Archives

Aug. 13, 2001

 

HARDLINES

Canada’s electronic information service for the home improvement industry

August 13, 2001

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

SUMMER PUBLISHING SCHEDULE:

This week I’m at the National Hardware Show in Chicago. So Hardlines will

not publish on August 13th or 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. — MM

* * * * * *

(If you‚re a retailer, please disregard the following, or pass it along to

anyone you think might be interested. Thanks!– MM)

HARDLINES QUARTERLY REPORT, in association with PEAK ASSOCIATES INC., is

pleased to announce our first ever Annual Executive Compensation Survey for

Canadian Home Improvement Manufacturing Executives.

 

This Survey is part of our initiative to develop meaningful research on our

industry, the results which appear in each issue of our new newsletter,

Hardlines Quarterly Report.

 

In order to ensure accuracy and confidentiality, individual company survey

information and subsequent results will only be discussed with the

authorized senior contact at each participating company, or their designate.

Positions to be covered include the following functional areas:

 

Manufacturer / Agent

VP / Director, Sales & Marketing

VP / Director, Marketing

VP / Director / National Sales Manager

National Account Manager

Marketing Manager

 

For each position, the survey will track base compensation, cash benefits,

bonus, stock options, or other profit-sharing plans. Results are aggregated

with only the Low, High, Median and Mean values disclosed. Information will

not be disclosed on any individual company. A worksheet is enclosed to help

you compile your company’s data.

 

Peak Associates will compile the results by mid-September and present them

to survey participants immediately thereafter to allow for 2002 resource

planning.

 

Summarized results will also be available exclusively to subscribers of the

HARDLINESú Quarterly Report in the 2001 4Q Edition.

 

Click here to view the questionnaire. It’s really simple.

Then participate in complete confidence by calling Rick Matthews, Peak

 

Associates Inc., at 416-979-7303 ext 230; matthews@peakassociates.com

 

 

Thanks,

Michael

 

PS: Peak Associates is a member of:

– Canadian Hardware & Housewares Manufacturers Association

– Canadian Marketing Association

– Canadian Professional Sales Association

– National Personnel Associates

______________________________________________

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

by McLARNEYCOM

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

© 2001 by Michael McLarney.

HARDLINESú 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 ˆ but let us handle your

internal routing from this end!

______________________________________________

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

August 13, 2001

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

* * * * * *

SUMMER PUBLISHING SCHEDULE:

This week I’m at the National Hardware Show in Chicago. So Hardlines will

not publish on August 13th or 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. — MM

* * * * * *

(If you‚re a retailer, please disregard the following, or pass it along to

anyone you think might be interested. Thanks!– MM)

HARDLINES QUARTERLY REPORT, in association with PEAK ASSOCIATES INC., is

pleased to announce our first ever Annual Executive Compensation Survey for

Canadian Home Improvement Manufacturing Executives.

 

This Survey is part of our initiative to develop meaningful research on our

industry, the results which appear in each issue of our new newsletter,

Hardlines Quarterly Report.

 

In order to ensure accuracy and confidentiality, individual company survey

information and subsequent results will only be discussed with the

authorized senior contact at each participating company, or their designate.

Positions to be covered include the following functional areas:

 

Manufacturer / Agent

VP / Director, Sales & Marketing

VP / Director, Marketing

VP / Director / National Sales Manager

National Account Manager

Marketing Manager

 

For each position, the survey will track base compensation, cash benefits,

bonus, stock options, or other profit-sharing plans. Results are aggregated

with only the Low, High, Median and Mean values disclosed. Information will

not be disclosed on any individual company. A worksheet is enclosed to help

you compile your company’s data.

 

Peak Associates will compile the results by mid-September and present them

to survey participants immediately thereafter to allow for 2002 resource

planning.

 

Summarized results will also be available exclusively to subscribers of the

HARDLINESú Quarterly Report in the 2001 4Q Edition.

 

Click here to view the questionnaire. It’s really simple.

Then participate in complete confidence by calling Rick Matthews, Peak

 

Associates Inc., at 416-979-7303 ext 230; matthews@peakassociates.com

 

 

Thanks,

Michael

 

PS: Peak Associates is a member of:

– Canadian Hardware & Housewares Manufacturers Association

– Canadian Marketing Association

– Canadian Professional Sales Association

– National Personnel Associates

______________________________________________

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

by McLARNEYCOM

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

© 2001 by Michael McLarney.

HARDLINESú 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 ˆ but let us handle your

internal routing from this end!

______________________________________________

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.

 

Aug6_01

HARDLINES

Canada’s electronic information service for the home improvement industry

August 6, 2001

Volume vii, #33

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 13th and August 27th … But don’t worry, we’re in the office (or at the Chicago show!), getting ready for the Hardlines Marketing Conference. — MM

* * * * * *

IN THIS ISSUE:

* Home Depot’s new buying structure puts Canadian in question

* Amazing facts! Big box sales totals now greater than hardware stores

* Exclusive: women are involved in 75% of home improvement decisions

* Kent gets online with vendors via LBMX portal

* * * * * *

DEADLINE NEARS FOR LOW CONFERENCE HOTEL RATE:

The Retail Strategies Symposium (September 12) and the Hardlines Marketing Conference (September 13) will be the most incredible combined event of the year — so book now: to get our special hotel rate of $149 at the Four Points Sheraton, call 1-800-737-3211.

Call for details!

PLEASE NOTE: our special low room rate ends August 14th!

* * * * * *

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.

______________________________________________

HOME DEPOT CENTRALIZES MOST BUYING TO ATLANTA

Home Depot Inc. is realigning its merchandising operation in a move that concentrates core assortment selection and purchasing to the Atlanta headquarters. Most buying functions from the nine North American regional offices will be moved, effective immediately. The move will result in about 80% of the company’s buying becoming centralized.

Regional merchandising teams will be in charge of tailoring assortments and sourcing locally for each store.

The reorganization renders 140 buying jobs redundant. However, these people will be offered other positions with the company, says Jerry Shields, a spokesperson for Home Depot in Atlanta.

Store merchandising responsibility will move to a vice-president, merchandising sales and services, supported by a divisional sales merchant with departmental merchandising responsibility.

The impact on Home Depot’s Canadian operations remains unclear. The reorganization does not affect operations, under the aegis of Home Depot Canada’s president, Annette Verschuren. And for the near term, at least, no changes will be made to the team of Eric Peterson, vice-president merchandising.

After the program restructuring is implemented in the U.S., we’ll do a study and see how we can integrate into Canada,” says Shields.

Home Depot says it is pitching the change as a means of helping vendors. “We wanted more of a centralized buying team,” says Jerry Edwards, senior vice-president of merchandising, in a prepared statement. Rather than making nine pitches, one for each division, they can now develop programs centrally through Atlanta. Regional merchants will be freed to develop customized product mixes, working with teams of merchants who will extract specific area preferences.

(For a more complete listing of recent changes in Home Depot’s U.S. personnel, “People on the Move” in the July 30 issue of Hardlines. — Michael)

______________________________________________

CANADIAN TIRE REPORTS INCREASED PROFITS IN 2Q

Canadian Tire Corp. reported second-quarter consolidated net earnings of $53.4 million, up 8.9% from $49.0 million during the same period in 2000. Sales by Canadian Tire associate dealers were up 12.9%, while same-store sales increased 7.0% after dropping 2.3% during 1Q 2000. Net shipments to dealers were up 7.3%. Consolidated gross operating revenue for the second quarter was $1.499 billion, up 7.2% from $1.398 billion in 2000.

CTC finished the first six months with consolidated net earnings of $82.1 million, up 12.2%. First half results reflect increased profits in all businesses, as well as an $8 million first-quarter pre-tax gain on the sale of its third-party credit card receivables business in Financial Services.

For the first half of the year, retail sales were up 8.1%. Same-store sales rose 2.3%. During the period, Sales per square foot, calculated on a rolling 12-month basis, for CTC’s traditional stores was $8.4, while new-format stores achieved $14.9 per square foot.

Twelve new-format stores were opened during the second quarter, bringing to 249 the total number of new-format stores that have been opened since the rebuilding program was initiated in 1994.

______________________________________________

HQR SURVEY SHEDS LIGHT ON FEMALE

DIY SHOPPING HABITS

A national consumer survey conducted for Hardlines Quarterly Report reveals the scope of female influence when it comes to home improvement. Women are involved, either by themselves or with their partners, in about three-quarters of most home improvement project decisions, according to the survey, done by ACNielsen exclusively for Hardlines.

They also have their own preferences when it comes to shopping for hardware and home improvement products. Of the women surveyed, 42% said they usually made home improvement purchases at Canadian Tire, 25% said they preferred to shop at big-box stores and 21% said their first choice was their neighbourhood hardware store.

Women are changing the DIY arena. Their store preferences — and the reasons behind them — shed light on recent initiatives of many retailers, from the softening of Home Depot’s décor categories to Rona’s efforts to up the ante in the shopability of its stores.

(Read the comprehensive results of this survey in the 3Q issue of Hardlines Quarterly Report, available in a few days.)

______________________________________________

BIG BOXES NOW GENERATE MORE

SALES THAN HARDWARE STORES

Sales by traditional hardware stores account for almost one fifth of the retail home improvement market in Canada. But, according to a new Hardlines study, sales from Canadian big boxes accounted for 21.5% of all home improvement sales, ahead of hardware stores, at 19.7%.

In 2000, there were 125 big boxes in Canada. The total size of the retail hardware and home improvement market has increased 6.7% over 1999.

(For the full story on this report, see the 3Q issue of Hardlines Quarterly Report, available soon, only from Hardlines. — MM)

______________________________________________

COMPANIES IN THE NEWS

Home Depot plans to open 14 stores in Canada next year. Initial expansion will focus on Québec (St. Bruno, West Central Montréal, St. Henri) and then Western Canada (including Red Deer, AB).

Kent Building Supplies in Saint John and London, ON-based LBMX have joined forces to create a private electronic trading community to facilitate the exchange of electronic documents between Kent and its suppliers. The Kent trading community will be implemented in phases, starting with the exchange of electronic invoices from suppliers to the Kent head office. Kent is a member of ILDC.

Sodisco-Howden Group has selected Partner Dedicated Services Inc., a subsidiary of Pollock NationaLease, to continue providing dedicated transportation services to support their distribution from their London, ON warehousing facility.

Weyerhaeuser Co.’s Forestlands operations in the Okanagan and Boundary Timber Supply Areas have been certified to the Canadian Standards Association’s Sustainable Forest Management system standard. The certification covers approximately 324,200 hectares of Crown and private forests that Weyerhaeuser manages or owns in the Vernon, Penticton and Boundary Forest Districts. The same forestlands were certified to the ISO 14001 Environmental Management System in 1999.

Wal-Mart Canada will build a 129,000-sq.ft. store in Mount Pearl, NF. The new facility is scheduled to open in the Summer of 2002 and will replace the Wal-Mart at The Village Mall in St. John’s.

Domtar Inc. has obtained Forest Stewardship Council certification for its forest management practices in the Gilmour Forest near Trenton, ON. In April 2000, Domtar obtained a similar certification for its private lands in New York state.

Canfor Co. reported a net income of $10.1 million for the second quarter of 2001, citing hampered results due to the deteriorating pulp market and the uncertainty arising from the Canada/U.S. softwood lumber dispute. Net sales during the quarter were $511.2 million, an increase of $29.6 million over the previous quarter, largely the result of higher lumber prices and a weaker Canadian dollar.

Lafarge Co. experienced a decline in net income for the second quarter of 2001 as depressed pricing continued to negatively impact its gypsum division. For the three-month period ended June 30, 2001, the company had net sales of US$929.8 million from US$774.7 million last year.

The Nu-Gro Co. has completed the acquisition of 70% interest of EroGreen Seeds Inc. Nu-Gro announced the acquisition of the Brampton, ON business from its owner, Paul Eros. Eros will retain 30% interest and continue as the general manager for the business.

Home Depot in the U.S. has unveiled a website devoted to hurricane planning and clean-up. In addition to weather alerts and general hurricane facts, the site provides instructions on what to do before and after a storm, including installing storm shutters and storm panels, and recovering damaged lawns and gardens. Suggestions are available on safety products such as fire extinguishers, first aid kits and light sticks, instead of candles.

The ten-year low for lumber prices reached in early 2001 has taken a major bite out of overall first quarter production value for Alberta forest products. Statistics released by the Alberta Forest Products Association show that show that total value of forest products produced by AFPA members in the first quarter of 2001 was $766 million. This represents a decline of $224 million or 23% from the first quarter 2000 total of $989 million.

A Sears Furniture and Appliances store has opened in Victoria. The 43,000-sq.ft. outlet includes a Whole Home selection of furniture, rugs and accent décor items and emphasis on appliances with a selection of its Brand Central department’s major appliances.

Newell Rubbermaid Inc. has announced an income fall of 44% in the second quarter, meeting its lowered expectations due to economic sluggishness and restructuring actions. Company sales fell 3.5% to US$1.72 billion from US$1.79 billion for the corresponding time in 2000.

______________________________________________

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 11.00
Emco 7.50 2.60 6.70
Goodfellow 11.00 8.00 9.00
Home Depot 49.74 47.61 49.13
Hudson’s Bay 17.65 12.40 17.75
Lowe’s 64.90 34.25 36.93
Sears Canada 37.25 18.55 23.60
Taiga Forest 10.00 6.80 9.95
West Fraser 36.50 21.00 34.50

______________________________________________

When a stupid man is doing something he is ashamed of, he always declares that it is his duty.”

George Bernard Shaw (Irish playwright)

______________________________________________

MARKET INDICATORS

 

Gross domestic product advanced 0.3% in May, the strongest showing in seven months. Manufacturing of food and wood products also increased. Overall, 14 of 22 major industry groups, which accounted for 81.8% of the factory sector’s output, increased production in May. The largest declines were reported by makers of furniture and beverages.

U.S. consumer spending increased 0.4% in June, up from a 0.3% gain in May. Incomes increased 0.3% compared with 0.2% in the previous month, the Commerce Department said. Both numbers were higher than Wall Street had expected.

The University of Michigan’s final July consumer sentiment index edged down to 92.4 from 92.6 in June, but was well above a five-year low of 90.6 struck in February. The preliminary index, released mid-month to subscribers only, read 93.7; economists had forecast the final index to read 93.6.

______________________________________________

NOTED …

 

… The CHHMA’s annual Maple Leaf Night will be held August 13, 2001, at the Drake Hotel in Chicago. Many vendors fly down to the National Hardware Show just for this event. For retailers and CHHMA members only — so make sure you’ve registered! And make sure you’re dressed appropriately: dress is smart business casual, so be creative! For more info, go to: http://www.chhma.ca/events/events.html

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

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

______________________________________________

NORAL INSTORE:

BOOST your retail profile with instore sales support for your products and merchandising.

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

 

* * * * * *

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.

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

______________________________________________

 

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

© 2001 by Michael McLarney.

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!

______________________________________________

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

August 6, 2001

Volume vii, #33

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 13th and August 27th … But don’t worry, we’re in the office (or at the Chicago show!), getting ready for the Hardlines Marketing Conference. — MM

* * * * * *

IN THIS ISSUE:

* Home Depot’s new buying structure puts Canadian in question

* Amazing facts! Big box sales totals now greater than hardware stores

* Exclusive: women are involved in 75% of home improvement decisions

* Kent gets online with vendors via LBMX portal

* * * * * *

DEADLINE NEARS FOR LOW CONFERENCE HOTEL RATE:

The Retail Strategies Symposium (September 12) and the Hardlines Marketing Conference (September 13) will be the most incredible combined event of the year — so book now: to get our special hotel rate of $149 at the Four Points Sheraton, call 1-800-737-3211.

Call for details!

PLEASE NOTE: our special low room rate ends August 14th!

* * * * * *

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.

______________________________________________

HOME DEPOT CENTRALIZES MOST BUYING TO ATLANTA

Home Depot Inc. is realigning its merchandising operation in a move that concentrates core assortment selection and purchasing to the Atlanta headquarters. Most buying functions from the nine North American regional offices will be moved, effective immediately. The move will result in about 80% of the company’s buying becoming centralized.

Regional merchandising teams will be in charge of tailoring assortments and sourcing locally for each store.

The reorganization renders 140 buying jobs redundant. However, these people will be offered other positions with the company, says Jerry Shields, a spokesperson for Home Depot in Atlanta.

Store merchandising responsibility will move to a vice-president, merchandising sales and services, supported by a divisional sales merchant with departmental merchandising responsibility.

The impact on Home Depot’s Canadian operations remains unclear. The reorganization does not affect operations, under the aegis of Home Depot Canada’s president, Annette Verschuren. And for the near term, at least, no changes will be made to the team of Eric Peterson, vice-president merchandising.

After the program restructuring is implemented in the U.S., we’ll do a study and see how we can integrate into Canada,” says Shields.

Home Depot says it is pitching the change as a means of helping vendors. “We wanted more of a centralized buying team,” says Jerry Edwards, senior vice-president of merchandising, in a prepared statement. Rather than making nine pitches, one for each division, they can now develop programs centrally through Atlanta. Regional merchants will be freed to develop customized product mixes, working with teams of merchants who will extract specific area preferences.

(For a more complete listing of recent changes in Home Depot’s U.S. personnel, “People on the Move” in the July 30 issue of Hardlines. — Michael)

______________________________________________

CANADIAN TIRE REPORTS INCREASED PROFITS IN 2Q

Canadian Tire Corp. reported second-quarter consolidated net earnings of $53.4 million, up 8.9% from $49.0 million during the same period in 2000. Sales by Canadian Tire associate dealers were up 12.9%, while same-store sales increased 7.0% after dropping 2.3% during 1Q 2000. Net shipments to dealers were up 7.3%. Consolidated gross operating revenue for the second quarter was $1.499 billion, up 7.2% from $1.398 billion in 2000.

CTC finished the first six months with consolidated net earnings of $82.1 million, up 12.2%. First half results reflect increased profits in all businesses, as well as an $8 million first-quarter pre-tax gain on the sale of its third-party credit card receivables business in Financial Services.

For the first half of the year, retail sales were up 8.1%. Same-store sales rose 2.3%. During the period, Sales per square foot, calculated on a rolling 12-month basis, for CTC’s traditional stores was $8.4, while new-format stores achieved $14.9 per square foot.

Twelve new-format stores were opened during the second quarter, bringing to 249 the total number of new-format stores that have been opened since the rebuilding program was initiated in 1994.

______________________________________________

HQR SURVEY SHEDS LIGHT ON FEMALE

DIY SHOPPING HABITS

A national consumer survey conducted for Hardlines Quarterly Report reveals the scope of female influence when it comes to home improvement. Women are involved, either by themselves or with their partners, in about three-quarters of most home improvement project decisions, according to the survey, done by ACNielsen exclusively for Hardlines.

They also have their own preferences when it comes to shopping for hardware and home improvement products. Of the women surveyed, 42% said they usually made home improvement purchases at Canadian Tire, 25% said they preferred to shop at big-box stores and 21% said their first choice was their neighbourhood hardware store.

Women are changing the DIY arena. Their store preferences — and the reasons behind them — shed light on recent initiatives of many retailers, from the softening of Home Depot’s décor categories to Rona’s efforts to up the ante in the shopability of its stores.

(Read the comprehensive results of this survey in the 3Q issue of Hardlines Quarterly Report, available in a few days.)

______________________________________________

BIG BOXES NOW GENERATE MORE

SALES THAN HARDWARE STORES

Sales by traditional hardware stores account for almost one fifth of the retail home improvement market in Canada. But, according to a new Hardlines study, sales from Canadian big boxes accounted for 21.5% of all home improvement sales, ahead of hardware stores, at 19.7%.

In 2000, there were 125 big boxes in Canada. The total size of the retail hardware and home improvement market has increased 6.7% over 1999.

(For the full story on this report, see the 3Q issue of Hardlines Quarterly Report, available soon, only from Hardlines. — MM)

______________________________________________

COMPANIES IN THE NEWS

Home Depot plans to open 14 stores in Canada next year. Initial expansion will focus on Québec (St. Bruno, West Central Montréal, St. Henri) and then Western Canada (including Red Deer, AB).

Kent Building Supplies in Saint John and London, ON-based LBMX have joined forces to create a private electronic trading community to facilitate the exchange of electronic documents between Kent and its suppliers. The Kent trading community will be implemented in phases, starting with the exchange of electronic invoices from suppliers to the Kent head office. Kent is a member of ILDC.

Sodisco-Howden Group has selected Partner Dedicated Services Inc., a subsidiary of Pollock NationaLease, to continue providing dedicated transportation services to support their distribution from their London, ON warehousing facility.

Weyerhaeuser Co.’s Forestlands operations in the Okanagan and Boundary Timber Supply Areas have been certified to the Canadian Standards Association’s Sustainable Forest Management system standard. The certification covers approximately 324,200 hectares of Crown and private forests that Weyerhaeuser manages or owns in the Vernon, Penticton and Boundary Forest Districts. The same forestlands were certified to the ISO 14001 Environmental Management System in 1999.

Wal-Mart Canada will build a 129,000-sq.ft. store in Mount Pearl, NF. The new facility is scheduled to open in the Summer of 2002 and will replace the Wal-Mart at The Village Mall in St. John’s.

Domtar Inc. has obtained Forest Stewardship Council certification for its forest management practices in the Gilmour Forest near Trenton, ON. In April 2000, Domtar obtained a similar certification for its private lands in New York state.

Canfor Co. reported a net income of $10.1 million for the second quarter of 2001, citing hampered results due to the deteriorating pulp market and the uncertainty arising from the Canada/U.S. softwood lumber dispute. Net sales during the quarter were $511.2 million, an increase of $29.6 million over the previous quarter, largely the result of higher lumber prices and a weaker Canadian dollar.

Lafarge Co. experienced a decline in net income for the second quarter of 2001 as depressed pricing continued to negatively impact its gypsum division. For the three-month period ended June 30, 2001, the company had net sales of US$929.8 million from US$774.7 million last year.

The Nu-Gro Co. has completed the acquisition of 70% interest of EroGreen Seeds Inc. Nu-Gro announced the acquisition of the Brampton, ON business from its owner, Paul Eros. Eros will retain 30% interest and continue as the general manager for the business.

Home Depot in the U.S. has unveiled a website devoted to hurricane planning and clean-up. In addition to weather alerts and general hurricane facts, the site provides instructions on what to do before and after a storm, including installing storm shutters and storm panels, and recovering damaged lawns and gardens. Suggestions are available on safety products such as fire extinguishers, first aid kits and light sticks, instead of candles.

The ten-year low for lumber prices reached in early 2001 has taken a major bite out of overall first quarter production value for Alberta forest products. Statistics released by the Alberta Forest Products Association show that show that total value of forest products produced by AFPA members in the first quarter of 2001 was $766 million. This represents a decline of $224 million or 23% from the first quarter 2000 total of $989 million.

A Sears Furniture and Appliances store has opened in Victoria. The 43,000-sq.ft. outlet includes a Whole Home selection of furniture, rugs and accent décor items and emphasis on appliances with a selection of its Brand Central department’s major appliances.

Newell Rubbermaid Inc. has announced an income fall of 44% in the second quarter, meeting its lowered expectations due to economic sluggishness and restructuring actions. Company sales fell 3.5% to US$1.72 billion from US$1.79 billion for the corresponding time in 2000.

______________________________________________

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 11.00
Emco 7.50 2.60 6.70
Goodfellow 11.00 8.00 9.00
Home Depot 49.74 47.61 49.13
Hudson’s Bay 17.65 12.40 17.75
Lowe’s 64.90 34.25 36.93
Sears Canada 37.25 18.55 23.60
Taiga Forest 10.00 6.80 9.95
West Fraser 36.50 21.00 34.50

______________________________________________

When a stupid man is doing something he is ashamed of, he always declares that it is his duty.”

George Bernard Shaw (Irish playwright)

______________________________________________

MARKET INDICATORS

 

Gross domestic product advanced 0.3% in May, the strongest showing in seven months. Manufacturing of food and wood products also increased. Overall, 14 of 22 major industry groups, which accounted for 81.8% of the factory sector’s output, increased production in May. The largest declines were reported by makers of furniture and beverages.

U.S. consumer spending increased 0.4% in June, up from a 0.3% gain in May. Incomes increased 0.3% compared with 0.2% in the previous month, the Commerce Department said. Both numbers were higher than Wall Street had expected.

The University of Michigan’s final July consumer sentiment index edged down to 92.4 from 92.6 in June, but was well above a five-year low of 90.6 struck in February. The preliminary index, released mid-month to subscribers only, read 93.7; economists had forecast the final index to read 93.6.

______________________________________________

NOTED …

 

… The CHHMA’s annual Maple Leaf Night will be held August 13, 2001, at the Drake Hotel in Chicago. Many vendors fly down to the National Hardware Show just for this event. For retailers and CHHMA members only — so make sure you’ve registered! And make sure you’re dressed appropriately: dress is smart business casual, so be creative! For more info, go to: http://www.chhma.ca/events/events.html

______________________________________________

* * * * HARDLINES MARKETPLACE* * * *

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

______________________________________________

NORAL INSTORE:

BOOST your retail profile with instore sales support for your products and merchandising.

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

 

* * * * * *

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.

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

______________________________________________

 

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

© 2001 by Michael McLarney.

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!

______________________________________________

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.

:

 

July31_01

HARDLINES™
Five years serving Canada’s home improvement industry
July 31, 2000 – Volume vi, #30
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail:
buzz@hardlinesfax.com

 


Check out our incredible Classifieds section!



* * * * * *
* IN THIS ISSUE:
* Revelstoke sees growth in its traditional stores
* Canadian housing starts expected to continue growing into 2001
* Wal-Mart may cut a deal with German competitor
* * * * * *

 

NO HARDLINES FOR THE NEXT TWO WEEKS

We’re taking our summer hiatus, so Hardlines will be published only once this month. The next issue will come out August 21, following our trip to the National Hardware Show in Chicago. However, the World Headquarters will remain open during this time, with business continuing as usual. – Michael

 


REVELSTOKE: MORE THAN JUST BIG BOXES

 

Its big box stores may seem to stay in the spotlight, but Revelstoke continues to develop its traditional home centres, as well. While new locations are on hold as expansion efforts focus on Revy big boxes in the the Greater Toronto Area, the company continues to invest in existing stores under 65,000 sq.ft.

A 35,000-sq.ft. site in Calgary (West Hill) has been refurbished to accommodate about 30% more inventory, for a total of 30,000 SKUs. The more traditional gondolas have been replaced by palette presentation, reflecting big box merchandising in a more upscale environment, says Terry Crofford, vice-president store operatons for Revelstoke’s home centre division. “The site has a big box store look and feel and presentation,” he notes. In addition, aisles have been narrowed and lighting levels improved.

The Calgary store is in a mall location with a one-acre yard, a formula that has proved successful elsewhere. A mall store in Maple Ridge, BC was refurbished last fall.

The 34 traditional Revelstoke stores, which serve a combination of contractors and DIYers, depending on the market, accounted for an estimated 45% of Revelstoke’s $800 million in sales last year. Even though the Revelstoke stores had healthy sales in the first part of the year, the whole company suffered, starting in March, as poor weather throughout much of Canada began to take its toll. Sales for the latest quarter for the entire Revelstoke division were $21 million, about the same as last year.

* * * * * *

WAL-MART EYES DEAL WITH GERMAN RIVAL

Wal-Mart Stores Inc. is considering an alliance with German rival Metro AG whereby the two retailers would exchange stakes in firms and avoid the other’s business specialty, according to the German newspaper Welt am Sonntag.

Under the proposed agreement, Metro would transfer its Real department store chain and Extra grocery chain to Wal-Mart, speeding up that company’s expansion in Germany. Metro, in turn, would take over Wal-Mart’s Sam’s Club wholesale chain of some 1,000 stores, bolstering its profitable Cash & Carry division. The deal may be a result of shareholder resistance to Wal-Mart’s out-and-out takeover of Metro. Three main shareholders own more than 60% of its stock. Duesseldorf-based Metro made a profit on ordinary activities of 1.35 billion DM last year on sales of 85.7 billion DM.

 


COMPANIES IN THE NEWS

 

Rona’s first big-box style store in the GTA is now slated to open in spring 2001. The store, to be located in Brampton, has been delayed from November 2000. It will be followed by a store in Mississauga.

In anticipation of the fall re-opening of Eatons stores across the country, Sears is holding career fairs in Victoria, Calgary and Toronto. It intends to hire about 2,500 people over the next few weeks.

Imperial Manufacturing Group made two acquisitions earlier this month. Design Krolon Ltd., a maker of aluminum columns and associated products, will fall under Imperial’s Kool-Ray banner starting in 2001. The second purchase was Vancouver-based Break Thru Products Inc., a seller of pop-up vent deflectors, which will now be manufactured in Imperial’s register plant.

Ace Hardware Corp. in the U.S. broke ground last week on a new 778,000-sq.ft. distribution centre in Prince George, VA, about 35 km south of Richmond, according to a report in The Hard Fax. The new facility will house about US$40 million worth of inventory and serve some 325 Ace retailers in the U.S. mid-Atlantic region.

Envirogard Products Ltd. has appointed J. Wright Sales Ltd. as its manufacturer’s agent for Atlantic Canada, handling both the plumbing and retail channels. In Manitoba and Saskatchewan, J.L. Sales Ltd. has been appointed to handle Envirogard’s wholesale plumbing market. Canwest Agencies Ltd. will handle those duties in Alberta and Barclay Sales will cover British Columbia.

Distribution America, a US$3.1 billion independent distributor network, and Solutions On-Site (SOS), a web-based, customizable product selection service for the residential home building industry, have announced a strategic alliance. The SOS service helps design and building professionals guide their customers through the selection process of a full range of products for new home construction and renovation/remodelling.


 

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 20.60
Canfor 19.80 10.10 11.80
Goodfellow 12.55 8.75 10.10
Home Depot 70.00 35.75 52 11/16
Hudsons Bay 23.85 12.50 16.10
Lowe’s Cos. 67.25 40.37 42 1/4
Sears Canada 42.50 29.00 34.40
Taiga Forest 14.75 7.50 7.50
West Fraser 41.00 28.00 30.00

 

 

“There were wild ducks here yesterday.” – Leo Tolstoy (1828 – 1910)


PEOPLE ON THE MOVE

 

At Imperial Manufacturing, Luc Lemonde has been promoted to the position of general manager – Imperial Kool-Ray. (506-523-9117)

Joseph Galli Jr. has been appointed president and CEO of VerticalNet Inc. , a business-to-business online marketplace. Galli moves over from Amazon.com, where he had served as president and COO. He leaves on the heels of the company’s second-quarter loss of US$317.2 million. Amazon’s stock dropped 9% on the news of Galli’s departure. Galli’s career includes heading up Black & Decker’s worldwide power tool division, where he orchestrated the relaunch of DeWalt as a specialty brand of B&D. (215-328-6100)

U.S. farm and ranch store chain Tractor Supply Co. has promoted Stanley L. Ruta to the position of senior vice-president – store operations. Tractor Supply operates 296 retail farm stores in 27 states. (615-366-4600)

 


MARKET INDICATORS

 

Housing starts should rise to 158,300 units this year and 163,400 in 2001, compared with 149,968 in 1999, according to CMHC’s third quarter Housing Outlook report. Total housing starts are expected to grow from 149,968 seasonally adjusted in 1999 to a forecasted 158,300 seasonally adjusted this year, and 163,400 in 2001. Sales of existing homes are expected to fall short of 1999’s level, but rebound to 343,100 in 2001. Renovation spending will also increase to reflect these sales, from $24.9 billion last year to $25.9 billion in 2000 and $27.1 billion in 2001.

Starts in Toronto will increase to 37,500 this year, representing half the homes built in the province. Construction will be up substantially in many Ontario centres, including Ottawa. Single-detached starts will grow from 92,190 in 1999 to an estimated 98,200 in 2000 and 100,100 in 2001. Multiple housing starts will grow from 57,778 in 1999 to 60,100 this year and 63,300 in 2001.

The average MLS selling price for a house in Canada will grow from $158,064 in 1999 to a forecasted level of $164,700 this year and $171,000 next year.

 


OVERHEARD

 

“This isn’t rocket science. It’s still the quality of the people on the floor that makes the difference.”- Leonard Lee, president, Lee Valley Tools Ltd., talks to Hardlines about customer service.

 


HARDLINES SEMINAR AT CAN-SAVE
We are pleased to be part of the Can-Save Summer Buying Expo 2000 at Can-Save’s new warehouse in Barrie, ON on August 22. We’ll present a seminar called: “Winning strategies of independents who compete alongside the big box” (or something like that!). We share the bill with Canadian Contractor magazine, which will do a presentation on “Installed Sales.” For more information about the day, call Can-Save at 1-800-461-5411. – Michael

 

THE WOMEN’S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

September 21: “Fully Alive From 9 to 5!” Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com

For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org

 


Hardlines Classifieds

 

Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * * *

HARDLINES™ the electronic newsletter. www.hardlinesfax.com phone: 416-489-3396; fax: 416-489-6154. E-mail: buzz@hardlinesfax.com

Michael McLarney, Editor & Publisher (extension 1): mike@hardlinesfax.com
Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com
Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2000 by Michael McLarney. Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. Call for information on a site license for your company. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST = $212.75) per year (GST #13987 0398 RT). (Please make cheque payable to McLarneyCom.)

 


 

HARDLINES™
Five years serving Canada’s home improvement industry
July 31, 2000 – Volume vi, #30
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail:
buzz@hardlinesfax.com

 


Check out our incredible Classifieds section!



* * * * * *
* IN THIS ISSUE:
* Revelstoke sees growth in its traditional stores
* Canadian housing starts expected to continue growing into 2001
* Wal-Mart may cut a deal with German competitor
* * * * * *

 

NO HARDLINES FOR THE NEXT TWO WEEKS

We’re taking our summer hiatus, so Hardlines will be published only once this month. The next issue will come out August 21, following our trip to the National Hardware Show in Chicago. However, the World Headquarters will remain open during this time, with business continuing as usual. – Michael

 


REVELSTOKE: MORE THAN JUST BIG BOXES

 

Its big box stores may seem to stay in the spotlight, but Revelstoke continues to develop its traditional home centres, as well. While new locations are on hold as expansion efforts focus on Revy big boxes in the the Greater Toronto Area, the company continues to invest in existing stores under 65,000 sq.ft.

A 35,000-sq.ft. site in Calgary (West Hill) has been refurbished to accommodate about 30% more inventory, for a total of 30,000 SKUs. The more traditional gondolas have been replaced by palette presentation, reflecting big box merchandising in a more upscale environment, says Terry Crofford, vice-president store operatons for Revelstoke’s home centre division. “The site has a big box store look and feel and presentation,” he notes. In addition, aisles have been narrowed and lighting levels improved.

The Calgary store is in a mall location with a one-acre yard, a formula that has proved successful elsewhere. A mall store in Maple Ridge, BC was refurbished last fall.

The 34 traditional Revelstoke stores, which serve a combination of contractors and DIYers, depending on the market, accounted for an estimated 45% of Revelstoke’s $800 million in sales last year. Even though the Revelstoke stores had healthy sales in the first part of the year, the whole company suffered, starting in March, as poor weather throughout much of Canada began to take its toll. Sales for the latest quarter for the entire Revelstoke division were $21 million, about the same as last year.

* * * * * *

WAL-MART EYES DEAL WITH GERMAN RIVAL

Wal-Mart Stores Inc. is considering an alliance with German rival Metro AG whereby the two retailers would exchange stakes in firms and avoid the other’s business specialty, according to the German newspaper Welt am Sonntag.

Under the proposed agreement, Metro would transfer its Real department store chain and Extra grocery chain to Wal-Mart, speeding up that company’s expansion in Germany. Metro, in turn, would take over Wal-Mart’s Sam’s Club wholesale chain of some 1,000 stores, bolstering its profitable Cash & Carry division. The deal may be a result of shareholder resistance to Wal-Mart’s out-and-out takeover of Metro. Three main shareholders own more than 60% of its stock. Duesseldorf-based Metro made a profit on ordinary activities of 1.35 billion DM last year on sales of 85.7 billion DM.

 


COMPANIES IN THE NEWS

 

Rona’s first big-box style store in the GTA is now slated to open in spring 2001. The store, to be located in Brampton, has been delayed from November 2000. It will be followed by a store in Mississauga.

In anticipation of the fall re-opening of Eatons stores across the country, Sears is holding career fairs in Victoria, Calgary and Toronto. It intends to hire about 2,500 people over the next few weeks.

Imperial Manufacturing Group made two acquisitions earlier this month. Design Krolon Ltd., a maker of aluminum columns and associated products, will fall under Imperial’s Kool-Ray banner starting in 2001. The second purchase was Vancouver-based Break Thru Products Inc., a seller of pop-up vent deflectors, which will now be manufactured in Imperial’s register plant.

Ace Hardware Corp. in the U.S. broke ground last week on a new 778,000-sq.ft. distribution centre in Prince George, VA, about 35 km south of Richmond, according to a report in The Hard Fax. The new facility will house about US$40 million worth of inventory and serve some 325 Ace retailers in the U.S. mid-Atlantic region.

Envirogard Products Ltd. has appointed J. Wright Sales Ltd. as its manufacturer’s agent for Atlantic Canada, handling both the plumbing and retail channels. In Manitoba and Saskatchewan, J.L. Sales Ltd. has been appointed to handle Envirogard’s wholesale plumbing market. Canwest Agencies Ltd. will handle those duties in Alberta and Barclay Sales will cover British Columbia.

Distribution America, a US$3.1 billion independent distributor network, and Solutions On-Site (SOS), a web-based, customizable product selection service for the residential home building industry, have announced a strategic alliance. The SOS service helps design and building professionals guide their customers through the selection process of a full range of products for new home construction and renovation/remodelling.


 

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 20.60
Canfor 19.80 10.10 11.80
Goodfellow 12.55 8.75 10.10
Home Depot 70.00 35.75 52 11/16
Hudsons Bay 23.85 12.50 16.10
Lowe’s Cos. 67.25 40.37 42 1/4
Sears Canada 42.50 29.00 34.40
Taiga Forest 14.75 7.50 7.50
West Fraser 41.00 28.00 30.00

 

 

“There were wild ducks here yesterday.” – Leo Tolstoy (1828 – 1910)


PEOPLE ON THE MOVE

 

At Imperial Manufacturing, Luc Lemonde has been promoted to the position of general manager – Imperial Kool-Ray. (506-523-9117)

Joseph Galli Jr. has been appointed president and CEO of VerticalNet Inc. , a business-to-business online marketplace. Galli moves over from Amazon.com, where he had served as president and COO. He leaves on the heels of the company’s second-quarter loss of US$317.2 million. Amazon’s stock dropped 9% on the news of Galli’s departure. Galli’s career includes heading up Black & Decker’s worldwide power tool division, where he orchestrated the relaunch of DeWalt as a specialty brand of B&D. (215-328-6100)

U.S. farm and ranch store chain Tractor Supply Co. has promoted Stanley L. Ruta to the position of senior vice-president – store operations. Tractor Supply operates 296 retail farm stores in 27 states. (615-366-4600)

 


MARKET INDICATORS

 

Housing starts should rise to 158,300 units this year and 163,400 in 2001, compared with 149,968 in 1999, according to CMHC’s third quarter Housing Outlook report. Total housing starts are expected to grow from 149,968 seasonally adjusted in 1999 to a forecasted 158,300 seasonally adjusted this year, and 163,400 in 2001. Sales of existing homes are expected to fall short of 1999’s level, but rebound to 343,100 in 2001. Renovation spending will also increase to reflect these sales, from $24.9 billion last year to $25.9 billion in 2000 and $27.1 billion in 2001.

Starts in Toronto will increase to 37,500 this year, representing half the homes built in the province. Construction will be up substantially in many Ontario centres, including Ottawa. Single-detached starts will grow from 92,190 in 1999 to an estimated 98,200 in 2000 and 100,100 in 2001. Multiple housing starts will grow from 57,778 in 1999 to 60,100 this year and 63,300 in 2001.

The average MLS selling price for a house in Canada will grow from $158,064 in 1999 to a forecasted level of $164,700 this year and $171,000 next year.

 


OVERHEARD

 

“This isn’t rocket science. It’s still the quality of the people on the floor that makes the difference.”- Leonard Lee, president, Lee Valley Tools Ltd., talks to Hardlines about customer service.

 


HARDLINES SEMINAR AT CAN-SAVE
We are pleased to be part of the Can-Save Summer Buying Expo 2000 at Can-Save’s new warehouse in Barrie, ON on August 22. We’ll present a seminar called: “Winning strategies of independents who compete alongside the big box” (or something like that!). We share the bill with Canadian Contractor magazine, which will do a presentation on “Installed Sales.” For more information about the day, call Can-Save at 1-800-461-5411. – Michael

 

THE WOMEN’S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

September 21: “Fully Alive From 9 to 5!” Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com

For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org

 


Hardlines Classifieds

 

Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * * *

HARDLINES™ the electronic newsletter. www.hardlinesfax.com phone: 416-489-3396; fax: 416-489-6154. E-mail: buzz@hardlinesfax.com

Michael McLarney, Editor & Publisher (extension 1): mike@hardlinesfax.com
Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com
Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2000 by Michael McLarney. Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. Call for information on a site license for your company. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST = $212.75) per year (GST #13987 0398 RT). (Please make cheque payable to McLarneyCom.)

 


 

Jul. 30, 2001


HARDLINES

HARDLINES

 

Canada’s electronic information service for the home
improvement industry

 

July 30, 2001

 

Volume vii, #32

 

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 reorganizes executive structure

 

* Harron Lumber escapes parent’s bankruptcy

 

* New studies refute U.S. softwood countervailing charges

 

* Weyerhaeuser 2Q profits take a tumble

 

* * * * * *

 

The Retail Strategies Symposium is a half-day education
seminar that will feature industry overviews from authorities 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.

 

September 12, 2001, at the Four Points Sheraton Hotel, Toronto
Airport. Call for details!

 

* * * * * *

 

BIG NAMES, NETWORKING, AT NEXT

 

HARDLINES MARKETING 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
bev@hardlines.ca
for more info, or call me direct: 416-489-3396. – Michael

 

(Some sponsorships still available for the event –
call me for details.)

 

(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.

 

* * * * * *

 

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.

 

* * * * * *

 

RONA REORGANIZES EXECUTIVE STRUCTURE

 

After its purchase of Revy Home Centres, Rona Inc. faced
the challenge of consolidating a management team that included more than 25
presidents and vice-presidents. The first casualty of the deal was Rick Blickstead,
the high-profile president and COO of Rona’s retail division, based in
Toronto.

 

Now, the executive team is: Jean Émond, senior vice-president,
people and culture. Both Evelyn Ross, in charge of Rona Retail’s HR, and
Sarah McLellan, human resources administrator for Lansing Buildall, will report
to Émond. Michel Robin is now interim vice-president, big box stores.
The Toronto office of Rona, including Glen French, will report to Robin for
the near term. In addition, Al Cheney, vice-president, operations at Revy’s
Surrey, BC headquarters, will report to Robin.

 

Executive vice-president, traditional stores, is Claude
Bernier. Reporting to him is Terry Crofford, vice-president operations and development
for Revelstoke stores, and Rob Wilbrink, now vice-president operations and development
for Lansing and Cashway. Formerly vice-president of retail operations for Lansing,
he fills in the void left by last week’s departure of John Kitchen at Lansing,
and now the departure of Jim Pybus, who had been president of Rona Cashway.

 

On the buying side, Marc Dufresne is executive vice-president,
purchasing and logistics. Reporting to him are: Jeff Kilgour, vice-president,
purchasing, forest products; Larry Jarvis, vice-president, building materials;
and Pierre Pelletier, vice-president, logistics and procurement.

 

The latest appointments are widely considered just the first
step in reorganizing the Rona organization and its four separate businesses,
namely Rona, Cashway, Lansing Buildall and Revy. Amdist the uncertainty that
future change portends, each executive vice-president is expected to develop
his own team and report to Rona president and CEO Robert Dutton sometime in
September.

 

______________________________________________
HARRON ESCAPES BANKRUPTCY FATE OF
PARENT COMPANY

Ownership of Harron Hardware and Building Supplies has been
placed back in the hands of the Harron family after the bankruptcy of its holding
company, Network Forest Products. Harron had been bought by Network in early
2000.

 

The Moorefield, ON-based store, whose 22-year-old history
includes a six-year start as a Home Hardware dealer, has been considered a viable
concern. It is now backed financially by GMAC and has been reinstated as a Castle
member in its own right. Harron’s previous membership with Castle was as
a division of Network.

 

Cutler Forest Products, acquired by Network in 2000, will
also go back to its original family owners.

 

Harron’s prospects look positive. “We are getting out
of the woods and, in fact, doing very well for the situation,” says Jeff Harron,
company president. “This could be a record month in our history.” Harron’s
sales in 2000 were $22.5 million, a 12.5% increase over the year before.

 

Harron’s viability, and its renewed membership to Castle
represents a significant strengthening of Castle’s position. Cashway’s
acquisition of six Do-it centers from Hensall District Co-op in 1999 was a big
loss for the buying group. “In one full swoop, this replaces the loss from the
Hensall business,” says Dave Morton, national marketing manager for Castle.
“As well, Harron’s position is strengthened as an individual member,” he
adds.

 

Network Forest Products is a wholly-owned subsidiary of
Value Holdings Inc., which is largely owned by the Ziner family. When Network
was put into receivership in May 2001, the board of directors of Value resigned,
with the exception of Robert Ziner, who stayed on as director of Value Holdings.

 

______________________________________________
NEW STUDIES IN LUMBER DISPUTE DEBUNK
U.S. ARGUMENTS

Two reports from three respected forestry industry consultants
and a leading American academic have destroyed key arguments in the U.S. countervailing
case against Canada.

 

We have the definitive proof that the U.S. lumber lobby’s
cry of ‘unfair subsidy’ is completely without basis,” said John Allan,
President of the B.C. Lumber Trade Council.

 

The first report, by three forestry consulting firms in
Québec City, Vancouver and Washington, concludes that cross-border stumpage
rate comparisons are wrong legally and factually. The U.S. lumber industry,
the report says, has failed to take into account many factors that go into the
calculation of stumpage rates – regulations, taxation levels, capital and
labour costs, exchange rates and timber and client conditions, which vary widely
between Canada and the U.S.

 

The legal analysis submitted with the report shows that
the U.S. Department of Commerce itself considers cross-border comparisons such
as those used by the U.S. industry to be “illegal, flawed and capricious.”

 

The second report concludes that log export restrictions
do not amount to a subsidy since price gaps observed between export and domestic
sale of logs are normal. The report emphasizes that these gaps exist in countries
with no log export restrictions, and that these restrictions long ago ceased
to have any significant effect on the price of logs in British Columbia.

 

This report was created by Dr. Edward E. Leamer, an international
trade expert, the Chauncey J. Medberry chair in management, a professor of Statistics,
and Economics, as well as the director of the business forecast project at UCLA.

 

The studies, originally commissioned by Government of British
Columbia and

 

the B.C. Lumber Trade Council, have been sent to the U.S.
Department of Commerce, which is examining the U.S. lumber industry’s trade
complaint filed in the wake of the

 

Canada-US softwood lumber agreement.

 

______________________________________________

 

COMPANIES IN THE NEWS

 

West Fraser Timber announced second quarter results for
the period ended June 30, 2001. Sales during the quarter were $416 million,
compared with $402 million in 2000. Earnings for the first half of 2001 were
$71 million on sales of $791 million. This compares with earnings of $85 million
on sales of $796 million in the corresponding period of 2000.

 

Weyerhaeuser Co. reported second quarter net earnings of
US$171 million on net sales of US$3.9 billion. This compares with US$203 million
on sales of US$4.2 billion for the second quarter of 2000.

 

Kohler Windows and Entrance Systems has completed expansion
of its manufacturing facility in Debert, NS. The expansion adds 30,000 sq.ft.
to the facility, increasing the total size to 100,000 sq.ft.

 

Do It Best Corp. has announced a 30% increase in international
sales over the last year, largely due to the co-op’s addition of 20 international
stores to its roster. Locations include Mexico, Saint Lucia, Yap Island, San
Maarten, El Salvador, Costa Rica, the British Virgin Islands, Thailand and Venezuela.

 

Home Depot in Atlanta has launched an information campaign
throughout its more than 1,200 stores to meet rapidly growing consumer interest
in products that reduce home energy consumption. Several hundred products currently
on store shelves will be prominently marked with displays bearing a bright green
“E-plus” logo, and carrying energy-saving information.

 

Two of the biggest Internet retailers retreated from their
ambitious plans to operate as stand-alone companies and said they would be folded
into the brick-and-mortar retail giants that helped get them launched in the
first place. Wal-Mart Stores is acquiring all the minority interest in Walmart.com,
which will remain a separate business unit within Wal-Mart. San Francisco-based
BlueLight.com, said its offline affiliate Kmart Co. would buy the 40% of the
company that it does not already own.

 

CORRECTION: Last week I referred to Allroc’s status
as an independent buying group. It was never a member of Evergreen Building
Materials, but rather a member of BID, the predecessor to Evergreen. Evergreen’s
membership comprises Castle Building Centres, Co-op Fédérée,
Delroc Industries, Federated Co-op and Irly Distributors. Combined retail sales
were $2 billion in 2000. (For a complete breakdown of buying group affiliations
in Canada, see the latest issue of Hardlines Quarterly Report! – MM)

 

______________________________________________

 

CANADIAN STOCK WATCH

 

COMPANY 52-WK HIGH 52-WK LOW CLOSE (FRI)
Canadian Tire 25.20 15.05 24.79
Canfor 16.95 7.65 10.60
Emco 7.50 2.60 6.50
Goodfellow 11.00 8.00 9.00
Home Depot 49.74 47.61 49.65
Hudson’s Bay 17.65 12.40 17.90
Lowe’s 64.90 34.25 38.90
Sears Canada 37.25 18.55 21.65
Taiga Forest 10.00 6.80 10.35
West Fraser 36.50 21.00 31.35

______________________________________________

 

We know nothing about motivation. All we can do is write
books about it.”

 

Peter Drucker (American business guru)

 

______________________________________________

 

MARKET INDICATORS

 

The composite index edged up 0.1% in June, after no change
in April and a 0.1% decline in May. This marked the first increase since December
2000. The housing index posted a third straight increase in June. Housing starts
rose after vacancy rates in May touched a low for the year, while existing home
sales set a new record high in June. Household demand for big-ticket items remained
the most buoyant sector of the economy.

 

Retail sales advanced 0.2% in May to $24.3 billion, following
an 1.8% increase in April. Higher prices were reported for gasoline, cigarettes
and fresh fruit. Retail sales have gained since November 2000, after four consecutive
months with essentially no gains. Retail stores classified as “other” posted
a 1.5% sales increase in May. Within this sector, the group of stores that includes
hardware stores, bookstores, and lawn and garden centres saw their largest gain,
3.5%. Since the start of 2001, sales in this group regained the ground lost
in the second half of 2000. Sales by large retailers totalled $6.8 billion in
May, an 8.9% increase over May 2000. Each commodity group recorded a year-over-year
sales increase in May. The largest gains were posted for health and personal
care products, hardware, lawn and garden products, and sporting and leisure
goods.

 

U.S. retail sales at discount, chain and department stores
rose 1.3% during the first two retail weeks of July as demand for seasonal goods
picked up on better weather conditions and increased promotions, according to
the Redbook Retail Sales Average.

 

______________________________________________

 

PEOPLE ON THE MOVE

 

Philip Marinaro as been has appointed Ontario branch manager
at Roland Boulanger. Marinaro was formerly Ontario sales manager with Sauder
Moulding; he has over 11 years of industry experience. (416-819-0358)

 

Home Depot in Atlanta has reorganized its merchandising
unit in an effort to strengthen relations with vendors. Jerry Edwards is now
senior vice-president for merchandising; he will be responsible for merchandising
operations, reporting to CEO Bob Nardelli … Dick Sullivan has been appointed
senior vice-president of marketing … Wayne Gibson is now senior vice-president
of global logistics. Both Gibson and Sullivan will report to Nardelli. They
had previously reported to the former chief merchandising officer, Mark Baker,
who is leaving the company … Bill Patterson is now president of the Northwest
division; he will report directly to Nardelli, as well. (770-433-8211)

 

______________________________________________

 

NOTED …

 

With the abolition of Germany’s 70-year-old law against
discounts, shoppers will finally be able to enjoy coupons, two-for-one deals
and haggling for extras. Under the old law, retailers were prevented from offering
customers discounts of more than 3% outside of traditional Summer and Winter
sales, or promotional offers such as “buy two, get one free.”

 

______________________________________________

 

OVERHEARD …

 

The first thing was to put the pieces in place and prove
to vendors that we’re serious. I think we’ve done that. Now we can
look for new members and move forward. We’re looking to add something from
the standpoint of hardlines.”

 

Andrew Battagliotti, general manager of ILDC, comments
on possible growth of SpanCan, the umbrella buying group that comprises ILDC
and Sodisco-Howden Group.

 

______________________________________________

 

* * * * 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.

 

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

 

______________________________________________

 

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

 

© 2001 by Michael McLarney.

 

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!

 

______________________________________________

 

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

 

July 30, 2001

 

Volume vii, #32

 

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 reorganizes executive structure

 

* Harron Lumber escapes parent’s bankruptcy

 

* New studies refute U.S. softwood countervailing charges

 

* Weyerhaeuser 2Q profits take a tumble

 

* * * * * *

 

The Retail Strategies Symposium is a half-day education
seminar that will feature industry overviews from authorities 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.

 

September 12, 2001, at the Four Points Sheraton Hotel, Toronto
Airport. Call for details!

 

* * * * * *

 

BIG NAMES, NETWORKING, AT NEXT

 

HARDLINES MARKETING 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
bev@hardlines.ca
for more info, or call me direct: 416-489-3396. – Michael

 

(Some sponsorships still available for the event –
call me for details.)

 

(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.

 

* * * * * *

 

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.

 

* * * * * *

 

RONA REORGANIZES EXECUTIVE STRUCTURE

 

After its purchase of Revy Home Centres, Rona Inc. faced
the challenge of consolidating a management team that included more than 25
presidents and vice-presidents. The first casualty of the deal was Rick Blickstead,
the high-profile president and COO of Rona’s retail division, based in
Toronto.

 

Now, the executive team is: Jean Émond, senior vice-president,
people and culture. Both Evelyn Ross, in charge of Rona Retail’s HR, and
Sarah McLellan, human resources administrator for Lansing Buildall, will report
to Émond. Michel Robin is now interim vice-president, big box stores.
The Toronto office of Rona, including Glen French, will report to Robin for
the near term. In addition, Al Cheney, vice-president, operations at Revy’s
Surrey, BC headquarters, will report to Robin.

 

Executive vice-president, traditional stores, is Claude
Bernier. Reporting to him is Terry Crofford, vice-president operations and development
for Revelstoke stores, and Rob Wilbrink, now vice-president operations and development
for Lansing and Cashway. Formerly vice-president of retail operations for Lansing,
he fills in the void left by last week’s departure of John Kitchen at Lansing,
and now the departure of Jim Pybus, who had been president of Rona Cashway.

 

On the buying side, Marc Dufresne is executive vice-president,
purchasing and logistics. Reporting to him are: Jeff Kilgour, vice-president,
purchasing, forest products; Larry Jarvis, vice-president, building materials;
and Pierre Pelletier, vice-president, logistics and procurement.

 

The latest appointments are widely considered just the first
step in reorganizing the Rona organization and its four separate businesses,
namely Rona, Cashway, Lansing Buildall and Revy. Amdist the uncertainty that
future change portends, each executive vice-president is expected to develop
his own team and report to Rona president and CEO Robert Dutton sometime in
September.

 

______________________________________________
HARRON ESCAPES BANKRUPTCY FATE OF
PARENT COMPANY

Ownership of Harron Hardware and Building Supplies has been
placed back in the hands of the Harron family after the bankruptcy of its holding
company, Network Forest Products. Harron had been bought by Network in early
2000.

 

The Moorefield, ON-based store, whose 22-year-old history
includes a six-year start as a Home Hardware dealer, has been considered a viable
concern. It is now backed financially by GMAC and has been reinstated as a Castle
member in its own right. Harron’s previous membership with Castle was as
a division of Network.

 

Cutler Forest Products, acquired by Network in 2000, will
also go back to its original family owners.

 

Harron’s prospects look positive. “We are getting out
of the woods and, in fact, doing very well for the situation,” says Jeff Harron,
company president. “This could be a record month in our history.” Harron’s
sales in 2000 were $22.5 million, a 12.5% increase over the year before.

 

Harron’s viability, and its renewed membership to Castle
represents a significant strengthening of Castle’s position. Cashway’s
acquisition of six Do-it centers from Hensall District Co-op in 1999 was a big
loss for the buying group. “In one full swoop, this replaces the loss from the
Hensall business,” says Dave Morton, national marketing manager for Castle.
“As well, Harron’s position is strengthened as an individual member,” he
adds.

 

Network Forest Products is a wholly-owned subsidiary of
Value Holdings Inc., which is largely owned by the Ziner family. When Network
was put into receivership in May 2001, the board of directors of Value resigned,
with the exception of Robert Ziner, who stayed on as director of Value Holdings.

 

______________________________________________
NEW STUDIES IN LUMBER DISPUTE DEBUNK
U.S. ARGUMENTS

Two reports from three respected forestry industry consultants
and a leading American academic have destroyed key arguments in the U.S. countervailing
case against Canada.

 

We have the definitive proof that the U.S. lumber lobby’s
cry of ‘unfair subsidy’ is completely without basis,” said John Allan,
President of the B.C. Lumber Trade Council.

 

The first report, by three forestry consulting firms in
Québec City, Vancouver and Washington, concludes that cross-border stumpage
rate comparisons are wrong legally and factually. The U.S. lumber industry,
the report says, has failed to take into account many factors that go into the
calculation of stumpage rates – regulations, taxation levels, capital and
labour costs, exchange rates and timber and client conditions, which vary widely
between Canada and the U.S.

 

The legal analysis submitted with the report shows that
the U.S. Department of Commerce itself considers cross-border comparisons such
as those used by the U.S. industry to be “illegal, flawed and capricious.”

 

The second report concludes that log export restrictions
do not amount to a subsidy since price gaps observed between export and domestic
sale of logs are normal. The report emphasizes that these gaps exist in countries
with no log export restrictions, and that these restrictions long ago ceased
to have any significant effect on the price of logs in British Columbia.

 

This report was created by Dr. Edward E. Leamer, an international
trade expert, the Chauncey J. Medberry chair in management, a professor of Statistics,
and Economics, as well as the director of the business forecast project at UCLA.

 

The studies, originally commissioned by Government of British
Columbia and

 

the B.C. Lumber Trade Council, have been sent to the U.S.
Department of Commerce, which is examining the U.S. lumber industry’s trade
complaint filed in the wake of the

 

Canada-US softwood lumber agreement.

 

______________________________________________

 

COMPANIES IN THE NEWS

 

West Fraser Timber announced second quarter results for
the period ended June 30, 2001. Sales during the quarter were $416 million,
compared with $402 million in 2000. Earnings for the first half of 2001 were
$71 million on sales of $791 million. This compares with earnings of $85 million
on sales of $796 million in the corresponding period of 2000.

 

Weyerhaeuser Co. reported second quarter net earnings of
US$171 million on net sales of US$3.9 billion. This compares with US$203 million
on sales of US$4.2 billion for the second quarter of 2000.

 

Kohler Windows and Entrance Systems has completed expansion
of its manufacturing facility in Debert, NS. The expansion adds 30,000 sq.ft.
to the facility, increasing the total size to 100,000 sq.ft.

 

Do It Best Corp. has announced a 30% increase in international
sales over the last year, largely due to the co-op’s addition of 20 international
stores to its roster. Locations include Mexico, Saint Lucia, Yap Island, San
Maarten, El Salvador, Costa Rica, the British Virgin Islands, Thailand and Venezuela.

 

Home Depot in Atlanta has launched an information campaign
throughout its more than 1,200 stores to meet rapidly growing consumer interest
in products that reduce home energy consumption. Several hundred products currently
on store shelves will be prominently marked with displays bearing a bright green
“E-plus” logo, and carrying energy-saving information.

 

Two of the biggest Internet retailers retreated from their
ambitious plans to operate as stand-alone companies and said they would be folded
into the brick-and-mortar retail giants that helped get them launched in the
first place. Wal-Mart Stores is acquiring all the minority interest in Walmart.com,
which will remain a separate business unit within Wal-Mart. San Francisco-based
BlueLight.com, said its offline affiliate Kmart Co. would buy the 40% of the
company that it does not already own.

 

CORRECTION: Last week I referred to Allroc’s status
as an independent buying group. It was never a member of Evergreen Building
Materials, but rather a member of BID, the predecessor to Evergreen. Evergreen’s
membership comprises Castle Building Centres, Co-op Fédérée,
Delroc Industries, Federated Co-op and Irly Distributors. Combined retail sales
were $2 billion in 2000. (For a complete breakdown of buying group affiliations
in Canada, see the latest issue of Hardlines Quarterly Report! – MM)

 

______________________________________________

 

CANADIAN STOCK WATCH

COMPANY 52-WK HIGH 52-WK LOW CLOSE (FRI)
Canadian Tire 25.20 15.05 24.79
Canfor 16.95 7.65 10.60
Emco 7.50 2.60 6.50
Goodfellow 11.00 8.00 9.00
Home Depot 49.74 47.61 49.65
Hudson’s Bay 17.65 12.40 17.90
Lowe’s 64.90 34.25 38.90
Sears Canada 37.25 18.55 21.65
Taiga Forest 10.00 6.80 10.35
West Fraser 36.50 21.00 31.35

______________________________________________

 

We know nothing about motivation. All we can do is write
books about it.”

 

Peter Drucker (American business guru)

 

______________________________________________

 

MARKET INDICATORS

 

The composite index edged up 0.1% in June, after no change
in April and a 0.1% decline in May. This marked the first increase since December
2000. The housing index posted a third straight increase in June. Housing starts
rose after vacancy rates in May touched a low for the year, while existing home
sales set a new record high in June. Household demand for big-ticket items remained
the most buoyant sector of the economy.

 

Retail sales advanced 0.2% in May to $24.3 billion, following
an 1.8% increase in April. Higher prices were reported for gasoline, cigarettes
and fresh fruit. Retail sales have gained since November 2000, after four consecutive
months with essentially no gains. Retail stores classified as “other” posted
a 1.5% sales increase in May. Within this sector, the group of stores that includes
hardware stores, bookstores, and lawn and garden centres saw their largest gain,
3.5%. Since the start of 2001, sales in this group regained the ground lost
in the second half of 2000. Sales by large retailers totalled $6.8 billion in
May, an 8.9% increase over May 2000. Each commodity group recorded a year-over-year
sales increase in May. The largest gains were posted for health and personal
care products, hardware, lawn and garden products, and sporting and leisure
goods.

 

U.S. retail sales at discount, chain and department stores
rose 1.3% during the first two retail weeks of July as demand for seasonal goods
picked up on better weather conditions and increased promotions, according to
the Redbook Retail Sales Average.

 

______________________________________________

 

PEOPLE ON THE MOVE

 

Philip Marinaro as been has appointed Ontario branch manager
at Roland Boulanger. Marinaro was formerly Ontario sales manager with Sauder
Moulding; he has over 11 years of industry experience. (416-819-0358)

 

Home Depot in Atlanta has reorganized its merchandising
unit in an effort to strengthen relations with vendors. Jerry Edwards is now
senior vice-president for merchandising; he will be responsible for merchandising
operations, reporting to CEO Bob Nardelli … Dick Sullivan has been appointed
senior vice-president of marketing … Wayne Gibson is now senior vice-president
of global logistics. Both Gibson and Sullivan will report to Nardelli. They
had previously reported to the former chief merchandising officer, Mark Baker,
who is leaving the company … Bill Patterson is now president of the Northwest
division; he will report directly to Nardelli, as well. (770-433-8211)

 

______________________________________________

 

NOTED …

 

With the abolition of Germany’s 70-year-old law against
discounts, shoppers will finally be able to enjoy coupons, two-for-one deals
and haggling for extras. Under the old law, retailers were prevented from offering
customers discounts of more than 3% outside of traditional Summer and Winter
sales, or promotional offers such as “buy two, get one free.”

 

______________________________________________

 

OVERHEARD …

 

The first thing was to put the pieces in place and prove
to vendors that we’re serious. I think we’ve done that. Now we can
look for new members and move forward. We’re looking to add something from
the standpoint of hardlines.”

 

Andrew Battagliotti, general manager of ILDC, comments
on possible growth of SpanCan, the umbrella buying group that comprises ILDC
and Sodisco-Howden Group.

 

______________________________________________

 

* * * * 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.

 

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

 

______________________________________________

 

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

 

© 2001 by Michael McLarney.

 

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!

 

______________________________________________

 

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.

July24_01

HARDLINES™
Five years serving Canada’s home improvement industry
July 24, 2000 – Volume vi, #29
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail:
buzz@hardlinesfax.com

 


Check out our incredible Classifieds section!


HARDLINES HAS MOVED! Thanks to the tremendous support we’ve received from you, our subscribers, over the past five years, we are very excited to be able to expand into a new location. Please note the new address of the World Headquarters:

 

542 Mount Pleasant Rd., Suite 302
Toronto, Ontario, Canada M4S 2M7
(Phone and fax remain the same)
phone: 416.489.3396 fax: 416.489.6154

* * * * * *
* IN THIS ISSUE:
* Westburne to sells to giant French wholesaler
* Verschuren new keynote at Hardlines Conference
* Revelstoke cites flat sales in second quarter
* Walters front-runner for next head of Sears Roebuck
* * * * * *

FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:

September 14, 2000. An incredible one-day symposium featuring some of North America’s leaders in retail, including the executive team from Home Depot Canada, McMillan/Doolittle, Gardener’s Supply, J&H Builder’s Warehouse (an amazing Tim-BR-Mart dealer from Saskatoon), Tim Silk from UWO’s Ivey Business School – and much more! Expect about 200 retail and vendor executives to attend!

* * * * * *

Just thought I’d mention it again for the record: HARDLINES HAS MOVED! Please note the new address of the World Headquarters:

542 Mount Pleasant Rd., Suite 302
Toronto, Ontario, Canada M4S 2M7
(Phone and fax remain the same)
phone: 416.489.3396 fax: 416.489.6154

* * * * * *

HARDLINES SEMINAR AT CAN-SAVE

We are pleased to be part of the Can-Save Summer Buying Expo 2000 at Can-Save’s new warehouse in Barrie, ON on August 22. We’ll present a seminar called: “Winning strategies of independents who compete alongside the big box” (or something like that!). We share the bill with Canadian Contractor magazine, which will do a presentation on “Installed Sales.” For more information about the day, call Can-Save at 1-800-461-5411. – Michael

* * * * * *

COTTAGE FOR RENT: LAKE HURON Available August 19-26 and August 26-September 2, this 3-bedroom lakefront cottage sleeps 5 and has shallow-entry sandy beach ideal for kids, TV, fireplace, canoe. Pets ok. On Howdenvale Beach, near Owen Sound and north of Sauble Beach at the foot of the Bruce Peninsula. $775 for each week. For more information, contact Hardlines at: 416-480-3396, or e-mail: buzz@hardlinesfax.com

 


FRENCH WHOLESALER BUYS WESTBURNE

 

Montréal-based plumbing and electrical wholesaler Westburne Inc. has struck a deal to sell all outstanding shares of Westburne to Rexel S.A. The cash sale is valued at $987 million and is expected to close by the end of September.

Westburne has itself been aggressively buying up companies in both Canada and the U.S. over the past two years, pushing total sales in 1999 to $2.47 billion. It is a leading distributor of electrical supplies in Canada and through acquisition has fortified its position as a distributor of plumbing, waterworks, refrigeration and HVAC, and industrial products.

Rexel, a subsidiary of the Pinault-Printemps-Redoute group, is an electrical distributor with revenues of $8.5 billion, 70% of that from outside France – including about $3 billion in the U.S. With a presence on four continents and 30 countries, Rexel has 20,000 employees and a network of more than 1,600 branches.

* * * * * *

VERSCHUREN AND NEW VP WILL SPEAK AT HARDLINES CONFERENCE

Pat Farrah, the outspoken and colourful senior vice-president of merchandising at Home Depot in Atlanta, has unexpectedly pulled out of this fall’s Hardlines Marketing Conference.

But the two top executives from Home Depot’s Canadian division have agreed to take his place.

The one-day event will now feature Annette Verschuren, president of Home Depot Canada, and her vice-president of merchandising, Eric Petersen, as the keynote presenters during lunch at the conference.

The fifth annual Hardlines Marketing Conference is Canada’s premier symposium for the home improvement industry that no competitive minded retailer or vendor will want to miss (who writes this stuff?-MM). It will be held at the Eaton Centre Marriott Hotel in Toronto on September 14. A full lineup of retailers and retail experts from across North America will round out the day.

* * * * * *

REVELSTOKE RECORDS FLAT SALES IN SECOND QUARTER

For the second quarter ended June 30, West Fraser Timber had sales of $634 million, compared with $590 million in 1999. Earnings reached $43 million, compared with $37 million in the same period last year. For the first half, earnings were $85 million on sales of $1.185 billion, up from $51 million on sales of $1.034 billion.

The Revelstoke retail home improvement division generated earnings before interest and taxes for the quarter of $21 million, comparable with last year. Poor weather throughout much of Canada during the quarter and declining building materials prices resulted in same-store sales being relatively flat.

 


COMPANIES IN THE NEWS

 

Taiga Forest Products Ltd. had sales for the first quarter ended June 30 of $245.5 million, compared with $228.7 million for the same period in the previous year, the highest quarterly sales ever reported by the company. Earnings for the quarter were $273,000, down from $2.6 million in 1999.

Castle Building Centres Group has been rolling out its installed sales program to its members. Called All-Install, it involves branding reno and repair services through the store, supported by select contractor customers. About half of Castle’s 200-plus stores are offering installed sales, with more than a dozen adopting the All-Install program to date.

Can-Save will host its annual Summer Buying Expo at its new warehouse in Barrie, ON on August 22. Dealer customers from across Ontario and the Maritimes are expected to attend a day of seminars, food, golf and entertainment.

Rona Inc. has appointed Montréal-based BCP as its new ad agency. BCP will be responsible for all of Rona’s advertising and promotional campaigns, business that’s valued at $20 million. The agency will also handle the rollout of the Rona chain in Ontario.

Sears Canada had revenues for the 13 weeks ended July 1 of $1.546 billion, compared with $1.403 billion last year, an increase of 10.2%. This marked the company’s 12th consecutive record quarter for both revenues and earnings. Unaudited net earnings for the quarter improved by 15% to $45.9 million from $39.9 million last year. During the quarter, the company finalized its accounting for the acquisition of Eatons, which cost an estimated $180 million net of tax. The estimated value of the tax losses acquired exceeds the acquisition cost by $70 million. In the second quarter, $8.9 million was recorded in income. For the first half of 2000, Sears posted a profit of $69.4 million, compared with $57.1 million last year. Revenues were $2.981 billion, up 12% from $2.662 billion.

According to a report from CBS, Paul Walters, “the highly regarded CEO” of Sears Canada, is considered the front-runner in the search for the next head of Sears Roebuck & Co. in the U.S. Current CEO Arthur Martinez will retire at the end of this year. Sears Roebuck owns 55% of Sears Canada.

Wal-Mart Stores plans to add 50 new stores to the 95 it now operates in Germany and double its market share within three years, says a report in last week’s Wall Street Journal. The possibility it might consider acquiring Metro AG, Germany’s largest retail group, was not discounted by a Wal-Mart spokesperson.


 

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 22.20
Canfor 19.80 10.10 12.20
Goodfellow 12.55 8.75 10.30
Home Depot 70.00 35.75 57 1/8
Hudsons Bay 23.85 12.50 15.50
Lowe’s Cos. 67.25 40.40 45 1/8
Sears Canada 42.50 29.00 33.30
Taiga Forest 14.75 8.05 8.40
West Fraser 41.00 28.00 30.50

 

 

“I have made it a rule never to smoke more than one cigar at a time.” – Mark Twain (1835 – 1910)


PEOPLE ON THE MOVE

 

Jay Gregg has moved over from Owens Corning Canada, where he served as marketing and communications manager, to become director of marketing, panel products for Longlac Wood Industries Inc. He is responsible for the company’s finished and unfinished panel board business. (905-542-2700)

Bob Kendall has been promoted to the position of general manager of Ipex HomeRite Products. He was formerly director of sales … Steve Barker has joined Ipex as national accounts manager – Canada. He will be responsible for developing the company’s plumbing and electrical lines to the retail trade. He was formerly national accounts manager at Delta/Porter-Cable. (905-670-7676)

Evergreen Building Materials has elected the following shareholder representatives to its 2000-2001 board of directors: Terry Elliott of Delroc Industries Ltd. is president; Stuart Joule of Irly Distributors Ltd. is vice-president; Claude Gingras of Coopérative Fédérée de Québec is treasurer. Evergreen is an umbrella buying group whose members comprise a group of LBM buying groups and co-ops.

CLARIFICATION: Richard Friesen has in fact retired from his position as president of Cameron Ashley Canada. (905-677-4545)

 


MARKET INDICATORS

 

Housing starts in the U.S. fell 2.6% in June, a result of rising mortgage rates and a slowdown in the economy, according to the U.S. Commerce Department. Housing starts declined to a seasonally adjusted annual rate of 1.55 million last month, with a big drop in single-family home construction, which fell to a rate of 1.21 million. The level of housing starts in June declined to its lowest point since May 1998. Housing permits were unchanged in June after falling in four consecutive months.

 


OVERHEARD

 

“I think the buy-in was pretty significant. There is a recognition that installed sales is an opportunity and a good way to improve gross margins on building materials sales.” – Dave Morton, marketing manager for Castle Building Centres Group. The group recently offered “All-Install University” to educate members about its new installed sales program.

 


HARDLINES WHO’S WHO:
Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July.

 

HARDLINES INDUSTRY REPORT:
HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is!

FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:
September 14, 2000. An incredible one-day symposium featuring some of North America’s leaders in retail, including Home Depot, McMillan/Doolittle, Gardener’s Supply, J&H Builder’s Warehouse and much more! Expect about 200 retail and vendor executives to attend!

THE WOMEN’S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

September 21: “Fully Alive From 9 to 5!” Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com

For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org

 


Hardlines Classifieds

 

Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * * *

HARDLINES™ the electronic newsletter. www.hardlinesfax.com phone: 416-489-3396; fax: 416-489-6154. E-mail: buzz@hardlinesfax.com

Michael McLarney, Editor & Publisher (extension 1): mike@hardlinesfax.com
Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com
Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2000 by Michael McLarney. Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. Call for information on a site license for your company. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST = $212.75) per year (GST #13987 0398 RT). (Please make cheque payable to McLarneyCom.)

 


 

HARDLINES™
Five years serving Canada’s home improvement industry
July 24, 2000 – Volume vi, #29
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail:
buzz@hardlinesfax.com

 


Check out our incredible Classifieds section!


HARDLINES HAS MOVED! Thanks to the tremendous support we’ve received from you, our subscribers, over the past five years, we are very excited to be able to expand into a new location. Please note the new address of the World Headquarters:

 

542 Mount Pleasant Rd., Suite 302
Toronto, Ontario, Canada M4S 2M7
(Phone and fax remain the same)
phone: 416.489.3396 fax: 416.489.6154

* * * * * *
* IN THIS ISSUE:
* Westburne to sells to giant French wholesaler
* Verschuren new keynote at Hardlines Conference
* Revelstoke cites flat sales in second quarter
* Walters front-runner for next head of Sears Roebuck
* * * * * *

FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:

September 14, 2000. An incredible one-day symposium featuring some of North America’s leaders in retail, including the executive team from Home Depot Canada, McMillan/Doolittle, Gardener’s Supply, J&H Builder’s Warehouse (an amazing Tim-BR-Mart dealer from Saskatoon), Tim Silk from UWO’s Ivey Business School – and much more! Expect about 200 retail and vendor executives to attend!

* * * * * *

Just thought I’d mention it again for the record: HARDLINES HAS MOVED! Please note the new address of the World Headquarters:

542 Mount Pleasant Rd., Suite 302
Toronto, Ontario, Canada M4S 2M7
(Phone and fax remain the same)
phone: 416.489.3396 fax: 416.489.6154

* * * * * *

HARDLINES SEMINAR AT CAN-SAVE

We are pleased to be part of the Can-Save Summer Buying Expo 2000 at Can-Save’s new warehouse in Barrie, ON on August 22. We’ll present a seminar called: “Winning strategies of independents who compete alongside the big box” (or something like that!). We share the bill with Canadian Contractor magazine, which will do a presentation on “Installed Sales.” For more information about the day, call Can-Save at 1-800-461-5411. – Michael

* * * * * *

COTTAGE FOR RENT: LAKE HURON Available August 19-26 and August 26-September 2, this 3-bedroom lakefront cottage sleeps 5 and has shallow-entry sandy beach ideal for kids, TV, fireplace, canoe. Pets ok. On Howdenvale Beach, near Owen Sound and north of Sauble Beach at the foot of the Bruce Peninsula. $775 for each week. For more information, contact Hardlines at: 416-480-3396, or e-mail: buzz@hardlinesfax.com

 


FRENCH WHOLESALER BUYS WESTBURNE

 

Montréal-based plumbing and electrical wholesaler Westburne Inc. has struck a deal to sell all outstanding shares of Westburne to Rexel S.A. The cash sale is valued at $987 million and is expected to close by the end of September.

Westburne has itself been aggressively buying up companies in both Canada and the U.S. over the past two years, pushing total sales in 1999 to $2.47 billion. It is a leading distributor of electrical supplies in Canada and through acquisition has fortified its position as a distributor of plumbing, waterworks, refrigeration and HVAC, and industrial products.

Rexel, a subsidiary of the Pinault-Printemps-Redoute group, is an electrical distributor with revenues of $8.5 billion, 70% of that from outside France – including about $3 billion in the U.S. With a presence on four continents and 30 countries, Rexel has 20,000 employees and a network of more than 1,600 branches.

* * * * * *

VERSCHUREN AND NEW VP WILL SPEAK AT HARDLINES CONFERENCE

Pat Farrah, the outspoken and colourful senior vice-president of merchandising at Home Depot in Atlanta, has unexpectedly pulled out of this fall’s Hardlines Marketing Conference.

But the two top executives from Home Depot’s Canadian division have agreed to take his place.

The one-day event will now feature Annette Verschuren, president of Home Depot Canada, and her vice-president of merchandising, Eric Petersen, as the keynote presenters during lunch at the conference.

The fifth annual Hardlines Marketing Conference is Canada’s premier symposium for the home improvement industry that no competitive minded retailer or vendor will want to miss (who writes this stuff?-MM). It will be held at the Eaton Centre Marriott Hotel in Toronto on September 14. A full lineup of retailers and retail experts from across North America will round out the day.

* * * * * *

REVELSTOKE RECORDS FLAT SALES IN SECOND QUARTER

For the second quarter ended June 30, West Fraser Timber had sales of $634 million, compared with $590 million in 1999. Earnings reached $43 million, compared with $37 million in the same period last year. For the first half, earnings were $85 million on sales of $1.185 billion, up from $51 million on sales of $1.034 billion.

The Revelstoke retail home improvement division generated earnings before interest and taxes for the quarter of $21 million, comparable with last year. Poor weather throughout much of Canada during the quarter and declining building materials prices resulted in same-store sales being relatively flat.

 


COMPANIES IN THE NEWS

 

Taiga Forest Products Ltd. had sales for the first quarter ended June 30 of $245.5 million, compared with $228.7 million for the same period in the previous year, the highest quarterly sales ever reported by the company. Earnings for the quarter were $273,000, down from $2.6 million in 1999.

Castle Building Centres Group has been rolling out its installed sales program to its members. Called All-Install, it involves branding reno and repair services through the store, supported by select contractor customers. About half of Castle’s 200-plus stores are offering installed sales, with more than a dozen adopting the All-Install program to date.

Can-Save will host its annual Summer Buying Expo at its new warehouse in Barrie, ON on August 22. Dealer customers from across Ontario and the Maritimes are expected to attend a day of seminars, food, golf and entertainment.

Rona Inc. has appointed Montréal-based BCP as its new ad agency. BCP will be responsible for all of Rona’s advertising and promotional campaigns, business that’s valued at $20 million. The agency will also handle the rollout of the Rona chain in Ontario.

Sears Canada had revenues for the 13 weeks ended July 1 of $1.546 billion, compared with $1.403 billion last year, an increase of 10.2%. This marked the company’s 12th consecutive record quarter for both revenues and earnings. Unaudited net earnings for the quarter improved by 15% to $45.9 million from $39.9 million last year. During the quarter, the company finalized its accounting for the acquisition of Eatons, which cost an estimated $180 million net of tax. The estimated value of the tax losses acquired exceeds the acquisition cost by $70 million. In the second quarter, $8.9 million was recorded in income. For the first half of 2000, Sears posted a profit of $69.4 million, compared with $57.1 million last year. Revenues were $2.981 billion, up 12% from $2.662 billion.

According to a report from CBS, Paul Walters, “the highly regarded CEO” of Sears Canada, is considered the front-runner in the search for the next head of Sears Roebuck & Co. in the U.S. Current CEO Arthur Martinez will retire at the end of this year. Sears Roebuck owns 55% of Sears Canada.

Wal-Mart Stores plans to add 50 new stores to the 95 it now operates in Germany and double its market share within three years, says a report in last week’s Wall Street Journal. The possibility it might consider acquiring Metro AG, Germany’s largest retail group, was not discounted by a Wal-Mart spokesperson.


 

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 22.20
Canfor 19.80 10.10 12.20
Goodfellow 12.55 8.75 10.30
Home Depot 70.00 35.75 57 1/8
Hudsons Bay 23.85 12.50 15.50
Lowe’s Cos. 67.25 40.40 45 1/8
Sears Canada 42.50 29.00 33.30
Taiga Forest 14.75 8.05 8.40
West Fraser 41.00 28.00 30.50

 

 

“I have made it a rule never to smoke more than one cigar at a time.” – Mark Twain (1835 – 1910)


PEOPLE ON THE MOVE

 

Jay Gregg has moved over from Owens Corning Canada, where he served as marketing and communications manager, to become director of marketing, panel products for Longlac Wood Industries Inc. He is responsible for the company’s finished and unfinished panel board business. (905-542-2700)

Bob Kendall has been promoted to the position of general manager of Ipex HomeRite Products. He was formerly director of sales … Steve Barker has joined Ipex as national accounts manager – Canada. He will be responsible for developing the company’s plumbing and electrical lines to the retail trade. He was formerly national accounts manager at Delta/Porter-Cable. (905-670-7676)

Evergreen Building Materials has elected the following shareholder representatives to its 2000-2001 board of directors: Terry Elliott of Delroc Industries Ltd. is president; Stuart Joule of Irly Distributors Ltd. is vice-president; Claude Gingras of Coopérative Fédérée de Québec is treasurer. Evergreen is an umbrella buying group whose members comprise a group of LBM buying groups and co-ops.

CLARIFICATION: Richard Friesen has in fact retired from his position as president of Cameron Ashley Canada. (905-677-4545)

 


MARKET INDICATORS

 

Housing starts in the U.S. fell 2.6% in June, a result of rising mortgage rates and a slowdown in the economy, according to the U.S. Commerce Department. Housing starts declined to a seasonally adjusted annual rate of 1.55 million last month, with a big drop in single-family home construction, which fell to a rate of 1.21 million. The level of housing starts in June declined to its lowest point since May 1998. Housing permits were unchanged in June after falling in four consecutive months.

 


OVERHEARD

 

“I think the buy-in was pretty significant. There is a recognition that installed sales is an opportunity and a good way to improve gross margins on building materials sales.” – Dave Morton, marketing manager for Castle Building Centres Group. The group recently offered “All-Install University” to educate members about its new installed sales program.

 


HARDLINES WHO’S WHO:
Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July.

 

HARDLINES INDUSTRY REPORT:
HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is!

FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:
September 14, 2000. An incredible one-day symposium featuring some of North America’s leaders in retail, including Home Depot, McMillan/Doolittle, Gardener’s Supply, J&H Builder’s Warehouse and much more! Expect about 200 retail and vendor executives to attend!

THE WOMEN’S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

September 21: “Fully Alive From 9 to 5!” Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com

For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org

 


Hardlines Classifieds

 

Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * * *

HARDLINES™ the electronic newsletter. www.hardlinesfax.com phone: 416-489-3396; fax: 416-489-6154. E-mail: buzz@hardlinesfax.com

Michael McLarney, Editor & Publisher (extension 1): mike@hardlinesfax.com
Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com
Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2000 by Michael McLarney. Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. Call for information on a site license for your company. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST = $212.75) per year (GST #13987 0398 RT). (Please make cheque payable to McLarneyCom.)

 


 

Jul. 23, 2001


HARDLINES

HARDLINES

 

Canada’s electronic information service for
the home improvement industry

 

July 23, 2001

 

Volume vii, #31

 

Michael McLarney, Editor & Publisher

 

Phone: 416.489.3396

 

Fax: 416.489.6154

 

email: mike@hardlines.ca

* * * * * *

 

IN THIS ISSUE:

 

* Lansing’s John Kitchen: the final days

 

* Rona loses legal battle to low-price independent

 

* TSC plans Ontario expansion

 

* * * * * *

 

The Retail Strategies Symposium is a half-day education
seminar featuring industry overviews from Hardlines 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.

 

September 12, 2001, at the Four Points Sheraton Hotel,
Toronto Airport. Call for details!

 

* * * * * *

 

A NEW STUDY: WOMEN AND DIY

 

GET THE FACTS ABOUT WOMEN STORE AND RENOVATION
PREFERENCES.

 

Where they prefer to shop. What projects they make
the decisions about.

 

THE HARDLINES QUARTERLY REPORT

 

The latest issue includes:

 

– A new AC Nielsen survey of women’s shopping
and DIY habits

 

– Benchmarking standards of hardware and building
centre dealers

 

– Regional breakout of the size of the Canadian retail
home improvement industry

 

– Analysis of the latest housing and building statistics

 

HQR is a quarterly executive summary of the issues
and news driving hardware and home improvement retailing. Each issue is jam-packed
with thought provoking articles, in-depth analysis and exclusive survey results
of industry performance and benchmarks.

 

SUBSCRIBE TODAY! Just $349 per year.

 

Contact: Nancy Wright, Circulation Manager.

 

Phone: 416-489-3396; mailto:nancy@hardlines.ca

 

* * * * * *

 

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.

 

* * * * * *

 

JOHN KITCHEN AND LANSING BUILDALL:

 

AFTER THE REVY SALE

 

On Friday, July 13, when West Fraser Timber was signing
over Revy to Rona Inc., the person who profited most from the deal was nowhere
to be seen. And even though he had been on the phone until 10 p.m. the night
before helping West Fraser and its lawyers work out final details, he didn’t
even know when that deal was to close.

 

Instead, John Kitchen was sitting in his office in
Toronto, pondering his second-last day on the job. This was the company his
dad started four years before John himself was born; the company where he grew
up. The same company he once left — and the one he came back to eventually
take over.

 

And now it was the company whose sale half an hour
earlier had made him a millionaire many times over.

 

Lansing Buildall has been on the scene since 1951,
founded by John’s father, Bill Kitchen. Over that time competitors have
come and gone. Somehow, through it all, John’s dad managed to fend off
pretenders to become one of the largest home improvement retailers in the Toronto
area.

 

Then the big box arrived, and business was never
the same again. That change was for John to face alone: after his dad died,
John Kitchen was at the helm. Now, a day away from leaving it all behind, he
reflected on the business.

 

“We were just fortunate because we happened
to be in the biggest market in the country. We became a fairly large fish in
this big pond,” he says matter-of-factly of the Toronto area his 11-store
chain has prospered in.

 

He attributes a large part of that success to staying
inside the city. “We resisted growing outside Toronto,” he continues.
“We understand the urban market, where we can focus on a segment or niche
enough to sustain us. But in a rural market, where the local dealer is part
of the community, you have to be all things to all people.” That, he adds,
is likely part of Home Depot’s success in some of those secondary markets
— “because they have lots to offer.”

 

Conversely, Lansing’s position in the greater
Toronto area was never threatened by a strong contender. “Beaver was always
in secondary and rural markets, whereas Beaver never made a significant dent
in Toronto. When Beaver left, Lansing picked up very little extra business,”
says Kitchen.

 

“The biggest success I’ve had is being
able to ‘ID’ trends and ride them. Trends such as millwork, French
doors, and now ceramic tiles and hardwood flooring. If you can be at the front
of the wave, you have a real advantage before anyone catches up.”

 

Kitchen says the industry has matured — and
one indication of that is its greater willingness to share information. He again
credits Home Depot. On one hand, it was part of a wave of U.S. retailers who
came up and brought with them an openness and frankness alien to an industry
that had traditionally been driven by family-run companies. But Home Depot also
embodied a common enemy, and independents like Kitchen felt compelled to form
a united front against it. So they started comparing notes more carefully than
ever before.

 

The 1998 merger with Revy was a tangible embodiment
of that common front, one that Kitchen remembers with mixed feelings. “It
was tough giving up control of the family business,” he says, “but
it was a ‘no-brain’ decision because a business has a life cycle,
like people. You must recognize the changes in that life cycle. The downfall
of many family businesses is to hold on to them too long and hide behind the
notion of a legacy.”

 

The sang-froid to treat the company with dispassionate
professionalism also came from John’s dad: “My father taught me to
maintain a certain detachment from the business — it has to be run like
a business — don’t get fooled into thinking that you’re invincible.
My father said, ‘the business can never become bigger than the family’.”
But it sure became pretty big, anyway. When it was sold to Revy Home Centres
three years ago, the Kitchen family netted $25 million — and 15% of Revy.

 

Now that 15% adds up to $33 million. Friday the 13th
was definitely John Kitchen’s lucky day. His plans for the immediate future
likely include more family time than anything, a decision helped along by a
two-year non-compete clause. “It will take me two years to learn how to
play golf,” he jokes.

 

______________________________________________

 

RONA LOSES LEGAL BATTLE AGAINST INDEPENDENT

 

Rona big box operators in Québec have lost
their battle against Matériaux à bas prix (a.k.a. Bargain Building
Supplies), a discount LBM chain with 11 stores. The dealers, representing Rona
L’entrepôt stores, along with Rona Inc., tried to get an injunction
against Matériaux’s advertising tactics, but was rebuffed three
times in Québec provincial court. It continually runs ads comparing its
prices to Rona’s — and showing Matériaux’s to be cheaper.

 

The latest ruling leaves Christian Richer, the head
of Matériaux de bas prix, very pleased. Not only does it allow him to
continue doing comparative pricing in his ads, but it requires Rona to pay all
Matériaux’s costs for the case, which has dragged on for three years.

 

“I want my customers to know that the independent
dealer can sell cheaper than the big box,” says Richer.

 

The 15-year old company has enjoyed 15%-20% sales
increases each year selling discount and used building materials. Today, it
has nine stores in Québec and two in Ontario, both near Ottawa. The company
has almost $20 million in sales, and Richer plans to open one or two more stores
each year, including more in Ontario. “[The Ontario] market is very good
and especially since the competition is so great in Québec, we’re
getting very good sales from Ontario.”

 

______________________________________________

 

TSC LOOKS FOR NEW MARKETS IN SOUTHERN ONTARIO

 

Since taking over TSC Stores Ltd. in September 2000,
Roy Carter has been committed to growing the business — at the rate of
a couple of stores per year over the next five years. He would like to see the
London, ON-based chain of farm and hardware stores expand along the corridor
from the Ontario-Québec border in the east down to Windsor/Sarnia in
the southwest.

 

TSC last opened a store in Belleville two years ago.
But Carter wants to pick up the pace. The next opening will be in Cambridge,
ON in mid-October, in a former Zellers building. Two more openings are slated
for next spring, one in Peterborough and the other in Bowmanville, both east
of Toronto. “Our plan is to fill in a few more stores in Southwestern Ontario,
and then continue to move east,” Carter says.

 

There’s room for the TSC format, which is a
cross between Canadian Tire and a farm co-op, he insists. “We’ve got
requests from people from all over Southern Ontario for our type of store. We
feel it’s a little off from your traditional hardware or farm store.”

 

______________________________________________

 

 

 

COMPANIES IN THE NEWS

 

Taiga Forest Products Ltd. recorded sales for the
first quarter ended June 30, 2001 of $235.5 million compared with $245.5 million
for the same period last year. Earnings for the quarter were $2.7 million, up
significantly from the same period in 2000.

 

Domtar Inc. announced second quarter results with
net sales of $944 million, versus $832 million for the same period last year.
Operating profits reached $88 million, compared with an operating profit of
$120 million for the second quarter of 2000.

 

International Forest Products Ltd. cited a deteriorating
Japanese market as it reported a loss of $658,000 for the second quarter. Sales
revenue declined to $184 million, compared with $206 million in the same quarter
last year. The figures include income from Primex Forest Products Ltd., which
was acquired on May 1.

 

The Government of Canada has called upon the U.S.
Department of Commerce to terminate the anti-dumping case against Canadian softwood
lumber producers, citing fundamental inaccuracies in the U.S. lumber industry’s
petition. Eight organizations, such as the Free Trade Lumber Council and various
provincial lumber manufacturers associations, have joined in support of this
action.

 

For its second quarter, Sears Canada had total revenues
of $1.585 billion, compared with $1.462 billion for the corresponding quarter
last year, an increase of 8.4%. Merchandise sales increased 10.8% in the quarter.
Same-store sales increased 4.4%.

 

Dekor, the upstart home improvement department store
founded by former Home Depot execs, will expand its appliance lines this Fall.
The chain will add six additional brands and remodel part of its stores as part
of its new strategy to increase profits.

 

Maytag Co.’s sales in the second quarter of this
year were US$1.069 billion, down 3% from US$1.104 billion in the second quarter
of 2000. Sluggish industry-wide sales prevailed in all the business sectors
where Maytag competes. Despite lower industry sales of major appliances, Maytag
had strong sales of washers, dryers and dishwashers, which led to an overall
increase in sales of major appliances from the prior year.

 

Black & Decker posted second-quarter revenues
of US$1.07 billion, a 5% decrease from US$1.13 billion last year, citing weak
consumer demand in the United States and Europe. The company said it expects
third-quarter sales will be flat to slightly up.

 

Stanley Works announced net sales fell 4% to US$676.5
million. Lower unit sales volume and prices as well as the weakness of foreign
currencies against the dollar weighed on sales.

 

A suspect was arrested in conjunction with two mail
bombings at two Atlanta facilities of Home Depot’s air conditioning and
plumbing supply subsidiary, Apex Supply Co. Thousands of workers at the two
Apex sites were evacuated when package bombs exploded; two people had minor
injuries in one of the bombings. Also last week, Home Depot’s corporate headquarters
in Atlanta was evacuated when a vibrating package was discovered. The parcel
turned out to be a box of vibrating pagers. Last weekend, three people were
killed in a shooting at a Home Depot store in Morrow, GA.

 

______________________________________________

 

CANADIAN STOCK WATCH

 

 

 

COMPANY 52-WK HIGH 52-WK LOW CLOSE (FRI)
Canadian Tire 25.20 15.05 25.99
Canfor 16.95 7.65 9.90
Emco 7.50 2.60 6.25
Goodfellow 11.00 8.00 9.25
Home Depot 49.74 47.61 47.24
Hudson’s Bay 17.65 12.40 16.32
Lowe’s 64.90 34.25 72.55
Sears Canada 37.25 18.55 21.80
Taiga Forest 10.00 6.80 9.10
West Fraser 36.50 21.00 34.50

______________________________________________

 

“Superman never made any money for saving the
world from Solomon Grundy,

 

Sometimes I despair the world will never see another
man like him.”

 

Brad Roberts — (the Canadian band Crash Test
Dummies, “Superman’s Song”)

 

______________________________________________

 

MARKET INDICATORS

 

Principal residences accounted for 38% of family
assets compared with 29% for all financial assets combined, according to a Statistics
Canada survey released recently. As of 1999, principal residences were valued
at over $1.1 trillion, the largest asset class held by families. (For a full
report on “Homes, Canadians’ biggest asset, biggest debt,” read
2Q issue of Hardlines Quarterly Report.)

 

The rate of increase for the prices of goods and
services included in the Consumer Price Index basket slowed to 3.3% in June
compared with June 2000. This 12-month percentage change is down from 3.9% in
May and 3.6% in April. The CPI rose 0.1% from May to June, the fifth consecutive
month-to-month increase. Electricity prices rose 2.6%, mainly owing to higher
prices in Ontario.

 

Wholesale sales cracked the $32-billion mark for
the first time last July, culminating a period of rising sales that started
in mid-1998. During the latter half of 2000, wholesale sales weakened and levelled
out. Although there is still some volatility in the industry, wholesale sales
have been rising slowly in 2001. Nine of the 11 wholesale sectors reported increases
in May. Strong wholesale sales were reported in farm machinery, equipment and
supplies (+7.5%); lumber and building materials (+5.7%); and motor vehicles,
parts and accessories (+3.6%).

 

______________________________________________

 

PEOPLE ON THE MOVE

 

David Lépine has joined the management team
of Cameron Ashley Building Products as vice-president — Québec region.
He joins the company with 20 years of management experience in the construction
industry, including three years with Weyerhaeuser Co. and 10 years with St.
Lawrence Cement. (450-641-4760)

 

The Home Depot in Atlanta has named Rebecca W. Bass
as its first vice-president for e-business. Bass, former CEO of Galileo Development
Systems, an Atlanta based Web-software company, was also an executive with LEXIS-NEXIS
and Motorola. (770-433-8211)

 

______________________________________________

OVERHEARD


… “I feel strongly about the fact that
this is a good company and I’d like to make a contribution.”

 

— Jos Wintermans, the new president and CEO
of Sodisco-Howden Group, who took over last week from Tony Molluso.

 

* * * * * *

 

BIG NAMES, NETWORKING, AT NEXT

 

HARDLINES MARKETING 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
bev@hardlines.ca
for more info, or call me direct: 416-489-3396. — Michael

 

(Some sponsorships still available for the event
— call me for details.)

 

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

 

To get our special hotel rate for the Hardlines Marketing
Conference at the Four Points Sheraton, call 1-800-737-3211.

 

______________________________________________

 

* * * * 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?

* * * * * *

 

AWARD WINNING COMPANY: Canadian-In store Merchandising

 

Canadian-In store Merchandising is pleased to announce
it has received “Outstanding Merchandising Award for Toro Lawn and Garden Products”
in

 

North America from The Toro Company. Canadian In-store
is proud of the work it has done on Toro’s behalf to develop relationships
and merchandise Toro products to help drive sales in the Canadian market. These
efforts helped us to increase Toro’s sales and market share with its own
customers.

 

* * * * * *

 

SALES PROFESSIONALS:

 

CanWel, one of Canada’s leading distributors
of building materials to the retail and industrial markets, is focusing on growth
strategies. We are looking for motivated individuals to help us grow. To meet
these challenges, you will need strong communication, interpersonal and negotiation
skills coupled with a proven track-record. A familiarity with the building materials
industry would be beneficial.

 

SALES MANAGERS:

 

Reporting to the general manager and drawing on your
outstanding motivational skills, you will assume a hands-on leadership role
and oversee a team of inside sales representatives while ensuring profitable
growth in the Ontario region.

 

Your motivational and mentoring abilities have been
proven excellent, and you have at least 5 years’ sales/supervisory experience.
A sales-driven team builder will thrive in this role. You will be based in Brampton,
Ontario.

 

We are also looking for Account Managers and Inside
Sales Representatives. Please refer to our website for details.

 

In return for your contribution, a competitive salary/benefits
package is offered. Please forward your resume, by August 3, 2001 to: Human
Resources, CanWel Distribution Ltd., 15 West Drive, Brampton, Ontario L6T 3T5;
fax 905-457-3668. Website:
http://www.canwel.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.

 

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

 

© 2001 by Michael McLarney.

 

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!

 

______________________________________________

 

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

 

July 23, 2001

 

Volume vii, #31

 

Michael McLarney, Editor & Publisher

 

Phone: 416.489.3396

 

Fax: 416.489.6154

 

email: mike@hardlines.ca

* * * * * *

 

IN THIS ISSUE:

 

* Lansing’s John Kitchen: the final days

 

* Rona loses legal battle to low-price independent

 

* TSC plans Ontario expansion

 

* * * * * *

 

The Retail Strategies Symposium is a half-day education
seminar featuring industry overviews from Hardlines 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.

 

September 12, 2001, at the Four Points Sheraton Hotel,
Toronto Airport. Call for details!

 

* * * * * *

 

A NEW STUDY: WOMEN AND DIY

 

GET THE FACTS ABOUT WOMEN STORE AND RENOVATION
PREFERENCES.

 

Where they prefer to shop. What projects they make
the decisions about.

 

THE HARDLINES QUARTERLY REPORT

 

The latest issue includes:

 

– A new AC Nielsen survey of women’s shopping
and DIY habits

 

– Benchmarking standards of hardware and building
centre dealers

 

– Regional breakout of the size of the Canadian retail
home improvement industry

 

– Analysis of the latest housing and building statistics

 

HQR is a quarterly executive summary of the issues
and news driving hardware and home improvement retailing. Each issue is jam-packed
with thought provoking articles, in-depth analysis and exclusive survey results
of industry performance and benchmarks.

 

SUBSCRIBE TODAY! Just $349 per year.

 

Contact: Nancy Wright, Circulation Manager.

 

Phone: 416-489-3396; mailto:nancy@hardlines.ca

 

* * * * * *

 

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.

 

* * * * * *

 

JOHN KITCHEN AND LANSING BUILDALL:

 

AFTER THE REVY SALE

 

On Friday, July 13, when West Fraser Timber was signing
over Revy to Rona Inc., the person who profited most from the deal was nowhere
to be seen. And even though he had been on the phone until 10 p.m. the night
before helping West Fraser and its lawyers work out final details, he didn’t
even know when that deal was to close.

 

Instead, John Kitchen was sitting in his office in
Toronto, pondering his second-last day on the job. This was the company his
dad started four years before John himself was born; the company where he grew
up. The same company he once left — and the one he came back to eventually
take over.

 

And now it was the company whose sale half an hour
earlier had made him a millionaire many times over.

 

Lansing Buildall has been on the scene since 1951,
founded by John’s father, Bill Kitchen. Over that time competitors have
come and gone. Somehow, through it all, John’s dad managed to fend off
pretenders to become one of the largest home improvement retailers in the Toronto
area.

 

Then the big box arrived, and business was never
the same again. That change was for John to face alone: after his dad died,
John Kitchen was at the helm. Now, a day away from leaving it all behind, he
reflected on the business.

 

“We were just fortunate because we happened
to be in the biggest market in the country. We became a fairly large fish in
this big pond,” he says matter-of-factly of the Toronto area his 11-store
chain has prospered in.

 

He attributes a large part of that success to staying
inside the city. “We resisted growing outside Toronto,” he continues.
“We understand the urban market, where we can focus on a segment or niche
enough to sustain us. But in a rural market, where the local dealer is part
of the community, you have to be all things to all people.” That, he adds,
is likely part of Home Depot’s success in some of those secondary markets
— “because they have lots to offer.”

 

Conversely, Lansing’s position in the greater
Toronto area was never threatened by a strong contender. “Beaver was always
in secondary and rural markets, whereas Beaver never made a significant dent
in Toronto. When Beaver left, Lansing picked up very little extra business,”
says Kitchen.

 

“The biggest success I’ve had is being
able to ‘ID’ trends and ride them. Trends such as millwork, French
doors, and now ceramic tiles and hardwood flooring. If you can be at the front
of the wave, you have a real advantage before anyone catches up.”

 

Kitchen says the industry has matured — and
one indication of that is its greater willingness to share information. He again
credits Home Depot. On one hand, it was part of a wave of U.S. retailers who
came up and brought with them an openness and frankness alien to an industry
that had traditionally been driven by family-run companies. But Home Depot also
embodied a common enemy, and independents like Kitchen felt compelled to form
a united front against it. So they started comparing notes more carefully than
ever before.

 

The 1998 merger with Revy was a tangible embodiment
of that common front, one that Kitchen remembers with mixed feelings. “It
was tough giving up control of the family business,” he says, “but
it was a ‘no-brain’ decision because a business has a life cycle,
like people. You must recognize the changes in that life cycle. The downfall
of many family businesses is to hold on to them too long and hide behind the
notion of a legacy.”

 

The sang-froid to treat the company with dispassionate
professionalism also came from John’s dad: “My father taught me to
maintain a certain detachment from the business — it has to be run like
a business — don’t get fooled into thinking that you’re invincible.
My father said, ‘the business can never become bigger than the family’.”
But it sure became pretty big, anyway. When it was sold to Revy Home Centres
three years ago, the Kitchen family netted $25 million — and 15% of Revy.

 

Now that 15% adds up to $33 million. Friday the 13th
was definitely John Kitchen’s lucky day. His plans for the immediate future
likely include more family time than anything, a decision helped along by a
two-year non-compete clause. “It will take me two years to learn how to
play golf,” he jokes.

 

______________________________________________

 

RONA LOSES LEGAL BATTLE AGAINST INDEPENDENT

 

Rona big box operators in Québec have lost
their battle against Matériaux à bas prix (a.k.a. Bargain Building
Supplies), a discount LBM chain with 11 stores. The dealers, representing Rona
L’entrepôt stores, along with Rona Inc., tried to get an injunction
against Matériaux’s advertising tactics, but was rebuffed three
times in Québec provincial court. It continually runs ads comparing its
prices to Rona’s — and showing Matériaux’s to be cheaper.

 

The latest ruling leaves Christian Richer, the head
of Matériaux de bas prix, very pleased. Not only does it allow him to
continue doing comparative pricing in his ads, but it requires Rona to pay all
Matériaux’s costs for the case, which has dragged on for three years.

 

“I want my customers to know that the independent
dealer can sell cheaper than the big box,” says Richer.

 

The 15-year old company has enjoyed 15%-20% sales
increases each year selling discount and used building materials. Today, it
has nine stores in Québec and two in Ontario, both near Ottawa. The company
has almost $20 million in sales, and Richer plans to open one or two more stores
each year, including more in Ontario. “[The Ontario] market is very good
and especially since the competition is so great in Québec, we’re
getting very good sales from Ontario.”

 

______________________________________________

 

TSC LOOKS FOR NEW MARKETS IN SOUTHERN ONTARIO

 

Since taking over TSC Stores Ltd. in September 2000,
Roy Carter has been committed to growing the business — at the rate of
a couple of stores per year over the next five years. He would like to see the
London, ON-based chain of farm and hardware stores expand along the corridor
from the Ontario-Québec border in the east down to Windsor/Sarnia in
the southwest.

 

TSC last opened a store in Belleville two years ago.
But Carter wants to pick up the pace. The next opening will be in Cambridge,
ON in mid-October, in a former Zellers building. Two more openings are slated
for next spring, one in Peterborough and the other in Bowmanville, both east
of Toronto. “Our plan is to fill in a few more stores in Southwestern Ontario,
and then continue to move east,” Carter says.

 

There’s room for the TSC format, which is a
cross between Canadian Tire and a farm co-op, he insists. “We’ve got
requests from people from all over Southern Ontario for our type of store. We
feel it’s a little off from your traditional hardware or farm store.”

 

______________________________________________

 

 

 

COMPANIES IN THE NEWS

 

Taiga Forest Products Ltd. recorded sales for the
first quarter ended June 30, 2001 of $235.5 million compared with $245.5 million
for the same period last year. Earnings for the quarter were $2.7 million, up
significantly from the same period in 2000.

 

Domtar Inc. announced second quarter results with
net sales of $944 million, versus $832 million for the same period last year.
Operating profits reached $88 million, compared with an operating profit of
$120 million for the second quarter of 2000.

 

International Forest Products Ltd. cited a deteriorating
Japanese market as it reported a loss of $658,000 for the second quarter. Sales
revenue declined to $184 million, compared with $206 million in the same quarter
last year. The figures include income from Primex Forest Products Ltd., which
was acquired on May 1.

 

The Government of Canada has called upon the U.S.
Department of Commerce to terminate the anti-dumping case against Canadian softwood
lumber producers, citing fundamental inaccuracies in the U.S. lumber industry’s
petition. Eight organizations, such as the Free Trade Lumber Council and various
provincial lumber manufacturers associations, have joined in support of this
action.

 

For its second quarter, Sears Canada had total revenues
of $1.585 billion, compared with $1.462 billion for the corresponding quarter
last year, an increase of 8.4%. Merchandise sales increased 10.8% in the quarter.
Same-store sales increased 4.4%.

 

Dekor, the upstart home improvement department store
founded by former Home Depot execs, will expand its appliance lines this Fall.
The chain will add six additional brands and remodel part of its stores as part
of its new strategy to increase profits.

 

Maytag Co.’s sales in the second quarter of this
year were US$1.069 billion, down 3% from US$1.104 billion in the second quarter
of 2000. Sluggish industry-wide sales prevailed in all the business sectors
where Maytag competes. Despite lower industry sales of major appliances, Maytag
had strong sales of washers, dryers and dishwashers, which led to an overall
increase in sales of major appliances from the prior year.

 

Black & Decker posted second-quarter revenues
of US$1.07 billion, a 5% decrease from US$1.13 billion last year, citing weak
consumer demand in the United States and Europe. The company said it expects
third-quarter sales will be flat to slightly up.

 

Stanley Works announced net sales fell 4% to US$676.5
million. Lower unit sales volume and prices as well as the weakness of foreign
currencies against the dollar weighed on sales.

 

A suspect was arrested in conjunction with two mail
bombings at two Atlanta facilities of Home Depot’s air conditioning and
plumbing supply subsidiary, Apex Supply Co. Thousands of workers at the two
Apex sites were evacuated when package bombs exploded; two people had minor
injuries in one of the bombings. Also last week, Home Depot’s corporate headquarters
in Atlanta was evacuated when a vibrating package was discovered. The parcel
turned out to be a box of vibrating pagers. Last weekend, three people were
killed in a shooting at a Home Depot store in Morrow, GA.

 

______________________________________________

 

CANADIAN STOCK WATCH

 

 

COMPANY 52-WK HIGH 52-WK LOW CLOSE (FRI)
Canadian Tire 25.20 15.05 25.99
Canfor 16.95 7.65 9.90
Emco 7.50 2.60 6.25
Goodfellow 11.00 8.00 9.25
Home Depot 49.74 47.61 47.24
Hudson’s Bay 17.65 12.40 16.32
Lowe’s 64.90 34.25 72.55
Sears Canada 37.25 18.55 21.80
Taiga Forest 10.00 6.80 9.10
West Fraser 36.50 21.00 34.50

______________________________________________

 

“Superman never made any money for saving the
world from Solomon Grundy,

 

Sometimes I despair the world will never see another
man like him.”

 

Brad Roberts — (the Canadian band Crash Test
Dummies, “Superman’s Song”)

 

______________________________________________

 

MARKET INDICATORS

 

Principal residences accounted for 38% of family
assets compared with 29% for all financial assets combined, according to a Statistics
Canada survey released recently. As of 1999, principal residences were valued
at over $1.1 trillion, the largest asset class held by families. (For a full
report on “Homes, Canadians’ biggest asset, biggest debt,” read
2Q issue of Hardlines Quarterly Report.)

 

The rate of increase for the prices of goods and
services included in the Consumer Price Index basket slowed to 3.3% in June
compared with June 2000. This 12-month percentage change is down from 3.9% in
May and 3.6% in April. The CPI rose 0.1% from May to June, the fifth consecutive
month-to-month increase. Electricity prices rose 2.6%, mainly owing to higher
prices in Ontario.

 

Wholesale sales cracked the $32-billion mark for
the first time last July, culminating a period of rising sales that started
in mid-1998. During the latter half of 2000, wholesale sales weakened and levelled
out. Although there is still some volatility in the industry, wholesale sales
have been rising slowly in 2001. Nine of the 11 wholesale sectors reported increases
in May. Strong wholesale sales were reported in farm machinery, equipment and
supplies (+7.5%); lumber and building materials (+5.7%); and motor vehicles,
parts and accessories (+3.6%).

 

______________________________________________

 

PEOPLE ON THE MOVE

 

David Lépine has joined the management team
of Cameron Ashley Building Products as vice-president — Québec region.
He joins the company with 20 years of management experience in the construction
industry, including three years with Weyerhaeuser Co. and 10 years with St.
Lawrence Cement. (450-641-4760)

 

The Home Depot in Atlanta has named Rebecca W. Bass
as its first vice-president for e-business. Bass, former CEO of Galileo Development
Systems, an Atlanta based Web-software company, was also an executive with LEXIS-NEXIS
and Motorola. (770-433-8211)

 

______________________________________________

OVERHEARD


… “I feel strongly about the fact that
this is a good company and I’d like to make a contribution.”

 

— Jos Wintermans, the new president and CEO
of Sodisco-Howden Group, who took over last week from Tony Molluso.

 

* * * * * *

 

BIG NAMES, NETWORKING, AT NEXT

 

HARDLINES MARKETING 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
bev@hardlines.ca
for more info, or call me direct: 416-489-3396. — Michael

 

(Some sponsorships still available for the event
— call me for details.)

 

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

 

To get our special hotel rate for the Hardlines Marketing
Conference at the Four Points Sheraton, call 1-800-737-3211.

 

______________________________________________

 

* * * * 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?

* * * * * *

 

AWARD WINNING COMPANY: Canadian-In store Merchandising

 

Canadian-In store Merchandising is pleased to announce
it has received “Outstanding Merchandising Award for Toro Lawn and Garden Products”
in

 

North America from The Toro Company. Canadian In-store
is proud of the work it has done on Toro’s behalf to develop relationships
and merchandise Toro products to help drive sales in the Canadian market. These
efforts helped us to increase Toro’s sales and market share with its own
customers.

 

* * * * * *

 

SALES PROFESSIONALS:

 

CanWel, one of Canada’s leading distributors
of building materials to the retail and industrial markets, is focusing on growth
strategies. We are looking for motivated individuals to help us grow. To meet
these challenges, you will need strong communication, interpersonal and negotiation
skills coupled with a proven track-record. A familiarity with the building materials
industry would be beneficial.

 

SALES MANAGERS:

 

Reporting to the general manager and drawing on your
outstanding motivational skills, you will assume a hands-on leadership role
and oversee a team of inside sales representatives while ensuring profitable
growth in the Ontario region.

 

Your motivational and mentoring abilities have been
proven excellent, and you have at least 5 years’ sales/supervisory experience.
A sales-driven team builder will thrive in this role. You will be based in Brampton,
Ontario.

 

We are also looking for Account Managers and Inside
Sales Representatives. Please refer to our website for details.

 

In return for your contribution, a competitive salary/benefits
package is offered. Please forward your resume, by August 3, 2001 to: Human
Resources, CanWel Distribution Ltd., 15 West Drive, Brampton, Ontario L6T 3T5;
fax 905-457-3668. Website:
http://www.canwel.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.

 

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

 

© 2001 by Michael McLarney.

 

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!

 

______________________________________________

 

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.

July17_01

HARDLINES™
Five years serving Canada’s home improvement industry
July 17, 2000 – Volume vi, #28
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail:
buzz@hardlinesfax.com

 


Check out our incredible Classifieds section!


HARDLINES HAS MOVED! Thanks to the tremendous support we’ve received from you, our subscribers, over the past five years, we are very excited to be able to expand into a new location. Please note the new address of the World Headquarters:

 

542 Mount Pleasant Rd., Suite 302
Toronto, Ontario, Canada M4S 2M7
(Phone and fax remain the same)
phone: 416.489.3396 fax: 416.489.6154

* * * * * *
* IN THIS ISSUE: (okay, things are slowing down a bit – hey, it’s summer!)
* Renovations become more important in light of softer housing starts
* Big box wars: parking, parking, parking
* Sodisco-Howden completes purchase of Weber Retail
* * * * * *

COTTAGE FOR RENT: LAKE HURON Available August 19-26 and August 26-September 2, this 3-bedroom lakefront cottage sleeps 5 and has shallow-entry sandy beach ideal for kids, TV, fireplace, canoe. Pets ok. On Howdenvale Beach, near Owen Sound and north of Sauble Beach at the foot of the Bruce Peninsula. $775 for each week. For more information, contact Hardlines at: 416-480-3396, or e-mail: buzz@hardlinesfax.com

* * * * * *

HOUSING STARTS SAG BUT RENOS STAY STRONG

The number of housing starts in June was down slightly from May, but many dealers are not as worried about the drop as they might have been in the past. The reason is that renovations and repairs continue to grow as an important – and profitable – part of the business.

Housing starts fell 1.8% in June to 139,300 units seasonally adjusted, compared with 141,800 in May, indicating many homeowners are happy just to stay put and fix up. The market began to shift seriously to renos and repairs during the wretched housing market of the early ’90s, giving new housing a run for the money and now accounting for as much as 50% of the home improvement industry in Canada.

Despite the slowdown, 2000 is expected to be “as good or better than 1999,” says Dave Morton, marketing manager for Castle Building Centres.

Morton says the ratio of renovation spending to new housing is still behind the U.S., where it exceeds 60%. He blames the GST for encouraging people to fix up instead of moving. “The taxes associated with building or moving to a home are so high that people are going to renovate instead.”

BOXES WILL WAGE WAR IN PARKING LOTS

Never mind price, selection and service: these are just the price of admission to the big box wars. The battle is being waged on new fronts – including the parking lot.

With all other things being more or less equal – given that some companies may do one or two better than the others – two or three big boxes sitting across the street from each other will count on easy access and good parking to attract time-pressed customers. As the director of real estate and property development at one big box said, which store is easiest to get in and out of will have the edge over its neighbour.

That’s why a recent grant to a developer in Moncton, NB, by two levels of government has created such a furor. A total of $625,000, from the municipal and provincial governments will go toward the construction of off ramps and roads that will feed directly into Home Depot’s parking lot from the adjoining highway. The direct access gives the new power centre an edge over a competing power centre on the other side of the highway. That site, which has no direct access from the highway, houses a Kent big box.

The government grant, therefore, amounts to more than just the money. The highway access privileges could become, in fact, a key competitive advantage to the tenants of the new centre, as they vie for the best parking access.

 


COMPANIES IN THE NEWS

 

Réno-Dépôt inc. has formed a major partnership with downhill ski champion Mélanie Turgeon. Besides being a veteran of the Canadian Ski Team, the native of Québec City is a self-described “keen do-it yourselfer.” Her three-year contract includes making store tours and participating in conferences, seminars and workshops on behalf of Réno-Dépôt.

On July 14, Sodisco-Howden Group finalized the acquisition of the hardware related assets and inventory of the Retail Sales Division of Weber Supply Co. in Kitchener, ON. Products formerly purchased from Weber will now be available from Sodisco-Howden. The transaction, which was subject to a due diligence, was paid in cash.

Sales at Ainsworth Lumber Co. for the first six months of the year rose to $233.7 million from $208.4 million in the first half of 1999. Net earnings in the second quarter were $9.5 million, compared with $6.4 million for the same period in 1999, an increase of nearly 50%. The company has taken aim at the growing market in Japan for OSB, and an OSB plant in High Level, AB, is slated to begin production by mid-October.

Lowe’s Cos. has strengthened its alliance with Whirlpool Corp. to include an expanded product line, a Lowe’s exclusive on certain new Whirlpool products, and exclusivity as home centre distributor of a new line of Whirlpool water heaters and air purification products.

Nu-Gro Corp. has renewed and expanded its agreement with ICI Canada Inc. to use ICI’s C-I-L trademarks for home and garden products until 2020, with an option to renew for another 20 years.

Wal-Mart Canada Inc. has been the target of protests for selling clothing made in Myanmar, which is ruled by a “brutal military regime.” However, the company has responded to the criticisms and stopped ordering from the Asian country (formerly Burma) and will make no new orders after the current ones are filled over the next few months.

Premdor Inc. has formed a partnership with Toledo, Ohio-based Owens Corning to expand OC’s acoustic system business to make Premdor’s Safe ‘N Sound doors available prehung as part of OC’s QuietZone Acoustic Door System.

Owens Corning, for the second quarter ending June 30, 2000, had net sales US$1.295 billion, slightly below US$1.310 billion for the same period a year ago. This reflects weaker demand in roofing, siding and insulation businesses, as construction activity slowed due to concerns about interest rates. Net income (excluding a charge reflecting an addition to the asbestos reserve, and the proceeds from an insurance settlement) was US$61 million, compared with US$76 million.


 

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 22.30
Canfor 19.80 10.10 13.40
Goodfellow 12.55 8.75 10.00
Home Depot 70.00 35.75 55 7/16
Hudsons Bay 23.85 12.50 16.30
Lowe’s Cos. 67.25 40.40 47 7/8
Sears Canada 42.50 29.00 35.50
Taiga Forest 14.75 8.05 8.80
West Fraser 41.00 28.00 29.60

 

 

“Once a word has been allowed to escape, it cannot be recalled.” – Horace (65 – 8 B.C.)


PEOPLE ON THE MOVE

 

Heather Janisse has been promoted to the role of president of Canadian In-Store Merchandising. Formerly eastern regional manager, she replaces David Mosley, who has left the company. (416-249-9779)

Richard Friesen has resigned from his position as president of Cameron Ashley Canada, effective June 30, 2000. Bruce Allen, formerly vice-president of operations, takes over from Friesen as business unit leader for Canada. (905-677-4545)

Lowe’s Cos. Inc. has appointed Thomas Whiddon to the newly created position of executive vice-president, logistics and technology. He was previously executive vice-president and CFO. Whidden will oversee distribution and inventory replenishment functions, management information services and the Internet business group … Robert A. Niblock has been promoted to the position of senior vice-president and CFO. He was formerly senior vice-president of finance.

 


MARKET INDICATORS

 

The annual rate of housing starts in Canada fell 1.8% in June to 139,300 units seasonally adjusted, compared with 141,800 in May, according to CMHC. Urban single starts were up 2.3% to 72,600 units, compared with 71,000 in May. Urban multiples starts were down 8.6% to 43,400 units, compared with 47,500 in May.

 


HARDLINES WHO’S WHO:
Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July.

 

HARDLINES INDUSTRY REPORT:
HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is!

FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:
September 14, 2000. An incredible one-day symposium featuring some of North America’s leaders in retail, including Home Depot, McMillan/Doolittle, Gardener’s Supply, J&H Builder’s Warehouse and much more! Expect about 200 retail and vendor executives to attend!

THE WOMEN’S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

September 21: “Fully Alive From 9 to 5!” Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com

For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org

 


Hardlines Classifieds

 

Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * * *

HARDLINES™ the electronic newsletter. www.hardlinesfax.com phone: 416-489-3396; fax: 416-489-6154. E-mail: buzz@hardlinesfax.com

Michael McLarney, Editor & Publisher (extension 1): mike@hardlinesfax.com
Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com
Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2000 by Michael McLarney. Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. Call for information on a site license for your company. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST = $212.75) per year (GST #13987 0398 RT). (Please make cheque payable to McLarneyCom.)

 


 

HARDLINES™
Five years serving Canada’s home improvement industry
July 17, 2000 – Volume vi, #28
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail:
buzz@hardlinesfax.com

 


Check out our incredible Classifieds section!


HARDLINES HAS MOVED! Thanks to the tremendous support we’ve received from you, our subscribers, over the past five years, we are very excited to be able to expand into a new location. Please note the new address of the World Headquarters:

 

542 Mount Pleasant Rd., Suite 302
Toronto, Ontario, Canada M4S 2M7
(Phone and fax remain the same)
phone: 416.489.3396 fax: 416.489.6154

* * * * * *
* IN THIS ISSUE: (okay, things are slowing down a bit – hey, it’s summer!)
* Renovations become more important in light of softer housing starts
* Big box wars: parking, parking, parking
* Sodisco-Howden completes purchase of Weber Retail
* * * * * *

COTTAGE FOR RENT: LAKE HURON Available August 19-26 and August 26-September 2, this 3-bedroom lakefront cottage sleeps 5 and has shallow-entry sandy beach ideal for kids, TV, fireplace, canoe. Pets ok. On Howdenvale Beach, near Owen Sound and north of Sauble Beach at the foot of the Bruce Peninsula. $775 for each week. For more information, contact Hardlines at: 416-480-3396, or e-mail: buzz@hardlinesfax.com

* * * * * *

HOUSING STARTS SAG BUT RENOS STAY STRONG

The number of housing starts in June was down slightly from May, but many dealers are not as worried about the drop as they might have been in the past. The reason is that renovations and repairs continue to grow as an important – and profitable – part of the business.

Housing starts fell 1.8% in June to 139,300 units seasonally adjusted, compared with 141,800 in May, indicating many homeowners are happy just to stay put and fix up. The market began to shift seriously to renos and repairs during the wretched housing market of the early ’90s, giving new housing a run for the money and now accounting for as much as 50% of the home improvement industry in Canada.

Despite the slowdown, 2000 is expected to be “as good or better than 1999,” says Dave Morton, marketing manager for Castle Building Centres.

Morton says the ratio of renovation spending to new housing is still behind the U.S., where it exceeds 60%. He blames the GST for encouraging people to fix up instead of moving. “The taxes associated with building or moving to a home are so high that people are going to renovate instead.”

BOXES WILL WAGE WAR IN PARKING LOTS

Never mind price, selection and service: these are just the price of admission to the big box wars. The battle is being waged on new fronts – including the parking lot.

With all other things being more or less equal – given that some companies may do one or two better than the others – two or three big boxes sitting across the street from each other will count on easy access and good parking to attract time-pressed customers. As the director of real estate and property development at one big box said, which store is easiest to get in and out of will have the edge over its neighbour.

That’s why a recent grant to a developer in Moncton, NB, by two levels of government has created such a furor. A total of $625,000, from the municipal and provincial governments will go toward the construction of off ramps and roads that will feed directly into Home Depot’s parking lot from the adjoining highway. The direct access gives the new power centre an edge over a competing power centre on the other side of the highway. That site, which has no direct access from the highway, houses a Kent big box.

The government grant, therefore, amounts to more than just the money. The highway access privileges could become, in fact, a key competitive advantage to the tenants of the new centre, as they vie for the best parking access.

 


COMPANIES IN THE NEWS

 

Réno-Dépôt inc. has formed a major partnership with downhill ski champion Mélanie Turgeon. Besides being a veteran of the Canadian Ski Team, the native of Québec City is a self-described “keen do-it yourselfer.” Her three-year contract includes making store tours and participating in conferences, seminars and workshops on behalf of Réno-Dépôt.

On July 14, Sodisco-Howden Group finalized the acquisition of the hardware related assets and inventory of the Retail Sales Division of Weber Supply Co. in Kitchener, ON. Products formerly purchased from Weber will now be available from Sodisco-Howden. The transaction, which was subject to a due diligence, was paid in cash.

Sales at Ainsworth Lumber Co. for the first six months of the year rose to $233.7 million from $208.4 million in the first half of 1999. Net earnings in the second quarter were $9.5 million, compared with $6.4 million for the same period in 1999, an increase of nearly 50%. The company has taken aim at the growing market in Japan for OSB, and an OSB plant in High Level, AB, is slated to begin production by mid-October.

Lowe’s Cos. has strengthened its alliance with Whirlpool Corp. to include an expanded product line, a Lowe’s exclusive on certain new Whirlpool products, and exclusivity as home centre distributor of a new line of Whirlpool water heaters and air purification products.

Nu-Gro Corp. has renewed and expanded its agreement with ICI Canada Inc. to use ICI’s C-I-L trademarks for home and garden products until 2020, with an option to renew for another 20 years.

Wal-Mart Canada Inc. has been the target of protests for selling clothing made in Myanmar, which is ruled by a “brutal military regime.” However, the company has responded to the criticisms and stopped ordering from the Asian country (formerly Burma) and will make no new orders after the current ones are filled over the next few months.

Premdor Inc. has formed a partnership with Toledo, Ohio-based Owens Corning to expand OC’s acoustic system business to make Premdor’s Safe ‘N Sound doors available prehung as part of OC’s QuietZone Acoustic Door System.

Owens Corning, for the second quarter ending June 30, 2000, had net sales US$1.295 billion, slightly below US$1.310 billion for the same period a year ago. This reflects weaker demand in roofing, siding and insulation businesses, as construction activity slowed due to concerns about interest rates. Net income (excluding a charge reflecting an addition to the asbestos reserve, and the proceeds from an insurance settlement) was US$61 million, compared with US$76 million.


 

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 22.30
Canfor 19.80 10.10 13.40
Goodfellow 12.55 8.75 10.00
Home Depot 70.00 35.75 55 7/16
Hudsons Bay 23.85 12.50 16.30
Lowe’s Cos. 67.25 40.40 47 7/8
Sears Canada 42.50 29.00 35.50
Taiga Forest 14.75 8.05 8.80
West Fraser 41.00 28.00 29.60

 

 

“Once a word has been allowed to escape, it cannot be recalled.” – Horace (65 – 8 B.C.)


PEOPLE ON THE MOVE

 

Heather Janisse has been promoted to the role of president of Canadian In-Store Merchandising. Formerly eastern regional manager, she replaces David Mosley, who has left the company. (416-249-9779)

Richard Friesen has resigned from his position as president of Cameron Ashley Canada, effective June 30, 2000. Bruce Allen, formerly vice-president of operations, takes over from Friesen as business unit leader for Canada. (905-677-4545)

Lowe’s Cos. Inc. has appointed Thomas Whiddon to the newly created position of executive vice-president, logistics and technology. He was previously executive vice-president and CFO. Whidden will oversee distribution and inventory replenishment functions, management information services and the Internet business group … Robert A. Niblock has been promoted to the position of senior vice-president and CFO. He was formerly senior vice-president of finance.

 


MARKET INDICATORS

 

The annual rate of housing starts in Canada fell 1.8% in June to 139,300 units seasonally adjusted, compared with 141,800 in May, according to CMHC. Urban single starts were up 2.3% to 72,600 units, compared with 71,000 in May. Urban multiples starts were down 8.6% to 43,400 units, compared with 47,500 in May.

 


HARDLINES WHO’S WHO:
Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July.

 

HARDLINES INDUSTRY REPORT:
HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is!

FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:
September 14, 2000. An incredible one-day symposium featuring some of North America’s leaders in retail, including Home Depot, McMillan/Doolittle, Gardener’s Supply, J&H Builder’s Warehouse and much more! Expect about 200 retail and vendor executives to attend!

THE WOMEN’S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

September 21: “Fully Alive From 9 to 5!” Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com

For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org

 


Hardlines Classifieds

 

Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * * *

HARDLINES™ the electronic newsletter. www.hardlinesfax.com phone: 416-489-3396; fax: 416-489-6154. E-mail: buzz@hardlinesfax.com

Michael McLarney, Editor & Publisher (extension 1): mike@hardlinesfax.com
Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com
Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2000 by Michael McLarney. Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. Call for information on a site license for your company. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST = $212.75) per year (GST #13987 0398 RT). (Please make cheque payable to McLarneyCom.)

 


 

Jul. 16, 2001


HARDLINES

HARDLINES(tm)

 

Canada’s electronic information service for the
home

 

improvement industry

 

July 16, 2001

 

Volume vii, #29

 

Michael McLarney, Editor & Publisher

 

Phone: 416.489.3396

 

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

 

* * * * * *

 

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.

 

* * * * * *

 

IN THIS ISSUE:

 

* Rona closes Revy deal, eyes further deals

 

* CHS adds décor support from wall coverings
association

 

* Ace Canada cracks Québec market

 

* Cameron Ashley enjoys boom month

 

* Housing starts up dramatically in June

 

* * * * * *

 

THE RETAIL STRATEGIES SYMPOSIUM:

 

A half-day education seminar that will feature industry

 

overviews from authorities 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.

 

September 12, 2001, at the Four Points Sheraton
Hotel,

 

Toronto Airport. Group rates available – For details,
call

 

Beverly Allen, 416-489-3396.

 

* * * * * *

 

RONA CLOSES REVY DEAL, COMMITS TO CONTINUED GROWTH

 

Final approval of the purchase of Revelstoke Home
Centres

 

was sealed by Rona’s board of directors last Wednesday,

 

leaving the way clear for the deal to be finalized
the very

 

next day. The resulting company represents 539 stores,

 

including 46 big boxes, with total retail sales
of about

 

$2.9 billion.

 

Rona paid $220 million to Revy’s parent, West Fraser
Timber,

 

for all Revy’s fixed assets and working capital
as well as

 

some optioned land in Ontario and Alberta. Most
other real

 

estate will be leased back from West Fraser. The
deal

 

includes the 15% ownership in Revy held by the Kitchen

 

family. The Kitchens sold its own chain, Lansing
Buildall,

 

to Revy back in 1998.

 

“Our intention is to continue to grow in Canada
and continue

 

to be the acquirer, not the acquired,” says Sylvain

 

Morissette, communications director for Rona Inc.
He

 

reaffirmed Rona’s previously stated intention to
own 20% of

 

the Canadian market within the next four years.

 

That expansion will not include five Revelstoke
stores and

 

one Revy: the surprise decision to pass on Revy’s
big box at

 

Toronto’s Stockyards location has not been rescinded,
as the

 

location and sales growth potential are not deemed
adequate.

 

Integration of the companies will be facilitated
by

 

transition committees from buying, IT, operations
and other

 

aspects of the business. Each committee includes

 

representatives from Rona, Revy, Lansing and Cashway,
which

 

was acquired by Rona early in 2000. However, says

 

Morissette, Revy will continue to be run out of
Surrey, BC

 

and Lansing from its own offices in Toronto, with
the buying

 

teams there intact, at least for the time being.

 

_______________________________________________

 

DEALER INNOVATION DRIVES CABP SALES

 

May 2001 was the best month ever for Cameron Ashley
Building

 

Products, thanks in large part to increased market
share,

 

says CABP president Bruce Allen. The company lost

 

distribution of Owens Corning fibreglass following
the

 

takeover of CABP by Guardian Building Products,
which also

 

owns Guardian Insulation. Nonetheless, says Allen,
the

 

market has been responsive to the new line, manufactured

 

under the Cameron Ashley name.

 

And while insulation sales are not at the level
of the old

 

brand, sales of its other building products have
increased

 

dramatically. “We’re way ahead of budget,” Allen
says.

 

Success at the wholesale level relies on strong
dealer sales

 

and many of CABP’s customers are effectively evolving
their

 

businesses, he notes. “I think the dealers that
are doing

 

well are heavy into installed – and they’re leveraging
their

 

lumber sales into other products, as well.”

 

_______________________________________________

 

HARDWARE SHOW GAINS NEW PARTNER, EXPANDED DECOR

 

The Walls Windows Furnishings Association is the
latest

 

organization to join forces with the Canadian Retail

 

Hardware Association in presenting the Canadian
Hardware &

 

Building Materials Show. Together with the Paint
and

 

Decorating Retailer Association, which came aboard
for last

 

year’s show, WWFA will expand the residential décor
section

 

of CHS. For 2002, the PDRA and WWFA will jointly
host the

 

Décor Showcase within CHS.

 

When PDRA joined forces with CRHA last year, it
was at the

 

expense of its own decorating show, which it had
held in

 

conjunction with WWFA. At that time, WWFA chose
to hold its

 

own, smaller show. That show has since been discontinued.

 

The addition of WWFA exhibits, combined with the
established

 

support from the PDRA, will provide show attendees
with a

 

broader assortment of decorating products within
the home

 

improvement show environment.

 

The WWFA is a Canadian not-for-profit trade association

 

dedicated to the wall and window coverings and decorative

 

accessory industry. Its membership includes suppliers,

 

retailers, interior designers and decorators, whose
products

 

range from carpets and rugs, decorative accessories
and

 

finishes to fabrics and furnishings, and floor,
wall and

 

window coverings.

 

CHS 2002 runs February 3rd to 5th at The National
Trade

 

Centre, Exhibition Place, Toronto. Show hours are
Sunday and

 

Monday: 10:00 a.m. to 5:00 p.m.; Tuesday: 10:00
a.m. to 4:00

 

p.m. (Note: New show hours for 2002). Registration
is free

 

in advance, $25 at the door. To register visit www.crha.com

 

or call 1-800-268-3965. Open to industry trade only.

 

_______________________________________________

 

 

 

COMPANIES IN THE NEWS

 

Canadian In-Store Merchandising has a new address:
1860 Gage

 

Court, Mississauga, Ontario L5S 1S1; phone: 905-677-8004,

 

fax: 905-677-9828.

 

Do it Best Corp. has signed an agreement with Thailand-based

 

Siam Cement Group to expand its presence in Southeast
Asia.

 

Under the same agreement, Do it Best will help Siam
Cement

 

subsidiary Cementhai Distribution to diversify its
product

 

offerings to include hardware and home centre merchandise.

 

Siam Cement Group is the largest industrial conglomerate
in

 

Thailand, with annual revenues of more than US$3
billion.

 

Newell Rubbermaid has warned that it expects second-quarter

 

earnings to miss expectations due to the continued
economic

 

slowdown in the U.S. and Europe. It now anticipates

 

reporting earnings per share of 29 cents for the
quarter

 

ending in June, compared with previous expectations
of 37 to

 

42 cents.

 

Owens Corning has selected IPNet Solutions Inc.
to handle

 

communications with its trading partner network.
IPNet’s

 

routing technology will support the transmission
and

 

management of electronic business transactions,
including

 

the exchange of invoices, schedules and other electronic

 

documents between Owens Corning and its trading
partners.

 

After citing strong sales of energy-related products,
Home

 

Depot Inc., Lowe’s Cos. and Sears, Roebuck and Co.
are

 

increasing their marketing of energy-efficient products.

 

Home Depot will mark conservation products with
a special

 

logo and launch a consumer education campaign next
week.

 

Lowe’s plans to release a circular and online campaign

 

devoted to its energy-efficient appliances. Sears
is touting

 

specific items in its Kenmore line through broadcast
ads and

 

in-store displays.

 

Wal-Mart Stores Inc. reported net sales for the
five-week

 

period ending July 6, 2001 of US$20.5 billion, an
increase

 

of 14.6% over the US$17.9 billion in the similar
period in

 

the prior year. Sales for the twenty-two week period
were

 

US$86.8 billion, an increase of 12.9% over the $76.9
billion

 

in the similar period in the prior year. The company
has 176

 

stores in Canada.

 

_______________________________________________

 

CANADIAN STOCK WATCH

 

COMPANY 52-WK HIGH 52-WK LOW CLOSE (FRI)
Canadian Tire 25.20 15.05 25.25
Canfor 16.95 7.65 10.10
Emco 7.50 2.60 6.75
Goodfellow 11.00 8.00 9.00
Home Depot 49.74 47.61 48.91
Hudson’s Bay 17.65 12.40 18.40
Lowe’s 64.90 34.25 36.22
Sears Canada 37.25 18.55 21.50
Taiga Forest 10.00 6.80 9.00
West Fraser 36.50 21.00 33.55

 

 

_______________________________________________

 

“I will do anything to lose weight – except diet
and

 

exercise!”

 

– Janeane Garofalo (American comedian who performed
at the

 

Hummingbird Centre in Toronto last week)

 

_______________________________________________

 

MARKET INDICATORS

 

Housing starts in Canada increased by 13.7% from
May to

 

June, says CMHC. The seasonally adjusted annualized
rate

 

rose to 176,200 units in June from 155,000 in May.
Multiple

 

starts rose 24.6% to 78,000 from 62,600 in May,
while

 

singles rose 8.3% to 76,000, up from 70,200.

 

The New Housing Price Index rose 0.2% from April
to May,

 

says Statistics Canada. However, compared to the
same period

 

last year, this index of contractors’ selling prices

 

increased 2.6%. Notable monthly advances were seen
in

 

Ottawa-Hull (+0.7%), St. Catharines-Niagara (+0.6%)
and

 

Montréal (+0.5%). Vancouver was up 0.2%,
Edmonton increased

 

0.3%, while the Prairies remained flat month to
month.

 

U.S. chain store sales rose 0.6% during the week
ended July

 

7, after climbing 0.3% the previous week. The sales
index

 

rose to 400.7 from 398.4 a week earlier. On a year-over-year

 

basis the index rose for a fifth consecutive week,
by 2.2%.

 

_______________________________________________

 

PEOPLE ON THE MOVE

 

Geoffrey Fleming has joined Homecare Building Centres
as

 

marketing communications supervisor. He was previously
at

 

Lansing Buildall, where he served for 12 years as
marketing

 

communications manager. He replaces Irene Hopmans.

 

(905-671-2424)

 

MAAX Inc. has appointed Pat Hénaire as corporate

 

vice-president, marketing. He will be involved in
marketing

 

planning and North American initiatives, and will
assume the

 

marketing direction of all business units within
MAAX. He

 

was previously senior vice-president of sales &
business

 

development at Venmar and Broan-NuTone Canada Inc.

 

(418-387-4155)

 

_______________________________________________

 

OVERHEARD …

 

… “It’s really up and down. It sounds better out
there,

 

but I haven’t seen it kick in hard yet.” – Dave
Johnson,

 

manager, Arrow Building Products in Castlegar, BC
on

 

anticipated improvements in the business conditions

 

following the ousting of the NDP party in the latest

 

provincial election in British Columbia.

 

_______________________________________________

 

BIG NAMES, NETWORKING, AT NEXT

 

HARDLINES MARKETING 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 bev@hardlines.ca
for more info, or call me

 

direct: 416-489-3396. – Michael

 

(Some sponsorships still available for the event
– call me

 

for details.)

 

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

 

To get our special hotel rate for the Hardlines
Marketing

 

Conference at the Four Points Sheraton, call 1-800-737-3211.

 

_______________________________________________

 

* * * * 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

 

* * * * * *

 

BUSINESS DEVELOPMENT ASSOCIATE:

 

The Canadian Retail Hardware Association, producer
of the

 

Toronto-based Canadian Hardware and Building Materials
Show,

 

seeks to add a Sales overachiever to the Association’s
team.

 

Reporting to the Show Manager, you will analyze,
develop and

 

implement sales strategies aimed at securing new
Exhibitors.

 

This will involve both in-office duties and face
to face

 

Customer presentations with senior industry decision-makers.

 

Travelling to regional shows and to the Chicago
NHS show

 

will augment idea development and lead generation.
You’ll

 

also act as a team member at the CHS, ensuring Exhibitor

 

satisfaction.

 

Your background includes a home improvement industry
sales

 

role where your team-based activities have gained
you

 

success and respect from your colleagues. Developing
and

 

securing new business and the resultant benefits
attached to

 

over-achievement are your personal motivators.

 

Bilingualism would also be a definite asset.

 

Please contact, in confidence, Wolf Gugler, quoting
file

 

#02-103. Wolf Gugler & Associates Limited, 1370
Don Mills

 

Road, Suite 300, Don Mills, Ontario M3B 3N7. Phone:
(416)

 

386-1719; fax: (416) 386-1721; email: admin@wolfgugler.com

 

* * * * * *

 

AWARD WINNING COMPANY: Canadian-In store
Merchandising

 

Canadian In-Store Merchandising is pleased to announce
it

 

has received the

 

“Outstanding Merchandising Award” for Toro Lawn
and Garden

 

Products in North

 

America. The award was presented by the Toro Company.

 

Says Peter Huber, National Account Manager, Toro:
“Canadian

 

In-store has excelled over the past year on Toro’s
behalf,

 

helping develop relationships and increased merchandising

 

for Toro products. These efforts have helped us
increase

 

Toro’s sales and market share with its own customers.”

 

_______________________________________________

 

THE HARDLINES MARKETPLACE: just $16 per line.

 

A classified ad with Hardlines is the most direct
way to

 

industry eyes.

 

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

 

our email and fax publications … and have you
seen our

 

Marketplace in our new website?

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


Publish your ad where it matters. Get industry exposure

 

today.

 

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

 

_______________________________________________

 

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

 

(c) 2001 by Michael McLarney.

 

HARDLINES(tm) the electronic newsletter hardlines.ca

 

Phone: 416.489.3396; Fax: 416.489.6154

 

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

 

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

 

Beverly Allen, Marketing Manager: bev@hardlines.ca

 

Nancy Wright, Circulation Manager: nancy@hardlines.ca

 

_______________________________________________

 

THE HARDLINES “FAIR PLAY” POLICY:

 

Reproduction in whole or in part is very uncool
and strictly

 

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

 

play fair! Call for information on multiple subscriptions
or

 

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

 

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

 

your internal routing from this end!

 

_______________________________________________

 

Subscription: $199+$13.93 GST = $212.93 (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(tm)

 

Canada’s electronic information service for the
home

 

improvement industry

 

July 16, 2001

 

Volume vii, #29

 

Michael McLarney, Editor & Publisher

 

Phone: 416.489.3396

 

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

hardlines.ca

 

* * * * * *

 

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.

 

* * * * * *

 

IN THIS ISSUE:

 

* Rona closes Revy deal, eyes further deals

 

* CHS adds décor support from wall coverings
association

 

* Ace Canada cracks Québec market

 

* Cameron Ashley enjoys boom month

 

* Housing starts up dramatically in June

 

* * * * * *

 

THE RETAIL STRATEGIES SYMPOSIUM:

 

A half-day education seminar that will feature industry

 

overviews from authorities 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.

 

September 12, 2001, at the Four Points Sheraton
Hotel,

 

Toronto Airport. Group rates available – For details,
call

 

Beverly Allen, 416-489-3396.

 

* * * * * *

 

RONA CLOSES REVY DEAL, COMMITS TO CONTINUED GROWTH

 

Final approval of the purchase of Revelstoke Home
Centres

 

was sealed by Rona’s board of directors last Wednesday,

 

leaving the way clear for the deal to be finalized
the very

 

next day. The resulting company represents 539 stores,

 

including 46 big boxes, with total retail sales
of about

 

$2.9 billion.

 

Rona paid $220 million to Revy’s parent, West Fraser
Timber,

 

for all Revy’s fixed assets and working capital
as well as

 

some optioned land in Ontario and Alberta. Most
other real

 

estate will be leased back from West Fraser. The
deal

 

includes the 15% ownership in Revy held by the Kitchen

 

family. The Kitchens sold its own chain, Lansing
Buildall,

 

to Revy back in 1998.

 

“Our intention is to continue to grow in Canada
and continue

 

to be the acquirer, not the acquired,” says Sylvain

 

Morissette, communications director for Rona Inc.
He

 

reaffirmed Rona’s previously stated intention to
own 20% of

 

the Canadian market within the next four years.

 

That expansion will not include five Revelstoke
stores and

 

one Revy: the surprise decision to pass on Revy’s
big box at

 

Toronto’s Stockyards location has not been rescinded,
as the

 

location and sales growth potential are not deemed
adequate.

 

Integration of the companies will be facilitated
by

 

transition committees from buying, IT, operations
and other

 

aspects of the business. Each committee includes

 

representatives from Rona, Revy, Lansing and Cashway,
which

 

was acquired by Rona early in 2000. However, says

 

Morissette, Revy will continue to be run out of
Surrey, BC

 

and Lansing from its own offices in Toronto, with
the buying

 

teams there intact, at least for the time being.

 

_______________________________________________

 

DEALER INNOVATION DRIVES CABP SALES

 

May 2001 was the best month ever for Cameron Ashley
Building

 

Products, thanks in large part to increased market
share,

 

says CABP president Bruce Allen. The company lost

 

distribution of Owens Corning fibreglass following
the

 

takeover of CABP by Guardian Building Products,
which also

 

owns Guardian Insulation. Nonetheless, says Allen,
the

 

market has been responsive to the new line, manufactured

 

under the Cameron Ashley name.

 

And while insulation sales are not at the level
of the old

 

brand, sales of its other building products have
increased

 

dramatically. “We’re way ahead of budget,” Allen
says.

 

Success at the wholesale level relies on strong
dealer sales

 

and many of CABP’s customers are effectively evolving
their

 

businesses, he notes. “I think the dealers that
are doing

 

well are heavy into installed – and they’re leveraging
their

 

lumber sales into other products, as well.”

 

_______________________________________________

 

HARDWARE SHOW GAINS NEW PARTNER, EXPANDED DECOR

 

The Walls Windows Furnishings Association is the
latest

 

organization to join forces with the Canadian Retail

 

Hardware Association in presenting the Canadian
Hardware &

 

Building Materials Show. Together with the Paint
and

 

Decorating Retailer Association, which came aboard
for last

 

year’s show, WWFA will expand the residential décor
section

 

of CHS. For 2002, the PDRA and WWFA will jointly
host the

 

Décor Showcase within CHS.

 

When PDRA joined forces with CRHA last year, it
was at the

 

expense of its own decorating show, which it had
held in

 

conjunction with WWFA. At that time, WWFA chose
to hold its

 

own, smaller show. That show has since been discontinued.

 

The addition of WWFA exhibits, combined with the
established

 

support from the PDRA, will provide show attendees
with a

 

broader assortment of decorating products within
the home

 

improvement show environment.

 

The WWFA is a Canadian not-for-profit trade association

 

dedicated to the wall and window coverings and decorative

 

accessory industry. Its membership includes suppliers,

 

retailers, interior designers and decorators, whose
products

 

range from carpets and rugs, decorative accessories
and

 

finishes to fabrics and furnishings, and floor,
wall and

 

window coverings.

 

CHS 2002 runs February 3rd to 5th at The National
Trade

 

Centre, Exhibition Place, Toronto. Show hours are
Sunday and

 

Monday: 10:00 a.m. to 5:00 p.m.; Tuesday: 10:00
a.m. to 4:00

 

p.m. (Note: New show hours for 2002). Registration
is free

 

in advance, $25 at the door. To register visit www.crha.com

 

or call 1-800-268-3965. Open to industry trade only.

 

_______________________________________________

 

 

 

COMPANIES IN THE NEWS

 

Canadian In-Store Merchandising has a new address:
1860 Gage

 

Court, Mississauga, Ontario L5S 1S1; phone: 905-677-8004,

 

fax: 905-677-9828.

 

Do it Best Corp. has signed an agreement with Thailand-based

 

Siam Cement Group to expand its presence in Southeast
Asia.

 

Under the same agreement, Do it Best will help Siam
Cement

 

subsidiary Cementhai Distribution to diversify its
product

 

offerings to include hardware and home centre merchandise.

 

Siam Cement Group is the largest industrial conglomerate
in

 

Thailand, with annual revenues of more than US$3
billion.

 

Newell Rubbermaid has warned that it expects second-quarter

 

earnings to miss expectations due to the continued
economic

 

slowdown in the U.S. and Europe. It now anticipates

 

reporting earnings per share of 29 cents for the
quarter

 

ending in June, compared with previous expectations
of 37 to

 

42 cents.

 

Owens Corning has selected IPNet Solutions Inc.
to handle

 

communications with its trading partner network.
IPNet’s

 

routing technology will support the transmission
and

 

management of electronic business transactions,
including

 

the exchange of invoices, schedules and other electronic

 

documents between Owens Corning and its trading
partners.

 

After citing strong sales of energy-related products,
Home

 

Depot Inc., Lowe’s Cos. and Sears, Roebuck and Co.
are

 

increasing their marketing of energy-efficient products.

 

Home Depot will mark conservation products with
a special

 

logo and launch a consumer education campaign next
week.

 

Lowe’s plans to release a circular and online campaign

 

devoted to its energy-efficient appliances. Sears
is touting

 

specific items in its Kenmore line through broadcast
ads and

 

in-store displays.

 

Wal-Mart Stores Inc. reported net sales for the
five-week

 

period ending July 6, 2001 of US$20.5 billion, an
increase

 

of 14.6% over the US$17.9 billion in the similar
period in

 

the prior year. Sales for the twenty-two week period
were

 

US$86.8 billion, an increase of 12.9% over the $76.9
billion

 

in the similar period in the prior year. The company
has 176

 

stores in Canada.

 

_______________________________________________

 

CANADIAN STOCK WATCH

COMPANY 52-WK HIGH 52-WK LOW CLOSE (FRI)
Canadian Tire 25.20 15.05 25.25
Canfor 16.95 7.65 10.10
Emco 7.50 2.60 6.75
Goodfellow 11.00 8.00 9.00
Home Depot 49.74 47.61 48.91
Hudson’s Bay 17.65 12.40 18.40
Lowe’s 64.90 34.25 36.22
Sears Canada 37.25 18.55 21.50
Taiga Forest 10.00 6.80 9.00
West Fraser 36.50 21.00 33.55

 

 

_______________________________________________

 

“I will do anything to lose weight – except diet
and

 

exercise!”

 

– Janeane Garofalo (American comedian who performed
at the

 

Hummingbird Centre in Toronto last week)

 

_______________________________________________

 

MARKET INDICATORS

 

Housing starts in Canada increased by 13.7% from
May to

 

June, says CMHC. The seasonally adjusted annualized
rate

 

rose to 176,200 units in June from 155,000 in May.
Multiple

 

starts rose 24.6% to 78,000 from 62,600 in May,
while

 

singles rose 8.3% to 76,000, up from 70,200.

 

The New Housing Price Index rose 0.2% from April
to May,

 

says Statistics Canada. However, compared to the
same period

 

last year, this index of contractors’ selling prices

 

increased 2.6%. Notable monthly advances were seen
in

 

Ottawa-Hull (+0.7%), St. Catharines-Niagara (+0.6%)
and

 

Montréal (+0.5%). Vancouver was up 0.2%,
Edmonton increased

 

0.3%, while the Prairies remained flat month to
month.

 

U.S. chain store sales rose 0.6% during the week
ended July

 

7, after climbing 0.3% the previous week. The sales
index

 

rose to 400.7 from 398.4 a week earlier. On a year-over-year

 

basis the index rose for a fifth consecutive week,
by 2.2%.

 

_______________________________________________

 

PEOPLE ON THE MOVE

 

Geoffrey Fleming has joined Homecare Building Centres
as

 

marketing communications supervisor. He was previously
at

 

Lansing Buildall, where he served for 12 years as
marketing

 

communications manager. He replaces Irene Hopmans.

 

(905-671-2424)

 

MAAX Inc. has appointed Pat Hénaire as corporate

 

vice-president, marketing. He will be involved in
marketing

 

planning and North American initiatives, and will
assume the

 

marketing direction of all business units within
MAAX. He

 

was previously senior vice-president of sales &
business

 

development at Venmar and Broan-NuTone Canada Inc.

 

(418-387-4155)

 

_______________________________________________

 

OVERHEARD …

 

… “It’s really up and down. It sounds better out
there,

 

but I haven’t seen it kick in hard yet.” – Dave
Johnson,

 

manager, Arrow Building Products in Castlegar, BC
on

 

anticipated improvements in the business conditions

 

following the ousting of the NDP party in the latest

 

provincial election in British Columbia.

 

_______________________________________________

 

BIG NAMES, NETWORKING, AT NEXT

 

HARDLINES MARKETING 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 bev@hardlines.ca
for more info, or call me

 

direct: 416-489-3396. – Michael

 

(Some sponsorships still available for the event
– call me

 

for details.)

 

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

 

To get our special hotel rate for the Hardlines
Marketing

 

Conference at the Four Points Sheraton, call 1-800-737-3211.

 

_______________________________________________

 

* * * * 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

 

* * * * * *

 

BUSINESS DEVELOPMENT ASSOCIATE:

 

The Canadian Retail Hardware Association, producer
of the

 

Toronto-based Canadian Hardware and Building Materials
Show,

 

seeks to add a Sales overachiever to the Association’s
team.

 

Reporting to the Show Manager, you will analyze,
develop and

 

implement sales strategies aimed at securing new
Exhibitors.

 

This will involve both in-office duties and face
to face

 

Customer presentations with senior industry decision-makers.

 

Travelling to regional shows and to the Chicago
NHS show

 

will augment idea development and lead generation.
You’ll

 

also act as a team member at the CHS, ensuring Exhibitor

 

satisfaction.

 

Your background includes a home improvement industry
sales

 

role where your team-based activities have gained
you

 

success and respect from your colleagues. Developing
and

 

securing new business and the resultant benefits
attached to

 

over-achievement are your personal motivators.

 

Bilingualism would also be a definite asset.

 

Please contact, in confidence, Wolf Gugler, quoting
file

 

#02-103. Wolf Gugler & Associates Limited, 1370
Don Mills

 

Road, Suite 300, Don Mills, Ontario M3B 3N7. Phone:
(416)

 

386-1719; fax: (416) 386-1721; email: admin@wolfgugler.com

 

* * * * * *

 

AWARD WINNING COMPANY: Canadian-In store
Merchandising

 

Canadian In-Store Merchandising is pleased to announce
it

 

has received the

 

“Outstanding Merchandising Award” for Toro Lawn
and Garden

 

Products in North

 

America. The award was presented by the Toro Company.

 

Says Peter Huber, National Account Manager, Toro:
“Canadian

 

In-store has excelled over the past year on Toro’s
behalf,

 

helping develop relationships and increased merchandising

 

for Toro products. These efforts have helped us
increase

 

Toro’s sales and market share with its own customers.”

 

_______________________________________________

 

THE HARDLINES MARKETPLACE: just $16 per line.

 

A classified ad with Hardlines is the most direct
way to

 

industry eyes.

 

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

 

our email and fax publications … and have you
seen our

 

Marketplace in our new website?

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


Publish your ad where it matters. Get industry exposure

 

today.

 

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

 

_______________________________________________

 

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

 

(c) 2001 by Michael McLarney.

 

HARDLINES(tm) the electronic newsletter hardlines.ca

 

Phone: 416.489.3396; Fax: 416.489.6154

 

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

 

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

 

Beverly Allen, Marketing Manager: bev@hardlines.ca

 

Nancy Wright, Circulation Manager: nancy@hardlines.ca

 

_______________________________________________

 

THE HARDLINES “FAIR PLAY” POLICY:

 

Reproduction in whole or in part is very uncool
and strictly

 

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

 

play fair! Call for information on multiple subscriptions
or

 

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

 

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

 

your internal routing from this end!

 

_______________________________________________

 

Subscription: $199+$13.93 GST = $212.93 (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.

 

 

 

 

 

July10_01

HARDLINES™
Five years serving Canada’s home improvement industry
July 10, 2000 – Volume vi, #27
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail:
buzz@hardlinesfax.com

 


Check out our incredible Classifieds section!


* * * * * *
* IN THIS ISSUE:
* Government $$ for big box developer get independents up in arms
* Reorganization at Home Hardware reflects Beaver assimilation
* Tim-BR Mart promotion gets national push
* Lowe’s is now 2nd largest heavy appliance seller in U.S.
* * * * * *

 

COTTAGE FOR RENT: LAKE HURON Available August 19-26 and August 26-September 2, this 3-bedroom lakefront cottage sleeps 5 and has shallow-entry sandy beach ideal for kids, TV, fireplace, canoe. Pets ok. On Howdenvale Beach, near Owen Sound and north of Sauble Beach at the foot of the Bruce Peninsula. $775 for each week. For more information, contact Hardlines at: 416-480-3396, or e-mail: buzz@hardlinesfax.com

* * * * * *

PROVINCE GIVES $$ TO RETAIL PROPERTY DEVELOPER

Independent dealers in New Brunswick are up in arms following a land development deal between a power centre that includes a Home Depot and two levels of government. The new store, which will go up in Moncton some time in early 2001, is located off Wheeler Blvd.

The province has agreed to pay the property developer of the power centre $500,000 for off ramps from the highway that will feed right into Home Depot’s parking lot. The city of Moncton will contribute another $125,000 to build arterial roads.

The infusion of government money has many baffled – and concerned it may set a precedent. “It’s usually the other way around,” admits one retail planning consultant, adding that the arrangement is “a little unusual,” but points out that the amount of government funding is likely to account for only a fraction of the total cost of road construction, which can reach into the millions of dollars.

The new 20-acre power centre, designated as Trinity Rd. II, will reportedly add Wal-Mart as another tenant. The site is diagonally across from Trinity Rd. I, an existing power centre that includes Costco and a Kent big box. This centre has no direct access from the highway.

Representatives of the Atlantic Building Supply Dealers’ Association are meeting today with the NB minister of export and investments, Peter Mescheaux to voice their protest. “Two of the largest retail organizations in the world and we’re paying for the off ramps,” says Don Sherwood, executive director of the ABSDA. “A tremendous amount of input has come from our members throughout Atlantic Canada as a result of this.”

TIM-BR MART BASEBALL TIE-IN GETS NATIONAL PROMOTION

A summer promotion between Honda Canada, the Toronto Blue-Jays and TIM-BR Mart branded stores throughout Ontario and the Atlantic provinces will see four finalists from Ontario and four finalists from Atlantic Canada each win a trip for two to a TIM-BR Mart Tuesday Blue Jays game at the SkyDome. Two 2000 Honda CR-V EXs will be given away, one on August 15 and one on September 19. The promotion is being advertised on television and radio, through sale event flyers, exterior pole wrappers for store parking lots, interior POP and the TIM-BR Mart website.

 


COMPANIES IN THE NEWS

 

Canadian Tire launches its “Radio Days” summer promotion today. For the next two weeks, two products each day will be featured at “Flash Back” prices – costing what the would have in the ’60s and ’70s. For the duration of the summer, Retro Tuesdays and Thursdays will continue the pricing promotion. In addition, CTC is holding a consumer contest, giving away retro-styled products like a Chrysler PT Cruiser, bicycles and scooters.

Hudson’s Bay Co. has formed an alliance with IBM Canada, Microsoft Canada and Oracle Corp. Canada to implement a new e-commerce business strategy for HBC. According to the release, they will “enable HBC’s enterprise-wide integration of the next-generation technology solutions and the renovation of HBC into an e-enabled retail leader in North America.” Got that?

Home Depot Canada opened the doors to its first store in Belleville on June 6, the company’s 57th in Canada. More than 170 locals have been hired to fill full- and part-time staff positions.

Lowe’s Home Improvement Warehouse has moved up to the #2 ranking in appliance sales nationwide and the company is the #1 seller of appliances among home improvement centres. The ranking, by the Stevenson Co., is based on total shipments of appliances to all U.S. appliance retailers in 2000. Lowe’s stocks more than 250 major appliances, including Whirlpool, KitchenAid, Frigidaire, Maytag, Jenn-Air and General Electric. Lowe’s Appliance Advantage includes an additional 2,500 appliances available through special order.

To celebrate the opening of its 1000th store, Home Depot turns Wall Street orange today. A huge orange apron is being draped over the exterior of the nine-story New York Stock Exchange building. Inside, Chairman Bernie Marcus and President and CEO Arthur Blank, joined by staff from all 11 North American divisions, will ring the bell to open the exchange. Pauline Atwaters from the Langley, BC, store is representing the Canadian division. MAAX Inc. closed its first quarter ended May 31 with a 20.8% increase in sales, which reached $133.4 million, up from $110.4 million. Net income rose 8.8% to $7.4 million, compared with $6.8 million for the first quarter of the previous year. This followed a 38% increase in sales for its fiscal year ended February 29, to $431.9 million.

Premdor Inc. has signed an agreement to acquire certain assets of Wing Industries, Inc., a subsidiary of Atrium Cos. Wing specializes in the fabrication and distribution of value-added interior door products to the U.S. retail home improvement industry. The deal is expected to close within 45 days, subject to approvals.


 

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 22.80
Canfor 19.80 10.10 13.40
Goodfellow 12.55 8.75 10.00
Home Depot 70.00 35.75 55 1/2
Hudsons Bay 23.85 12.50 15.40
Lowe’s Cos. 67.25 40.40 45 1/2
Sears Canada 42.50 29.00 34.60
Taiga Forest 14.75 8.05 9.00
West Fraser 41.00 28.00 30.00

 

 

“Tis better to be alone than in bad company.” – George Washington (1732-1799)


PEOPLE ON THE MOVE

 

Mark Coffey has joined Home Depot Canada as the hard goods merchant for seasonal. He comes over from Growmark, where he spent nine years. Prior to that he was at Beaver Lumber. (416-609-0852)

Dave Browne, vice-president of sales at Danbel Inc., has left the company.

Jim Morgan has joined Duxton Windows as sales manager. A 25-year veteran of the window and door industry, he will be responsible for building Duxton’s distributor network for its pultruded fiberglass windows and doors, especially in western Canada. (204-339-6456)

* * * * * *

NEW REPORTING AT HOME HARDWARE REFLECTS BEAVER CONSOLIDATION

Eric Konecsni has been named vice-president, operations, at Home Hardware Stores Ltd. He heads up a new operations group comprising corporate stores, real estate, dealer support, dealer development, distribution and warehousing, the Paint and Home Products division, and Home Furniture. Beaver Lumber, which is also part of the group, will continue to be Konecsni’s responsibility

until the conversion is complete … Jim Baird, vice-president – eastern operations, and Lance Shipley, vice-president – western operations, keep their management roles with Beaver Lumber and their positions as directors on the boards of individual Beaver joint-venture companies until the conversion to Home Hardware is complete.

Senior management team (reporting to Paul Straus, vice-president and CEO):

Terry Davis, Vice-president, Information Technology
Ray Gabel, Vice-president, Merchandising and Marketing – Hardlines
Stew Gingrich, Director, Human Resources
Eric Konecnsi, Vice-president, Operations
Dianne McTavish, Corporate Secretary
Bill Simpson, Vice-president, Finance and Administration
Bruce White, Vice-president, Merchandising and Marketing – Building Supply

Information technology team (reporting to Terry Davis, vice-president, information technology):

Brent Horst, Corporate Systems Development
Bernie Henry, Corporate Computing
John Rogez, Retail Systems Development
Glen Seibel, Retail Technology
Rich Clemmer, Enterprise Architecture

Merchandising and Marketing – Hardlines group (reporting to Ray Gabel, vice-president, merchandising and marketing – hardlines):

Dick Plata, Sales & Promotions Manager – Hardlines
Neil Schmidt, Merchandise Services Manager – Hardlines
Bruce Shuh, Director, Marketing – Hardlines
Joel Marks, Director, Merchandising – Hardlines. Marks was most recently director, merchandising at Beaver Lumber, where he has been part of the team since 1981.

Merchandising and marketing – building supply group (reporting to Bruce White, vice-president, merchandising and marketing – building supply):

Eric Caldwell, Merchandising and Marketing Manager – Building Supply, Atlantic
Daniel Verville, Merchandising and Marketing Manager – Building Supply, Quebec
Doug Shantz, Merchandising and Marketing Manager – Building Supply, Ontario
Mel Bandravala, Merchandising and Marketing Manager – Building Supply, Western
Terry Little, Director, Merchandise Services – Building Supply
Jack Baillie, Director, Marketing – Building Supply Reporting to Bruce Smith, Jack Baillie was most recently director, marketing at Beaver Lumber, having worked there for 13 years. Terry Little brings 12 years of experience at Beaver Lumber, most recently as Manager, Pricing and Product Information. He’ll also report to Smith. Each of these people has continuing duties in the integration of Beaver, and will divide their time between St. Jacobs and Markham, ON.

 


OVERHEARD…

 

“This arrangement goes well beyond e-tailing and ensures that our e-business initiatives will be executed based on an integrated approach and impact our company from front to back.” – PR gobbledy-gook, attributed to George Heller, president and CEO, Hudson’s Bay Corp., from a release announcing HBC’s partnership with IBM, Oracle and Microsoft to develop HBC’ e-commerce business.

… “Transforming your business into an e-business is about how to use the Internet to run your company with dramatically increased efficiencies.” – Bill Bergen, president of Oracle Corp. Canada Inc., explains that being on the Internet is all about, well, being on the Internet. Or something. From the same press release as above.

 


MARKET INDICATORS

 

The value of building permits issued by municipalities in May declined 0.8% from April, to $2.9 billion. The overall decline was due to commercial permits, which fell 9.3% to $1.2 billion. Residential permits were up, however, to 1.6 billion, a 6.7% increase. Multiple-family dwelling permits were up 20% to $441 million, while single-family permits rose 2.5% to $1.2 billion.

 


HARDLINES WHO’S WHO:
Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July.

 

HARDLINES INDUSTRY REPORT:
HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is!

FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:
September 14, 2000. An incredible one-day symposium featuring some of North America’s leaders in retail, including Home Depot, McMillan/Doolittle, Gardener’s Supply, J&H Builder’s Warehouse and much more! Expect about 200 retail and vendor executives to attend!

THE WOMEN’S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

September 21: “Fully Alive From 9 to 5!” Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com

For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org

 


Hardlines Classifieds

 

Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: bev@hardlinesfax.com © 2000 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.

 


 

HARDLINES™
Five years serving Canada’s home improvement industry
July 10, 2000 – Volume vi, #27
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail:
buzz@hardlinesfax.com

 


Check out our incredible Classifieds section!


* * * * * *
* IN THIS ISSUE:
* Government $$ for big box developer get independents up in arms
* Reorganization at Home Hardware reflects Beaver assimilation
* Tim-BR Mart promotion gets national push
* Lowe’s is now 2nd largest heavy appliance seller in U.S.
* * * * * *

 

COTTAGE FOR RENT: LAKE HURON Available August 19-26 and August 26-September 2, this 3-bedroom lakefront cottage sleeps 5 and has shallow-entry sandy beach ideal for kids, TV, fireplace, canoe. Pets ok. On Howdenvale Beach, near Owen Sound and north of Sauble Beach at the foot of the Bruce Peninsula. $775 for each week. For more information, contact Hardlines at: 416-480-3396, or e-mail: buzz@hardlinesfax.com

* * * * * *

PROVINCE GIVES $$ TO RETAIL PROPERTY DEVELOPER

Independent dealers in New Brunswick are up in arms following a land development deal between a power centre that includes a Home Depot and two levels of government. The new store, which will go up in Moncton some time in early 2001, is located off Wheeler Blvd.

The province has agreed to pay the property developer of the power centre $500,000 for off ramps from the highway that will feed right into Home Depot’s parking lot. The city of Moncton will contribute another $125,000 to build arterial roads.

The infusion of government money has many baffled – and concerned it may set a precedent. “It’s usually the other way around,” admits one retail planning consultant, adding that the arrangement is “a little unusual,” but points out that the amount of government funding is likely to account for only a fraction of the total cost of road construction, which can reach into the millions of dollars.

The new 20-acre power centre, designated as Trinity Rd. II, will reportedly add Wal-Mart as another tenant. The site is diagonally across from Trinity Rd. I, an existing power centre that includes Costco and a Kent big box. This centre has no direct access from the highway.

Representatives of the Atlantic Building Supply Dealers’ Association are meeting today with the NB minister of export and investments, Peter Mescheaux to voice their protest. “Two of the largest retail organizations in the world and we’re paying for the off ramps,” says Don Sherwood, executive director of the ABSDA. “A tremendous amount of input has come from our members throughout Atlantic Canada as a result of this.”

TIM-BR MART BASEBALL TIE-IN GETS NATIONAL PROMOTION

A summer promotion between Honda Canada, the Toronto Blue-Jays and TIM-BR Mart branded stores throughout Ontario and the Atlantic provinces will see four finalists from Ontario and four finalists from Atlantic Canada each win a trip for two to a TIM-BR Mart Tuesday Blue Jays game at the SkyDome. Two 2000 Honda CR-V EXs will be given away, one on August 15 and one on September 19. The promotion is being advertised on television and radio, through sale event flyers, exterior pole wrappers for store parking lots, interior POP and the TIM-BR Mart website.

 


COMPANIES IN THE NEWS

 

Canadian Tire launches its “Radio Days” summer promotion today. For the next two weeks, two products each day will be featured at “Flash Back” prices – costing what the would have in the ’60s and ’70s. For the duration of the summer, Retro Tuesdays and Thursdays will continue the pricing promotion. In addition, CTC is holding a consumer contest, giving away retro-styled products like a Chrysler PT Cruiser, bicycles and scooters.

Hudson’s Bay Co. has formed an alliance with IBM Canada, Microsoft Canada and Oracle Corp. Canada to implement a new e-commerce business strategy for HBC. According to the release, they will “enable HBC’s enterprise-wide integration of the next-generation technology solutions and the renovation of HBC into an e-enabled retail leader in North America.” Got that?

Home Depot Canada opened the doors to its first store in Belleville on June 6, the company’s 57th in Canada. More than 170 locals have been hired to fill full- and part-time staff positions.

Lowe’s Home Improvement Warehouse has moved up to the #2 ranking in appliance sales nationwide and the company is the #1 seller of appliances among home improvement centres. The ranking, by the Stevenson Co., is based on total shipments of appliances to all U.S. appliance retailers in 2000. Lowe’s stocks more than 250 major appliances, including Whirlpool, KitchenAid, Frigidaire, Maytag, Jenn-Air and General Electric. Lowe’s Appliance Advantage includes an additional 2,500 appliances available through special order.

To celebrate the opening of its 1000th store, Home Depot turns Wall Street orange today. A huge orange apron is being draped over the exterior of the nine-story New York Stock Exchange building. Inside, Chairman Bernie Marcus and President and CEO Arthur Blank, joined by staff from all 11 North American divisions, will ring the bell to open the exchange. Pauline Atwaters from the Langley, BC, store is representing the Canadian division. MAAX Inc. closed its first quarter ended May 31 with a 20.8% increase in sales, which reached $133.4 million, up from $110.4 million. Net income rose 8.8% to $7.4 million, compared with $6.8 million for the first quarter of the previous year. This followed a 38% increase in sales for its fiscal year ended February 29, to $431.9 million.

Premdor Inc. has signed an agreement to acquire certain assets of Wing Industries, Inc., a subsidiary of Atrium Cos. Wing specializes in the fabrication and distribution of value-added interior door products to the U.S. retail home improvement industry. The deal is expected to close within 45 days, subject to approvals.


 

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 22.80
Canfor 19.80 10.10 13.40
Goodfellow 12.55 8.75 10.00
Home Depot 70.00 35.75 55 1/2
Hudsons Bay 23.85 12.50 15.40
Lowe’s Cos. 67.25 40.40 45 1/2
Sears Canada 42.50 29.00 34.60
Taiga Forest 14.75 8.05 9.00
West Fraser 41.00 28.00 30.00

 

 

“Tis better to be alone than in bad company.” – George Washington (1732-1799)


PEOPLE ON THE MOVE

 

Mark Coffey has joined Home Depot Canada as the hard goods merchant for seasonal. He comes over from Growmark, where he spent nine years. Prior to that he was at Beaver Lumber. (416-609-0852)

Dave Browne, vice-president of sales at Danbel Inc., has left the company.

Jim Morgan has joined Duxton Windows as sales manager. A 25-year veteran of the window and door industry, he will be responsible for building Duxton’s distributor network for its pultruded fiberglass windows and doors, especially in western Canada. (204-339-6456)

* * * * * *

NEW REPORTING AT HOME HARDWARE REFLECTS BEAVER CONSOLIDATION

Eric Konecsni has been named vice-president, operations, at Home Hardware Stores Ltd. He heads up a new operations group comprising corporate stores, real estate, dealer support, dealer development, distribution and warehousing, the Paint and Home Products division, and Home Furniture. Beaver Lumber, which is also part of the group, will continue to be Konecsni’s responsibility

until the conversion is complete … Jim Baird, vice-president – eastern operations, and Lance Shipley, vice-president – western operations, keep their management roles with Beaver Lumber and their positions as directors on the boards of individual Beaver joint-venture companies until the conversion to Home Hardware is complete.

Senior management team (reporting to Paul Straus, vice-president and CEO):

Terry Davis, Vice-president, Information Technology
Ray Gabel, Vice-president, Merchandising and Marketing – Hardlines
Stew Gingrich, Director, Human Resources
Eric Konecnsi, Vice-president, Operations
Dianne McTavish, Corporate Secretary
Bill Simpson, Vice-president, Finance and Administration
Bruce White, Vice-president, Merchandising and Marketing – Building Supply

Information technology team (reporting to Terry Davis, vice-president, information technology):

Brent Horst, Corporate Systems Development
Bernie Henry, Corporate Computing
John Rogez, Retail Systems Development
Glen Seibel, Retail Technology
Rich Clemmer, Enterprise Architecture

Merchandising and Marketing – Hardlines group (reporting to Ray Gabel, vice-president, merchandising and marketing – hardlines):

Dick Plata, Sales & Promotions Manager – Hardlines
Neil Schmidt, Merchandise Services Manager – Hardlines
Bruce Shuh, Director, Marketing – Hardlines
Joel Marks, Director, Merchandising – Hardlines. Marks was most recently director, merchandising at Beaver Lumber, where he has been part of the team since 1981.

Merchandising and marketing – building supply group (reporting to Bruce White, vice-president, merchandising and marketing – building supply):

Eric Caldwell, Merchandising and Marketing Manager – Building Supply, Atlantic
Daniel Verville, Merchandising and Marketing Manager – Building Supply, Quebec
Doug Shantz, Merchandising and Marketing Manager – Building Supply, Ontario
Mel Bandravala, Merchandising and Marketing Manager – Building Supply, Western
Terry Little, Director, Merchandise Services – Building Supply
Jack Baillie, Director, Marketing – Building Supply Reporting to Bruce Smith, Jack Baillie was most recently director, marketing at Beaver Lumber, having worked there for 13 years. Terry Little brings 12 years of experience at Beaver Lumber, most recently as Manager, Pricing and Product Information. He’ll also report to Smith. Each of these people has continuing duties in the integration of Beaver, and will divide their time between St. Jacobs and Markham, ON.

 


OVERHEARD…

 

“This arrangement goes well beyond e-tailing and ensures that our e-business initiatives will be executed based on an integrated approach and impact our company from front to back.” – PR gobbledy-gook, attributed to George Heller, president and CEO, Hudson’s Bay Corp., from a release announcing HBC’s partnership with IBM, Oracle and Microsoft to develop HBC’ e-commerce business.

… “Transforming your business into an e-business is about how to use the Internet to run your company with dramatically increased efficiencies.” – Bill Bergen, president of Oracle Corp. Canada Inc., explains that being on the Internet is all about, well, being on the Internet. Or something. From the same press release as above.

 


MARKET INDICATORS

 

The value of building permits issued by municipalities in May declined 0.8% from April, to $2.9 billion. The overall decline was due to commercial permits, which fell 9.3% to $1.2 billion. Residential permits were up, however, to 1.6 billion, a 6.7% increase. Multiple-family dwelling permits were up 20% to $441 million, while single-family permits rose 2.5% to $1.2 billion.

 


HARDLINES WHO’S WHO:
Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July.

 

HARDLINES INDUSTRY REPORT:
HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is!

FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:
September 14, 2000. An incredible one-day symposium featuring some of North America’s leaders in retail, including Home Depot, McMillan/Doolittle, Gardener’s Supply, J&H Builder’s Warehouse and much more! Expect about 200 retail and vendor executives to attend!

THE WOMEN’S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

September 21: “Fully Alive From 9 to 5!” Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com

For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, or check out their website: www.wcpncanada.org

 


Hardlines Classifieds

 

Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: bev@hardlinesfax.com © 2000 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.

 


 

Jul. 9, 2001


HARDLINES

HARDLINES™

 

Canada’s electronic information service for
the home improvement industry

 

July 9, 2001

 

Volume vii, #28

 

Michael McLarney, Editor & Publisher

 

Phone: 416.489.3396

 

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

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

 

* * * * * *

 

IN THIS ISSUE:

 

* Allroc anticipates billions in U.S. sales growth
* Canadians shop patriotically — sometimes

 

* Wal-Mart remains #1 U.S. retailer, Home Depot hits
#3

 

* Wood beetle could cost B.C. forest industry billions

 

* Residential building permits increase

 

* * * * * *

 

The Retail Strategies Symposium is a half-day education
seminar that will feature industry overviews from authorities 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.

 

September 12, 2001, at the Four Points Sheraton Hotel,
Toronto Airport. Call for details!

 

* * * * * *

 

THE HARDLINES QUARTERLY REPORT

 

Get the trends. The numbers. The research. The insights.

 

HQR is a quarterly executive summary of the issues
and news driving hardware and home improvement retailing. Each issue is jam-packed
with thought provoking articles, in-depth analysis and exclusive survey results
of industry performance and benchmarks.

 

The latest issue includes:
– A store-by-store analysis of big box merchandising
strategies

 

– Benchmarking standards of hardware and building
centre dealers

 

– The incredible Buying Group Org Chart ™

 

– Analysis of the latest housing and building statistics

 

GET A SHARPER FOCUS ON THE INDUSTRY. SUBSCRIBE TODAY!

 

Contact: Nancy Wright, Circulation Manager.

 

Phone: 416-489-3396; mailto:nancy@hardlines.ca

 

* * * * * *

 

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.

 

* * * * * *

 

ALLROC LOOKS EAST, SOUTH FOR EXPANSION

 

Calgary-based Allroc Building Products continues
to look to Eastern Canada for expansion opportunities. “We are kicking
lots of tires in Ontario and picked up a few members there,” says Bob Hancock,
who has held the position of vice-president purchasing, sales and marketing
since March of this year.

 

Of its 90 members, about one-half are traditional
LBM dealers and the others are gypsum supply dealers. Nonetheless, about 80%
of the group’s volume is generated by GSD. “We’ve got a thrust
to expand our LBM and gypsum drywall base in Atlantic Canada,” says Hancock.
“2001 was the beginning of a very expansionist period for Allroc, geared
to growing our LBM presence throughout Canada, while maintaining our dominance
in GSD.”

 

Allroc has also been sniffing around Atlantic Canada,
where recent movement within the buying groups there has exposed the issue of
member liability for defaulting members. Because Allroc works strictly as a
buying group with a rebate program for its customers, the only risk from defaults
is to Allroc itself, making it, says Hancock, an appealing alternative. He expects
Allroc’s Canadian business to grow by $250 million over the next two years,
largely through the picking up traditional LBM dealers versus GSD. Sales by
all its retail members were $600 million in 2000.

 

But Allroc is not limiting itself to Canada: U.S.
expansion is part of its growth strategy, focussing entirely on GSD. It’s
a market Hancock is familiar with. Before taking over the vice-president role
in March, he ran Allroc’s retail GSD chain, Winroc, in the U.S. And with
the appointment of a new vice-president and general manager in the U.S. (see
“People on the move”), Hancock says the U.S. business can grow to
US$1 billion over the next two years.

 

_____________________________________________

 

BEETLE ADDS TO LUMBER WOES IN BRITISH COLUMBIA

 

A massive infestation of beetles in 7 million hectares
of B.C. forest could severely affect industry bottom lines. More than $4 billion
worth of timber may be cut in a measure to control damages. Analysts say the
threat that so much wood could suddenly become available for sale is likely
to put pressure on lumber prices.

 

This is an
immense problem because of the magnitude of the infestation,” said Greg
Jadrzyk, president of the Northern Forest Products Association (NFPA), which
represents about 55 operations in central B.C.

 

Industry officials are concerned that the tiny black
beetle will affect producer profits by increasing production costs. They fear
that Japanese buyers will shy away from wood that has an ink-like blue stain
caused by the beetle. Companies with large holdings in the affected area include
Canfor Co., Slocan Forest Products Ltd., Weldwood of Canada Ltd., West Fraser
Timber Co. Ltd., Ainsworth Lumber Co. and Lignum Ltd.

 

NFPA has asked the B.C. government to streamline
harvesting regulations, allowing companies to react quickly to the situation
by harvesting trees in areas where it is deemed necessary.

 

______________________________________________

 

CANADIAN CONSUMERS WILL SHOP CANADIAN … SOMETIMES

 

Canadian consumers feel that home-grown retailers
do a better job than their U.S. competitors, but not by a huge margin. Of those
surveyed, 36% disagreed that U.S. retailers do a better job than their Canadian
counterparts, while 23% agreed and 41% were neutral on the issue. Vancouverites,
the report says, favoured U.S. retailers, while Montréalers were most
likely to support Canadian retailers.

 

These results appeared in Major Market Research Report
2001, a consumer survey conducted by Kubas Consultants in Toronto.

 

In line with this support of home-grown business,
Canadian Tire continues to be the most shopped retailer. It attracts over 90%
of consumers over a one-year period partly as a result of its large coverage
of the market. Rounding out the top stores are Zellers, Shoppers Drug Mart,
Sears, The Bay and Wal-Mart.

 

Kubas Consultants is expecting $289.6 billion in
retail sales for 2001. This 4.5% gain compares with the 6.4% growth recorded
in 2000. Projected retail spending across the country registers positive expectations.
All of the major city centres surveyed had high percentages of respondents who
expect to increase their spending in retail stores this year.

 

Consumer confidence is sharply down: the number of
respondents saying that things are getting better is at its lowest in the survey’s
five-year-long history. Personal economic circumstances, however, are improving
for approximately 40% of consumers surveyed.

 

__________________________________________________

 

COMPANIES IN THE NEWS

 

Richelieu Hardware has announced a two-for-one split
of its outstanding common shares, effective July 20, 2001. The specialty hardware
distributor, which sells to both furniture/kitchen cabinet manufacturers and
hardware retailers, has been growing aggressively through expansion in recent
years.

 

Tim-BR-Marts Ltd. and LBMX have formed a partnership
to develop a private, web-based trading community for the exchange of electronic
documents between the Tim-BR-Marts head office and its trading partners. The
program will be implemented in two phases, starting with the exchange of electronic
invoices from suppliers to the Tim-BR-Marts head office. In the second phase,
dealers will be able to issue electronic P.O.s directly to suppliers.

 

Wal-Mart Stores Inc. has held on to its position
as the largest retailer in the U.S., according to a new poll. Food retailer
Kroger stayed in the number-two spot, while Home Depot jumped to number three,
beating out Sears, Roebuck and Co.

 

Do it Best Corp. has entered into an exclusive partnership
with MRM Inc. to give Do it Best members access to products within MRM’s
Floor To Ceiling franchise. This includes an expanded selection of home décor
products such as flooring, kitchen cabinets, bath vanities, wall coverings,
and other products from major, national-brand manufacturers.

 

Bowater Inc. and Alliance Forest Products Inc. have
received requests for additional information in connection with the announced
acquisition of Alliance by Bowater. The companies still expect to complete the
transaction within 30 days after compliance of the request.

 

Canada’s Trade Ministry filed 250,000 pages of evidence
last week in the U.S. countervailing duty case against the Canadian softwood
lumber industry. Canada wants free trade in softwood lumber, used mainly in
home building, where annual exports reach about $10 billion. Ottawa accuses
the United States of protectionism in trying to prevent the free flow of wood
under the North American Free Trade Agreement.

 

Lowe’s Cos. has added the full line of Amana appliances
to its appliance department. Nearly 700 Lowe’s stores will begin carrying
the Amana products as part of the retailer’s aggressive strategy to expand in
this high-growth area and establish a “house of brands” in appliances.

 

USG Co. has filed for protection under Chapter 11
as a route to solve its asbestos-related litigation. USG has paid out more than
US$450 million to claimants of personal-injury lawsuits, and expects to pay
out another US$275 million in 2001. The company’s subsidiaries, United
States Gypsum, USG Interior and L&W Supply also filed for protection. USG’s
international operations, including CGC Inc., were not included in the filing.
No impact is expected on Canadian operations.

 

Mexican conglomerate Grupo Alfa has closed the sale
of its retail unit, Total Home, to Home Depot Inc. Total Home is the second
largest DIY chain in Mexico, with three stores in the northern industrial city
of Monterrey and one in Mexico City.

 

____________________________________________

 

CANADIAN STOCK WATCH

 

COMPANY 52-WK HIGH 52-WK LOW CLOSE (FRI)
Canadian Tire 25.20 15.05 25.39
Canfor 16.95 7.65 9.90
Goodfellow 11.00 8.00 8.95
Home Depot 49.74 47.61 45.36
Hudson’s Bay 17.65 12.40 17.40
Lowe’s 64.90 34.25 34.60
Sears Canada 37.25 18.55 21.80
Taiga Forest 10.00 6.80 9.12
West Fraser 36.50 21.00 34.80

 

 

______________________________________________

 

Nothing shames
the human more persistently and eloquently than nature.”

Jonathan
Raban (British writer)

 

_______________________________________________

 

MARKET INDICATORS

 

The value of building permits issued by Canadian
municipalities declined in May to $3.2 billion, says Statistics Canada. This
represents a 0.6% reduction against April due to a drop in building intentions
in the non-residential sector. May’s slide of 10.6% in the value of non-residential
building permits followed a strong advance in April. Industrial construction
intentions dropped for the fourth month in a row in May. Building permits for
housing rose 9.4% from April to $1.7 billion, halting three consecutive monthly
declines.

 

Statistics Canada has reported unchanged department
store sales of $1.64 billion over the April-May period. May’s result follow
two successive months of increases, 0.6% in April and 0.4% in March. The upward
movement that began in the Spring of 2000 has continued despite stable sales
in May. Average department store sales per location totalled $2.24 million.

 

U.S. consumer sentiment rose for a second straight
month in June. The University of Michigan’s consumer sentiment index rose to
92.6 in June from 92.0 in May. The June reading was far above the recent trough
of 90.6 scored in February, its lowest in nearly five years. The preliminary
June reading, released mid-month, was 91.6.

 

______________________________________________

 

PEOPLE ON THE MOVE

 

Pete Welly has been named vice-president for the
North American acoustical business at Allroc Building Products Ltd. and regional
operations manager for the mountain states region. He is located in Salt Lake
City, UT. (403-236-5388)

Don Hoye, president and CEO of TruServ Corp., has
been asked to step down, effective immediately. The company has been dogged
by troubles since it merged with ServiStar in 1997. Accounting errors as a result
of the merger left the co-op with US$
130.8 million
net loss in fiscal 1999. Bill Blagg, a dealer from Texas and chairman of the
TruServ board, has stepped in temporarily as acting CEO. (773-695-5000)

At its annual general meeting this week, MAAX Inc. announced the appointment
of André Heroux as president and CEO. Heroux joined MAAX in 1999 as vice-president
and general manager, operations, and was soon after appointed president and
COO. (418-387-4155)

 

______________________________________________

 

OVERHEARD …

 

… “We have no plans to ally ourselves with
anybody else. We haven’t missed a beat.”

 

Bob Hancock,
vice-president purchasing, sales and marketing for Allroc Building Products,
on his buying group’s departure from the umbrella group, Evergreen Building
Materials, more than three years ago.

 

… “I feel Don Hoye’s personal financial
statement should be made available to the membership. I also feel a re-election
of a new board of directors would clear up some troubled waters. Don’t let Don
Hoye resign without a full and complete accounting of himself. I hope [TruServ
Corp.] can bring in someone with vision and concern for the dealers. They make
the whole thing work. Ask John Cotter, he knew. P.S.: Don should make good on
all the outstanding stock payments before he skips down the yellow brick road.”
— rant from an online chat room for TruServ dealers, where the hot topic
last week was griping about their exiting CEO.

 

* * * * * *

 

BIG NAMES, NETWORKING, AT NEXT

 

HARDLINES MARKETING 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
bev@hardlines.ca
for more info, or call me direct: 416-489-3396. — Michael

(Some sponsorships still available for the event
— call me for details.)

 

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

 

To get our special hotel rate for the Hardlines Marketing
Conference at the Four Points Sheraton, call 1-800-737-3211.

 

______________________________________________

 

* * * * 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

* * * * * *

 

BUSINESS DEVELOPMENT ASSOCIATE:

 

The Canadian Retail Hardware Association, producer
of the Toronto-based Canadian Hardware and Building Materials Show, seeks to
add a Sales overachiever to the Association’s team.

 

Reporting to the Show Manager, you will analyze,
develop and implement sales strategies aimed at securing new Exhibitors. This
will involve both in-office duties and face to face Customer presentations with
senior industry decision-makers. Travelling to regional shows and to the Chicago
NHS show will augment idea development and lead generation. You’ll also
act as a team member at the CHS, ensuring Exhibitor satisfaction.

 

Your background includes a home improvement industry
sales role where your team-based activities have gained you success and respect
from your colleagues. Developing and securing new business and the resultant
benefits attached to over-achievement are your personal motivators.

 

Bilingualism would also be a definite asset.

 

Please contact, in confidence, Wolf Gugler, quoting
file #02-103. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite
300, Don Mills, Ontario M3B 3N7. Phone: (416) 386-1719; fax: (416) 386-1721;
email:
admin@wolfgugler.com

 

* * * * * *

 

BUILDING MATERIALS REPRESENTATIVE:

 

Can-Save, a building materials distributor based
in Barrie, ON is looking for a building material representative to call on all
lumber and building materials retailers in the GTA and Niagara peninsula.

 

Experience is an asset. Contact Larry Koza or Dan
Clements, phone: 800-461-5411; fax: 705-722-1124; email:
lkoza@can-save.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.

 

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

 

______________________________________________

 

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

 

© 2001 by Michael McLarney.

 

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!

 

______________________________________________

 

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

 

July 9, 2001

 

Volume vii, #28

 

Michael McLarney, Editor & Publisher

 

Phone: 416.489.3396

 

Fax: 416.489.6154

 

email: mike@hardlines.ca

 

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

 

* * * * * *

 

IN THIS ISSUE:

 

* Allroc anticipates billions in U.S. sales growth
* Canadians shop patriotically — sometimes

 

* Wal-Mart remains #1 U.S. retailer, Home Depot hits
#3

 

* Wood beetle could cost B.C. forest industry billions

 

* Residential building permits increase

 

* * * * * *

 

The Retail Strategies Symposium is a half-day education
seminar that will feature industry overviews from authorities 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.

 

September 12, 2001, at the Four Points Sheraton Hotel,
Toronto Airport. Call for details!

 

* * * * * *

 

THE HARDLINES QUARTERLY REPORT

 

Get the trends. The numbers. The research. The insights.

 

HQR is a quarterly executive summary of the issues
and news driving hardware and home improvement retailing. Each issue is jam-packed
with thought provoking articles, in-depth analysis and exclusive survey results
of industry performance and benchmarks.

 

The latest issue includes:
– A store-by-store analysis of big box merchandising
strategies

 

– Benchmarking standards of hardware and building
centre dealers

 

– The incredible Buying Group Org Chart ™

 

– Analysis of the latest housing and building statistics

 

GET A SHARPER FOCUS ON THE INDUSTRY. SUBSCRIBE TODAY!

 

Contact: Nancy Wright, Circulation Manager.

 

Phone: 416-489-3396; mailto:nancy@hardlines.ca

 

* * * * * *

 

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.

 

* * * * * *

 

ALLROC LOOKS EAST, SOUTH FOR EXPANSION

 

Calgary-based Allroc Building Products continues
to look to Eastern Canada for expansion opportunities. “We are kicking
lots of tires in Ontario and picked up a few members there,” says Bob Hancock,
who has held the position of vice-president purchasing, sales and marketing
since March of this year.

 

Of its 90 members, about one-half are traditional
LBM dealers and the others are gypsum supply dealers. Nonetheless, about 80%
of the group’s volume is generated by GSD. “We’ve got a thrust
to expand our LBM and gypsum drywall base in Atlantic Canada,” says Hancock.
“2001 was the beginning of a very expansionist period for Allroc, geared
to growing our LBM presence throughout Canada, while maintaining our dominance
in GSD.”

 

Allroc has also been sniffing around Atlantic Canada,
where recent movement within the buying groups there has exposed the issue of
member liability for defaulting members. Because Allroc works strictly as a
buying group with a rebate program for its customers, the only risk from defaults
is to Allroc itself, making it, says Hancock, an appealing alternative. He expects
Allroc’s Canadian business to grow by $250 million over the next two years,
largely through the picking up traditional LBM dealers versus GSD. Sales by
all its retail members were $600 million in 2000.

 

But Allroc is not limiting itself to Canada: U.S.
expansion is part of its growth strategy, focussing entirely on GSD. It’s
a market Hancock is familiar with. Before taking over the vice-president role
in March, he ran Allroc’s retail GSD chain, Winroc, in the U.S. And with
the appointment of a new vice-president and general manager in the U.S. (see
“People on the move”), Hancock says the U.S. business can grow to
US$1 billion over the next two years.

 

_____________________________________________

 

BEETLE ADDS TO LUMBER WOES IN BRITISH COLUMBIA

 

A massive infestation of beetles in 7 million hectares
of B.C. forest could severely affect industry bottom lines. More than $4 billion
worth of timber may be cut in a measure to control damages. Analysts say the
threat that so much wood could suddenly become available for sale is likely
to put pressure on lumber prices.

 

This is an
immense problem because of the magnitude of the infestation,” said Greg
Jadrzyk, president of the Northern Forest Products Association (NFPA), which
represents about 55 operations in central B.C.

 

Industry officials are concerned that the tiny black
beetle will affect producer profits by increasing production costs. They fear
that Japanese buyers will shy away from wood that has an ink-like blue stain
caused by the beetle. Companies with large holdings in the affected area include
Canfor Co., Slocan Forest Products Ltd., Weldwood of Canada Ltd., West Fraser
Timber Co. Ltd., Ainsworth Lumber Co. and Lignum Ltd.

 

NFPA has asked the B.C. government to streamline
harvesting regulations, allowing companies to react quickly to the situation
by harvesting trees in areas where it is deemed necessary.

 

______________________________________________

 

CANADIAN CONSUMERS WILL SHOP CANADIAN … SOMETIMES

 

Canadian consumers feel that home-grown retailers
do a better job than their U.S. competitors, but not by a huge margin. Of those
surveyed, 36% disagreed that U.S. retailers do a better job than their Canadian
counterparts, while 23% agreed and 41% were neutral on the issue. Vancouverites,
the report says, favoured U.S. retailers, while Montréalers were most
likely to support Canadian retailers.

 

These results appeared in Major Market Research Report
2001, a consumer survey conducted by Kubas Consultants in Toronto.

 

In line with this support of home-grown business,
Canadian Tire continues to be the most shopped retailer. It attracts over 90%
of consumers over a one-year period partly as a result of its large coverage
of the market. Rounding out the top stores are Zellers, Shoppers Drug Mart,
Sears, The Bay and Wal-Mart.

 

Kubas Consultants is expecting $289.6 billion in
retail sales for 2001. This 4.5% gain compares with the 6.4% growth recorded
in 2000. Projected retail spending across the country registers positive expectations.
All of the major city centres surveyed had high percentages of respondents who
expect to increase their spending in retail stores this year.

 

Consumer confidence is sharply down: the number of
respondents saying that things are getting better is at its lowest in the survey’s
five-year-long history. Personal economic circumstances, however, are improving
for approximately 40% of consumers surveyed.

 

__________________________________________________

 

COMPANIES IN THE NEWS

 

Richelieu Hardware has announced a two-for-one split
of its outstanding common shares, effective July 20, 2001. The specialty hardware
distributor, which sells to both furniture/kitchen cabinet manufacturers and
hardware retailers, has been growing aggressively through expansion in recent
years.

 

Tim-BR-Marts Ltd. and LBMX have formed a partnership
to develop a private, web-based trading community for the exchange of electronic
documents between the Tim-BR-Marts head office and its trading partners. The
program will be implemented in two phases, starting with the exchange of electronic
invoices from suppliers to the Tim-BR-Marts head office. In the second phase,
dealers will be able to issue electronic P.O.s directly to suppliers.

 

Wal-Mart Stores Inc. has held on to its position
as the largest retailer in the U.S., according to a new poll. Food retailer
Kroger stayed in the number-two spot, while Home Depot jumped to number three,
beating out Sears, Roebuck and Co.

 

Do it Best Corp. has entered into an exclusive partnership
with MRM Inc. to give Do it Best members access to products within MRM’s
Floor To Ceiling franchise. This includes an expanded selection of home décor
products such as flooring, kitchen cabinets, bath vanities, wall coverings,
and other products from major, national-brand manufacturers.

 

Bowater Inc. and Alliance Forest Products Inc. have
received requests for additional information in connection with the announced
acquisition of Alliance by Bowater. The companies still expect to complete the
transaction within 30 days after compliance of the request.

 

Canada’s Trade Ministry filed 250,000 pages of evidence
last week in the U.S. countervailing duty case against the Canadian softwood
lumber industry. Canada wants free trade in softwood lumber, used mainly in
home building, where annual exports reach about $10 billion. Ottawa accuses
the United States of protectionism in trying to prevent the free flow of wood
under the North American Free Trade Agreement.

 

Lowe’s Cos. has added the full line of Amana appliances
to its appliance department. Nearly 700 Lowe’s stores will begin carrying
the Amana products as part of the retailer’s aggressive strategy to expand in
this high-growth area and establish a “house of brands” in appliances.

 

USG Co. has filed for protection under Chapter 11
as a route to solve its asbestos-related litigation. USG has paid out more than
US$450 million to claimants of personal-injury lawsuits, and expects to pay
out another US$275 million in 2001. The company’s subsidiaries, United
States Gypsum, USG Interior and L&W Supply also filed for protection. USG’s
international operations, including CGC Inc., were not included in the filing.
No impact is expected on Canadian operations.

 

Mexican conglomerate Grupo Alfa has closed the sale
of its retail unit, Total Home, to Home Depot Inc. Total Home is the second
largest DIY chain in Mexico, with three stores in the northern industrial city
of Monterrey and one in Mexico City.

 

____________________________________________

 

CANADIAN STOCK WATCH

COMPANY 52-WK HIGH 52-WK LOW CLOSE (FRI)
Canadian Tire 25.20 15.05 25.39
Canfor 16.95 7.65 9.90
Goodfellow 11.00 8.00 8.95
Home Depot 49.74 47.61 45.36
Hudson’s Bay 17.65 12.40 17.40
Lowe’s 64.90 34.25 34.60
Sears Canada 37.25 18.55 21.80
Taiga Forest 10.00 6.80 9.12
West Fraser 36.50 21.00 34.80

 

 

______________________________________________

 

Nothing shames
the human more persistently and eloquently than nature.”

Jonathan
Raban (British writer)

 

_______________________________________________

 

MARKET INDICATORS

 

The value of building permits issued by Canadian
municipalities declined in May to $3.2 billion, says Statistics Canada. This
represents a 0.6% reduction against April due to a drop in building intentions
in the non-residential sector. May’s slide of 10.6% in the value of non-residential
building permits followed a strong advance in April. Industrial construction
intentions dropped for the fourth month in a row in May. Building permits for
housing rose 9.4% from April to $1.7 billion, halting three consecutive monthly
declines.

 

Statistics Canada has reported unchanged department
store sales of $1.64 billion over the April-May period. May’s result follow
two successive months of increases, 0.6% in April and 0.4% in March. The upward
movement that began in the Spring of 2000 has continued despite stable sales
in May. Average department store sales per location totalled $2.24 million.

 

U.S. consumer sentiment rose for a second straight
month in June. The University of Michigan’s consumer sentiment index rose to
92.6 in June from 92.0 in May. The June reading was far above the recent trough
of 90.6 scored in February, its lowest in nearly five years. The preliminary
June reading, released mid-month, was 91.6.

 

______________________________________________

 

PEOPLE ON THE MOVE

 

Pete Welly has been named vice-president for the
North American acoustical business at Allroc Building Products Ltd. and regional
operations manager for the mountain states region. He is located in Salt Lake
City, UT. (403-236-5388)

Don Hoye, president and CEO of TruServ Corp., has
been asked to step down, effective immediately. The company has been dogged
by troubles since it merged with ServiStar in 1997. Accounting errors as a result
of the merger left the co-op with US$
130.8 million
net loss in fiscal 1999. Bill Blagg, a dealer from Texas and chairman of the
TruServ board, has stepped in temporarily as acting CEO. (773-695-5000)

At its annual general meeting this week, MAAX Inc. announced the appointment
of André Heroux as president and CEO. Heroux joined MAAX in 1999 as vice-president
and general manager, operations, and was soon after appointed president and
COO. (418-387-4155)

 

______________________________________________

 

OVERHEARD …

 

… “We have no plans to ally ourselves with
anybody else. We haven’t missed a beat.”

 

Bob Hancock,
vice-president purchasing, sales and marketing for Allroc Building Products,
on his buying group’s departure from the umbrella group, Evergreen Building
Materials, more than three years ago.

 

… “I feel Don Hoye’s personal financial
statement should be made available to the membership. I also feel a re-election
of a new board of directors would clear up some troubled waters. Don’t let Don
Hoye resign without a full and complete accounting of himself. I hope [TruServ
Corp.] can bring in someone with vision and concern for the dealers. They make
the whole thing work. Ask John Cotter, he knew. P.S.: Don should make good on
all the outstanding stock payments before he skips down the yellow brick road.”
— rant from an online chat room for TruServ dealers, where the hot topic
last week was griping about their exiting CEO.

 

* * * * * *

 

BIG NAMES, NETWORKING, AT NEXT

 

HARDLINES MARKETING 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
bev@hardlines.ca
for more info, or call me direct: 416-489-3396. — Michael

(Some sponsorships still available for the event
— call me for details.)

 

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

 

To get our special hotel rate for the Hardlines Marketing
Conference at the Four Points Sheraton, call 1-800-737-3211.

 

______________________________________________

 

* * * * 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

* * * * * *

 

BUSINESS DEVELOPMENT ASSOCIATE:

 

The Canadian Retail Hardware Association, producer
of the Toronto-based Canadian Hardware and Building Materials Show, seeks to
add a Sales overachiever to the Association’s team.

 

Reporting to the Show Manager, you will analyze,
develop and implement sales strategies aimed at securing new Exhibitors. This
will involve both in-office duties and face to face Customer presentations with
senior industry decision-makers. Travelling to regional shows and to the Chicago
NHS show will augment idea development and lead generation. You’ll also
act as a team member at the CHS, ensuring Exhibitor satisfaction.

 

Your background includes a home improvement industry
sales role where your team-based activities have gained you success and respect
from your colleagues. Developing and securing new business and the resultant
benefits attached to over-achievement are your personal motivators.

 

Bilingualism would also be a definite asset.

 

Please contact, in confidence, Wolf Gugler, quoting
file #02-103. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite
300, Don Mills, Ontario M3B 3N7. Phone: (416) 386-1719; fax: (416) 386-1721;
email:
admin@wolfgugler.com

 

* * * * * *

 

BUILDING MATERIALS REPRESENTATIVE:

 

Can-Save, a building materials distributor based
in Barrie, ON is looking for a building material representative to call on all
lumber and building materials retailers in the GTA and Niagara peninsula.

 

Experience is an asset. Contact Larry Koza or Dan
Clements, phone: 800-461-5411; fax: 705-722-1124; email:
lkoza@can-save.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.

 

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

 

______________________________________________

 

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

 

© 2001 by Michael McLarney.

 

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

 

______________________________________________

 

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