Jul. 4, 2001

HARDLINES™

Five years serving Canada’s home improvement industry

July 4, 2000 – Volume vi, #26

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:

* Rona will launch B2B industrial portal

* Shuffle at Home Depot Canada HQ

* Canadian Tire announces western distribution centre

* Mills await strike action in BC interior

* * * * * *

HOTEL
ROOMS AT OUR 5th ANNUAL HARDLINES MARKETING
CONFERENCE:

September
14, 2000. We have a limited number of rooms set aside for this
incredible one-day symposium featuring some of North America’s
leaders in retail! To make your reservation, call the
Eaton
Centre Marriott Hotel:
1-800-905-0667; refer to the Hardlines Marketing Conference and/or
McLarney Communications.

* * * * *
*

Anybody out
there ever a Bonzo Dog Band fan? If so, give me a call or send me a
note! – Michael

* * * * *
*

B.C. MILL
STRIKE NOT EXPECTED TO AFFECT SUPPLY

A strike by
workers in British Columbia’s coastal mills last Tuesday came as a
surprise to an industry that is already plagued by oversupply and low
prices. Some 12,000 BC forest workers went on strike, members of the
Industrial Wood and Allied Workers representing the coastal
operations at 70 companies. Another 20,000 workers in the province’s
interior can go on strike as of Wednesday.

Canfor,
bargaining separately, reached a settlement with its 1,700 workers in
the interior on Friday, quelling fears the action might spread to the
20,000 other forestry workers in the province’s interior. Canfor
forestry workers got a three-year deal that included pay increases of
2% per year and a base rate of $21.94 an hour by the end of the
contract. The agreement also includes pension and benefit
increases.

The strike
action comes on the heels of extensive shut downs announced for the
summer, an attempt by the mills to rationalize the glut of product in
their inventories. Two or three mills are even expected to shut down
altogether before summer is out, suggests one industry insider.

“Nobody has
any idea why they went on strike,” says Doug Butterworth,
vice-president of Taiga Forest Products in Burnaby, BC. He doubts the
interior mills will follow suit, especially after the settlement by
Canfor.

Because the
strike will help rationalize oversupply, it’s actually good news for
the mills. The coastal industry is seriously oversupplied because it
doesn’t have the allowable annual cut enjoyed by other regions, and
the Asian market for green hemlock has dried up
considerably.

The strike
may also boost the rock-bottom prices for lumber that were further
depressed by a poor selling season in the rainy first quarter. During
that time, lumber prices fell as low as US$255 per 1,000 board ft.
from a high of US$410 a year ago. They have since bumped up about
US$10 per board foot following the news of the strike.

“There’s
North American oversupply of product,” Butterworth says. “The best
thing in the world for this industry is if they did go on strike for
three or four weeks.”

Prices of
other wood products are also expected to be affected. “In the past
8-9 weeks we’ve seen prices of sheet goods go up 30-33%, which is
uprecedented,” says Alan Jack, a trader at AFA Forest Products in
Bolton, Ont. “And even if the strike ends quickly, we’ll have
containment on both lumber and sheet goods.”

But, he
adds, because of alternative sources in Alberta and elsewhere, even a
protracted strike will not affect supply dramatically.

HOME
DEPOT CANADA ANNOUNCES SENIOR MANAGEMENT CHANGES

Since the
arrival of a new vice-president from the U.S., Home Depot Canada has
made further changes to its management team in Toronto. Pat Bennett,
formerly vice-president of operations, left last week and has been
replaced by Mike Roy.

Born in
Ottawa, Roy is a 23-year veteran of retail, and has been with Home
Depot for eight years, most recently as a district manager in the
company’s Northwest Division, where he had worked with Eric Petersen.
Petersen came up recently from that division to assume the role of
vice-president of merchandising in Canada.

Bennett’s
departure follows the exit of Jack Hayes in mid-June. Hayes was first
moved over to a position as vice-president of marketing and
logistics, making way for Petersen’s arrival. He left the company
soon after that. He will not be replaced; instead, his duties will be
covered by Petersen.

RONA TO
DEVELOP ONLINE MAINTENANCE AND REPAIR MARKETPLACE

A new
partnership forged by Rona Inc. will enable it to develop an
e-commerce platform for the industrial market. The deal is with
Mediagrif Interactive Technologies Inc., a developer of vertical
business-to-business e-commerce marketplaces.

The two
companies will join to create “Virtual Maintenance Repair Operations”
&endash; www.vmro.com
&endash; which, it claims, will be Canada’s first portal exclusively
for trading among industrial and institutional maintenance companies.
Besides simple buying and selling, the concept will offer users a
highly customized vertical marketplace for their
maintenance/repair/operations (MRO) needs.

The site
will feature an integrated database of industrial and institutional
MRO products. It will also offer research, analysis and comparison
tools, as well as extensive customization options specific to each
buyer’s profile. It is expected to be up and running by September
2000.

Under the
agreement, Rona will be responsible for getting various integrated
product databases up and running and ensuring service and delivery of
MRO products through its dealer network of about 500 store locations
in eastern Canada. Mediagrif will supply all the information
technology applications needed to operate the new next-generation
online supply.

CANADIAN
TIRE TO ERECT DISTRIBUTION CENTRE IN WEST

Canadian
Tire Corp. says it will open a new distribution centre in Calgary’s
southeast end. The agreement involves the purchase of approximately
63 acres of land from the City of Calgary, an agreement conditional
upon city council approval and corporate approvals. If approved, the
500,000-sq.ft. facility will include trailer parking and storage, and
employ up to 180.

Canadian
Tire is currently negotiating with an external firm to operate the
facility.

“A new
distribution hub in Calgary allows us to cost-effectively add the
required capacity to support our continued growth, which has
increased nearly $1.5 billion in the past five years alone,” says
Stephen Bachand, CTC’s president and CEO.

Subject to
approvals, construction of the new facility will begin in the fall of
2000, and is scheduled to start operations in the spring of 2002. It
is expected to serve the company’s 125 stores in Western Canada with
increased capacity, better in-stock positions for customers and
reduced product handling and transportation costs.

COMPANIES IN THE NEWS

Canadian
Tire will begin offering its customers Canadian Tire money
electronically on their Canadian Tire credit cards starting this
fall. Customers who pay by cash, debit card or cheque will continue
to receive paper Canadian Tire money, which has been a tradition
since it was conceived by CTC co-founder A.J. Billes in 1958 to
attract shoppers to CTC gas bars. Users can also earn the money on
their Options MasterCard.

Wal-Mart
Canada has entered into an agreement with Canada Post to be the
exclusive retailer for a range of commemorative keepsakes that
celebrate Canada’s heritage. The Canadian collectible items,
developed and supplied by Canada Post, include a Canada Day
Millennium keepsake containing commemorative and postage stamps, and
a medallion from the Royal Canadian Mint.

Selkirk
Canada has moved to new offices: Selkirk Canadian Operations, 375
Green Rd., Stoney Creek, ON L8E 4A5; phone: 905-662-6600; fax:
905-662-5352.

For the
third quarter ended May 31, Richelieu Hardware Ltd. recorded sales of
$51.9 million, up from $43.4 million for the same period a year
earlier, an increase of 20%. This marks the company’s 19th
consecutive quarter of continuous growth. Earnings before income
taxes, interest, depreciation and amortization (EBITDA) rose 26% to
$6.9 million, compared with $5.5 million a year earlier. Net earnings
grew by 32% to reach $3.4 million, up from $2.8 million. Sales for
the first half of the year reached $92.1 million, up 20% from $77.0
million for the first six months of fiscal 1999. EBITDA totalled
$10.9 million, up 24%. Net earnings reached $5.3 million, up 31% from
$4.0 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	13.50
Goodfellow	12.55	8.75	10.00
Home Depot	70.00	35.75	49 ^11/16
Hudsons Bay	23.85	12.50	15.70
Lowe’s Cos.	67.25	40.40	41 ^1/4
Sears Canada	42.50	29.00	34.25
Taiga Forest	14.75	8.90	8.05
West Fraser	41.00	28.00	29.50

(Note: We’ve
taken Cameron Ashley Building Products off the list since trading has
stopped following its takeover by Guardian Industries.)

“If I had
all the money I’d spent on drink, I’d spend it on drink.” – Sir Henry
Rawlinson (From”Rawlinson End,” a creation of Vivian Stanshall of the
Bonzo Dog Band*)

* If there
are any Bonzo Dog fans out there, CALL
ME!

PEOPLE ON THE MOVE

At GE
Silicones, Ed Pchola has been appointed national accounts manager for
the Canadian market. He was formerly marketing product manager for
the consumer business at GE Silicones. He is serving the Canadian
market from GE’s office in Chicago. (518-233-3809)

NOTED

According to
a new study out of the U.S., e-commerce revenues worldwide will reach
almost US$2 trillion, up from an estimated US$132 billion today. The
increase, expected by 2005, will represent just over 5% of the
world’s US$39 trillion global economy by then. The research is part
of an annual study ActivMedia, and part of a five-year examination of
online commerce across the entire spectrum of web
businesses.

MARKET INDICATORS

Nearly two
thirds of Canadian households own their homes, and more than half are
mortgage free, according to CMHC’s latest issue of “Mortgage Market
Trends.” Mortgage payments account for about one fifth of a
household’s disposable income for those who have a mortgage, ranging
from a low of 18% in Saskatchewan to a high of 25% in British
Columbia.

Sales in the
U.S. of existing homes rose 4.3% in May to a seasonally adjusted
annual rate of 5.09 million units, up from 4.88 million units in
April, according to the latest report of the National Association of
Realtors. Last month’s sales rate was 1% higher than the rate of 5.04
million units in May 1999. The rise was due largely to unmet demand
following dips in January and February that left many prospective
buyers competing for few homes on the market in recent months. This
in turn pushed prices higher. However, sales are expected to slow in
the second half of the year. Sales of existing homes constitute about
80% of the overall housing market in the U.S.

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

June 27: WCPN Golf Tournament (Sorry – sold out!). August 15:
Breakfast meeting during the CGTA Show. Featuring the proven
communication methods of Robin Kennedy, vice-president of
Communicare.

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 4, 2000 – Volume vi, #26

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:

* Rona will launch B2B industrial portal

* Shuffle at Home Depot Canada HQ

* Canadian Tire announces western distribution centre

* Mills await strike action in BC interior

* * * * * *

HOTEL
ROOMS AT OUR 5th ANNUAL HARDLINES MARKETING
CONFERENCE:

* * * * *
*

Anybody out
there ever a Bonzo Dog Band fan? If so, give me a call or send me a
note! – Michael

* * * * *
*

B.C. MILL
STRIKE NOT EXPECTED TO AFFECT SUPPLY

“There’s
North American oversupply of product,” Butterworth says. “The best
thing in the world for this industry is if they did go on strike for
three or four weeks.”

But, he
adds, because of alternative sources in Alberta and elsewhere, even a
protracted strike will not affect supply dramatically.

HOME
DEPOT CANADA ANNOUNCES SENIOR MANAGEMENT CHANGES

RONA TO
DEVELOP ONLINE MAINTENANCE AND REPAIR MARKETPLACE

CANADIAN
TIRE TO ERECT DISTRIBUTION CENTRE IN WEST

Canadian
Tire is currently negotiating with an external firm to operate the
facility.

COMPANIES IN THE NEWS

Selkirk
Canada has moved to new offices: Selkirk Canadian Operations, 375
Green Rd., Stoney Creek, ON L8E 4A5; phone: 905-662-6600; fax:
905-662-5352.

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	13.50
Goodfellow	12.55	8.75	10.00
Home Depot	70.00	35.75	49 ^11/16
Hudsons Bay	23.85	12.50	15.70
Lowe’s Cos.	67.25	40.40	41 ^1/4
Sears Canada	42.50	29.00	34.25
Taiga Forest	14.75	8.90	8.05
West Fraser	41.00	28.00	29.50

(Note: We’ve
taken Cameron Ashley Building Products off the list since trading has
stopped following its takeover by Guardian Industries.)

“If I had
all the money I’d spent on drink, I’d spend it on drink.” – Sir Henry
Rawlinson (From”Rawlinson End,” a creation of Vivian Stanshall of the
Bonzo Dog Band*)

* If there
are any Bonzo Dog fans out there, CALL
ME!

PEOPLE ON THE MOVE

NOTED

MARKET INDICATORS

HARDLINES WHO’S WHO:

HARDLINES
INDUSTRY REPORT:

FIFTH
ANNUAL HARDLINES MARKETING CONFERENCE:

THE
WOMEN’S CONSUMER PRODUCTS NETWORK

June 27: WCPN Golf Tournament (Sorry – sold out!). August 15:
Breakfast meeting during the CGTA Show. Featuring the proven
communication methods of Robin Kennedy, vice-president of
Communicare.

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

* * * * * *
*

July3_01

HARDLINES

Canada’s electronic information service for the home improvement industry

July 3, 2001

Volume vii, #27

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Pro Hardware finds growth with disgruntled dealers

* U.S. consumer group opposes latest softwood lumber bill

* Container Store: employee success story

* Wal-Mart starts rolling outlet self-serve checkouts

* GDP remains unchanged in April

* * * * * *

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

* * * * * *

KEEP INFORMED. 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.

* * * * * *

BEAVER MERGER CREATES OPPORTUNITIES

FOR PRO HARDWARE

The purchase of Beaver Lumber by Home Hardware has also opened up some opportunities for new dealers, says Glen Duczek, banner manager for Pro Hardware. “The merger left some Home dealers looking around,” he notes. Sodisco-Howden, which licenses Pro, has picked up five Home dealers since the beginning of the year. Sodisco-Howden has been in discussions with some former Beaver dealers, as well, “and there are some opportunities out there.”

Pro has also attracted 12 new dealers in Atlantic Canada, giving Pro a net gain of 20 dealers since the beginning of 2001.

A big attraction of the Pro banner, says Duczek, is “the growing inability of an independent to go it alone.” Alignment with a national network is vital to their prosperity and that national program is something Pro has been working toward since February 2000.

That’s when Sodisco-Howden announced it would winnow out three of its other banners — Novico, Matexpert and Unitotal — in favour of one national “brand.” Now the Pro store count stands at 800, up from 375.

Sodisco-Howden continues to service — and grow — its Do-it center banner and counts almost 60 stores in that program.

_____________________________________________

SOFTWOOD DISPUTE CONTINUES AS

CANADA’S LUMBER EXPORTS DECLINE

A consumer alliance representing 95% of all lumber consumption in the U.S. (which includes Home Depot, the National Association of Home Builders and the National Lumber and Building Material Dealers Association), has appealed to Congress to block support for bill H.R. 2181 — which would impose mandatory trade restraints in the form of quotas and tariffs on all Canadian lumber going to the U.S. The bill is poised to replace the Softwood Lumber Agreement that expired March 31.

Canada sends about $10 billion worth of softwood lumber south of the border — roughly one third of the U.S. softwood market. But the new bill, which Ottawa charges is protectionist, proposes to roll back imports to 1995 levels. “[The new bill] fails to take into consideration the growth in U.S. demand for softwood lumber, the growth in the housing market where most of it is used, and the reduction in availability of such lumber in the U.S.,” says a spokesperson for the Association of Consumers for Affordable Housing.

The latest lumber data have been eagerly awaited as an indicator of the impact of the ongoing trade dispute. The U.S. Commerce Department announced that the value of imports of softwood lumber from Canada fell 2.2% in May from April, even though prices were up 9.1%, effectively refuting the U.S. position. Imports totalled US$574.42 million in May, down from US$587.33 million in April.

______________________________________________

THE CONTAINER STORE:

HOW IT KEEPS STAFF HAPPY

Hire the best — that’s the advice of the CEO of The Container Store. “One great employee can easily generate the productivity of three great people,” said Skip Tindell, who co-founded the U.S. retail chain in 1994 devoted to storage and organization products for the home. With that in mind, his company has strived, in an industry plagued by low wages and high turnover, to attract — and retain — the best people possible. “Most retailers gave up on that concept a long time ago.”

Where does he get these employees? Most of them are actually customers. They get paid 50%-100% more than the industry average and even part-timers get full medical and dental benefits. By paying twice the salary, you can get three times the productivity, Tindell said. Ten percent of store sales go to payroll.

Even little things like company discounts have been upgraded for part-time staff. Where once they got a 20% store discount, they now get 40% just like full-time help. And all staff receive 235 hours of training in their first year. The industry average in the U.S., Tindell notes, is around seven.

______________________________________________

COMPANIES IN THE NEWS

The Howden Division of Sodisco-Howden Group has ratified its first contract with unionized workers in its London, ON distribution centre. The Canadian Auto Workers union has signed a three-year agreement. This is the last warehouse in Sodisco-Howden to become unionized.

Alliance Forest Products has announced the 99.7% shareholder vote in favour of selling to Bowater for $1.2 billion. The deal was reached in April. Pierre Monahan, outgoing Alliance CEO, will become a Bowater executive in charge of operations in Québec and New Brunswick. Other Alliance senior managers will stay on with Bowater. The company did not disclose how many of the other 65 employees at head office will remain. Alliance, created seven years ago from four Domtar Inc. mills, had sales of $1.1 billion in 2000.

AWARD is the latest buying group to enter a partnership with LBMX to develop a private electronic trading community for the exchange of electronic documents between AWARD head office, members and trading partners. London, ON-based LBMX specializes in web-based EDI and online customer service technology.

Canadian Tire has broken ground on a new store in Thunder Bay, ON that is slated to open in Spring 2002. The 107,000-sq.ft. Type “A” Next Generation store will be the first in Thunder Bay Centre, a retail plaza designed for big box retail formats. It will replace a 16,000-sq.ft location on the other side of town. Bob Nearing, currently manager of the Thunder Bay Canadian Tire store, will move in as owner/manager of the new location.

Wal-Mart Canada has announced plans to open four new stores in communities across the country. Construction will begin in Cold Lake and Spruce Grove, AB in the Fall of 2001. Langford, BC and Summerside, PE will also see new Wal-Mart Stores by the end of the year.

HomeBase Inc. opened seven new House2Home décor superstores in Fresno, San Diego and California. The openings are part of the company’s strategy to reinvent itself from a home improvement warehouse to a specialty high-end décor retailer. This batch of openings marks the third phase in House2Home’s planned rollout of 37 stores, and brings the total to date to 29.

Canadian Tire has expanded its leisure line-up with two exclusive product lines from camping gear manufacturers. The Coleman Xcursion line extends the retailer’s traditional offers to target more committed outdoor enthusiasts. Woods Canada is introducing its own line designed for family camping.

Wal-Mart’s testing of various self-checkout systems has had favourable results with consumers. The company is now using four different types of the self-checkouts at some of its stores, and anywhere from 21% to 30% of the stores’ volume is funnelled through them.

____________________________________________

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
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

______________________________________________

“It is easy to understand God as long as you don’t try to explain Him.”

— Joseph Joubert (1754-1824)

_______________________________________________

MARKET INDICATORS

Canada’s gross domestic product was unchanged in April, says Stats Canada, after rising only 0.1% in March. Investment in gas and oil exploration was the biggest cause of the increase, while strikes decreased the public sector. Manufacturing also declined slightly, largely because of 50.7% less demand in the telecom industry. Output in the construction industry fell for the second consecutive month, this time by 0.7%.

Manufacturers’ prices, as measured by the Industrial Product Price Index (IPPI), grew 2.7% from May 2000 to May 2001, compared with a year-over-year gain of 2.9% in April, according to Stats Canada. The IPPI was 131.0 in May, up from a revised level of 130.6 in April. Price increases for motor vehicles, chemicals and lumber also contributed to the annual rise in manufacturers’ prices.

Declining mortgage rates and rising household incomes in the first half of 2001 led to the most significant reduction in home ownership costs since 1996, according to Royal Bank’s 2001 Housing Affordability Index. The index, which measures the proportion of pre-tax household income needed to service the costs of owning a home in Canada, declined from an average of 32.9% in the second half of 2000 to 32% in the first quarter and an estimated 29.8% in the second quarter of this year.

______________________________________________

PEOPLE ON THE MOVE

Ace Hardware Canada has named Chris Henwood as new paint/home decor buyer, effective July 16. Henwood is in fact a former buyer for Ace Canada who was most recently with Woods in a marketing position. (905-475-1188)

Wal-Mart Stores in the U.S. has appointed Thomas Hyde to executive vice-president. Hyde was formerly senior vice-president and general counsel for Wal-Mart, overseeing the legal activities of the corporation. He will report to Lee Scott, president and CEO. (905-821-2111)

* * * * * *

IN MEMORIAM:

Paul Hill, long time employee of Lansing Buildall, passed away peacefully in his home on June 25 after a long illness. He spent nine years at Lansing, where he served as director of the company’s commercial/retail sales division. While there, he developed a professional estimating department, a commercial sales team and lumber management business, and was instrumental in the development of Lansing’s export business and a newsletter for its contractor customers. Smith was known for his strong leadership and sales management skills, and for his unflagging positive attitude. He is survived by his wife Sharon, and his children Nicole and Andrea.

______________________________________________

NOTED …

Can-Save will hold its 10th annual Summer Booking Expo August 21, 2001. This dealer appreciation day runs from 9 a.m. to 9 p.m. and includes non-stop food, arcade games, and trade show that finishes off with a Beatles tribute band. RSVP by June 30 for a special gift at 1-800-461-5411.

* * * * * *

OVERHEARD …

“Even the most creative retailer has to be open to change.”

— Kip Tindall, president and CEO of the Container Store, on the challenges of keeping staff happy, productive and loyal. He spoke at the recent Retail Council of Canada annual Convention.

* * * * * *

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 overachievement 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 Eugenia Canas 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

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 3, 2001

Volume vii, #27

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Pro Hardware finds growth with disgruntled dealers

* U.S. consumer group opposes latest softwood lumber bill

* Container Store: employee success story

* Wal-Mart starts rolling outlet self-serve checkouts

* GDP remains unchanged in April

* * * * * *

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.

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

* * * * * *

KEEP INFORMED. 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.

* * * * * *

BEAVER MERGER CREATES OPPORTUNITIES

FOR PRO HARDWARE

Pro has also attracted 12 new dealers in Atlantic Canada, giving Pro a net gain of 20 dealers since the beginning of 2001.

Sodisco-Howden continues to service — and grow — its Do-it center banner and counts almost 60 stores in that program.

_____________________________________________

SOFTWOOD DISPUTE CONTINUES AS

CANADA’S LUMBER EXPORTS DECLINE

______________________________________________

THE CONTAINER STORE:

HOW IT KEEPS STAFF HAPPY

______________________________________________

COMPANIES IN THE NEWS

____________________________________________

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
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

______________________________________________

“It is easy to understand God as long as you don’t try to explain Him.”

— Joseph Joubert (1754-1824)

_______________________________________________

MARKET INDICATORS

______________________________________________

PEOPLE ON THE MOVE

* * * * * *

IN MEMORIAM:

______________________________________________

NOTED …

* * * * * *

OVERHEARD …

“Even the most creative retailer has to be open to change.”

— Kip Tindall, president and CEO of the Container Store, on the challenges of keeping staff happy, productive and loyal. He spoke at the recent Retail Council of Canada annual Convention.

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MARKETING CONFERENCE:

(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.

Bilingualism would also be a definite asset.

* * * * * *

BUILDING MATERIALS REPRESENTATIVE:

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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

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

______________________________________________

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

by McLARNEYCOM

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

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Jun. 26, 2001

HARDLINES™

Five years serving Canada’s home improvement industry

June 26, 2000 – Volume vi, #25

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:

* Sodisco-Howden buys Weber’s retail division

* EXPO stores here part of 3-year plan, says Home Depot president

* Johns Manville to merge with investor group

* LP and Slocan form OSB joint venture

* Canfor modernizes its Grande Prairie mill

* * * * * *

HOTEL
ROOMS AT OUR 5th ANNUAL HARDLINES MARKETING
CONFERENCE:

* * * * *
*

SODISCO-HOWDEN
BUYS WEBER’S RETAIL DIVISION

Sodisco-Howden
Group has signed a letter of intent to acquire the hardware related
assets of Weber Supply’s Retail Sales Division in Kitchener, ON. The
transaction will be paid in cash and is subject to due diligence.
Since 1855, Weber has specialized in selling residential and
architectural hardware to lumber yards in Ontario.

The company
went beyond the provincial border last summer, when St. John,
NB-based Thornes exited the retail business in Atlantic Canada. Weber
was one of the companies that developed a sales team in that market
in an attempt to fill the void. But despite this initiative and
progressive online ventures, including an e-catalogue with the Castle
Building Centres group, Weber’s retail business has gradually shrunk
over the years, from as high as $30 million to an estimated $10
million.

The big box
battle that’s heating up in Ontario will continue to accelerate the
consolidation of Weber’s dealer base, says David Weber, president of
Weber Supply. For the sake of both the business and the people in the
retail division, he says the timing was good to make the deal with
Sodisco-Howden.

He adds that
the the company had been in talks with Tony Molluso, CEO of
Sodisco-Howden, for some time before the death of David’s father and
company chairman, Jack Weber, on May 2. Even though Jack had a
special place in his heart for the retail division, which was the
foundation of the Weber company 145 years ago, he was “onside with
the deal,” says David Weber.

Despite the
shrinking customer base in Ontario, the business has remained steady
due to new business in Atlantic Canada, says David Weber.
Sodisco-Howden picks up five sales people in Ontario and four down
east. The deal takes one more competitor out of the marketplace for
Sodisco-Howden, and strengthens its presence in Central and Eastern
Canada. The sale is expected to close mid-July. Weber will continue
with its industrial division, Weber Construction Products Group,
which has 13 distribution centres in Ontario, Manitoba and
Saskatchewan, and estimated sales in excess of $100
million.

HOME
DEPOT PRESIDENT OUTLINES CANADIAN EXPANSION

Home Depot
will double its number of stores worldwide within the next 3* years,
according to Arthur Blank. But, he adds, it’s NOT talking with French
retailer Castorama.

Blank was
drawn to Canada last week to speak at the annual convention of the
Retail Council of Canada. The company currently has 980 stores in
North and South America, including 56 in Canada. Blank says that
number will reach 1,900. He confirmed Canadian president Annette
Verschuren’s statements in an earlier interview with Hardlines that
110-120 of them will be erected in this country
eventually.

But other
store formats will take a while to get here. Home Depot has announced
it will expand both its Villager’s Hardware and EXPO store formats in
the U.S., but no date has been set for a Canadian introduction.
However, Blank said the EXPO stores are part of a three-year plan for
this country, where he expects as many as 20. Two more Villager’s
Hardware stores will be added to the two inaugural stores in New
Jersey, where they will be scrutinized until the end of this year
before a rollout is approved.

Fuelling
Home Depot’s expansion is 21%-22% annual growth, a figure being
matched or bettered by the Canadian division. However, Blank told me
that expansion in Europe at this time does not include any imminent
acquisitions. “We have not had any conversations with Castorama,” he
said.

He also said
growing contractor sales in Canada is important, although the DIYer
remains Home Depot’s base customer. Contractor sales company-wide are
about 35% of overall sales, while Canada’s are closer to 30%. The
introduction of a “pro initiative,” already in six stores in Canada,
offers more focused services to contractors.

JOHNS
MANVILLE TO MERGE WITH INVESTOR GROUP

In a deal
valued at approximately US$3 billion, Denver, CO-based Johns Manville
Corp. has entered into a definitive merger agreement with an investor
group led by Hicks, Muse, Tate & Furst Inc. and Bear Stearns
Merchant Banking. The investor group will provide approximately
US$565 million in equity capital and has received commitments for
senior and subordinated debt financing amounting to US$2.35 billion
through affiliates of Bear, Stearns & Co. Inc. The transaction is
expected to close before the end of the year, subject to various
conditions, including receipt of financing and shareholder and
regulatory approvals.

Under the
terms of the agreement, which was approved by the company’s board of
directors, JM’s public shareholders will receive, for each share of
JM stock held, US$13.625 in cash and a 13% pay-in-kind preferred
stock with a liquidation preference of US$2.00. The transaction value
is based on approximately 155 million shares.

The Manville
Personal Injury Settlement Trust, which holds approximately 76% of
JM’s common stock, has agreed to vote its JM shares for the merger,
subject to certain conditions. Following closing, the Trust will hold
approximately 8.5% of the company’s common equity. In addition, JM
has agreed to pay the Trust US$90 million in settlement of JM’s
obligation for future income taxes of the Trust.

The Trust
and members of JM management, including Chairman and CEO Jerry Henry,
will retain an equity stake in the post-merger company.

Johns
Manville is a 142-year-old fiberglass insulation and roofing
manufacturer with sales of US$2.2 billion in 1999. It employs
approximately 9,700 people and operates 56 manufacturing facilities
in North America, Europe and China.

LOUISIANA-PACIFIC
FORMS OSB JOINT VENTURE WITH SLOCAN

Louisiana-Pacific
Corp. has teamed with Slocan Forest Products in a 50-50 joint venture
to build a 700 million-sq.ft. OSB mill in British Columbia. The deal
emerged when both companies were planning to build their own OSB
plants. Instead, they agreed to combine resources, investing $200
million to form a new company called Slocan-LP OSB Corp. The new mill
will be located in the Fort St. John area, designed as a low-cost
operation that will meet long term market demand both in North
America and in Asia.

Ike Barber,
chairman of Slocan Forest Products, will serve as president of the
new company.

Following
completion of the environmental assessment process, construction of
the new mill is expected to be completed within 12-18 months. The
company anticipates the creation of more than 500 direct jobs in
manufacturing and forestry related activities. An estimated 750
indirect jobs during construction will also be created. The project
is expected to contribute more than $110 million annually to the
local economy.

ONLINE
RETAILERS FEAR U.S. COMPETITORS

According to
a new study to be released last week by The Boston Consulting Group
and Retail Council of Canada, Canadian retailers are focused largely
on the domestic market, earning 96% of revenues from Canadian
consumers. The Canadian Online Retailing Report, which is based on
first quarter survey responses from 66 Canadian online retailers,
suggests that online retailers need to act quickly to stay ahead of
U.S. competitors.

Canada
stands second only to Sweden among developed countries in Internet
adoption, and well above the U.S. However, while Canadians have
embraced the Internet, both consumers and retailers have yet to fully
adopt online retailing. A key perception, widely held by study
participants, is that domestic online players are not their primary
competition. Nearly half the retailers surveyed perceive U.S. online
retailers as their primary competitors, followed by Canadian online
retailers (29%) and traditional Canadian retailers (19%).

COMPANIES IN THE NEWS

For the
second quarter ended April 30, 2000, Matco Ravary achieved sales of
$13.6 million, up 10% over $12.3 million for the corresponding period
of the previous fiscal year. Net earnings totalled $98,828, compared
with $333,496 for the second quarter of 1999. Sales for the first
half of the fiscal year rose 10% to $25.2 million, compared with
$22.9 million for the same period last year. The net loss amounted to
$94,036, compared with $322,631 for the six months ended April 30,
1999.

Canfor Corp.
has completed a $22-million modernization project for its Grande
Prairie sawmill. The project is expected to increase lumber
production at the 11-year-old plant by 14% to 25 million board feet
per year, while processing the same amount of logs, and to shave $4.5
million off Canfor’s operating costs.

Revy Home
& Garden really did open its fourth store in the GTA on Saturday,
this one in Scarborough. The 150,000-sq.ft. outlet, which employs
250, had both entrances blocked by picketers who protested the use of
non-union out-of-province workers to erect the store.

Rona Cashway
has renovated its stores in Exeter, Forest, Ilderton, Seaforth and
Zurich, ON. The former Do-it centers, purchased by Cashway just
before it was in turn bought up by Rona, feature new store layouts
with expanded assortments of hardware and LBM.

Canadian
Tire opened a new “next generation” store last Thursday, this one in
Ajax, ON. The 85,000-sq.ft. store has 53,000 sq.ft. of
retail.

Home Depot
Inc. plans a major expansion of an in-store financing program for
home improvement loans to its DIY customers. The loan program is
currently being tested in 65 stores and is expected to be rolled out
to all Home Depot and Expo stores in Canada and the U.S. Credit lines
of up to $30,000 will be available. In-store approvals were pioneered
by the AWARD buying group in Atlantic Canada

two years
ago and other groups, including Castle and Tim-BR-Mart, have been
working on programs of their own.

Sears,
Roebuck and Co. has launched an appliance parts and accessories
website for contractors, builders and property managers who buy in
volume. The site – www.spdcommercial.com
– offers businesses access to more than 4.2 million parts from over
400 manufacturers and includes owner’s manuals for most major brands,
including Sears’Kenmore brand, Whirlpool, Amana, Kitchen Aid, Maytag,
Briggs & Stratton and Black & Decker.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.31	7.25	18 ^5/16
Canadian Tire	46.00	19.10	22.50
Canfor	19.25	4.25	14.00
Goodfellow	12.25	7.50	9.50
Home Depot	70.00	35.75	48
Hudsons Bay	23.85	12.70	16.60
Lowe’s Cos.	67.25	40.75	42 ^1/8
Sears Canada	42.50	29.00	35.80
Taiga Forest	14.75	8.90	8.90
West Fraser	41.00	28.00	30.00

“Is life not
a hundred times too short for us to bore ourselves?” – Friedrich
Nietzsche (1844-1900)

PEOPLE ON THE MOVE

Bob
Schippanoski at Honeywell sent me an e-mail asking for help to track
down a former colleague, Ken Gamble. “I worked with him at Amerock
from 1985-1988. He and I both left Amerock at about the same time.
Ken went to Feeney Manufacturing, which I believe was later acquired
by Knape & Vogt. I know he went to the U.S. operations for a
while and then came back to Canada to run the Feeney operation before
K&V acquired them. I am sure he is still kicking around the
industry …” If anyone can help Bob out, please call him at:
508-490-7184 or email: bob.schippanoski@honeywell.com

OVERHEARD…

“The most
important thing we’ve sold people on is the confidence to take on
projects to improve their homes.” – Arthur Blank, chairman of The
Home Depot Inc., during his presentation at last week’s annual
convention of the Retail Council of Canada.

MARKET INDICATORS

The consumer
price index increased 2.4% in May, compared with the same month a
year earlier, according to Stats Canada. Higher prices for energy
remain the largest contributor to the index’s annual increase.
However, excluding energy, the cost of goods and services to
consumers went up 1.3%. The CPI increased 0.5% from April to
May.

UNDERSTANDING THE CANADIAN MARKET:

Seminar and reception for foreign consulates, international trade
offices, commercial services and potential importers: June 28, 2000,
in Toronto. Presented in partnership with the Canadian Hardware and
Building Materials Show. If you’re one of the above and didn’t get an
invite, call us!

HARDLINES
WHO’S WHO:

HARDLINES
INDUSTRY REPORT:

FIFTH
ANNUAL HARDLINES MARKETING CONFERENCE:

THE
WOMEN’S CONSUMER PRODUCTS NETWORK

June 27: WCPN Golf Tournament (Sorry – sold out!). August 15:
Breakfast meeting during the CGTA Show. Featuring the proven
communication methods of Robin Kennedy, vice-president of
Communicare.

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

* * * * * *
*

HARDLINES™

Five years serving Canada’s home improvement industry

June 26, 2000 – Volume vi, #25

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:

* Sodisco-Howden buys Weber’s retail division

* EXPO stores here part of 3-year plan, says Home Depot president

* Johns Manville to merge with investor group

* LP and Slocan form OSB joint venture

* Canfor modernizes its Grande Prairie mill

* * * * * *

HOTEL
ROOMS AT OUR 5th ANNUAL HARDLINES MARKETING
CONFERENCE:

* * * * *
*

SODISCO-HOWDEN
BUYS WEBER’S RETAIL DIVISION

HOME
DEPOT PRESIDENT OUTLINES CANADIAN EXPANSION

Home Depot
will double its number of stores worldwide within the next 3* years,
according to Arthur Blank. But, he adds, it’s NOT talking with French
retailer Castorama.

JOHNS
MANVILLE TO MERGE WITH INVESTOR GROUP

The Trust
and members of JM management, including Chairman and CEO Jerry Henry,
will retain an equity stake in the post-merger company.

LOUISIANA-PACIFIC
FORMS OSB JOINT VENTURE WITH SLOCAN

Ike Barber,
chairman of Slocan Forest Products, will serve as president of the
new company.

ONLINE
RETAILERS FEAR U.S. COMPETITORS

COMPANIES IN THE NEWS

Canadian
Tire opened a new “next generation” store last Thursday, this one in
Ajax, ON. The 85,000-sq.ft. store has 53,000 sq.ft. of
retail.

two years
ago and other groups, including Castle and Tim-BR-Mart, have been
working on programs of their own.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.31	7.25	18 ^5/16
Canadian Tire	46.00	19.10	22.50
Canfor	19.25	4.25	14.00
Goodfellow	12.25	7.50	9.50
Home Depot	70.00	35.75	48
Hudsons Bay	23.85	12.70	16.60
Lowe’s Cos.	67.25	40.75	42 ^1/8
Sears Canada	42.50	29.00	35.80
Taiga Forest	14.75	8.90	8.90
West Fraser	41.00	28.00	30.00

“Is life not
a hundred times too short for us to bore ourselves?” – Friedrich
Nietzsche (1844-1900)

PEOPLE ON THE MOVE

OVERHEARD…

MARKET INDICATORS

UNDERSTANDING THE CANADIAN MARKET:

HARDLINES
WHO’S WHO:

HARDLINES
INDUSTRY REPORT:

FIFTH
ANNUAL HARDLINES MARKETING CONFERENCE:

THE
WOMEN’S CONSUMER PRODUCTS NETWORK

June 27: WCPN Golf Tournament (Sorry – sold out!). August 15:
Breakfast meeting during the CGTA Show. Featuring the proven
communication methods of Robin Kennedy, vice-president of
Communicare.

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

* * * * * *
*

June25_01

HARDLINES™

Canada’s electronic information service for the home improvement industry

June 25, 2001

Volume vii, #26

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Newest Home Depot features small appliances, etc.

* CHS 2002 will feature décor “show within a show”

* McDiarmid Lumber moves into gypsum supply

* Alliance to hold meetings in conjunction with Hardlines Conference

* Retail sales creep up in April

* Wal-Mart gets hit with U.S. class action suit

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MARKETING CONFERENCE:

(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.

* * * * * *

THE HARDLINES QUARTERLY REPORT

Get the trends. The numbers. The research. The insights.

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 to HQR today!

Contact: Nancy Wright, Circulation Manager.

Phone: 416-489-3396

email: nancy@hardlines.ca

(or order at https://hardlines.ca/html/order.html

* * * * * *

ARE YOU UP ON OUR DAILY NEWS?

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

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

* * * * * *

THE SOFTER SIDE OF HOME DEPOT:

WOMEN, TOWELS AND BEDDING

Home Depot Canada’s 73rd store opened last week in mid-Toronto with a distinctly softer approach in a number of departments. Called the “Yorkdale” store for its proximity to the upscale shopping mall of the same name, it features a more boutiqued approach to décor departments, and more emphasis on installed sales of everything from flooring to window treatments to storage systems.

Those boutiques include towels, bedding, linens and “soft” wallcoverings, indicating a direction toward softer DIY and a more committed focus on the female shopper. Also new for the Yorkdale store: a selection of small appliances. “We had 1.2 million transactions in 72 stores last week,” says Home Depot president Annette Verschuren. “This is a captive audience. We want to offer them as wide a range of products as possible.”

The 113,000-sq.ft. store sits on 10 acres and has 550 parking spots. It opens into lower sight lines with emphasis on the kitchen and bath design centre in the middle of the store, flanked by blinds and drapes, with floor coverings and lighting to the far right. To the left, the tool corral has been opened up and is three aisles wide instead of two, with a wider, more open looking entrance. Locksets, key cutting and some miscellaneous hardware have all been added to the corral.

Racking is lower at the front of the store in an effort to increase sight lines to the back, with 12-racking the norm for most of the store. Sixteen-ft. racking remains in the back, where commodities (e.g., bagged concrete and insulation) are stacked high.

While vying for the female shopper, Home Depot continues to promote the “harder” side of DIY sales. A tab-sized flyer announcing the grand opening of the new store features a full back page ad promoting installed sales. Verschuren says there’s tremendous potential for this segment of the business, especially kitchen and bath and floorcovering installations, which are not subject to seasonal ups and downs. “They’re going through the roof — and they’re year round,” she says.

______________________________________________

ALLIANCE TIES IN BUYER MEETINGS

WITH HARDLINES CONFERENCE

As excitement mounts for the upcoming Hardlines Marketing Conference on September 13, 2001 (who writes this stuff, Mel Lastman? — MM), other groups are turning to the event to anchor their own activities. Alliance International LLC, which comprises Home Hardware, Rona Inc. and Do it Best Corp. in the U.S., has decided to move its semi-annual purchasing meetings to coincide with the Conference in Toronto.

The meetings, involving the Alliance’s senior purchasing management team, were originally going to be held during the National Hardware Show in Chicago in August, but, says Alliance general manager Greg Thomas, the group decided to hold the get together in the day before the Hardlines Marketing Conference.

______________________________________________

CHS INTENDS TO BOOST DÉCOR AND SEASONAL

Next year’s Canadian Hardware Show will build on its partnerships with the Paint & Decorating Retailer Association and the Lumber and Building Materials Association of Ontario to offer more décor and seasonal products — something retailers are demanding, says CHS show manager Joe Edwards.

This will mark the PDRA’s second year affiliated with CHS, during which the association, which represents North American paint and décor dealers, will introduce a Décor Showcase within CHS’s Home Trends & Décor area. This “show within a show” will feature a separately identified area consisting of more than 65 booths dedicated strictly to paint and sundries.

In addition, the LBMAO will run its annual convention in conjunction with CHS for the third year.

CHS runs February 3-5, 2002 at The National Trade Centre, Exhibition Place, Toronto. To register, visit http://www.crha.com/ or call 1-800-268-3965.

______________________________________________

COMPANIES IN THE NEWS

Sodisco-Howden Group has moved its head office from St. Bruno, QC to: 485 McGill St., 8th floor, Montréal, QC H2Y 2H4; phone: 514-286-8986; fax: 514-286-2911.

McDiarmid Lumber, the six-store chain based in Winnipeg, is increasing its services to the trades with the development of a full-fledged gypsum supply operation. The new operation will include drywall, insulation and steel studs.

Home Outfitters has announced the opening of a new store in Winnipeg later this Summer. The chain, a kitchen and bath concept store operated by the Hudson’s Bay Co., has six stores in Ontario and one in Calgary. Expansion plans for 2001 include nine locations in Southern Ontario, two additional stores in Alberta, two stores in Manitoba and four stores in Québec.

Six female employees of Wal-Mart Stores in the U.S. have filed a federal lawsuit accusing the company of engaging in widespread discrimination against women. It demands compensation, potentially running into several billion dollars, for 700,000 current and former female employees of the retailer. Home Depot was similarly sued in the mid-’90s in a case that was settled for US$65 million plus US$22.5 million in lawyers’ fees. Home Depot did not, however, admit any wrongdoing.

Dekor, a four-store chain co-founded by ex-Home Depot exec Jim Inglis, is closing one of its outlets and stalling the opening of a store in Nashville. However, says Inglis, the other stores are performing well. The high-end home décor and furnishings competes with Home Depot’s EXPO stores and features trendy store layouts, selling everything from wood flooring to drawer pulls. Recently Dekor has offered promotions such as two-for-one deals and 50% off certain selections.

Customers who tire of waiting in line will be able to scan and bag their own purchases with Kmart’s adoption of a new technology by NCR. Kmart expects to have the systems in 1,300 stores by year’s end. Other retailers such as Wal-Mart and Safeway are testing the same systems in a handful of stores, but holding off on aggressive roll-outs.

Newell Rubbermaid Inc. has reached a definitive agreement to sell its Anchor Hocking glass business to Libbey Inc. for US$332 million in cash. Libbey will acquire all of Anchor Hocking’s business in both the U.S. and Canada. The US$216 million company employs approximately 1,900 people and was acquired by Newell in 1987.

____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	24.29
Canfor	16.95	7.65	10.00
Goodfellow	11.00	8.00	9.01
Home Depot	49.74	47.61	50.71
Hudson’s Bay	17.65	12.40	17.05
Lowe’s	64.90	34.25	77.00
Sears Canada	37.25	18.55	21.90
Taiga Forest	10.00	6.80	9.15
West Fraser	36.50	21.00	34.00

______________________________________________

“An adventure is only an inconvenience rightly considered. An inconvenience is only an adventure wrongly considered.”

— G. K. Chesterton”

_______________________________________________

MARKET INDICATORS

Retailers sold $24.2 billion worth of goods, up 1.6% from March. This was the strongest gain since December 1999, when retail sales rose 1.8%. April’s increase followed a 0.4% rise in March and a 0.2% decline in February. Since the spring of 2000, Canadian retail sales have advanced at almost twice the rate seen in the U.S. In April, sales in Canada were 6.8% higher than in April 2000, compared with a rise of 3.6% in the U.S. This recent relative strength in the Canadian retail sector follows a decade during which U.S. retail sales growth was generally stronger than Canada’s.

Volatility was still evident in wholesale trade in April, as sales fell 0.9% to $31.9 billion. The drop follows a 1.8% rise in March. With one exception, since October 2000 wholesale sales have risen one month only to fall again the following month. On balance, overall wholesale sales have edged higher since the start of the year, after having levelled out beginning in mid-2000. Prior to this, wholesale sales were generally on the rise since mid-1998.

Preliminary estimates of the composite index released by Statistics Canada show that household demand for big-ticket items remains the strongest sector in the economy. Spending was boosted by gains in disposable income at the start of the year. Housing continued on its upward trend, and falling vacancy rates, especially for multiple units, suggest more gains may be in store. Furniture and appliance sales continued to grow rapidly. Spending on other durable goods rose, as auto sales received a boost from rebates.

U.S. housing starts fell slightly in May as the housing market showed further signs of slowing. The Commerce Department tracked a 0.4% decrease in May to a seasonally adjusted annual rate of 1.622 million units. Housing starts fell by 28.3% in the Northeast, while they jumped 15.8% in the Midwest. May’s decline in housing starts can be partly attributed to a moderate 0.2 percent decline in single-family homes. Multifamily units rose by 0.7%.

______________________________________________

PEOPLE ON THE MOVE

Westroc Inc. has made changes to its sales and marketing functions. Don Moses is now senior vice-president sales and marketing for North America … effective July 1, Steve Stremecki will be vice-president marketing for North America, based in Mississauga. Stremecki replaces Doug Kissick, who left the company to pursue his own consulting business … David Wall is now Western sales manager based in Calgary; he was formerly district sales supervisor for British Columbia. (905-403-2770)

Dave Martin is no longer general manager of Jennseng’s Canadian power tool division, McCulloch Canada Ltd. No replacement has been named yet. (You can reach him at: 519-821-6046)

______________________________________________

NOTED …

The Retail Council of Canada’s 37th Annual Conference recognized outstanding retail achievement in various categories: Home Depot Canada was awarded Innovative Retailer of the Year for its employee training and for its marketing campaign to launch the company’s entry in Québec. The retailer was also awarded for its costumer service. Sears Canada Inc. was recognized for the redesign of seven eatons department stores, and for its community involvement in heath-related or environmental causes. Zellers received the retail technology award for the implementation of its merchandise system. Canadian Tire Co. Ltd. was awarded for website effectiveness and brand awareness.

______________________________________________

* * * * 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

* * * * * *

WE KNOW THE MARKET AND THE MARKET KNOWS US!

Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.

Find out how Don Flynn and his team at Lenmark Communications can bring innovative solutions to your marketing challenges. Phone 905-475-5222; Fax 905-475-6369. E-mail to dflynn@lenmarkgroup.com <mailto:mdflynn@lenmarkgroup.comail> or visit: http://www.lenmarkgroup.com <http://www.lenmarkgroup.com/>

* * * * * *

BUILDING MATERIALS REPRESENTATIVE:

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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

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

______________________________________________

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

by McLARNEYCOM

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

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

HARDLINES™

Canada’s electronic information service for the home improvement industry

June 25, 2001

Volume vii, #26

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Newest Home Depot features small appliances, etc.

* CHS 2002 will feature décor “show within a show”

* McDiarmid Lumber moves into gypsum supply

* Alliance to hold meetings in conjunction with Hardlines Conference

* Retail sales creep up in April

* Wal-Mart gets hit with U.S. class action suit

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MARKETING CONFERENCE:

(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.

* * * * * *

THE HARDLINES QUARTERLY REPORT

Get the trends. The numbers. The research. The insights.

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 to HQR today!

Contact: Nancy Wright, Circulation Manager.

Phone: 416-489-3396

email: nancy@hardlines.ca

(or order at https://hardlines.ca/html/order.html

* * * * * *

ARE YOU UP ON OUR DAILY NEWS?

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

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

* * * * * *

THE SOFTER SIDE OF HOME DEPOT:

WOMEN, TOWELS AND BEDDING

______________________________________________

ALLIANCE TIES IN BUYER MEETINGS

WITH HARDLINES CONFERENCE

______________________________________________

CHS INTENDS TO BOOST DÉCOR AND SEASONAL

In addition, the LBMAO will run its annual convention in conjunction with CHS for the third year.

CHS runs February 3-5, 2002 at The National Trade Centre, Exhibition Place, Toronto. To register, visit http://www.crha.com/ or call 1-800-268-3965.

______________________________________________

COMPANIES IN THE NEWS

Sodisco-Howden Group has moved its head office from St. Bruno, QC to: 485 McGill St., 8th floor, Montréal, QC H2Y 2H4; phone: 514-286-8986; fax: 514-286-2911.

____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	24.29
Canfor	16.95	7.65	10.00
Goodfellow	11.00	8.00	9.01
Home Depot	49.74	47.61	50.71
Hudson’s Bay	17.65	12.40	17.05
Lowe’s	64.90	34.25	77.00
Sears Canada	37.25	18.55	21.90
Taiga Forest	10.00	6.80	9.15
West Fraser	36.50	21.00	34.00

______________________________________________

“An adventure is only an inconvenience rightly considered. An inconvenience is only an adventure wrongly considered.”

— G. K. Chesterton”

_______________________________________________

MARKET INDICATORS

______________________________________________

PEOPLE ON THE MOVE

Dave Martin is no longer general manager of Jennseng’s Canadian power tool division, McCulloch Canada Ltd. No replacement has been named yet. (You can reach him at: 519-821-6046)

______________________________________________

NOTED …

______________________________________________

* * * * 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

* * * * * *

WE KNOW THE MARKET AND THE MARKET KNOWS US!

Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.

* * * * * *

BUILDING MATERIALS REPRESENTATIVE:

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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?

THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:

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

______________________________________________

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

by McLARNEYCOM

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

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

Jun. 19, 2001

HARDLINES™

Five years serving Canada’s home improvement industry

June 19, 2000 – Volume vi, #24

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:

* Wayne Sales in Harvard

* Sodisco-Howden in Vancouver

* Canadian Tire in more automotive

* Adult Depot in hot water with Home Depot

* Building permits in decline

* * * * * *

HARDLINES
APPOINTMENTS

I am pleased
to announce the following appointments at
Hardlines/McLarneyCom:

In light of
her contribution to the growth of the business, Beverly Allen has
been promoted to Marketing Manager for Hardlines, in addition to her
duties as Business Manager of McLarneyCom.

Nancy Wright
joins us at the World Headquarters as Administrative Assistant for
Hardlines/McLarneyCom. Thanks to your support, our team keeps
growing! – Michael

* * * * *
*

CANADIAN
TIRE VP GETS EXECUTIVE TRAINING

Wayne Sales,
executive vice-president retail at Canadian Tire Corp., has just
returned from an advanced management course at Harvard Business
School in Boston, renewing speculation about his candidacy for the
top job at CTC.

Stephen
Bachand, the current president and CEO, announced earlier this year
that he will retire at the end of 2000.

However, the
decision to send Sales back to school was made some months before
Bachand made his announcement, says CTC. “It doesn’t mean Wayne’s not
a possible candidate,” says Alan Goddard, CTC’s vice-president,
corporate affairs. “But the board is conducting a North America-wide
search and expects a decision sometime later in the
summer.”

The Harvard
courses run from six to nine weeks in length and cost anywhere from
US$30,000-US$45,000.

David
Grubbe, president and CEO of TruServ Canada, took a crash MBA course
at Queen’s University in Kingston, Ont., when he was chosen to run
that company eight years ago. “Normally, when a company spends that
kind of money to send you to one of those things, it’s not to make
you look better,” says Grubbe.

Sales
graduated from his course this past weekend.

SODISCO-HOWDEN
WILL SUPPLY HARDWARE TO WINDSOR PLYWOOD

The
Smith-Barregar division of Sodisco-Howden Group has concluded an
agreement to be dominant supplier of hardware to Windsor Plywood.
Sodisco bought hardware distributor Smith-Barregar in March and
retained its sales staff to service BC.

Surrey,
BC-based Windsor operates 48 franchise building centres and 13
corporately owned outlets. With the exception of two in the U.S., the
stores are in Western Canada. “We have had a strong relationship with
Smith-Barregar for many years,” says Al Wightman, operations manager
for Windsor Plywood. “With the acquisition by Sodisco-Howden, they
are now more strategic to us.”

According to
the Hardlines Who’s Who, Windsor Plywood is one of Canada’s top ten
building centre chains.

COMPANIES IN THE NEWS

Hudson’s Bay
Co. will acquire three former Eaton’s locations, two in Ontario
(Bramalea and Orleans) and the third in Red Deer, AB. That brings the
total number of Eaton’s acquisitions by Hudson’s Bay to
16.

PartSource,
the stand-alone automotive retail concept by Canadian Tire, has
purchased the assets of Drivers/Auto Village, an automotive chain
with nine stores located in Edmonton, Calgary, Saskatoon, Regina and
Moose Jaw. They will be converted to franchises, like the 15 existing
PartSource stores, which are located in Alberta, Saskatchewan and
Ontario. Wayne Scrivens, owner of Drivers/Auto Village, joins the
management of PartSource. Canadian Tire expects to roll out as many
as 200 PartSource stores across the country.

Canadian
Tire opened its latest “next generation” store in Mississauga, ON,
last week. The 80,000-sq.ft. store has 53,000 sq.ft. of retail
(including a 5,000-sq.ft. Kitchen Place) and has an additional
20,000-sq.ft. garden centre. The store replaces a 24,000-sq.ft.
outlet.

ICI Paints,
through its Glidden Paint division, will take over production of the
Ralph Lauren Home line of of paints in an exclusive license agreement
that becomes effective January 1, 2001. Sherwin Williams will
continue to distribute Ralph Lauren paint until that time. Under the
new agreement, Glidden will be responsible for the sales,
distribution and manufacturing of Ralph Lauren paint, while Ralph
Lauren Home will be responsible for the design and marketing.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.31	7.25	18 ^5/16
Canadian Tire	46.00	19.10	22.90
Canfor	19.25	4.25	13.00
Goodfellow	12.25	7.50	11.00
Home Depot	70.00	35.75	49 ^13/16
Hudsons Bay	23.85	12.70	17.00
Lowe’s Cos.	67.25	40.75	43
Sears Canada	42.50	29.00	32.90
Taiga Forest	14.75	9.00	9.50
West Fraser	41.00	28.00	30.80

“A desk is a
dangerous place from which to watch the world.” – John Le
Carré (British diplomat and novelist)

PEOPLE ON THE MOVE

Jack Hayes
has departed from Home Depot Canada, where he was vice-president,
merchandising. No replacement has been named yet. (604-736-8501)

Two Canadian
retailers have been awarded International “Young Retailer of the
Year.” They are Kevin Steckler, co-owner of the True Value hardware
store in Sylvan Lake, AB; and Philip Fynbo, manager of Essex Home
Hardware in Essex, ON. The prize, jointly sponsored by American
Tools, 3M, the American Hardware Manufacturers Association and the
National Retail Hardware Association, will be presented at the NRHA’s
annual convention, which is being held in Canada this year at
Deerhurst Inn in Huntsville, ON, July 23-25.
(317-290-0338)

OVERHEARD…

Home Depot
is feeling the heat in Florida, but not because of the weather.
According to a report in the Globe & Mail last week, it’s “Adult
Depot,” a club in West Palm Beach that not only borrows from the Home
Depot name, but rips off its trademark orange colour and “Homer”
mascot. The only tool in this character’s pouch is a sex toy. The
world’s second largest retailer is suing the club for “degrading” and
“diluting” its trademarks.

MARKET INDICATORS

Building
permits issued by municipalities declined 8.9% in April from March,
according to Stats Canada. A big drop in residential intentions was
the main reason. They declined 15.2% in April compared with March,
while non-residential permits dropped only 0.7%. The value of
building permits for single-family dwellings went down 10.7% to $1.2
billion, the third consecutive monthly decline. Multiple-family
building intentions fell 26.9% to $366 million. However, year over
year, residential building permits were up 11.8% for the first four
months of 2000, compared with 1999.

UNDERSTANDING THE CANADIAN MARKET:

HARDLINES
WHO’S WHO:

HARDLINES
INDUSTRY REPORT:

FIFTH
ANNUAL HARDLINES MARKETING CONFERENCE:

September 14, 2000. An incredible one-day symposium featuring some of
North America’s leaders in retail! Expect about 200 retail and vendor
executives to attend!

THE
WOMEN’S CONSUMER PRODUCTS NETWORK

June 27: WCPN Golf Tournament (Sorry – sold out!). August 15:
Breakfast meeting during the CGTA Show. Featuring the proven
communication methods of Robin Kennedy, vice-president of
Communicare.

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

* * * * * *
*

HARDLINES™

Five years serving Canada’s home improvement industry

June 19, 2000 – Volume vi, #24

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:

* Wayne Sales in Harvard

* Sodisco-Howden in Vancouver

* Canadian Tire in more automotive

* Adult Depot in hot water with Home Depot

* Building permits in decline

* * * * * *

HARDLINES
APPOINTMENTS

I am pleased
to announce the following appointments at
Hardlines/McLarneyCom:

In light of
her contribution to the growth of the business, Beverly Allen has
been promoted to Marketing Manager for Hardlines, in addition to her
duties as Business Manager of McLarneyCom.

Nancy Wright
joins us at the World Headquarters as Administrative Assistant for
Hardlines/McLarneyCom. Thanks to your support, our team keeps
growing! – Michael

* * * * *
*

CANADIAN
TIRE VP GETS EXECUTIVE TRAINING

Stephen
Bachand, the current president and CEO, announced earlier this year
that he will retire at the end of 2000.

The Harvard
courses run from six to nine weeks in length and cost anywhere from
US$30,000-US$45,000.

Sales
graduated from his course this past weekend.

SODISCO-HOWDEN
WILL SUPPLY HARDWARE TO WINDSOR PLYWOOD

According to
the Hardlines Who’s Who, Windsor Plywood is one of Canada’s top ten
building centre chains.

COMPANIES IN THE NEWS

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.31	7.25	18 ^5/16
Canadian Tire	46.00	19.10	22.90
Canfor	19.25	4.25	13.00
Goodfellow	12.25	7.50	11.00
Home Depot	70.00	35.75	49 ^13/16
Hudsons Bay	23.85	12.70	17.00
Lowe’s Cos.	67.25	40.75	43
Sears Canada	42.50	29.00	32.90
Taiga Forest	14.75	9.00	9.50
West Fraser	41.00	28.00	30.80

“A desk is a
dangerous place from which to watch the world.” – John Le
Carré (British diplomat and novelist)

PEOPLE ON THE MOVE

Jack Hayes
has departed from Home Depot Canada, where he was vice-president,
merchandising. No replacement has been named yet. (604-736-8501)

OVERHEARD…

MARKET INDICATORS

UNDERSTANDING THE CANADIAN MARKET:

HARDLINES
WHO’S WHO:

HARDLINES
INDUSTRY REPORT:

FIFTH
ANNUAL HARDLINES MARKETING CONFERENCE:

September 14, 2000. An incredible one-day symposium featuring some of
North America’s leaders in retail! Expect about 200 retail and vendor
executives to attend!

THE
WOMEN’S CONSUMER PRODUCTS NETWORK

June 27: WCPN Golf Tournament (Sorry – sold out!). August 15:
Breakfast meeting during the CGTA Show. Featuring the proven
communication methods of Robin Kennedy, vice-president of
Communicare.

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

* * * * * *
*

June18_01

HARDLINES

Canada’s electronic information service for the home improvement industry

June 18, 2001

Volume vii, #25

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Sexton Group makes inroads into Southern Ontario

* Home Hardware picks up contractor tips from Beaver programs

* Marketing Conference will feature contractor selling tips, employee retention strategies

* Price of new houses rises in April

* * * * * *

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)

* * * * * *

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.

* * * * * *

ARE YOU UP ON OUR DAILY NEWS?

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

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

* * * * * *

SEXTON GROUP MOVES INTO CENTRAL ONTARIO

Winnipeg-based Sexton Group has typically relied on western markets for new members, but the latest dealer to join comes right from the heart of Southern Ontario’s cottage country.

Bay Group Lumber is a new dealer with a strong retail and contractor focus. Sexton met the newcomer through TORBSA, an Ontario buying group and Sexton’s fellow member of the National Alliance buying group. Bay Group lacked TORBSA’s desired emphasis on drywall sales, so it passed the lead along to Bob Mondy, Sexton’s general manager.

“We are looking at dealers in Southern Ontario now,” Mondy says. In the past, he admits, Sexton has stayed away from that market in tacit recognition of the regional focus of other groups. “But as others are getting aggressive in the West, we’ve decided there’s an opportunity for us there.”

Until now, Sexton’s penetration of Ontario had only extended about 130 miles east of Thunder Bay, with Marwood Building Supplies in Manitouage. Bay Group Lumber is one of nine new members signed by Sexton Group so far this year. (For a full listing of the Sexton Group’s new members, go to hardlines.ca/html/breakingnews.html

______________________________________________

HOME HARDWARE TAPS BEAVER’S

EXPERTISE FOR CONTRACTOR PROGRAMS

Home Hardware has carried over Beaver Lumber’s relationship with its contractors by adopting and revamping some of its contractor programs under the Home banner.

Home Hardware Top Notch, a loyalty points program similar to Club Z from Zeller’s, allows contractors to earn points on payment with rewards available through the Top Notch catalogue. Top Notch was started by Beaver as an invitation-only club to help dealers build customer loyalty among its select contractor customers. A cost is attached to the dealer for each member chosen.

“Home Hardware is dealer-owned,” says Sean Jasmins, project leader, contractor marketing “so the onus is on the dealer to choose that store’s Top Notch members.” There are currently 4,200 Top Notch members.

Another contractor perq carried over from Beaver is the contractor nights, now called Home Pro shows. Following a booth trade show format, these closed-door events draw upon area stores to invite their top contractor customers, along with 60-70 vendors invited by Home’s head office. “We like to remind them that we are a national chain with the ability to bring together a great show,” says Jasmins.

The program includes product knowledge and activities like the Contractor Olympics.

So far this year, Home has held contractor nights in Kelowna, BC, Halifax, and Edmonton. Three more are scheduled for the Fall in Ottawa, London, ON and Barrie, ON.

Jasmins says several more initiatives are in the works to expand Home’s relationship with the contractor market.

______________________________________________

CONFERENCE SESSIONS WILL PROVIDE PRACTICAL

MANAGEMENT KNOW-HOW FOR RETAILERS AND VENDORS

Bottom line results will be the focus of three practical breakout sessions at the next Hardlines Marketing Conference. Staffing, merchandising, and niche customer groups will be targeted in sessions designed to provide the practical tools to improve retail productivity.

Wolf Gugler of Wolf Gugler & Associates and Brenda Dumont of Canadianretail.com will combine their expertise in retail and corporate recruitment in a session on finding and keeping the best employees. The how-to’s of good staffing will include the number one reason why people leave jobs, as well as non-traditional means of finding good employees.

Micheal Ostoforoff, JDA Intactix, will focus on tactical approaches to category and space management. His space and merchandising solutions are designed to reduce labour costs and improve return on investment. His core planogram concepts can be implemented by employees at any level in a retail organization.

Effective communication with the elusive contractor customer is key to profitable relationships with this specialized niche. Robert Koci, editor of Canadian Contractor magazine, will show how to maximize contact across different media. “Staying connected with the contractor market” will chart the strengths and weaknesses of current channels of communication and how to use them effectively.

The Sixth Annual Hardlines Marketing Conference will be held September 13, 2001, at the Four Points Sheraton, Toronto Airport. Keynote speakers include executives from Canadian Tire, Ace Hardware, Rona Retail, American Tool and Turkstra Lumber.

______________________________________________

COMPANIES IN THE NEWS

Home Hardware will finally get a website of its own: www.homehardware.ca <http://www.homehardware.ca/> will be introduced sometime this year and include national advertising, local promotions and catalogue promos. The website will be geared to direct consumer inquiries to their local Home Hardware dealer.

Plans for a fourth store to open in the Winnipeg market sometime over the next 12 months have been stalled indefinitely by Home Depot Canada.

In spite of slower sales in the past year, Wal-Mart Stores Inc. has charted a growth plan that includes squeezing more sales out of its 4,000-plus stores worldwide, fixing and developing its international business and expanding its “super centre” format, which combines general merchandise with a supermarket. The company now operates 952 super centres and wants to add 150-175 per year. The company reported a 4% increase in profits for the first quarter ended April 30, but warned that double-digit earnings growth won’t return until at least the second half of the year.

CORRECTION: I reported the sales at retail in 2000 of ILDC’s members incorrectly last week. They were actually $2 billion. (Shameless plug: To get the whole picture on Canada’s buying groups, check out the latest issue of HARDLINES QUARTERLY REPORT – Michael)

____________________________________________

CANADIAN STOCKWATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	24.10
Canfor	16.95	7.65	10.99
Goodfellow	11.00	8.00	9.01
Home Depot	49.74	47.61	48.90
Hudson’s Bay	17.65	12.40	16.90
Lowe’s	64.90	34.25	72.38
Sears Canada	37.25	18.55	22.00
Taiga Forest	10.00	6.80	9.50
West Fraser	36.50	21.00	35.50

______________________________________________

“No bird soars too high if he soars with his own wings.”

– William Blake (19th century visionary British poet & artist)

_______________________________________________

MARKET INDICATORS

Canadian housing starts fell 4.3% in May, down to 155,000 units, compared with 162,000 units in April. Urban single starts fell 5.5% to an annual rate of 70,200 from 74,300 units the previous month. Urban multiple starts hit 62,600, down 4.4% from 65,500 in April.

The New Housing Price Index rose 0.3% from March to April. Monthly rises occurred in 12 of the 21 urban centres surveyed. The largest advance was in Regina, up 2.0% from March. Higher prices for labour and building materials were among the reasons for the increase.

Consumers faced a 3.9% year-over-year increase in the Consumer Price Index in May. This increase, due largely to escalating energy prices, surpasses April’s rise of 3.6%, and is the largest increase since November 1991. When the energy component is excluded, the increase in prices is lessened. The All-items basket of goods, excluding energy, index rose 2.7% in May, compared with May 2000. This advance is smaller than April’s annual increase of 2.8%, but still higher than March’s 2.3% rise.

______________________________________________

PEOPLE ON THE MOVE

Donald O’Hara has been appointed executive vice-president of the Building Material Retailers Association of Québec (ADMACQ). He formerly worked in franchising for numerous franchisors in Québec, handling everything from site location and negotiation to operations and managing franchise networks. He replaces Gabriel Pollender. (450-646-5842)

Mark Kennedy has joined Sexton Group, handling member services and marketing. He joins Gord Pearson, who handles current dealers and member prospects, mainly in Western Canada. (204-694-0269)

IRLY Distributors Ltd. in British Columbia has elected a new board of directors: Ron Moss of Burg and Johnson Ltd. in Powell River has been elected president … Mark Perry of Kerrisdale Lumber Co. in Vancouver will act as vice-president … Directors are: Andy Anderson, Ashcroft Building Centre, Ashcroft; Milton Grieves, Capital Building Supplies, Prince George; Mark Stenberg, Coldstream Building Supplies, Vernon; and Rex Millard, Nechako Trading Co., Vanderhoof. (604-596-1551)

Domtar Inc. has undergone a restructuring of its management committee in the wake of its acquisition of four Georgia Pacific mills: Monique Martin will head up the lumber business side of the committee as vice-president, wood products. She is also vice-president, sales & marketing, wood products … E. Craig McManus will operate as senior vice-president, forest resources.

______________________________________________

NOTED …

The DIY & Home Improvement Show and GardenExpo will have the backing of some of the biggest buying names in the U.K. industry. Decco, Stax, Mica, Home Hardware, Supa Value, and Fair and Square, as well as Hart and the Home Decoration Retailers Association have joined a steering committee to help develop the event. The move is designed to encourage more independents to visit the show, held January 20-22, 2002, in London, England.

______________________________________________

* * * * *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

* * * * * *

WE KNOW THE MARKET AND THE MARKET KNOWS US!

Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.

Find out how Don Flynn and his team at Lenmark Communications can bring innovative solutions to your marketing challenges. Phone 905-475-5222; Fax 905-475-6369. mailto:dflynn@lenmarkgroup.com

http://www.lenmarkgroup.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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

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

by McLARNEYCOM

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

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

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

______________________________________________

HARDLINES

Canada’s electronic information service for the home improvement industry

June 18, 2001

Volume vii, #25

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Sexton Group makes inroads into Southern Ontario

* Home Hardware picks up contractor tips from Beaver programs

* Marketing Conference will feature contractor selling tips, employee retention strategies

* Price of new houses rises in April

* * * * * *

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)

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MARKETING CONFERENCE:

(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.

* * * * * *

ARE YOU UP ON OUR DAILY NEWS?

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

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

* * * * * *

SEXTON GROUP MOVES INTO CENTRAL ONTARIO

Winnipeg-based Sexton Group has typically relied on western markets for new members, but the latest dealer to join comes right from the heart of Southern Ontario’s cottage country.

______________________________________________

HOME HARDWARE TAPS BEAVER’S

EXPERTISE FOR CONTRACTOR PROGRAMS

Home Hardware has carried over Beaver Lumber’s relationship with its contractors by adopting and revamping some of its contractor programs under the Home banner.

The program includes product knowledge and activities like the Contractor Olympics.

So far this year, Home has held contractor nights in Kelowna, BC, Halifax, and Edmonton. Three more are scheduled for the Fall in Ottawa, London, ON and Barrie, ON.

Jasmins says several more initiatives are in the works to expand Home’s relationship with the contractor market.

______________________________________________

CONFERENCE SESSIONS WILL PROVIDE PRACTICAL

MANAGEMENT KNOW-HOW FOR RETAILERS AND VENDORS

______________________________________________

COMPANIES IN THE NEWS

Plans for a fourth store to open in the Winnipeg market sometime over the next 12 months have been stalled indefinitely by Home Depot Canada.

____________________________________________

CANADIAN STOCKWATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	24.10
Canfor	16.95	7.65	10.99
Goodfellow	11.00	8.00	9.01
Home Depot	49.74	47.61	48.90
Hudson’s Bay	17.65	12.40	16.90
Lowe’s	64.90	34.25	72.38
Sears Canada	37.25	18.55	22.00
Taiga Forest	10.00	6.80	9.50
West Fraser	36.50	21.00	35.50

______________________________________________

“No bird soars too high if he soars with his own wings.”

– William Blake (19th century visionary British poet & artist)

_______________________________________________

MARKET INDICATORS

______________________________________________

PEOPLE ON THE MOVE

Mark Kennedy has joined Sexton Group, handling member services and marketing. He joins Gord Pearson, who handles current dealers and member prospects, mainly in Western Canada. (204-694-0269)

______________________________________________

NOTED …

______________________________________________

* * * * *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

* * * * * *

WE KNOW THE MARKET AND THE MARKET KNOWS US!

Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.

Find out how Don Flynn and his team at Lenmark Communications can bring innovative solutions to your marketing challenges. Phone 905-475-5222; Fax 905-475-6369. mailto:dflynn@lenmarkgroup.com

http://www.lenmarkgroup.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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

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

by McLARNEYCOM

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

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!

______________________________________________

Jun. 12, 2001

HARDLINES™

Five years serving Canada’s home improvement industry

June 12, 2000 – Volume vi, #23

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:

* Not your average wholesaler: Can-Save keeps growing

* Marchands Unis goes online today

* Canadian Tire keeps step with industry trends with new code of
ethics

* Tim-BR-Marts gets a new merchandising director

* Smart homes on the increase

* * * * * *

What’s
new from Hardlines …

UNDERSTANDING
THE CANADIAN MARKET: Seminar and reception for foreign
consulates, international trade offices, commercial services and
potential importers: June 28, 2000, in Toronto. Presented in
partnership with the Canadian Hardware and Building Materials Show.
If you’re one of the above and didn’t get an invite, call
us!

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! Expect about 200 retail and vendor executives to
attend!

* * * * *
*

CAN-SAVE
BUCKS TREND WITH EXPANSION

In an era
which finds the role of the wholesale distributor under greater
scrutiny – and greater threat – Can-Save has flouted conventional
wisdom with its latest expansion. The specialty LBM distributor moved
into new 80,000-sq.ft. facilities last month, with an official ribbon
cutting last Thursday.

Owned by
brothers Larry and Cully Koza, Can-Save grew into 20% larger premises
that will accommodate up to 55% more inventory. But their success has
not been shared by some other regional distributors. Thornes
virtually exited the retail business in Atlantic Canada last spring
to rely almost solely on its industrial sales. On the west coast,
faced with a fewer dealer customers and shrinking sales,
Smith-Barregar sold out to Sodisco-Howden Group just last
month.

For
Can-Save, success has meant steering clear of commodity products.
Instead, the company has grown by selling specialty building
materials that require a more personalized selling touch. With
policies like no minimum order (the average order is $500; two-thirds
of them are under $1,000) and a regional focus on Ontario and the
Maritimes, Can-Save’s own fleet of trucks serves its market more like
milkmen of old than a large-scale wholesaler. Yet the service is less
expensive than direct ship, says Dan Clements, the company’s
marketing manager.

Can-Save did
not ship during the first week of May, during the move. But the
remaining three weeks of the month realized sales of $2.6 million,
25% greater than the entire month of May last year. Total sales in
1999, according to the Hardlines Who’s Who, reached $26
million.

* * * * *
*

MARCHANDS
UNIS LAUNCHES ONLINE ORDERING FOR DEALERS TODAY

Marchands
Unis is unveiling an electronic catalogue for its member dealers
today. The online program, developed in partnership with Ergonet,
allows for access by the Québec-based co-op buying group’s 383
member retailers to more than 30,000 SKUs online, complete with
colour photos and detailed descriptions of the products and real time
updates of inventory.

The
e-catalogue will also attempt to create an online community, which
will allow Marchands Unis and its members to send and receive
messages in the form of newsgroups, surveys, corporate messages, etc.
While the first step is business to business, the program is designed
to evolve into one customers can use, too.

Retail sales
through all of the 50-year-old company’s stores totalled $200 million
in 1999.

* * * * *
*

CTC
PRESENTS CODE OF ETHICS TO BUYERS

Canadian
Tire staff at its Toronto head offices and distribution centre found
themselves presented with a new code of ethics last week. The code, a
standard practice among many large organizations, was the first
update at CTC in recent years. It reinforces the need for respect and
dignity in the workplace and refines policies on new issues such as
Internet use, including sharing of information via e-mail and access
to inappropriate web content, which the company can
monitor.

The code
also outlines policies for speaking with the media, which nobody is
supposed to do without going through channels, but hey, that’s what
makes this job so interesting.

Canadian
Tire’s move is a timely and proactive one that may well help to
mitigate the kinds of behaviour emerging in many U.S. workplaces.
According to a new survey by KPMG, a startling number of U.S.
employees are observing illegal and unethical activity at work. The
study reveals that 76% of 3,075 working adults surveyed nationally
have personally observed violations of law or company standards (such
as misleading customers, employment discrimination, shipping
substandard products, falsifying earnings and mishandling
confidential information) in the past year.

Employees
from consumer markets companies reported the highest level of
observed misconduct – 81% – pointing to the need for more
sophisticated approaches to compliance management. Almost half of
employees (44%) from consumer markets companies reported that the
types of misconduct they observed could result in “significant loss
of public trust” if discovered.

The findings
suggest that compliance messages are, in fact, getting out, but the
messages are not being integrated with individual value systems – or
just coming across as practical. For example, 80% of consumer markets
employees have been provided with information to help them understand
their company’s code of conduct; but 78% just don’t take the
company’s policies seriously. And some of the reasons for cheating
might actually indicate a kind of “battle fatigue” among employees:
73% said they feel the need to cut corners to meet deadlines and 67%
feel pressure to meet overly aggressive earnings goals.

In fact,
when asked for their input on how to improve the situation, only 26%
of employees called for tighter auditing and controls. The lion’s
share of responses underscored the slavish pace maintained by so many
consumer markets companies today: 54% of surveyed employees called
for more time and resources to perform their jobs properly and 40%
called for more realistic performance goals.

* * * * *
*

CONSTRUCTION
OF “SMART” HOMES GROWING IN POPULARITY

“Wired”
homes will continue to increase in popularity says a new study from
Allied Business Intelligence. Interest in wiring the home for digital
services is gaining momentum as homebuilders embrace the concept. The
number of installations in the U.S. grew from 34,500 housing units in
1998 to 83,900 in 1999. Up to 195,700 additional new homes are
projected to get some form of wired system built into it this
year.

Total
revenues from installations more than doubled from US$67 million in
1998 to US$147 million in 1999. Revenues are anticipated to double
again in 2000 and to reach just over US$2 billion by 2005.

According to
the study, most homes do not have the telecommunications
infrastructure to meet emerging data and entertainment needs.

COMPANIES IN THE NEWS

Effective
June 1, Dauphin, MB-based McMunn & Yates has purchased G. K.
Smith & Sons in Eriksdale, MB. The 3,000-sq.ft. yard was a
Tim-BR-Mart member like McMunn & Yates, and has been in operation
85 years serving the Inter-Lake trading area. The purchase took place
following the retirement of owner Ray Smith. Ray’s nephew, Brian
Smith, will continue on as manager of the store.

Revy Home
& Garden opened its fourth store in the Toronto area on Saturday,
this one in Scarborough. The 150,000-sq.ft. outlet employs
250.

Home Depot
will open The Home Depot Floor Store in Plano, TX, on July 13. The
45,000-sq.ft. store will include 33,000 sq.ft. of selling space and a
service installation area. The Floor Store will offer 15,000-plus
products, including carpet, area rugs, ceramic tile, laminates, wood,
vinyl and flooring installation products, as well as blinds and
wallpaper. The store is one of several specialty concepts Home Depot
is testing, including a lighting chain and a plumbing wholesale
business, both which were acquired by Home Depot last year.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.31	7.25	18 ^5/16
Canadian Tire	46.00	19.10	24.00
Canfor	19.25	4.25	13.70
Goodfellow	12.25	7.50	11.00
Home Depot	70.00	35.75	48 ^3/16
Hudsons Bay	23.85	12.70	17.90
Lowe’s Cos.	67.25	40.75	43^3/8
Sears Canada	42.50	29.00	36.20
Taiga Forest	14.75	9.00	9.50
West Fraser	41.00	28.00	33.30

“I think air
pollution will only be dealt with when it affects TV reception.” –
Barbara Gowdy (Canadian fiction writer, speaking at the recent
TED-City Conference in Toronto)

PEOPLE ON THE MOVE

David
MacKenzie has left Tim-BR-Marts Ltd., where he served as
vice-president of merchandising. Effective June 19, Randy Martin will
join the company as director of merchandising. Martin was most
recently a merchant for Home Depot Canada, working in its Vancouver
office, then briefly in Toronto before deciding to move west again to
join Tim-BR-Marts. (604-736-8501)

Dave
Anklith, a veteran Canadian Tire buyer, has left the company. His
duties as housewares buyer have been filled by Mike Santos, who also
oversees storage and organizing products. (416-480-3000)

At Surrey,
BC-based Irly Distributors, the following British Columbia dealers
have been elected to the company’s 2000-2001 board of directors: Ron
Moss of Burg & Johnson Builders’ Supply in Powell River is now
president; Mark Perry of Kerrisdale Lumber Co. in Vancouver becomes
vice-president; and Vern Bigelow of Greenridge Supply in Vernon has
been elected secretary. Other board members are Andy Anderson of
Ashcroft Building Centre in Ashcroft, Milt Grieves of Capital
Building Supplies in Prince George, Rex Millard of Nechako Trading
Co. in Vanderhoof, and Mark Sternberg of Coldstream Building Supplies
in Vernon.

Scott
McKellar has been appointed vice-president of Henkel Canada Corp. and
general manager, LePage Division of Henkel Canada. McKellar joined
LePage in 1998 as director, supply chain. He was previously with
Livingston Logistics and Loctite Canada Inc.

OVERHEARD…

“We sell
more tires and batteries than Canadian Tire.” – Paul Walters,
chairman and CEO of Sears Canada. He was speaking at a recent CHHMA
member breakfast, explaining how Sears is cutting into CTC’s
business. That’s okay: a couple of weeks later Wayne Sales at CTC
explained to me how his company is going after Sears’s business with
more upscale housewares and kitchenware.

MARKET INDICATORS

The new
housing price index, the index of contractors’ selling prices for new
houses, was up 0.2% in April compared with March, according to Stats
Canada. The largest monthly increase was in Halifax (+1.4%). Other
increases occurred in Hamilton (+0.5%) and Montréal (+0.4%).
Calgary was up slightly (+0.1%). The index was up 2.1% year-over-year
from April 1999.

Residential
renovation continues to grow, according to a new report from
Toronto-based Clayton Research Associates. The report anticipates 5%
growth both this year and next, bringing total residential renovation
spending (products and contractor fees) to $25 billion in 2000 and
$26 billion in 2001. Strong sales of existing homes and overall aging
of Canadian housing stock are combining with a growing trend among
consumers to improve their homes, fuelled by an expanding economy.
About two-thirds of the total value of residential renovations is
contract work; the balance is DIY, says the report.

THE WOMEN’S CONSUMER PRODUCTS NETWORK

June 27:
WCPN Golf Tournament (Sorry – sold out!). August 15: Breakfast
meeting during the CGTA Show. Featuring the proven communication
methods of Robin Kennedy, vice-president of Communicare.

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

* * * * * *
*

HARDLINES™

Five years serving Canada’s home improvement industry

June 12, 2000 – Volume vi, #23

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:

* Not your average wholesaler: Can-Save keeps growing

* Marchands Unis goes online today

* Canadian Tire keeps step with industry trends with new code of
ethics

* Tim-BR-Marts gets a new merchandising director

* Smart homes on the increase

* * * * * *

What’s
new from Hardlines …

* * * * *
*

CAN-SAVE
BUCKS TREND WITH EXPANSION

* * * * *
*

MARCHANDS
UNIS LAUNCHES ONLINE ORDERING FOR DEALERS TODAY

Retail sales
through all of the 50-year-old company’s stores totalled $200 million
in 1999.

* * * * *
*

CTC
PRESENTS CODE OF ETHICS TO BUYERS

The code
also outlines policies for speaking with the media, which nobody is
supposed to do without going through channels, but hey, that’s what
makes this job so interesting.

* * * * *
*

CONSTRUCTION
OF “SMART” HOMES GROWING IN POPULARITY

Total
revenues from installations more than doubled from US$67 million in
1998 to US$147 million in 1999. Revenues are anticipated to double
again in 2000 and to reach just over US$2 billion by 2005.

According to
the study, most homes do not have the telecommunications
infrastructure to meet emerging data and entertainment needs.

COMPANIES IN THE NEWS

Revy Home
& Garden opened its fourth store in the Toronto area on Saturday,
this one in Scarborough. The 150,000-sq.ft. outlet employs
250.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.31	7.25	18 ^5/16
Canadian Tire	46.00	19.10	24.00
Canfor	19.25	4.25	13.70
Goodfellow	12.25	7.50	11.00
Home Depot	70.00	35.75	48 ^3/16
Hudsons Bay	23.85	12.70	17.90
Lowe’s Cos.	67.25	40.75	43^3/8
Sears Canada	42.50	29.00	36.20
Taiga Forest	14.75	9.00	9.50
West Fraser	41.00	28.00	33.30

“I think air
pollution will only be dealt with when it affects TV reception.” –
Barbara Gowdy (Canadian fiction writer, speaking at the recent
TED-City Conference in Toronto)

PEOPLE ON THE MOVE

Dave
Anklith, a veteran Canadian Tire buyer, has left the company. His
duties as housewares buyer have been filled by Mike Santos, who also
oversees storage and organizing products. (416-480-3000)

OVERHEARD…

MARKET INDICATORS

THE WOMEN’S CONSUMER PRODUCTS NETWORK

June 27:
WCPN Golf Tournament (Sorry – sold out!). August 15: Breakfast
meeting during the CGTA Show. Featuring the proven communication
methods of Robin Kennedy, vice-president of Communicare.

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

* * * * * *
*

June11_01

HARDLINES

Canada’s electronic information service for the home improvement industry

June 11, 2001

Volume vii, #24

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Ace to try out “virtual” fall dealer show

* CHS changes times to accommodate enhanced education program

* Home Hardware focuses on upscale, female customer

* Home Depot launches 1200th store

* * * * * *

Ace Hardware Canada’s complete buying teams under its two group merchandise managers, Bernie Snider and Dan McMurdy, as well as its merchandising services group, have been named. Click here for full details: https://hardlines.ca/html/featured_event.html

CORRECTION:
Halifax-based Lumbermart is opening a 20,000-sq.ft. store in Dartmouth next week, but it will be a Do-it center, not Ace. The Halifax store has the Pro banner.

* * * * * *

NOW IN ITS 2nd PRINTING! (go to https://hardlines.ca/html/industry_report.html)

“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! Contact Nancy Wright at nancy@hardlines.ca; phone: 416-489-3396 for more information.

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MARKETING CONFERENCE:

(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.

______________________________________________

ARE YOU UP ON OUR DAILY NEWS?

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 HARDWARE KEEPS EYE

ON ITS CORE CUSTOMER

Armed with a profile of its typical customer, the result of recent surveys, Home Hardware is sharpening its focus on its customers. Some of the aspects of that focus comprised a presentation by Paul Straus, vice-president and CEO of Home Hardware, to vendor members of the Canadian Hardware and Housewares Manufacturers Association last week.

The typical Home Hardware customer is 30-plus, lives in a smaller community with their family, does their own home improvements and repairs, and spends more than five times the national average to do so. And almost 50% of those customers are women. That revelation resulted in the change of the company’s slogan from “Home of the handyman” to “Help is close to home.”

Home is also increasing its warehouse space to accommodate more SKUs —and the addition of more than 100 former Beaver Lumber stores. Expansion is currently under way at two of its three distribution centres: 96,000 sq.ft. is being added to the St. Jacobs, ON facility to house more than 60,000 products. Another 100,000 sq.ft. is being added, as well, to the 460,000-sq.ft. Wetaskiwin, AB site. In combination with the Debert, NS facility, Home will have a total of 2 million sq.ft of warehousing by this Fall.

______________________________________________

CANADIAN SHOW ADJUSTS TIMES,

BOLSTERS SEMINARS

The Canadian Hardware & Building Materials Show has adjusted its hours and program for its next edition, which runs February 3rd through 5th, 2002 at The National Trade Centre in Toronto.

An hour has been shaved from both the top and bottom of each day of the 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. The late start has been incorporated to accommodate complimentary onsite educational programs that will run each morning from 8:00 a.m. to 10:00 a.m. (Maybe we can start the Hardlines Breakfast a little later too. I’ll keep you posted! — Michael) The early end to the day will allow more time for attendance at industry social events, especially the CHHMA fund-raising Gala on Sunday and Monday evenings.

Produced by the Canadian Retail Hardware Association in partnership with the Lumber and Building Materials Association of Ontario and the Paint & Decorating Retailers Association, CHS attracts some 18,000 industry registrants from Canada, the U.S. and abroad.

______________________________________________

ACE WILL VENTURE ONLINE WITH

VIRTUAL DEALER SHOW

Ace Hardware Canada will hold a “virtual” show this Fall in place of its regular show. The online presentation of products and services will be made via a new Ace Canada website, scheduled to be up and running by July.

The decision to go virtual, says Dunc Wilson, Ace Canada’s vice-president merchandising and marketing, is admittedly a risky one. “But we’ve spoken to our dealers and to our vendors, and they say it’s the right thing to do.”

Another pitfall of the virtual show is the message it may send to an industry already wary of Ace’s commitment to Canada. Wilson says emphatically that the move is in no way meant to suggest that Ace has any plans to exit the market. In fact, the company has just completed realignment of its buying teams (see “People on the move”).

Wilson adds that all Canadian Ace dealers have access to Ace’s two shows in the U.S.

In an industry already riddled with shows, any move to reduce that commitment, from both the vendor and dealer side, should be a welcome one. D.H. Howden pulled its Spring show seven years ago, moving it in with the Canadian Hardware Show in an effort to reduce the burden on its vendors and to send a signal to the industry that more consolidation would be welcome. However, no other retailer followed suit. Unsatisfied with the outcome of the move, Howden re-instated the show this year.

______________________________________________

COMPANIES IN THE NEWS

Domtar Inc. will acquire four American paper mills from Georgia-Pacific Co. for US$1.65 billion. More than half of Domtar’s output will now come from the U.S., while only one-tenth of its sales will come from lumber. The assets involved are Georgia-Pacific’s stand-alone uncoated fine paper mills at Ashdown, Ark.; Nekoosa and Port Edwards, Wis.; and Woodland, Maine, as well as associated pulp facilities. This sale is the largest divestiture of assets in Georgia-Pacific’s history; its proceeds will be used to repay debt. The sale is expected to be completed early in the third quarter 2001.

Lumbermart in Halifax is opening its second store on June 18, this one in Burnside Park in Dartmouth. The AWARD dealer will fly both the Tim-BR Mart and Ace banners over the new 20,000-sq.ft. store (the original store is 12,000 sq.ft.). Lumbermart does a considerable business in closeouts and discontinued merchandise, which, says president Fred O’Hearn, helps compete against the big boxes in the Halifax market.

Nu-Gro Co. will purchase 70% interest in EroGreen Seeds Inc., in a transaction expected to close during the fiscal fourth quarter. Paul Gross, who founded EroGreen Seeds in October 2000, will retail a 30% interest in the company and continue as the general manager for the business.

Home Depot Inc. celebrated the opening of its 1200th store with the simultaneous opening of three locations in Arkansas, New Mexico, and New York. As part of its plan to open 200 new stores this year, the retailer is rolling out a new location every 43 hours. There are currently 83 stores outside of the U.S.; expansion plans include Canada, Puerto Rico, Chile and Argentina.

Appliance maker Maytag Corp. continues its effort to focus on its core business with the announced takeover of Amana Appliances. The deal will be worth US$325 million — 95% in cash and the remainder in Maytag stock — and is expected to close in the third quarter.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	23.70
Canfor	16.95	7.65	11.20
Goodfellow	11.00	8.00	9.00
Home Depot	49.74	47.61	50.80
Hudson’s Bay	17.65	12.40	16.45
Lowe’s	64.90	34.25	73.57
Sears Canada	37.25	18.55	22.35
Taiga Forest	10.00	6.80	8.00
West Fraser	36.50	21.00	33.50

______________________________________________

“Leadership, like swimming, cannot be learned by reading about it.” — Henry Mintzberg (Canadian educator)

_______________________________________________

MARKET INDICATORS

Building permits were up 4.8% from March to April, reports Stats Canada. However, residential intentions sagged 4.8%, to their lowest level in 12 months. Permits slowed for both the single- and multi-family construction. For the four months from January to April, municipalities issued $13.5 billion in building permits, up 14.0% from the same period of 2000. It was also the highest level for the first four months of any year since 1990, the result of advances in both the residential and non-residential sectors.

Sales by the group of large retailers totalled $6.2 billion in March, an 8% increase over March 2000, and $5.1 billion in February, a 4.2% increase over the same month last year. All major commodity groups recorded year-over-year increases except hardware and lawn and garden products. Health and personal care products and home furnishings and electronics posted the largest gains in March for the group.

______________________________________________

PEOPLE ON THE MOVE

A number of appointments have been made at Ace Hardware Canada: John Penner has been appointed national franchise development manager in addition to his role as Western sales manager. He will oversee development of the Ace franchise business across Canada. Stanley Neumann, John Dawson and Lawrence Anderson will report directly to John in their roles as retail sales consultants … Mark Mossman has been appointed Eastern sales manager, in addition to his role in the Ontario market. Retail sales consultants Warren Smith, Ed Barrett, Steve Dorcas and a rep yet to be named for Nova Scotia will report directly to Mossman … Leon Penchuk has been named design and retail development manager. He will continue as store designer and will also manage Ace’s store merchandisers and the bin taggers … Anne Root has been promoted to sales support consultant, which will include many of the responsibilities of retail services supervisor. (905-475-1188)

Also announced: Ace Hardware Canada’s complete buying teams under its two group merchandise managers, Bernie Snider and Dan McMurdy, as well as its merchandising services group, have been named.

Click here for full details: https://hardlines.ca/html/featured_event.html (or order the latest issue of the Hardlines Who’s Who, available in a couple of weeks! — MM)

Larry Shanks has been named president of Chouinard Brothers Ltd., a roofing contracting company based in Markham, ON. Shanks was formerly national accounts manager at Westroc and vice-president and general manager of GAF. The move takes effect June 25, 2001. (416-752-7300)

Home Depot Inc. has announced that Mark Baker, executive vice-president, merchandising, will leave the company by the end of Summer to pursue other business. Baker assumed his current position as chief merchandising officer in October 2000. In March 2000, he was named executive vice president and chief operating officer for Home Depot’s U.S. stores. A successor has not been named.

______________________________________________

NOTED …

Retailers like Home Depot and Lowe’s will benefit from rising lumber prices as last year’s glut thins out and U.S. suppliers crank up production again. Steep increases in April and May resulted in prices more than 60% higher than last year, says a report from the industry newsletter, Random Lengths.

______________________________________________

OVERHEARD …

“Everybody is waiting to see which retailer will be next to drop — and which ones will survive.”

— Paul Straus, vice-president and CEO of Home Hardware, to vendor members of the Canadian Hardware and Housewares Manufacturers Association last week. He said he was glad Revy got purchased by a company that has such close ties to Home Hardware (both are members of the same buying alliance).

______________________________________________

* * * * *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

* * * * * *

WE KNOW THE MARKET AND THE MARKET KNOWS US!

Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.

Find out how Don Flynn and his team at Lenmark Communications can bring innovative solutions to your marketing challenges. Phone 905-475-5222; Fax 905-475-6369 mailto:mdflynn@lenmarkgroup.comail; http://www.lenmarkgroup.com <http://www.lenmarkgroup.com/>

______________________________________________

SALES MANAGER — ONTARIO EAST:

ProfitMaster Canada is a national provider of information technology and e-Business Solutions to the Hardware and Building Supply Industry. Our empowered workplace environment delivers the daily challenges that motivate the team of associates to reap outstanding rewards. Due to exceptional growth we are seeking highly motivated professionals to round out our team.

Reporting to the President, the SALES MANAGER will be responsible for:

– Overseeing all sales in their region

– Initiating new client opportunities and determining district potential

– Preparing forecast information

– Developing relationships with current accounts in region

– Establishing and maintaining corporate partnerships

Requirements: post-secondary education in business/accounting or retail management; sales management experience; strong analytical, problem-solving and decision making skills; excellent communication and computer skills; ability to work well in a fast-paced team environment.

Please reply in confidence via e-mail only to hrsales@pmcanada.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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

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

by McLARNEYCOM

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

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

HARDLINES

Canada’s electronic information service for the home improvement industry

June 11, 2001

Volume vii, #24

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Ace to try out “virtual” fall dealer show

* CHS changes times to accommodate enhanced education program

* Home Hardware focuses on upscale, female customer

* Home Depot launches 1200th store

* * * * * *

CORRECTION:
Halifax-based Lumbermart is opening a 20,000-sq.ft. store in Dartmouth next week, but it will be a Do-it center, not Ace. The Halifax store has the Pro banner.

* * * * * *

NOW IN ITS 2nd PRINTING! (go to https://hardlines.ca/html/industry_report.html)

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MARKETING CONFERENCE:

(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.

______________________________________________

ARE YOU UP ON OUR DAILY NEWS?

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 HARDWARE KEEPS EYE

ON ITS CORE CUSTOMER

______________________________________________

CANADIAN SHOW ADJUSTS TIMES,

BOLSTERS SEMINARS

The Canadian Hardware & Building Materials Show has adjusted its hours and program for its next edition, which runs February 3rd through 5th, 2002 at The National Trade Centre in Toronto.

______________________________________________

ACE WILL VENTURE ONLINE WITH

VIRTUAL DEALER SHOW

Wilson adds that all Canadian Ace dealers have access to Ace’s two shows in the U.S.

______________________________________________

COMPANIES IN THE NEWS

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	23.70
Canfor	16.95	7.65	11.20
Goodfellow	11.00	8.00	9.00
Home Depot	49.74	47.61	50.80
Hudson’s Bay	17.65	12.40	16.45
Lowe’s	64.90	34.25	73.57
Sears Canada	37.25	18.55	22.35
Taiga Forest	10.00	6.80	8.00
West Fraser	36.50	21.00	33.50

______________________________________________

“Leadership, like swimming, cannot be learned by reading about it.” — Henry Mintzberg (Canadian educator)

_______________________________________________

MARKET INDICATORS

______________________________________________

PEOPLE ON THE MOVE

Also announced: Ace Hardware Canada’s complete buying teams under its two group merchandise managers, Bernie Snider and Dan McMurdy, as well as its merchandising services group, have been named.

Click here for full details: https://hardlines.ca/html/featured_event.html (or order the latest issue of the Hardlines Who’s Who, available in a couple of weeks! — MM)

______________________________________________

NOTED …

______________________________________________

OVERHEARD …

“Everybody is waiting to see which retailer will be next to drop — and which ones will survive.”

______________________________________________

* * * * *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

* * * * * *

WE KNOW THE MARKET AND THE MARKET KNOWS US!

Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.

______________________________________________

SALES MANAGER — ONTARIO EAST:

Reporting to the President, the SALES MANAGER will be responsible for:

– Overseeing all sales in their region

– Initiating new client opportunities and determining district potential

– Preparing forecast information

– Developing relationships with current accounts in region

– Establishing and maintaining corporate partnerships

Please reply in confidence via e-mail only to hrsales@pmcanada.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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

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

by McLARNEYCOM

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

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:

______________________________________________

Jun. 5, 2001

HARDLINES™
Five years serving Canada’s home improvement industry
June 5, 2000 – Volume vi, #22
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:
* Growmark and Ace team up on fall dealer show
* Home Hardware will have * million-sq.ft. distribution centre in the west
* Saskatchewan Tim-BR Mart dealer newest speaker at Hardlines Marketing Conference
* Sodisco-Howden looks for more regional distributors
* * * * * *

CONFERENCE UPDATE: AN INDEPENDENT VS. BIG BOX

The latest speaker to join the lineup for the Hardlines Marketing Conference on September 14, 2000, is Don Neufeld, president of J+H Builder’s Warehouse. This Tim-BR Mart dealer has two stores in Saskatoon. Don’s version of battling the big box includes closing on Sundays, which has garnered him some very unusual publicity – and tremendous respect – within the local community.

The Conference will also feature Pat Farrah, founder of The Home Depot; Tom Ferguson, president and COO of Newell Rubbermaid; Sid Doolittle from MacMillan/Doolittle in Chicago; Randy Jorgensen of AOV Canada; Will Raap, founder of Gardener’s Supply; and Tim Silk of the Ivey Business School at the University of Western Ontario.

This year we’re introducing a series of breakout sessions on “Branding,” “e-commerce” and “Com-petitive Intelligence.”

The Fifth Annual Hardlines Marketing Conference: September 14, 2000; 8:30 a.m. &endash; 6:30 p.m.; Marriott Eaton Centre Hotel, Toronto (includes continental breakfast, lunch and post-Conference cocktail reception). Cost: $349 for subscribers, $449 for non-subscribers. You can register online at: www.hardlinesfax.com, or call 416-489-3396, ext.2.

* * * * * *

GROWMARK AND ACE WILL COMBINE SHOWS

Ace Hardware Canada and Growmark have taken another step in consolidating their relationship. The two wholesalers have agreed to combine their dealer markets this fall. The new combination show, billed as the Ace/Growmark Marketing and Buying Show, will be held October 22-23, 2000, at the Toronto Congress Centre. The show will host Ace customers, including LBM buying group members who have adapted either Ace product lines or Ace store banner, as well as the bannered dealers who belong to the Growmark co-op.

Ace currently ships to some 450 independent retailers in Canada, 100 of them Ace bannered stores. GROWMARK has 160 co-op member dealers in Ontario (and one in Michigan). Together, they struck an alliance in 1998 to allow Ace to supply Growmark dealers with hardware lines.

At the beginning of this year, Growmark’s own turnkey merchandising programs for workwear, lawn & garden and pet supplies were made available to Ace Canada customers, namely Country Depot, FS Co-operatives.

* * * * * *

HOME HARDWARE EXPANDS ITS WESTERN WAREHOUSE

Construction of a 100,000-sq.ft. addition to Home Hardware’s Wetaskiwin, Alta., distribution centre is currently under way. The 17*-acre site, which adjoins the existing warehouse, was purchased earlier in the year and the ground was broken on construction in March. The 17-year-old Wetaskiwin facility serves 280 Home Hardware dealers in Western Canada.

The latest expansion is aimed at accommodating sales growth by existing dealers, as well as the needs of 60 Beaver Lumber stores in the west, which were added with the purchase last year of Beaver by Home Hardware. The project is scheduled for completion by September 2000. It will bring the total size of the Western Canada distribution centre to 500,000 sq.ft.

The larger facility will focus on core lines of hardware and building materials, says Don Kirk, national distribution manager for Home Hardware. The current count of 60,000 SKUs will not be increased, but more volume of existing lines will fill the new space. “We’re committed to regional distribution to cut down on lead times,” says Kirk.

Home also has a 300,000-sq.ft. distribution centre in Debert, N.S., in addition to the million sq.ft. at head office in St. Jacobs, Ont.

COMPANIES IN THE NEWS

Taiga Forest Products reported a 30% increase in sales for 1999. The year, which ended March 31, saw sales climb from $695 million in 1998 to $904.5 million. Earnings went up 14%, from $5.3 million to $6.1 million. Taiga president Pat Hamill said the growth came despite falling lumber and panel prices toward the end of 1999.

In the first three months of 2000, sales for Rona Inc. increased 21.6%, from $201.2 million to $244.8 million. Net earnings reached $2.65 million, up 14.7% from $2.3 million recorded in the same period in 1999. Highlights of the quarter included Rona’s acquisition of 66 Cashway Building Centres in Ontario and the launch of a $50-million investment to grow its e-business.

Westburne Inc. and Prophet 21 Inc. have formed a strategic partnership to create WestburneIPG.com, a business-to-business e-commerce portal for its Industrial Products Group. Westburne is a distributor of industrial, construction and maintenance supplies to customers across North America. Prophet 21 provides e-business systems to wholesale distributors.

Rona Inc. opened its 10th Rénovateur Régional, this one in Lévis, a suburb of Québec City. The “mini-big box store has 95,000 sq.ft. of retail, which includes a 25,000-sq.ft. indoor lumberyard, 3,000-sq.ft. greenhouse and 10,000-sq.ft. garden centre. With more than 35,000 products, it features wide aisles, floor stands, large format shelf displays and indoor boutiques for painting, decoration, doors and windows, stoves and fireplaces, and flooring.

TruServ Corp. has announced a strategic partnership with United Purchasing Affiliates (UPA), a plumbing, electrical and HVAC wholesaler, to create a commercial/industrial buying group. The joint-licensed program will make available more than 600,000 SKUs from 2,000 vendors. The deal includes e-commerce, with 400,000 SKUs available to online buyers. UPA has 1,100 members with combined retail sales US$600 million. TruServ’s commercial/industrial sales amount to US$1.5 billion.

Stambaugh Hardware Co. has launched its own magazine, “The Inviting Home.” It was recently mailed out to almost 40,000 of Stambaugh’s most frequent shoppers.

The Dealer Education Team at Home Hardware Stores in St. Jacobs, Ont., won two ICON awards recently for its production of two corporate videos. The videos are part of a monthly series for Home Hardware dealers called Success Building TV, which gets aired internally to the dealer network. The awards are sponsored by the Kitchener-Waterloo Sales and Ad Club.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	18 ^1/16
Canadian Tire	46.00	19.10	23.90
Canfor	19.25	4.25	13.20
Goodfellow	12.25	7.50	10.60
Home Depot	70	35.75	53 ^5/8
Hudsons Bay	23.85	12.70	19.00
Lowe’s Cos.	67.25	40.75	50^3/4
Sears Canada	42.50	18.25	36.90
Taiga Forest	14.75	9.40	9.00
West Fraser	41.00	28.00	31.50

“Philosophy is the product of wonder.” – A. N. Whitehead

PEOPLE ON THE MOVE

Nobody

OVERHEARD…

“There are more Smith-Barregars in this country, but it will get tougher and tougher for them to survive as Home Depot spreads out.” – Tony Molluso, president and CEO of Sodisco-Howden Group, on his plans to acquire further regional distributors in the near future. He adds that he might target an industrial wholesaler, noting the growing sales being made in commercial/industrial by hardware and home improvement dealers.

THE WOMEN’S CONSUMER PRODUCTS NETWORK

June 27: WCPN Golf Tournament (Sorry – sold out!). August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

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.

Check out our incredible Classifieds section!

CONFERENCE UPDATE: AN INDEPENDENT VS. BIG BOX

This year we’re introducing a series of breakout sessions on “Branding,” “e-commerce” and “Com-petitive Intelligence.”

* * * * * *

GROWMARK AND ACE WILL COMBINE SHOWS

* * * * * *

HOME HARDWARE EXPANDS ITS WESTERN WAREHOUSE

Home also has a 300,000-sq.ft. distribution centre in Debert, N.S., in addition to the million sq.ft. at head office in St. Jacobs, Ont.

COMPANIES IN THE NEWS

Stambaugh Hardware Co. has launched its own magazine, “The Inviting Home.” It was recently mailed out to almost 40,000 of Stambaugh’s most frequent shoppers.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	18 ^1/16
Canadian Tire	46.00	19.10	23.90
Canfor	19.25	4.25	13.20
Goodfellow	12.25	7.50	10.60
Home Depot	70	35.75	53 ^5/8
Hudsons Bay	23.85	12.70	19.00
Lowe’s Cos.	67.25	40.75	50^3/4
Sears Canada	42.50	18.25	36.90
Taiga Forest	14.75	9.40	9.00
West Fraser	41.00	28.00	31.50

“Philosophy is the product of wonder.” – A. N. Whitehead

PEOPLE ON THE MOVE

Nobody

OVERHEARD…

THE WOMEN’S CONSUMER PRODUCTS NETWORK

June 27: WCPN Golf Tournament (Sorry – sold out!). August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare.

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.

June4_01

HARDLINES™

Canada’s electronic information service for the home improvement industry

June 04, 2001

Volume vii, #23

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Chester Dawe buyout makes it biggest in Newfoundland

* New conference from Hardlines will provide education, industry awareness

* HomeBase rolls out new concept House2Home in California

* Lowe’s to erect new distribution centre for U.S. mid-Atlantic

* * * * * *

NOW IN ITS 2nd PRINTING! (go to hardlines.ca <https://hardlines.ca/> and click on “Publications”)

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MARKETING CONFERENCE:

(go to hardlines.ca <https://hardlines.ca/> and click on “Conferences and events”)

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

______________________________________________

ARE YOU UP ON OUR DAILY NEWS?

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

Keep informed. Visit http://hardlines.ca every day.

* * * * * *

Chester Dawe acquisition creates Atlantic powerhouse

Consolidation continues in Newfoundland with the acquisition today of Hickman’s Building Centres by Chester Dawe Ltd. The cost of the deal was not disclosed, but will result in the largest building materials retailer in Newfoundland — and second largest in Atlantic Canada: a seven-store chain with 300 employees that generates $65 million in annual sales.

The takeover consists of three stores, all of which will operate under the Chester Dawe name. They fit well with Chester Dawe’s four existing stores, which are situated on the periphery of St. John’s. Hickman’s flagship store is a 110,000-sq.ft. site on O’Leary Avenue, while the Hickman’s store in South River Conception Bay represents a new market for Chester Dawe. The last store is in Fortune, a thriving out port five hours from St. John’s.

According to Phil Budden, general manager of Chester Dawe, all the staff at each store will remain in place, while much of the management from Hickman’s will move over, as well. Russ Mitchell, vice-president of Hickman’s, will stay on as CFO, while Brian Humphries will carry over his role as comptroller to Chester Dawe. Doug Piercey will move over as assistant operations and purchasing manager, reporting to Charlie Dowden.

Both companies are family owned and they both have comparable sales. And while both serve a mix of retail and contractor customers, Hickman’s has a higher percentage of trade business, something Chester Dawe sees an a opportunity. “We certainly anticipate getting more access to the contractor business,” says Budden. The

The key difference, however, is their affiliations. Chester Dawe is one of the key members of the AWARD buying group; Hickman’s was a member of ILDC.

A.E. Hickman Co. was established by the Hickman family in 1905 as a wholesale business. Over the years the retail business developed and in 1982 Hickman’s Building Centres was formed. Once a mainstay of the province, its sales — and store count — have dwindled over the years. It had six stores in the mid-’90s, but by 1999, that had shrunk to five, two of which were shed last year, including one that was sold to Notre Dame Agencies. Sales, too, continued to fall: in 2000 they hit $32.5 million, down from a high of $37 million in 1998. However, the addition of those volumes to Chester Dawe’s will make Chester Dawe second only to Saint John-based Kent Building Supplies in Atlantic Canada.

Primary financing for the takeover came from the Newfoundland and Labrador Credit Union, as well as the two families involved through Dawe’s Investments Ltd. and A.E. Hickman Co. Ltd.

______________________________________________

Newest Hardlines conference focuses on

education on issues affecting competitiveness

The Hardlines Retail Strategies Symposium is a brand new education conference from Hardlines. The educational mandate of the half-day event responds to an industry-wide need for increased awareness of competitive issues affecting retailers. The topics covered include:

– size and positioning of the Canadian home improvement retail market;

– expansion and strategies of big box players;

– overview of the U.S. market and its current trends.

The Symposium will include an overview of Canadian market, discussing its dominant players and their competitive positioning. Buying group consolidation and retailers’ strategies to target specific customers such as contractors and female shoppers will also be discussed. Also: an analysis of the U.S. market and its key players, by John Caulfield, editor of National Home Centre News.

The Hardlines Retail Strategies Symposium will be held at the Four Points Sheraton, Toronto Airport on September 12, 2001, from 1 p.m. to 4:30 p.m. Cost is $149. It’s recommended as a stand-alone, or as an introduction to the Sixth Annual Hardlines Marketing Conference on September 13. For more information about both events, call Bev at 416-489-3396; fax: 416-489-6154, or email bev@hardlines.ca .

______________________________________________

HomeBase pushes rollout of new concept stores

The first of two waves of House2Home openings occurred last weekend with the opening of 17 of the 100,000-sq.ft. home decorating big boxes in the Los Angeles area. The stores represent HomeBase’s new retail strategy as it converts from a traditional home improvement warehouse. A total of 37 stores will open by July.

The new concept, coined “The Incredible Home Decorating Superstore,” features four specialty categories: outdoor living (patio furniture, barbecues, lawn and garden, outdoor lighting, fountains and other décor); indoor living (custom-order flooring, carpets and rugs, lighting, window coverings and home furniture); home décor and accessories (bedding and bath, storage, candles, silk flowers, tabletop/kitchenware); seasonal and party goods (customized balloon bouquets and party favours, holiday merchandise).

HomeBase had US$1.44 billion in sales in 2001, down from US$1.53 billion in 2000. Faced with sliding sales, it introduced the House2Home test stores in December 2000. It intends to convert all its warehouse stores to the new home decorating superstore concept.

______________________________________________

COMPANIES IN THE NEWS

Rona Inc. announced improved first quarter profits in spite of slower sales of seasonal products. The company earned $2.8 million in the quarter ended March 31, a 6% increase from the $2.6 million of the corresponding time a year ago. Net earnings rose 12%. Sales increased 3.6% to $253.6 million from $244.8 million. Rona and its 250 unionized workers at the Boucherville distribution centre in Québec signed a new six-year collective agreement during the first quarter.

Weyerhaeuser Co. has sent a letter to shareholders of Willamette Industries Inc. encouraging them to vote for Weyerhaeuser’s slate of director nominees at the former’s upcoming annual meeting. A change in the board will inevitably affect Willamette’s continued disregard for Weyerhaeuser’s bids to acquire the company. “We believe [Willamette’s] management has made its position abundantly clear: it is simply not interested in selling,” says the company. “But in remaining unyielding towards negotiating with Weyerhaeuser, Willamette has shown a high degree of disregard for the wishes of its own shareholders, as expressed in their response to the tender offer.”

The U.S. has formally rejected an Ottawa proposal to appoint special envoys for the softwood lumber dispute. Government officials insisted they are not disturbed by Washington’s rejection of the envoy approach. The U.S. Coalition for Fair Lumber Imports wants the U.S. administration to impose duties as high as 78%, or nearly $8 billion a year, on Canadian lumber exports to the U.S. Canadian producers supply about 34% of the U.S. lumber market, worth about $10 billion a year to Canadian exporters.

Lowe’s Cos. will build a regional distribution centre in Northampton County, NC at a cost of US$90 million. The 1.3 million-sq.ft. facility will be erected on a 225-acre site and will supply 90-plus Lowe’s outlets in the U.S. mid-Atlantic region. Construction begins this summer and is expected to finish in about 18 months.

Canadian Tire’s commitment to higher quality goods is reflected in its latest offerings of bicycles. Claiming one in three bikes in Canada are bought from CTC, the company is trying to crack the market for more serious users, especially in off-road cycling. Adult/youth bikes are priced from $90 to $700. For kids’ bikes, the range is from $30 to $110.

Home Depot’s board of directors has declared a quarterly cash dividend of four cents per share, payable June 28, 2001. This is the 56th consecutive quarter that the company has paid a cash dividend. At his first annual meeting of the company, president and CEO Bob Nardelli noted that Home Depot more than doubled its sales in the past four years, generating US$46 billion in fiscal 2000. He also told shareholders Home Depot is mindful of global growth, and for the time being will focus on Puerto Rico, Argentina, Chile and Mexico, where it already has stores. The retailer has no immediate plans to move into Europe.

CORRECTION: I reported the sales at retail in 2000 of ILDC’s members incorrectly last week. They were actually $2 billion.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	23.10
Canfor	16.95	7.65	11.19
Goodfellow	11.00	8.00	9.00
Home Depot	49.74	47.61	49.26
Hudson’s Bay	17.65	12.40	16.25
Lowe’s	64.90	34.25	69.30
Sears Canada	37.25	18.55	22.40
Taiga Forest	10.00	6.80	7.60
West Fraser	36.50	21.00	35.95

______________________________________________

“Children’s talent to endure stems from their ignorance of alternatives.”

— Maya Angelou (American poet)

_______________________________________________

MARKET INDICATORS

Gross domestic product edged up 0.1% in March. Manufacturing was buoyed by higher output of automotive and pharmaceutical goods, and by a pause in the sharp contraction seen by electronic equipment makers. GDP in the wholesaling and retailing industries was little changed in March. Retail sales edged up 0.3% as auto sales picked up when consumers took advantage of dealer incentives.

Recent gains in retailer stocks reflect investor confidence that an economic recovery will arrive with this year’s holiday shopping season. But fourth-quarter planning by the retailers hasn’t shown that same faith. Current valuations of retail stocks, from Wal-Mart Stores Inc. to Home Depot Inc. to Gap Inc., are banking on a stronger holiday season this year, but the companies appear to be hedging their bets, buying fewer goods and hoping to make up in profit margins what they lose on volume.

U.S. consumers seem to have shrugged off the likelihood of a recession and future layoffs as they continue to spend more than they earn. The University of Michigan’s final May consumer sentiment index, which measures consumers’ attitudes about the economy, rose to 92.0 in May from 88.4 in April. Analysts are seeing this data as an indication that consumers remain confident enough to spend at levels sufficient to support overall economic activity.

______________________________________________

PEOPLE ON THE MOVE

Chester E. Dawe, president of Chester Dawe Ltd. in St. John’s, NF, celebrated his 97th birthday on May 17. Mr. Dawe continues to remain active in the company he founded in 1941.

______________________________________________

NOTED …

Seven hundred retailers from across the country will gather at Retail Council of Canada’s 37th Annual Conference on June 18 & 19, 2001. The “New Game, New Rules” program will include a panel exchange between George Heller, president & CEO, Hudson’s Bay Co., Mark A. Cohen, chairman & CEO of Sears Canada and Chris Dawson, vice president, Bain & Co. to discuss strategies to increase revenue, margins, growth & loyalty.

______________________________________________

OVERHEARD …

… “I’m pretty proud that this is a non-Bay Street financed deal. We’re financed by Newfoundlanders, owned by Newfoundlanders, we’re serving Newfoundlanders and, wherever possible, we’re sourcing our products from Newfoundlanders.”

— Phil Budden, general manager of Chester Dawe Ltd., comments on his company’s takeover of Hickman’s Building Centres with financing from the people of Newfoundland, through the Newfoundland and Labrador Credit Union, a non-chartered bank that provided the bulk of the financing for the deal.

… “Retailers and vendors alike need to understand our distinct industry landscape in order to increase their competitiveness. Profits are dependent on educated, market-based decisions.”

— Michael McLarney, Editor and Publisher of the Hardlines Information Network, shamelessly promoting our brand new Retail Strategies Symposium on September 12, 2001.

______________________________________________

* * * * *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

* * * * * *

WE KNOW THE MARKET AND THE MARKET KNOWS US!

Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.

Find out how Don Flynn and his team at Lenmark Communications can bring innovative solutions to your marketing challenges. Phone 905-475-5222; Fax 905-475-6369; dflynn@lenmarkgroup.com; www.lenmarkgroup.com

______________________________________________

SALES MANAGER — ONTARIO EAST:

Reporting to the President, the SALES MANAGER will be responsible for:

– Overseeing all sales in their region

– Initiating new client opportunities and determining district potential

– Preparing forecast information

– Developing relationships with current accounts in region

– Establishing and maintaining corporate partnerships

Please reply in confidence via e-mail only to hrsales@pmcanada.com

* * * * * *

SALES MANAGER, SASKATOON CUSTOMER SERVICE CENTRE:

Weyerhaeuser is seeking a sales motivated leader for this position. Duties and responsibilities will include planning and directing the CSC sales and marketing activities, providing coaching and leadership to the associates and developing successful customer relationships.

Requirements: Prior sales and management experience in the building materials distribution industry desired. Enthusiastic team leader with strong, interpersonal, relationship and communication skills. Product management experiences an asset.

Submit reúsumeú prior to June 8/01 to Weyerhaeuser 11553 154th St, Edmonton, AB T5M 3N7 Attn.: Bernie Roth; email: Bernie.Roth@Weyerhaeuser.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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

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

by McLARNEYCOM

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

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

______________________________________________

HARDLINES™

Canada’s electronic information service for the home improvement industry

June 04, 2001

Volume vii, #23

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

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

* * * * * *

IN THIS ISSUE:

* Chester Dawe buyout makes it biggest in Newfoundland

* New conference from Hardlines will provide education, industry awareness

* HomeBase rolls out new concept House2Home in California

* Lowe’s to erect new distribution centre for U.S. mid-Atlantic

* * * * * *

NOW IN ITS 2nd PRINTING! (go to hardlines.ca <https://hardlines.ca/> and click on “Publications”)

* * * * * *

BIG NAMES, NETWORKING, AT NEXT

HARDLINES MARKETING CONFERENCE:

(go to hardlines.ca <https://hardlines.ca/> and click on “Conferences and events”)

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

______________________________________________

ARE YOU UP ON OUR DAILY NEWS?

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

Keep informed. Visit http://hardlines.ca every day.

* * * * * *

Chester Dawe acquisition creates Atlantic powerhouse

The key difference, however, is their affiliations. Chester Dawe is one of the key members of the AWARD buying group; Hickman’s was a member of ILDC.

Primary financing for the takeover came from the Newfoundland and Labrador Credit Union, as well as the two families involved through Dawe’s Investments Ltd. and A.E. Hickman Co. Ltd.

______________________________________________

Newest Hardlines conference focuses on

education on issues affecting competitiveness

– size and positioning of the Canadian home improvement retail market;

– expansion and strategies of big box players;

– overview of the U.S. market and its current trends.

______________________________________________

HomeBase pushes rollout of new concept stores

______________________________________________

COMPANIES IN THE NEWS

CORRECTION: I reported the sales at retail in 2000 of ILDC’s members incorrectly last week. They were actually $2 billion.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY	52-WK HIGH	52-WK LOW	CLOSE (FRI)
Canadian Tire	25.20	15.05	23.10
Canfor	16.95	7.65	11.19
Goodfellow	11.00	8.00	9.00
Home Depot	49.74	47.61	49.26
Hudson’s Bay	17.65	12.40	16.25
Lowe’s	64.90	34.25	69.30
Sears Canada	37.25	18.55	22.40
Taiga Forest	10.00	6.80	7.60
West Fraser	36.50	21.00	35.95

______________________________________________

“Children’s talent to endure stems from their ignorance of alternatives.”

— Maya Angelou (American poet)

_______________________________________________

MARKET INDICATORS

______________________________________________

PEOPLE ON THE MOVE

Chester E. Dawe, president of Chester Dawe Ltd. in St. John’s, NF, celebrated his 97th birthday on May 17. Mr. Dawe continues to remain active in the company he founded in 1941.

______________________________________________

NOTED …

______________________________________________

OVERHEARD …

… “Retailers and vendors alike need to understand our distinct industry landscape in order to increase their competitiveness. Profits are dependent on educated, market-based decisions.”

— Michael McLarney, Editor and Publisher of the Hardlines Information Network, shamelessly promoting our brand new Retail Strategies Symposium on September 12, 2001.

______________________________________________

* * * * *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

* * * * * *

WE KNOW THE MARKET AND THE MARKET KNOWS US!

Lenmark offers a wide range of INTEGRATED MARKETING SERVICES … from package design to websites, from trade campaigns to consumer promotions.

______________________________________________

SALES MANAGER — ONTARIO EAST:

Reporting to the President, the SALES MANAGER will be responsible for:

– Overseeing all sales in their region

– Initiating new client opportunities and determining district potential

– Preparing forecast information

– Developing relationships with current accounts in region

– Establishing and maintaining corporate partnerships

Please reply in confidence via e-mail only to hrsales@pmcanada.com

* * * * * *

SALES MANAGER, SASKATOON CUSTOMER SERVICE CENTRE:

Submit reúsumeú prior to June 8/01 to Weyerhaeuser 11553 154th St, Edmonton, AB T5M 3N7 Attn.: Bernie Roth; email: Bernie.Roth@Weyerhaeuser.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 Eugenia Canas at 416-489-3396 or email: buzz@hardlines.ca

______________________________________________

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

by McLARNEYCOM

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

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:

______________________________________________

Archives

Jul. 4, 2001

July3_01

Jun. 26, 2001

June25_01

— G. K. Chesterton”

— G. K. Chesterton”

Jun. 19, 2001

June18_01

Jun. 12, 2001

June11_01

Jun. 5, 2001

June4_01

NEWS

ABOUT US

EVENTS

REPORTS

CLASSIFIEDS

CONSULTING

ADVERTISE

FOLLOW