Archives

May28_01

HARDLINES™

Canada’s electronic information service for the home improvement industry

May 28, 2001

Volume vii, #22

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

* * * * * *

IN THIS ISSUE:

* ILDC: life after Revy

* U.K. distributor to acquire Westburne Group

* Sodisco-Howden keeps focus on rural Canada

* Maytag wants to sell commercial division

* * * * * *

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! This extraordinary one-day symposium is the …Look, never mind the hype. 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.)

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.

* * * * * *

ILDC RALLIES FOLLOWING LOSS OF REVY

Independent Lumber Dealers Co-operative is taking stock following the loss of its largest member. Revelstoke Home Centres was out of ILDC the day after Rona Inc. announced its takeover of Revelstoke from West Fraser Timber.

Canada’s most elite buying group, ILDC represented $1.4 billion in sales at retail, generated by 23 members with a total of 186 stores. However, Revy alone accounted for $805 million of those sales. In an era where consolidation is the strategy considered necessary to maintain the buying clout — and rebates — of buying groups, the need to shore up that loss is important.

Losing a member the size of Revy will certainly have an impact,” says Andrew Battagliotti, general manager of ILDC. “But because of Revy’s retail focus, the impact on the group will not be as great as it appears on the surface.” ILDC members are typically more contractor-oriented than Revelstoke, he says, and therefore it does not contribute as much in relative terms to the group’s commodity purchases.

The sale of Revelstoke has been anticipated for many months and ILDC has been making moves to replace the shortfall. “Certainly, we knew it was coming,” says Battagliotti, “We’re going to miss the players.” Totem Building Supplies, the largest dealer in the Tim-BR-Marts group in Western Canada, joined ILDC in February, bringing in another $150 million in sales at retail and maintaining some presence for ILDC in the West.

I’ve been active in looking for other members for a while now. Totem was an example, but we have to make sure the fit is right.”

______________________________________________

LATEST CONSOLIDATION OPENS

OPPORTUNITIES IN RURAL MARKETS

The acquisition of Revelstoke Home Centres by Rona Inc. means more room for independent distributors to go after the rural markets in Canada. So says Tony Molluso, CEO of Sodisco-Howden Group, adding that one of his key competitors has taken its eye off the ball.

Rona has its sights set on a larger picture. The big box has to find a way to capture the rural market.”

Until then, he sees a clear shot for hardware distributors to capture that market more effectively. “Hardware retail in rural Canada is very important. There, people want to take advantage of time saving and convenience. They want to shop very close to where they live.”

However, Rona will certainly give Sodisco-Howden a run for the money: it is committed to growing all its retail formats, including 200 hardware stores and 120 building supply outlets in the Western provinces alone over the next five years.

 

In addition, Ace Hardware has reaffirmed its commitment to Canada, with a recent restructuring that includes a new buying team and the naming of Rob Collins to head up operations here.

______________________________________________

EUROPEAN WHOLESALER TO BUY

UP WESTBURNE GROUP

 

Wolseley Group, a wholesale distributor of plumbing, heating and building products based in the U.K., has signed a conditional deal to acquire The Westburne Group of companies (Westburne Plumbing & Waterworks Inc., Westburne Supply Inc. in the U.S., Westburne Refrigeration & HVAC Inc. in Canada and Westburne Industrial Products in Canada) from Rexel SA. The cash free/debt free deal, valued at $550 million, is expected to close around the end of June.

Charlie Banks, Wolseley’s recently appointed Group CEO, said in a prepared release that the acquisition, the company’s first in Canada, will also provide expansion opportunities south of the border. Of Westburne’s $1.43 billion in sales, 47% comes from U.S. operations.

 

The Westburne Group has more than 3,000 employees in 313 locations in plumbing and waterworks, refrigeration and industrial supplies. Wolseley already has 801 branches in the U.S., with sales of $8.5 billion. In Europe, it has 1,443 branches and sales of $5 billion.

______________________________________________

COMPANIES IN THE NEWS

Taiga Forest Products Ltd. has posted fourth quarter sales of $171.5 million, compared with $237.2 million for the same period last year. Sales for the year ended March 31 were $790.2 million, down from $904.5 million a year prior.

Kitchener-ON based Supplierpipeline Inc. has bought Caradon Lite Products. Previous acquisitions include Erie Industrial Products, Jackall Jacks & Automotive Accessories, MIC Metalbuilt & JFL Accessories, and Jacmorr DIY & Builders Hardware.

 

Isoboard Enterprises of Elie, MB has been rescued from receivership with a takeover by Dow Pipeline, a division of Dow Chemical. Isoboard produces composite panels that have attracted the interest of companies such as Home Depot. The panels, made from wheat straw, are a wood replacement product.

 

The Hudson’s Bay Co.’s first quarter results included losses of $11.4 million. Sales slipped to $1.51 billion from $1.53 billion. The company’s flagship store reported an operating loss of $6 million, a sharp contrast to the $9.6 million operating profit a year ago. Same-store sales fell 5.2%. Home Outfitters, the Hudson’s Bay’s kitchen, bed, and bath superstore, will open its first store in Calgary, AB on May 31.

Lowe’s Cos. announced first-quarter profits up 20.4%, US$225.3 million. Sales grew 18.1% to US$5.28 billion, helped by new stores and an extra week in the quarter. The company sold more flooring, plumbing fixtures and electrical supplies, which generate higher profits. Lowe’s opened 37 stores during the first quarter and plans to open 20-25 more in the second quarter, fewer than its originally planned 25-30.

In an effort to focus more on its core business, Maytag Corp. is considering options such as selling off G.S. Blodgett, which sells commercial ovens and fryers to the foodservice industry, in an admission that its commercial side has not grown satisfactorily. Blodgett had sales of US$135 million in 2000.

Power-tool accessory maker Jore Corp. filed for voluntary reorganization under Chapter 11 last week in the District of Montana. Jore invested heavily in manufacturing equipment over the past two years and had been chosen by Home Depot in the U.S. to produce Stanley branded products. However, a slowdown in the economy, coupled with a costly rollout of the Home Depot program, took its toll on the company. During the reorganization, Jore will explore options that may include the sale of all or part of its

operations.

_____________________________________________

NOW IN ITS 2nd PRINTING!

“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.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 25.20 15.05 22.88

Canfor 16.95 7.65 10.50

Goodfellow 11.00 8.00 9.00

Home Depot 49.74 47.61 52.28

Hudsons Bay 17.65 12.40 16.15

Lowe’s 64.90 34.25 71.82

Sears Canada 37.25 18.55 22.85

Taiga Forest 10.00 6.80 7.80

West Fraser 36.50 21.00 34.00

______________________________________________

“There are two classes of travel, first class and with children.” — Robert

Benchley (American humorist)

_______________________________________________

MARKET INDICATORS

Retailers sold $23.7 billion worth of goods and services in March, up 0.3% from the previous month. This increase offset the 0.3% decline in February. Retailers reported strong monthly sales increases in January 2001 (+0.5%) and December 2000 (+1.0%), after experiencing a period of essentially flat sales that started in July 2000. In March 2001, retail sales were 1.6% higher than they were in July 2000. In constant dollars, sales were up 1.1% over the same period. Despite not growing over February and March, retail sales were 1.1% higher in the first quarter of 2001 than in the fourth quarter of 2000. This quarterly gain followed unchanged sales in the last quarter of 2000 (+0.1%) compared with the third quarter.

______________________________________________

 

PEOPLE ON THE MOVE

 

Neil Whitford has been named vice-president/general manager of the Power Tool Division of Robert Bosch Inc. in Canada. He comes over from Bosch in the U.K., where he worked for 26 years. (905-826-6060)

Do it Best Corp. May Market, has two new senior executives. David Haist, as senior vice-president of member services, will focus on business growth and new member prospecting … Bob Taylor, senior vice-president of operations, will lead the company’s e-business initiatives. The new appointments were announced at the co-op’s May Market, held May 19-22 in Fort Wayne, IN. (219-748-5300)

 

______________________________________________

NOTED …

Do it Best Corp. held its latest dealer market May 19-22, 2001. More than 1,000 visitors and vendors attended. During the show, president and CEO Mike McClelland reported that warehouse sales were up 5% year-to-date. The co-op expects to finish the year by returning a 12% rebate to its members.

______________________________________________

OVERHEARD …

 

Customer satisfaction equals customer loyalty. If you really understand that notion, you will systematize your organization around continually increasing that metric.”

Douglas Allred, Cisco Systems, senior vice-president of customer advocacy uses a few new buzz words to state the obvious.

______________________________________________

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

______________________________________________

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

* * * * * *

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

© 2001 by Michael McLarney.

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

 

THE HARDLINES “FAIR PLAY” POLICY:

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

______________________________________________

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

 

HARDLINES™

Canada’s electronic information service for the home improvement industry

May 28, 2001

Volume vii, #22

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

* * * * * *

IN THIS ISSUE:

* ILDC: life after Revy

* U.K. distributor to acquire Westburne Group

* Sodisco-Howden keeps focus on rural Canada

* Maytag wants to sell commercial division

* * * * * *

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! This extraordinary one-day symposium is the …Look, never mind the hype. 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.)

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.

* * * * * *

ILDC RALLIES FOLLOWING LOSS OF REVY

Independent Lumber Dealers Co-operative is taking stock following the loss of its largest member. Revelstoke Home Centres was out of ILDC the day after Rona Inc. announced its takeover of Revelstoke from West Fraser Timber.

Canada’s most elite buying group, ILDC represented $1.4 billion in sales at retail, generated by 23 members with a total of 186 stores. However, Revy alone accounted for $805 million of those sales. In an era where consolidation is the strategy considered necessary to maintain the buying clout — and rebates — of buying groups, the need to shore up that loss is important.

Losing a member the size of Revy will certainly have an impact,” says Andrew Battagliotti, general manager of ILDC. “But because of Revy’s retail focus, the impact on the group will not be as great as it appears on the surface.” ILDC members are typically more contractor-oriented than Revelstoke, he says, and therefore it does not contribute as much in relative terms to the group’s commodity purchases.

The sale of Revelstoke has been anticipated for many months and ILDC has been making moves to replace the shortfall. “Certainly, we knew it was coming,” says Battagliotti, “We’re going to miss the players.” Totem Building Supplies, the largest dealer in the Tim-BR-Marts group in Western Canada, joined ILDC in February, bringing in another $150 million in sales at retail and maintaining some presence for ILDC in the West.

I’ve been active in looking for other members for a while now. Totem was an example, but we have to make sure the fit is right.”

______________________________________________

LATEST CONSOLIDATION OPENS

OPPORTUNITIES IN RURAL MARKETS

The acquisition of Revelstoke Home Centres by Rona Inc. means more room for independent distributors to go after the rural markets in Canada. So says Tony Molluso, CEO of Sodisco-Howden Group, adding that one of his key competitors has taken its eye off the ball.

Rona has its sights set on a larger picture. The big box has to find a way to capture the rural market.”

Until then, he sees a clear shot for hardware distributors to capture that market more effectively. “Hardware retail in rural Canada is very important. There, people want to take advantage of time saving and convenience. They want to shop very close to where they live.”

However, Rona will certainly give Sodisco-Howden a run for the money: it is committed to growing all its retail formats, including 200 hardware stores and 120 building supply outlets in the Western provinces alone over the next five years.

 

In addition, Ace Hardware has reaffirmed its commitment to Canada, with a recent restructuring that includes a new buying team and the naming of Rob Collins to head up operations here.

______________________________________________

EUROPEAN WHOLESALER TO BUY

UP WESTBURNE GROUP

 

Wolseley Group, a wholesale distributor of plumbing, heating and building products based in the U.K., has signed a conditional deal to acquire The Westburne Group of companies (Westburne Plumbing & Waterworks Inc., Westburne Supply Inc. in the U.S., Westburne Refrigeration & HVAC Inc. in Canada and Westburne Industrial Products in Canada) from Rexel SA. The cash free/debt free deal, valued at $550 million, is expected to close around the end of June.

Charlie Banks, Wolseley’s recently appointed Group CEO, said in a prepared release that the acquisition, the company’s first in Canada, will also provide expansion opportunities south of the border. Of Westburne’s $1.43 billion in sales, 47% comes from U.S. operations.

 

The Westburne Group has more than 3,000 employees in 313 locations in plumbing and waterworks, refrigeration and industrial supplies. Wolseley already has 801 branches in the U.S., with sales of $8.5 billion. In Europe, it has 1,443 branches and sales of $5 billion.

______________________________________________

COMPANIES IN THE NEWS

Taiga Forest Products Ltd. has posted fourth quarter sales of $171.5 million, compared with $237.2 million for the same period last year. Sales for the year ended March 31 were $790.2 million, down from $904.5 million a year prior.

Kitchener-ON based Supplierpipeline Inc. has bought Caradon Lite Products. Previous acquisitions include Erie Industrial Products, Jackall Jacks & Automotive Accessories, MIC Metalbuilt & JFL Accessories, and Jacmorr DIY & Builders Hardware.

 

Isoboard Enterprises of Elie, MB has been rescued from receivership with a takeover by Dow Pipeline, a division of Dow Chemical. Isoboard produces composite panels that have attracted the interest of companies such as Home Depot. The panels, made from wheat straw, are a wood replacement product.

 

The Hudson’s Bay Co.’s first quarter results included losses of $11.4 million. Sales slipped to $1.51 billion from $1.53 billion. The company’s flagship store reported an operating loss of $6 million, a sharp contrast to the $9.6 million operating profit a year ago. Same-store sales fell 5.2%. Home Outfitters, the Hudson’s Bay’s kitchen, bed, and bath superstore, will open its first store in Calgary, AB on May 31.

Lowe’s Cos. announced first-quarter profits up 20.4%, US$225.3 million. Sales grew 18.1% to US$5.28 billion, helped by new stores and an extra week in the quarter. The company sold more flooring, plumbing fixtures and electrical supplies, which generate higher profits. Lowe’s opened 37 stores during the first quarter and plans to open 20-25 more in the second quarter, fewer than its originally planned 25-30.

In an effort to focus more on its core business, Maytag Corp. is considering options such as selling off G.S. Blodgett, which sells commercial ovens and fryers to the foodservice industry, in an admission that its commercial side has not grown satisfactorily. Blodgett had sales of US$135 million in 2000.

Power-tool accessory maker Jore Corp. filed for voluntary reorganization under Chapter 11 last week in the District of Montana. Jore invested heavily in manufacturing equipment over the past two years and had been chosen by Home Depot in the U.S. to produce Stanley branded products. However, a slowdown in the economy, coupled with a costly rollout of the Home Depot program, took its toll on the company. During the reorganization, Jore will explore options that may include the sale of all or part of its

operations.

_____________________________________________

NOW IN ITS 2nd PRINTING!

“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.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 25.20 15.05 22.88

Canfor 16.95 7.65 10.50

Goodfellow 11.00 8.00 9.00

Home Depot 49.74 47.61 52.28

Hudsons Bay 17.65 12.40 16.15

Lowe’s 64.90 34.25 71.82

Sears Canada 37.25 18.55 22.85

Taiga Forest 10.00 6.80 7.80

West Fraser 36.50 21.00 34.00

______________________________________________

“There are two classes of travel, first class and with children.” — Robert

Benchley (American humorist)

_______________________________________________

MARKET INDICATORS

Retailers sold $23.7 billion worth of goods and services in March, up 0.3% from the previous month. This increase offset the 0.3% decline in February. Retailers reported strong monthly sales increases in January 2001 (+0.5%) and December 2000 (+1.0%), after experiencing a period of essentially flat sales that started in July 2000. In March 2001, retail sales were 1.6% higher than they were in July 2000. In constant dollars, sales were up 1.1% over the same period. Despite not growing over February and March, retail sales were 1.1% higher in the first quarter of 2001 than in the fourth quarter of 2000. This quarterly gain followed unchanged sales in the last quarter of 2000 (+0.1%) compared with the third quarter.

______________________________________________

 

PEOPLE ON THE MOVE

 

Neil Whitford has been named vice-president/general manager of the Power Tool Division of Robert Bosch Inc. in Canada. He comes over from Bosch in the U.K., where he worked for 26 years. (905-826-6060)

Do it Best Corp. May Market, has two new senior executives. David Haist, as senior vice-president of member services, will focus on business growth and new member prospecting … Bob Taylor, senior vice-president of operations, will lead the company’s e-business initiatives. The new appointments were announced at the co-op’s May Market, held May 19-22 in Fort Wayne, IN. (219-748-5300)

 

______________________________________________

NOTED …

Do it Best Corp. held its latest dealer market May 19-22, 2001. More than 1,000 visitors and vendors attended. During the show, president and CEO Mike McClelland reported that warehouse sales were up 5% year-to-date. The co-op expects to finish the year by returning a 12% rebate to its members.

______________________________________________

OVERHEARD …

 

Customer satisfaction equals customer loyalty. If you really understand that notion, you will systematize your organization around continually increasing that metric.”

Douglas Allred, Cisco Systems, senior vice-president of customer advocacy uses a few new buzz words to state the obvious.

______________________________________________

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

______________________________________________

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

* * * * * *

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

© 2001 by Michael McLarney.

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: nancy@hardlines.ca

______________________________________________

 

THE HARDLINES “FAIR PLAY” POLICY:

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

______________________________________________

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

 

May22_01

HARDLINES

Canada’s electronic information service for the home improvement industry

May 22, 2001

Volume vii, #21

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

 

* * * * * *

IN THIS ISSUE:

* Post takeover: future of Lansing head following Rona takeover

* Nelson Lumber acquisition beefs up Tim-BR-Mart ranks

* Rona will pass on six Revelstoke stores

* Home Depot backs off in Maritimes

 

* * * * * *

Want to find out more about RONA’s plans for national expansion? Hear Rick Blickstead and Henri Drouin of RONA at the Hardlines Marketing Conference — September 13, 2001! PLUS: Canadian Tire, Ace Hardware, Turkstra Lumber and much more!!!

 

To get special conference rates at Four Points Sheraton, call 1-800-737-3211. Ask for Reservations and mention the Hardlines Marketing Conference.

(For a complimentary shuttle service from Pearson airport, simply notify the hotel.)

_____________________________________________

 

LANSING’S FUTURE WILL UNFOLD

FOLLOWING RONA TAKEOVER

 

John Kitchen, president of the Lansing/Revy division of Revelstoke Home Centres, says he will stay on as long as he’s needed. “If there’s a role for me to play, I’ll certainly consider it.” In the meantime, he notes, “Time will tell. It’s still early in the deal.”

 

Speculating on the fate of the Lansing name, Kitchen says he expects it to continue, at least for the short term, calling it “a very viable banner. I don’t see Revy wanting to come in and muck around with that too much.”

 

He points out its strong positioning in the minds of contractors and DIYers in the Greater Toronto Area. Lansing differentiates itself from the competition nicely, he adds.

 

However, says Rona’s Sylvain Morissette, changes will be made, including eventually rolling the Lansing banner into the Rona fold. “That was the purpose of the takeover. It’s really a chance for us to increase our presence.”

 

______________________________________________

 

SIX REVELSTOKE STORES

WERE NOT PICKED UP BY RONA

 

When Rona’s takeover of Revelstoke Home Centres was announced last week, six stores were omitted from the deal. Rona will take over 11 big box Revy Hardware & Garden stores, 33 Revelstoke Home Centres, and eight Lansing Buildall outlets.

 

But the Revy stores in Port Alberni and Nanaimo, on Vancouver Island, and Toronto’s Stockyards location, plus the Revelstoke stores in Parkville and Campbell River, BC and Regina, SK have been passed over. The big surprise was the Stockyards Revy store in Toronto. It shares the parking lot of a power centre that includes a Home Depot and a Canadian Tire, but sits at the end of the lane and fails to attract the traffic of its orange rival. Yet it was always considered something of a jewel in the Revy crown, with more than adequate sales to justify its existence.

 

However”, says Sylvain Morissette, communications director for Rona, “the company does not anticipate strong enough sales growth from the site to warrant hanging on to it long term.”

 

Rona does intend to continue Revy’s growth strategy in Southern Ontario, which calls for at least another eight big boxes there. Whether any of them will be new format Home Solutions stores has not been determined. Rona’s acquisition of Revelstoke will include the 15% ownership in Revy held by the Kitchen family, which it acquired when Revelstoke acquired Lansing in 1998. The resulting company will consist of 539 stores and have total retail sales of about $2.9 billion.

 

______________________________________________

 

NELSON BUYS SRI HOMES,

BOOSTS TIM-BR-MART VOLUMES

 

Nelson Lumber Co. Ltd. has announced its acquisition of SRI Homes, a member of the NorTerra group. The acquisition increases Nelson’s annual revenues from $91 million to $160 million. Lloydminster, AB-based Nelson is a key member of Tim-Br-Marts Ltd., the Vancouver-based buying group that lost $150 million in retail sales in February as a result of the defection of Totem Building Supplies Ltd. to a rival buying group, Independent Lumber Dealers Co-operative (ILDC).

 

Nelson will operate SRI independently, with SRI retaining all employees and executive team. The company will report to Nelson’s Brian Holterhus, Co-CEO and CFO.

 

SRI is a strategic fit for Nelson, which is already one of the province’s largest suppliers of modular homes. SRI homes will continue to be marketed through dealer networks under three different product names: Shelter, Regent and Winfield Home Systems.

 

______________________________________________

 

COMPANIES IN THE NEWS

 

Home Depot has slowed down its expansion plans in Atlantic Canada: a store being built in Moncton, NB has been delayed again. The last announced opening date was July 2001. That opening has been postponed indefinitely. Also, an option on property in Saint John, across the street from a new Kent big box, has been discharged.

 

Home Depot in the U.S. has announced first quarter sales of US$12.2 billion, a 10% increase from the first quarter of fiscal 2000. Same-stores sales declined 3% due to deflation in lumber and building materials retail pricing. Net earnings reached US$632 million for the first quarter of fiscal 2001, compared with net earnings of US$629 million for the corresponding time in 2000. Home Depot intends to open 200 stores by the end of fiscal 2001.

 

Newell Rubbermaid Co. will cut 3,000 jobs, or 6% of its work force, over the next three years in an effort to trim costs by more than US$160 million a year. The effort to streamline production will also involve moving facilities to areas with less expensive labour. In his three year plan for the company, Joseph Galli, CEO, stated intentions to eliminate brands that lack potential to meet the company’s goal of 15% return on invested capital.

 

Kmart Co. has reported a narrower-than-expected first quarter loss of US$25 million, as spending to improve operations pressured results. Sales for the 13-week period ending May 2 were US$8.337 billion, up 1.7% from US$8.195 billion a year ago. Same-store sales rose 1.7% in the quarter.

 

_____________________________________________

 

CANADIAN STOCK WATCH

 

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 25.20 15.05 22.60

Canfor 16.95 7.65 11.55

Goodfellow 11.00 8.00 8.75

Home Depot 49.74 47.61 52.70

Hudsons Bay 17.65 12.40 16.80

Lowe’s 64.90 34.25 68.40

Sears Canada 37.25 18.55 23.90

Taiga Forest 10.00 6.80 8.00

West Fraser 36.50 21.00 34.50

 

______________________________________________

 

It’s a good thing to make mistakes so long as you’re found out quickly.”

John Maynard Keynes (1883-1946)

______________________________________________

 

MARKET INDICATORS

 

Canada’s merchandise exports in March reached $36.0 billion, up 2.3% from the previous month. Increases were due to higher exports in the machinery and equipment sector. Imports grew at a slightly slower pace, increasing 1.7% to $29.9 billion on the strength of a rebound in the automotive sector.

 

March wholesale sales rose to $32.2 billion, an increase of 1.7% that partially offset February’s drop of 1.8%. Both changes were attributed to the automobile sector, which accounts for 17% of total wholesale sales. A notable decline was reported by wholesalers in the other products category, which includes hardware (-1.7%) and by wholesalers of lumber and building materials (-1.4%).

 

Consumers faced a 3.6% average price increase in April compared to April 2000 for the goods and services included in the Consumer Price Index (CPI). This is the largest observed increase since December 1991. Energy prices rose an average 11.6% from April 2000 to April 2001, accounting for almost one-third of the annual increase.

 

_____________________________________________

 

PEOPLE ON THE MOVE

 

John Morrissey has been appointed vice-president, marketing for AWARD — the

group. He will focus on driving purchasing initiatives to increase the competitiveness of AWARD’s member stores in Atlantic Canada. Formerly director of marketing and purchasing, he has more than 20 years experience in the building supply industry. (902-835-7242)

 

______________________________________________

 

OVERHEARD …

 

“I feel very responsible for the Foundation for Families’ creation. I am the honorary chairman and I haven’t been able to attend at another disaster. Crisis response happened and I just wasn’t there, but I was so close this time I thought, ‘Yes!’ I made a few phone calls and e-mails and here I am.”

Martha Billes, one of Canada’s wealthiest women, drove seven hours from Calgary to help hand out bottled water to residents of North Battleford, SK, the latest community hit by poisoned water. Billes is worth $100 million thanks to her family’s ownership of shares in Canadian Tire Corp., which was founded by her father and uncle.

 

______________________________________________

______________________________________________

 

* * * * *HARDLINES MARKETPLACE* * * *

(Check out Hardlines Classifieds on the web: hardlines.ca <https://hardlines.ca/> )

______________________________________________

______________________________________________

 

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

 

* * * * * *

SALES MANAGER, SASKATOON CUSTOMER SERVICE CENTER:

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

 

* * * * * *

SALES MANAGER – SOUTH WESTERN ONTARIO:

EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

 

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

 

Entrance requirements: post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

 

Submit résumé before May 4th, 2001 to Herb deJong, EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7.

 

* * * * * *

SALES MERCHANDISING REPRESENTATIVE:

Canadian Manufacturer of quality products requires a SALES MERCHANDISING REP to start immediately. The position includes major emphasis on box store businesses plus other account responsibilities in the GTA.

 

Requirements: 1-3 years related exp. in consumer products, excellent computer skills and the ability to travel frequently. A post secondary education in Business Admin. or Marketing is an asset. Fax résumé to 905-459-2791.

 

* * * * * *

BUILDING SALES COORDINATORS (3):

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members. We are seeking three BUILDING SALES COORDINATORS with the experience to provide sales, technical and estimating support to field staff engaged in building sales and service activities throughout the province.

 

Candidates will work with the marketers, technical support group and field personnel to develop and implement building market opportunities in the designated geographic area. The locations are Calgary, Red Deer and Edmonton.

 

Applicants should have a community college diploma with 3 to 5 years of agricultural and construction experience as well as sales and marketing experience. A working knowledge of Microsoft Office products is preferred. Applicants will be required to travel within the designated area.

 

Interested applicants are invited to apply, stating geographic preference, to the address indicated by May 18, 2001. Human Resources, United Farmers of Alberta; 1016 68th Avenue SW; Calgary, AB T2V 4J2;Fax: 403-258-7630; email: résumés@ufa.com

 

We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

 

* * * * * *

ACCOUNT REPRESENTATIVE:

Dow Chemical Canada Inc. is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of approximately $30 billion, Dow serves customers in 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others.

 

Committed to the principles of sustainable development, Dow and its 50,000 employees seek to balance economic, environmental and social responsibilities. For further information about Dow, visit http://www.dow.com/

 

Dow Chemical Canada Inc. is seeking a qualified person to represent them to builders, renovators, building supply dealers and distributors in Manitoba. The Fabricated Products team of the Dow Chemical Co. has an ACCOUNT REPRESENTATIVE opening in Winnipeg, MB. This high-energy role will maximize the sale of Styrofoam brand products to the architectural and residential markets of the assigned territory.

 

Qualifications: candidates must have the ability to combine technical and commercial skills. The position requires constant and persistent calls on architects, residential builders, and general contractors as well as channel members such as distributors, and lumber dealers. The ability to generate a specification, hold it and close the sale is vital to success in this position. Candidates for this job should have a high degree of comfort in delivering sales and educational presentations to groups.

 

Candidates must have: a Bachelors Degree; a minimum of 5 years sales experience; exceptional relationship and interpersonal skills; initiative. To apply for this position, please visit our web site at http://www.careersatdow.com/ and look for MDG0001.

 

* * * * * *

RETAIL PRODUCT MANAGER:

A well-established company requires an energetic person to manage the marketing of its retail product lines. Experience and understanding of all aspects of the retail hardlines – Multi SKU – business, combined with a strong sales background, is a must.

 

Applicants must be graduates of a sales and marketing program, have above average computer skills and possess excellent written and verbal communication skills.

 

Send or fax résumé to the attention of Luann Busch, Personnel. Canada Cordage Inc. 50 Ottawa St. S. Kitchener, ON; N2G 3S7; fax: 519-745-4290.

 

______________________________________________

 

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

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

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

______________________________________________

 

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.

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: mailto:buzz@hardlines.ca

Beverly Allen, Marketing Manager: mailto: bev@hardlines.ca

Nancy Wright, Circulation Manager: mailto:nancy@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

© 2001 by Michael McLarney.

______________________________________________

 

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

May 22, 2001

Volume vii, #21

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

 

* * * * * *

IN THIS ISSUE:

* Post takeover: future of Lansing head following Rona takeover

* Nelson Lumber acquisition beefs up Tim-BR-Mart ranks

* Rona will pass on six Revelstoke stores

* Home Depot backs off in Maritimes

 

* * * * * *

Want to find out more about RONA’s plans for national expansion? Hear Rick Blickstead and Henri Drouin of RONA at the Hardlines Marketing Conference — September 13, 2001! PLUS: Canadian Tire, Ace Hardware, Turkstra Lumber and much more!!!

 

To get special conference rates at Four Points Sheraton, call 1-800-737-3211. Ask for Reservations and mention the Hardlines Marketing Conference.

(For a complimentary shuttle service from Pearson airport, simply notify the hotel.)

_____________________________________________

 

LANSING’S FUTURE WILL UNFOLD

FOLLOWING RONA TAKEOVER

 

John Kitchen, president of the Lansing/Revy division of Revelstoke Home Centres, says he will stay on as long as he’s needed. “If there’s a role for me to play, I’ll certainly consider it.” In the meantime, he notes, “Time will tell. It’s still early in the deal.”

 

Speculating on the fate of the Lansing name, Kitchen says he expects it to continue, at least for the short term, calling it “a very viable banner. I don’t see Revy wanting to come in and muck around with that too much.”

 

He points out its strong positioning in the minds of contractors and DIYers in the Greater Toronto Area. Lansing differentiates itself from the competition nicely, he adds.

 

However, says Rona’s Sylvain Morissette, changes will be made, including eventually rolling the Lansing banner into the Rona fold. “That was the purpose of the takeover. It’s really a chance for us to increase our presence.”

 

______________________________________________

 

SIX REVELSTOKE STORES

WERE NOT PICKED UP BY RONA

 

When Rona’s takeover of Revelstoke Home Centres was announced last week, six stores were omitted from the deal. Rona will take over 11 big box Revy Hardware & Garden stores, 33 Revelstoke Home Centres, and eight Lansing Buildall outlets.

 

But the Revy stores in Port Alberni and Nanaimo, on Vancouver Island, and Toronto’s Stockyards location, plus the Revelstoke stores in Parkville and Campbell River, BC and Regina, SK have been passed over. The big surprise was the Stockyards Revy store in Toronto. It shares the parking lot of a power centre that includes a Home Depot and a Canadian Tire, but sits at the end of the lane and fails to attract the traffic of its orange rival. Yet it was always considered something of a jewel in the Revy crown, with more than adequate sales to justify its existence.

 

However”, says Sylvain Morissette, communications director for Rona, “the company does not anticipate strong enough sales growth from the site to warrant hanging on to it long term.”

 

Rona does intend to continue Revy’s growth strategy in Southern Ontario, which calls for at least another eight big boxes there. Whether any of them will be new format Home Solutions stores has not been determined. Rona’s acquisition of Revelstoke will include the 15% ownership in Revy held by the Kitchen family, which it acquired when Revelstoke acquired Lansing in 1998. The resulting company will consist of 539 stores and have total retail sales of about $2.9 billion.

 

______________________________________________

 

NELSON BUYS SRI HOMES,

BOOSTS TIM-BR-MART VOLUMES

 

Nelson Lumber Co. Ltd. has announced its acquisition of SRI Homes, a member of the NorTerra group. The acquisition increases Nelson’s annual revenues from $91 million to $160 million. Lloydminster, AB-based Nelson is a key member of Tim-Br-Marts Ltd., the Vancouver-based buying group that lost $150 million in retail sales in February as a result of the defection of Totem Building Supplies Ltd. to a rival buying group, Independent Lumber Dealers Co-operative (ILDC).

 

Nelson will operate SRI independently, with SRI retaining all employees and executive team. The company will report to Nelson’s Brian Holterhus, Co-CEO and CFO.

 

SRI is a strategic fit for Nelson, which is already one of the province’s largest suppliers of modular homes. SRI homes will continue to be marketed through dealer networks under three different product names: Shelter, Regent and Winfield Home Systems.

 

______________________________________________

 

COMPANIES IN THE NEWS

 

Home Depot has slowed down its expansion plans in Atlantic Canada: a store being built in Moncton, NB has been delayed again. The last announced opening date was July 2001. That opening has been postponed indefinitely. Also, an option on property in Saint John, across the street from a new Kent big box, has been discharged.

 

Home Depot in the U.S. has announced first quarter sales of US$12.2 billion, a 10% increase from the first quarter of fiscal 2000. Same-stores sales declined 3% due to deflation in lumber and building materials retail pricing. Net earnings reached US$632 million for the first quarter of fiscal 2001, compared with net earnings of US$629 million for the corresponding time in 2000. Home Depot intends to open 200 stores by the end of fiscal 2001.

 

Newell Rubbermaid Co. will cut 3,000 jobs, or 6% of its work force, over the next three years in an effort to trim costs by more than US$160 million a year. The effort to streamline production will also involve moving facilities to areas with less expensive labour. In his three year plan for the company, Joseph Galli, CEO, stated intentions to eliminate brands that lack potential to meet the company’s goal of 15% return on invested capital.

 

Kmart Co. has reported a narrower-than-expected first quarter loss of US$25 million, as spending to improve operations pressured results. Sales for the 13-week period ending May 2 were US$8.337 billion, up 1.7% from US$8.195 billion a year ago. Same-store sales rose 1.7% in the quarter.

 

_____________________________________________

 

CANADIAN STOCK WATCH

 

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 25.20 15.05 22.60

Canfor 16.95 7.65 11.55

Goodfellow 11.00 8.00 8.75

Home Depot 49.74 47.61 52.70

Hudsons Bay 17.65 12.40 16.80

Lowe’s 64.90 34.25 68.40

Sears Canada 37.25 18.55 23.90

Taiga Forest 10.00 6.80 8.00

West Fraser 36.50 21.00 34.50

 

______________________________________________

 

It’s a good thing to make mistakes so long as you’re found out quickly.”

John Maynard Keynes (1883-1946)

______________________________________________

 

MARKET INDICATORS

 

Canada’s merchandise exports in March reached $36.0 billion, up 2.3% from the previous month. Increases were due to higher exports in the machinery and equipment sector. Imports grew at a slightly slower pace, increasing 1.7% to $29.9 billion on the strength of a rebound in the automotive sector.

 

March wholesale sales rose to $32.2 billion, an increase of 1.7% that partially offset February’s drop of 1.8%. Both changes were attributed to the automobile sector, which accounts for 17% of total wholesale sales. A notable decline was reported by wholesalers in the other products category, which includes hardware (-1.7%) and by wholesalers of lumber and building materials (-1.4%).

 

Consumers faced a 3.6% average price increase in April compared to April 2000 for the goods and services included in the Consumer Price Index (CPI). This is the largest observed increase since December 1991. Energy prices rose an average 11.6% from April 2000 to April 2001, accounting for almost one-third of the annual increase.

 

_____________________________________________

 

PEOPLE ON THE MOVE

 

John Morrissey has been appointed vice-president, marketing for AWARD — the

group. He will focus on driving purchasing initiatives to increase the competitiveness of AWARD’s member stores in Atlantic Canada. Formerly director of marketing and purchasing, he has more than 20 years experience in the building supply industry. (902-835-7242)

 

______________________________________________

 

OVERHEARD …

 

“I feel very responsible for the Foundation for Families’ creation. I am the honorary chairman and I haven’t been able to attend at another disaster. Crisis response happened and I just wasn’t there, but I was so close this time I thought, ‘Yes!’ I made a few phone calls and e-mails and here I am.”

Martha Billes, one of Canada’s wealthiest women, drove seven hours from Calgary to help hand out bottled water to residents of North Battleford, SK, the latest community hit by poisoned water. Billes is worth $100 million thanks to her family’s ownership of shares in Canadian Tire Corp., which was founded by her father and uncle.

 

______________________________________________

______________________________________________

 

* * * * *HARDLINES MARKETPLACE* * * *

(Check out Hardlines Classifieds on the web: hardlines.ca <https://hardlines.ca/> )

______________________________________________

______________________________________________

 

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

 

* * * * * *

SALES MANAGER, SASKATOON CUSTOMER SERVICE CENTER:

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

 

* * * * * *

SALES MANAGER – SOUTH WESTERN ONTARIO:

EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

 

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

 

Entrance requirements: post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

 

Submit résumé before May 4th, 2001 to Herb deJong, EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7.

 

* * * * * *

SALES MERCHANDISING REPRESENTATIVE:

Canadian Manufacturer of quality products requires a SALES MERCHANDISING REP to start immediately. The position includes major emphasis on box store businesses plus other account responsibilities in the GTA.

 

Requirements: 1-3 years related exp. in consumer products, excellent computer skills and the ability to travel frequently. A post secondary education in Business Admin. or Marketing is an asset. Fax résumé to 905-459-2791.

 

* * * * * *

BUILDING SALES COORDINATORS (3):

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members. We are seeking three BUILDING SALES COORDINATORS with the experience to provide sales, technical and estimating support to field staff engaged in building sales and service activities throughout the province.

 

Candidates will work with the marketers, technical support group and field personnel to develop and implement building market opportunities in the designated geographic area. The locations are Calgary, Red Deer and Edmonton.

 

Applicants should have a community college diploma with 3 to 5 years of agricultural and construction experience as well as sales and marketing experience. A working knowledge of Microsoft Office products is preferred. Applicants will be required to travel within the designated area.

 

Interested applicants are invited to apply, stating geographic preference, to the address indicated by May 18, 2001. Human Resources, United Farmers of Alberta; 1016 68th Avenue SW; Calgary, AB T2V 4J2;Fax: 403-258-7630; email: résumés@ufa.com

 

We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

 

* * * * * *

ACCOUNT REPRESENTATIVE:

Dow Chemical Canada Inc. is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of approximately $30 billion, Dow serves customers in 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others.

 

Committed to the principles of sustainable development, Dow and its 50,000 employees seek to balance economic, environmental and social responsibilities. For further information about Dow, visit http://www.dow.com/

 

Dow Chemical Canada Inc. is seeking a qualified person to represent them to builders, renovators, building supply dealers and distributors in Manitoba. The Fabricated Products team of the Dow Chemical Co. has an ACCOUNT REPRESENTATIVE opening in Winnipeg, MB. This high-energy role will maximize the sale of Styrofoam brand products to the architectural and residential markets of the assigned territory.

 

Qualifications: candidates must have the ability to combine technical and commercial skills. The position requires constant and persistent calls on architects, residential builders, and general contractors as well as channel members such as distributors, and lumber dealers. The ability to generate a specification, hold it and close the sale is vital to success in this position. Candidates for this job should have a high degree of comfort in delivering sales and educational presentations to groups.

 

Candidates must have: a Bachelors Degree; a minimum of 5 years sales experience; exceptional relationship and interpersonal skills; initiative. To apply for this position, please visit our web site at http://www.careersatdow.com/ and look for MDG0001.

 

* * * * * *

RETAIL PRODUCT MANAGER:

A well-established company requires an energetic person to manage the marketing of its retail product lines. Experience and understanding of all aspects of the retail hardlines – Multi SKU – business, combined with a strong sales background, is a must.

 

Applicants must be graduates of a sales and marketing program, have above average computer skills and possess excellent written and verbal communication skills.

 

Send or fax résumé to the attention of Luann Busch, Personnel. Canada Cordage Inc. 50 Ottawa St. S. Kitchener, ON; N2G 3S7; fax: 519-745-4290.

 

______________________________________________

 

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

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

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

______________________________________________

 

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.

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: mailto:buzz@hardlines.ca

Beverly Allen, Marketing Manager: mailto: bev@hardlines.ca

Nancy Wright, Circulation Manager: mailto:nancy@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

© 2001 by Michael McLarney.

______________________________________________

 

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.

 

 

May14_01

HARDLINES

Canada’s electronic information service for the home improvement industry

May 14, 2001

Volume vii, #19

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

* * * * * *

IN THIS ISSUE:

* May is Beaver conversion month

* Totem plans 14 locations in Alberta expansion

* Sodisco-Howden posts quarterly results

* Residential building permits are up 9.4% in first quarter

* TruServ appoints new regional managers

* * * * * *

Canadian Tire, Rona, Ace Hardware, Turkstra Lumber … and more!

Have you registered for the Hardlines Marketing Conference yet?

Mark September 13, 2001 on your calendar and sign up today!

To get special conference rates at the hotel, call Four Points Sheraton, 1-800-737-3211.

Ask for Reservations, room block for the Hardlines Marketing Conference.

For a complimentary shuttle service from Pearson airport, simply notify the hotel.

_____________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

TOTEM’S NEW FORMULA MEANS

NEW STORES IN SMALLER MARKETS

Totem Building Supplies continues its growth strategy into smaller communities in Alberta with the scheduled opening of its 13th and 14th locations over the next six months.

A 24,000-sq.ft. store will open in Camrose, AB by September 1, 2001. Reflecting a new strategy, the slightly smaller outlet is designed to fit into secondary locations that are considered less vulnerable to a big box invasion. It also features a square footprint as opposed to a rectangle, making it easier to merchandise, says Totem’s vice-president, marketing, Colin Robertson. “We’re experimenting with this smaller size community store and, so far, we’re really happy with what we’ve seen. It opens up all kinds of possibilities because there are lots of smaller locations like these in Alberta.”

The first such store went into Airdrie late last year. Another store is being developed in Sherwood Park, a community of 65,000 just outside Edmonton, which will bring the Totem chain up to 13 stores plus one contractor sales location.

Totem, with sales of $150 million annually, rocked the industry with its mid-February defection from the Tim-BR-Marts buying group to I.L.D.C.

______________________________________________

PRAISE THE LORD: MAY IS

CONVERSION MONTH AT HOME HARDWARE

All through this month, the Beaver Lumber stores that have switched to the Home Hardware banner as a result of the takeover of Beaver by Home make it official in a series of grand openings, flyer specials and heavy television advertising.

The week of May 7 was “grand opening week,” featuring the bulk of the promotion, which included a special flier and TV ads during the Maple Leafs’ playoff games.

In addition, individual stores made use of optional ad mats and customized publicity for their respective markets.

Out of 134 Beaver stores that were part of the buyout, 90 are participating in the grand opening event, representing the balance of the dealers who have come through the process of consolidating the two groups of dealers. However, many of those dealers were direct competitors. In 25 communities, that direct competition resulted in either the Home or the Beaver dealer buying out the other.

 

In markets where we had a Home Hardware store and a Beaver store, one of them goes forward,” says Eric Konecsni, vice-president operations for Home Hardware, and former vice-president and general manager for Beaver Lumber.

Another 15 stores were closed outright, while four more stores ended up defecting to another group or banner and one remains undecided. Home now has about 1,050 stores nationwide.

______________________________________________

DOT COM ONLINE JOB SEARCH SPECIALIZES IN RETAIL SECTOR

Canadianretail.com, promoting itself as Canada’s retail job store, is a retail-specific jobsite launched from Vancouver, BC, earlier this year.

The concept is working: the site is getting over 25,000 hits a day and has Home Depot, Sears, Canadian Tire and The Bay among its clients. The site provides a job search for both hourly-paid and managerial/executive positions.

Canadianretail.com has liaisons with major Internet job seekers, such as career campus and career owl. “We are currently focusing on a national ad campaign designed to attain critical mass,” says Dumont. The aim is to become a portal site for retailers and job seekers by providing information on retail as a career, annual salary services, etc. Click www.canadianretail.com <http://www.canadianretail.com/> for more info.

 

(For the latest techniques for retail staff recruitment and retention, catch Brenda Dumont and Wolf Gugler in an employment break out session at the upcoming Hardlines Marketing Conference, September 13, 2001)

______________________________________________

COMPANIES IN THE NEWS

Sodisco-Howden Group reported a drop in sales for the first quarter of 2001, reflecting poor weather that delayed spring shipments, especially in SHG’s building materials division. Sales for the quarter were $72.6 million, down 15.8% from $86.3 million. Net earnings dropped from $126,000 in 1Q 2000 to a loss of $385,000.

Castle Building Centres has added the following new members: Flin Flon Castle Building Centre, Flin Flon, MB; Norcen Distributors, Headingly, MB; Zak’s Building Supplies and Contracting, Hague, SK.

Following a revamp of its operations, Ryobi Technologies Canada Inc. has closed its distribution centre in Canada and moved its sales office: 150 Werlich Drive, Units 5 & 6, Cambridge, ON N1T 1N6. Phone: (519) 624-2222; fax: (519) 624-0600. The mailing address remains the same: P.O. Box 910, Cambridge, ON N1R 6K2.

Sears Roebuck and Co. plans to open three “Appliance & Electronics” test stores that will focus on electronics and household appliances. The company has stated that its hardlines unit, selling appliances, tools and home electronics, has had stronger performance than its softlines. The stores will be about 20,000 sq.ft., slightly larger than the space devoted to those categories in the larger Sears department stores. The first test store will open in Indiana in June, and two stores in suburban Chicago are set to open in October. Up to 100 stores are in the forecast.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 25.20 15.05 23.40

Canfor 16.95 7.65 11.00

Goodfellow 11.00 8.00 8.75

Home Depot 49.74 47.61 49.88

Hudsons Bay 17.65 12.40 17.15

Lowe’s 64.90 34.25 64.21

Sears Canada 37.25 18.55 21.15

Taiga Forest 10.00 6.80 7.60

West Fraser 36.50 21.00 33.05

______________________________________________

A human being: an ingenious assembly of portable plumbing.”

Christopher Morley (U.S. writer, 1890-1957)

______________________________________________

PEOPLE ON THE MOVE

TruServ Canada has made some changes to its Member Development team. The new structure will comprise three regional managers. Wilf Gerhardt has been appointed regional manager for the West. A 31-year veteran of the company, he was previously the sales development & store planning manager … Hugh Matson, formerly member development sales manager, has been appointed regional manager for the Eastern region. He has been with the company for 15 years … Regional manager for the Central region is yet to be named … Sid Kucheravy, previously sales development manager, takes on the role of project manager. His immediate task will be to manage the rollout of the new C&S Choices format for TruServ’s variety/department store members … Garry Ford is newly appointed district manager for Newfoundland. He joins TruServ with 19 years experience in wholesale and sales management. (204-453-9511)

Clint Ellicott has been appointed Ontario sales manager for Lafarge Gypsum. He transferred to Lafarge’s Gypsum division from its construction materials group, where he previously held the position of sales manager for packaged materials. (905-629-5444)

Annette Verschuren, president of Home Depot Canada, was given an honorary degree in law from St. Francis Xavier University in Antigonish, NS at its spring convocation on May 6. A native of Nova Scotia who grew up on a farm in Cape Breton, Verschuren is an alumna of St. Francis Xavier. (416-609-0852)

Two new product managers have been named at Do it Best Corp. in Fort Wayne, IN. Marty Wiggins has joined as plumbing department product manager. He was formerly with Rowe Marketing Group and McCoy’s in Texas … Brian Newton has been promoted to product manager of housewares. He was formerly associate product manager (219-748-5300)

Home Depot Inc. has named Carol Tome executive vice-president and CFO, effective immediately … The company also appointed Dennis Carey to vice-president of business development, strategy and corporate operations. Tome was most recently senior vice-president of finance and accounting, and treasurer. (770-433-8211)

Kmart Co. has appointed Jeffrey Boyer executive vice-president and CFO, effective immediately. Boyer’s background includes Sears Roebuck and Co., where he was CFO and senior vice-president. Boyer succeeds Martin Welch, who is taking early retirement.

(248-643-1000)

(248) 643-1000

_______________________________________________

MARKET INDICATORS

The value of building permits fell in March for the second consecutive month. Builders took out $3.1 billion in permits that month, a decline of 11.5%. Residential intentions dropped even more — by 13.5%, to $1.7 billion. However, for the first quarter, residential permits were up 9.4% over the first quarter of 2000. Much of the increase is due to multi-family housing intentions, especially in British Columbia (+29.9%). Residential permits in B.C. were up 27.1% overall, to $685 million, while Ontario was up 11.8% to $2.9 billion.

New housing prices increased 0.3% from February to March. Year over year, the March New Housing Price Index rose 2.6%, compared with March 2000. Monthly increases occurred in 13 out of 21 urban centres. The largest increase was in Saskatoon (+1.7%), as well as Winnipeg (+0.8%), Toronto (+0.5%) and Calgary, London, Montréal and Ottawa-Hull (+0.3%). The housing boom continues in the nation’s capital: the year-over-year increase in new housing prices in Ottawa-Hull was 14.6%.

Canadian commodity prices posted a 2% increase in April, the first increase after three months of successive declines. “The increase largely reflected a surge in lumber prices,” says Craig Alexander, Senior Economist at TD Bank Financial Group. Among the 12 commodities recording lower prices, pulp fared the worst, with a drop of 8%.

Against retailers’ expectations, the Ontario Government did not reduce the Provincial Sales Tax by 1%. The Retail Council of Canada estimates the cut would have pumped $1.7 billion back into Ontario shoppers’ pockets. On the other hand, Finance Minister Jim Flaherty reaffirmed the government’s tax-cutting strategy, which will give $250 million back to consumers in 2002. By 2005, retailers will finally pay the same corporate income tax rates as manufacturing and processing companies. Small retailer rates will drop half a percentage point a year to a common rate of 4%, while larger retailers will see their rate drop 1.5% a year to a common 8% rate.

______________________________________________

OVERHEARD …

The rise in Canadian commodity prices is unlikely to be sustained,” says Craig Alexander, Senior Economist at TD Bank Financial Group. “The ongoing U.S. economic slowdown and weakening demand in Europe and Asia spell lower commodity prices in the coming months.”

______________________________________________

* * * * *HARDLINES MARKETPLACE* * * *

(Check out Hardlines Classifieds on the web: hardlines.ca <https://hardlines.ca/> )

______________________________________________

______________________________________________

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

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs —business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.ca/ or call 905-693-0092

______________________________________________

* * * * * *

SALES MANAGER – SOUTH WESTERN ONTARIO:

EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

Entrance requirements: Post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

Submit résumé before May 4th, 2001 to Herb deJong, EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7.

* * * * * *

SALES MERCHANDISING REPRESENTATIVE:

Canadian Manufacturer of quality products requires a SALES MERCHANDISING REP. to start immediately. The position includes major emphasis on box store businesses plus other account responsibilities in the GTA.

Requirements: 1-3 years related exp. in consumer products, excellent computer skills and the ability to travel frequently. A post secondary education in Business Admin. or Marketing is

an asset. Fax résumé to 905-459-2791.

* * * * * *

BUILDING SALES COORDINATORS (3):

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members. We are seeking three BUILDING SALES COORDINATORS with the experience to provide sales, technical and estimating support to field staff engaged in building sales and service activities throughout the province.

Candidates will work with the marketers, technical support group and field personnel to develop and implement building market opportunities in the designated geographic area. The locations are Calgary, Red Deer and Edmonton.

Applicants should have a community college diploma with 3 to 5 years of agricultural and construction experience as well as sales and marketing experience. A working knowledge of Microsoft Office products is preferred. Applicants will be required to travel within the designated area.

Interested applicants are invited to apply, stating geographic preference, to the address indicated by May 18, 2001. Human Resources, United Farmers of Alberta; 1016 68th Avenue SW; Calgary, AB T2V 4J2;Fax: 403-258-7630; email: résumés@ufa.com

We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

ACCOUNT REPRESENTATIVE:

Dow Chemical Canada Inc. is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of approximately $30 billion, Dow serves customers in 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others.

Committed to the principles of sustainable development, Dow and its 50,000 employees seek to balance economic, environmental and social responsibilities. For further information about Dow, visit http://www.dow.com/

Dow Chemical Canada Inc. is seeking a qualified person to represent them to builders, renovators, building supply dealers and distributors in Manitoba. The Fabricated Products team of the Dow Chemical Co. has an ACCOUNT REPRESENTATIVE opening in Winnipeg, MB. This high-energy role will maximize the sale of Styrofoam brand products to the architectural and residential markets of the assigned territory.

Qualifications: Candidates must have the ability to combine technical and commercial skills. The position requires constant and persistent calls on architects, residential builders, and general contractors as well as channel members such as distributors, and lumber dealers. The ability to generate a specification, hold it and close the sale is vital to success in this position. Candidates for this job should have a high degree of comfort in delivering sales and educational presentations to groups.

Candidates must have: a Bachelors Degree; a minimum of 5 years sales experience; exceptional relationship and interpersonal skills; initiative. To apply for this position, please visit our web site at http://www.careersatdow.com/ and look for MDG0001.

* * * * * *

RETAIL PRODUCT MANAGER:

A well-established company requires an energetic person to manage the marketing of its retail product lines. Experience and understanding of all aspects of the retail hardlines – Multi SKU – business, combined with a strong sales background, is a must.

Applicants must be graduates of a sales and marketing program, have above average computer skills and possess excellent written and verbal communication skills.

Send or fax résumé to the attention of Luann Busch, Personnel. Canada Cordage Inc. 50 Ottawa St. S. Kitchener, ON; N2G 3S7; fax: 519-745-4290.

______________________________________________

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

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

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

______________________________________________

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.

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: mailto:buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: mailto:nancy@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

© 2001 by Michael McLarney.

______________________________________________

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

May 14, 2001

Volume vii, #19

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

* * * * * *

IN THIS ISSUE:

* May is Beaver conversion month

* Totem plans 14 locations in Alberta expansion

* Sodisco-Howden posts quarterly results

* Residential building permits are up 9.4% in first quarter

* TruServ appoints new regional managers

* * * * * *

Canadian Tire, Rona, Ace Hardware, Turkstra Lumber … and more!

Have you registered for the Hardlines Marketing Conference yet?

Mark September 13, 2001 on your calendar and sign up today!

To get special conference rates at the hotel, call Four Points Sheraton, 1-800-737-3211.

Ask for Reservations, room block for the Hardlines Marketing Conference.

For a complimentary shuttle service from Pearson airport, simply notify the hotel.

_____________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

TOTEM’S NEW FORMULA MEANS

NEW STORES IN SMALLER MARKETS

Totem Building Supplies continues its growth strategy into smaller communities in Alberta with the scheduled opening of its 13th and 14th locations over the next six months.

A 24,000-sq.ft. store will open in Camrose, AB by September 1, 2001. Reflecting a new strategy, the slightly smaller outlet is designed to fit into secondary locations that are considered less vulnerable to a big box invasion. It also features a square footprint as opposed to a rectangle, making it easier to merchandise, says Totem’s vice-president, marketing, Colin Robertson. “We’re experimenting with this smaller size community store and, so far, we’re really happy with what we’ve seen. It opens up all kinds of possibilities because there are lots of smaller locations like these in Alberta.”

The first such store went into Airdrie late last year. Another store is being developed in Sherwood Park, a community of 65,000 just outside Edmonton, which will bring the Totem chain up to 13 stores plus one contractor sales location.

Totem, with sales of $150 million annually, rocked the industry with its mid-February defection from the Tim-BR-Marts buying group to I.L.D.C.

______________________________________________

PRAISE THE LORD: MAY IS

CONVERSION MONTH AT HOME HARDWARE

All through this month, the Beaver Lumber stores that have switched to the Home Hardware banner as a result of the takeover of Beaver by Home make it official in a series of grand openings, flyer specials and heavy television advertising.

The week of May 7 was “grand opening week,” featuring the bulk of the promotion, which included a special flier and TV ads during the Maple Leafs’ playoff games.

In addition, individual stores made use of optional ad mats and customized publicity for their respective markets.

Out of 134 Beaver stores that were part of the buyout, 90 are participating in the grand opening event, representing the balance of the dealers who have come through the process of consolidating the two groups of dealers. However, many of those dealers were direct competitors. In 25 communities, that direct competition resulted in either the Home or the Beaver dealer buying out the other.

 

In markets where we had a Home Hardware store and a Beaver store, one of them goes forward,” says Eric Konecsni, vice-president operations for Home Hardware, and former vice-president and general manager for Beaver Lumber.

Another 15 stores were closed outright, while four more stores ended up defecting to another group or banner and one remains undecided. Home now has about 1,050 stores nationwide.

______________________________________________

DOT COM ONLINE JOB SEARCH SPECIALIZES IN RETAIL SECTOR

Canadianretail.com, promoting itself as Canada’s retail job store, is a retail-specific jobsite launched from Vancouver, BC, earlier this year.

The concept is working: the site is getting over 25,000 hits a day and has Home Depot, Sears, Canadian Tire and The Bay among its clients. The site provides a job search for both hourly-paid and managerial/executive positions.

Canadianretail.com has liaisons with major Internet job seekers, such as career campus and career owl. “We are currently focusing on a national ad campaign designed to attain critical mass,” says Dumont. The aim is to become a portal site for retailers and job seekers by providing information on retail as a career, annual salary services, etc. Click www.canadianretail.com <http://www.canadianretail.com/> for more info.

 

(For the latest techniques for retail staff recruitment and retention, catch Brenda Dumont and Wolf Gugler in an employment break out session at the upcoming Hardlines Marketing Conference, September 13, 2001)

______________________________________________

COMPANIES IN THE NEWS

Sodisco-Howden Group reported a drop in sales for the first quarter of 2001, reflecting poor weather that delayed spring shipments, especially in SHG’s building materials division. Sales for the quarter were $72.6 million, down 15.8% from $86.3 million. Net earnings dropped from $126,000 in 1Q 2000 to a loss of $385,000.

Castle Building Centres has added the following new members: Flin Flon Castle Building Centre, Flin Flon, MB; Norcen Distributors, Headingly, MB; Zak’s Building Supplies and Contracting, Hague, SK.

Following a revamp of its operations, Ryobi Technologies Canada Inc. has closed its distribution centre in Canada and moved its sales office: 150 Werlich Drive, Units 5 & 6, Cambridge, ON N1T 1N6. Phone: (519) 624-2222; fax: (519) 624-0600. The mailing address remains the same: P.O. Box 910, Cambridge, ON N1R 6K2.

Sears Roebuck and Co. plans to open three “Appliance & Electronics” test stores that will focus on electronics and household appliances. The company has stated that its hardlines unit, selling appliances, tools and home electronics, has had stronger performance than its softlines. The stores will be about 20,000 sq.ft., slightly larger than the space devoted to those categories in the larger Sears department stores. The first test store will open in Indiana in June, and two stores in suburban Chicago are set to open in October. Up to 100 stores are in the forecast.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 25.20 15.05 23.40

Canfor 16.95 7.65 11.00

Goodfellow 11.00 8.00 8.75

Home Depot 49.74 47.61 49.88

Hudsons Bay 17.65 12.40 17.15

Lowe’s 64.90 34.25 64.21

Sears Canada 37.25 18.55 21.15

Taiga Forest 10.00 6.80 7.60

West Fraser 36.50 21.00 33.05

______________________________________________

A human being: an ingenious assembly of portable plumbing.”

Christopher Morley (U.S. writer, 1890-1957)

______________________________________________

PEOPLE ON THE MOVE

TruServ Canada has made some changes to its Member Development team. The new structure will comprise three regional managers. Wilf Gerhardt has been appointed regional manager for the West. A 31-year veteran of the company, he was previously the sales development & store planning manager … Hugh Matson, formerly member development sales manager, has been appointed regional manager for the Eastern region. He has been with the company for 15 years … Regional manager for the Central region is yet to be named … Sid Kucheravy, previously sales development manager, takes on the role of project manager. His immediate task will be to manage the rollout of the new C&S Choices format for TruServ’s variety/department store members … Garry Ford is newly appointed district manager for Newfoundland. He joins TruServ with 19 years experience in wholesale and sales management. (204-453-9511)

Clint Ellicott has been appointed Ontario sales manager for Lafarge Gypsum. He transferred to Lafarge’s Gypsum division from its construction materials group, where he previously held the position of sales manager for packaged materials. (905-629-5444)

Annette Verschuren, president of Home Depot Canada, was given an honorary degree in law from St. Francis Xavier University in Antigonish, NS at its spring convocation on May 6. A native of Nova Scotia who grew up on a farm in Cape Breton, Verschuren is an alumna of St. Francis Xavier. (416-609-0852)

Two new product managers have been named at Do it Best Corp. in Fort Wayne, IN. Marty Wiggins has joined as plumbing department product manager. He was formerly with Rowe Marketing Group and McCoy’s in Texas … Brian Newton has been promoted to product manager of housewares. He was formerly associate product manager (219-748-5300)

Home Depot Inc. has named Carol Tome executive vice-president and CFO, effective immediately … The company also appointed Dennis Carey to vice-president of business development, strategy and corporate operations. Tome was most recently senior vice-president of finance and accounting, and treasurer. (770-433-8211)

Kmart Co. has appointed Jeffrey Boyer executive vice-president and CFO, effective immediately. Boyer’s background includes Sears Roebuck and Co., where he was CFO and senior vice-president. Boyer succeeds Martin Welch, who is taking early retirement.

(248-643-1000)

(248) 643-1000

_______________________________________________

MARKET INDICATORS

The value of building permits fell in March for the second consecutive month. Builders took out $3.1 billion in permits that month, a decline of 11.5%. Residential intentions dropped even more — by 13.5%, to $1.7 billion. However, for the first quarter, residential permits were up 9.4% over the first quarter of 2000. Much of the increase is due to multi-family housing intentions, especially in British Columbia (+29.9%). Residential permits in B.C. were up 27.1% overall, to $685 million, while Ontario was up 11.8% to $2.9 billion.

New housing prices increased 0.3% from February to March. Year over year, the March New Housing Price Index rose 2.6%, compared with March 2000. Monthly increases occurred in 13 out of 21 urban centres. The largest increase was in Saskatoon (+1.7%), as well as Winnipeg (+0.8%), Toronto (+0.5%) and Calgary, London, Montréal and Ottawa-Hull (+0.3%). The housing boom continues in the nation’s capital: the year-over-year increase in new housing prices in Ottawa-Hull was 14.6%.

Canadian commodity prices posted a 2% increase in April, the first increase after three months of successive declines. “The increase largely reflected a surge in lumber prices,” says Craig Alexander, Senior Economist at TD Bank Financial Group. Among the 12 commodities recording lower prices, pulp fared the worst, with a drop of 8%.

Against retailers’ expectations, the Ontario Government did not reduce the Provincial Sales Tax by 1%. The Retail Council of Canada estimates the cut would have pumped $1.7 billion back into Ontario shoppers’ pockets. On the other hand, Finance Minister Jim Flaherty reaffirmed the government’s tax-cutting strategy, which will give $250 million back to consumers in 2002. By 2005, retailers will finally pay the same corporate income tax rates as manufacturing and processing companies. Small retailer rates will drop half a percentage point a year to a common rate of 4%, while larger retailers will see their rate drop 1.5% a year to a common 8% rate.

______________________________________________

OVERHEARD …

The rise in Canadian commodity prices is unlikely to be sustained,” says Craig Alexander, Senior Economist at TD Bank Financial Group. “The ongoing U.S. economic slowdown and weakening demand in Europe and Asia spell lower commodity prices in the coming months.”

______________________________________________

* * * * *HARDLINES MARKETPLACE* * * *

(Check out Hardlines Classifieds on the web: hardlines.ca <https://hardlines.ca/> )

______________________________________________

______________________________________________

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

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs —business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.ca/ or call 905-693-0092

______________________________________________

* * * * * *

SALES MANAGER – SOUTH WESTERN ONTARIO:

EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

Entrance requirements: Post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

Submit résumé before May 4th, 2001 to Herb deJong, EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7.

* * * * * *

SALES MERCHANDISING REPRESENTATIVE:

Canadian Manufacturer of quality products requires a SALES MERCHANDISING REP. to start immediately. The position includes major emphasis on box store businesses plus other account responsibilities in the GTA.

Requirements: 1-3 years related exp. in consumer products, excellent computer skills and the ability to travel frequently. A post secondary education in Business Admin. or Marketing is

an asset. Fax résumé to 905-459-2791.

* * * * * *

BUILDING SALES COORDINATORS (3):

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members. We are seeking three BUILDING SALES COORDINATORS with the experience to provide sales, technical and estimating support to field staff engaged in building sales and service activities throughout the province.

Candidates will work with the marketers, technical support group and field personnel to develop and implement building market opportunities in the designated geographic area. The locations are Calgary, Red Deer and Edmonton.

Applicants should have a community college diploma with 3 to 5 years of agricultural and construction experience as well as sales and marketing experience. A working knowledge of Microsoft Office products is preferred. Applicants will be required to travel within the designated area.

Interested applicants are invited to apply, stating geographic preference, to the address indicated by May 18, 2001. Human Resources, United Farmers of Alberta; 1016 68th Avenue SW; Calgary, AB T2V 4J2;Fax: 403-258-7630; email: résumés@ufa.com

We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

ACCOUNT REPRESENTATIVE:

Dow Chemical Canada Inc. is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of approximately $30 billion, Dow serves customers in 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others.

Committed to the principles of sustainable development, Dow and its 50,000 employees seek to balance economic, environmental and social responsibilities. For further information about Dow, visit http://www.dow.com/

Dow Chemical Canada Inc. is seeking a qualified person to represent them to builders, renovators, building supply dealers and distributors in Manitoba. The Fabricated Products team of the Dow Chemical Co. has an ACCOUNT REPRESENTATIVE opening in Winnipeg, MB. This high-energy role will maximize the sale of Styrofoam brand products to the architectural and residential markets of the assigned territory.

Qualifications: Candidates must have the ability to combine technical and commercial skills. The position requires constant and persistent calls on architects, residential builders, and general contractors as well as channel members such as distributors, and lumber dealers. The ability to generate a specification, hold it and close the sale is vital to success in this position. Candidates for this job should have a high degree of comfort in delivering sales and educational presentations to groups.

Candidates must have: a Bachelors Degree; a minimum of 5 years sales experience; exceptional relationship and interpersonal skills; initiative. To apply for this position, please visit our web site at http://www.careersatdow.com/ and look for MDG0001.

* * * * * *

RETAIL PRODUCT MANAGER:

A well-established company requires an energetic person to manage the marketing of its retail product lines. Experience and understanding of all aspects of the retail hardlines – Multi SKU – business, combined with a strong sales background, is a must.

Applicants must be graduates of a sales and marketing program, have above average computer skills and possess excellent written and verbal communication skills.

Send or fax résumé to the attention of Luann Busch, Personnel. Canada Cordage Inc. 50 Ottawa St. S. Kitchener, ON; N2G 3S7; fax: 519-745-4290.

______________________________________________

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

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

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

______________________________________________

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.

HARDLINES™ the electronic newsletter hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: mailto:buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: mailto:nancy@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

© 2001 by Michael McLarney.

______________________________________________

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.

 

May7_01

HARDLINES

Canada’s electronic information service for the home improvement industry

May 7, 2001

Volume vii, #18

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

* * * * * *

IN THIS ISSUE:

* Life after Beaver: Ace remains committed to Canadian growth

* Canadian Tire’s 1Q profits up, same-store sales flat

* New Hardlines conference focuses on industry education, competitive intelligence

* West Fraser’s retail division has increased 1Q profits, flat sales

* * * * * *

DAILY UPDATES FROM HARDLINES

Join us each morning at hardlines.ca. News updated every day.

______________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

CANADIAN TIRE 1Q PROFITS UP,

SAME STORE SALES DOWN

Despite a slow start to the year that negatively affected its retail business, Canadian Tire Corp. reported first quarter profits of $28.7 million, up 18.9% from $24.2 million in the same period a year earlier.

The bright profit picture for the corporation was due in part to $8 million from the sale of Hamilton Discount and an influx of receivables. The petroleum division also fared well. However, the retail division didn’t do so well. Total sales for Canadian Tire Retail were up only 0.4% from the first quarter of 2000, due to bad weather.

Wayne Sales, president and CEO of CTC, said in a prepared statement that hardware, housewares and home improvement products sold well, though seasonal felt the brunt of poor weather in March — a trend that was reversed by April, he added.

Growth continues to come from new and expanded store openings, as same-store sales were down 5.2%. CTC’s wholesale shipments to member dealers were up 1.9%, pushing CTC’s own sales from its distribution centre up 1.5% to $845.4 million, from $833.0 million in the first quarter of 2000. However, operating earnings were 24% lower than last year as a result of higher operating costs of its new larger stores, as well as continued investment in its e-commerce initiative, which cost the retail division $7 million during the first quarter. Expansion of the PartSource automotive chain drained another $4 million.

During the first quarter, CTC opened four more new-format stores, for a total of 237 that have been opened since the program was initiated in 1994. The company’s total store network also increased to 443 stores by the end of the first quarter.

______________________________________________

LIFE AFTER BEAVER:

ACE SEEKS GROWTH THROUGH BUYING GROUPS

With 5,200 stores in 68 countries, Ace Hardware is not about to pack up its tent and go home. That was the message from Paul Ingevaldson, senior vice-president international and technology, to a group of vendors at a breakfast meeting hosted by the Canadian Hardware & Housewares Manufacturers Association.

Ace’s success, he said, was in its strong store programs and US$3 billion of wholesale buying power, backed by a retailer network that generates US$13 billion in sales. Growth in Canada will come both from signing new independent dealers and from conversions of dealers that are now receiving Ace product through supply agreements with their buying groups.

Ace entered the Canadian market in November 1995 under a supply agreement with Beaver Lumber. It lost that business when Beaver was sold to Home Hardware Stores, although a few Beaver dealers who have not yet made the switch or have chosen against becoming Home dealers are still being supplied by Ace. However, the volume of the Beaver business will be replaced in under three years, Ingevaldson predicts. “We are very optimistic that there is life after Beaver.”

Ace wants to have 500 Ace bannered stores in Canada eventually, as part of a North American expansion plan that includes Mexico.

Looking to the future of the business, Ingevaldson said, “We don’t want to be just a wholesaler, like some our competition.” Rather, a distributor must provide support services and programs to help the independent compete against the big boxes.

The dealers, too, must make concessions to their established notions of how to do business. They must be prepared to develop a “chain store” mentality to help them compete. For example, many IT functions are being done in house that could be pooled or shared through their wholesaler. Buying groups, too, have to think in collective terms and he pointed to three Matreco members that have agreed to share the Tim-BR Mart name nationally.

(Paul Ingevaldson will be a keynote speaker at our Hardlines Marketing Conference on September 13. You don’t want to miss this one! – MM)

______________________________________________

HARDLINES’S NEWEST CONFERENCE PUTS EMPHASIS ON EDUCATION

Understanding the competitive landscape of today’s retail home improvement scene is the purpose of a brand new conference by Hardlines. The Retail Strategies Symposium will provide an easy-to-understand overview of the industry: the key players at retail, growth of the big boxes, consolidation within the distribution channel, and how the buying groups connect.

The event will include an international perspective: special guest speaker John Caulfield, editor of National Home Center News in New York, will give an overview of the U.S. market and the key retail players there.

The new conference is aimed at marketing and sales people who need to understand their retail customers more thoroughly, as well as retail owners and managers who want to understand their competitive position better.

The Retail Strategies Symposium will be held September 12, back to back with the sixth Annual Hardlines Marketing Conference on September 13. For more information, email or call us at 416-489-3396.

______________________________________________

COMPANIES IN THE NEWS

West Fraser Timber reported 1Q earnings of $16 million, compared with $42 million in the first quarter of 2000. Sales during the period were $530 million, compared with $551 million. EBITDA was $75 million for the quarter, compared with $119 million in the first quarter of 2000 and $92 million in the last quarter. West Fraser’s retail home improvement business (comprising Revelstoke Home Centres) had EBITDA of $3 million, up from $2 million a year earlier period, but down from $11 million in 4Q 2000. Sales were flat at $125.1 million.

Home Depot in the U.S. has announced a deal to buy Total HOME, Mexico’s second-largest home improvement chain. Total HOME has three stores in Monterrey and one in Mexico City, averaging 80,000-sq.ft. of retail space plus outside area devoted to lawn & garden and building materials. Each warehouse-style store stocks approximately 30,000 SKUs and serves both DIYers and the contractors. The cash deal is expected to close in about six weeks.

Hudson’s Bay Co. could close as many as 10 stores in the next five years, says company president Marc Chouinard. Big box concepts such as the Home Outfitters store, and an undisclosed specialty store now in development, will be the retailer’s focus.

Primex Forest Products Ltd. announced first quarter sales of $47.05 million, compared with $47.6 million for the corresponding period in 2000. Earnings were adversely affected by lower residual-wood chip prices.

Home Depot Inc. has expanded its online ordering service across the U.S., after running pilot programs in Las Vegas, NV, and San Antonio and Austin, TX. Consumers can order about 20,000 different items online, compared with the roughly 50,000 that each traditional store carries. Home Depot’s shipping partner, UPS, has weight and size restrictions on what it will carry, meaning one can’t order large items such as appliances, drywall or lumber online.

Wal-Mart Stores Inc. will continue its expansion into Germany with the renovation of existing stores in that country. The company denied reports that it was scrapping plans for a 50-store expansion. Wal-Mart first entered the German market in 1997 and currently has 94 stores. The retailer has renovated 24 stores in Germany.

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 25.20 15.05 22.60

Canfor 16.95 7.65 11.40

Goodfellow 11.00 8.00 9.00

Home Depot 49.74 47.61 49.59

Hudsons Bay 17.65 12.40 17.65

Lowe’s 64.90 34.25 64.21

Sears Canada 37.25 18.55 20.70

Taiga Forest 10.00 6.80 7.80

West Fraser 36.50 21.00 35.50

______________________________________________

An army marches on its stomach.”

Napoleon Bonaparte (1769-1821)

______________________________________________

PEOPLE ON THE MOVE

Canada Wood Specialties Inc. has added three new reps for Western Canada: Dave Masniuk will handle Manitoba and Saskatchewan, Audrey Peitsch is in Alberta, and Michael McUuliffe is rep for British Columbia. (705-326-1301)

_______________________________________________

MARKET INDICATORS

Housing starts in March reached 153,800 units, down 1.5% from February, according to Stats Canada. Québec’s residential construction was down for the first time since the beginning of the year, with starts in March down 18%, compared with February. This drop was attributable to single starts, which were down by 14%. Multiple housing starts decreased by 15%. British Columbia’s urban housing starts for the same month were up 13%, totalling 795. Single detached starts were up 3% with 414 starts, while multiple family starts were up 27%, with 381 starts.

The New Housing Price Index rose 0.3% from January to February, according to Stats Canada. This index of contractors’ selling prices was 2.4% higher in February than it was in February 2000. Monthly increases occurred in 12 of the 21 urban centres surveyed. The largest increase was registered in the Montréal area, up 0.9% from January. Higher prices for building materials, labour and land were among the reasons for the increase. On a year-over-year basis, Ottawa-Hull once again posted the largest increase (+14.2%), followed by Montréal, Halifax and Kitchener-Waterloo. Saint John-Moncton-Fredericton posted the largest annual decrease (-1.7%).

Retail trade in Canada fell 0.3% in February to $23.6 billion after creeping up 0.5% in January. In February, consumers spent less in automotive (-1.8%), furniture (-1.5%), and clothing (-0.7%). General merchandise spending was up 1.4%, while department store sales dropped 1.1%. “Other” (including hardware stores and sporting goods) actually increased by 0.2%.

______________________________________________

OVERHEARD …

I have no trouble shipping to Israel, Saudi Arabia or China. But shipping to Canada and Mexico — boy, that’s tough.”

Paul Ingevaldson, vice-president international and technology, of Ace Hardware Corp. At a recent CHHMA breakfast meeting he explained the difficulties of overcoming the hidden tariffs posed by language and certification laws of his closest neighbours.

______________________________________________

______________________________________________

* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

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

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs —business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.ca/ or call 905-693-0092

______________________________________________

* * * * * *

SALES MANAGER – SOUTH WESTERN ONTARIO:

EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

Entrance requirements: Post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

Submit résumé before May 4th, 2001 to Herb deJong, EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7.

* * * * * *

SALES MERCHANDISING REPRESENTATIVE:

Canadian Manufacturer of quality products requires a SALES MERCHANDISING REP. to start immediately. The position includes major emphasis on box store businesses plus other account responsibilities in the GTA.

Requirements: 1-3 years related exp. in consumer products, excellent computer skills and the ability to travel frequently. A post secondary education in Business Admin. or Marketing an asset. Fax résumé to 905-459-2791.

* * * * * *

TERRITORY SALES REPRESENTATIVE:

A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls.

The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your résumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted.

* * * * * *

B.C. SALES AGENT — PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

* * * * * *

BUILDING SALES COORDINATORS (3):

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members. We are seeking three BUILDING SALES COORDINATORS with the experience to provide sales, technical and estimating support to field staff engaged in building sales and service activities throughout the province.

Candidates will work with the marketers, technical support group and field personnel to develop and implement building market opportunities in the designated geographic area. The locations are Calgary, Red Deer and Edmonton.

Applicants should have a community college diploma with 3 to 5 years of agricultural and construction experience as well as sales and marketing experience. A working knowledge of Microsoft Office products is preferred. Applicants will be required to travel within the designated area.

Interested applicants are invited to apply, stating geographic preference, to the address indicated by May 18, 2001. Human Resources, United Farmers of Alberta; 1016 68th Avenue SW; Calgary, AB T2V 4J2;Fax: 403-258-7630; email: résumés@ufa.com

We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

ACCOUNT REPRESENTATIVE:

Dow Chemical Canada Inc. is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of approximately $30 billion, Dow serves customers in 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others.

Committed to the principles of sustainable development, Dow and its 50,000 employees seek to balance economic, environmental and social responsibilities. For further information about Dow, visit http://www.dow.com/

Dow Chemical Canada Inc. is seeking a qualified person to represent them to builders, renovators, building supply dealers and distributors in Manitoba. The Fabricated Products team of the Dow Chemical Co. has an ACCOUNT REPRESENTATIVE opening in Winnipeg, MB. This high-energy role will maximize the sale of Styrofoam brand products to the architectural and residential markets of the assigned territory.

Qualifications: Candidates must have the ability to combine technical and commercial skills. The position requires constant and persistent calls on architects, residential builders, and general contractors as well as channel members such as distributors, and lumber dealers. The ability to generate a specification, hold it and close the sale is vital to success in this position. Candidates for this job should have a high degree of comfort in delivering sales and educational presentations to groups.

Candidates must have: a Bachelors Degree; a minimum of 5 years sales experience; exceptional relationship and interpersonal skills; initiative. To apply for this position, please visit our web site at http://www.careersatdow.com/ and look for MDG0001.

* * * * * *

RETAIL PRODUCT MANAGER:

A well-established company requires an energetic person to manage the marketing of its retail product lines. Experience and understanding of all aspects of the retail hardlines – Multi SKU – business, combined with a strong sales background, is a must.

Applicants must be graduates of a sales and marketing program, have above average computer skills and possess excellent written and verbal communication skills.

Send or fax résumé to the attention of Luann Busch, Personnel. Canada Cordage Inc. 50 Ottawa St. S. Kitchener, ON; N2G 3S7; fax: 519-745-4290.

______________________________________________

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

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

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

______________________________________________

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

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

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: mailto:buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: mailto:nancy@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

© 2001 by Michael McLarney.

______________________________________________

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

May 7, 2001

Volume vii, #18

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

* * * * * *

IN THIS ISSUE:

* Life after Beaver: Ace remains committed to Canadian growth

* Canadian Tire’s 1Q profits up, same-store sales flat

* New Hardlines conference focuses on industry education, competitive intelligence

* West Fraser’s retail division has increased 1Q profits, flat sales

* * * * * *

DAILY UPDATES FROM HARDLINES

Join us each morning at hardlines.ca. News updated every day.

______________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

CANADIAN TIRE 1Q PROFITS UP,

SAME STORE SALES DOWN

Despite a slow start to the year that negatively affected its retail business, Canadian Tire Corp. reported first quarter profits of $28.7 million, up 18.9% from $24.2 million in the same period a year earlier.

The bright profit picture for the corporation was due in part to $8 million from the sale of Hamilton Discount and an influx of receivables. The petroleum division also fared well. However, the retail division didn’t do so well. Total sales for Canadian Tire Retail were up only 0.4% from the first quarter of 2000, due to bad weather.

Wayne Sales, president and CEO of CTC, said in a prepared statement that hardware, housewares and home improvement products sold well, though seasonal felt the brunt of poor weather in March — a trend that was reversed by April, he added.

Growth continues to come from new and expanded store openings, as same-store sales were down 5.2%. CTC’s wholesale shipments to member dealers were up 1.9%, pushing CTC’s own sales from its distribution centre up 1.5% to $845.4 million, from $833.0 million in the first quarter of 2000. However, operating earnings were 24% lower than last year as a result of higher operating costs of its new larger stores, as well as continued investment in its e-commerce initiative, which cost the retail division $7 million during the first quarter. Expansion of the PartSource automotive chain drained another $4 million.

During the first quarter, CTC opened four more new-format stores, for a total of 237 that have been opened since the program was initiated in 1994. The company’s total store network also increased to 443 stores by the end of the first quarter.

______________________________________________

LIFE AFTER BEAVER:

ACE SEEKS GROWTH THROUGH BUYING GROUPS

With 5,200 stores in 68 countries, Ace Hardware is not about to pack up its tent and go home. That was the message from Paul Ingevaldson, senior vice-president international and technology, to a group of vendors at a breakfast meeting hosted by the Canadian Hardware & Housewares Manufacturers Association.

Ace’s success, he said, was in its strong store programs and US$3 billion of wholesale buying power, backed by a retailer network that generates US$13 billion in sales. Growth in Canada will come both from signing new independent dealers and from conversions of dealers that are now receiving Ace product through supply agreements with their buying groups.

Ace entered the Canadian market in November 1995 under a supply agreement with Beaver Lumber. It lost that business when Beaver was sold to Home Hardware Stores, although a few Beaver dealers who have not yet made the switch or have chosen against becoming Home dealers are still being supplied by Ace. However, the volume of the Beaver business will be replaced in under three years, Ingevaldson predicts. “We are very optimistic that there is life after Beaver.”

Ace wants to have 500 Ace bannered stores in Canada eventually, as part of a North American expansion plan that includes Mexico.

Looking to the future of the business, Ingevaldson said, “We don’t want to be just a wholesaler, like some our competition.” Rather, a distributor must provide support services and programs to help the independent compete against the big boxes.

The dealers, too, must make concessions to their established notions of how to do business. They must be prepared to develop a “chain store” mentality to help them compete. For example, many IT functions are being done in house that could be pooled or shared through their wholesaler. Buying groups, too, have to think in collective terms and he pointed to three Matreco members that have agreed to share the Tim-BR Mart name nationally.

(Paul Ingevaldson will be a keynote speaker at our Hardlines Marketing Conference on September 13. You don’t want to miss this one! – MM)

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HARDLINES’S NEWEST CONFERENCE PUTS EMPHASIS ON EDUCATION

Understanding the competitive landscape of today’s retail home improvement scene is the purpose of a brand new conference by Hardlines. The Retail Strategies Symposium will provide an easy-to-understand overview of the industry: the key players at retail, growth of the big boxes, consolidation within the distribution channel, and how the buying groups connect.

The event will include an international perspective: special guest speaker John Caulfield, editor of National Home Center News in New York, will give an overview of the U.S. market and the key retail players there.

The new conference is aimed at marketing and sales people who need to understand their retail customers more thoroughly, as well as retail owners and managers who want to understand their competitive position better.

The Retail Strategies Symposium will be held September 12, back to back with the sixth Annual Hardlines Marketing Conference on September 13. For more information, email or call us at 416-489-3396.

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COMPANIES IN THE NEWS

West Fraser Timber reported 1Q earnings of $16 million, compared with $42 million in the first quarter of 2000. Sales during the period were $530 million, compared with $551 million. EBITDA was $75 million for the quarter, compared with $119 million in the first quarter of 2000 and $92 million in the last quarter. West Fraser’s retail home improvement business (comprising Revelstoke Home Centres) had EBITDA of $3 million, up from $2 million a year earlier period, but down from $11 million in 4Q 2000. Sales were flat at $125.1 million.

Home Depot in the U.S. has announced a deal to buy Total HOME, Mexico’s second-largest home improvement chain. Total HOME has three stores in Monterrey and one in Mexico City, averaging 80,000-sq.ft. of retail space plus outside area devoted to lawn & garden and building materials. Each warehouse-style store stocks approximately 30,000 SKUs and serves both DIYers and the contractors. The cash deal is expected to close in about six weeks.

Hudson’s Bay Co. could close as many as 10 stores in the next five years, says company president Marc Chouinard. Big box concepts such as the Home Outfitters store, and an undisclosed specialty store now in development, will be the retailer’s focus.

Primex Forest Products Ltd. announced first quarter sales of $47.05 million, compared with $47.6 million for the corresponding period in 2000. Earnings were adversely affected by lower residual-wood chip prices.

Home Depot Inc. has expanded its online ordering service across the U.S., after running pilot programs in Las Vegas, NV, and San Antonio and Austin, TX. Consumers can order about 20,000 different items online, compared with the roughly 50,000 that each traditional store carries. Home Depot’s shipping partner, UPS, has weight and size restrictions on what it will carry, meaning one can’t order large items such as appliances, drywall or lumber online.

Wal-Mart Stores Inc. will continue its expansion into Germany with the renovation of existing stores in that country. The company denied reports that it was scrapping plans for a 50-store expansion. Wal-Mart first entered the German market in 1997 and currently has 94 stores. The retailer has renovated 24 stores in Germany.

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CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 25.20 15.05 22.60

Canfor 16.95 7.65 11.40

Goodfellow 11.00 8.00 9.00

Home Depot 49.74 47.61 49.59

Hudsons Bay 17.65 12.40 17.65

Lowe’s 64.90 34.25 64.21

Sears Canada 37.25 18.55 20.70

Taiga Forest 10.00 6.80 7.80

West Fraser 36.50 21.00 35.50

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An army marches on its stomach.”

Napoleon Bonaparte (1769-1821)

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PEOPLE ON THE MOVE

Canada Wood Specialties Inc. has added three new reps for Western Canada: Dave Masniuk will handle Manitoba and Saskatchewan, Audrey Peitsch is in Alberta, and Michael McUuliffe is rep for British Columbia. (705-326-1301)

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MARKET INDICATORS

Housing starts in March reached 153,800 units, down 1.5% from February, according to Stats Canada. Québec’s residential construction was down for the first time since the beginning of the year, with starts in March down 18%, compared with February. This drop was attributable to single starts, which were down by 14%. Multiple housing starts decreased by 15%. British Columbia’s urban housing starts for the same month were up 13%, totalling 795. Single detached starts were up 3% with 414 starts, while multiple family starts were up 27%, with 381 starts.

The New Housing Price Index rose 0.3% from January to February, according to Stats Canada. This index of contractors’ selling prices was 2.4% higher in February than it was in February 2000. Monthly increases occurred in 12 of the 21 urban centres surveyed. The largest increase was registered in the Montréal area, up 0.9% from January. Higher prices for building materials, labour and land were among the reasons for the increase. On a year-over-year basis, Ottawa-Hull once again posted the largest increase (+14.2%), followed by Montréal, Halifax and Kitchener-Waterloo. Saint John-Moncton-Fredericton posted the largest annual decrease (-1.7%).

Retail trade in Canada fell 0.3% in February to $23.6 billion after creeping up 0.5% in January. In February, consumers spent less in automotive (-1.8%), furniture (-1.5%), and clothing (-0.7%). General merchandise spending was up 1.4%, while department store sales dropped 1.1%. “Other” (including hardware stores and sporting goods) actually increased by 0.2%.

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OVERHEARD …

I have no trouble shipping to Israel, Saudi Arabia or China. But shipping to Canada and Mexico — boy, that’s tough.”

Paul Ingevaldson, vice-president international and technology, of Ace Hardware Corp. At a recent CHHMA breakfast meeting he explained the difficulties of overcoming the hidden tariffs posed by language and certification laws of his closest neighbours.

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* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

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

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs —business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.ca/ or call 905-693-0092

______________________________________________

* * * * * *

SALES MANAGER – SOUTH WESTERN ONTARIO:

EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

Entrance requirements: Post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

Submit résumé before May 4th, 2001 to Herb deJong, EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7.

* * * * * *

SALES MERCHANDISING REPRESENTATIVE:

Canadian Manufacturer of quality products requires a SALES MERCHANDISING REP. to start immediately. The position includes major emphasis on box store businesses plus other account responsibilities in the GTA.

Requirements: 1-3 years related exp. in consumer products, excellent computer skills and the ability to travel frequently. A post secondary education in Business Admin. or Marketing an asset. Fax résumé to 905-459-2791.

* * * * * *

TERRITORY SALES REPRESENTATIVE:

A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls.

The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your résumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted.

* * * * * *

B.C. SALES AGENT — PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

* * * * * *

BUILDING SALES COORDINATORS (3):

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members. We are seeking three BUILDING SALES COORDINATORS with the experience to provide sales, technical and estimating support to field staff engaged in building sales and service activities throughout the province.

Candidates will work with the marketers, technical support group and field personnel to develop and implement building market opportunities in the designated geographic area. The locations are Calgary, Red Deer and Edmonton.

Applicants should have a community college diploma with 3 to 5 years of agricultural and construction experience as well as sales and marketing experience. A working knowledge of Microsoft Office products is preferred. Applicants will be required to travel within the designated area.

Interested applicants are invited to apply, stating geographic preference, to the address indicated by May 18, 2001. Human Resources, United Farmers of Alberta; 1016 68th Avenue SW; Calgary, AB T2V 4J2;Fax: 403-258-7630; email: résumés@ufa.com

We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

ACCOUNT REPRESENTATIVE:

Dow Chemical Canada Inc. is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of approximately $30 billion, Dow serves customers in 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others.

Committed to the principles of sustainable development, Dow and its 50,000 employees seek to balance economic, environmental and social responsibilities. For further information about Dow, visit http://www.dow.com/

Dow Chemical Canada Inc. is seeking a qualified person to represent them to builders, renovators, building supply dealers and distributors in Manitoba. The Fabricated Products team of the Dow Chemical Co. has an ACCOUNT REPRESENTATIVE opening in Winnipeg, MB. This high-energy role will maximize the sale of Styrofoam brand products to the architectural and residential markets of the assigned territory.

Qualifications: Candidates must have the ability to combine technical and commercial skills. The position requires constant and persistent calls on architects, residential builders, and general contractors as well as channel members such as distributors, and lumber dealers. The ability to generate a specification, hold it and close the sale is vital to success in this position. Candidates for this job should have a high degree of comfort in delivering sales and educational presentations to groups.

Candidates must have: a Bachelors Degree; a minimum of 5 years sales experience; exceptional relationship and interpersonal skills; initiative. To apply for this position, please visit our web site at http://www.careersatdow.com/ and look for MDG0001.

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RETAIL PRODUCT MANAGER:

A well-established company requires an energetic person to manage the marketing of its retail product lines. Experience and understanding of all aspects of the retail hardlines – Multi SKU – business, combined with a strong sales background, is a must.

Applicants must be graduates of a sales and marketing program, have above average computer skills and possess excellent written and verbal communication skills.

Send or fax résumé to the attention of Luann Busch, Personnel. Canada Cordage Inc. 50 Ottawa St. S. Kitchener, ON; N2G 3S7; fax: 519-745-4290.

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THE HARDLINES MARKETPLACE: just $16 per line.

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

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

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

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

______________________________________________

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

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

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: mailto:buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca

Nancy Wright, Circulation Manager: mailto:nancy@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

© 2001 by Michael McLarney.

______________________________________________

THE HARDLINES “FAIR PLAY” POLICY:

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

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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.

 

April30_01

HARDLINES

Canada’s electronic information service for the home improvement industry

April 30, 2001

Volume vii, #17

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca <mailto:mike@hardlines.ca%20>

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

* * * * * *

IN THIS ISSUE:

* TruServ close to regaining ownership from U.S. parent

* Re-merchandising program makes Kenroc more trades friendly

* Softwood lumber dispute moves on to hearings

* * * * * *

DAILY UPDATES FROM HARDLINES

Join us each morning at hardlines.ca <https://hardlines.ca/> . News updated every day.

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TRUSERV IN NEGOTIATIONS TO SEVER TIES WITH U.S. PARENT

TruServ Canada is close to regaining financial control of itself. Since the takeover of Macleod-Stedman Inc. a decade ago by TruServ Corp. (then Cotter & Co.), the U.S. co-op has been a majority shareholder of the Winnipeg-based co-operative. Under the new arrangement, the U.S. parent has agreed to sell the Canadian operation back to its Canadian members.

A letter of intent was approved last week by the boards of directors of TruServ in both Canada and the U.S. for a financing deal that is expected to be finalized within 90 days. Under the new arrangement, the Canadian membership, which comprises some 600 stores, will have 100% ownership of the company. Currently, the U.S. company holds 47% of the financial control and 87% of voting control.

The big issue was regaining control of our own destiny by having 100% voting control of the co-operative,” says Léo Charrière, COO of TruServ Canada. The finalization of this deal, he adds, is a full decade ahead of the timeline anticipated when the deal was originally struck.

TruServ Canada will continue to maintain ties with its U.S. counterpart, including the payment of a licensing fee for use of the TruServ name.

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Softwood lumber dispute moves on to hearing stage

The $8-billion softwood lumber dispute went into court earlier last week, after a failure of Canadian and U.S. political leaders to come to any agreement during the recent Summit of the Americas in Québec City. Trade Minister Pierre Pettigrew was criticized by industry leaders for not having thrown himself wholeheartedly into negotiations.

The head of Weyerhaeuser Co. even entered the fray, sending a letter to U.S. and Canadian leaders requesting their support for a government-sponsored envoy process to solve the dispute. But the idea found little support in Washington. Pettigrew has said it is unlikely the potentially crippling dispute would be solved by envoys.

The U.S. International Trade Commission’s hearing is based on claims by the U.S. lumber industry that a flood of “illegally” low-priced Canadian softwood imports has contributed to the closure of more than 150 American lumber mills. The industry is demanding anti-dumping duties of between 26% and 38%.

Unbelievably, Robert Byrd, a Virginia Senator, has introduced legislation that would allow producers to keep any U.S. award regardless of whether it is eventually overturned by an international panel such as the World Trade Organization. (Another example of why cousins shouldn’t marry — Michael)

However, support for these tactics is far from unanimous, even in the U.S. On the second day of the hearing, U.S. home builders and lumber dealers testified against two of the Trade Commission’s petitions, saying different types of lumber are not interchangeable. If hidden taxes make Canadian lumber unfeasible, “we will have no choice but to turn to European producers,” said Stephen P. Conwell, global product merchant, lumber, for Home Depot in Atlanta.

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KENROC REFITS STORES TO TARGET ELUSIVE TRADE CUSTOMER

Kenroc Building Materials has undergone a re-merchandising of its seven stores in Western Canada and the one in Minneapolis, MN. The refit was a full interior upgrade that gives the stores a “crisper look,” more like a Canadian Tire store than a cluttered warehouse store, says Ken Sexton, CEO of Kenroc Building Materials Co. Ltd.

The privately owned chain, which supplies drywall, insulation, ceiling systems, stucco and steel framing to the trades, has expanded its range of products by about 400 SKUs. “We’ve moved more heavily into cement and masonry, because they overlap with the stucco trades so much,” says Sexton.

Kenroc specializes in wholesaling drywall and related supplies to local building supply dealers, as well as serving the trades. The latter, acknowledges Sexton, are an elusive group. That’s why Kenroc initiated “tradesmen’s recognition nights” at each of its stores this year. The Calgary store’s event attracted close to 200; the next one will be held in Minneapolis on May 16.

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COMPANIES IN THE NEWS

Home Hardware has introduced paint cards with peel-off colour chips for its Beauti-Tone line of paint. The chips can be peeled off the colour brochure and stuck like Post-it notes on a wall for easy viewing. Fifty new neutrals are featured in the peel-off system, with more to come. A first for Canada.

Rona recently held a staff appreciation event for the winners of its AGP training program. Some 400 staff were treated to a disco-themed party in Montréal. The AGP program (“acknowledge, guide, propose”) educates and rewards Rona staff who work at its large-surface Regional and l’entrepôt stores. The program was designed to empower staff to make customer-related decisions on the spot. The program will eventually be rolled out to all Rona stores.

Black Eagle Consulting, headed up by Richard Simms, has a new location: 928 Queen Street W., Unit 53C, Mississauga, ON. L5H 4K5. Phone: 905-891-5712; fax: 905-891-5682.

CLARIFICATION re last week’s Home Depot story: Okay, okay. It’s Hilti. Hilti. Hilti. I got it already! (Can you believe a Hilti service van actually drove by the World Headquarters the morning after the last issue came out. Some greater power reminding of my folly. Scary, kids! — Michael)

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PEOPLE IN THE MOVE

Jennifer Smith has joined the Canadian Retail Hardware Association handling member services & legislative affairs. She replaces Bernadette Morin, who has left the industry. (905-821-3470)

Irene Hopmans, manager of marketing and communications for Homecare Building Centres Ltd., retired at the end of April. No replacement has been named as yet. (905-671-2424)

Apex Sales Development Group Inc. has announced that Manfred Gangl has joined as a full partner to the firm. Gangl held senior sales and marketing positions with General Electric and Anchor Hocking Canada, a division of Newell Rubbermaid. (1-866-791-0281)

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CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 24.90 15.05 23.35

Canfor 19.80 7.65 10.92

Goodfellow 12.55 8.50 9.20

Home Depot 70.00 34.68 48.10

Hudsons Bay 19.10 12.40 17.75

Lowe’s 67.25 34.25 62.10

Sears Canada 41.00 19.60 20.75

Taiga Forest 14.20 6.80 7.35

West Fraser 38.00 21.00 33.80

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A puritan’s a person who pours righteous indignation into the wrong things.” — G.K. Chesterton (1874-1936)

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MARKET INDICATORS

Prices of goods and services in the Consumer Price Index (CPI) basket rose an average of 2.5% in March, compared with March 2000. This is the lowest increase since August 2000. Higher food and energy prices were responsible for almost 50% of the advance in the CPI in March. February’s increase had been 2.9%.

Wholesalers saw their sales fall in February as a result of the slump in the automobile sector, which accounts for 17% of wholesale activity. Total wholesale sales fell to $31.8 billion, down 1.6% from January. Had it not been for the decline in motor vehicles and related products, wholesale sales would have risen a modest 0.3%. Increases were reported in seven out of the 11 groups, including the lumber and building materials sector, which rose 1.3%.

Statistics Canada’s confidential report for the Canadian Institute of Plumbing & Heating shows that plumbing and heating wholesalers’ sales for March continue to strengthen. Sales for March were $237 million, bringing the year-to-date total to $642 million for 2001. That is a 1% increase from the record sales of 2000. Considering the tough weather in January and February, which hampered construction across Canada, the results are surprising. First quarter sales in Alberta were up 10% from 2000, and 1.5% in Atlantic. No change in British Columbia. All other regions showed declines: Québec 3%, Ontario 1%, West down 2%. By product group, changes were as follows: first quarter sales of hydronics were up 17%; PVF sales were up 4%; HVAC/R reported no change; plumbing sales decreased by 1% and waterworks sales were down by 2%.

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* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

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

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs —business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.ca or call 905-693-0092

* * * * * *

SALES MANAGER – SOUTH WESTERN ONTARIO:

EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

Applicant requirements include a post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

Submit résumé before May 4th, 2001 to Herb deJong EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7

* * * * * *

SALES MERCHANDISING REPRESENTATIVE:

Canadian manufacturer of quality products requires a SALES MERCHANDISING REP. to start immediately.

The position includes: major emphasis on box store businesses plus other account responsibilities in the GTA.

Requirements: 1-3 years related exp. with consumer products, excellent computer skills and the ability to travel frequently. A post —secondary education in Business Administration or Marketing is an asset. Fax résumé to 904-459-2791.

* * * * * *

BUYER — BUILDING SUPPLIES:

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members.

Reporting to the Senior Buyer, the successful candidate will be required to negotiate the purchase of products, contracts and distribution of merchandise, and to source new products and technologies, determining preferred suppliers in the building supplies area. You will work closely with other buyers and the marketing group.

Applicants must have a sound knowledge of purchasing, inventory management, warehousing and distribution management functions, and proficiency with Microsoft Office products. Minimum P.M.A.C. Level 3 or equivalent experience is required. Product knowledge in building supplies is essential. An agricultural background is an asset.

Interested applicants are invited to forward their résumé in confidence by April 18, 2001, quoting competition number HR01-46. Mail to: Human Resources, United Farmers of Alberta, 1016-68th Avenue SW; Calgary, AB; T2V 4J2; fax: 403-258-7630; email: resumes@ufa.com. We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

DIRECTOR, MEMBER OPERATIONS, and REGIONAL DISTRICT MANAGERS:

Our client, TruServ Canada Cooperative Inc., a major retail/distribution franchise dealer organization with a broad merchandise assortment and stores throughout Canada expressed by two major banners –True Value Hardware Stores and V&S Department stores – wishes to add several key executives to the operational/member division of the company.

The right candidates for these different opportunities will be highly motivated, intelligent, articulate, goal-oriented individuals who bring exceptional interpersonal skills to these leadership and teamwork opportunities.

To be a candidate you must have: solid operations understanding and experience; a successful track record in recruiting and developing new retail dealers/members; the ability to work within a team framework; strong leadership using both mentoring and coaching skills; a proven ability to achieve results; a clear understanding of financial budgeting, analysis, and actions required.

This unique opportunity to expand our team for the present and the future requires us to find management executives who can blend into an existing group while at the same time bring their own positive personality and characteristics.

The primary location for these positions will be the company head office in Winnipeg, but there will also be a number of opportunities throughout Canada.

Send résumé to Robert Scurfield, Robert R. Scurfield & Associates, 238 Oxford St., Winnipeg, MB, R3M 3J6; phone: 204-981-5605; fax: 204-489-6204; or email: rscurf@mb.sympatico.ca

* * * * * *

TERRITORY SALES REPRESENTATIVE:

A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls.

 

The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your résumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted.

 

* * * * * *

B.C. SALES AGENT — PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

______________________________________________

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

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

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

______________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

 

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.html

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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.

* * * * * *

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

______________________________________________

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

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca <mailto:hardlines@on.aibn.com>

Nancy Wright, Circulation Manager: nancy@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

© 2001 by Michael McLarney.

______________________________________________

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

April 30, 2001

Volume vii, #17

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca <mailto:mike@hardlines.ca%20>

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

* * * * * *

IN THIS ISSUE:

* TruServ close to regaining ownership from U.S. parent

* Re-merchandising program makes Kenroc more trades friendly

* Softwood lumber dispute moves on to hearings

* * * * * *

DAILY UPDATES FROM HARDLINES

Join us each morning at hardlines.ca <https://hardlines.ca/> . News updated every day.

______________________________________________

TRUSERV IN NEGOTIATIONS TO SEVER TIES WITH U.S. PARENT

TruServ Canada is close to regaining financial control of itself. Since the takeover of Macleod-Stedman Inc. a decade ago by TruServ Corp. (then Cotter & Co.), the U.S. co-op has been a majority shareholder of the Winnipeg-based co-operative. Under the new arrangement, the U.S. parent has agreed to sell the Canadian operation back to its Canadian members.

A letter of intent was approved last week by the boards of directors of TruServ in both Canada and the U.S. for a financing deal that is expected to be finalized within 90 days. Under the new arrangement, the Canadian membership, which comprises some 600 stores, will have 100% ownership of the company. Currently, the U.S. company holds 47% of the financial control and 87% of voting control.

The big issue was regaining control of our own destiny by having 100% voting control of the co-operative,” says Léo Charrière, COO of TruServ Canada. The finalization of this deal, he adds, is a full decade ahead of the timeline anticipated when the deal was originally struck.

TruServ Canada will continue to maintain ties with its U.S. counterpart, including the payment of a licensing fee for use of the TruServ name.

______________________________________________

Softwood lumber dispute moves on to hearing stage

The $8-billion softwood lumber dispute went into court earlier last week, after a failure of Canadian and U.S. political leaders to come to any agreement during the recent Summit of the Americas in Québec City. Trade Minister Pierre Pettigrew was criticized by industry leaders for not having thrown himself wholeheartedly into negotiations.

The head of Weyerhaeuser Co. even entered the fray, sending a letter to U.S. and Canadian leaders requesting their support for a government-sponsored envoy process to solve the dispute. But the idea found little support in Washington. Pettigrew has said it is unlikely the potentially crippling dispute would be solved by envoys.

The U.S. International Trade Commission’s hearing is based on claims by the U.S. lumber industry that a flood of “illegally” low-priced Canadian softwood imports has contributed to the closure of more than 150 American lumber mills. The industry is demanding anti-dumping duties of between 26% and 38%.

Unbelievably, Robert Byrd, a Virginia Senator, has introduced legislation that would allow producers to keep any U.S. award regardless of whether it is eventually overturned by an international panel such as the World Trade Organization. (Another example of why cousins shouldn’t marry — Michael)

However, support for these tactics is far from unanimous, even in the U.S. On the second day of the hearing, U.S. home builders and lumber dealers testified against two of the Trade Commission’s petitions, saying different types of lumber are not interchangeable. If hidden taxes make Canadian lumber unfeasible, “we will have no choice but to turn to European producers,” said Stephen P. Conwell, global product merchant, lumber, for Home Depot in Atlanta.

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KENROC REFITS STORES TO TARGET ELUSIVE TRADE CUSTOMER

Kenroc Building Materials has undergone a re-merchandising of its seven stores in Western Canada and the one in Minneapolis, MN. The refit was a full interior upgrade that gives the stores a “crisper look,” more like a Canadian Tire store than a cluttered warehouse store, says Ken Sexton, CEO of Kenroc Building Materials Co. Ltd.

The privately owned chain, which supplies drywall, insulation, ceiling systems, stucco and steel framing to the trades, has expanded its range of products by about 400 SKUs. “We’ve moved more heavily into cement and masonry, because they overlap with the stucco trades so much,” says Sexton.

Kenroc specializes in wholesaling drywall and related supplies to local building supply dealers, as well as serving the trades. The latter, acknowledges Sexton, are an elusive group. That’s why Kenroc initiated “tradesmen’s recognition nights” at each of its stores this year. The Calgary store’s event attracted close to 200; the next one will be held in Minneapolis on May 16.

______________________________________________

COMPANIES IN THE NEWS

Home Hardware has introduced paint cards with peel-off colour chips for its Beauti-Tone line of paint. The chips can be peeled off the colour brochure and stuck like Post-it notes on a wall for easy viewing. Fifty new neutrals are featured in the peel-off system, with more to come. A first for Canada.

Rona recently held a staff appreciation event for the winners of its AGP training program. Some 400 staff were treated to a disco-themed party in Montréal. The AGP program (“acknowledge, guide, propose”) educates and rewards Rona staff who work at its large-surface Regional and l’entrepôt stores. The program was designed to empower staff to make customer-related decisions on the spot. The program will eventually be rolled out to all Rona stores.

Black Eagle Consulting, headed up by Richard Simms, has a new location: 928 Queen Street W., Unit 53C, Mississauga, ON. L5H 4K5. Phone: 905-891-5712; fax: 905-891-5682.

CLARIFICATION re last week’s Home Depot story: Okay, okay. It’s Hilti. Hilti. Hilti. I got it already! (Can you believe a Hilti service van actually drove by the World Headquarters the morning after the last issue came out. Some greater power reminding of my folly. Scary, kids! — Michael)

______________________________________________

PEOPLE IN THE MOVE

Jennifer Smith has joined the Canadian Retail Hardware Association handling member services & legislative affairs. She replaces Bernadette Morin, who has left the industry. (905-821-3470)

Irene Hopmans, manager of marketing and communications for Homecare Building Centres Ltd., retired at the end of April. No replacement has been named as yet. (905-671-2424)

Apex Sales Development Group Inc. has announced that Manfred Gangl has joined as a full partner to the firm. Gangl held senior sales and marketing positions with General Electric and Anchor Hocking Canada, a division of Newell Rubbermaid. (1-866-791-0281)

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 24.90 15.05 23.35

Canfor 19.80 7.65 10.92

Goodfellow 12.55 8.50 9.20

Home Depot 70.00 34.68 48.10

Hudsons Bay 19.10 12.40 17.75

Lowe’s 67.25 34.25 62.10

Sears Canada 41.00 19.60 20.75

Taiga Forest 14.20 6.80 7.35

West Fraser 38.00 21.00 33.80

______________________________________________

A puritan’s a person who pours righteous indignation into the wrong things.” — G.K. Chesterton (1874-1936)

_______________________________________________

MARKET INDICATORS

Prices of goods and services in the Consumer Price Index (CPI) basket rose an average of 2.5% in March, compared with March 2000. This is the lowest increase since August 2000. Higher food and energy prices were responsible for almost 50% of the advance in the CPI in March. February’s increase had been 2.9%.

Wholesalers saw their sales fall in February as a result of the slump in the automobile sector, which accounts for 17% of wholesale activity. Total wholesale sales fell to $31.8 billion, down 1.6% from January. Had it not been for the decline in motor vehicles and related products, wholesale sales would have risen a modest 0.3%. Increases were reported in seven out of the 11 groups, including the lumber and building materials sector, which rose 1.3%.

Statistics Canada’s confidential report for the Canadian Institute of Plumbing & Heating shows that plumbing and heating wholesalers’ sales for March continue to strengthen. Sales for March were $237 million, bringing the year-to-date total to $642 million for 2001. That is a 1% increase from the record sales of 2000. Considering the tough weather in January and February, which hampered construction across Canada, the results are surprising. First quarter sales in Alberta were up 10% from 2000, and 1.5% in Atlantic. No change in British Columbia. All other regions showed declines: Québec 3%, Ontario 1%, West down 2%. By product group, changes were as follows: first quarter sales of hydronics were up 17%; PVF sales were up 4%; HVAC/R reported no change; plumbing sales decreased by 1% and waterworks sales were down by 2%.

______________________________________________

______________________________________________

* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

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

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs —business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.ca or call 905-693-0092

* * * * * *

SALES MANAGER – SOUTH WESTERN ONTARIO:

EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

Applicant requirements include a post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

Submit résumé before May 4th, 2001 to Herb deJong EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7

* * * * * *

SALES MERCHANDISING REPRESENTATIVE:

Canadian manufacturer of quality products requires a SALES MERCHANDISING REP. to start immediately.

The position includes: major emphasis on box store businesses plus other account responsibilities in the GTA.

Requirements: 1-3 years related exp. with consumer products, excellent computer skills and the ability to travel frequently. A post —secondary education in Business Administration or Marketing is an asset. Fax résumé to 904-459-2791.

* * * * * *

BUYER — BUILDING SUPPLIES:

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members.

Reporting to the Senior Buyer, the successful candidate will be required to negotiate the purchase of products, contracts and distribution of merchandise, and to source new products and technologies, determining preferred suppliers in the building supplies area. You will work closely with other buyers and the marketing group.

Applicants must have a sound knowledge of purchasing, inventory management, warehousing and distribution management functions, and proficiency with Microsoft Office products. Minimum P.M.A.C. Level 3 or equivalent experience is required. Product knowledge in building supplies is essential. An agricultural background is an asset.

Interested applicants are invited to forward their résumé in confidence by April 18, 2001, quoting competition number HR01-46. Mail to: Human Resources, United Farmers of Alberta, 1016-68th Avenue SW; Calgary, AB; T2V 4J2; fax: 403-258-7630; email: resumes@ufa.com. We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

DIRECTOR, MEMBER OPERATIONS, and REGIONAL DISTRICT MANAGERS:

Our client, TruServ Canada Cooperative Inc., a major retail/distribution franchise dealer organization with a broad merchandise assortment and stores throughout Canada expressed by two major banners –True Value Hardware Stores and V&S Department stores – wishes to add several key executives to the operational/member division of the company.

The right candidates for these different opportunities will be highly motivated, intelligent, articulate, goal-oriented individuals who bring exceptional interpersonal skills to these leadership and teamwork opportunities.

To be a candidate you must have: solid operations understanding and experience; a successful track record in recruiting and developing new retail dealers/members; the ability to work within a team framework; strong leadership using both mentoring and coaching skills; a proven ability to achieve results; a clear understanding of financial budgeting, analysis, and actions required.

This unique opportunity to expand our team for the present and the future requires us to find management executives who can blend into an existing group while at the same time bring their own positive personality and characteristics.

The primary location for these positions will be the company head office in Winnipeg, but there will also be a number of opportunities throughout Canada.

Send résumé to Robert Scurfield, Robert R. Scurfield & Associates, 238 Oxford St., Winnipeg, MB, R3M 3J6; phone: 204-981-5605; fax: 204-489-6204; or email: rscurf@mb.sympatico.ca

* * * * * *

TERRITORY SALES REPRESENTATIVE:

A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls.

 

The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your résumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted.

 

* * * * * *

B.C. SALES AGENT — PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

______________________________________________

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

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

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

______________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

 

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

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

______________________________________________

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

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca <mailto:hardlines@on.aibn.com>

Nancy Wright, Circulation Manager: nancy@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

© 2001 by Michael McLarney.

______________________________________________

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.

 

 

April23_01

HARDLINES

Canada’s electronic information service for the home improvement industry

April 23, 2001

Volume vii, #16

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca <mailto:mike@hardlines.ca>

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

* * * * * *

IN THIS ISSUE:

* Ace shuffles Canadian buyers

* TruServ unveils latest store program at spring show

* Home Depot Canada adds proprietary contractor tool line

* Réno-Dépôt will open its 12th big box in Québec

* * * * * *

DAILY UPDATES FROM HARDLINES

Join us each morning at hardlines.ca <https://hardlines.ca/> . News updated every day.

* * * * * *

ACE STREAMLINES CANADIAN BUYING TEAM

Ace Hardware Canada has shuffled its buying team, reducing the buying functions from four to two. The tools and hardware, plumbing and electrical, paint and décor, and seasonal categories have been streamlined under staple hardlines and seasonal. Bernie Snider, formerly product manager for hardware and tools, will head up the staple hardlines side as group merchandise manager. Dan McMurdy has been promoted from product manager for seasonal to group merchandise manager heading up the seasonal side.

According to Dunc Wilson, vice-president merchandising and marketing, the reorganization will mean all buying decisions for Canada remain in Ace’s Markham, ON office. However, he adds, the appointment of Rob Collins from the U.S. as managing director will help strengthen ties with Ace’s U.S. parent, giving it better access to North American pricing. Wilson himself was recently promoted to the vp position from director of inventory management and merchandise services.

The reshuffle included some cuts. Gone are Peter Simmons, a 28-year veteran of Beaver and Ace. He was product manager for plumbing and electrical. Calvin Ashton, formerly product manager for seasonal and flooring, is also gone. Mark Flor, director of merchandising and marketing, will retire effective June 1, 2001. Roger Miller, who was director, finance and administration, has also left, leaving controller Frank Barrese to report directly to Stan Sauer, the new vice-president of operations and administration.

______________________________________________

HOME DEPOT HAS EXCLUSIVE ON

HILTY CONTRACTOR TOOLS

The Hilty brand of heavy-duty contractor power tools, including cutting and drilling tools, has been added to Home Depot’s family of proprietary brands. The program will role out in five Toronto-area stores over the next two months, and include six or seven bays adjacent to the contractor desk. Products will be available both for purchase and through Home Depot’s instore rental outlet.

 

The arrangement has another new wrinkle: Hilty sales people will work right in the store, similar to the way cosmetics firms install their own salespeople and sales counters in mass merchants like eaton’s.

 

According to Eric Peterson, vice-president of merchandising for Home Depot Canada, the Hilty deal is part of Home Depot’s efforts to build contractor sales in Canada. “I want to grow the contractor business aggressively,” he says.

______________________________________________

 

TRUSERV ANNOUNCES RELAUNCH OF V&S BANNER

At its spring dealer show this weekend, TruServ Canada unveiled a new store name and banner for its V&S Variety stores. Renamed C&S Choices (for convenience and service), the new logo puts the emphasis on “Choices,” emphasizing the stores’ role as a convenient alternative to larger shopping destinations.

With power centres opening across the country, our stores are convenient to get to, with assortments people need from a local perspective,” says Leo Charriere, COO of TruServ Canada.

The new program, which has been under development for a year, includes signage (green with burgundy trim replaces the red and white of the V&S banner), plus interior and exterior décor, fresh layout and refined assortments.

Charriere says the co-op already has seven stores committed to test the new program. He expects at least 15 in total to sign on by the end of the year, with a full roll out to all 180 existing V&S stores starting in early 2002.

______________________________________________

COMPANIES IN THE NEWS

Réno-Dépôt will count its 12th big box in Québec with the opening in Ste-Dorothée on the west side of Laval. Scheduled to open over the May long weekend, it will be part of a power centre that includes a Wal-Mart and Canadian Tire. Réno-Dépôt also has three Building Box stores in Ontario, in Cambridge, Brampton and Scarborough.

 

Rona Retail Canada will open its second Rona Home Solutions store in Kingston, ON in January or February, 2002. That location will be followed by one in Gloucester, ON and then Mississauga, ON later in the year. The company intends to have four Ontario stores opened or signed by the end of 2002.

Home Depot stayed open on Easter Sunday for the first time in Canada, at least in the provinces where the move was legal, namely British Columbia and Manitoba.

Weyerhaeuser Co. has reported first quarter earnings of US$107 million and net sales of US$3.6 billion, compared with US$3.9 billion for the same period last year. Results were said to reflect the challenging market conditions we faced during the first quarter.

Home Depot Inc. and Lowe’s Co. have benefited from the cut in U.S. interest rates due to the greater financing activity, which is expected to spur home improvement projects. Shares for Home Depot rose 8% while shares for Lowe’s surged nearly 11%. “Lower rates mean increasing refinance activity,” said Daniel Binder of Buckingham Research Group. He added that historically, greater refinancing tends to spur remodelling projects, which aids home improvement chains.

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NOTED …

Moffat & Powell Ltd. hosted its first contractor show on April 4th , 2001. The event, held in London, ON, attracted more than 650 people, including more than 36 vendors. Moffat & Powell, a member of ILDC, has six stores in South Central Ontario.

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PEOPLE IN THE MOVE

 

Mike Russell has been promoted to the position of national sales manager for the Canadian division of Vermont American. In his new role, he will have responsibility for all V.A.’s regional rep agencies, as well as its direct sales and support staff. Russell has been with Vermont American since 1991, most recently in the position of national account manager. (905-564-1155)

 

Dave Hunter has been promoted to merchandise services manager at Ace Hardware Canada, in addition to his existing duties as inventory manager. In his newly expanded role, his duties will now include communication, advertising and catalogues. (905-475-1188)

 

At Delta Faucet Canada, Josh McKellar has joined the marketing team as the Delta Faucet Canada retail specialist. He was formerly with Kidde Safety Canada a division of Pyrene Corp., where he was the Ontario field representative. (905-712-1422)

Newell Rubbermaid Inc. has announced the following additions to its team: John P. Constantine is now vice-president, marketing of the Rubbermaid Home Products division. Constantine was formerly vice-president, marketing of the Black & Decker Power Tools … Terry R. Cole, has been named vice-president of global operations of the Burnes of Boston/Connoisseur picture frames group. His former experience includes Mary Kay and Procter & Gamble … Todd M. Pope is now vice-president sales for the Levolor division … Jeffrey D. Holler has been appointed vice president, marketing for the Levolor division … David G. Walsh is now vice-president, business development of the Levolor/Hardware Group … Dustan Flanagan has been named manager, event marketing for Newell Rubbermaid; he will be managing the recently announced NASCAR sponsorship. Flanagan was formerly with DeWalt … Rory S. Leyden was named vice-president, marketing of the EZ Paintr division. (815-235-4171)

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 24.90 15.05 24.49

Canfor 19.80 7.65 10.85

Goodfellow 12.55 8.50 8.75

Home Depot 70.00 34.68 46.21

Hudsons Bay 19.10 12.40 17.90

Lowe’s 67.25 34.25 58.31

Sears Canada 41.00 19.60 20.30

Taiga Forest 14.20 6.80 7.30

West Fraser 38.00 21.00 34.50

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He is blessed over all mortals who loses no moment of the passing life in remembering the past.” — Henry David Thoreau

_______________________________________________

MARKET INDICATORS

Healthy first-quarter sales and profits are expected for Canadian retailers, as the country has so far escaped the kind of economic slowdown affecting profits in the U.S. Despite warning signs from retail giants Sears Canada Inc. and Hudson’s Bay Inc., analysts say the retail sector is not under too much pressure. Canadians, seemingly unperturbed by news of a slowing economy, spent $23.8 billion in stores in January — a rise of 0.6% from December, according to the most recent retail sales data available from Statistics Canada.

The annual inflation rate slid to 2.5% in March from 2.9% in February, according to Statistics Canada. This is the lowest inflation level since August 2000. Rising food and energy prices, however, continue to push the cost of living year over year.

U.S. consumer prices in March rose by only 0.1%, their slowest pace in seven months, compared to a 0.7% increase in February. This was attributed to a decrease in energy prices, which fell which fell 2.1% after a 0.2% decline in February. Separately, the normally resilient housing sector saw setbacks in March as U.S. housing starts fell 1.3% to a seasonally adjusted 1.613 million annual rate in March..

______________________________________________

______________________________________________

* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

NORAL INSTORE

BOOST your retail profile with instore sales support

for your products and merchandising

 

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

 

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs — business plan analysis, facilitator services, and organizational structure review.

 

Visit http://www.blackeagle.ca or call 905-693-0092

______________________________________________

 

* * * * * *

BUYER — BUILDING SUPPLIES:

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members.

 

Reporting to the Senior Buyer, the successful candidate will be required to negotiate the purchase of products, contracts and distribution of merchandise, and to source new products and technologies, determining preferred suppliers in the building supplies area. You will work closely with other buyers and the marketing group.

 

Applicants must have a sound knowledge of purchasing, inventory management, warehousing and distribution management functions, and proficiency with Microsoft Office products. Minimum P.M.A.C. Level 3 or equivalent experience is required. Product knowledge in building supplies is essential. An agricultural background is an asset.

Interested applicants are invited to forward their résumé in confidence by April 18, 2001, quoting competition number HR01-46. Mail to: Human Resources, United Farmers of Alberta, 1016-68th Avenue SW; Calgary, AB; T2V 4J2; fax: 403-258-7630; email: resumes@ufa.com. We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

B.C. SALES AGENT — PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

______________________________________________

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

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

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

______________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

 

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

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

______________________________________________

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

Phone: 416.489.3396; Fax: 416.489.6154

EDITORIAL:

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

SALES/PRODUCTION:

Beverly Allen, Marketing Manager: bev@hardlines.ca <mailto:hardlines@on.aibn.com>

Nancy Wright, Circulation Manager: nancy@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

© 2001 by Michael McLarney.

______________________________________________

 

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). 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

April 23, 2001

Volume vii, #16

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca <mailto:mike@hardlines.ca>

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

* * * * * *

IN THIS ISSUE:

* Ace shuffles Canadian buyers

* TruServ unveils latest store program at spring show

* Home Depot Canada adds proprietary contractor tool line

* Réno-Dépôt will open its 12th big box in Québec

* * * * * *

DAILY UPDATES FROM HARDLINES

Join us each morning at hardlines.ca <https://hardlines.ca/> . News updated every day.

* * * * * *

ACE STREAMLINES CANADIAN BUYING TEAM

Ace Hardware Canada has shuffled its buying team, reducing the buying functions from four to two. The tools and hardware, plumbing and electrical, paint and décor, and seasonal categories have been streamlined under staple hardlines and seasonal. Bernie Snider, formerly product manager for hardware and tools, will head up the staple hardlines side as group merchandise manager. Dan McMurdy has been promoted from product manager for seasonal to group merchandise manager heading up the seasonal side.

According to Dunc Wilson, vice-president merchandising and marketing, the reorganization will mean all buying decisions for Canada remain in Ace’s Markham, ON office. However, he adds, the appointment of Rob Collins from the U.S. as managing director will help strengthen ties with Ace’s U.S. parent, giving it better access to North American pricing. Wilson himself was recently promoted to the vp position from director of inventory management and merchandise services.

The reshuffle included some cuts. Gone are Peter Simmons, a 28-year veteran of Beaver and Ace. He was product manager for plumbing and electrical. Calvin Ashton, formerly product manager for seasonal and flooring, is also gone. Mark Flor, director of merchandising and marketing, will retire effective June 1, 2001. Roger Miller, who was director, finance and administration, has also left, leaving controller Frank Barrese to report directly to Stan Sauer, the new vice-president of operations and administration.

______________________________________________

HOME DEPOT HAS EXCLUSIVE ON

HILTY CONTRACTOR TOOLS

The Hilty brand of heavy-duty contractor power tools, including cutting and drilling tools, has been added to Home Depot’s family of proprietary brands. The program will role out in five Toronto-area stores over the next two months, and include six or seven bays adjacent to the contractor desk. Products will be available both for purchase and through Home Depot’s instore rental outlet.

 

The arrangement has another new wrinkle: Hilty sales people will work right in the store, similar to the way cosmetics firms install their own salespeople and sales counters in mass merchants like eaton’s.

 

According to Eric Peterson, vice-president of merchandising for Home Depot Canada, the Hilty deal is part of Home Depot’s efforts to build contractor sales in Canada. “I want to grow the contractor business aggressively,” he says.

______________________________________________

 

TRUSERV ANNOUNCES RELAUNCH OF V&S BANNER

At its spring dealer show this weekend, TruServ Canada unveiled a new store name and banner for its V&S Variety stores. Renamed C&S Choices (for convenience and service), the new logo puts the emphasis on “Choices,” emphasizing the stores’ role as a convenient alternative to larger shopping destinations.

With power centres opening across the country, our stores are convenient to get to, with assortments people need from a local perspective,” says Leo Charriere, COO of TruServ Canada.

The new program, which has been under development for a year, includes signage (green with burgundy trim replaces the red and white of the V&S banner), plus interior and exterior décor, fresh layout and refined assortments.

Charriere says the co-op already has seven stores committed to test the new program. He expects at least 15 in total to sign on by the end of the year, with a full roll out to all 180 existing V&S stores starting in early 2002.

______________________________________________

COMPANIES IN THE NEWS

Réno-Dépôt will count its 12th big box in Québec with the opening in Ste-Dorothée on the west side of Laval. Scheduled to open over the May long weekend, it will be part of a power centre that includes a Wal-Mart and Canadian Tire. Réno-Dépôt also has three Building Box stores in Ontario, in Cambridge, Brampton and Scarborough.

 

Rona Retail Canada will open its second Rona Home Solutions store in Kingston, ON in January or February, 2002. That location will be followed by one in Gloucester, ON and then Mississauga, ON later in the year. The company intends to have four Ontario stores opened or signed by the end of 2002.

Home Depot stayed open on Easter Sunday for the first time in Canada, at least in the provinces where the move was legal, namely British Columbia and Manitoba.

Weyerhaeuser Co. has reported first quarter earnings of US$107 million and net sales of US$3.6 billion, compared with US$3.9 billion for the same period last year. Results were said to reflect the challenging market conditions we faced during the first quarter.

Home Depot Inc. and Lowe’s Co. have benefited from the cut in U.S. interest rates due to the greater financing activity, which is expected to spur home improvement projects. Shares for Home Depot rose 8% while shares for Lowe’s surged nearly 11%. “Lower rates mean increasing refinance activity,” said Daniel Binder of Buckingham Research Group. He added that historically, greater refinancing tends to spur remodelling projects, which aids home improvement chains.

______________________________________________

NOTED …

Moffat & Powell Ltd. hosted its first contractor show on April 4th , 2001. The event, held in London, ON, attracted more than 650 people, including more than 36 vendors. Moffat & Powell, a member of ILDC, has six stores in South Central Ontario.

______________________________________________

PEOPLE IN THE MOVE

 

Mike Russell has been promoted to the position of national sales manager for the Canadian division of Vermont American. In his new role, he will have responsibility for all V.A.’s regional rep agencies, as well as its direct sales and support staff. Russell has been with Vermont American since 1991, most recently in the position of national account manager. (905-564-1155)

 

Dave Hunter has been promoted to merchandise services manager at Ace Hardware Canada, in addition to his existing duties as inventory manager. In his newly expanded role, his duties will now include communication, advertising and catalogues. (905-475-1188)

 

At Delta Faucet Canada, Josh McKellar has joined the marketing team as the Delta Faucet Canada retail specialist. He was formerly with Kidde Safety Canada a division of Pyrene Corp., where he was the Ontario field representative. (905-712-1422)

Newell Rubbermaid Inc. has announced the following additions to its team: John P. Constantine is now vice-president, marketing of the Rubbermaid Home Products division. Constantine was formerly vice-president, marketing of the Black & Decker Power Tools … Terry R. Cole, has been named vice-president of global operations of the Burnes of Boston/Connoisseur picture frames group. His former experience includes Mary Kay and Procter & Gamble … Todd M. Pope is now vice-president sales for the Levolor division … Jeffrey D. Holler has been appointed vice president, marketing for the Levolor division … David G. Walsh is now vice-president, business development of the Levolor/Hardware Group … Dustan Flanagan has been named manager, event marketing for Newell Rubbermaid; he will be managing the recently announced NASCAR sponsorship. Flanagan was formerly with DeWalt … Rory S. Leyden was named vice-president, marketing of the EZ Paintr division. (815-235-4171)

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)

Canadian Tire 24.90 15.05 24.49

Canfor 19.80 7.65 10.85

Goodfellow 12.55 8.50 8.75

Home Depot 70.00 34.68 46.21

Hudsons Bay 19.10 12.40 17.90

Lowe’s 67.25 34.25 58.31

Sears Canada 41.00 19.60 20.30

Taiga Forest 14.20 6.80 7.30

West Fraser 38.00 21.00 34.50

______________________________________________

He is blessed over all mortals who loses no moment of the passing life in remembering the past.” — Henry David Thoreau

_______________________________________________

MARKET INDICATORS

Healthy first-quarter sales and profits are expected for Canadian retailers, as the country has so far escaped the kind of economic slowdown affecting profits in the U.S. Despite warning signs from retail giants Sears Canada Inc. and Hudson’s Bay Inc., analysts say the retail sector is not under too much pressure. Canadians, seemingly unperturbed by news of a slowing economy, spent $23.8 billion in stores in January — a rise of 0.6% from December, according to the most recent retail sales data available from Statistics Canada.

The annual inflation rate slid to 2.5% in March from 2.9% in February, according to Statistics Canada. This is the lowest inflation level since August 2000. Rising food and energy prices, however, continue to push the cost of living year over year.

U.S. consumer prices in March rose by only 0.1%, their slowest pace in seven months, compared to a 0.7% increase in February. This was attributed to a decrease in energy prices, which fell which fell 2.1% after a 0.2% decline in February. Separately, the normally resilient housing sector saw setbacks in March as U.S. housing starts fell 1.3% to a seasonally adjusted 1.613 million annual rate in March..

______________________________________________

______________________________________________

* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

NORAL INSTORE

BOOST your retail profile with instore sales support

for your products and merchandising

 

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

 

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs — business plan analysis, facilitator services, and organizational structure review.

 

Visit http://www.blackeagle.ca or call 905-693-0092

______________________________________________

 

* * * * * *

BUYER — BUILDING SUPPLIES:

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members.

 

Reporting to the Senior Buyer, the successful candidate will be required to negotiate the purchase of products, contracts and distribution of merchandise, and to source new products and technologies, determining preferred suppliers in the building supplies area. You will work closely with other buyers and the marketing group.

 

Applicants must have a sound knowledge of purchasing, inventory management, warehousing and distribution management functions, and proficiency with Microsoft Office products. Minimum P.M.A.C. Level 3 or equivalent experience is required. Product knowledge in building supplies is essential. An agricultural background is an asset.

Interested applicants are invited to forward their résumé in confidence by April 18, 2001, quoting competition number HR01-46. Mail to: Human Resources, United Farmers of Alberta, 1016-68th Avenue SW; Calgary, AB; T2V 4J2; fax: 403-258-7630; email: resumes@ufa.com. We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

B.C. SALES AGENT — PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

______________________________________________

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

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

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

______________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

 

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

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

______________________________________________

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

Phone: 416.489.3396; Fax: 416.489.6154

EDITORIAL:

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

SALES/PRODUCTION:

Beverly Allen, Marketing Manager: bev@hardlines.ca <mailto:hardlines@on.aibn.com>

Nancy Wright, Circulation Manager: nancy@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

© 2001 by Michael McLarney.

______________________________________________

 

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). You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

 

April16_01

HARDLINES

Canada’s electronic information service for the home improvement industry

April 16, 2001

Volume vii, #15

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca <mailto:mike@hardlines.ca>

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

* * * * * *

IN THIS ISSUE:

* Canadian Tire and RONA will be keynotes at Fall conference

* Castle eyes West for dealer growth

* Howden launches update to Do-it program

* Color Your World re-launches 38 stores

* * * * * *

We are ecstatic to announce that our new website has registered 81,748 hits in one month. That’s right, 81,748 hits! That is over 2,600 hits every day, from all over North America.

Join us at hardlines.ca. News updated every day.

______________________________________________

CANADIAN TIRE AND RONA WILL HEADLINE HARDLINES CONFERENCE

Two of Canada’s largest home improvement retailers will be showcased at this year’s Hardlines Marketing Conference. Mark Foote, president of Canadian Tire Retail, joins Henri Drouin, chairman, and Rick Blickstead, president, Rona Retail in this one-day event, which will feature speakers from Canada, the U.S. and Europe.

The illustrious roster of presenters will also feature Paul Ingevaldson, who heads up international development for Ace Hardware, and David Ford of the Certified Forest Products Council. Peter Turkstra from Turkstra Lumber, and Gilles Caille, representing the federation of European hardware manufacturers, round out the day.

Breakout sessions will cover how to build contractor sales, instore merchandising and how to hire smart and build staff retention.

New this year is a presentation from the vendor side: Tom Hearn, vice-chairman of American Tool Cos., will talk about the challenges facing vendors in a globalized retail market.

Now in its sixth year, the Hardlines Conference is a forum for leading retailers to share their ideas, challenges and direction with Canada’s leading executives in home improvement retailing and manufacturing. This year’s conference will be held September 13, 2001 at the Four Points Sheraton Hotel near the Toronto Airport.

______________________________________________

COLOR YOUR WORLD LAUNCHES AGGRESSIVE PRO STRATEGY

In response to the big boxes’ approach to home decorating, Color Your World is re-launching 38 locations across the country as one-stop décor destinations. The retailer’s revamping includes increased product lines and increased focus on customer service for both DIYers and professional decorators.

Stores have been refurbished to include all aspects of home decorating: paint and paint effects, floor coverings, custom-made drapery, upholstery and blinds. Customer service has been expanded to include all aspects of home décor, which means Color Your World’s consultants will even make house calls.

The retailer is also targetting the professional decorator and contractor market by providing services aimed at helping to manage time and cut contractors’ costs. Color Your World will feature monthly commercial specials and in-store areas for professionals to conduct business.

______________________________________________

CASTLE TARGETS WEST FOR GROWTH

Castle Building Centres Group announced at its annual meeting last week the signing of 15 new members during the past fiscal year. But, says Ron Marchetti, national business development manager, that number represents “just a drop in the ocean compared to what I see in the future.”

Castle recently signed Alan Schoemperlen, formerly of Winnipeg-based TruServ Canada, to head up dealer relations and new business development in Western Canada. Schoemperlen’s role, says Marchetti, will be to capitalize on the potential for new dealers he says awaits the group in that region.

Castle is already strong in Ontario, and in Atlantic Canada, where it is that region’s largest buying group with 87 dealers. But Marchetti expects Castle’s presence in the West to rival or exceed that in the Atlantic within two or three years.

______________________________________________

HOWDEN UPDATES DO-IT CENTER PROGRAM AT LATEST MARKET

The Howden division of Sodisco-Howden Group has upgraded its signage program for the distributor’s Do-it center program in Canada. The new look, introduced at its spring market in Toronto on March 31, features the addition of royal blue to its signage, to soften the warm red of the Do-it center logo.

The blue will appear as a frame around the exterior entrance of the stores themselves, appearing below the Do-it center name and adding focus to the entrance. It is also dominant instore, on department signs and on signage above the drive aisle that make quality statements such as “When quality counts” and “With expert advice.” In addition, price item signs will incorporate the new blue colour.

According to Dave Todd, retail design manager for Howden in London, ON, the redesign provides “a nice clean look.”

Howden re-launched its Pro logo at the beginning of 2000 for its 750 dealers using that banner. The Do-it center program, originated by Do-it Best Corp. in the U.S. and developed by Toronto’s Watt Group, is used by 56 building centre dealers across the country.

______________________________________________

COMPANIES IN THE NEWS

Home Hardware’s spring market will be held next week, April 22-24, at its head office and distribution centre in St. Jacob’s, ON. The dealer show is expected to draw 13,000 delegates and 850 vendors. The market kicks off with Home Hardware’s pre-market conference, a day of seminars and staff development for dealers.

Premdor Inc. is continuing discussions with the U.S. Department of Justice regarding approval for the acquisition of Masonite Co. from International Paper Co. The pre-merger waiting period has been extended under the Hart-Scott-Rodino Antitrust Improvements Act; however, the deal is expected to close by the end of the second quarter, 2001.

Ainsworth Lumber Co. Ltd. has released fourth quarter results for 2000, including sales of $331.6 million, a 5.5% decrease over 1999. The company also posted net earnings of $15.8 million, compared with $24.3 for the corresponding period in 1999. Ainsworth’s CEO, Brian Ainsworth, cited the deterioration in North American pricing for commodity products, owing to a slowing U.S. economy, as a factor affecting the third and fourth quarters.

Home Depot in the U.S. has taken a new angle on its marketing campaign, saying it has lower prices than Lowe’s Cos., its main competitor. U.S. analysts are taking this as a sign of tougher times in the horizon, as retailers scramble to attract the attention of savings-conscious consumers. Lowe’s of Wilkesboro, N.C., has countered with its own print and radio ads that, like Home Depot’s, promise to beat any competitor’s price by 10%.

______________________________________________

NOTED …

The 47th Annual Atlantic Building Materials Show & Convention survived nature’s challenges — a major snow storm on the first day of the show, and a power outage on day two — and achieved record volumes of written business. Announcements of a new show date for next year were not well received, however. As a result, next year’s show opens on Friday, March 22nd.

______________________________________________

PEOPLE IN THE MOVE

CLARIFICATION: We gave you the wrong title for Rob Collins at Ace Hardware Canada. He is managing director, taking over from ex-president Wolf Gruber, who retired at the end of March. (905-475-1188)

Royal International has announced the appointment of Louise Turgeon as national sales manager, effective May 1, 2001. Turgeon was formerly Royal’s sales manager for eastern Canada. (514-735-4566)

_____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (THUR.)

Canadian Tire 24.90 15.05 24.00

Canfor 19.80 7.65 9.75

Goodfellow 12.55 8.50 8.70

Home Depot 70.00 34.68 43.78

Hudsons Bay 19.10 12.40 16.91

Lowe’s 67.25 34.25 57.35

Sears Canada 41.00 19.60 19.45

Taiga Forest 14.20 6.80 7.00

West Fraser 38.00 21.00 34.75

______________________________________________

There are worse things in life than death. Have you ever spent an evening with an insurance salesman?” — Woody Allen

_______________________________________________

MARKET INDICATORS

In all urban areas across Canada, housing starts in March reached 153,800 units, down 1.5% from February. Québec’s residential construction sustained a decrease for the first time since the beginning of the year. Starts in March went down 18% compared to February. This drop was attributable to single starts, which were down by 14%. Multiple housing starts decreased by 15%. British Columbia’s urban housing starts for the same month were up 13%, totalling 795. Single detached starts were up 3% with 414 starts, while multiple family starts were up 27%, with 381 starts. Lower interest rates are expected to benefit builders and offset the effects of any potential economic slow-down.

The New Housing Price Index rose 0.3% from January to February. This index of contractors’ selling prices was 2.4% higher in February than it was in February 2000.

Monthly increases occurred in 12 of the 21 urban centres surveyed. The largest increase was registered in the Montréal census metropolitan area, where the index was up 0.9% from January. Higher prices for building materials, labour and land were among the reasons for the increase. On a year-over-year basis, Ottawa-Hull once again posted the largest increase (+14.2%) for new homes across the country, followed by Montréal, Halifax and Kitchener-Waterloo. The combined centres of Saint John-Moncton-Fredericton posted the largest annual decrease (-1.7%).

______________________________________________

______________________________________________

* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

Noral Instore

BOOST your retail profile with instore sales support

for your products and merchandising

 

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

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs —business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.ca or call 905-693-0092

______________________________________________

* * * * * *

BUYER — BUILDING SUPPLIES:

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members.

Reporting to the Senior Buyer, the successful candidate will be required to negotiate the purchase of products, contracts and distribution of merchandise, and to source new products and technologies, determining preferred suppliers in the building supplies area. You will work closely with other buyers and the marketing group.

Applicants must have a sound knowledge of purchasing, inventory management, warehousing and distribution management functions, and proficiency with Microsoft Office products. Minimum P.M.A.C. Level 3 or equivalent experience is required. Product knowledge in building supplies is essential. An agricultural background is an asset.

Interested applicants are invited to forward their résumé in confidence by April 18, 2001, quoting competition number HR01-46. Mail to: Human Resources, United Farmers of Alberta, 1016-68th Avenue SW; Calgary, AB; T2V 4J2; fax: 403-258-7630; email: resumes@ufa.com. We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

DIRECTOR, MEMBER OPERATIONS, and REGIONAL DISTRICT MANAGERS:

Our client, TruServ Canada Cooperative Inc., a major retail/distribution franchise dealer organization with a broad merchandise assortment and stores throughout Canada expressed by two major banners –True Value Hardware Stores and V&S Department stores – wishes to add several key executives to the operational/member division of the company.

The right candidates for these different opportunities will be highly motivated, intelligent, articulate, goal-oriented individuals who bring exceptional interpersonal skills to these leadership and teamwork opportunities.

To be a candidate you must have: solid operations understanding and experience; a successful track record in recruiting and developing new retail dealers/members; the ability to work within a team framework; strong leadership using both mentoring and coaching skills; a proven ability to achieve results; a clear understanding of financial budgeting, analysis, and actions required.

This unique opportunity to expand our team for the present and the future requires us to find management executives who can blend into an existing group while at the same time bring their own positive personality and characteristics.

The primary location for these positions will be the company head office in Winnipeg, but there will also be a number of opportunities throughout Canada.

Send résumé to Robert Scurfield, Robert R. Scurfield & Associates, 238 Oxford St., Winnipeg, MB, R3M 3J6; phone: 204-981-5605; fax: 204-489-6204; or email: rscurf@mb.sympatico.ca

* * * * * *

TERRITORY SALES REPRESENTATIVE:

A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls.

The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your résumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted.

* * * * * *

B.C. SALES AGENT — PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

______________________________________________

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 <https://hardlines.ca/>

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

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

______________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

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

______________________________________________

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

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca <mailto:hardlines@on.aibn.com>

Nancy Wright, Circulation Manager: nancy@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

© 2001 by Michael McLarney.

______________________________________________

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). 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

April 16, 2001

Volume vii, #15

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca <mailto:mike@hardlines.ca>

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

* * * * * *

IN THIS ISSUE:

* Canadian Tire and RONA will be keynotes at Fall conference

* Castle eyes West for dealer growth

* Howden launches update to Do-it program

* Color Your World re-launches 38 stores

* * * * * *

We are ecstatic to announce that our new website has registered 81,748 hits in one month. That’s right, 81,748 hits! That is over 2,600 hits every day, from all over North America.

Join us at hardlines.ca. News updated every day.

______________________________________________

CANADIAN TIRE AND RONA WILL HEADLINE HARDLINES CONFERENCE

Two of Canada’s largest home improvement retailers will be showcased at this year’s Hardlines Marketing Conference. Mark Foote, president of Canadian Tire Retail, joins Henri Drouin, chairman, and Rick Blickstead, president, Rona Retail in this one-day event, which will feature speakers from Canada, the U.S. and Europe.

The illustrious roster of presenters will also feature Paul Ingevaldson, who heads up international development for Ace Hardware, and David Ford of the Certified Forest Products Council. Peter Turkstra from Turkstra Lumber, and Gilles Caille, representing the federation of European hardware manufacturers, round out the day.

Breakout sessions will cover how to build contractor sales, instore merchandising and how to hire smart and build staff retention.

New this year is a presentation from the vendor side: Tom Hearn, vice-chairman of American Tool Cos., will talk about the challenges facing vendors in a globalized retail market.

Now in its sixth year, the Hardlines Conference is a forum for leading retailers to share their ideas, challenges and direction with Canada’s leading executives in home improvement retailing and manufacturing. This year’s conference will be held September 13, 2001 at the Four Points Sheraton Hotel near the Toronto Airport.

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COLOR YOUR WORLD LAUNCHES AGGRESSIVE PRO STRATEGY

In response to the big boxes’ approach to home decorating, Color Your World is re-launching 38 locations across the country as one-stop décor destinations. The retailer’s revamping includes increased product lines and increased focus on customer service for both DIYers and professional decorators.

Stores have been refurbished to include all aspects of home decorating: paint and paint effects, floor coverings, custom-made drapery, upholstery and blinds. Customer service has been expanded to include all aspects of home décor, which means Color Your World’s consultants will even make house calls.

The retailer is also targetting the professional decorator and contractor market by providing services aimed at helping to manage time and cut contractors’ costs. Color Your World will feature monthly commercial specials and in-store areas for professionals to conduct business.

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CASTLE TARGETS WEST FOR GROWTH

Castle Building Centres Group announced at its annual meeting last week the signing of 15 new members during the past fiscal year. But, says Ron Marchetti, national business development manager, that number represents “just a drop in the ocean compared to what I see in the future.”

Castle recently signed Alan Schoemperlen, formerly of Winnipeg-based TruServ Canada, to head up dealer relations and new business development in Western Canada. Schoemperlen’s role, says Marchetti, will be to capitalize on the potential for new dealers he says awaits the group in that region.

Castle is already strong in Ontario, and in Atlantic Canada, where it is that region’s largest buying group with 87 dealers. But Marchetti expects Castle’s presence in the West to rival or exceed that in the Atlantic within two or three years.

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HOWDEN UPDATES DO-IT CENTER PROGRAM AT LATEST MARKET

The Howden division of Sodisco-Howden Group has upgraded its signage program for the distributor’s Do-it center program in Canada. The new look, introduced at its spring market in Toronto on March 31, features the addition of royal blue to its signage, to soften the warm red of the Do-it center logo.

The blue will appear as a frame around the exterior entrance of the stores themselves, appearing below the Do-it center name and adding focus to the entrance. It is also dominant instore, on department signs and on signage above the drive aisle that make quality statements such as “When quality counts” and “With expert advice.” In addition, price item signs will incorporate the new blue colour.

According to Dave Todd, retail design manager for Howden in London, ON, the redesign provides “a nice clean look.”

Howden re-launched its Pro logo at the beginning of 2000 for its 750 dealers using that banner. The Do-it center program, originated by Do-it Best Corp. in the U.S. and developed by Toronto’s Watt Group, is used by 56 building centre dealers across the country.

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COMPANIES IN THE NEWS

Home Hardware’s spring market will be held next week, April 22-24, at its head office and distribution centre in St. Jacob’s, ON. The dealer show is expected to draw 13,000 delegates and 850 vendors. The market kicks off with Home Hardware’s pre-market conference, a day of seminars and staff development for dealers.

Premdor Inc. is continuing discussions with the U.S. Department of Justice regarding approval for the acquisition of Masonite Co. from International Paper Co. The pre-merger waiting period has been extended under the Hart-Scott-Rodino Antitrust Improvements Act; however, the deal is expected to close by the end of the second quarter, 2001.

Ainsworth Lumber Co. Ltd. has released fourth quarter results for 2000, including sales of $331.6 million, a 5.5% decrease over 1999. The company also posted net earnings of $15.8 million, compared with $24.3 for the corresponding period in 1999. Ainsworth’s CEO, Brian Ainsworth, cited the deterioration in North American pricing for commodity products, owing to a slowing U.S. economy, as a factor affecting the third and fourth quarters.

Home Depot in the U.S. has taken a new angle on its marketing campaign, saying it has lower prices than Lowe’s Cos., its main competitor. U.S. analysts are taking this as a sign of tougher times in the horizon, as retailers scramble to attract the attention of savings-conscious consumers. Lowe’s of Wilkesboro, N.C., has countered with its own print and radio ads that, like Home Depot’s, promise to beat any competitor’s price by 10%.

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NOTED …

The 47th Annual Atlantic Building Materials Show & Convention survived nature’s challenges — a major snow storm on the first day of the show, and a power outage on day two — and achieved record volumes of written business. Announcements of a new show date for next year were not well received, however. As a result, next year’s show opens on Friday, March 22nd.

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PEOPLE IN THE MOVE

CLARIFICATION: We gave you the wrong title for Rob Collins at Ace Hardware Canada. He is managing director, taking over from ex-president Wolf Gruber, who retired at the end of March. (905-475-1188)

Royal International has announced the appointment of Louise Turgeon as national sales manager, effective May 1, 2001. Turgeon was formerly Royal’s sales manager for eastern Canada. (514-735-4566)

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CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (THUR.)

Canadian Tire 24.90 15.05 24.00

Canfor 19.80 7.65 9.75

Goodfellow 12.55 8.50 8.70

Home Depot 70.00 34.68 43.78

Hudsons Bay 19.10 12.40 16.91

Lowe’s 67.25 34.25 57.35

Sears Canada 41.00 19.60 19.45

Taiga Forest 14.20 6.80 7.00

West Fraser 38.00 21.00 34.75

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There are worse things in life than death. Have you ever spent an evening with an insurance salesman?” — Woody Allen

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MARKET INDICATORS

In all urban areas across Canada, housing starts in March reached 153,800 units, down 1.5% from February. Québec’s residential construction sustained a decrease for the first time since the beginning of the year. Starts in March went down 18% compared to February. This drop was attributable to single starts, which were down by 14%. Multiple housing starts decreased by 15%. British Columbia’s urban housing starts for the same month were up 13%, totalling 795. Single detached starts were up 3% with 414 starts, while multiple family starts were up 27%, with 381 starts. Lower interest rates are expected to benefit builders and offset the effects of any potential economic slow-down.

The New Housing Price Index rose 0.3% from January to February. This index of contractors’ selling prices was 2.4% higher in February than it was in February 2000.

Monthly increases occurred in 12 of the 21 urban centres surveyed. The largest increase was registered in the Montréal census metropolitan area, where the index was up 0.9% from January. Higher prices for building materials, labour and land were among the reasons for the increase. On a year-over-year basis, Ottawa-Hull once again posted the largest increase (+14.2%) for new homes across the country, followed by Montréal, Halifax and Kitchener-Waterloo. The combined centres of Saint John-Moncton-Fredericton posted the largest annual decrease (-1.7%).

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* * * * *HARDLINES MARKETPLACE* * * *

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______________________________________________

Noral Instore

BOOST your retail profile with instore sales support

for your products and merchandising

 

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

* * * * * *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs —business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.ca or call 905-693-0092

______________________________________________

* * * * * *

BUYER — BUILDING SUPPLIES:

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members.

Reporting to the Senior Buyer, the successful candidate will be required to negotiate the purchase of products, contracts and distribution of merchandise, and to source new products and technologies, determining preferred suppliers in the building supplies area. You will work closely with other buyers and the marketing group.

Applicants must have a sound knowledge of purchasing, inventory management, warehousing and distribution management functions, and proficiency with Microsoft Office products. Minimum P.M.A.C. Level 3 or equivalent experience is required. Product knowledge in building supplies is essential. An agricultural background is an asset.

Interested applicants are invited to forward their résumé in confidence by April 18, 2001, quoting competition number HR01-46. Mail to: Human Resources, United Farmers of Alberta, 1016-68th Avenue SW; Calgary, AB; T2V 4J2; fax: 403-258-7630; email: resumes@ufa.com. We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * *

DIRECTOR, MEMBER OPERATIONS, and REGIONAL DISTRICT MANAGERS:

Our client, TruServ Canada Cooperative Inc., a major retail/distribution franchise dealer organization with a broad merchandise assortment and stores throughout Canada expressed by two major banners –True Value Hardware Stores and V&S Department stores – wishes to add several key executives to the operational/member division of the company.

The right candidates for these different opportunities will be highly motivated, intelligent, articulate, goal-oriented individuals who bring exceptional interpersonal skills to these leadership and teamwork opportunities.

To be a candidate you must have: solid operations understanding and experience; a successful track record in recruiting and developing new retail dealers/members; the ability to work within a team framework; strong leadership using both mentoring and coaching skills; a proven ability to achieve results; a clear understanding of financial budgeting, analysis, and actions required.

This unique opportunity to expand our team for the present and the future requires us to find management executives who can blend into an existing group while at the same time bring their own positive personality and characteristics.

The primary location for these positions will be the company head office in Winnipeg, but there will also be a number of opportunities throughout Canada.

Send résumé to Robert Scurfield, Robert R. Scurfield & Associates, 238 Oxford St., Winnipeg, MB, R3M 3J6; phone: 204-981-5605; fax: 204-489-6204; or email: rscurf@mb.sympatico.ca

* * * * * *

TERRITORY SALES REPRESENTATIVE:

A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls.

The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your résumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted.

* * * * * *

B.C. SALES AGENT — PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

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THE HARDLINES MARKETPLACE: just $16 per line.

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

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

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

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

______________________________________________

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now – Swiss Army only lets us give away their knives until JUNE 30, 2001. See the attached order form. Can’t open it? Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.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.

* * * * * *

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

______________________________________________

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

Phone: 416.489.3396; Fax: 416.489.6154

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

Eugenia Canas, Assistant Editor: buzz@hardlines.ca

Beverly Allen, Marketing Manager: bev@hardlines.ca <mailto:hardlines@on.aibn.com>

Nancy Wright, Circulation Manager: nancy@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

© 2001 by Michael McLarney.

______________________________________________

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). You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

 

April9_01

Canada’s electronic information service for the home improvement industry

April 9, 2001

Volume vii, #14

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

*  *  *  *  *  *

IN THIS ISSUE:

* Sodisco-Howden to develop PRO stores in Jamaica

* Home Depot makes resource protection a training issue

* Newell raids B&D’s executive ranks – again

* Retailers’ spring catalogues reflect growth of seasonal and décor

*  *  *  *  *  *

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.

*  *  *  *  *  *

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them four free weeks and send you a Swiss Army Knife! But you have to act now — Swiss Army only lets us give away their knives until JUNE 30, 2001.  See the attached order form. Can’t open it?  Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.html

______________________________________________

SECURITY AT THE WORKPLACE IS A TRAINING ISSUE

SAYS HOME DEPOT’S VERSCHUREN

A corporate-wide philosophy of resource protection (RP) must be part of ongoing employee training, says Home Depot Canada’s president, Annette Verschuren.

Speaking last week at a conference on resource protection mounted by the Retail Council of Canada, Verschuren pointed out the need to promote a philosophy of security and shrinkage awareness right from the point of hiring.

With the help of nine loss prevention directors, Home Depot Canada’s HR team attempts to develop a strong RP philosophy through mentoring. Every facet of training, from product knowledge to customer service, includes worker safety and loss prevention components, Verschuren said.

The training messages are reinforced with games, incentives and competitions. And the input comes from the staff level, as well. “Encourage your people to tell you how to run your business better”, she said. “After all, they’re the ones on the front lines talking to customers every day. Don’t be afraid to ask questions – loss prevention is a universal concern.”

With a number of stores open 24 hours now in Canada, added precautions must be taken to ensure the security of staff and customers. For example, a buddy system is in place to walk staff and shoppers to their cars after hours, and parking lots are well lit.

While the random act of theft continues to be a concern in big boxes, Verschuren said “intelligent crime,” the work of organized gangs, often with networks across the country, is on the rise.

______________________________________________

SODISCO-HOWDEN MOVES INTO JAMAICA

The Howden division of Sodisco-Howden Group has struck a supply deal with a Jamaican chain, Mainland International. Six of the chain’s seven stores will adopt the Pro banner, including one brand new store, a 100,000-sq.ft. building centre that’s expected to generate more than CDN$13 million annually.

Jim Young, Howden’s marketing manager, organized the deal with the assistance of Doug Carter, Howden’s ex-national sales manager, who was involved in a consultant capacity. Carter has since remained in Jamaica as COO of Mainland.

The right to use the Pro name in Jamaica was approved by Pro Hardware in the U.S. Howden owns the Pro name in Canada.

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SPRING CATALOGUES REFLECT RETAILERS’ GROWTH CATEGORIES

Retailers’ spring catalogues are flooding the mailboxes, reflecting the increased emphasis on certain categories: it’s the season for lawn and garden, but it’s also the season for colour and home décor.

Canadian Tire’s 2001 edition features 438 pages of products that can now all be ordered either by phone or online. The lawn and garden section, featuring the retailer’s new upscale Yardworks line, is only a few pages shorter than the catalogue’s sports and recreation section.

The new Home Hardware catalogue also has a high ratio of lawn and garden to other categories. Among the 13 categories in its 288 pages is a rural & outdoor section, as well as home decorating, improvement and furnishing sections.

Home Ideas, a 50-page home and decorating magazine distributed quarterly at Building Box locations, is a competitor of sorts to the traditional catalogue. In line with the retailer’s seminar program, Home Ideas gives instruction and advice while it effectively showcases various product lines.

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COMPANIES IN THE NEWS

Taiga Forest Products Ltd. has announced a re-organization of its internal corporate structure into a general partnership. The company will now conduct business as Taiga Forest Products while continuing to hold 99% of the partnership directly; Taiga owns the remaining 1% through a wholly owned subsidiary. The initiative, designed to lower costs, will not affect Taiga’s shareholders or customers.

Laval’s Rona Le Rénovateur has changed its banner to Rona Le Régional, opening this week after a $3.5 million expansion and renovation. This one will be run by the Lespérance family, established Rona dealers on the North Shore of Montréal. The 100,000-sq.ft. store is Rona’s 25th large-surface outlet in Canada.

Home Depot in the U.S. will launch a new proprietary line of home décor products using the name and expertise of Canadian décor diva Lynette Jennings. The line, which includes paint, décor and floor coverings, will be in North American stores starting this April. Like the recently introduced Thomasville Cabinetry, the Lynette Jennings Collection is the latest example of how Home Depot is expanding its appeal to women. Its décor offerings now cover all categories: flooring, lighting, paint, wallpaper, window treatments and kitchen and bath products, as well as major appliances.

Sears Canada Inc. has been cited for its efforts to ensure a safer workplace: the Retail Council of Canada awarded Sears the Retailer Award for the design and implementation of a violence-in-the-workplace prevention program as well as a confrontational management program.

Canadian Tire has opened a new “Next Generation” format store in Oakville, ON. The 108,000-sq.ft. store holds over 50,000 products and includes a 13,500-sq.ft.garden centre and a 17-bay automotive service centre.

The Canadian Hardware & Housewares Manufacturers Association named Charles Springer Jr. and the late Charles Springer Sr. to its industry Hall of Fame yesterday. Springer senior founded C.E. Springer & Son almost 40 years ago. Also named: P.L. Robertson, who invented the Robertson head screw in 1908.

Weyerhaeuser’s Forestlands operations in the Kamloops timber supply area have achieved CSA certification covering approximately 1.1 million acres of Crown forest. The CSA standard includes performance requirements and is complementary to the ISO 14001 certification achieved by the company’s B.C. Interior Forestlands in 1999. The company has certified more than 8.36 million acres of land to date.

Royal International Co. made a joint venture agreement with Fimaco Herramientas, a hand tool supplier in Argentina. The new company will be known as Royal International Argentina S.A. and will expand Royal’s operations throughout South and Central America.

PartSource, the Canadian Tire stand-alone chain of auto parts stores, has announced the launch of its first loyalty program for retail and wholesaler customers. The Club Card offers members exclusive privileges, including discounts and promotions. PartSource has been part of the Canadian Tire master plan since 1996. In 1998, the company announced plans for a roll out of 200 of these stores over the following five years; to date, however, there are 29 stores.

South Carolina based Bowater Inc. and Alliance Forest Products Inc. have announced an agreement by which Bowater will acquire all of the outstanding shares of Alliance in a $1.2 billion transaction. Through the combination, Bowater will increase its annual lumber capacity to 1 billion board feet.

The union representing 900 hourly employees at Camco Inc.’s manufacturing facility in Montréal has gone on strike after rejecting the company’s latest contract offer. James Fleck, president and CEO, said in a prepared statement that he anticipates no short term impact in Camco’s ability to supply appliances to its customers.

The British Columbia government has put an end to extended dispute between environmentalists, First Nations groups and the forest industry with an announced  logging deferral in the Great Bear Rainforest. Over 600,000 hectares of old-growth forest will be set aside. Patrick Moore, director of the Forest Alliance, an umbrella organization for B.C. forest companies, said the companies are embracing the decision because they recognize the unique nature of the area and  want to bring an end to a damaging campaign being waged against them internationally by Greenpeace and other environmental groups. The campaign has affected sales in Europe and the U.S.

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PEOPLE IN THE MOVE

Pat Bennett has joined Ace Hardware Canada as vice-president of sales. He’ll report to Rob Collins, director of sales. Bennett was most recently vice-president of Canadian operations at Home Depot Canada … Dunc Wilson, previously director of inventory management and merchandise services, has been promoted to vice-president merchandising and marketing … Stan Sauer, formerly director of human resources, is now vice-president operations and administration. (905-475-1188)

Ed Bremer, formerly director of commercial sales for Turkstra Lumber, has moved to Ramcore Inc., where he has joined the senior management team as implementation manager. (905-689-1411)

The Canadian Hardware & Housewares Manufacturers Association has appointed Pierre Vachon, general sales manager of Sico Inc., as chairman of the CHHMA board of directors for 2001-2002. (416-282-0022)

Newell Rubbermaid Inc. has named two former Black & Decker employees to head up its new Lowe’s and Home Depot’s divisions. Paul Boitmann was named president of Newell Rubbermaid’s Home Depot division and Richard Kern Jr. president of the Lowe’s division. Boitmann and Kern both report to CEO Joseph Galli, also formerly of Black & Decker … The appointments come just two days after Newell Rubbermaid named two other former Black & Decker employees, David Klatt and James Roberts, to senior management posts. Boitmann is responsible for the company’s Home Depot sales force.

Kern is responsible for Newell Rubbermaid’s Lowe’s sales force. (815-235-4171)

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CANADIAN STOCK WATCH

COMPANY          52-WEEK HIGH           52-WEEK LOW    CLOSE (FRI.)

Canadian Tire      24.90                          15.05                                        24.00

Canfor                 19.80                         7.65                                            9.75

Goodfellow          12.55                          8.50                                            8.70

Home Depot        70.00                          34.68                                         43.78

Hudsons Bay       19.10                          12.40                                        16.91

Lowe’s                67.25                          34.25                                        57.35

Sears Canada      41.00                          19.60                                        19.45

Taiga Forest        14.20                          6.80                                            7.00

West Fraser        38.00                          21.00                                         34.75

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“Character builds slowly, but it can be torn down again with incredible swiftness.”

– Faith Baldwin (American writer)

_______________________________________________

MARKET INDICATORS

Construction intentions in  the non-residential sector lost ground from January’s peak, resulting in a decline in the value of building permits issued by municipalities in February. Builders took out $3.4 billion worth of building permits, down 9.1% from January. In spite of this retreat, February’s total value of building permits was 11.9% above the average monthly level recorded in 2000. The value of non-residental permits dropped 17.0% to $1.5 billion. Housing intentions remained strong, reaching $2.0 billion, down a slight 0.9% from January. Declines in single-family permits more than offset the higher demand for multi-family dwellings. Among the regions, the census metropolitan areas of Toronto and Montréal started 2001 strongly; the value of residential and non-residential permits was well above that of the same period last year. These two areas contributed more than 75% of the growth in the cumulative value of permits.

Cold weather and the late onset of spring, rather than the sluggish economy, are affecting sales in the U.S. lawn and garden industry. Market analysts said gardening equipment and product makers are seeing weak demands and delayed starts, but they did not comment on how this would affect the larger industry players. Lawn mower engine maker Briggs & Stratton Corp. said third-quarter results would fall far short of expectations due to weak demand for engines late in the quarter.

______________________________________________

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* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

Noral Instore

BOOST your retail profile with instore sales support

for your products and merchandising

http://www.noralmarketing.com

*  *  *  *  *  *

BLACK EAGLE CONSULTING 2000 INC. and President Richard Simms with 30 years experience in the Hardlines Industry for all your strategic planning needs –business plan analysis, facilitator services, and organizational structure review.

Visit http://www.blackeagle.caor call 905-693-0092

______________________________________________

 

BUYER – BUILDING SUPPLIES:

UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members.

Reporting to the Senior Buyer, the successful candidate will be required to negotiate the purchase of products, contracts and distribution of merchandise, and to source new products and technologies, determining preferred suppliers in the building supplies area. You will work closely with other buyers and the marketing group.

Applicants must have a sound knowledge of purchasing, inventory management, warehousing and distribution management functions, and proficiency with Microsoft Office products. Minimum P.M.A.C. Level 3 or equivalent experience is required. Product knowledge in building supplies is essential. An agricultural background is an asset.

Interested applicants are invited to forward their résumé in confidence by April 18, 2001, quoting competition number HR01-46. Mail to: Human Resources, United Farmers of Alberta, 1016-68th Avenue SW; Calgary, AB; T2V 4J2; fax: 403-258-7630; email: resumes@ufa.com. We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

*  *  *  *  *  *

DIRECTOR, MEMBER OPERATIONS, and REGIONAL DISTRICT MANAGERS:

Our client, TruServ Canada Cooperative Inc., a major retail/distribution franchise dealer organization with a broad merchandise assortment and stores throughout Canada expressed by two major banners —True Value Hardware Stores and V&S Department stores — wishes to add several key executives to the operational/member division of the company.

The right candidates for these different opportunities will be highly motivated, intelligent, articulate, goal-oriented individuals who bring exceptional interpersonal skills to these leadership and teamwork opportunities.

To be a candidate you must have: solid operations understanding and experience; a successful track record in recruiting and developing new retail dealers/members; the ability to work within a team framework; strong leadership using both mentoring and coaching skills; a proven ability to achieve results; a clear understanding of financial budgeting, analysis, and actions required.

This unique opportunity to expand our team for the present and the future requires us to find management executives who can blend into an existing group while at the same time bring their own positive personality and characteristics.

The primary location for these positions will be the company head office in Winnipeg, but there will also be a number of opportunities throughout Canada.

Send résumé to Robert Scurfield, Robert R. Scurfield & Associates, 238 Oxford St., Winnipeg, MB, R3M 3J6; phone: 204-981-5605; fax: 204-489-6204; or email: rscurf@mb.sympatico.ca

*  *  *  *  *  *

TERRITORY SALES REPRESENTATIVE:

A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls.

The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your résumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted.

*  *  *  *  *  *

TERRITORY SALES REPRESENTATIVE:

Established sales agency requires an experienced and enthusiastic Sales Professional for Ontario.

Qualified candidates need to be knowledgeable of the mass market, home centre and hardware industry as well as interested in an opportunity to learn the sales agency business. A desire to eventually own the agency could be an asset.

Send résumé via email to patstoy@istar.ca. We thank all applicants in advance and advise that only candidates selected for an interview will be contacted.

*  *  *  *  *  *

B.C. SALES AGENT – PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977.

______________________________________________

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

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

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

______________________________________________

“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.

______________________________________________

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

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

by McLARNEYCOM

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

© 2001 by Michael McLarney.

______________________________________________

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). You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

April2_01

Canada’s electronic information service for the home improvement industry

April 2, 2001

Volume vii, #13

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlines.ca

http://hardlines.ca

*  *  *  *  *  *

IN THIS ISSUE:

* Rona to close Cashway facility next year

* Lansing holds its own amidst Toronto’s box wars

* Howden launches expanded private label program

* Newfoundland dealer continues on acquisition trail

*  *  *  *  *  *

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.

*  *  *  *  *  *

TELL A FRIEND ABOUT HARDLINES!

AND WE’LL GIVE YOU A SWISS ARMY KNIFE TO SHOW OUR APPRECIATION!

We’d like to think you are telling your friends about us because of the cutting edge news we deliver every Monday morning. Or maybe it’s our up-to-date news, trends and statistics affecting the world of home improvement.

But if it’s the Swiss Army Knife we’re sending you for referring a new subscriber to us, that’s okay too.

So get a friend/colleague/customer to subscribe for one year and we’ll give them 4 free weeks and send you a Swiss Army Knife! But you have to act now—Swiss Army only lets us give away their knives until JUNE 30, 2001.  See the attached order form. Can’t open it?  Download Adobe Reader for free at: http://www.adobe.com/products/acrobat/readstep.html

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RONA WILL CLOSE CASHWAY OPERATION

IN PORT HOPE WITHIN THE YEAR

Rona is continuing consolidation of its Cashway operation with the wind down of the Cashway distribution centre in Port Hope, Ontario next year. The lease on the facility will expire in Spring 2002. This lease was last renewed at the time of Rona’s announced take over of Cashway Building Centres chain last winter.

Staff at the Port Hope facility have been preparing for the eventual closing and subsequent move into Boucherville and Toronto facilities.

Rick Blickstead, president and COO of Rona Retail Canada, views the change as “part of the ongoing plan to get synergies out of Cashway and into Rona.”

Buying teams will start moving from Port Hope to Toronto in the next several weeks; this will include the majority of the marketing and merchandising personnel. Some of the administrative staff will be making the transition to Boucherville over the next several months. Blickstead did not disclose how many people will receive termination packages.

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LANSING HOLDS OWN AMIDST BIG BOX

BATTLEGROUND IN TORONTO

With more than two dozen big boxes within the trading area of Lansing Buildall’s eight Toronto area stores, the chain continues to hold its own and increase top line sales, says John Kitchen, president of the Lansing division of Revy Home Centres Inc., Lansing’s parent.

“Numbers have been where we want them to be, and they continue to be strong,” he adds. “We continue to see a shift in our customer base, though, a shift from consumer to contractor sales.” This, he notes, is part of Lansing’s strategic plan to remain viable against large-surface competitors.

Lansing is retaining its market share, while the growth in the company continues to come from its Revy stores. The fact Lansing holds its own despite having 25 boxes to compete alongside, however, “speaks volumes,” he says.

The Martin Grove Road store, which also houses Lansing’s distribution centre and its contractor distribution, was retrofitted last year and has enjoyed a 20% increase in sales year over year.

While he would not comment on Lansing’s bottom line, Kitchen says he expects it to improve as margins on commodities increase again and “as people wake up to the fact that they’re not making any money on [depressed commodity prices].”

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DISSENSION IN CANADIAN RANKS AS DEADLINE

LOOMS FOR U.S. SOFTWOOD LUMBER PACT

Upon the March 30 expiry of the Softwood Lumber Agreement between Canada and the U.S., Ottawa is trying to appoint a special envoy that will unite the fractious Canadian industry. The envoy’s job would be to seek common ground among the British Columbia, Québec, Atlantic and remanufacturing industries – all of which have different positions on how, or even whether, to negotiate with the U.S.

In an effort to track shipments, Ottawa will require Canadian exporters to get permits for all lumber going South, effective April 1.

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NOTRE DAME ADDS NEW STORE TO

ITS NEWFOUNDLAND CHAIN

Notre Dame Agencies in Newfoundland has purchased another independent building supply dealer in that province. Sunny Haven Home Centre, a dealer in Twillingate, was confirmed last week as the newest addition to the Lewisporte-based chain, which now features seven building centres and four furniture and electronics stores. Notre Dame is the largest member of the Castle buying group in the province, with sales of $27.6 million in 2000.

This latest deal follows Notre Dame’s previous acquisition in April 2000, when it bought up the Hickman’s store in Corner Brook.

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COMPANIES IN THE NEWS

The Howden division of Sodisco-Howden Group launched a broadened line of private label products under the PRO brand at its dealer show in Toronto this past weekend. Almost 400 SKUs were introduced, including tools, paint brushes, spray paints, light bulbs and snow shovels. A total of 2,000 SKUs are planned for the program within the next 18 months, and will include cleaning supplies and garden tools.

Rona Retail Canada launched its first Home Solutions store in Brampton, ON, on March 28. The new-concept big box store has attracted a lot of attention for what it touts as a reinvention of large-surface retailing, with increased emphasis on female shoppers and shopping as entertainment. The store includes 130,000 sq.ft. of retail, with a 20,000-sq.ft. garden centre, a drive-through lumber yard, plus new wrinkles such as its “Paint Café,” IKEA-style boutiques and multi-media information centres.

Canadian Tire and Sears Canada have joined the ranks of retailers who now bill their customers using Epost, the electronic post office system from Canada Post. Other Epost mailers include Petro Canada, and Costco. The Bay, Zellers, Holt Renfrew and Home Hardware have announced they, too, will join in the coming months.

International Forest Products Ltd. will combine forces with Primex Forest Products Ltd. in a takeover move calculated to revitalize the coastal industry. This transaction is expected to close in late April. Commencing in 1999, Primex undertook a major capital expenditure improvement program, which included a total of $32.9 million to develop the company’s operating assets and improve returns.

Atlantic Pressure Treating Ltd. and Marwood Ltd. have amalgamated under the name of Marwood Inc., effective March 23, 2001. Marwood’s head office and manufacturing facilities will remain in Beaverdam, NB, with additional facilities in Brookfield and Bedford, NS.

Richelieu Hardware Ltd. has announced its results for the quarter ending February 28, 2001. Sales rose 17% to $46.9 million, compared with $40.2 million for the corresponding time in 2000. Net earnings before goodwill charges grew by 19%, to reach $4.8 million, up from $4.0 million for the first quarter of the previous year.

Home Depot in the U.S. saw its shares rise more than 4% after analysts’ indications that lower interest rates are keeping the U.S. housing market resilient despite a slowing economy. Shares are also being helped by hopes that the U.S. Federal Reserve could cut interest rates even further in the immediate future in efforts to boost the economy and reignite consumer confidence.

Sears, Roebuck & Co. has agreed to acquire 18 former Montgomery Ward department stores, effective mid-April. Four of the locations will be converted to The Great Indoors, Sears remodelling and decorating retail concept. Fourteen of the former Wards locations will be converted to Sears stores, with Sears Auto Centres attached to three of these stores.

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PEOPLE IN THE MOVE

Dan O’Hara has been promoted to the newly created position of national sales manager at Can-Save. A ten-year veteran of the Barrie, ON-based wholesaler, O’Hara moves up from his position as territory rep for Central Ontario. (705-722-7283)

Imperial Manufacturing Group has appointed Richard Lépine as vice-president, sales and marketing, effective immediately. He will be relocating to the Montréal Imperial Kool Ray offices at the end of April … Joe Landry is now vice-president, sales HVAC for the group. He will be concentrating on developing the Canadian, U.S. and European market.  (506-523-9117)

Home Depot in the U.S. has appointed Dennis Donovan as executive vice-president, human resources, effective April 2, 2001. Donovan will report to Bob Nardelli, president and CEO, and will be responsible for all human resources functions in the company’s stores and support centres. Donovan will join Home Depot on April 2 from Raytheon Co., where he has been senior vice-president of human resources since 1998. (770-433-8211)

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CANADIAN STOCK WATCH

COMPANY          52-WEEK HIGH            52-WEEK LOW         CLOSE (FRI.)

Canadian Tire      24.90                            15.05                                        22.65

Canfor                 19.80                            7.65                                            NA

Goodfellow          12.55                            8.50                                            9.00

Home Depot        70.00                            34.68                                        43.10

Hudsons Bay       19.10                            12.40                                        16.90

Lowe’s                67.25                            34.25                                        58.45

Sears Canada      41.00                            19.60                                        20.00

Taiga Forest        14.20                            6.80                                            7.20

West Fraser        38.00                            21.00                                        32.00

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“All this post-modernism is theology without God. It’s unseemly.”

– Lionel Tiger

_______________________________________________

MARKET INDICATORS

Strength in both the wholesale and retail sectors helped boost Canada’s Gross Domestic Product by 0.3% in January, says StatisticsCanada.  Wholesaling and retailing activity advanced; there were broad-based increases in the retail sector, while computers were chiefly responsible for the strength in wholesaling. The construction industry also helped buoy the GDP, with the highest level of housing starts since 1994.

U.S. consumer confidence rose sharply in March, after five months of decreases, driven by a more upbeat outlook on the economy and better job prospects. A private research group said its broad barometer of consumer attitudes rose to 117.0 in March from an upwardly revised February reading of 109.2, in a surprising report that knocked back growing expectations for interest rate cuts from the Federal Reserve.

U.S. lenders have significantly reduced mortgage rates in response to the U.S. economic slowdown. Thirty-year mortgage rates fell to 6.89% last week, the lowest average since mid-January. It was the third straight week that 30-year mortgage rates stayed under 7%, a level considered the threshold for supporting home buying below the border.

______________________________________________

FOR WOMEN IN THE INDUSTRY …

The Women’s Consumer Products Network will celebrate its first anniversary April 4th with a lecture from guest author Ann Coombs. She’s a consumer trends specialist who focuses on changing consumer needs and how to do business in the 21st century. Activities will include networking, dinner, golf tournament registration, and a FREE copy of Ann Coomb’s new book, “The Living Workplace,” for the first 150 people who register. For more information, please call: 905-212-3826; fax: 905-274-7646; email: wcpn99@yahoo.com, website: http://www.wcpncanada.org

(HARDLINES IS A PROUD SPONSOR OF WCPN)

______________________________________________

______________________________________________

* * * * *HARDLINES MARKETPLACE* * * *

______________________________________________

______________________________________________

* * * NORAL INSTORE: BOOST YOUR RETAIL PROFILE WITH INSTORE

SALES SUPPORT FOR YOUR PRODUCTS AND MERCHANDISING.

Go to: http://www.noralmarketing.com * * *

______________________________________________

DIRECTOR, MEMBER OPERATIONS, and REGIONAL DISTRICT MANAGERS:

Our client, TruServ Canada Cooperative Inc., a major retail/distribution franchise dealer organization with a broad merchandise assortment and stores throughout Canada expressed by two major banners —True Value Hardware Stores and V&S Department stores — wishes to add several key executives to the operational/member division of the company.

The right candidates for these different opportunities will be highly motivated, intelligent, articulate, goal-oriented individuals who bring exceptional interpersonal skills to these leadership and teamwork opportunities.

To be a candidate you must have: solid operations understanding and experience; a successful track record in recruiting and developing new retail dealers/members; the ability to work within a team framework; strong leadership using both mentoring and coaching skills; a proven ability to achieve results; a clear understanding of financial budgeting, analysis, and actions required.

This unique opportunity to expand our team for the present and the future requires us to find management executives who can blend into an existing group while at the same time bring their own positive personality and characteristics.

The primary location for these positions will  be the company head office in Winnipeg, but there will also be a number of opportunities throughout Canada.

Send resumé to Robert Scurfield, Robert R. Scurfield & Associates, 238 Oxford St., Winnipeg, MB, R3M 3J6; phone: 204-981-5605; fax: 204-489-6204; or email: rscurf@mb.sympatico.ca

*  *  *  *  *  *

TERRITORY SALES REPRESENTATIVE:

A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls.

The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your resumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted.

*  *  *  *  *  *

TERRITORY SALES REPRESENTATIVE:

Established sales agency requires an experienced and enthusiastic Sales Professional for Ontario.

Qualified candidates need to be knowledgeable of the mass market, home centre and hardware industry as well as interested in an opportunity to learn the sales agency business. A desire to eventually own the agency could be an asset.

Send resumé via email to patstoy@istar.ca. We thank all applicants in advance and advise that only candidates selected for an interview will be contacted.

*  *  *  *  *  *

SALES AGENT ATLANTIC CANADA:

As a national leader in woodworking products, we require an enthusiastic professional Sales Agent for Atlantic Canada.

The ideal candidate has three years of detailed field sales experience in the hardware industry, preferably in Atlantic Canada. A background in power tools is an asset.

If you are looking for a progressive organization and a competitive compensation package, please forward your résumé highlighting your experience and knowledge of your marketplace, to Hardlines fax: 416-489-6154, email: buzz@hardlinesfax.com. We thank all applicants in advance and advise that only candidates selected for an interview will be contacted.

*  *  *  *  *  *

B.C. SALES AGENT – PAINT SUNDRIES:

Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send resumé via email to deftsales@home.com; or fax 905-951-0977.

______________________________________________

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

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

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

______________________________________________

“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.

______________________________________________

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

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

by McLARNEYCOM

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

© 2001 by Michael McLarney.

______________________________________________

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). You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.

Mar. 13, 2001

Canada’s electronic news service for the home improvement industry

March 12, 2001

Volume vii, #10

Michael McLarney, Editor & Publisher

Phone: 416.489.3396

Fax: 416.489.6154

email: mike@hardlinesfax.com

hardlines.ca

*  *  *  *  *  *

IN THIS ISSUE:

* Costco to trim Western office and open new national office

* Réno-Dépôt continues Ontario expansion with newest Building Box

* Home Depot in no hurry to open Expo stores here

* Residential building intentions surge in January

*  *  *  *  *  *

“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! You can order this incredible book online: http://www.securewebsite.net/~hardline/order.html or contact Nancy Wright at nancy@hardlinesfax.com; phone: 416-489-3396 for more information.

*  *  *  *  *  *

COSTCO WILL CENTRALIZE NON-FOOD BUYING

IN NEW OTTAWA LOCATION

Costco Canada Inc. has confirmed it will combine its two buying offices, one in Burnaby, BC and the other in Montréal, to a new location in Ottawa. The move will roll together the non-food hardlines buying functions under Gerry Lieben, currently vice-president, merchandising in the East, who will head up the non-food side for the entire country. While the chain of command for the new office has not been finalized, some people and ordering will likely move into the new Ottawa location by late July, with an effective start date for that office of September 1, 2001.

The Burnaby location will continue as a regional re-order office for non-food hardlines, similar to Costco’s system in the U.S., headed by a regional general merchandising manager. But that department will shrink from the current 80 staff to about 15 or 17. Meanwhile, food buying will remain intact in Burnaby, operating as both a buying and re-ordering office.

______________________________________________

BUILDING BOX OPENS THIRD STORE, 13 MORE PLANNED

A big box opening in Brampton, ON last Wednesday constitutes the latest step in Réno-Dépôt’s expansion in Ontario. That expansion involves a $350 million investment and the construction of at least 15 Building Box stores in the province, the majority of them in the Greater Toronto Area, as well as the Ottawa Capitol Region. The first two opened late last year, in Scarborough and Cambridge.

The Brampton store is in a rapidly growing satellite community of Toronto, where Home Depot has two stores already and where Rona will open its own new-concept big box in a couple of weeks. The Building Box is 120,000 sq.ft. in size, plus a 30,000-sq.ft. garden centre. Other sites include Mississauga and London. Both are expected to open this year, says Yves Archambault, president and CEO of Réno-Dépôt.

The next phase of Réno-Dépôt’s expansion will take it across the country. Archambault won’t say exactly where, but insists the wheels are in motion. “We are looking in other markets and we’re already landed banking in those markets,” he says. “We see having about 33 to 35 big boxes in total in Canada.”

Meanwhile, the company continues to open Réno-Dépôt stores in its home province of Québec. A new site in Beauport had its soft opening last Wednesday, as well. The hard opening is March 14. Another store will go into the Ste-Dorothée area of Laval at the end of May, followed by Sherbrooke in the Fall.

______________________________________________

NO CANADIAN PLANS FOR EXPO STORES IN NEAR FUTURE

Home Depot is not expected to launch its EXPO stores in Canada anytime soon, says the newest addition to the EXPO executive team in the U.S., John Herbert. ”There are no plans for Canada that I know of,” he admitted in an exclusive interview with Hardlines.

Home Depot has aggressive expansion plans for its upscale décor-oriented retail format. However, Canadian infiltration is not on the books yet. While both Home Depot CEO Arthur Blank and Canadian president Annette Verschuren have agreed it’s only a matter of time, that time will be later rather than sooner – certainly not within the next year at least.

A veteran of European home improvement retailing, Herbert spent the last 17 years as president of Knauber, an innovative retailer in Germany. He joined on with Home Depot as president of the Western division of Expo Design Centers at the beginning of the year. He works out of Orange, California.

______________________________________________

COMPANIES IN THE NEWS

Réno-Dépôt management resumed activities at its Point-Claire warehouse store on March 7, after over a month of closure due to labour conflicts. The strike was terminated after an agreement in principle was reached between the union and Réno-Dépôt.

Rona Inc. has just ratified a new six-year collective agreement with the 250 unionized employees at its distribution centre in Boucherville, QC. This new labour contract, approved over the past few days by 88% of the members of Local 1999, which is affiliated with the Teamster’s Union, brings an end to many months of negotiations between the parties.

The Hudson’s Bay Co. posted results for the year ending January 31, 2001, including a 37% increase in earnings. Sales and revenue grew 3.1% to $7.5 billion from $7.29 billion the previous year. Both of the company’s main retail banners posted improvements: The Bay’s sales were 7.6% higher than last year, while sales for Zellers reached $4.64 billion, up 0.9%.

Canadian Forest Products Ltd. (Canfor) has signed a memorandum of understanding with DynaMotive Technologies Co. to develop commercial applications for BioOil in the forest industry. BioOil technology enables the conversion of sawmill wood residue into clean burning fuel, which would increase Canfor’s energy self-sufficiency and reduce its greenhouse gas emissions.

Orgill Distributors launched new e-commerce initiatives at its recent dealer show in Memphis, TN. The latest developments involve a “mall site,” a forum for Orgill’s dealer customers to interact with other sites, including vendors’ own sites. Drop shipment orders can be placed directly through the vendors’ websites, with the order then routed through Orgill’s credit department.

Costco Wholesale Co. posted a 3% profit decline for its second quarter ended February 18. Sales for the same period were up 7% to US$8.16 billion from US$7.61 billion last year. The company plans to open 14 to 16 new stores before the end of its 2001 fiscal year on September 2.

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CANADIAN STOCK WATCH

COMPANY            52-WEEK HIGH            52-WEEK LOW            CLOSE (FRI.)

Canadian Tire            24.90                15.05                20.75                  22.70

Canfor               19.80                7.65                 9.75                     9.90

Goodfellow            12.55                8.50                    8.75                    9.25

Home Depot            70.00                34.68                40.01                  44.52

Hudsons Bay            19.10                12.40                18.25                  17.25

Lowe’s              67.25                34.25                54.58                  62.47

Sears Canada            41.00                19.60                24.80                  22.40

Taiga Forest            14.20                6.80                    7.40                    7.40

West Fraser            38.00                21.00                30.50                  34.74

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“The more I want to get something done, the less I call it work.”

– Richard Bach (American author)

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PEOPLE ON THE MOVE

Following the announced retirement of Wolf Gruber as president of Ace Hardware Canada, Rob Collins, formerly director of sales, has been named to oversee the Canadian operations until a replacement for Gruber is found. Collins will report to Paul Ingevaldson, vice-president international and technology for Ace in Oak Brook, Ill. The move becomes effective at the end of March. (905-475-1188)

John Rankin, formerly vice-president dealer relations at Canadian Tire Corp., has left the company effective last Thursday. The move is reported to be a mutual decision on the part of Rankin and the company. A search is under way both internally and externally for a replacement. (416-480-3000)

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MARKET INDICATORS

Canadian housing starts dipped 8.6% for the month of February, a decline considered normal for the mid-winter season. According to analysts, however, the market is still poised for a boom due to recent interest rate cuts and rising disposable incomes. Supporting this optimism is $3.8 billion worth of building permits issued in January. Single and multi-family dwellings represented 53% of all permits issued for the month.

Building permits recorded a healthy gain in January, up 21.5% over December 2000. The gains came from both residential (+22.0%)and non-residential sectors (+20.9%). Building permits for single-family dwellings rose 16.2% to $1.4 billion in January, following a 6.4% decline in December. Multiple dwelling intentions jumped 37.5% to $608 million. The strength of building intentions in January reflects a surge in the housing market for the same month, when starts rose 20.1%. January’s total was also up over January 2000 by 13.2%. Regionally, residential building permits were up the most in Québec (+32.2% to $379 million), and Ontario (+30.0% to $988 million). Nova Scotia was the only province to post a decline (-1.9% to $34 million)

Retail sales in the U.S. slowed in February due to a drop in consumer confidence and ensuing reluctance to buy spring merchandise. High energy prices, job cuts and volatile stock markets caused a 4½-year low in consumer confidence. The end of winter was also cited as a factor in this decrease, particularly for specialty stores. Kmart Corp. said its sales rose 3.3 %, while value-priced retailer Kohl’s Corp. reported a strong 7.3% increase. In contrast, Sears, Roebuck and Co. reported a 2% decline in sales. Costco Wholesale Co. posted sales up 7%.

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NOTED …

Rona Cashway’s Brampton store, across the street from the newly-opened Building Box, is offering a customer appreciation sale from March 14th to 24th. This sale precedes the closing of the store and the transfer of staff and inventory to the new Rona Home Solutions store, which will open on March 28 in Brampton.

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* * * * *HARDLINES MARKETPLACE* * * *

Just $16 per line. Contact Eugenia Canas at 416.489.3396

or email: buzz@hardlinesfax.com

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SALES AGENT ATLANTIC CANADA:

As a national leader in woodworking products, we require an enthusiastic professional Sales Agent for Atlantic Canada.

The ideal candidate has three years of detailed field sales experience in the hardware industry, preferably in Atlantic Canada. A background in power tools is an asset.

If you are looking for a progressive organization and a competitive compensation package, please forward your resumé highlighting your experience and knowledge of your marketplace, c/o Hardlines, Box #104; fax: 416-489-6154; email buzz@hardlinesfax.com.(Please include box # on resumé). We thank all applicants in advance and advise that only candidates selected for an interview will be contacted.

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CUSTOMER SERVICES/SALES GENIUS:

canadianretail.com is Canada’s first retail industry-specific jobsite. An ambitious, flexible, easy-to-use job board, it will provide an excellent, targeted opportunity for retailers across Canada to post available jobs and search our retail-specific database of qualified retail employees from part-time hourly associates through to presidents. It will provide job seekers with a quick, efficient, and confidential way to explore the best retail positions in Canada.

This new enterprise requires an individual from the Home Improvement or Home Furnishings area with expertise in selling this valuable service as well as providing breathtaking customer service to our growing and existing clientele. All contact is over the telephone or over the Internet from our Vancouver offices.

Experience in the home improvement or home furnishings area of the Canadian retail industry is a must, as is good computer competence, and a proven ability to sell. Base salary plus commission could provide a VERY lucrative income to the right individual.

For more information, please contact Debbie Ellis, customer service manager at canadianretail.com, fax: 604-269-2822; phone: 1-866-442-0044; email: dellis@canadianretail.com; mail to 306, 2309 West 41st Avenue, Vancouver, BC V6M 2A3. More details on the website: www.canadianretail.com

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TERRITORY SALES REPRESENTATIVE:

Porter-Cable Delta, a recognized provider of quality woodworking products worldwide, currently requires an enthusiastic professional as Territory Sales Rep – Southwestern Ontario.

A resourceful individual with the ability to organize and communicate successfully, you’ll be directing the operations for your territory and meeting strategic objectives. As a high achiever, you have three years’ field sales experience in the hardware industry, machinery knowledge, and computer literacy. You have a valid driver’s licence and a diploma/degree in Business. A background in power tools is desirable.

If you are looking for a progressive organization and a competitive compensation package, please send your resumé to Human Resources: 519-836 9352; 505 Southgate Drive, P.O. Box 848, Guelph, ON  N1H 6M7.

We thank all applicants in advance and advise that only candidates selected for an interview will be contacted.

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RETAIL PRODUCT MANAGER:

A well established company requires an experienced, energetic person to manage the marketing of its retail product lines. Experience and understanding of all aspects of the retail hardlines – Multi SKU – business, combined with a strong sales background, is a must. Applicants must be graduates of a sales and marketing program, have above average computer skills and possess excellent written and verbal communication skills.

Send or fax resumé to the attention of Luann Busch, Personnel, Canada Cordage Inc., 50 Ottawa St. S., Kitchener, ON  N2G 3S7; fax: 519-745-4290.

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NATIONAL ACCOUNT MANAGER:

The Mibro Group, a leading supplier of hardware, chain, chain accessories and power tool accessories based in Scarborough, ON, seeks an individual to manage one of its largest Canadian accounts, a major home centre chain.

Working in our corporate office and reporting to the Vice President of Sales, this individual will be responsible for the sales and overall customer service of their accounts.  In meeting agreed upon sales objectives and constantly looking for ways to increase, enhance and expand Mibro’s business, the National Account Manager will work with the sales and marketing teams to collect accurate competitive information and support Mibro’s sales initiatives.

The ideal candidate will have a proven track record of sales in non-branded products, a personable approach to selling, high self-motivation and a competitive nature. Computer skills including the use of Excel, strong business writing capabilities and knowledge of hardware products are also important.

We offer a competitive compensation and benefits package. If you are interested in this position and work well in a high-energy environment, please send your resumé and wage requirements by March 7, 2001 to: The Mibro Group, 111 Sinnott Road, Toronto, ON  M1L 4S6; email: hrc@mibro.com; fax: (416) 285-9623.

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BUYER — HARDWARE:

Ace Hardware Canada Ltd., a world leader in hardware supply and distribution with operations in Markham, Brantford and Calgary, has an immediate opening at its head office for the position of Buyer – Hardware.

As the successful candidate, you will have five or more years buying experience in the wholesale hardware or LBM industry; a solid record of continued accomplishments with enhanced negotiating and product management skills; and an understanding of computer systems as they relate to the role of buying today. In addition to buying expertise, you will need superior communication and customer service skills to ensure that our customers remain your first priority.

Ace Canada offers a competitive compensation package and career potential. Qualified candidates should send their resumé, including salary history/expectations, to: Human Resources, Ace Hardware Canada Ltd., 80 Micro Court, 3rd Floor; Markham, ON  L3R 9Z5; e-mail: stan.sauer@acehardware.ca; fax: 905-475-2721.

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TERRITORY SALES REPRESENTATIVES:

Royal International, a supplier of quality hand tools, organizational products, rope and cordage under the brand names KC Pro, Kapro, Crawford and Lehigh, requires two experienced professional sales representatives. One position is for Ontario, based in the GTA; the other is in Québec, based in either Montréal or Québec City.

Qualified candidates will be organized high achievers, with computer literacy and sales experience in the hardware industry. If interested in joining a fast growing company that offers a competitive compensation package, please send resumé in strictest confidence, Attention: V.P. Sales and Marketing; e-mail sales@royalinternational.com; fax 514-735-8702.

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HARDLINES™ the electronic newsletter  hardlines.ca

Phone: 416.489.3396; Fax: 416.489.6154

Michael McLarney, Editor & Publisher: mike@hardlinesfax.com

Eugenia Canas, Assistant Editor: buzz@hardlinesfax.com

Beverly Allen, Marketing Manager: bev@hardlinesfax.com

Nancy Wright, Circulation Manager: nancy@hardlinesfax.com

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

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

© 2001 by Michael McLarney.

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THE HARDLINES “FAIR PLAY” POLICY:

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

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