on Montréal

* Rona posts 15.8% increase in 2Q sales

* U.S. to impose duties on value-added timber products

* Lowe’s expects to open 115 stores this year

* 2Q housing starts up 8.2%

* Department store sales up in July

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MAREKTING CONFERENCE:

– Michael

(go to https://hardlines.ca/html/conferences/html)

* * * * *

THE RETAIL STRATEGIES SYMPOSIUM

September 12, 2001, at the Four Points Sheraton Hotel, Dixie Rd. and Hwy. 401, Mississauga, ON. Call for details! nancy@hardlines.ca

* * * * *

TOTEM CONTINUES EXPANSION WITH 13TH STORE

The next opening will be in the Sherwood Park area, adjacent to Edmonton, early in 2002, for a total of three Edmonton stores.

______________________________________________

HOME DEPOT EXPANSION WILL FOCUS

ON QUÉBEC, ONTARIO IN 2002

Home Depot Canada has up to 14 stores planned for 2001, with the focus on the Montréal area and secondary markets in Ontario.

______________________________________________

LUMBER DUTY A BLOW TO SECONDARY MANUFACTURERS

The decision by the U.S. Commerce Department was the result of intensive lobbying by the lumber industry there.

______________________________________________

COMPANIES IN THE NEWS

______________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	24.80
Canfor	16.95	7.65	10.19
Emco	7.50	2.60	6.65
Goodfellow	11.00	8.00	8.51
Home Depot	49.74	47.61	40.95
Hudson’s Bay	17.65	12.40	16.40
Lowe’s	64.90	34.25	32.00
Sears Canada	37.25	18.55	17.80
Taiga Forest	10.00	6.80	10.00
West Fraser	36.50	21.00	36.00

______________________________________________

“Football combines the two worst things about America: it is violence punctuated by committee meetings.”

– George R. Will (1941-)

______________________________________________

MARKET INDICATORS

* * * * * *

INDUSTRY NEWS. EVERY DAY –

Our website has daily updates on retail and industry news that matter to you.

Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

PEOPLE ON THE MOVE

Paul Montgomerie has joined The Mibro Group as director of marketing. He replaces Sally-Ann MacGillivray Wren, who has left the industry. (416-285-9000)

______________________________________________

NOTED …

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

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

______________________________________________

NORAL MARKETING:

* * * * * *

MARKETING DIRECTOR:

To serve our members with competitive buying programs, with the best prices, terms and conditions, we require an individual to perform the function of MARKETING DIRECTOR.

Please submit your résumé in confidence to: Bob Mondy, Vice-President and General Manager, Sexton Group Ltd., 46 – 1313 Border Street, Winnipeg, MB; R3H 0X3

For further information, visit our website: http://www.sextongroup.com <http://www.sextongroup.com/>

* * * * * *

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.

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

“Home Improvement Retailing in Canada” is a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends – and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers! For more information, contact Nancy Wright at nancy@hardlines.ca <……….WINDOWSDesktopMy%20Briefcasenancy@hardlines.ca> ; phone: 416-489-3396.

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca <https://hardlines.ca/>

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end!

______________________________________________

Sept4_01

HARDLINES

Canada’s electronic information service for the home improvement industry

September 4, 2001

Volume vii, #36

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Home Depot’s Canada unaffected by latest restructuring

* Rona accelerates consolidation with closures

* Molluso’s severance pay impacts Sodisco-Howden’s 2Q results

* Home Depot’s 2Q sales up 15%

* Wal-Mart Canada names Brunet senior vp merchandise

* * * * * *

We’ve got two incredible conferences coming up September 12 & 13. If you haven’t signed up yet, run, do not walk, to the phone and call Nancy Wright for more info:

416-489-3396; email: nancy@hardlines.ca <mailto:bev@hardlines.ca>

(Or go to https://hardlines.ca/html/conferences.html)

To get our special hotel rate at the Four Points Sheraton while attending either Conference, call 1-800-737-3211.

* * * * * *

We are very please to add the Natural Resources Canada Office of Energy Efficiency (http: //oee.rncan.gc.ca <http://oee.rncan.gc.ca/> ) to our list of sponsors for the Hardlines Marketing Conference. NRC has a new program that provides money for retailers to do energy efficient retrofits to their stores. How good is that! And JUST in: CareerTek (http://www.careertek.org/), an HR assessment company. They join our roster of sponsors:

PLATINUM SPONSORS:

CHEP Canada www.chep.com <http://www.chep.com/>

Cologne International Trade Shows www.kolnmesse.de <http://www.kolnmesse.de/>

JDA Intactix www.jda.com <http://www.jda.com/>

RONA Inc. http://www.rona.ca/

Sterling Commerce www.sterlingcommerce.com <http://www.sterlingcommerce.com/>

GOLD SPONSORS:

Black Eagle Consulting www.blackeagle.ca <http://www.blackeagle.ca/>

Canadianretail.com www.canadianretail.com <http://www.canadianretail.com/>

Canadian Hardware & Housewares Manufacturers Association www.chhma.ca <http://www.chhma.ca/>

McLarneyCom hardlines.ca <https://hardlines.ca/>

Noral Instore/Noral Marketing www.noralmarketing.com <http://www.noralmarketing.com/>

Wolf Gugler & Associates http://www.wolfgugler.com/

MEDIA SPONSORS:

Hardware & Home Centre Magazine www.centremagazine.com <http://www.centremagazine.com/>

Hardware Merchandising/Canadian Contractor Magazine www.hardwaremerch.com <http://www.hardwaremerch.com/>

Hardlines Quarterly Report hardlines.ca <https://hardlines.ca/>

Our Retail Strategies Symposium on

September 12 has the support of these great companies:

PLATINUM SPONSORS:

LBMX www.lbmx.com <http://www.lbmx.com/>

ACNielsen Canada www.acnielsen.ca <http://www.acnielsen.ca/>

GOLD SPONSOR:

Noral Instore/Noral Marketing www.noralmarketing.com <http://www.noralmarketing.com/>

* * * * * *

RONA CLOSES TORONTO, PORT HOPE OFFICES

Rona Inc. is fast-tracking consolidation of its acquisitions by closing the mid-town Toronto offices of Rona Retail Canada — more than a year before the lease is up. The closure was deemed inevitable following the dismissal of the division’s president and COO, Rick Blickstead, only hours after the purchase of Revy was completed on July 12.

Most of the remaining executive team was let go, as well. Those remaining, including Glen French, vice-president merchandising, and a couple of his buyers, have moved into the Rexdale offices of Lansing Buildall, in Toronto’s west end.

The closures correspond with the shuttering of Cashway’s head office and distribution centre in Port Hope, ON. Now, programs and purchasing for Rona Cashway stores will come out of Lansing’s offices. Meanwhile, Rona continues to let go of key personnel, including Jim Pybus, formerly president of Rona Cashway, and Mike Semerak, vp marketing and merchandising, though some personnel were moved to Rona’s head offices in Boucherville, QC.

______________________________________________

HOME DEPOT MERCHANDISING RE-ORG

WILL LEAVE CANADA UNTOUCHED

There will be no changes to the Canadian operations, says Bob Nardelli, president and CEO of Home Depot in Atlanta, GA. Much confusion had surrounded the status of Home Depot Canada following the announced centralization of the company’s merchandising teams back into Atlanta and a “wait-and-see” approach to Canada.

The original plan, to leave about 20% of buying in the hands of regional teams at each of Home Depot’s divisions, will not affect the Toronto-based operations of the Canadian division. Nardelli told Hardlines that the regional nature of Canadian sourcing makes any centralization at this time unwise. All duties, including the role of Eric Peterson as vice-president merchandising, will remain intact.

______________________________________________

COMPANIES IN THE NEWS

For the six-month period ended June 30, Sodisco-Howden Group had total sales of $192.4 million, a decrease of 13.0% from $221.1 million during the same period last year. EBITDA dropped from $7.0 million to $4.2 million, the company suffered a net loss of $587,000, compared with a profit of $5.9 million last year. A net loss of $202,000 recorded in the second quarter was due in large part to an extraordinary charge of $2.1 million in connection with severance pay and other costs related to the departure of former CEO Tony Molluso.

For the second quarter ended July 31, 2001, Hudson’s Bay Co. reported an operating profit of $45.6 million, including $6.6 million due to an accounting change for transfer of receivables, versus $54.8 million in the same period last year. Total Hudson’s Bay sales in the second quarter were $1.7 billion; down 0.8% from last year. Retail sales at the Bay decreased 5.3% and increased 1.9% at Zellers. Same-store sales decreased 7.1% at the Bay and increased 0.7% at Zellers. Zellers achieved its 14th consecutive quarter of year-over-year profit growth, contributing $35.6 million (including a $3.8 million gain due to the accounting change for transfer of receivables) in operating profit, an increase of $4.1 million from the second quarter of 2000. The Bay’s profits dropped $14.0 million to $14.6 million.

Home Depot Inc. reported net earnings of US$924 million for the second quarter of fiscal 2001, compared with net earnings of US$838 million in the second quarter of fiscal 2000. Sales for the second quarter of fiscal 2001 totalled US$14.6 billion, an increase of 16% over the previous year. Same-store sales increased 1%. The company opened 115 stores during the first half of 2001.

Lowe’s Cos. Inc. has reported an 18% rise in second-quarter earnings, helped by strong sales of appliances and paint. Sales rose 16% to US$6.1 billion from US$5.3 billion a year earlier. Same-store sales increased 1.7%. 2Q profits climbed to US$329.1 million, from US$279.6 million.

Sears Canada released July revenues for the four-week period ending July 28, 2001. The company posted increases of 8.4% to $485.9 million from $448.3 million for the same period last year. Merchandise sales increased 8.4% in the month. Same store sales increased 1.2 %

Once 200 stores strong with US$2.6 billion in sales at its peak, Kansas City, MO-based Payless Cashways has declared bankruptcy after failing to find any more financing for its troubled operations. Its 73 remaining stores were closed August 28. Sales in 2000 were US$1.49 billion.

The Hudson’s Bay Co. opened its first batch of Home Outfitters stores in Ontario on August 30th. Stores in Barrie, Pickering and Mississauga brought the total chain store count to 13 in Canada.

Do it Best Corp. ended its 2000 fiscal year with a record-setting shareholder’s rebate of US$86.9 million, the highest in the co-ops 56-year history. Hardware sales were up 4% for the year for both the warehouse and drop shipments. Unit sales of lumber and building materials were up 9%. The company ended the year with 250 members joining the co-op.

Kmart Corp. posted a second-quarter loss before charges, saying it is facing pricing pressures as it works to remodel its U.S. store base and boost customer traffic. The loss was US$22 million before a US$76 million charge for the purchase of the remaining 40 percent of Kmart’s BlueLight.com online unit. Sales at the Troy, Michigan, company slipped to US$8.92 billion from US$9 billion a year earlier, whiles sales at stores open at least a year, or same-store sales, rose 1%.

______________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	26.50
Canfor	16.95	7.65	10.68
Goodfellow	11.00	8.00	7.05
Home Depot	49.74	47.61	45.95
Hudson’s Bay	17.65	12.40	17.77
Lowe’s	64.90	34.25	37.20
Sears Canada	37.25	18.55	22.00
Taiga Forest	10.00	6.80	10.00
West Fraser	36.50	21.00	36.25

______________________________________________

“Service to others is the rent you pay for your room here on earth.”

– Muhammad Ali (Greatest athlete of the 20th century)

______________________________________________

MARKET INDICATORS

August retail sales posted increases in some categories. After a weak start in 2001, hardware and lawn and garden products sales posted two strong months in a row, climbing 12.0% from June 2000. Hardware sales (+12.5%) and lawn and garden product sales (+11.5%) posted similar increases for the group of large retailers. Sales of home furnishings and electronics were up 9.1% in June. Household appliances in particular had strong sales, up 11.4%. Sales of both small electrical appliances (+11.7%) and major appliances (+11.3%) were up.

Housing starts in Canada are on track to improve about 6% this year reaching a 9-year high, according to economists at Clayton Research. The number of housing starts this year is anticipated to reach about 160,000 units. In 2002 new home construction is forecast to moderate slightly from its present pace but remain very buoyant at about 158,000 units.

The New Housing Price Index rose 0.3% from May to June. On an annual basis, this index of contractors’ selling prices increased 2.9%. In Québec, increased labour rates for construction trades contributed to the 1.3% increase from May. Notable monthly advances were also seen in the census metropolitan areas of Calgary (+0.9%) and Kitchener-Waterloo (+0.8%).

Wholesalers saw their sales rise a modest 0.2% in June, due mainly to strength in the automotive sector. Declines were reported in five of 11 wholesale sectors, which account for approximately 51% of total wholesale activity.

U.S. housing starts rose in July as the housing sector continued its strong performance in an otherwise struggling economy. Starts rose to 1.672 million units last month, a 2.8% increase from the June rate, and a 13.2% increase over a year ago.

Inflation at the consumer level logged its biggest decline in 15 years in July, as the consumer price index dropped 0.3% in July, its first decline since April 2000. The report, released by the U.S. Labor Department, shows that price pressures are a non-issue in the economy…

U.S. consumer confidence fell unexpectedly to its lowest level in four months in August as a weakening job market weighed on consumers and threatened to undermine retail spending. The Conference Board, a New York-based private business research group, said its monthly index of consumer confidence fell to 114.3 in August, it’s lowest since April, from a downwardly-revised 116.3 in July.

______________________________________________

PEOPLE ON THE MOVE

Bob Brunet has been named senior vice-president merchandise and sales at Wal-Mart Canada. He was formerly vice-president of general merchandise and manager of Wal-Mart’s hardlines division … Brunet replaces Hani Zayadi, who has gone to Australia as president and CEO for Kmart’s operations there. (416-821-2111)

Tony Molluso, formerly president and CEO of Sodisco Howden Group, has joined Hartco Co. as president and CEO. Hartco is a franchiser of computer integrators and retailers based in Ville d’Anjou, QC.

The Canadian Retail Hardware Association has appointed Stephen Murdoch as communications coordinator. Murdoch will be responsible for developing and implementing communications strategies, producing association publications, maintaining media relations and coordinating the CRHA’s website content. (905-821-3470)

Ian Samberg has been promoted to the position of president of Royal International Corp. He replaces Seymour Samberg, the founder and president of Royal for 40 years, who will remain active in the business as CEO. (514-735-4566)

Jim Gillies, formerly with Newell Rubbermaid, is now vice-president & general manager, international development, at Fiskars Consumer Products Inc. (847-590-0500)

The following changes have occurred at Home Depot Inc. in Atlanta: Charles Pfister is now vice-president of internal audit … Bill Patterson, formerly president of the northwest division, is now president of the 217-store midwest division … He replaces Vern Joslyn, who is leaving the company for other business opportunities … Troy Rice, currently vice-president of sales and service for the southwest division, follows Patterson as president of the 83-store northwest division … Bob Wittman, who is currently senior vice-president with responsibility for the company’s four-store Villager’s Hardware operation, has been named president of the company’s 33-store EXPO Design Center business … Wittman will replace Barry Silverman … Lynn Martineau, president — new growth businesses, will have direct responsibility for Villager’s Hardware and will have added responsibility for The Home Depot Floor Store, a one-store flooring test in Plano, TX.

______________________________________________

NOTED …

Home Depot Canada’s new vice-president human resources, Mary Halton (she comes over from Kraft), left the Toronto offices last week for a week-long human resources tour of Home Depot stores across the country.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986. We ensure high profile retail presence for a wide range of product lines. Why not make yours one of them?

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

* * * * * *

RETAIL SALES CONSULTANT:

Ace Hardware Canada Ltd., a worldwide leader in hardware supply and distribution with operations in Markham, Brantford and Calgary has an immediate opening for a Retail Sales Consultant — Nova Scotia Region.

As the successful candidate you will have five or more years of sales experience in the wholesale hardware or LBM Industry with extensive knowledge of how to provide effective support to retail hardware customers. At Ace Canada “effective support” means listening and responding to the needs of our customers; attending to details and providing consistent follow-up. You have a reasonable knowledge of how to use computers to advantage. Most of all, you are highly organized and capable of working both independently and as part of the team.

Ace Canada offers a competitive compensation package and career potential. If you are qualified for this position please fax or e-mail your résumé, including salary history/expectations to: vice-president, operations and administration, Ace Hardware Canada Ltd., 80 Micro Court, Third Floor, Markham, ON; L3R 9Z5; fax 905-475-2721; e-mail: stan.sauer@acehardware.ca

* * * * * *

THE HARDLINES MARKETPLACE: just $16 per line.

A classified ad with Hardlines is the most direct way to industry eyes.

Over 3,000 executives in the industry come in contact with our email and fax publications … and have you seen our Marketplace in our new website? https://hardlines.ca/html/classifieds_new.asp

Publish your ad where it matters. Get industry exposure today.

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Subscription: $199+$13.93 GST = $212.93 (or $29.85 HST = $228.85) per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

HARDLINES

Canada’s electronic information service for the home improvement industry

September 4, 2001

Volume vii, #36

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

IN THIS ISSUE:

* Home Depot’s Canada unaffected by latest restructuring

* Rona accelerates consolidation with closures

* Molluso’s severance pay impacts Sodisco-Howden’s 2Q results

* Home Depot’s 2Q sales up 15%

* Wal-Mart Canada names Brunet senior vp merchandise

* * * * * *

We’ve got two incredible conferences coming up September 12 & 13. If you haven’t signed up yet, run, do not walk, to the phone and call Nancy Wright for more info:

416-489-3396; email: nancy@hardlines.ca <mailto:bev@hardlines.ca>

(Or go to https://hardlines.ca/html/conferences.html)

To get our special hotel rate at the Four Points Sheraton while attending either Conference, call 1-800-737-3211.

* * * * * *

PLATINUM SPONSORS:

CHEP Canada www.chep.com <http://www.chep.com/>

Cologne International Trade Shows www.kolnmesse.de <http://www.kolnmesse.de/>

JDA Intactix www.jda.com <http://www.jda.com/>

RONA Inc. http://www.rona.ca/

Sterling Commerce www.sterlingcommerce.com <http://www.sterlingcommerce.com/>

GOLD SPONSORS:

Black Eagle Consulting www.blackeagle.ca <http://www.blackeagle.ca/>

Canadianretail.com www.canadianretail.com <http://www.canadianretail.com/>

Canadian Hardware & Housewares Manufacturers Association www.chhma.ca <http://www.chhma.ca/>

McLarneyCom hardlines.ca <https://hardlines.ca/>

Noral Instore/Noral Marketing www.noralmarketing.com <http://www.noralmarketing.com/>

Wolf Gugler & Associates http://www.wolfgugler.com/

MEDIA SPONSORS:

Hardware & Home Centre Magazine www.centremagazine.com <http://www.centremagazine.com/>

Hardware Merchandising/Canadian Contractor Magazine www.hardwaremerch.com <http://www.hardwaremerch.com/>

Hardlines Quarterly Report hardlines.ca <https://hardlines.ca/>

Our Retail Strategies Symposium on

September 12 has the support of these great companies:

PLATINUM SPONSORS:

LBMX www.lbmx.com <http://www.lbmx.com/>

ACNielsen Canada www.acnielsen.ca <http://www.acnielsen.ca/>

GOLD SPONSOR:

Noral Instore/Noral Marketing www.noralmarketing.com <http://www.noralmarketing.com/>

* * * * * *

RONA CLOSES TORONTO, PORT HOPE OFFICES

______________________________________________

HOME DEPOT MERCHANDISING RE-ORG

WILL LEAVE CANADA UNTOUCHED

______________________________________________

COMPANIES IN THE NEWS

The Hudson’s Bay Co. opened its first batch of Home Outfitters stores in Ontario on August 30th. Stores in Barrie, Pickering and Mississauga brought the total chain store count to 13 in Canada.

______________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	26.50
Canfor	16.95	7.65	10.68
Goodfellow	11.00	8.00	7.05
Home Depot	49.74	47.61	45.95
Hudson’s Bay	17.65	12.40	17.77
Lowe’s	64.90	34.25	37.20
Sears Canada	37.25	18.55	22.00
Taiga Forest	10.00	6.80	10.00
West Fraser	36.50	21.00	36.25

______________________________________________

“Service to others is the rent you pay for your room here on earth.”

– Muhammad Ali (Greatest athlete of the 20th century)

______________________________________________

MARKET INDICATORS

______________________________________________

PEOPLE ON THE MOVE

Jim Gillies, formerly with Newell Rubbermaid, is now vice-president & general manager, international development, at Fiskars Consumer Products Inc. (847-590-0500)

______________________________________________

NOTED …

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986. We ensure high profile retail presence for a wide range of product lines. Why not make yours one of them?

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

* * * * * *

RETAIL SALES CONSULTANT:

* * * * * *

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.

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

(go to https://hardlines.ca/html/industry_report.html)

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Aug27_01

HARDLINES CONFERENCE UPDATE

HARDLINES CONFERENCE UPDATE

Here’s a detailed list of the presentations that will showcase our upcoming conferences …

TWO CONFERENCES IN TORONTO:

Both conferences will be held at the Four Points Sheraton Hotel on Dixie Rd., just minutes from Pearson International Airport in Toronto. For more information about these important events, call us at 416-489-3396 or check out hardlines.ca/html/conferences.html <https://hardlines.ca/html/conferences.html> .

* * * * * *

RETAIL STRATEGIES SYMPOSIUM: SEPTEMBER 12, 2001

This new half-day education seminar will feature industry overviews on the Canadian and U.S. markets. Learn how the key retail players are positioned for growth, the size of the market by region and by retail type, the growing importance of online data exchange and how the big box retailers are capturing share of the Canadian market. Only $149 per person.

1. Where
will the Growth Come From?

Michael McLarney, Editor & Publisher of Hardlines, will talk about the key factors affecting this industry, including the growth of the big box, consolidation among retail groups, expansion strategies of Home Depot and Canadian Tire, and the future of buying groups in Canada.

2. Land
of the Giants

John Caulfield, Editor of National Home Center News in New York, will talk about the billion-dollar players in the U.S., their growth strategies and the challenges facing them in a market that has coped with big boxes much longer than here in Canada.

3. The
Face of Today’s Home Improvement Customer: Women and DIY

A report on women’s involvement in home improvement projects and their DIY shopping preferences — results of an exclusive Hardlines survey done in conjunction with ACNielsen.

______________________________________________

HARDLINES MARKETING CONFERENCE: SEPTEMBER 13,
2001

The leaders in home improvement retailing worldwide will speak at this event. A day of education, insights and networking. Only $389.00 per person — includes continental breakfast, lunch, door prizes, cocktail reception and more!

1. The Future of the Independents: Learning to
Think Retail

Paul Ingevaldson, Vice-President International for Ace Hardware, will talk about the biggest challenge ever to face the independent hardware and home improvement industry – the relentless rise of the big box competitor. As the industry continues to consolidate and the big boxes continue to dominate, what will be the future of the independent?

Ace brings to its dealers a new perspective with a series of bold initiatives called Vision 21. With it, Ace believes strongly that the independent can continue to thrive and be successful. But it’s not going to be business as usual.

2. Vendor Alliances Respond to International Retailing

The UK, France, Germany and Belgium account for well over 65% of total DIY sales throughout the Europe. Fediyma, the European federation of DIY manufacturers, has joined the interests of hundreds of manufacturers and suppliers from these key countries. Gilles Caille, president of the French association, Unibal, and the current president of Fediyma, will share the challenges facing European suppliers as they do business with an increasingly global retail community. Learn how opportunities are built for the pursuit of trade on a global scale.

3. Making a Profit in the Contractor Market

With some $60 million in sales annually, Turkstra Lumber is one of Canada’s most successful retailers selling to contractors and builders. Peter Turkstra knows that a lot of dealers try to make money selling to contractors, but when they do a thorough — and honest — assessment of their cost of doing business, they come up short. Are you confusing strategy with execution? Are you confusing sales volume with profits?

Whether you’re a retailer or a supplier, you will learn important lessons from Mr. Turkstra’s experiences selling successfully to the specialized — and fickle — contractor market. Turkstra Lumber’s retail presence is supported by a range of back-end operations that provide contractor specific services and products – including a truss plant, window factory and mill that supply a large trade and contractor market in Southern Ontario.

4. Repositioning the Big Box and National Expansion

Long dominant in Quebec, RONA’s commitment to become a truly national player has rocked the industry. RONA and its dealer-shareholders operate a network of almost 540 stores of various sizes and types.

Henri Drouin, chairman of RONA, and a dealer in his own right, will offer frank insights into the challenges and opportunities that lay ahead for one of Canada’s largest home improvement organizations. Mr. Drouin will outline the strengths of his company’s dealer-owned structure and describe the retailer’s aggressive acquisition strategy. Learn more about the strategy behind RONA’s efforts to manage its various retail formulas.

5. Strengthen Your Sales in A Global Market

American Tool’s strategies of powerful branding and growth through acquisition have secured its place as a global player. With regional-based operations around the world, the company lets the needs of local markets determine the right products for each area.

Tom Hearn, Co-Chair of American Tool, will give you the manufacturer’s perspective with a look at how international expansion and strategic acquisitions have allowed American Tool to double its sales in the last five years.

6. Retailers Demand More Certified Wood —
where are you?

Home Depot, Lowe’s, IKEA, Mernard’s, OBI … just a few of the billion-dollar retailers who are committing their purchasing power to certified wood products. Certification is becoming the new competitive edge.

Whether you are a retailer or supplier, this issue will affect you. Find out the costs and opportunities inherent in certified wood products. David Ford, President and CEO of the Certified Forest Products Council, will give an overview of various certification systems and their current influence on the international scene. With over 20-years experience working through the escalating conflict between forest products business interests and environmental interests, Mr. Ford will define the impact of the environmental movement on business and consumer actions.

7. Driving Change In A Retail Marketplace

Canadian Tire’s core businesses spread over several categories. In a market that strives hard to identify with the consumer, this retailer walks the line between department store, hardware store, mass merchant, and automotive centre. Which existing categories — and which new businesses — will be the sources of Canadian Tire’s continued growth?

Mark Foote, President of Canadian Tire Retail, will outline his company’s strategic investments in a new automotive banner, new customers and dynamic store formats. Mr. Foote will discuss the strategies driving one of Canada’s biggest forces in retail.

______________________________________________

BREAKOUT SESSIONS ON SEPTEMBER 13:

Three concurrent sessions will address specific issues related to running your business better. Learn how to trim costs and increase efficiency with your choice of the following:

1. INSTORE MERCHANDISING

Roger Roney of JDA Intactix focuses on tactical approaches to category and space management. Learn how the grocery industry has pioneered powerful sales per square foot and increased labour productivity through the use of space management solutions.

Mr. Roney will describe how to reduce labour costs and improve return on investment by using space and merchandising solutions that fit the industry’s diverse customer base. Core planogram concepts will exemplify how space management can be implemented by employees at any level in a retail organization.

2. SELLING TO CONTRACTORS

You can drive pro sales through effective communication with the elusive contractor customer. Learn how to build profitable relationships with this specialized niche. Robert Koci, Editor of Canadian Contractor magazine, will show how to maximize contact across different media. “Staying connected with the contractor market” will chart the strengths and weaknesses of current channels of communication and how to use them effectively.

3. STAFF RETENTION

Wolf Gugler of Wolf Gugler and Associates, and Brenda Dumont of canadianretail.com, will combine their expertise in retail and corporate recruitment in an exciting panel discussion. Find out the most effective recruitment method for attracting top-quality talent, including non-traditional means of finding good employees. Learn practical methods of retaining good staff – from motivation that matters to the number one reason why people leave jobs. And have your questions ready!

______________________________________________

LAST CHANCE TO BOOK YOUR CONFERENCE HOTEL:

If you’re planning to stay over the night of September 12 to take in our conference event next month, make sure you’ve booked your hotel room. To get our special hotel rate at the Four Points Sheraton on Dixie Road at Highway 401. (NOT THE SHERATON AT TERMINAL 3), call 1-800-737-3211.

HARDLINES CONFERENCE UPDATE

Here’s a detailed list of the presentations that will showcase our upcoming conferences …

TWO CONFERENCES IN TORONTO:

* * * * * *

RETAIL STRATEGIES SYMPOSIUM: SEPTEMBER 12, 2001

1. Where
will the Growth Come From?

2. Land
of the Giants

3. The
Face of Today’s Home Improvement Customer: Women and DIY

A report on women’s involvement in home improvement projects and their DIY shopping preferences — results of an exclusive Hardlines survey done in conjunction with ACNielsen.

______________________________________________

HARDLINES MARKETING CONFERENCE: SEPTEMBER 13,
2001

1. The Future of the Independents: Learning to
Think Retail

2. Vendor Alliances Respond to International Retailing

3. Making a Profit in the Contractor Market

4. Repositioning the Big Box and National Expansion

5. Strengthen Your Sales in A Global Market

6. Retailers Demand More Certified Wood —
where are you?

7. Driving Change In A Retail Marketplace

______________________________________________

BREAKOUT SESSIONS ON SEPTEMBER 13:

Three concurrent sessions will address specific issues related to running your business better. Learn how to trim costs and increase efficiency with your choice of the following:

1. INSTORE MERCHANDISING

2. SELLING TO CONTRACTORS

3. STAFF RETENTION

______________________________________________

LAST CHANCE TO BOOK YOUR CONFERENCE HOTEL:

Aug20_01

Hardlines

Canada’s electronic information service for the home improvement industry

August 20, 2001

Volume vii, #35

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

SUMMER PUBLISHING SCHEDULE:

Hardlines will not publish on August 27th. But don’t worry, the World Headquarters remain open as we get ready for our gala two-day Hardlines Conference event September 12-13. — Michael

* * * * * *

SPECIAL CHICAGO SHOW REPORT:

* Declining attendance gets mixed reviews

* Home Depot puts push on EXPO and Urban formats

* * * * * *

LAST CHANCE TO BOOK YOUR CONFERENCE HOTEL:

* * * * * *

The Retail Strategies Symposium is a half-day education seminar that will feature industry overviews on the Canadian and U.S. markets. Learn how the key retail players are positioned for growth, how Canadian distribution channels work, and how the big box retailers are capturing share of the Canadian market. Only $149 per person.

September 12, 2001, at the Four Points Sheraton Hotel, Toronto Airport!

HARDLINES MARKETING CONFERENCE UPDATE:

People have been asking me who will replace former RONA COO Rick Blicktead as our keynote speaker at our Conference on September 13. Henri Drouin, Chairman of RONA, will handle the duties. And if you’ve never heard him speak before, I guarantee you’re in for a thoughtful and insightful presentation.

Some sponsorships still available for the Conference. Go to https://hardlines.ca/html/conferences.html for details, or call me! — Michael

* * * * * *

INDUSTRY NEWS. EVERY DAY — Our website has daily updates on retail and industry news that matter to you. Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

* * * * * *

CHICAGO REPORT: SMALLER HARDWARE SHOW STILL ATTRACTS CANUCKS

Smaller, with lots of empty spaces strategically filled with tables and benches, the world’s second largest hardware and home improvement show was almost 20% smaller this year.

The show still managed to attract an estimated 63,000 people and 3,000 exhibiting companies, but only 20% of those visitors were from outside the U.S.

“The show certainly has shrunk. It’s 200,000 sq.ft. smaller than last year — but it’s still a million square feet in size,” pointed out one manufacturer who sits on the show’s board. The show is owned by the American Hardware Manufacturers Association.

Though marked by reduced buyer attendance, it remains an important destination for Canadian retailers and wholesalers. Canadian Tire sent 21 people, Home Hardware sent nine, while Kent sent a contingent and so did Sodisco-Howden. Vendors reported meeting successfully with other buyers, including representatives of Loblaws, Wal-Mart and Sheridan Nurseries. Rona’s newly reorganized buying team was there (including its newly appointed vp of hardware buying — see next issue for interview) and Réno-Dépôt’s team included representatives from Castorama, Réno-Dépôt’s French parent.

Some did not make it though: most notably, a team of buyers from Home Depot Canada had their flight plans to Chicago grounded at the last minute (see adjoining story).

Maple Leaf Night, the CHHMA’s Canadian buyer reception, remains, however, a focal point for Canucks in Chicago. This event was supported by the attendance of key Canadian buying personnel.

But the value of the show overall — at least as an annual event — is coming under increasing scrutiny. The Canadian sales manager from one U.S. based manufacturer said his Canadian buyer meetings at the show have been declining steadily. Standing in a booth that cost US$1 million, plus another US$10,000 in staff travel expenses, he said he met with 44 Canadian customers in 1999 and 37 in 2000. Last week, he had only 19 Canadian buyer meetings, two of which were no-shows. Based on this response, this vendor admits his company will rethink its strategy for next year.

The show is anticipating this kind of reaction from more and more exhibitors: before this show was even over, a notice was sent out discounting booth space for next year, though only by a dollar per sq.ft., to US$22.24 per sq.ft. The discount ends October 15, 2001. The notice also attempted to reassure exhibitors that they won’t get dinged too deeply by unionized service personnel. Finally, pricing for pre-show and in-booth promotions will be reduced by 5%.

______________________________________________

NARDELLI REVEALS DEPOT’S SHIFT TO

EXPO, URBAN STORE FORMATS

Speaking to a packed room at last week’s National Hardware Show in Chicago, Bob Nardelli, president and CEO of Home Depot, announced the company’s commitment to new store formats. “We are VERY excited about our EXPO platform,” Nardelli emphasized. There are currently 45 such stores, but wants to up that to 100 in major markets within five years. However, that’s about half of what had been announced in the past.

Nardelli says another new concept will also get the push: the “Urban” store concept. Headed up by Home Depot veteran Bob Wittman and weighing in at no more than 80,000 sq.ft., they will backfill into smaller markets, operating on a “hub and spoke” principle, offering delivery from other larger nearby stores on product not carried in the smaller version.

In an exclusive interview with Hardlines, Nardelli explained the absence of Home Depot Canada from the show in Chicago last week. The decision not to come was a last minute one that came right from the Atlanta head office. Turns out Nardelli was to bring the entire board of directors up to see the Canadian operation first hand immediately after the show.

Nardelli told me coming up to Canada to see Depot’s décor and design centre that’s been developed in Toronto. Hints of it were tested at the Castlefield store in Toronto, and fine-tuned in the new Yorkdale store about three kilometres north of the Castlefield site. He wants the “soft-side DIY” approach rolled out chain-wide.

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

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

______________________________________________

NORAL MARKETING:

Representing leading manufacturers since 1986. We ensure high profile retail presence for a wide range of product lines. Why not make yours one of them?

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.

______________________________________________

Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Hardlines

Canada’s electronic information service for the home improvement industry

August 20, 2001

Volume vii, #35

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

hardlines.ca <https://hardlines.ca/>

* * * * * *

SUMMER PUBLISHING SCHEDULE:

Hardlines will not publish on August 27th. But don’t worry, the World Headquarters remain open as we get ready for our gala two-day Hardlines Conference event September 12-13. — Michael

* * * * * *

SPECIAL CHICAGO SHOW REPORT:

* Declining attendance gets mixed reviews

* Home Depot puts push on EXPO and Urban formats

* * * * * *

LAST CHANCE TO BOOK YOUR CONFERENCE HOTEL:

* * * * * *

September 12, 2001, at the Four Points Sheraton Hotel, Toronto Airport!

HARDLINES MARKETING CONFERENCE UPDATE:

Some sponsorships still available for the Conference. Go to https://hardlines.ca/html/conferences.html for details, or call me! — Michael

* * * * * *

INDUSTRY NEWS. EVERY DAY — Our website has daily updates on retail and industry news that matter to you. Keep informed. Visit hardlines.ca <https://hardlines.ca/> . Every day.

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CHICAGO REPORT: SMALLER HARDWARE SHOW STILL ATTRACTS CANUCKS

Smaller, with lots of empty spaces strategically filled with tables and benches, the world’s second largest hardware and home improvement show was almost 20% smaller this year.

The show still managed to attract an estimated 63,000 people and 3,000 exhibiting companies, but only 20% of those visitors were from outside the U.S.

Some did not make it though: most notably, a team of buyers from Home Depot Canada had their flight plans to Chicago grounded at the last minute (see adjoining story).

Maple Leaf Night, the CHHMA’s Canadian buyer reception, remains, however, a focal point for Canucks in Chicago. This event was supported by the attendance of key Canadian buying personnel.

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NARDELLI REVEALS DEPOT’S SHIFT TO

EXPO, URBAN STORE FORMATS

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

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NORAL MARKETING:

Representing leading manufacturers since 1986. We ensure high profile retail presence for a wide range of product lines. Why not make yours one of them?

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

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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.

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Hardlines is published weekly (except monthly in December and August)

by McLARNEYCOM

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HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

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