* 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.
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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.
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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.
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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
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.
* * * * * *
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
* * * * * *
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.
* * * * * *
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.
* * * * * *
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.
* * * * * *
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.
* * * * * *
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.
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.
Canada’s electronic news service for the home improvement industry
February 26, 2001
Volume vii, #8
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlinesfax.com hardlines.ca
* * * * * *
IN THIS ISSUE:
* Cologne Fair draws Canucks amidst continued
consolidation of European market
* Home Depot sales up 19% in 2000
* Retail sales up in 2000
* Home Depot CEO announces retirement
* * * * * *
COLOGNE HARDWARE FAIR FEATURES MODEST
CANADIAN PRESENCE AMIDST CONTINUED RETAIL CONSOLIDATION
Last week’s International Hardware Fair in Cologne, Germany, was host to 3,800 exhibitors, 53,000 visitors – and untold rumours. The European market is still bracing for the anticipated arrival of Home Depot, where, like in Canada, it is expected to arrive through acquisition. Key targets of such a takeover include Castorama, the DIY division of Kingfisher, which also owns Réno-Dépôt in Canada.
Other rumours involve Home Depot’s potential merger of number one European player OBI’s big box stores in Germany. Home Depot appears best suited to follow Wal-Mart’s strategy of securing a local merchant that has knowledge of the market and can hasten the giant’s successful entry into Europe.
Meanwhile, European retailers focus on expansion into other countries, such as OBI’s move into southern Europe and now China, where it has one store. Baumax, one of the top 10 in Europe, has 117 stores and while not the market dominant, is securing a stronghold in smaller countries where it positions itself as a market leader.
Canadians’ willingness to take a more global view of the marketplace appears to come in fits and starts. Attendance by Canadian manufacturers was down this year over last. A group stand hosted by External Affairs Canada featured only 12 exhibitors, down from as many as 25 in years past. However, the companies that did exhibit were unanimous in their positive response to their involvement.
Jayne Seagrave from Vancouver Tool Corp. has in fact been busy throughout Europe. She began by establishing contacts at the DIY Show in the U.K. earlier in the month. Then she flew to the Cologne show as a first time exhibitor. Here she made a connection with supplier that will package her company’s product in Europe to regional specifications.
She still has her sights set on the U.S., so she raced back to the west coast in time for a 20-minute appointment at Home Depot’s open to buy day in California at the end of the week.
From the buyer side, a number of major retailers were conspicuous by their absence. Aside from Sears Canada, which brought a coterie of buyers, and Réno-Dépôt, a number of large Canadian retail players failed to send anyone to search out new ideas, new products or new merchandising on behalf of their stores. “We think it’s the best show for us,” says Eric Scrafield, national business manager for Sears Canada’s Craftsman Home Team. “There’s more to see – more products, more innovations and more ideas – and a show is about ideas and about building future relationships.”
Even TORBSA, an Ontario buying group comprising 50 contractor-oriented yards, saw the value of sending a representative, Don Bastien from Target Building Supplies in Windsor, ON was in town for all four days of the show.
The two key shows on the international market are coming down to Cologne and Chicago, which hosts the National Hardware Show each August. But even the frequency of these events is coming into question, as large manufacturers, notably Bosch and Black & Decker, now alternate their presence between each show from year to year.
A manager for the Cologne Hardware Fair indicated that large scale changes are planned for next year’s show to accommodate those vendors that exhibit only every two years.
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HOME DEPOT YEAR END REMAINS
STRONG DESPITE 4Q SLOWDOWN
Sales growth continued for Home Depot Inc. in 2000, but that growth came largely in the first half of the year – and from the addition of new stores. For the fiscal year ended Jan. 28, 2001, sales worldwide increased 19% to US$45.7 billion, compared with US$38.4 billion for the same period a year earlier. The company’s profitability was also healthy, up 11% to US$2.6 billion, from US$2.3 billion for fiscal 1999. Same-store sales rose 4% in 2000, lacking the benefit of both last year’s Y2K uncertainty and two hurricanes, which caused tremendous devastation in many southern U.S. states.
Sales for the fourth quarter of fiscal 2000 totalled US$10.5 billion, an increase of 14% over the fourth quarter of 1999. However, the company was faced with a 20% profit decline for its fourth quarter. Sales during the period rose 14% to US$10.46 billion, from US$9.17 billion, but same-store sales were flat. The company said these were hurt by 2% deflation in lumber pricing, which reached an eight-year low during the quarter.
According the Home Depot’s new president and CEO, Robert Nardelli in prepared statement, “The uncertainty of the current economy continues to put tremendous pressure on consumer spending. However, we are confident of our ability to control operating expenses while rolling out major innovative merchandising and customer service programs and opening 200 new stores during the coming year.”
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INSULATION AND HEATING SMARTS GET
BEST NEW CANADIAN PRODUCT AWARD
Canadian innovation got the nod in a tied decision for Best New Canadian Product Award at this year’s Canadian Hardware and Building Materials Show. Heat-Line Corp. and Ever Ready Closures Inc. beat out nearly 100 other new products entered in the competition, which was sponsored by the Canadian Hardware and Housewares Manufacturers Association.
Heat-Line was a recipient for its Paladin-I, a self-regulating heating cable system that microscopically compensates for temperature variables and prevents the formation of ice and snow on roofs and freeze-up in pipes.
Ever Ready received the award for its Fire Rated Retrofit Door Kit, which converts existing doors into 20-minute fire-rated doors. This DIY product also increases the insulating value of existing doors and helps to eliminate drafts and noises.
The competition was limited to firms exhibiting at the show. All entries had to be manufactured in Canada and have gone into production in the last 18 months.
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COMPANIES IN THE NEWS
Sales in 2000 climbed 10% for Wal-Mart to US$56.56 billion from US$51.39 billion. The Wal-Mart stores segment saw sales rise 12% to $35.48 billion and the Sam’s Club unit recorded sales of US$7.48 billion, up 6.1%. Sales at the McLane Co. unit, a convenience-store distributor wholly owned by Wal-Mart, jumped 28% to $3.54 billion, while the international segment turned in sales of $10.06 billion, up 2.2%. Same-store sales rose 3.1%, with the Wal-Mart stores reporting a 3% increase and the Sam’s unit up 3.3%. Wal-Mart is reportedly also in negotiations to enter the Philippines with a regional headquarters and stores.
Kingfisher Plc in the U.K. is considering the selloff of its German electrical division, Wegert, which bleeding red ink, says a Reuters report. Kingfisher is focussing on the operation of its DIY chains, Castorama and B&Q.
Rona held an open house on February 22 to promote recruitment for 600 new jobs at the following L’entrepôt stores in Québec: Anjou, Laval, Mascouche, Saint-Laurent, Brossard and Saint- Bruno-de-Montarville.
Emco Ltd. announced fourth quarter and year end results for the year ended December 31, 2000, reporting a net loss for the fourth quarter of $1.9 million, compared with a loss of $0.8 million for the same period last year. Emco’s total sales for the fourth quarter were $302 million, a decrease of 3%, compared with $311 million in 1999. For the 12-month period, net earnings were $1.8 million, versus $10.7 million in 1999. Sales were $1.25 billion, flat compared with the previous year.
“Do not the most moving moments of our lives find us without words?”
– Marcel Marceau (French mime)
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MARKET INDICATORS
Canadian retail sales grew 6.3% in 2000, says Stats Canada, to a record $277.1 billion, the third largest annual increase in the last 10 years. Retail sales were up in every province, led by Alberta (+8.9%) and Ontario (+7.2%). Sales in December over November were up 0.09% to $23.7 billion.
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PEOPLE ON THE MOVE
Some changes at Sears Canada: Bob Masich has taken over as buyer for power tools. Formerly buyer for air products, he replaces Ralph Jones, who has left the company to start his own enterprise … Greig Carson replaces Masich as buyer for air products. He moves over from buying for paint and wallpaper … Lew McGinniss is now buyer for carpenters’ hand tools, including compressors and power washers. He was formerly associate buyer for paint … Cindy Jardin has taken over as paint and wallpaper buyer, replacing Carson. (416-362-1711)
Home Depot has named Mary Halton as vice-president human resources for its Canadian division. She spent the past 11 years with Kraft Canada, most recently as vice-president human resources. Prior to that, she held various human resources positions in the public, high tech and electronics sectors. (416-609-0852)
At Hudson’s Bay Co., Michael Rousseau has been appointed executive vice-president and CFO, effective March 5, 2001. He takes over from Gary Lukassen, who had previously announced his intention to retire. He was most recently senior vice-president and CFO of a U.S. based multi-national. Rousseau is a Canadian citizen, 43 years old and is married with four children. (416-861-6112)
Arthur Blank will not stand for re-election to the Board of directors of Home Depot Inc. in 2001. This decision, he stated, was based primarily on a successful transition of the chief executive role to newly named CEO, Robert Nardelli. Blank will continue to serve as co-chairman until his term ends May 30, at which time Bernie Marcus, co-founder and co-chairman, is expected to continue as chairman of the board. Marcus himself faces mandatory retirement in May 2002. (770-433-8211)
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* * * * *HARDLINES MARKETPLACE* * * *
______________________________________________
TERRITORY MANAGER – ONTARIO:
Master Lock, the world leader in padlock and related security products is seeking a Territory Manager, Ontario – Commercial ready to prove they have what it takes to increase sales and distribution, thus expanding our market leading position.
We are looking for a results driven, high achiever who understands what it takes to drive customer satisfaction. This individual is very organized, computer literate, and supports the team approach. Responsibilities will include, but are not limited to, sales, service and market development of all Master Lock product lines in the industrial, locksmith and locker lock channels of trade.
This position reports to the Commercial Business Unit Manager, Canada. We offer a competitive salary, bonus, automobile and full benefits. Candidates qualified for this position should send their resumé in the strictest confidence to Debbie Molignano at our Oakville office. E-mail: dmolignano@mlock.com, or fax 905 829-5165.
* * * * * *
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 advice that only candidates selected for an interview will be contacted.
* * * * * *
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.
* * * * * *
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.
* * * * * *
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.
* * * * * *
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.
HARDLINES WHO’S WHO 2000-2001 EDITION: The only annual guide to Canada’s leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. The Who’s Who lists more than 100 companies, with executives, product categories, sales, number of outlets, buyers, etc. The cost is only $125 for subscribers, or $165 for non-subscribers (+GST/HST).
“THE 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 both these incredible books online: https://www.securewebsite.net/~hardline/order.html or contact Nancy Wright at nancy@hardlinesfax.com; phone: 416-489-3396 for more information.
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 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.
Canada’s electronic news service for the home improvement industry
February 26, 2001
Volume vii, #8
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlinesfax.com hardlines.ca
* * * * * *
IN THIS ISSUE:
* Cologne Fair draws Canucks amidst continued
consolidation of European market
* Home Depot sales up 19% in 2000
* Retail sales up in 2000
* Home Depot CEO announces retirement
* * * * * *
COLOGNE HARDWARE FAIR FEATURES MODEST
CANADIAN PRESENCE AMIDST CONTINUED RETAIL CONSOLIDATION
Last week’s International Hardware Fair in Cologne, Germany, was host to 3,800 exhibitors, 53,000 visitors – and untold rumours. The European market is still bracing for the anticipated arrival of Home Depot, where, like in Canada, it is expected to arrive through acquisition. Key targets of such a takeover include Castorama, the DIY division of Kingfisher, which also owns Réno-Dépôt in Canada.
Other rumours involve Home Depot’s potential merger of number one European player OBI’s big box stores in Germany. Home Depot appears best suited to follow Wal-Mart’s strategy of securing a local merchant that has knowledge of the market and can hasten the giant’s successful entry into Europe.
Meanwhile, European retailers focus on expansion into other countries, such as OBI’s move into southern Europe and now China, where it has one store. Baumax, one of the top 10 in Europe, has 117 stores and while not the market dominant, is securing a stronghold in smaller countries where it positions itself as a market leader.
Canadians’ willingness to take a more global view of the marketplace appears to come in fits and starts. Attendance by Canadian manufacturers was down this year over last. A group stand hosted by External Affairs Canada featured only 12 exhibitors, down from as many as 25 in years past. However, the companies that did exhibit were unanimous in their positive response to their involvement.
Jayne Seagrave from Vancouver Tool Corp. has in fact been busy throughout Europe. She began by establishing contacts at the DIY Show in the U.K. earlier in the month. Then she flew to the Cologne show as a first time exhibitor. Here she made a connection with supplier that will package her company’s product in Europe to regional specifications.
She still has her sights set on the U.S., so she raced back to the west coast in time for a 20-minute appointment at Home Depot’s open to buy day in California at the end of the week.
From the buyer side, a number of major retailers were conspicuous by their absence. Aside from Sears Canada, which brought a coterie of buyers, and Réno-Dépôt, a number of large Canadian retail players failed to send anyone to search out new ideas, new products or new merchandising on behalf of their stores. “We think it’s the best show for us,” says Eric Scrafield, national business manager for Sears Canada’s Craftsman Home Team. “There’s more to see – more products, more innovations and more ideas – and a show is about ideas and about building future relationships.”
Even TORBSA, an Ontario buying group comprising 50 contractor-oriented yards, saw the value of sending a representative, Don Bastien from Target Building Supplies in Windsor, ON was in town for all four days of the show.
The two key shows on the international market are coming down to Cologne and Chicago, which hosts the National Hardware Show each August. But even the frequency of these events is coming into question, as large manufacturers, notably Bosch and Black & Decker, now alternate their presence between each show from year to year.
A manager for the Cologne Hardware Fair indicated that large scale changes are planned for next year’s show to accommodate those vendors that exhibit only every two years.
______________________________________________
HOME DEPOT YEAR END REMAINS
STRONG DESPITE 4Q SLOWDOWN
Sales growth continued for Home Depot Inc. in 2000, but that growth came largely in the first half of the year – and from the addition of new stores. For the fiscal year ended Jan. 28, 2001, sales worldwide increased 19% to US$45.7 billion, compared with US$38.4 billion for the same period a year earlier. The company’s profitability was also healthy, up 11% to US$2.6 billion, from US$2.3 billion for fiscal 1999. Same-store sales rose 4% in 2000, lacking the benefit of both last year’s Y2K uncertainty and two hurricanes, which caused tremendous devastation in many southern U.S. states.
Sales for the fourth quarter of fiscal 2000 totalled US$10.5 billion, an increase of 14% over the fourth quarter of 1999. However, the company was faced with a 20% profit decline for its fourth quarter. Sales during the period rose 14% to US$10.46 billion, from US$9.17 billion, but same-store sales were flat. The company said these were hurt by 2% deflation in lumber pricing, which reached an eight-year low during the quarter.
According the Home Depot’s new president and CEO, Robert Nardelli in prepared statement, “The uncertainty of the current economy continues to put tremendous pressure on consumer spending. However, we are confident of our ability to control operating expenses while rolling out major innovative merchandising and customer service programs and opening 200 new stores during the coming year.”
______________________________________________
INSULATION AND HEATING SMARTS GET
BEST NEW CANADIAN PRODUCT AWARD
Canadian innovation got the nod in a tied decision for Best New Canadian Product Award at this year’s Canadian Hardware and Building Materials Show. Heat-Line Corp. and Ever Ready Closures Inc. beat out nearly 100 other new products entered in the competition, which was sponsored by the Canadian Hardware and Housewares Manufacturers Association.
Heat-Line was a recipient for its Paladin-I, a self-regulating heating cable system that microscopically compensates for temperature variables and prevents the formation of ice and snow on roofs and freeze-up in pipes.
Ever Ready received the award for its Fire Rated Retrofit Door Kit, which converts existing doors into 20-minute fire-rated doors. This DIY product also increases the insulating value of existing doors and helps to eliminate drafts and noises.
The competition was limited to firms exhibiting at the show. All entries had to be manufactured in Canada and have gone into production in the last 18 months.
______________________________________________
COMPANIES IN THE NEWS
Sales in 2000 climbed 10% for Wal-Mart to US$56.56 billion from US$51.39 billion. The Wal-Mart stores segment saw sales rise 12% to $35.48 billion and the Sam’s Club unit recorded sales of US$7.48 billion, up 6.1%. Sales at the McLane Co. unit, a convenience-store distributor wholly owned by Wal-Mart, jumped 28% to $3.54 billion, while the international segment turned in sales of $10.06 billion, up 2.2%. Same-store sales rose 3.1%, with the Wal-Mart stores reporting a 3% increase and the Sam’s unit up 3.3%. Wal-Mart is reportedly also in negotiations to enter the Philippines with a regional headquarters and stores.
Kingfisher Plc in the U.K. is considering the selloff of its German electrical division, Wegert, which bleeding red ink, says a Reuters report. Kingfisher is focussing on the operation of its DIY chains, Castorama and B&Q.
Rona held an open house on February 22 to promote recruitment for 600 new jobs at the following L’entrepôt stores in Québec: Anjou, Laval, Mascouche, Saint-Laurent, Brossard and Saint- Bruno-de-Montarville.
Emco Ltd. announced fourth quarter and year end results for the year ended December 31, 2000, reporting a net loss for the fourth quarter of $1.9 million, compared with a loss of $0.8 million for the same period last year. Emco’s total sales for the fourth quarter were $302 million, a decrease of 3%, compared with $311 million in 1999. For the 12-month period, net earnings were $1.8 million, versus $10.7 million in 1999. Sales were $1.25 billion, flat compared with the previous year.
“Do not the most moving moments of our lives find us without words?”
– Marcel Marceau (French mime)
______________________________________________
MARKET INDICATORS
Canadian retail sales grew 6.3% in 2000, says Stats Canada, to a record $277.1 billion, the third largest annual increase in the last 10 years. Retail sales were up in every province, led by Alberta (+8.9%) and Ontario (+7.2%). Sales in December over November were up 0.09% to $23.7 billion.
______________________________________________
PEOPLE ON THE MOVE
Some changes at Sears Canada: Bob Masich has taken over as buyer for power tools. Formerly buyer for air products, he replaces Ralph Jones, who has left the company to start his own enterprise … Greig Carson replaces Masich as buyer for air products. He moves over from buying for paint and wallpaper … Lew McGinniss is now buyer for carpenters’ hand tools, including compressors and power washers. He was formerly associate buyer for paint … Cindy Jardin has taken over as paint and wallpaper buyer, replacing Carson. (416-362-1711)
Home Depot has named Mary Halton as vice-president human resources for its Canadian division. She spent the past 11 years with Kraft Canada, most recently as vice-president human resources. Prior to that, she held various human resources positions in the public, high tech and electronics sectors. (416-609-0852)
At Hudson’s Bay Co., Michael Rousseau has been appointed executive vice-president and CFO, effective March 5, 2001. He takes over from Gary Lukassen, who had previously announced his intention to retire. He was most recently senior vice-president and CFO of a U.S. based multi-national. Rousseau is a Canadian citizen, 43 years old and is married with four children. (416-861-6112)
Arthur Blank will not stand for re-election to the Board of directors of Home Depot Inc. in 2001. This decision, he stated, was based primarily on a successful transition of the chief executive role to newly named CEO, Robert Nardelli. Blank will continue to serve as co-chairman until his term ends May 30, at which time Bernie Marcus, co-founder and co-chairman, is expected to continue as chairman of the board. Marcus himself faces mandatory retirement in May 2002. (770-433-8211)
______________________________________________
* * * * *HARDLINES MARKETPLACE* * * *
______________________________________________
TERRITORY MANAGER – ONTARIO:
Master Lock, the world leader in padlock and related security products is seeking a Territory Manager, Ontario – Commercial ready to prove they have what it takes to increase sales and distribution, thus expanding our market leading position.
We are looking for a results driven, high achiever who understands what it takes to drive customer satisfaction. This individual is very organized, computer literate, and supports the team approach. Responsibilities will include, but are not limited to, sales, service and market development of all Master Lock product lines in the industrial, locksmith and locker lock channels of trade.
This position reports to the Commercial Business Unit Manager, Canada. We offer a competitive salary, bonus, automobile and full benefits. Candidates qualified for this position should send their resumé in the strictest confidence to Debbie Molignano at our Oakville office. E-mail: dmolignano@mlock.com, or fax 905 829-5165.
* * * * * *
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 advice that only candidates selected for an interview will be contacted.
* * * * * *
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.
* * * * * *
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.
* * * * * *
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.
* * * * * *
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.
HARDLINES WHO’S WHO 2000-2001 EDITION: The only annual guide to Canada’s leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. The Who’s Who lists more than 100 companies, with executives, product categories, sales, number of outlets, buyers, etc. The cost is only $125 for subscribers, or $165 for non-subscribers (+GST/HST).
“THE 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 both these incredible books online: https://www.securewebsite.net/~hardline/order.html or contact Nancy Wright at nancy@hardlinesfax.com; phone: 416-489-3396 for more information.
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 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.
Canada’s electronic news service for the home improvement industry
February 19, 2001
Volume vii, #7
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlinesfax.com hardlines.ca
* * * * * *
IN THIS ISSUE:
– Totem Building Supplies joins ILDC
– Canadians access world market at Cologne Fair
– Canadian Tire shows strong presence in seasonal
– Construction industry upbeat on year ahead
– Atlantic show adds McKenna to speakers’ roster
* * * * *
Major West independent Totem Building Supplies joins ILDC
One of Tim-Br-Mart’s key members, Totem Building Supplies, has joined ILDC. Andrew Battagliotti, general manager of ILDC, confirmed this agreement, effective February 16. “They are a major player in Alberta,” Battagliotti said, “and we are very pleased to have them join us as this will strengthen ILDC’s position in Western Canada.” Details will be released early next week.
Totem, which counts with 11 retail and contractor stores and $150 million in sales, has proven a model of the successful medium sized retailer offering an alternative to the big box format.
ILDC is comprised of 21of Canada’s largest independent home improvement chains with a total of 186 outlets from coast to coast. Its members represent regional guys who do not compete directly with one another. Up to now, ILDC’s only player in the West, and the largest ILDC member based on sales numbers, is Revy. But the announced intention of parent company West Fraser to sell off Revy could result in it being merged with another player, which would remove it from the ILDC group.
The initiative to have Totem join the ILDC buying group represents a significant step in mitigating sales losses which could result from Revy’s absence as an ILDC member.
______________________________________________
Canadian exporters pursue international markets in Cologne
Canadian companies are once again using the International Hardware Fair/DIY’TEC in Cologne, Germany, to showcase their products to an international marketplace. The Cologne fair, running until February 21, features group exhibitors from Canada’s tool sector as well as individual exhibitors in the DIY and home improvement categories.
“Canadians have had a strong presence at the fair for well over twenty years,” says Edel Wichmann, manager for Cologne International Trade Shows in Canada. “There are companies that have been attending for a long time, and continue to come back. This inclusion of the Fair in their marketing strategies has resulted in great success for them.”
Among the long-time exhibitors are SPG International, maker of toolboxes and storage units, and The G.H. Company, a producer of driveway, roofing, and waterproofing materials. Other individual exhibitors run the gamut from manufacturers of professional hand tools to producers of water treatment, purifying devices and UV filtration systems for commercial and light industrial uses.
Group exhibitors in the tool section of the Fair are showing under sponsorship of the Canadian Department of Foreign Affairs and International Trade (RENA). Companies featured here include GRK Canada Ltd., M.A.C. Board Inc., and Vancouver Tool Corp.
______________________________________________
Canadian Tire breaks out sales
Canadian Tire has recently released a breakdown of its retail divisions, showing strong growth in leisure and sporting goods. Hardware sales, on the other hand, remain flat.
In 1999, Canadian Tire had 436 associate dealers, generating $4.73 billion in retail sales. Of that, 42.5%, or $2.0 billion, came from its hardware category. CTC’s leisure category, which includes sporting goods and seasonal products, had sales of $1.4 billion, up 16.9% from 1998. Automotive was next, at $1.3 billion.
______________________________________________
Former N.B. premier will speak at Atlantic Show
Frank McKenna, former premier of New Brunswick, will kick off the Atlantic Building Materials Show with a keynote speech on March 24. The kickoff, a first for the show, is intended to boost attendance on the Friday of the event, which runs until Sunday, March 26, in Moncton, NB. The show will open at 9:30 a.m., half an hour later than in the past, to accommodate McKenna’s presentation.
McKenna spent 10 years as premier of the province, and now serves on several boards, including General Motors.
Another new addition to the show’s speaker program is John Brill, president of the Northeastern Retail Lumbermen’s Association. He will speak on Sunday morning, March 26.
______________________________________________
Housing starts begin the year on a strong note
The annual rate of housing starts in Canada increased 20.1% in January 2001, relative to December 2000 numbers. All provinces recorded increases with the exception of Newfoundland and Prince Edward Island. Most of the gains occurred in large metropolitan areas, with Toronto, Vancouver and Montréal leading the way. Urban singles starts inched up with a 5.8% increase; multiple starts were up 48.3%. Most notably, multiple housing and condominium activity in Québec’s urban centres recorded a 57% increase.
In 2000, housing starts in Ontario hit an 11-year high, bolstered mainly by high rates of employment and better-than-average economic performance.
According to CMHC’s National Housing Outlook, apartments will account for approximately 50% of the rise in multiple housing starts; this is triggered by the low rental vacancy rates currently experienced. Construction of condominiums will also increase and will aid in meeting the demand for rental housing. CHMC’s forecasts are supported by the latest Stats Canada numbers on building permits, which are up 3.5%.
As reported in the Hardlines Quarterly Report (Winter 2001), housing starts have been key to the increase in construction. According to the Canadian Construction Association, gross construction output is expected to increase by over 4% to $124.3 billion in 2001.
______________________________________________
COMPANIES IN THE NEWS
Rona will open a $20 million new generation big-box-store in Kingston, ON, in early 2002. All zoning and site plans have been finalized. The 150,000-sq.ft. store will be located near Cataraqui Mall and will feature specialty boutiques, an indoor lumberyard, a greenhouse and a garden centre. The first new generation store is scheduled to open in Brampton, ON in the first or second week of March.
Ainsworth Lumber Co. Ltd. has closed the $52 million bridge loan facility with HSBC Capital (Canada) Inc. and B.C. Pacific Capital Corporation. Proceeds from the financing will be used to complete the construction of Ainsworth’s 50% interest in the Footner OSB facility located in High Level, AB.
International Forest Products Limited has been accepted by the TSE to make a second normal course issuer bid for its Class A Subordinate Voting Shares. The company believes that current market conditions provide opportunities for Interfor to acquire shares at attractive prices and that the purchases will enhance shareholder value.
For its first quarter ended December 31, 2000, Nu-Gro announced sales of $24.1 million, compared with $19.9 million for the same period in 1999. Earnings are lower this year due to reduced profit margins in the fertilizer raw material segment, as well as expenses associated with the acquisition of two businesses, ProTurf and Pursell Vigoro.
Do It Best Corp. in the U.S. has entered into partnership with the developer of the Floor To Ceiling franchise, MRM Inc., with the purpose of expanding the selection of home décor products available to Do It Best members. New purchasing programs will be rolled out as they become available.
Newell Rubbermaid Inc.’s net income fell 23% in the fourth quarter. Net sales dipped to US$1.76 billion from US$1.77 billion a year ago. Earnings in 2001 are expected to be below analysts’ estimates. Joseph Galli Jr., president and CEO, said the company will try to fund increased marketing by redeploying costs and also launch a new product development process.
Consumers paid 3% more in January than they did in January 2000 for the goods and services included in the Consumer Price Index basket. Energy prices went up an average of 10.4% during this period. Among the other important factors contributing to the 12-month increase in all-items CPI in January were mortgage interest cost, meat, food purchased from restaurants and traveller accommodation. However, the drop in prices for the purchase of automotive vehicles, computer equipment and supplies, as well as child care, partly offset this increase.
The CPI declined by 0.3% from December to January. Lower prices for the purchase of automotive vehicles, natural gas, travel tours and gasoline were the largest contributors to the drop.
______________________________________________
PEOPLE ON THE MOVE
Hudson’s Bay Company has appointed Michael Rousseau executive vice president and COO. Mr Rousseau will join the company on March 5, 2001; he succeeds Gary Lukassen. (416-861-4720)
______________________________________________
NOTED …
… Federal Reserve Chairman Alan Greenspan stressed that the chances of the U.S. economy sinking into a recession were low. Testifying before the Senate Banking Committee, Greenspan said: “In the event, and it is a low probability event, that we not only go into a recession but stay there for an extended period of time, it is better to have had lower taxes than otherwise.
“In short, it would be an insurance,” Greenspan added. ”Insurance against a
low-probability event, which indeed is what insurance is really about.”
______________________________________________
* * * * *HARDLINES MARKETPLACE* * * *
______________________________________________
Master Lock, the world leader in padlock and related security products is seeking a Territory Manager, Ontario — Commercial ready to prove they have what it takes to increase sales and distribution, thus expanding our market leading position.
We are looking for a results driven, high achiever who understands what it takes to drive customer satisfaction. This individual is very organized, computer literate, and supports the team approach. Responsibilities will include, but are not limited to, sales, service and market development of all Master Lock product lines in the industrial, locksmith and locker lock channels of trade.
This position reports to the Commercial Business Unit Manager, Canada. We offer a competitive salary, bonus, automobile and full benefits. Candidates qualified for this position should send their resume in the strictest confidence to Debbie Molignano at our Oakville office. E-mail: dmolignano@mlock.com, or fax 905 829-5165.
* * * * * *
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 fax your resume to Human Resources, (519) 836 9352, or mail to 505 Southgate Drive, P.O. Box 848, Guelph, Ontario, N1H 6M7
We thank all applicants in advance and advice that only candidates selected for an interview will be contacted.
* * * * * *
DURING THIS YEAR’S CHS …
Did you visit booth # 3945 to view K & D Products’ new STURDY-STEP product line?
New to Canada, the STURDY-STEP is ideal for any number of business, professional or Do-It-Yourself applications. With a 22″ work platform that holds up to 350 lb. and a top step that is 15½“ high, the STURDY-STEP is the ideal companion for the hard to reach areas.
For further information contact: Pat Smith at 1-866-791-0281; or email at patrickrsmith@home.com. Visit our website at www.sturdy-step.com.
HARDLINES WHO’S WHO 2000-2001 EDITION: The only annual guide to Canada’s leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. The Who’s Who lists more than 100 companies, with executives, product categories, sales, number of outlets, buyers, etc. The cost is only $125 for subscribers, or $165 for non-subscribers (+GST/HST).
“THE 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. Order by February 6, 2001, and SAVE $55 off our regular price! You can order both these incredible books online: https://www.securewebsite.net/~hardline/order.html or contact Nancy Wright at nancy@hardlinesfax.com; phone: 416-489-3396 for more information.
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 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.
Canada’s electronic news service for the home improvement industry
February 19, 2001
Volume vii, #7
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlinesfax.com hardlines.ca
* * * * * *
IN THIS ISSUE:
– Totem Building Supplies joins ILDC
– Canadians access world market at Cologne Fair
– Canadian Tire shows strong presence in seasonal
– Construction industry upbeat on year ahead
– Atlantic show adds McKenna to speakers’ roster
* * * * *
Major West independent Totem Building Supplies joins ILDC
One of Tim-Br-Mart’s key members, Totem Building Supplies, has joined ILDC. Andrew Battagliotti, general manager of ILDC, confirmed this agreement, effective February 16. “They are a major player in Alberta,” Battagliotti said, “and we are very pleased to have them join us as this will strengthen ILDC’s position in Western Canada.” Details will be released early next week.
Totem, which counts with 11 retail and contractor stores and $150 million in sales, has proven a model of the successful medium sized retailer offering an alternative to the big box format.
ILDC is comprised of 21of Canada’s largest independent home improvement chains with a total of 186 outlets from coast to coast. Its members represent regional guys who do not compete directly with one another. Up to now, ILDC’s only player in the West, and the largest ILDC member based on sales numbers, is Revy. But the announced intention of parent company West Fraser to sell off Revy could result in it being merged with another player, which would remove it from the ILDC group.
The initiative to have Totem join the ILDC buying group represents a significant step in mitigating sales losses which could result from Revy’s absence as an ILDC member.
______________________________________________
Canadian exporters pursue international markets in Cologne
Canadian companies are once again using the International Hardware Fair/DIY’TEC in Cologne, Germany, to showcase their products to an international marketplace. The Cologne fair, running until February 21, features group exhibitors from Canada’s tool sector as well as individual exhibitors in the DIY and home improvement categories.
“Canadians have had a strong presence at the fair for well over twenty years,” says Edel Wichmann, manager for Cologne International Trade Shows in Canada. “There are companies that have been attending for a long time, and continue to come back. This inclusion of the Fair in their marketing strategies has resulted in great success for them.”
Among the long-time exhibitors are SPG International, maker of toolboxes and storage units, and The G.H. Company, a producer of driveway, roofing, and waterproofing materials. Other individual exhibitors run the gamut from manufacturers of professional hand tools to producers of water treatment, purifying devices and UV filtration systems for commercial and light industrial uses.
Group exhibitors in the tool section of the Fair are showing under sponsorship of the Canadian Department of Foreign Affairs and International Trade (RENA). Companies featured here include GRK Canada Ltd., M.A.C. Board Inc., and Vancouver Tool Corp.
______________________________________________
Canadian Tire breaks out sales
Canadian Tire has recently released a breakdown of its retail divisions, showing strong growth in leisure and sporting goods. Hardware sales, on the other hand, remain flat.
In 1999, Canadian Tire had 436 associate dealers, generating $4.73 billion in retail sales. Of that, 42.5%, or $2.0 billion, came from its hardware category. CTC’s leisure category, which includes sporting goods and seasonal products, had sales of $1.4 billion, up 16.9% from 1998. Automotive was next, at $1.3 billion.
______________________________________________
Former N.B. premier will speak at Atlantic Show
Frank McKenna, former premier of New Brunswick, will kick off the Atlantic Building Materials Show with a keynote speech on March 24. The kickoff, a first for the show, is intended to boost attendance on the Friday of the event, which runs until Sunday, March 26, in Moncton, NB. The show will open at 9:30 a.m., half an hour later than in the past, to accommodate McKenna’s presentation.
McKenna spent 10 years as premier of the province, and now serves on several boards, including General Motors.
Another new addition to the show’s speaker program is John Brill, president of the Northeastern Retail Lumbermen’s Association. He will speak on Sunday morning, March 26.
______________________________________________
Housing starts begin the year on a strong note
The annual rate of housing starts in Canada increased 20.1% in January 2001, relative to December 2000 numbers. All provinces recorded increases with the exception of Newfoundland and Prince Edward Island. Most of the gains occurred in large metropolitan areas, with Toronto, Vancouver and Montréal leading the way. Urban singles starts inched up with a 5.8% increase; multiple starts were up 48.3%. Most notably, multiple housing and condominium activity in Québec’s urban centres recorded a 57% increase.
In 2000, housing starts in Ontario hit an 11-year high, bolstered mainly by high rates of employment and better-than-average economic performance.
According to CMHC’s National Housing Outlook, apartments will account for approximately 50% of the rise in multiple housing starts; this is triggered by the low rental vacancy rates currently experienced. Construction of condominiums will also increase and will aid in meeting the demand for rental housing. CHMC’s forecasts are supported by the latest Stats Canada numbers on building permits, which are up 3.5%.
As reported in the Hardlines Quarterly Report (Winter 2001), housing starts have been key to the increase in construction. According to the Canadian Construction Association, gross construction output is expected to increase by over 4% to $124.3 billion in 2001.
______________________________________________
COMPANIES IN THE NEWS
Rona will open a $20 million new generation big-box-store in Kingston, ON, in early 2002. All zoning and site plans have been finalized. The 150,000-sq.ft. store will be located near Cataraqui Mall and will feature specialty boutiques, an indoor lumberyard, a greenhouse and a garden centre. The first new generation store is scheduled to open in Brampton, ON in the first or second week of March.
Ainsworth Lumber Co. Ltd. has closed the $52 million bridge loan facility with HSBC Capital (Canada) Inc. and B.C. Pacific Capital Corporation. Proceeds from the financing will be used to complete the construction of Ainsworth’s 50% interest in the Footner OSB facility located in High Level, AB.
International Forest Products Limited has been accepted by the TSE to make a second normal course issuer bid for its Class A Subordinate Voting Shares. The company believes that current market conditions provide opportunities for Interfor to acquire shares at attractive prices and that the purchases will enhance shareholder value.
For its first quarter ended December 31, 2000, Nu-Gro announced sales of $24.1 million, compared with $19.9 million for the same period in 1999. Earnings are lower this year due to reduced profit margins in the fertilizer raw material segment, as well as expenses associated with the acquisition of two businesses, ProTurf and Pursell Vigoro.
Do It Best Corp. in the U.S. has entered into partnership with the developer of the Floor To Ceiling franchise, MRM Inc., with the purpose of expanding the selection of home décor products available to Do It Best members. New purchasing programs will be rolled out as they become available.
Newell Rubbermaid Inc.’s net income fell 23% in the fourth quarter. Net sales dipped to US$1.76 billion from US$1.77 billion a year ago. Earnings in 2001 are expected to be below analysts’ estimates. Joseph Galli Jr., president and CEO, said the company will try to fund increased marketing by redeploying costs and also launch a new product development process.
Consumers paid 3% more in January than they did in January 2000 for the goods and services included in the Consumer Price Index basket. Energy prices went up an average of 10.4% during this period. Among the other important factors contributing to the 12-month increase in all-items CPI in January were mortgage interest cost, meat, food purchased from restaurants and traveller accommodation. However, the drop in prices for the purchase of automotive vehicles, computer equipment and supplies, as well as child care, partly offset this increase.
The CPI declined by 0.3% from December to January. Lower prices for the purchase of automotive vehicles, natural gas, travel tours and gasoline were the largest contributors to the drop.
______________________________________________
PEOPLE ON THE MOVE
Hudson’s Bay Company has appointed Michael Rousseau executive vice president and COO. Mr Rousseau will join the company on March 5, 2001; he succeeds Gary Lukassen. (416-861-4720)
______________________________________________
NOTED …
… Federal Reserve Chairman Alan Greenspan stressed that the chances of the U.S. economy sinking into a recession were low. Testifying before the Senate Banking Committee, Greenspan said: “In the event, and it is a low probability event, that we not only go into a recession but stay there for an extended period of time, it is better to have had lower taxes than otherwise.
“In short, it would be an insurance,” Greenspan added. ”Insurance against a
low-probability event, which indeed is what insurance is really about.”
______________________________________________
* * * * *HARDLINES MARKETPLACE* * * *
______________________________________________
Master Lock, the world leader in padlock and related security products is seeking a Territory Manager, Ontario — Commercial ready to prove they have what it takes to increase sales and distribution, thus expanding our market leading position.
We are looking for a results driven, high achiever who understands what it takes to drive customer satisfaction. This individual is very organized, computer literate, and supports the team approach. Responsibilities will include, but are not limited to, sales, service and market development of all Master Lock product lines in the industrial, locksmith and locker lock channels of trade.
This position reports to the Commercial Business Unit Manager, Canada. We offer a competitive salary, bonus, automobile and full benefits. Candidates qualified for this position should send their resume in the strictest confidence to Debbie Molignano at our Oakville office. E-mail: dmolignano@mlock.com, or fax 905 829-5165.
* * * * * *
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 fax your resume to Human Resources, (519) 836 9352, or mail to 505 Southgate Drive, P.O. Box 848, Guelph, Ontario, N1H 6M7
We thank all applicants in advance and advice that only candidates selected for an interview will be contacted.
* * * * * *
DURING THIS YEAR’S CHS …
Did you visit booth # 3945 to view K & D Products’ new STURDY-STEP product line?
New to Canada, the STURDY-STEP is ideal for any number of business, professional or Do-It-Yourself applications. With a 22″ work platform that holds up to 350 lb. and a top step that is 15½“ high, the STURDY-STEP is the ideal companion for the hard to reach areas.
For further information contact: Pat Smith at 1-866-791-0281; or email at patrickrsmith@home.com. Visit our website at www.sturdy-step.com.
HARDLINES WHO’S WHO 2000-2001 EDITION: The only annual guide to Canada’s leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. The Who’s Who lists more than 100 companies, with executives, product categories, sales, number of outlets, buyers, etc. The cost is only $125 for subscribers, or $165 for non-subscribers (+GST/HST).
“THE 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. Order by February 6, 2001, and SAVE $55 off our regular price! You can order both these incredible books online: https://www.securewebsite.net/~hardline/order.html or contact Nancy Wright at nancy@hardlinesfax.com; phone: 416-489-3396 for more information.
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 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 news service for the home improvement industry
February 12, 2001
Volume vii, #6
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlinesfax.com hardlines.ca
* * * * * *IN THIS ISSUE:
– Rumours take back seat to seminars, awards at Canadian Hardware Show
– Ace signs supply deal with Tim-BR-Marts
– Two more buying groups to develop online trading
– Sunbeam’s woes leave Canadian division unaffected
* * * * * *
RUMOURS TAKE BACK SEAT TO EDUCATION, SALES
AT CANADIAN HARDWARE AND BUILDING MATERIALS SHOW
The 96th edition of the Canadian Hardware and Building Materials Show finished on Tuesday to a mixed bag of responses. As always, the show was a forum for vendors to interact with both key buyers and independent retailers from across the country. While attendance numbers are not yet available, the overall impression was that there were slightly fewer bodies walking this year’s show than in years past.
Nonetheless, the majors were present, including customers from throughout North America. A contingent of 60 retailers even flew in from France for the show. This was also the second year to feature the involvement of the Lumber and Building Materials Association, which rolled its own Canadian Home Centre Show into CHS last year. For the first time this year, the paint and décor section of the show was beefed up thanks to the participation of that sector, which also gave up its own show to join forces with CHS. While many familiar decorating companies were present, a number of newcomers were also seen, adding to the diversity of the section.
There were also fewer rumours circulating. While last year’s show became the showcase for the unveiling of Sodisco-Howden’s new PRO initiative and Rona announced its acquisition of Cashway, this year was bereft of good gossip. (Except for the one about Revy being bought – eventually – by someone.)
In an effort to keep the show fresh and relevant, greater emphasis was placed on the speaker program, which included Steve Johns of the LBMAO outlining the importance of government lobbying, Ian Gray of LBMX on e-commerce as a competitive tool against big boxes and Carson O’Neill of Rincroft Inc., with tips for building the value of one’s own retail business.
(The show was kicked off by an incredible laser sound and light show at the Hardlines Breakfast on February 4. Our thanks to George Lucas for the special effects equipment.)
SOME FEEDBACK ON CHS:
Larry Koza, Can-Save, Barrie, ON: “We had 40 or 50 new products to show. We see a lot of our customers in a very short time.”
Jon Bazar, Innovak, Montréal: “Sunday was zoo in here.”
Dave Katt, Old Masters Paint, Iowa: “The fact that window treatments was missing as a category in the décor side of the show definitely affected the level of exposure my product got. Dealer attendance seems low, and that is probably because this category was missing.”
Luc Rivest, Sia Abrasifs, St-Nicholas, QC: “I filled most of my contact expectations, around 80% of them, on the first day of the show. After that I was able to make some unexpected contacts with people from the semi-industrial side of things, mostly in the drywall trade.”
An agent representing a number of vendors’ products: “It’s a great show. We’ve seen everybody we wanted to see. But you can’t sit in a chair all day.”
Harold Dawe, Stan Dawe Ltd., Corner Brook, NF: “There are no deals in this show, even though there is still room for deals … I don’t spend as much money here as I’d like to spend; but if I’m going to spend I want it to be because I am saving on it.”
Ib Fynbo, owner of Essex Home Hardware, Essex, ON: “The deals are there, but you have to sit down and negotiate with vendors.”
SOME PRODUCTS THAT CAUGHT OUR EYE AT CHS:
Carter Off-Road Machines, by Carter Brothers Mfg.: a really wacky looking off-road vehicle – reminiscent of the old dune buggies. With a Tecumseh engine and full independent hydraulic suspension.
Drylok masonry waterproofer, by United Gilsonite Laboratories: this basement sealer is now available in Canada; in both oil and latex bases.
Lorne Heise Heatline, invented by Lorne Heise of Pipe Heating Cable System, and distributed by Fred Pierce Sales and Marketing: this was the winner of the top prize for Innovative New Product and is a marvel of simplicity. An acrylic polymer separates two wires strung along the length of the pipe. At different intervals, the two wires are set to heat up if they make contact, which can only happen if the contents of the pipe are cold enough to freeze, and therefore shrink the polymer between them. Simple, cost effective, inventive.
Some cool proprietary hand tools from Allied International, courtesy of Innovak, plus a handy new multi-bit screwdriver from Fuller.
The carpenter’s pencil sharpener, by the Wilton Tool Group: it allows for the shape of the pencil while still gripping the tip and shaving the lead to a strong, sharp point. This little gadget sold itself through demonstration.
From ICI, a new CD-ROM that enables the shopper to go home and call up different rooms with different colour matches on the computer screen before committing to a gallon of paint.
SOME AWARD WINNING STORES AT CHS:
The Sylvan Lake True Value Hardware of Sylvan Lake, AB, received the Outstanding Retailer Award in the category: best hardware store under 5,000 sq. ft. A family-run operation, Sylvan Lake True Value won the award based on its outstanding performance in areas such as profitability, merchandising skill, community involvement, customer service and advertising.
Rona Le Regional in Granby, QC received the Outstanding Retailer Award for big-box retail store over 50,000 sq.ft., while the Newcastle, ON Rona Hardware was selected as Rookie of the Year by the Canadian Retail Hardware Association.
ACE MAKES SUPPLY DEAL WITH TIM-BR-MART
Ace Hardware Canada has made a deal with Tim-BR-Marts Ltd. to become a supplier for the group’s 184 member stores throughout Western Canada. The deal was struck after Barrie Sali, Tim-BR-Mart’s president and CEO, agreed to give his members access to the group’s products and programs. The company existing hardware suppliers include regionals and Sodisco-Howden Group.
“Ace has been endorsed by Barrie Sali. He’s opened the door for us,” says Paul Ingevaldson, vice-president, corporate strategy and international business for Ace Hardware Corp. in Oak Brook, Ill.
In signing with Ace, Tim-BR-Marts joins other buying groups that are looking not only to expand their hardware assortments, but to gain access to more store programs. Homecare, Castle and AWARD already have agreements in place. Negotiations continue with BMR in Québec, but it has its own distribution, “so we’re trying to figure out a fit,” says Ingevaldson. “We’re very positive about that.”
Ace currently ships to 101 stores in Canada that are either Ace stand-alone stores or sport the Ace name in association with another banner.
SUNBEAM CANADA UNAFFECTED
AS PARENT FILES FOR CHAPTER 11
The Sunbeam Corp. filed for bankruptcy protection last week after a three-year effort to recover from an accounting scandal and a series of acquisitions that left it US$2.6 billion in debt. Sunbeam stock sold for US$0.51 at the time of its suspension; it had traded for as much as US$6 per share in March 2000.
Sunbeam Canada remains unaffected by this turn of events, says Bruce MacDougall, who heads up the operation here. “Absolutely, it’s business as usual. Canada is not affected by the restructuring in the U.S.,” he says. “We have our own financing, so we’re not really even part of the chapter 11 in the U.S.” Product continues to be shipped and suppliers to be paid, he adds.
As part of the U.S. reorganization plan, banks that made a combined commitment to lend US$1.7 billion have agreed to provide another US$285 million to let Sunbeam stay in business through debtor-in-possession financing, which gives the lenders first claim on a company’s assets.
Sunbeam’s problems became apparent in 1998, when Albert (“Chainsaw Al”) Dunlap, a turnaround expert who was then the company’s chief executive, was discovered to have artificially bolstered sales by getting retailers to accept more goods than they could possibly sell. Sunbeam was also struggling with a load of debt, including the US$1.7 billion bank loan it had taken on earlier that year after making three acquisitions.
COMPANIES IN THE NEWS
Sears Canada released revenues for the four-week period ending January 27, 2001, posting a 9.9% increase to $482.8 million, from $439.4 million for the same period last year. Same-store sales were flat with last year. Adjusting for the same selling days, same store sales were up 3.7% compared with last year.
LBMX has joined forces with two more retail groups, Castle Building Centres and Homecare Building Centres, to develop electronic trading communities. The online initiatives will focus on more efficient exchange of invoices and order placements between dealers, vendors and head office. Currently, 60% of Castle’s members are able to place orders electronically. Last month, LBMX announced similar agreements with Sexton Group and TruServ Canada.
West Fraser Timber Co. has entered into an agreement to purchase Ainsworth Lumber’s sawmill located at Chasm, BC, which includes 695,000 m3 of annual timber harvesting rights, for a net purchase price of $22 million plus working capital. The company, which recently purchased two sawmills in the southern U.S., also reported earnings of $144 million for the year on sales of $2.31 billion (versus 1999 sales of $2.20 billion).
CGC Inc. will be the exclusive Canadian distributor of Trimroc Interior Mouldings, manufactured in Vaughan, ON by Canamould Extrusions Inc. They will be sold through the company’s existing customer base of retail and commercial dealers.
Emco’s Building Products division has entered an alliance with Atlas Roofing Corporation of Meridian, Miss., with the purpose of producing non-laminate overlay architectural shingles for sale by both parties. Emco is investing in the modification of a roofing machine at the Atlas manufacturing facility in Quakertown, Penn.
Camco announced a net income of $14.1 million for the twelve months ending Dec. 31, 2000 compared with $5.5 million for the same period in 1999. Sales were $697.2 million, compared with $638.3 million in 1999. Sales for the fourth quarter of $183.4 million were down slightly from 187.2 million in 1999. Net income for the fourth quarter was $4.4 million, compared with $1.2 million in 1999.
Home Depot Inc. will expand its major appliance offering in 2001 through partnerships with General Electric Co. and Maytag Corp. The company plans to sell GE-branded air conditioners and to increase the number of models on the sales floors. Other aspects of the push include the addition of specially trained sales staff and enhanced product displays. Home Depot currently sells GE and Maytag home appliances instore and through web-based kiosks in the stores.
Lowe’s Cos. cut its fourth quarter earnings projection for the second time after unexpected promotional pricing before Christmas hurt earnings by US$0.04 a share. The company now expects to earn US$0.37 a share on a same-store sales decline in the middle of the 2% to 4% range. Earnings had been projected at US$0.40 to US$0.42 in early December 2000. For the fourth quarter ended Jan. 28, 2000, Lowe’s earned US$148.9 million on sales of $3.8 billion.
Sherwin-Williams Co. announced a fourth-quarter earnings fall of 17.5% to US$46.2 million, compared with US$56 million in the 1999 fourth quarter. Consumer segment net sales fell 2.5% to US$231.1 million. The company anticipates sales for the year to rise 1% to 3%, with 1% to 6% increases in the paint store, automotive and international coatings segments, while consumer segment sales will fall anywhere from 4% to 6%. Sherwin-Williams is reorganizing its consumer segment into wood products, aerosol and consumer paint divisions in an effort to cut costs and increase focus on distinctive product categories.
CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 37.35 15.10 21.00
Canfor 19.80 8.10 9.30
Goodfellow 12.55 8.50 9.60
Home Depot 70.00 34.68 46.89
Hudsons Bay 21.65 12.50 17.21
Lowe’s 67.25 34.25 53.84
Sears Canada 42.50 20.00 23.70
Taiga Forest 14.20 6.80 7.70
West Fraser 39.50 25.80 27.66
“Knowledge advances by steps, and not by leaps.”
– Lord Macauley (1800-1859)
MARKET INDICATORS
Municipalities issued $37.7 billion worth of building permits in 2000 says Stats Canada, the second highest ever performance in both residential and non-residential sectors. The 5.4% gain from 1999’s total was the fifth straight annual increase in overall construction intentions. Housing intentions were up 3.3%, totalling $20.6 billion. High levels of employment and low, stable mortgage rates contributed to the strong performance in planned residential projects, with a 5.2% increase or $15.0 billion total in permits issued for single-family dwellings.
The value of non-residential permits was up 8.1% to $17.1 billion, with increases in industrial, commercial, and institutional components. This is the highest level reached in 11 years.
Provincially, the most significant growth in 2000 occurred in Ontario, up 9% to $7.5 billion, and Alberta, up 22.3% to $2.5 billion. Strong demand for manufacturing plants, as well as a 33.4% increase in institutional intentions, played a key role in Ontario’s growth.
PEOPLE ON THE MOVE
Penny Mauro has been promoted to director of marketing at Weiser Lock. She was formerly director of sales national accounts and has had over seven years of experience in the company. (604-419-4383)
OVERHEARD …
… “As an alternative to other distributors, we can provide other services; and with our North American volumes, we can provide pricing that keeps us extremely competitive.”
– Paul Ingevaldson, vice-president, corporate strategy and international business for U.S.-based Ace Hardware Corp., on signing a supply agreement with Tim-BR-Marts Ltd.
* * * * *HARDLINES MARKETPLACE* * * *
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 fax your resume to Human Resources, (519) 836 9352, or mail to 505 Southgate Drive, P.O. Box 848, Guelph, Ontario, N1H 6M7
We thank all applicants in advance and advice that only candidates selected for an interview will be contacted.
DURING THIS YEAR’S CHS … VISIT BOOTH # 3945
to view K & D Products’ new STURDY-STEP product line. New to Canada, the STURDY-STEP is ideal for any number of business, professional or Do-It-Yourself applications. With a 22″ work platform that holds up to 350 lb. and a top step that is 15½“ high, the STURDY-STEP is the ideal companion for the hard to reach areas.
WANT THE BIG PICTURE? THEN GET OVER
TO the Cologne International Hardware Fair/DIY’TEC:Contact Trade Show Travel by phone (877-873-7469) or fax (403-247-2448) or to arrange your trip. BOOK EARLY! Packages include return airfare and accommodations, as well as admission to the Exhibition. And don’t forget the Canada Night Reception sponsored by Hardlines and Cologne International Trade Shows! We’ll see you in Cologne.Over 3,800 suppliers from 57 countries are expected in three trade fair theme areas: The World Tools Centre, Security Systems Locks and Fittings, and DIY’TEC. The Hardware sector will occupy the entire exhibition space at KolnMesse – that is over 3 million sq.ft. of hardware and building supplies!
THE HARDLINES MARKETPLACE: just $16 per line.
Contact Eugenia at 416.489.3396 or email: buzz@hardlinesfax.com
HARDLINES WHO’S WHO 2000-2001 EDITION: The only annual guide to Canada’s leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. The Who’s Who lists more than 100 companies, with executives, product categories, sales, number of outlets, buyers, etc. The cost is only $125 for subscribers, or $165 for non-subscribers (+GST/HST).
“THE 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. Order by February 6, 2001, and SAVE $55 off our regular price! You can order both these incredible books online: https://www.securewebsite.net/~hardline/order.html or contact Nancy Wright at nancy@hardlinesfax.com; phone: 416-489-3396 for more information.
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 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 news service for the home improvement industry
February 12, 2001
Volume vii, #6
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlinesfax.com hardlines.ca
* * * * * *IN THIS ISSUE:
– Rumours take back seat to seminars, awards at Canadian Hardware Show
– Ace signs supply deal with Tim-BR-Marts
– Two more buying groups to develop online trading
– Sunbeam’s woes leave Canadian division unaffected
* * * * * *
RUMOURS TAKE BACK SEAT TO EDUCATION, SALES
AT CANADIAN HARDWARE AND BUILDING MATERIALS SHOW
The 96th edition of the Canadian Hardware and Building Materials Show finished on Tuesday to a mixed bag of responses. As always, the show was a forum for vendors to interact with both key buyers and independent retailers from across the country. While attendance numbers are not yet available, the overall impression was that there were slightly fewer bodies walking this year’s show than in years past.
Nonetheless, the majors were present, including customers from throughout North America. A contingent of 60 retailers even flew in from France for the show. This was also the second year to feature the involvement of the Lumber and Building Materials Association, which rolled its own Canadian Home Centre Show into CHS last year. For the first time this year, the paint and décor section of the show was beefed up thanks to the participation of that sector, which also gave up its own show to join forces with CHS. While many familiar decorating companies were present, a number of newcomers were also seen, adding to the diversity of the section.
There were also fewer rumours circulating. While last year’s show became the showcase for the unveiling of Sodisco-Howden’s new PRO initiative and Rona announced its acquisition of Cashway, this year was bereft of good gossip. (Except for the one about Revy being bought – eventually – by someone.)
In an effort to keep the show fresh and relevant, greater emphasis was placed on the speaker program, which included Steve Johns of the LBMAO outlining the importance of government lobbying, Ian Gray of LBMX on e-commerce as a competitive tool against big boxes and Carson O’Neill of Rincroft Inc., with tips for building the value of one’s own retail business.
(The show was kicked off by an incredible laser sound and light show at the Hardlines Breakfast on February 4. Our thanks to George Lucas for the special effects equipment.)
SOME FEEDBACK ON CHS:
Larry Koza, Can-Save, Barrie, ON: “We had 40 or 50 new products to show. We see a lot of our customers in a very short time.”
Jon Bazar, Innovak, Montréal: “Sunday was zoo in here.”
Dave Katt, Old Masters Paint, Iowa: “The fact that window treatments was missing as a category in the décor side of the show definitely affected the level of exposure my product got. Dealer attendance seems low, and that is probably because this category was missing.”
Luc Rivest, Sia Abrasifs, St-Nicholas, QC: “I filled most of my contact expectations, around 80% of them, on the first day of the show. After that I was able to make some unexpected contacts with people from the semi-industrial side of things, mostly in the drywall trade.”
An agent representing a number of vendors’ products: “It’s a great show. We’ve seen everybody we wanted to see. But you can’t sit in a chair all day.”
Harold Dawe, Stan Dawe Ltd., Corner Brook, NF: “There are no deals in this show, even though there is still room for deals … I don’t spend as much money here as I’d like to spend; but if I’m going to spend I want it to be because I am saving on it.”
Ib Fynbo, owner of Essex Home Hardware, Essex, ON: “The deals are there, but you have to sit down and negotiate with vendors.”
SOME PRODUCTS THAT CAUGHT OUR EYE AT CHS:
Carter Off-Road Machines, by Carter Brothers Mfg.: a really wacky looking off-road vehicle – reminiscent of the old dune buggies. With a Tecumseh engine and full independent hydraulic suspension.
Drylok masonry waterproofer, by United Gilsonite Laboratories: this basement sealer is now available in Canada; in both oil and latex bases.
Lorne Heise Heatline, invented by Lorne Heise of Pipe Heating Cable System, and distributed by Fred Pierce Sales and Marketing: this was the winner of the top prize for Innovative New Product and is a marvel of simplicity. An acrylic polymer separates two wires strung along the length of the pipe. At different intervals, the two wires are set to heat up if they make contact, which can only happen if the contents of the pipe are cold enough to freeze, and therefore shrink the polymer between them. Simple, cost effective, inventive.
Some cool proprietary hand tools from Allied International, courtesy of Innovak, plus a handy new multi-bit screwdriver from Fuller.
The carpenter’s pencil sharpener, by the Wilton Tool Group: it allows for the shape of the pencil while still gripping the tip and shaving the lead to a strong, sharp point. This little gadget sold itself through demonstration.
From ICI, a new CD-ROM that enables the shopper to go home and call up different rooms with different colour matches on the computer screen before committing to a gallon of paint.
SOME AWARD WINNING STORES AT CHS:
The Sylvan Lake True Value Hardware of Sylvan Lake, AB, received the Outstanding Retailer Award in the category: best hardware store under 5,000 sq. ft. A family-run operation, Sylvan Lake True Value won the award based on its outstanding performance in areas such as profitability, merchandising skill, community involvement, customer service and advertising.
Rona Le Regional in Granby, QC received the Outstanding Retailer Award for big-box retail store over 50,000 sq.ft., while the Newcastle, ON Rona Hardware was selected as Rookie of the Year by the Canadian Retail Hardware Association.
ACE MAKES SUPPLY DEAL WITH TIM-BR-MART
Ace Hardware Canada has made a deal with Tim-BR-Marts Ltd. to become a supplier for the group’s 184 member stores throughout Western Canada. The deal was struck after Barrie Sali, Tim-BR-Mart’s president and CEO, agreed to give his members access to the group’s products and programs. The company existing hardware suppliers include regionals and Sodisco-Howden Group.
“Ace has been endorsed by Barrie Sali. He’s opened the door for us,” says Paul Ingevaldson, vice-president, corporate strategy and international business for Ace Hardware Corp. in Oak Brook, Ill.
In signing with Ace, Tim-BR-Marts joins other buying groups that are looking not only to expand their hardware assortments, but to gain access to more store programs. Homecare, Castle and AWARD already have agreements in place. Negotiations continue with BMR in Québec, but it has its own distribution, “so we’re trying to figure out a fit,” says Ingevaldson. “We’re very positive about that.”
Ace currently ships to 101 stores in Canada that are either Ace stand-alone stores or sport the Ace name in association with another banner.
SUNBEAM CANADA UNAFFECTED
AS PARENT FILES FOR CHAPTER 11
The Sunbeam Corp. filed for bankruptcy protection last week after a three-year effort to recover from an accounting scandal and a series of acquisitions that left it US$2.6 billion in debt. Sunbeam stock sold for US$0.51 at the time of its suspension; it had traded for as much as US$6 per share in March 2000.
Sunbeam Canada remains unaffected by this turn of events, says Bruce MacDougall, who heads up the operation here. “Absolutely, it’s business as usual. Canada is not affected by the restructuring in the U.S.,” he says. “We have our own financing, so we’re not really even part of the chapter 11 in the U.S.” Product continues to be shipped and suppliers to be paid, he adds.
As part of the U.S. reorganization plan, banks that made a combined commitment to lend US$1.7 billion have agreed to provide another US$285 million to let Sunbeam stay in business through debtor-in-possession financing, which gives the lenders first claim on a company’s assets.
Sunbeam’s problems became apparent in 1998, when Albert (“Chainsaw Al”) Dunlap, a turnaround expert who was then the company’s chief executive, was discovered to have artificially bolstered sales by getting retailers to accept more goods than they could possibly sell. Sunbeam was also struggling with a load of debt, including the US$1.7 billion bank loan it had taken on earlier that year after making three acquisitions.
COMPANIES IN THE NEWS
Sears Canada released revenues for the four-week period ending January 27, 2001, posting a 9.9% increase to $482.8 million, from $439.4 million for the same period last year. Same-store sales were flat with last year. Adjusting for the same selling days, same store sales were up 3.7% compared with last year.
LBMX has joined forces with two more retail groups, Castle Building Centres and Homecare Building Centres, to develop electronic trading communities. The online initiatives will focus on more efficient exchange of invoices and order placements between dealers, vendors and head office. Currently, 60% of Castle’s members are able to place orders electronically. Last month, LBMX announced similar agreements with Sexton Group and TruServ Canada.
West Fraser Timber Co. has entered into an agreement to purchase Ainsworth Lumber’s sawmill located at Chasm, BC, which includes 695,000 m3 of annual timber harvesting rights, for a net purchase price of $22 million plus working capital. The company, which recently purchased two sawmills in the southern U.S., also reported earnings of $144 million for the year on sales of $2.31 billion (versus 1999 sales of $2.20 billion).
CGC Inc. will be the exclusive Canadian distributor of Trimroc Interior Mouldings, manufactured in Vaughan, ON by Canamould Extrusions Inc. They will be sold through the company’s existing customer base of retail and commercial dealers.
Emco’s Building Products division has entered an alliance with Atlas Roofing Corporation of Meridian, Miss., with the purpose of producing non-laminate overlay architectural shingles for sale by both parties. Emco is investing in the modification of a roofing machine at the Atlas manufacturing facility in Quakertown, Penn.
Camco announced a net income of $14.1 million for the twelve months ending Dec. 31, 2000 compared with $5.5 million for the same period in 1999. Sales were $697.2 million, compared with $638.3 million in 1999. Sales for the fourth quarter of $183.4 million were down slightly from 187.2 million in 1999. Net income for the fourth quarter was $4.4 million, compared with $1.2 million in 1999.
Home Depot Inc. will expand its major appliance offering in 2001 through partnerships with General Electric Co. and Maytag Corp. The company plans to sell GE-branded air conditioners and to increase the number of models on the sales floors. Other aspects of the push include the addition of specially trained sales staff and enhanced product displays. Home Depot currently sells GE and Maytag home appliances instore and through web-based kiosks in the stores.
Lowe’s Cos. cut its fourth quarter earnings projection for the second time after unexpected promotional pricing before Christmas hurt earnings by US$0.04 a share. The company now expects to earn US$0.37 a share on a same-store sales decline in the middle of the 2% to 4% range. Earnings had been projected at US$0.40 to US$0.42 in early December 2000. For the fourth quarter ended Jan. 28, 2000, Lowe’s earned US$148.9 million on sales of $3.8 billion.
Sherwin-Williams Co. announced a fourth-quarter earnings fall of 17.5% to US$46.2 million, compared with US$56 million in the 1999 fourth quarter. Consumer segment net sales fell 2.5% to US$231.1 million. The company anticipates sales for the year to rise 1% to 3%, with 1% to 6% increases in the paint store, automotive and international coatings segments, while consumer segment sales will fall anywhere from 4% to 6%. Sherwin-Williams is reorganizing its consumer segment into wood products, aerosol and consumer paint divisions in an effort to cut costs and increase focus on distinctive product categories.
CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 37.35 15.10 21.00
Canfor 19.80 8.10 9.30
Goodfellow 12.55 8.50 9.60
Home Depot 70.00 34.68 46.89
Hudsons Bay 21.65 12.50 17.21
Lowe’s 67.25 34.25 53.84
Sears Canada 42.50 20.00 23.70
Taiga Forest 14.20 6.80 7.70
West Fraser 39.50 25.80 27.66
“Knowledge advances by steps, and not by leaps.”
– Lord Macauley (1800-1859)
MARKET INDICATORS
Municipalities issued $37.7 billion worth of building permits in 2000 says Stats Canada, the second highest ever performance in both residential and non-residential sectors. The 5.4% gain from 1999’s total was the fifth straight annual increase in overall construction intentions. Housing intentions were up 3.3%, totalling $20.6 billion. High levels of employment and low, stable mortgage rates contributed to the strong performance in planned residential projects, with a 5.2% increase or $15.0 billion total in permits issued for single-family dwellings.
The value of non-residential permits was up 8.1% to $17.1 billion, with increases in industrial, commercial, and institutional components. This is the highest level reached in 11 years.
Provincially, the most significant growth in 2000 occurred in Ontario, up 9% to $7.5 billion, and Alberta, up 22.3% to $2.5 billion. Strong demand for manufacturing plants, as well as a 33.4% increase in institutional intentions, played a key role in Ontario’s growth.
PEOPLE ON THE MOVE
Penny Mauro has been promoted to director of marketing at Weiser Lock. She was formerly director of sales national accounts and has had over seven years of experience in the company. (604-419-4383)
OVERHEARD …
… “As an alternative to other distributors, we can provide other services; and with our North American volumes, we can provide pricing that keeps us extremely competitive.”
– Paul Ingevaldson, vice-president, corporate strategy and international business for U.S.-based Ace Hardware Corp., on signing a supply agreement with Tim-BR-Marts Ltd.
* * * * *HARDLINES MARKETPLACE* * * *
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 fax your resume to Human Resources, (519) 836 9352, or mail to 505 Southgate Drive, P.O. Box 848, Guelph, Ontario, N1H 6M7
We thank all applicants in advance and advice that only candidates selected for an interview will be contacted.
DURING THIS YEAR’S CHS … VISIT BOOTH # 3945
to view K & D Products’ new STURDY-STEP product line. New to Canada, the STURDY-STEP is ideal for any number of business, professional or Do-It-Yourself applications. With a 22″ work platform that holds up to 350 lb. and a top step that is 15½“ high, the STURDY-STEP is the ideal companion for the hard to reach areas.
WANT THE BIG PICTURE? THEN GET OVER
TO the Cologne International Hardware Fair/DIY’TEC:Contact Trade Show Travel by phone (877-873-7469) or fax (403-247-2448) or to arrange your trip. BOOK EARLY! Packages include return airfare and accommodations, as well as admission to the Exhibition. And don’t forget the Canada Night Reception sponsored by Hardlines and Cologne International Trade Shows! We’ll see you in Cologne.Over 3,800 suppliers from 57 countries are expected in three trade fair theme areas: The World Tools Centre, Security Systems Locks and Fittings, and DIY’TEC. The Hardware sector will occupy the entire exhibition space at KolnMesse – that is over 3 million sq.ft. of hardware and building supplies!
THE HARDLINES MARKETPLACE: just $16 per line.
Contact Eugenia at 416.489.3396 or email: buzz@hardlinesfax.com
HARDLINES WHO’S WHO 2000-2001 EDITION: The only annual guide to Canada’s leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. The Who’s Who lists more than 100 companies, with executives, product categories, sales, number of outlets, buyers, etc. The cost is only $125 for subscribers, or $165 for non-subscribers (+GST/HST).
“THE 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. Order by February 6, 2001, and SAVE $55 off our regular price! You can order both these incredible books online: https://www.securewebsite.net/~hardline/order.html or contact Nancy Wright at nancy@hardlinesfax.com; phone: 416-489-3396 for more information.
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 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™
Five years serving Canada’s home improvement industry
January 22, 2001 – Volume vii, #3 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
PLEASE JOIN HARDLINES AT ITS SIXTH ANNUAL SHOW BREAKFAST to kick off the Canadian Hardware & Building Materials Show.
Don’t miss this key industry event on Sunday, February 4, 2001, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds, where we will present the 2000 Newsmaker of the Year Award. We’re ecstatic over how popular this event has become, but the result is that space gets really limited. Please book early to avoid disappointment! RSVP Nancy at 416-489-3396, send a fax to 416-489-6154; or email: hardline2@on.aibn.com
We welcome NATIONAL RETAIL CREDIT SERVICES (NRCS for short) as our newest sponsor. These folks do private label credit cards and let me tell you, they really have their act together! They’re in good company – our other sponsors are:
* THE CANADIAN HARDWARE AND BUILDING MATERIALS SHOW
* HARDWARE MERCHANDISING/CANADIAN CONTRACTOR
* NEWELL RUBBERMAID
* NORAL INSTORE
* STERLING COMMERCE
* WRIGHT’S SEND-A-BASKET
* WOLF GUGLER & ASSOCIATES
* * * * * *
HARDLINES CLASSIFIEDS AT CHS: Put your classified ad in our February 5th, 2001 issue of Hardlines, and take advantage of our INCREASED CHS CIRCULATION. That’s thousands of industry eyeballs! Plus, you get all the regular benefits of The Hardlines Marketplace: your ad is read by over 3,000 people for two weeks in the fax version, three weeks in the email version and on our website. All that for just $16 per line. Deadline for all classified ads for CHS issue is January 30, 2001. Please contact Eugenia at 416-489-3396 or email: buzz@hardlinesfax.com
SODISCO-HOWDEN GROUP FOCUSES ITS BUYING PRACTICES
The addition of a new vice-president to the executive ranks at Sodisco-Howden Group is just part of a refocusing of the company to bring its two divisions closer together. Rona veteran Robert Harritt joined as executive vice-president and CFO at the beginning of this year, while Pierre Racette, vice-president of marketing, also became president of SHG’s buying group, Spancan.
Under the reorganization, says Racette, category managers, both in the Howden division in London, ON and Sodisco in Victoriaville, QC, will work closer together to create national programs. The need is driven, in part, he says, by the company’s electronic catalogue initiative.
“Despite having two buying offices, it’s sales under one person, marketing under one person,” says Racette. The two buying offices have historically been a perplexing challenge for vendors, who were often unclear where the senior purchasing decision resided. Racette insists the geographic distinction no longer matters. “It’s irrelevant because they’re working on the same team, working for the same boss – and they’re on the same agenda.”
The newest addition to the company’s distribution network, the Smith-Barregar division in Langley, BC, was fully integrated into SHG’s distribution network by the end of 2000. As the company’s western facility, it serves dealers in British Columbia, Alberta and Saskatchewan.
* * * * * *
TRUSERV TRIMS SOME PROGRAMS, STAFF
The departure of one key merchandiser, along with five support staff at TruServ Canada (see “People on the move”), are part of a realignment of some of the co-op wholesaler’s programs. The most prominent is the Crafts ‘N More banner, which TruServ will no longer recruit dealers for.
The banner currently has 27 members. “We’ll continue serving those stores and try and change them to our [V&S] Variety format where appropriate,” says Leo Charriere, COO of TruServ Canada.
In addition, the Just Ask rental program will still be available, but will now be managed and marketed by Wilf Gerhardt, TruServ’s sales development manager.
On the other hand, the Pet Junction program is gaining momentum, with 37 independent pet dealers already signed up. TruServ is also supplying another 60 unaffiliated stores. Charriere says the company expects sales of pet products and supplies to double this year alone. Even True Value and V&S stores with pet supply departments have enjoyed huge growth by adopting parts of the Pet Junction program, he adds.
COMPANIES IN THE NEWS
Lansing Buildall in Toronto ended 2000 with contractor appreciation breakfasts at all eight of its locations. They were held on various dates throughout December. Typical of the events was the one at the Scarborough store, which hosted upwards of 600 contractors and tradespeople, including roofers, framers, plumbers and electricians. They came for eggs and sausages, vendor demos and a chance to be photographed with one of the three Toronto Argonaut cheerleaders on hand.
Costco Wholesale Corp. has announced its intention to merge its two Canadian offices. The estimated consolidation costs of US$15.6 million will be spread over the next four quarters, beginning with the second quarter ending Feb. 18. The two offices have so far operated separately: the Western Canada region based in Burnaby, BC and the eastern Canada region in Laval, QC. Costco expects to complete the consolidation by its fiscal year ending Sept. 2 and recoup the cost of the move within a year.
Home Depot in Atlanta expects fourth-quarter earnings to be down 20% from the same period last year, due to a slowing economy and falling prices for building materials. Sales were previously expected to grow by 4% but are now anticipated to be flat. The soft performance is expected to continue right through the first half of 2001. Home Depot shares closed last week at US$41, down from $44*.
Sales for Sears Canada for the fourth quarter ended December 30, 2000 were $2.109 billion, up 10.4% from $1.910 billion last year. Sales for the year were $6.356 billion, up 10.0%. For the full year, Sears posted net earnings of $225.8 million, compared with $199.6 million in 1999.
Ainsworth Lumber Co. Ltd. did not make the interest payment of approximately $17,000,000 due January 15, 2001 on its 12*% Senior Secured Notes. This does not constitute an event of default under the notes until such non-payment continues for more than 30 days. Ainsworth expects to make such payment from its operating cash flows prior to February 13, 2001. Ainsworth continues to pursue financing for its Footner OSB Project and, in addition, has initiated negotiations with third parties concerning asset dispositions with a view to reducing Ainsworth’s ongoing cash requirements, including those for Footner.
LBMX, an e-commerce solutions provider to the hardware and building materials industry, has been contracted to develop e-marketplaces for two Western Canada-based retail organizations. For Sexton Group, LBMX will develop a Sexton branded e-marketplace whereby dealers can order products from vendors using electronic invoicing. TruServ Canada will use LBMX to move warehouse and, eventually, dealer-direct purchases, to LBMX’s web-based EDI.
Scotty’s has announced its affiliation with the Do it Best Corp. in the U.S. The Florida-based chain of 115 stores will expand the number of products available from 17,500 to 68,000 SKUs. The conversion is expected to take approximately four months.
Plastmo Ltd. has appointed Can-Save as its new Ontario distributor for vinyl gutter lines, including Half Round and Ksnap.
Lowe’s Cos. Inc. will begin construction this year of its sixth regional distribution centre. The 900,000-sq.ft. facility, in Cheyenne, Wyoming, will cost US$60 million and employ 425-plus people. When completed in about two years, it will supply 25,000 SKUs to 70 stores in the Central and Western U.S.
Online gardening products retailer Garden.com Inc. sold its content assets to Walmart.com and its brand assets to Burpee Holding Co., the parent company of W. Atlee Burpee & Co.
“You can do very little with faith. But you can do nothing without it.” – John Sutro (British writer)
PEOPLE ON THE MOVE
Gary Hamilton, formerly group merchandise manager for softlines, pet and housewares, has left TruServ Canada. No replacement has been named … Wally Stefaniuk, formerly national sales manager specializing in TruServ’s paint lines, has also exited the company. (204-453-9511)
After 10 years at Wal-Mart Stores Inc., most recently as vice-president of merchandising, John P. Owen has moved over to Kmart Corp. as head of merchandising for all products other than home and apparel lines. He will be responsible for toys, electronics, appliances, car care products, sporting goods and photo services. He replaces Jerry Kuske, who left Kmart last week.
OVERHEARD …
“I think an ongoing challenge for trade shows is that organizers are always torn between constituents – the attendees, exhibitors, etc – who want a longer show and those who want a shorter one. For some, the time at a show is just not long enough to walk around to all areas. For others, things seem to slow down after a certain number of days.
“Our show went from four to three days about 11 years ago. It was a decision made by acting proactively on feedback from our constituents, and by trying to accomplish what was felt were important goals for the show. The U.S. show just appears to be responding to its constituents with this move.” – Bob Elliot, executive director of the Canadian Retail Hardware Association, commenting on the news that the National Hardware Show in Chicago will be shortened from four days to three, effective this August.
* * * * * *
NOTED …
Fediyma, the Federation of European DIY Manufacturers’ Associations, has announced its first European DIY forum, to take place in Brussels September 28-29, 2001. The forum, themed “Today’s Three Challenges for the Success in DIY,” will include presentations by international retailers and ample opportunity to meet with attending delegates.
MARKET INDICATORS
The price of new homes continues to increase at a strong rate, according to Statistics Canada. The new housing price index, an index of contractors’ selling prices, increased 2.5% in November 2000, compared with November 1999. This was the highest annual increase since May 1990, when the index rose 3.8%. For the fifth consecutive month, Ottawa-Hull registered the largest monthly rise (+2.0%) from October 2000. On an annual basis, new home prices in Ottawa-Hull rose 11.8%. Kitchener-Waterloo, Montréal, St. John’s and London also posted notable increases on an annual basis. Victoria registered the largest annual decrease (-1.8%)
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
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. Let us handle your internal routing from this end!
HARDLINES™
Five years serving Canada’s home improvement industry
January 22, 2001 – Volume vii, #3 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
PLEASE JOIN HARDLINES AT ITS SIXTH ANNUAL SHOW BREAKFAST to kick off the Canadian Hardware & Building Materials Show.
Don’t miss this key industry event on Sunday, February 4, 2001, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds, where we will present the 2000 Newsmaker of the Year Award. We’re ecstatic over how popular this event has become, but the result is that space gets really limited. Please book early to avoid disappointment! RSVP Nancy at 416-489-3396, send a fax to 416-489-6154; or email: hardline2@on.aibn.com
We welcome NATIONAL RETAIL CREDIT SERVICES (NRCS for short) as our newest sponsor. These folks do private label credit cards and let me tell you, they really have their act together! They’re in good company – our other sponsors are:
* THE CANADIAN HARDWARE AND BUILDING MATERIALS SHOW
* HARDWARE MERCHANDISING/CANADIAN CONTRACTOR
* NEWELL RUBBERMAID
* NORAL INSTORE
* STERLING COMMERCE
* WRIGHT’S SEND-A-BASKET
* WOLF GUGLER & ASSOCIATES
* * * * * *
HARDLINES CLASSIFIEDS AT CHS: Put your classified ad in our February 5th, 2001 issue of Hardlines, and take advantage of our INCREASED CHS CIRCULATION. That’s thousands of industry eyeballs! Plus, you get all the regular benefits of The Hardlines Marketplace: your ad is read by over 3,000 people for two weeks in the fax version, three weeks in the email version and on our website. All that for just $16 per line. Deadline for all classified ads for CHS issue is January 30, 2001. Please contact Eugenia at 416-489-3396 or email: buzz@hardlinesfax.com
SODISCO-HOWDEN GROUP FOCUSES ITS BUYING PRACTICES
The addition of a new vice-president to the executive ranks at Sodisco-Howden Group is just part of a refocusing of the company to bring its two divisions closer together. Rona veteran Robert Harritt joined as executive vice-president and CFO at the beginning of this year, while Pierre Racette, vice-president of marketing, also became president of SHG’s buying group, Spancan.
Under the reorganization, says Racette, category managers, both in the Howden division in London, ON and Sodisco in Victoriaville, QC, will work closer together to create national programs. The need is driven, in part, he says, by the company’s electronic catalogue initiative.
“Despite having two buying offices, it’s sales under one person, marketing under one person,” says Racette. The two buying offices have historically been a perplexing challenge for vendors, who were often unclear where the senior purchasing decision resided. Racette insists the geographic distinction no longer matters. “It’s irrelevant because they’re working on the same team, working for the same boss – and they’re on the same agenda.”
The newest addition to the company’s distribution network, the Smith-Barregar division in Langley, BC, was fully integrated into SHG’s distribution network by the end of 2000. As the company’s western facility, it serves dealers in British Columbia, Alberta and Saskatchewan.
* * * * * *
TRUSERV TRIMS SOME PROGRAMS, STAFF
The departure of one key merchandiser, along with five support staff at TruServ Canada (see “People on the move”), are part of a realignment of some of the co-op wholesaler’s programs. The most prominent is the Crafts ‘N More banner, which TruServ will no longer recruit dealers for.
The banner currently has 27 members. “We’ll continue serving those stores and try and change them to our [V&S] Variety format where appropriate,” says Leo Charriere, COO of TruServ Canada.
In addition, the Just Ask rental program will still be available, but will now be managed and marketed by Wilf Gerhardt, TruServ’s sales development manager.
On the other hand, the Pet Junction program is gaining momentum, with 37 independent pet dealers already signed up. TruServ is also supplying another 60 unaffiliated stores. Charriere says the company expects sales of pet products and supplies to double this year alone. Even True Value and V&S stores with pet supply departments have enjoyed huge growth by adopting parts of the Pet Junction program, he adds.
COMPANIES IN THE NEWS
Lansing Buildall in Toronto ended 2000 with contractor appreciation breakfasts at all eight of its locations. They were held on various dates throughout December. Typical of the events was the one at the Scarborough store, which hosted upwards of 600 contractors and tradespeople, including roofers, framers, plumbers and electricians. They came for eggs and sausages, vendor demos and a chance to be photographed with one of the three Toronto Argonaut cheerleaders on hand.
Costco Wholesale Corp. has announced its intention to merge its two Canadian offices. The estimated consolidation costs of US$15.6 million will be spread over the next four quarters, beginning with the second quarter ending Feb. 18. The two offices have so far operated separately: the Western Canada region based in Burnaby, BC and the eastern Canada region in Laval, QC. Costco expects to complete the consolidation by its fiscal year ending Sept. 2 and recoup the cost of the move within a year.
Home Depot in Atlanta expects fourth-quarter earnings to be down 20% from the same period last year, due to a slowing economy and falling prices for building materials. Sales were previously expected to grow by 4% but are now anticipated to be flat. The soft performance is expected to continue right through the first half of 2001. Home Depot shares closed last week at US$41, down from $44*.
Sales for Sears Canada for the fourth quarter ended December 30, 2000 were $2.109 billion, up 10.4% from $1.910 billion last year. Sales for the year were $6.356 billion, up 10.0%. For the full year, Sears posted net earnings of $225.8 million, compared with $199.6 million in 1999.
Ainsworth Lumber Co. Ltd. did not make the interest payment of approximately $17,000,000 due January 15, 2001 on its 12*% Senior Secured Notes. This does not constitute an event of default under the notes until such non-payment continues for more than 30 days. Ainsworth expects to make such payment from its operating cash flows prior to February 13, 2001. Ainsworth continues to pursue financing for its Footner OSB Project and, in addition, has initiated negotiations with third parties concerning asset dispositions with a view to reducing Ainsworth’s ongoing cash requirements, including those for Footner.
LBMX, an e-commerce solutions provider to the hardware and building materials industry, has been contracted to develop e-marketplaces for two Western Canada-based retail organizations. For Sexton Group, LBMX will develop a Sexton branded e-marketplace whereby dealers can order products from vendors using electronic invoicing. TruServ Canada will use LBMX to move warehouse and, eventually, dealer-direct purchases, to LBMX’s web-based EDI.
Scotty’s has announced its affiliation with the Do it Best Corp. in the U.S. The Florida-based chain of 115 stores will expand the number of products available from 17,500 to 68,000 SKUs. The conversion is expected to take approximately four months.
Plastmo Ltd. has appointed Can-Save as its new Ontario distributor for vinyl gutter lines, including Half Round and Ksnap.
Lowe’s Cos. Inc. will begin construction this year of its sixth regional distribution centre. The 900,000-sq.ft. facility, in Cheyenne, Wyoming, will cost US$60 million and employ 425-plus people. When completed in about two years, it will supply 25,000 SKUs to 70 stores in the Central and Western U.S.
Online gardening products retailer Garden.com Inc. sold its content assets to Walmart.com and its brand assets to Burpee Holding Co., the parent company of W. Atlee Burpee & Co.
“You can do very little with faith. But you can do nothing without it.” – John Sutro (British writer)
PEOPLE ON THE MOVE
Gary Hamilton, formerly group merchandise manager for softlines, pet and housewares, has left TruServ Canada. No replacement has been named … Wally Stefaniuk, formerly national sales manager specializing in TruServ’s paint lines, has also exited the company. (204-453-9511)
After 10 years at Wal-Mart Stores Inc., most recently as vice-president of merchandising, John P. Owen has moved over to Kmart Corp. as head of merchandising for all products other than home and apparel lines. He will be responsible for toys, electronics, appliances, car care products, sporting goods and photo services. He replaces Jerry Kuske, who left Kmart last week.
OVERHEARD …
“I think an ongoing challenge for trade shows is that organizers are always torn between constituents – the attendees, exhibitors, etc – who want a longer show and those who want a shorter one. For some, the time at a show is just not long enough to walk around to all areas. For others, things seem to slow down after a certain number of days.
“Our show went from four to three days about 11 years ago. It was a decision made by acting proactively on feedback from our constituents, and by trying to accomplish what was felt were important goals for the show. The U.S. show just appears to be responding to its constituents with this move.” – Bob Elliot, executive director of the Canadian Retail Hardware Association, commenting on the news that the National Hardware Show in Chicago will be shortened from four days to three, effective this August.
* * * * * *
NOTED …
Fediyma, the Federation of European DIY Manufacturers’ Associations, has announced its first European DIY forum, to take place in Brussels September 28-29, 2001. The forum, themed “Today’s Three Challenges for the Success in DIY,” will include presentations by international retailers and ample opportunity to meet with attending delegates.
MARKET INDICATORS
The price of new homes continues to increase at a strong rate, according to Statistics Canada. The new housing price index, an index of contractors’ selling prices, increased 2.5% in November 2000, compared with November 1999. This was the highest annual increase since May 1990, when the index rose 3.8%. For the fifth consecutive month, Ottawa-Hull registered the largest monthly rise (+2.0%) from October 2000. On an annual basis, new home prices in Ottawa-Hull rose 11.8%. Kitchener-Waterloo, Montréal, St. John’s and London also posted notable increases on an annual basis. Victoria registered the largest annual decrease (-1.8%)
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
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. Let us handle your internal routing from this end!
HARDLINES™
Five years serving Canada’s home improvement industry
January 15, 2001 – Volume vii, #2 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
PLEASE JOIN HARDLINES AT ITS SIXTH ANNUAL SHOW BREAKFAST to kick off the Canadian Hardware & Building Materials Show.
Don’t miss this key industry event on Sunday, February 4, 2001, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds, where we will present the 2000 Newsmaker of the Year Award. We’re ecstatic over how popular this event has become, but the result is that space gets really limited. Please book early to avoid disappointment! RSVP Nancy at 416-489-3396, send a fax to 416-489-6154; or email: hardline2@on.aibn.com
* * * * * *
HARDLINES CLASSIFIEDS AT CHS: Put your classified ad in our February 5th, 2001 issue of Hardlines, and take advantage of our INCREASED CHS CIRCULATION. That’s thousands of industry eyeballs! Plus, you get all the regular benefits of The Hardlines Marketplace: your ad is read by over 3,000 people for two weeks in the fax version, three weeks in the email version and on our website. All that for just $16 per line. Deadline for all classified ads for CHS issue is January 30, 2001. Please contact Eugenia at 416-489-3396 or email: buzz@hardlinesfax.com
CHRISTMAS BRINGS MIXED RESULTS FOR RETAILERS
A national survey of retailers conducted January 4-9, 2001, by the Retail Council of Canada showed that only 44% of retailers had sales above last year’s record; of that, the average rise was 9.7%. Another 18% said their sales were similar to 1999. A third said sales were down by an average of 10%. Larger retailers and online merchants who responded to the survey reported somewhat higher returns for the holiday season than independent retailers.
Consumer electronics was the big winner in 2000, followed by sporting goods. Big ticket items such as appliances and automobiles lagged. Demand for electronic goods, particularly wireless gadgets and DVDs, gave Future Shop an impressive 22% sales increase while its same-store sales grew 17% in December alone.
Online sales ramped up during the year as more retailers did business on the Internet or unveiled new websites, including Hudson’s Bay Co. and Canadian Tire Corp.
“The results of this year’s survey are in line with our expectations,” says Diane Brisebois, president and CEO of RCC. “We knew it would be a challenge for retailers to match 1999’s exceptional sales performance. Retail sales growth began to plateau in mid-2000, and some retailers reported a slow start to their holiday season. However, the final week before Christmas was particularly strong, and that pushed many retailers’ sales for the season over the top.”
Sales by Canadian retailers from the 2000 Christmas shopping season are expected to indicate slower consumer spending. Total sales were estimated to come above 1999’s record $260.4 billion, although analysts say growth slipped to disappointing levels in 2000. In November, industry watchers had predicted a sales increase of about 3% for the year, down from about 6% in 1999. But stock market volatility, signs of a slowing economy and cold weather discouraged shoppers: a lot of retailers didn’t have the traffic they were hoping for.
* * * * * *
RONA BIG BOX TESTS INSTORE FINANCING
The Fédération des caisses populaires Desjardins de Montréal et de l’Ouest-du-Québec and the Rona L’entrepôt in Brossard have launched Desjardins en magasin, an in-store financial services centre. With this alliance the two organizations hope to increase their accessibility and clientele contact.
“We are convinced of the usefulness of quickly making financial services available to our clientele, who will find – exclusively at Rona – the best potential for carrying out their projects and dreams,” says Rick Blickstead, Rona’s president and COO.
More financial services centres are planned for other Rona stores throughout the province.
COMPANIES IN THE NEWS
Home Depot Canada opened its third store in Québec last week, this one in Gatineau, making it the company’s first for the Outaouais region. The 115,000-sq.ft. store has 150 full- and part-time staff and includes tool rental, garden and design centres. (for more complete details of Home Depot’s Canadian expansion plans in 2001, inquire about our newest publication, Hardlines Quarterly Report, availableFebruary 4!)
Sears Canada has opened a Sears Furniture and Appliancesstore at Island Home Centre in Victoria, BC. The48,000-sq.ft. store, dedicated exclusively to furniture,rugs, accent-décor items and major home appliances, will bethe third Sears store of its kind in B.C. – and one of morethan 30 across Canada.
Rona inc. has announced its sponsorship of Québec City’s IceHotel. The sponsorship was in the form of tools andmaterials. Rona will promote this winter tourist destinationthrough various igloo construction events and activities atits participating big box stores. The Swedish style hotelincludes an ice bar, movie theatre and two art galleries.
Wal-Mart plans to open its first store in Japan in 2002reportedly considering Makuhari, which is a 20-minute trainride from Tokyo, and Nagoya, a major city between Osaka andTokyo. Wal-Mart, which is rapidly expanding internationally,plans to establish a Japanese subsidiary this summer tofacilitate future openings.
Kmart Corp. and its e-commerce unit, BlueLight.com, haveinstalled 3,500 Internet shopping kiosks in 1,100 stores.Shoppers will use the kiosks to access BlueLight.com andpurchase items that cannot be found in Kmart stores, oritems that are on sale but are out of stock. Kmart plans tohave kiosks in the all of its 2,100 stores by 2002.
Wolf Gugler & Associates Ltd. has opened its new U.S.offices in Oklahoma City as part of its effort to keep pacewith growing demand in the North American market. Thecompany offers a range of retainer-based executive searchservices specializing in retailers and their suppliers.
Sico Inc. has signed an agreement to purchase ChemcraftInternational Inc., a North Carolina-based wood and metalcoatings manufacturer. Sico will acquire Chemcraft’sindustrial metal coatings operations, as well as a plant inBrantford, ON, for US$11 million. At the same time, Sicowill sell its industrial wood coatings division to Chemcraftfor US$1.5 million.
Unican Security Systems Ltd. has agreed to a takeover byKaba Holding AG of Switzerland at a price of $36 per share.This deal is expected to close by the end of the firstquarter of 2001.
For the third quarter ending November 30, 2000, Maax Inc.had sales of $372.4 million, up 11.63% over thecorresponding period the previous year. Maax has achievedinternal sales growth of 7.3% over the past nine months.
DeWalt Industrial Tools and Accessories has purchased EmgloAir Compressor Co., a Johnstown, PA, manufacturer of aircompressors for the contractor and industrial markets. Emglowas previously owned by Stonewood Capital Management Inc., aPittsburgh-based private venture capital and managementbuyout firm that owned Emglo since 1996.
“Blessed is he who has found his work; let him ask no other blessedness.” – Thomas Carlyle (1795-1881)
PEOPLE ON THE MOVE
Joe Galli has been appointed president and CEO of Newell Rubbermaid. Galli will also serve as a member of the board of directors. He succeeds William P. Sovey, who will reassume his position as chairman of the board. Galli’s move into Newell Rubbermaid has caused a splash in the industry: he was most recently president and CEO of VerticalNet Inc. and, prior to that, COO at Amazon.com. Galli’s experience includes a 19-year career with Black & Decker, where he was responsible for relaunching the DeWalt brand. (815-235-4171)
Castle Building Centres announced the appointment of Brad West as commodity program manager, marketing department. West was formerly president of Bigfords Building Products in Brighton, ON … Ron Douglas’s title as Castle’s Atlantic Canada coordinator has been changed to business development manager – Atlantic Region, to better reflect Douglas’s area of responsibility. (905-564-3307)
Spancan Corp. has elected the following to its board of directors for 2001: Andrew Battagliotti, ILDC; Paul Bonhomme, Les Entreprises P.Bonhomme limitée; Robert Harritt, Sodisco-Howden Group; Larry Jarvis, Revy Home Centres; Tony Molluso, Sodisco-Howden Group; Pierre Racette, Sodisco-Howden Group … The board elected Pierre Racette as president, and ratified Mike Daniels as general manager. (905-428-0700)
NOTED…
… The Building Supply Dealers Association has announced its 3rd Annual Westcoast 2001 Trade Show and Convention, to be held at the Delta Pacific Resort & Conference Centre, Richmond, BC, on March 2nd and 3rd, 2001. This is an opportunity for dealers and suppliers to participate in special sales, speaker events, and the Orion Awards ceremony.
… The Women’s Consumer Products Network will celebrate its first anniversary April 4th with a guest-author lecture from Ann Coombs, a consumer trends specialist who focuses on how to do business in the 21st century and changing consumer needs. Coombs’s address will include excerpts from her new book, The Living Workplace.
… Weldbond will launch a space-themed nationwide marketing strategy to capitalize on its recent NASA certification. Blake Ross, vice-president sales, believes this connection with NASA will create a lot of excitement in retail: “This will be the biggest push we have ever put behind the brand.” Welbond is expanding with sales and marketing plans for the UK, Australia, New Zealand, and China.
MARKET INDICATORS
BUILDING PERMITS
The value of building permits surpassed the $3 billion mark for the sixth straight month in November. This was the first time since 1989 that such a gain occurred. Intentions in the housing sector rose 1.9% to $1.8 billion in November, on the heels of a 5.3% gain in October. On the other hand, the value of non-residential permits declined 1.1% to $1.4 billion.
Year to date, builders took out $34.5 billion worth of permits, up 7% from the equivalent period in 1999. The largest advances occurred in the census metropolitan areas of Ottawa, Calgary and Montréal regions, which contributed to more than half the growth for the country as a whole.
RETAIL TRADE
Retail sales declined 0.9% in October to $23.3 billion, leaving sales slightly below their July level. The October decline followed a 0.4% gain in September and unchanged sales in August. In constant dollars, retails sales fell 0.5% in October compared with September. The strong gains in retail sales in the May-to-July period were followed by weaker sales in recent months. In the first four months of 2000, retailers saw volatile sales after a year of strong increases in 1999. Retail sales for the first 10 months of 2000 were 6.3% higher than in the same period in 1999. This compares with a 5.4% increase for the first 10 months of 1999.
WHOLESALE TRADE
Wholesale sales rose 1.2% to $31.9 billion in October; all provinces except New Brunswick reported higher sales. This month’s increase was broadly based; seven of the 11 trade groups reported an upward swing in sales. Despite this month’s climb, wholesale sales have weakened in recent months, after having risen since mid-1998. The sectors to report the largest increases were: “other” (which includes agricultural chemicals, seeds and seed processing, and industrial and household chemicals) (+4.3%); food products (+3.4%); and apparel and dry goods (+3.3%).
The small rise in October in sales of lumber and building materials (+0.5) was far from sufficient to reverse this sector’s downward sales trend, which dates from late 1999. Prior to this, sales had been rising since mid-1998. October’s increase in sales could be attributed to housing starts being pushed back until later in the season as a result of strikes and bad weather during the spring and summer months.
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
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. Let us handle your internal routing from this end!
HARDLINES™
Five years serving Canada’s home improvement industry
January 15, 2001 – Volume vii, #2 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
PLEASE JOIN HARDLINES AT ITS SIXTH ANNUAL SHOW BREAKFAST to kick off the Canadian Hardware & Building Materials Show.
Don’t miss this key industry event on Sunday, February 4, 2001, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds, where we will present the 2000 Newsmaker of the Year Award. We’re ecstatic over how popular this event has become, but the result is that space gets really limited. Please book early to avoid disappointment! RSVP Nancy at 416-489-3396, send a fax to 416-489-6154; or email: hardline2@on.aibn.com
* * * * * *
HARDLINES CLASSIFIEDS AT CHS: Put your classified ad in our February 5th, 2001 issue of Hardlines, and take advantage of our INCREASED CHS CIRCULATION. That’s thousands of industry eyeballs! Plus, you get all the regular benefits of The Hardlines Marketplace: your ad is read by over 3,000 people for two weeks in the fax version, three weeks in the email version and on our website. All that for just $16 per line. Deadline for all classified ads for CHS issue is January 30, 2001. Please contact Eugenia at 416-489-3396 or email: buzz@hardlinesfax.com
CHRISTMAS BRINGS MIXED RESULTS FOR RETAILERS
A national survey of retailers conducted January 4-9, 2001, by the Retail Council of Canada showed that only 44% of retailers had sales above last year’s record; of that, the average rise was 9.7%. Another 18% said their sales were similar to 1999. A third said sales were down by an average of 10%. Larger retailers and online merchants who responded to the survey reported somewhat higher returns for the holiday season than independent retailers.
Consumer electronics was the big winner in 2000, followed by sporting goods. Big ticket items such as appliances and automobiles lagged. Demand for electronic goods, particularly wireless gadgets and DVDs, gave Future Shop an impressive 22% sales increase while its same-store sales grew 17% in December alone.
Online sales ramped up during the year as more retailers did business on the Internet or unveiled new websites, including Hudson’s Bay Co. and Canadian Tire Corp.
“The results of this year’s survey are in line with our expectations,” says Diane Brisebois, president and CEO of RCC. “We knew it would be a challenge for retailers to match 1999’s exceptional sales performance. Retail sales growth began to plateau in mid-2000, and some retailers reported a slow start to their holiday season. However, the final week before Christmas was particularly strong, and that pushed many retailers’ sales for the season over the top.”
Sales by Canadian retailers from the 2000 Christmas shopping season are expected to indicate slower consumer spending. Total sales were estimated to come above 1999’s record $260.4 billion, although analysts say growth slipped to disappointing levels in 2000. In November, industry watchers had predicted a sales increase of about 3% for the year, down from about 6% in 1999. But stock market volatility, signs of a slowing economy and cold weather discouraged shoppers: a lot of retailers didn’t have the traffic they were hoping for.
* * * * * *
RONA BIG BOX TESTS INSTORE FINANCING
The Fédération des caisses populaires Desjardins de Montréal et de l’Ouest-du-Québec and the Rona L’entrepôt in Brossard have launched Desjardins en magasin, an in-store financial services centre. With this alliance the two organizations hope to increase their accessibility and clientele contact.
“We are convinced of the usefulness of quickly making financial services available to our clientele, who will find – exclusively at Rona – the best potential for carrying out their projects and dreams,” says Rick Blickstead, Rona’s president and COO.
More financial services centres are planned for other Rona stores throughout the province.
COMPANIES IN THE NEWS
Home Depot Canada opened its third store in Québec last week, this one in Gatineau, making it the company’s first for the Outaouais region. The 115,000-sq.ft. store has 150 full- and part-time staff and includes tool rental, garden and design centres. (for more complete details of Home Depot’s Canadian expansion plans in 2001, inquire about our newest publication, Hardlines Quarterly Report, availableFebruary 4!)
Sears Canada has opened a Sears Furniture and Appliancesstore at Island Home Centre in Victoria, BC. The48,000-sq.ft. store, dedicated exclusively to furniture,rugs, accent-décor items and major home appliances, will bethe third Sears store of its kind in B.C. – and one of morethan 30 across Canada.
Rona inc. has announced its sponsorship of Québec City’s IceHotel. The sponsorship was in the form of tools andmaterials. Rona will promote this winter tourist destinationthrough various igloo construction events and activities atits participating big box stores. The Swedish style hotelincludes an ice bar, movie theatre and two art galleries.
Wal-Mart plans to open its first store in Japan in 2002reportedly considering Makuhari, which is a 20-minute trainride from Tokyo, and Nagoya, a major city between Osaka andTokyo. Wal-Mart, which is rapidly expanding internationally,plans to establish a Japanese subsidiary this summer tofacilitate future openings.
Kmart Corp. and its e-commerce unit, BlueLight.com, haveinstalled 3,500 Internet shopping kiosks in 1,100 stores.Shoppers will use the kiosks to access BlueLight.com andpurchase items that cannot be found in Kmart stores, oritems that are on sale but are out of stock. Kmart plans tohave kiosks in the all of its 2,100 stores by 2002.
Wolf Gugler & Associates Ltd. has opened its new U.S.offices in Oklahoma City as part of its effort to keep pacewith growing demand in the North American market. Thecompany offers a range of retainer-based executive searchservices specializing in retailers and their suppliers.
Sico Inc. has signed an agreement to purchase ChemcraftInternational Inc., a North Carolina-based wood and metalcoatings manufacturer. Sico will acquire Chemcraft’sindustrial metal coatings operations, as well as a plant inBrantford, ON, for US$11 million. At the same time, Sicowill sell its industrial wood coatings division to Chemcraftfor US$1.5 million.
Unican Security Systems Ltd. has agreed to a takeover byKaba Holding AG of Switzerland at a price of $36 per share.This deal is expected to close by the end of the firstquarter of 2001.
For the third quarter ending November 30, 2000, Maax Inc.had sales of $372.4 million, up 11.63% over thecorresponding period the previous year. Maax has achievedinternal sales growth of 7.3% over the past nine months.
DeWalt Industrial Tools and Accessories has purchased EmgloAir Compressor Co., a Johnstown, PA, manufacturer of aircompressors for the contractor and industrial markets. Emglowas previously owned by Stonewood Capital Management Inc., aPittsburgh-based private venture capital and managementbuyout firm that owned Emglo since 1996.
“Blessed is he who has found his work; let him ask no other blessedness.” – Thomas Carlyle (1795-1881)
PEOPLE ON THE MOVE
Joe Galli has been appointed president and CEO of Newell Rubbermaid. Galli will also serve as a member of the board of directors. He succeeds William P. Sovey, who will reassume his position as chairman of the board. Galli’s move into Newell Rubbermaid has caused a splash in the industry: he was most recently president and CEO of VerticalNet Inc. and, prior to that, COO at Amazon.com. Galli’s experience includes a 19-year career with Black & Decker, where he was responsible for relaunching the DeWalt brand. (815-235-4171)
Castle Building Centres announced the appointment of Brad West as commodity program manager, marketing department. West was formerly president of Bigfords Building Products in Brighton, ON … Ron Douglas’s title as Castle’s Atlantic Canada coordinator has been changed to business development manager – Atlantic Region, to better reflect Douglas’s area of responsibility. (905-564-3307)
Spancan Corp. has elected the following to its board of directors for 2001: Andrew Battagliotti, ILDC; Paul Bonhomme, Les Entreprises P.Bonhomme limitée; Robert Harritt, Sodisco-Howden Group; Larry Jarvis, Revy Home Centres; Tony Molluso, Sodisco-Howden Group; Pierre Racette, Sodisco-Howden Group … The board elected Pierre Racette as president, and ratified Mike Daniels as general manager. (905-428-0700)
NOTED…
… The Building Supply Dealers Association has announced its 3rd Annual Westcoast 2001 Trade Show and Convention, to be held at the Delta Pacific Resort & Conference Centre, Richmond, BC, on March 2nd and 3rd, 2001. This is an opportunity for dealers and suppliers to participate in special sales, speaker events, and the Orion Awards ceremony.
… The Women’s Consumer Products Network will celebrate its first anniversary April 4th with a guest-author lecture from Ann Coombs, a consumer trends specialist who focuses on how to do business in the 21st century and changing consumer needs. Coombs’s address will include excerpts from her new book, The Living Workplace.
… Weldbond will launch a space-themed nationwide marketing strategy to capitalize on its recent NASA certification. Blake Ross, vice-president sales, believes this connection with NASA will create a lot of excitement in retail: “This will be the biggest push we have ever put behind the brand.” Welbond is expanding with sales and marketing plans for the UK, Australia, New Zealand, and China.
MARKET INDICATORS
BUILDING PERMITS
The value of building permits surpassed the $3 billion mark for the sixth straight month in November. This was the first time since 1989 that such a gain occurred. Intentions in the housing sector rose 1.9% to $1.8 billion in November, on the heels of a 5.3% gain in October. On the other hand, the value of non-residential permits declined 1.1% to $1.4 billion.
Year to date, builders took out $34.5 billion worth of permits, up 7% from the equivalent period in 1999. The largest advances occurred in the census metropolitan areas of Ottawa, Calgary and Montréal regions, which contributed to more than half the growth for the country as a whole.
RETAIL TRADE
Retail sales declined 0.9% in October to $23.3 billion, leaving sales slightly below their July level. The October decline followed a 0.4% gain in September and unchanged sales in August. In constant dollars, retails sales fell 0.5% in October compared with September. The strong gains in retail sales in the May-to-July period were followed by weaker sales in recent months. In the first four months of 2000, retailers saw volatile sales after a year of strong increases in 1999. Retail sales for the first 10 months of 2000 were 6.3% higher than in the same period in 1999. This compares with a 5.4% increase for the first 10 months of 1999.
WHOLESALE TRADE
Wholesale sales rose 1.2% to $31.9 billion in October; all provinces except New Brunswick reported higher sales. This month’s increase was broadly based; seven of the 11 trade groups reported an upward swing in sales. Despite this month’s climb, wholesale sales have weakened in recent months, after having risen since mid-1998. The sectors to report the largest increases were: “other” (which includes agricultural chemicals, seeds and seed processing, and industrial and household chemicals) (+4.3%); food products (+3.4%); and apparel and dry goods (+3.3%).
The small rise in October in sales of lumber and building materials (+0.5) was far from sufficient to reverse this sector’s downward sales trend, which dates from late 1999. Prior to this, sales had been rising since mid-1998. October’s increase in sales could be attributed to housing starts being pushed back until later in the season as a result of strikes and bad weather during the spring and summer months.
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
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. Let us handle your internal routing from this end!
HARDLINES™
Five years serving Canada’s home improvement industry
January 8, 2001 – Volume vii, #1 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
PLEASE JOIN HARDLINES AT ITS SIXTH ANNUAL SHOW BREAKFAST to kick off the Canadian Hardware & Building Materials Show.
Don’t miss this key industry event on Sunday, February 4, 2001, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds, where we will present the 2000 Newsmaker of the Year Award. We’re ecstatic over how popular this event has become, but the result is that space gets really limited. Please book early to avoid disappointment! RSVP Nancy at 416-489-3396, send a fax to 416-489-6154; or email: hardline2@on.aibn.com
BE PART OF OUR FREE WEBSITE SHOW TOUR: Introducing the Hardlines Virtual booth at CHS. We’ll be wandering the aisles looking for scoops and taking pictures. We’ll also take booth photos Saturday morning before the show. All exhibiting Hardlines subscribers are invited to participate FREE OF CHARGE! In exchange, we ask that you let us put a small sign in your booth advertising our “virtual booth” at the show. Contact us if you’d like your booth on our website. WHY are we doing this? Oh, just call us crazy! – Michael (Thanks to Fuji for sponsoring the Hardlines digital camera and Dremel and Newell Rubbermaid for joining as sponsors of our “virtual booth”!)
* * * * * *
PRE-SHOW SPECIAL: SAVE BIG ON YOUR PURCHASE OF THE HARDLINES INDUSTRY REPORT “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. PRE-HARDWARE SHOW SPECIAL: order by February 6, 2001, and SAVE $55 off our regular price! Call Bev at 416-489-3396, or email her: bev@hardlinesfax.com
* * * * * *
WANT THE BIG PICTURE? THEN GET OVER TO the Cologne International Hardware Fair/DIY’TEC:Contact Trade Show Travel by phone (877-873-7469) or fax (403-247-2448) or to arrange your trip. BOOK EARLY! Packages include return air fare and accommodations, as well as admission to the Exhibition. And don’t forget the Canada Night Reception sponsored by Hardlines and Cologne International Trade Shows! We’ll see you in Cologne.Over 3,800 suppliers from 57 countries are expected in three trade fair theme areas: The World Tools Centre, Security Systems Locks and Fittings, and DIY’TEC. The Hardware sector will occupy the entire exhibition space at KolnMesse, that is over 3 million sq. ft. of hardware and building supplies!
* * * * * *
PRICING UPDATE: Effective January 1st, 2001, all Hardlines subscription renewals will have a price increase of 7.5% to $199 for basic subscriptions, and to $28 for additional email subscriptions at the same location. We’ve held off as long as we could: our last (and only) increase was January 1998. Since 1995, we’ve doubled our frequency – from bi-weekly to weekly – and more than doubled the amount of information in each issue. Plus you get our Classified section and all those great features online at our website! Thanks very much for your support – we look forward to keeping you informed for many years to come!
HOME PUTS PUSH ON BEAVER CONVERSIONS
The next three months will see a fast track of Home Hardware’s conversion of its Beaver Lumber stores. “The conversion process has been spread out over four months [December 2000-March 2001],” says Paul Strauss, vice-president and CEO of Home Hardware Stores Ltd. “That will allow us to make the merchandise and system conversions more manageable.”
The first Beaver dealer to make the switch was Brian Buck’s Bridgewater, NS store, which converted at the beginning of December. There is already a Home Hardware in town, but it’s a hardware store right downtown, and the former Beaver site is out on the highway. He was one of the nine Beaver stores in the Maritimes to make the switch before Christmas.
As the stores switch, they will convert inventory and POS systems to integrate with Home’s distribution system. At the same time, they will switch from the hardware supply agreement they had with Ace Hardware Canada and begin receiving their hardware from one of Home’s three distribution centres. By March 31, all the stores will have made the switch and at that time the Ace deal will be formally terminated.
Changes at Home’s head office following the acquisition include beefing up of its building materials division. Erick Konescni, vice-president and general manager, Joel Marks, director of merchandising, and Jack Baillie, director of marketing, have all moved from Beaver’s Markham, ON offices to work in Home’s head office in St. Jacob’s. The architectural and computer staff, along with some accounting people, will remain in Markham. They too, will move eventually, says Straus, but he declined to put a time line on that move. In the meantime, Konescni and company will shuttle back and forth between the two offices until March 31.
* * * * * *
HOME IMPROVEMENT DEALERS GO EXTRA MILE IN CONSUMER SURVEY
A national consumer survey conducted by Chatelaine magazine ranked Castle Building Centres Group fifth out of 40 Canadian retail networks. Home Hardware’s independent dealers ranked a close sixth, with Pro Hardware following in eighth place.
The survey used criteria such as staff accessibility and their knowledge of store policies and product application; it was compiled from the reports of mystery shoppers sent to 40 of Canada’s largest retail chains. To qualify, chains had to have more than 100 stores and be open for business in at least six provinces. The survey, which appears in the January issue of Chatelaine, focuses on stores catering to the magazine’s target readership, women ages 25 to 49.
According to Chatelaine’s Shandley McMurray, the hardware/home improvement stores represented unique circumstances. While most of the chains cited in the study were corporately owned, the Castle, Home and Pro stores are independently owned, meaning the style and quality of service can vary widely from store to store. However, all stores within the top-ranked dealer networks inspected by Chatelaine’s mystery shoppers proved to be consistently good, she said.
COMPANIES IN THE NEWS
For the first time in the history of the chain, Home Depot held a store-wide sale in all its U.S. and Canadian stores. The 10% sale, held December 21-24, was advertised in radio and television nationwide. Revy matched competitive prices instore, while Home Depot’s U.S. competitor, Lowe’s, offered a similar discount throughout the last days of its holiday selling season. Home Depot, on the heels of sluggish 3Q results, remains confident it will have 23%-25% growth in earnings per share in fiscal 2001, which ends January 31, 2001.
Weyerhaeuser Co.’s pulp mill at Kamloops, BC has achieved registration to the ISO 14001 EMS standard. Registration followed a thorough independent audit by the Quality Management Institute, a division of the Canadian Standards Association. The same certification was given to Weyerhaeuser’s Timberlands operations near Port Alberni in early December 2000. Weyerhaeuser expects to have all its units ISO 14001 certified by 2002 and certified to the CSA’s Sustainable Forest Management standard by 2003.
Canadian Tire’s new website moved into the top five e-commerce sites in Canada within two weeks of launch, according to a report from Nielsen/NetRatings. The website received close to 500,000 first-time visits in its first two weeks, and was approaching 700,000 total visits in the period running up to Christmas.
HomeBase, Irvine, CA, has announced its departure from home improvement to reposition itself in the home decorating market, as noted by The Hard Fax. In September 2000, HomeBase opened five House2Home test stores in Southern California and Las Vegas. The company will open an additional 62 stores to the House2Home format, and close the remaining 22 home improvement stores. Each of the House2Home stores will offer 100,000 square feet of interior selling space with an adjoining outdoor nursery and garden centre.
On December 15, 2000, The Supreme Court of Canada dismissed an appeal by Camco Inc. of a 1997 Federal Court of Canada decision on a patent infringement suit initiated by Whirlpool and its Canadian subsidiary, Inglis, in 1995.The patent in question involved a minor, flexible-fin feature on a dual-agitator washing machine. As the patent expired almost three years ago, the Court’s decision will have no impact on the washing machines Camco currently sells in Canada.
“The difference between sex and death is that with death you can do it alone and no one is going to make fun of you.” – Woody Allen
PEOPLE ON THE MOVE
Dennis Nykoliation has left CanWel Distribution Ltd. and been replaced by Bernie McSherry as president and CEO. McSherry’s 35 years of experience in the industry include nine years as general manager of MacMillan Bloedel Building Materials Canada. Most recently, McSherry was managing director of R.W. Marketing Group Inc. (604-432-1400)
Canadian Tire Corp. has appointed Michael B. Medline senior vice-president, New Business Development. He effectively replaces Ralph Trott, who exited CTC as vp new business development late last year. CTC recently established New Business Development as one of three stand alone business units. The others are Canadian Tire Retail and Canadian Tire Financial Services. Medline was most recently senior vice-president, strategy and corporate development for Abitibi-Consolidated Inc. (416-480-3000)
Black & Decker Canada Inc. appointed Joe Dillio vice-president, power tool and accessory sales for B&D’s business with Home Depot Canada. Dillio held prior positions as director of sales as well as in the marketing, sales, and product service divisions within the company … Patricia Noronha was appointed B&D’s group marketing manager, outdoor home products and factory stores. Her five years of experience with Black & Decker include positions in outdoor products as well as the accessories and price pfister divisions. (905-886-9511)
Crane Supply has announced the following management changes: Tom Frazer ha been appointed vice-president and general manager. Frazer’s 20 years of experience with Crane include positions in sales and regional management, most recently as vice-president … Jim Anderson has been appointed Crane’s Central Ontario regional manager … Luc Beaupré will take on the role of Québec regional manager. (416-244-5351)
The three top people at Distribution America have exited suddenly. Ron Pink, president, Ron Draghi, CFO, and Curt Burdick, vice-president sales promotion, have left the Illinois-based buying group of wholesale distributors. (847-296-7000)
MARKET INDICATORS
The annual rate of housing starts in Canada fell 5.5% in November to 155,800 units seasonally adjusted, compared with 164,900 in October, according to CMHC. Urban singles starts were up 8.7% to 77,600 units, compared with 71,400 in October while urban multiples starts decreased 21.2% from 72,300 units in October to 57,000 in November.
Prairie urban starts increased 10.3% 26,700 units while multiples were up 37.8%. Singles were down 3.8%. In Québec, urban starts were up 10.2% to 23,700 units from 21,500 in October. Singles rose 31.4% but multiples were down 8.8%. Ontario urban starts were down 8.4% to 67,300 units, primarily due to a 31.3% drop in multiples. This was counterbalanced by a 17.8% increase in singles.
British Columbia’s 11,200 urban starts last month decreased 40.1% from October. Both multiples were down 46.7 and singles were down 27.7%.
In the Atlantic Region, overall urban starts were essentially unchanged. Activity increased in New Brunswick but slowed in Newfoundland and Prince Edward Island. Nova Scotia’s building pace of 1,900 starts in November was close to the October output.
OVERHEARD…
“More than 500 people were waiting outside the Cambridge Building Box store. If you were to ask me if this exceeded our wildest expectations in terms of community acceptance and acceptance of a concept, I’d have to say ‘yes’.” – James Jones, general merchandising manager of The Building Box, on customer response to the opening of its newest store in Ontario. The store opened simultaneously with an outlet in Scarborough, ON.
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
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. Let us handle your internal routing from this end!
HARDLINES™
Five years serving Canada’s home improvement industry
January 8, 2001 – Volume vii, #1 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
PLEASE JOIN HARDLINES AT ITS SIXTH ANNUAL SHOW BREAKFAST to kick off the Canadian Hardware & Building Materials Show.
Don’t miss this key industry event on Sunday, February 4, 2001, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds, where we will present the 2000 Newsmaker of the Year Award. We’re ecstatic over how popular this event has become, but the result is that space gets really limited. Please book early to avoid disappointment! RSVP Nancy at 416-489-3396, send a fax to 416-489-6154; or email: hardline2@on.aibn.com
BE PART OF OUR FREE WEBSITE SHOW TOUR: Introducing the Hardlines Virtual booth at CHS. We’ll be wandering the aisles looking for scoops and taking pictures. We’ll also take booth photos Saturday morning before the show. All exhibiting Hardlines subscribers are invited to participate FREE OF CHARGE! In exchange, we ask that you let us put a small sign in your booth advertising our “virtual booth” at the show. Contact us if you’d like your booth on our website. WHY are we doing this? Oh, just call us crazy! – Michael (Thanks to Fuji for sponsoring the Hardlines digital camera and Dremel and Newell Rubbermaid for joining as sponsors of our “virtual booth”!)
* * * * * *
PRE-SHOW SPECIAL: SAVE BIG ON YOUR PURCHASE OF THE HARDLINES INDUSTRY REPORT “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. PRE-HARDWARE SHOW SPECIAL: order by February 6, 2001, and SAVE $55 off our regular price! Call Bev at 416-489-3396, or email her: bev@hardlinesfax.com
* * * * * *
WANT THE BIG PICTURE? THEN GET OVER TO the Cologne International Hardware Fair/DIY’TEC:Contact Trade Show Travel by phone (877-873-7469) or fax (403-247-2448) or to arrange your trip. BOOK EARLY! Packages include return air fare and accommodations, as well as admission to the Exhibition. And don’t forget the Canada Night Reception sponsored by Hardlines and Cologne International Trade Shows! We’ll see you in Cologne.Over 3,800 suppliers from 57 countries are expected in three trade fair theme areas: The World Tools Centre, Security Systems Locks and Fittings, and DIY’TEC. The Hardware sector will occupy the entire exhibition space at KolnMesse, that is over 3 million sq. ft. of hardware and building supplies!
* * * * * *
PRICING UPDATE: Effective January 1st, 2001, all Hardlines subscription renewals will have a price increase of 7.5% to $199 for basic subscriptions, and to $28 for additional email subscriptions at the same location. We’ve held off as long as we could: our last (and only) increase was January 1998. Since 1995, we’ve doubled our frequency – from bi-weekly to weekly – and more than doubled the amount of information in each issue. Plus you get our Classified section and all those great features online at our website! Thanks very much for your support – we look forward to keeping you informed for many years to come!
HOME PUTS PUSH ON BEAVER CONVERSIONS
The next three months will see a fast track of Home Hardware’s conversion of its Beaver Lumber stores. “The conversion process has been spread out over four months [December 2000-March 2001],” says Paul Strauss, vice-president and CEO of Home Hardware Stores Ltd. “That will allow us to make the merchandise and system conversions more manageable.”
The first Beaver dealer to make the switch was Brian Buck’s Bridgewater, NS store, which converted at the beginning of December. There is already a Home Hardware in town, but it’s a hardware store right downtown, and the former Beaver site is out on the highway. He was one of the nine Beaver stores in the Maritimes to make the switch before Christmas.
As the stores switch, they will convert inventory and POS systems to integrate with Home’s distribution system. At the same time, they will switch from the hardware supply agreement they had with Ace Hardware Canada and begin receiving their hardware from one of Home’s three distribution centres. By March 31, all the stores will have made the switch and at that time the Ace deal will be formally terminated.
Changes at Home’s head office following the acquisition include beefing up of its building materials division. Erick Konescni, vice-president and general manager, Joel Marks, director of merchandising, and Jack Baillie, director of marketing, have all moved from Beaver’s Markham, ON offices to work in Home’s head office in St. Jacob’s. The architectural and computer staff, along with some accounting people, will remain in Markham. They too, will move eventually, says Straus, but he declined to put a time line on that move. In the meantime, Konescni and company will shuttle back and forth between the two offices until March 31.
* * * * * *
HOME IMPROVEMENT DEALERS GO EXTRA MILE IN CONSUMER SURVEY
A national consumer survey conducted by Chatelaine magazine ranked Castle Building Centres Group fifth out of 40 Canadian retail networks. Home Hardware’s independent dealers ranked a close sixth, with Pro Hardware following in eighth place.
The survey used criteria such as staff accessibility and their knowledge of store policies and product application; it was compiled from the reports of mystery shoppers sent to 40 of Canada’s largest retail chains. To qualify, chains had to have more than 100 stores and be open for business in at least six provinces. The survey, which appears in the January issue of Chatelaine, focuses on stores catering to the magazine’s target readership, women ages 25 to 49.
According to Chatelaine’s Shandley McMurray, the hardware/home improvement stores represented unique circumstances. While most of the chains cited in the study were corporately owned, the Castle, Home and Pro stores are independently owned, meaning the style and quality of service can vary widely from store to store. However, all stores within the top-ranked dealer networks inspected by Chatelaine’s mystery shoppers proved to be consistently good, she said.
COMPANIES IN THE NEWS
For the first time in the history of the chain, Home Depot held a store-wide sale in all its U.S. and Canadian stores. The 10% sale, held December 21-24, was advertised in radio and television nationwide. Revy matched competitive prices instore, while Home Depot’s U.S. competitor, Lowe’s, offered a similar discount throughout the last days of its holiday selling season. Home Depot, on the heels of sluggish 3Q results, remains confident it will have 23%-25% growth in earnings per share in fiscal 2001, which ends January 31, 2001.
Weyerhaeuser Co.’s pulp mill at Kamloops, BC has achieved registration to the ISO 14001 EMS standard. Registration followed a thorough independent audit by the Quality Management Institute, a division of the Canadian Standards Association. The same certification was given to Weyerhaeuser’s Timberlands operations near Port Alberni in early December 2000. Weyerhaeuser expects to have all its units ISO 14001 certified by 2002 and certified to the CSA’s Sustainable Forest Management standard by 2003.
Canadian Tire’s new website moved into the top five e-commerce sites in Canada within two weeks of launch, according to a report from Nielsen/NetRatings. The website received close to 500,000 first-time visits in its first two weeks, and was approaching 700,000 total visits in the period running up to Christmas.
HomeBase, Irvine, CA, has announced its departure from home improvement to reposition itself in the home decorating market, as noted by The Hard Fax. In September 2000, HomeBase opened five House2Home test stores in Southern California and Las Vegas. The company will open an additional 62 stores to the House2Home format, and close the remaining 22 home improvement stores. Each of the House2Home stores will offer 100,000 square feet of interior selling space with an adjoining outdoor nursery and garden centre.
On December 15, 2000, The Supreme Court of Canada dismissed an appeal by Camco Inc. of a 1997 Federal Court of Canada decision on a patent infringement suit initiated by Whirlpool and its Canadian subsidiary, Inglis, in 1995.The patent in question involved a minor, flexible-fin feature on a dual-agitator washing machine. As the patent expired almost three years ago, the Court’s decision will have no impact on the washing machines Camco currently sells in Canada.
“The difference between sex and death is that with death you can do it alone and no one is going to make fun of you.” – Woody Allen
PEOPLE ON THE MOVE
Dennis Nykoliation has left CanWel Distribution Ltd. and been replaced by Bernie McSherry as president and CEO. McSherry’s 35 years of experience in the industry include nine years as general manager of MacMillan Bloedel Building Materials Canada. Most recently, McSherry was managing director of R.W. Marketing Group Inc. (604-432-1400)
Canadian Tire Corp. has appointed Michael B. Medline senior vice-president, New Business Development. He effectively replaces Ralph Trott, who exited CTC as vp new business development late last year. CTC recently established New Business Development as one of three stand alone business units. The others are Canadian Tire Retail and Canadian Tire Financial Services. Medline was most recently senior vice-president, strategy and corporate development for Abitibi-Consolidated Inc. (416-480-3000)
Black & Decker Canada Inc. appointed Joe Dillio vice-president, power tool and accessory sales for B&D’s business with Home Depot Canada. Dillio held prior positions as director of sales as well as in the marketing, sales, and product service divisions within the company … Patricia Noronha was appointed B&D’s group marketing manager, outdoor home products and factory stores. Her five years of experience with Black & Decker include positions in outdoor products as well as the accessories and price pfister divisions. (905-886-9511)
Crane Supply has announced the following management changes: Tom Frazer ha been appointed vice-president and general manager. Frazer’s 20 years of experience with Crane include positions in sales and regional management, most recently as vice-president … Jim Anderson has been appointed Crane’s Central Ontario regional manager … Luc Beaupré will take on the role of Québec regional manager. (416-244-5351)
The three top people at Distribution America have exited suddenly. Ron Pink, president, Ron Draghi, CFO, and Curt Burdick, vice-president sales promotion, have left the Illinois-based buying group of wholesale distributors. (847-296-7000)
MARKET INDICATORS
The annual rate of housing starts in Canada fell 5.5% in November to 155,800 units seasonally adjusted, compared with 164,900 in October, according to CMHC. Urban singles starts were up 8.7% to 77,600 units, compared with 71,400 in October while urban multiples starts decreased 21.2% from 72,300 units in October to 57,000 in November.
Prairie urban starts increased 10.3% 26,700 units while multiples were up 37.8%. Singles were down 3.8%. In Québec, urban starts were up 10.2% to 23,700 units from 21,500 in October. Singles rose 31.4% but multiples were down 8.8%. Ontario urban starts were down 8.4% to 67,300 units, primarily due to a 31.3% drop in multiples. This was counterbalanced by a 17.8% increase in singles.
British Columbia’s 11,200 urban starts last month decreased 40.1% from October. Both multiples were down 46.7 and singles were down 27.7%.
In the Atlantic Region, overall urban starts were essentially unchanged. Activity increased in New Brunswick but slowed in Newfoundland and Prince Edward Island. Nova Scotia’s building pace of 1,900 starts in November was close to the October output.
OVERHEARD…
“More than 500 people were waiting outside the Cambridge Building Box store. If you were to ask me if this exceeded our wildest expectations in terms of community acceptance and acceptance of a concept, I’d have to say ‘yes’.” – James Jones, general merchandising manager of The Building Box, on customer response to the opening of its newest store in Ontario. The store opened simultaneously with an outlet in Scarborough, ON.
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
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. Let us handle your internal routing from this end!
HARDLINES™
Five years serving Canada’s home improvement industry
December 18, 2000 – Volume vi, #48 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
SPECIAL HARDLINES “CHRISTMAS EXTRA” EDITION. Hey, this marks the end of our fifth year in business. I have to admit I’m kinda tired and look forward to a few days rest. I think many of you are in the same boat, so take care during the holidays ahead. And get some sleep!
Please note that Hardlines will not be published on December 25 or January 1. See you again on January 8. UNTIL TheN, Have A safe and happy holiday! – Michael
* * * * * *
IN A LAST MINUTE GIFT PANIC? TRY SENDING A GIFT BASKET: Wright’s Send a Basket has 15 years of family-run experience to help choose a basket suitable for your family, friends, and corporate needs. We like these folks: they have friendly, knowledgeable staff and will make local and worldwide deliveries in a pinch. Wright’s Send a Basket Ltd., 205 Oxford St. E., London, ON N6A 5G6. Phone: 519-432-3707; fax: 519-432-0020
* * * * * *
SAVE BIG ON YOUR PURCHASE OF THE HARDLINES INDUSTRY REPORT: “Hardlines Industry Report: Home Improvement Retailing in Canada” is almost ready to ship! This incredible book 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. BUT CALL, or e-mail, BEV RIGHT AWAY because she’s cooked up even more SAVINGS if you order before December 31!!!
* * * * * *
PRICING UPDATE: Effective January 1st, 2001, all Hardlines subscription renewals will have a price increase of 7.5% to $199 for basic subscriptions, and to $28 for additional email subscriptions at the same location. We’ve held off as long as we could: our last (and only) increase was January 1998. Since 1995, we’ve doubled our frequency – from bi-weekly to weekly – and more than doubled the amount of information in each issue. Plus you get our Classified section and all those great features online at our website! Thanks very much for your support – we look forward to keeping you informed for many years to come!
HARDWARE STORES REMAIN KEY PART OF HOME IMPROVEMENT MARKET
Despite the rise of specialty formats in hardware/home improvement retailing, traditional hardware stores have grown in both numbers and overall sales in the past three years. According to The Hardlines Industry Report: Home Improvement Retailing in Canada, the number of hardware stores in Canada has remained above 3,000 while overall sales have grown from 7.2% of the Canadian market in 1996 to 8.1% in 1999.
Building centres, however, have slipped in overall share of the market, likely at the expense of big box players, which have increased their overall market share by an average of 13% annually between 1996 and 1999.
The Hardlines Industry Report is a special study that’s just been published by Hardlines, Canada’s electronic newsletter for the home improvement industry. To order or for more information, call Beverly at 416-489-3396 or email her: bev@hardlinesfax.com
COMPANIES IN THE NEWS
Canadian Tire Corp. made some changes last week that affected some buyers, mostly from the automotive side, as well as a number of people from the marketing operations group. A total of 23 positions have been eliminated so far. At the same time, some titles have been added to the buying side, which I’ll report on further in the new year.
Imperial Manufacturing Group has acquired Boflex, a Montreal-based manufacturer of flexible air ducts and connective products for heating, ventilation, and air conditioning systems.
Better Living Products of Canada has appointed Nimatec Inc. to represent them in Québec and the Ottawa Valley, effective January 1, 2001, under Stephane Stonely.
“At Christmas play and make good cheer, for Christmas comes but once a year.” – Thomas Tusser (1524-1580)
PEOPLE ON THE MOVE
Sodisco-Howden Group Inc. has appointed Robert Harritt to the position of executive vice-president and CFO, effective January 8, 2001. He previously held positions as vice-president and CFO of Hartco Corp. and vice-president finance and administration with Rona Inc. (450-441-6001)
Following the acquisition of Boflex by Imperial Manufacturing Group, Stephane Room, former Boflex vice-president, has been installed as national sales manager – Boflex. (506-523-9117)
NOTED …
The Atlantic Building Supply Dealers Association will hold a Professional Development Day on Monday, January 22, 2001. Last year, ABSDA made available some 32 workshops as well as the opportunity to recognize graduates of the Certified Retail Management Studies program. Quality seminars and valuable networking are expected. Call 506-858-0700 for more info.
The Prairie Showcase trade show and annual convention will be held at the Saskatoon Prairieland Exhibition Centre January 18-21, 2001. This is a great buying show, so anyone serving the Western market should make a point of being there. To register, call 204-957-1077. Members of the WRLA are invited to attend the annual general meeting on January 19, 2001. Other events include breakfast & speakers, The President’s Gala, and Western Night.
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
HARDLINES™
Five years serving Canada’s home improvement industry
December 18, 2000 – Volume vi, #48 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
SPECIAL HARDLINES “CHRISTMAS EXTRA” EDITION. Hey, this marks the end of our fifth year in business. I have to admit I’m kinda tired and look forward to a few days rest. I think many of you are in the same boat, so take care during the holidays ahead. And get some sleep!
Please note that Hardlines will not be published on December 25 or January 1. See you again on January 8. UNTIL TheN, Have A safe and happy holiday! – Michael
* * * * * *
IN A LAST MINUTE GIFT PANIC? TRY SENDING A GIFT BASKET: Wright’s Send a Basket has 15 years of family-run experience to help choose a basket suitable for your family, friends, and corporate needs. We like these folks: they have friendly, knowledgeable staff and will make local and worldwide deliveries in a pinch. Wright’s Send a Basket Ltd., 205 Oxford St. E., London, ON N6A 5G6. Phone: 519-432-3707; fax: 519-432-0020
* * * * * *
SAVE BIG ON YOUR PURCHASE OF THE HARDLINES INDUSTRY REPORT: “Hardlines Industry Report: Home Improvement Retailing in Canada” is almost ready to ship! This incredible book 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. BUT CALL, or e-mail, BEV RIGHT AWAY because she’s cooked up even more SAVINGS if you order before December 31!!!
* * * * * *
PRICING UPDATE: Effective January 1st, 2001, all Hardlines subscription renewals will have a price increase of 7.5% to $199 for basic subscriptions, and to $28 for additional email subscriptions at the same location. We’ve held off as long as we could: our last (and only) increase was January 1998. Since 1995, we’ve doubled our frequency – from bi-weekly to weekly – and more than doubled the amount of information in each issue. Plus you get our Classified section and all those great features online at our website! Thanks very much for your support – we look forward to keeping you informed for many years to come!
HARDWARE STORES REMAIN KEY PART OF HOME IMPROVEMENT MARKET
Despite the rise of specialty formats in hardware/home improvement retailing, traditional hardware stores have grown in both numbers and overall sales in the past three years. According to The Hardlines Industry Report: Home Improvement Retailing in Canada, the number of hardware stores in Canada has remained above 3,000 while overall sales have grown from 7.2% of the Canadian market in 1996 to 8.1% in 1999.
Building centres, however, have slipped in overall share of the market, likely at the expense of big box players, which have increased their overall market share by an average of 13% annually between 1996 and 1999.
The Hardlines Industry Report is a special study that’s just been published by Hardlines, Canada’s electronic newsletter for the home improvement industry. To order or for more information, call Beverly at 416-489-3396 or email her: bev@hardlinesfax.com
COMPANIES IN THE NEWS
Canadian Tire Corp. made some changes last week that affected some buyers, mostly from the automotive side, as well as a number of people from the marketing operations group. A total of 23 positions have been eliminated so far. At the same time, some titles have been added to the buying side, which I’ll report on further in the new year.
Imperial Manufacturing Group has acquired Boflex, a Montreal-based manufacturer of flexible air ducts and connective products for heating, ventilation, and air conditioning systems.
Better Living Products of Canada has appointed Nimatec Inc. to represent them in Québec and the Ottawa Valley, effective January 1, 2001, under Stephane Stonely.
“At Christmas play and make good cheer, for Christmas comes but once a year.” – Thomas Tusser (1524-1580)
PEOPLE ON THE MOVE
Sodisco-Howden Group Inc. has appointed Robert Harritt to the position of executive vice-president and CFO, effective January 8, 2001. He previously held positions as vice-president and CFO of Hartco Corp. and vice-president finance and administration with Rona Inc. (450-441-6001)
Following the acquisition of Boflex by Imperial Manufacturing Group, Stephane Room, former Boflex vice-president, has been installed as national sales manager – Boflex. (506-523-9117)
NOTED …
The Atlantic Building Supply Dealers Association will hold a Professional Development Day on Monday, January 22, 2001. Last year, ABSDA made available some 32 workshops as well as the opportunity to recognize graduates of the Certified Retail Management Studies program. Quality seminars and valuable networking are expected. Call 506-858-0700 for more info.
The Prairie Showcase trade show and annual convention will be held at the Saskatoon Prairieland Exhibition Centre January 18-21, 2001. This is a great buying show, so anyone serving the Western market should make a point of being there. To register, call 204-957-1077. Members of the WRLA are invited to attend the annual general meeting on January 19, 2001. Other events include breakfast & speakers, The President’s Gala, and Western Night.
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
HARDLINES™
Five years serving Canada’s home improvement industry
December 11, 2000 – Volume vi, #47 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
THINKING OF ATTENDING THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC? Contact Trade Show Travel by phone (877-873-7469) or fax (403-247-2448) to arrange your trip. BOOK EARLY! Packages include return air fare and accommodations, as well as admission to the Exhibition. And don’t forget the Canada Night Reception sponsored by Hardlines and Cologne International Trade Shows! We’ll see you in Cologne.
* * * * * *
SAVE BIG ON YOUR PURCHASE OF THE HARDLINES INDUSTRY REPORT: “Hardlines Industry Report: Home Improvement Retailing in Canada” is almost ready to ship! This incredible book 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. BUT CALL, or e-mail, BEV RIGHT AWAY because she’s cooked up even more SAVINGS if you order before December 31!!!
RONA PREZ AFFIRMS NATIONAL EXPANSION PLANS
Rona’s plan to become the number-two player in the Canadian hardware market with $3 billion in sales by 2003 was outlined at a recent breakfast meeting in Toronto of the Canadian Hardware and Housewares Manufacturers Association.
There, Rick Blickstead, president of Rona Retail Canada, described Rona’s intention to be a serious contender in Canada’s big box game. “I think what will emerge is two national players – plus one niche player. Our American competitor will be number one and we are committed to be number two,” he said. “It is in our best interest to consolidate, or risk being marginalized.”
Blickstead also explained the reason for the delay of Rona’s first Ontario big box store, which was to open earlier this year in Brampton, ON. He stopped construction shortly after joining the company to reconsider what form their large-format stores should take. “Imagine Ikea meets Rona meets DisneyWorld,” said Blickstead to describe the store’s new look.
Rona’s strategy includes becoming an integrated “clicks and bricks” company with a strong web presence to sell everything from the gift items to industrial/commercial products. But that requires creating a retail culture out of Rona’s traditional wholesale business, which involves getting away from a “pick and choose” mentality for dealers to a more sharply defined product assortment. “We have thousands of products that we sell two or less of each year through the entire chain.”
A greater focus on sell-through rather than just sell-in has resulted in a review of 35,000 SKUs over the past year. Despite rationalizing assortments, though, Rona remains open to, and seeks out, new and innovative products, said Blickstead.
* * * * * *
RÉNO-DÉPÔT NOT INTERESTED IN REVY, SAYS CHAIRMAN
Rumours of an imminent buyout of one of the battling big box companies in Canada persist. But scratch Réno-Dépôt off the list of possible purchasers, says company chairman Pierre Michaud.
Michaud, in Toronto the other week for the opening of the first two Building Box stores in Ontario, told Hardlines that Réno-Dépôt had considered acquiring Revy, but chose against it. “We looked and we thought about it,” said Michaud, “but we wanted to grow inside.” The focus of Réno-Dépôt’s expansion outside Québec will be organic. “We want to bring in our own people focusing on our own strategy,” he added.
Réno-Dépôt plans to open up to 15 big box stores in southern Ontario under the Building Box name within the next three years.
* * * * * *
SEARS LAUNCHES NEW TOOL CONCEPT IN U.S. MALL STORES
Sears in the U.S. is trying to capitalize on its Craftsman tool brand by expanding displays in its mall stores and adding selected national brands. Called Tool Territory, the new program is an effort by Sears to revitalize its 700-plus mall stores south of the border.
Stress is placed on the fact that most Craftsman tools are made in the U.S. However, Sears has now developed a secondary, lower-priced brand called “Companion,” which is manufactured almost entirely in China. Tool Territory will offer the range of price points through the two brands.
For a number of years Sears has advertised “the softer side of Sears.” Tool Territory is regarded as a major effort to recapture some of the male-oriented business it might have lost in that campaign.
– Thanks to Bob Vereen of Vereen & Associates for this item (wdiyc@netdirect.net)
* * * * * *
STRONG SEMINAR PROGRAM WILL BEEF UP CANADIAN HARDWARE SHOW
A more comprehensive educational program is just one of the highlights of the upcoming Canadian Hardware and Building Materials Show, held February 4-6, 2001 at the National Trade Centre in Toronto.
The show will comprise 1,500 exhibits in hardware, home improvement, home trends & décor, and seasonal product categories. The hardware and home improvement sections will constitute more than two-thirds of the show and the new product showcase will feature some 500 items.
Joe Edwards, CHS show manager, says the show’s speaker program has been expanded to include product knowledge courses and creative learning opportunities.
New product knowledge and certification courses, sponsored by the CRHA and PDRA, will complement the fair’s educational component by offering in-depth product education for dealers and store staff. Subjects will include plumbing and electrical as well as certification courses in paint, faux finishing and interior decorating.
The show’s social calendar includes the Hardlines Show Breakfast (held exclusively for subscribers and guests of Hardlines) and the Industry Gala at the Sheraton Centre Hotel, a charity event for the Easter Seals presented by the Canadian Hardware & Housewares Manufacturers Association. The CHS Awards Night will recognize the best product innovations and industry winners of the year.
For more information about the show, call: 905-821-3470. www.crha.com
COMPANIES IN THE NEWS
More than 40 product managers from the Alliance International LLC (Do it Best Corp., and Canadian companies RONA Inc. and Home Hardware Stores Ltd.) attended a training conference in Port Huron, Mich., Nov.15-17 to learn about new negotiating strategies for 2001. The conference focused on giving the product managers new approaches to using the significant clout of the Alliance International. Speakers included Bob MacDonald, vice president and principal of General Management Technologies, and Patrick Rodmell, vice president of global marketing for the Watt Group.
Ontario buying group Torbsa Ltd. has moved to 2 Marconi Court, unit 13, Bolton, ON L7E 1E5; phone: 905-857-5811, fax: 905-951-9923.
Weyerhaeuser Co.’s West Island Timberlands operations near Port Alberni have achieved certification to the Canadian Standards Association’s Sustainable Forest Management system standard. Weyerhaeuser expects to have all units third-party certified to the ISO 14001 EMS standard by 2002 and to the CSA’s Sustainable Forest Management standard by 2003.
General Paint Inc. recently opened its first Ontario store and distribution centre in Cambridge. The facility represents a first step in building a contractor and dealer network in that province. The company plans to open 3-4 more stores within the first six months of 2001, all located in secondary markets outside the GTA.
Talon Int’l Machinery Corp. has moved to 525 Southgate Drive, unit 2, Guelph, ON N1G 3W6; phone: 1-800-454-2215, fax: 519-780-1498.
CLARIFICATION: Last week we reported on ILDC’s efforts to harmonize its buying. Part of the message by general manager Andrew Battagliotti was that, while the group recognizes regional and promotional buys are occasionally necessary, it does not tolerate side deals of any kind and has a process in place by which to deal with such situations should they occur.
“A man hath no better thing under the sun than to eat, and to drink, and to be merry.” – Ecclesiastes (viii:15)
PEOPLE ON THE MOVE
Home Depot in Atlanta has appointed Robert L. Nardelli as president and CEO. Nardelli comes over from General Electric Co., where he had served since 1995 as president and CEO of GE Power Systems, a US$15-billion division of GE. Arthur Blank, Home Depot’s current president and CEO, will join Bernard Marcus as co-chairman.
An organizational shuffle at Lafarge Gypsum has resulted in a number of new appointments: Ron Craighead has assumed the role of general manager sales and marketing for Canada. He was previously director of sales and marketing – Canada … John Tibbitts has come over from the manufacturing side of the business to join Lafarge’s sales team as manager of strategic planning … Jacques Corbeil has been appointed Québec sales manager. He comes over from Cameron Ashley Building Products, where he had served as Québec sales manager … Lorraine Taylor has joined as sales administrative co-ordinator. She was previously customer service director for Westroc. (905-702-9001)
Andy Moncrieff has accepted a position as Ontario sales rep with Roland Boulanger Ltd.. Andy was formerly Ontario sales manager for Dural Division of Multibond. His new address is 29 Portal Crescent, London, Ont., N5X 2E5. (519-679-6707)
NOTED …
The International Hardware Fair/DIY’TEC will be held in Cologne, Germany, February 18-21, 2001. More than 3,800 suppliers from around the world are expected to exhibit under three theme: World Tools Centre, Security Systems Locks and Fittings, and DIY’TEC. Last year, Cologne was the meeting point for 96,000 trade visitors from 126 countries. Any retailer or vendor trying to keep up with the internationalization of companies such as Castorama and Home Depot should make a point of attending this event.
OVERHEARD…
“We’re not the brightest lights at the dance; we’re not the dullest either. We’re just ordinary people trying to do extraordinary things.” – Rick Blickstead, president of Rona Retail Canada at a recent meeting of the CHHMA, on his company’s intention to grow into a truly national company – both by expansion and acquisition.
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
HARDLINES™
Five years serving Canada’s home improvement industry
December 11, 2000 – Volume vi, #47 Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com
THINKING OF ATTENDING THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY’TEC? Contact Trade Show Travel by phone (877-873-7469) or fax (403-247-2448) to arrange your trip. BOOK EARLY! Packages include return air fare and accommodations, as well as admission to the Exhibition. And don’t forget the Canada Night Reception sponsored by Hardlines and Cologne International Trade Shows! We’ll see you in Cologne.
* * * * * *
SAVE BIG ON YOUR PURCHASE OF THE HARDLINES INDUSTRY REPORT: “Hardlines Industry Report: Home Improvement Retailing in Canada” is almost ready to ship! This incredible book 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. BUT CALL, or e-mail, BEV RIGHT AWAY because she’s cooked up even more SAVINGS if you order before December 31!!!
RONA PREZ AFFIRMS NATIONAL EXPANSION PLANS
Rona’s plan to become the number-two player in the Canadian hardware market with $3 billion in sales by 2003 was outlined at a recent breakfast meeting in Toronto of the Canadian Hardware and Housewares Manufacturers Association.
There, Rick Blickstead, president of Rona Retail Canada, described Rona’s intention to be a serious contender in Canada’s big box game. “I think what will emerge is two national players – plus one niche player. Our American competitor will be number one and we are committed to be number two,” he said. “It is in our best interest to consolidate, or risk being marginalized.”
Blickstead also explained the reason for the delay of Rona’s first Ontario big box store, which was to open earlier this year in Brampton, ON. He stopped construction shortly after joining the company to reconsider what form their large-format stores should take. “Imagine Ikea meets Rona meets DisneyWorld,” said Blickstead to describe the store’s new look.
Rona’s strategy includes becoming an integrated “clicks and bricks” company with a strong web presence to sell everything from the gift items to industrial/commercial products. But that requires creating a retail culture out of Rona’s traditional wholesale business, which involves getting away from a “pick and choose” mentality for dealers to a more sharply defined product assortment. “We have thousands of products that we sell two or less of each year through the entire chain.”
A greater focus on sell-through rather than just sell-in has resulted in a review of 35,000 SKUs over the past year. Despite rationalizing assortments, though, Rona remains open to, and seeks out, new and innovative products, said Blickstead.
* * * * * *
RÉNO-DÉPÔT NOT INTERESTED IN REVY, SAYS CHAIRMAN
Rumours of an imminent buyout of one of the battling big box companies in Canada persist. But scratch Réno-Dépôt off the list of possible purchasers, says company chairman Pierre Michaud.
Michaud, in Toronto the other week for the opening of the first two Building Box stores in Ontario, told Hardlines that Réno-Dépôt had considered acquiring Revy, but chose against it. “We looked and we thought about it,” said Michaud, “but we wanted to grow inside.” The focus of Réno-Dépôt’s expansion outside Québec will be organic. “We want to bring in our own people focusing on our own strategy,” he added.
Réno-Dépôt plans to open up to 15 big box stores in southern Ontario under the Building Box name within the next three years.
* * * * * *
SEARS LAUNCHES NEW TOOL CONCEPT IN U.S. MALL STORES
Sears in the U.S. is trying to capitalize on its Craftsman tool brand by expanding displays in its mall stores and adding selected national brands. Called Tool Territory, the new program is an effort by Sears to revitalize its 700-plus mall stores south of the border.
Stress is placed on the fact that most Craftsman tools are made in the U.S. However, Sears has now developed a secondary, lower-priced brand called “Companion,” which is manufactured almost entirely in China. Tool Territory will offer the range of price points through the two brands.
For a number of years Sears has advertised “the softer side of Sears.” Tool Territory is regarded as a major effort to recapture some of the male-oriented business it might have lost in that campaign.
– Thanks to Bob Vereen of Vereen & Associates for this item (wdiyc@netdirect.net)
* * * * * *
STRONG SEMINAR PROGRAM WILL BEEF UP CANADIAN HARDWARE SHOW
A more comprehensive educational program is just one of the highlights of the upcoming Canadian Hardware and Building Materials Show, held February 4-6, 2001 at the National Trade Centre in Toronto.
The show will comprise 1,500 exhibits in hardware, home improvement, home trends & décor, and seasonal product categories. The hardware and home improvement sections will constitute more than two-thirds of the show and the new product showcase will feature some 500 items.
Joe Edwards, CHS show manager, says the show’s speaker program has been expanded to include product knowledge courses and creative learning opportunities.
New product knowledge and certification courses, sponsored by the CRHA and PDRA, will complement the fair’s educational component by offering in-depth product education for dealers and store staff. Subjects will include plumbing and electrical as well as certification courses in paint, faux finishing and interior decorating.
The show’s social calendar includes the Hardlines Show Breakfast (held exclusively for subscribers and guests of Hardlines) and the Industry Gala at the Sheraton Centre Hotel, a charity event for the Easter Seals presented by the Canadian Hardware & Housewares Manufacturers Association. The CHS Awards Night will recognize the best product innovations and industry winners of the year.
For more information about the show, call: 905-821-3470. www.crha.com
COMPANIES IN THE NEWS
More than 40 product managers from the Alliance International LLC (Do it Best Corp., and Canadian companies RONA Inc. and Home Hardware Stores Ltd.) attended a training conference in Port Huron, Mich., Nov.15-17 to learn about new negotiating strategies for 2001. The conference focused on giving the product managers new approaches to using the significant clout of the Alliance International. Speakers included Bob MacDonald, vice president and principal of General Management Technologies, and Patrick Rodmell, vice president of global marketing for the Watt Group.
Ontario buying group Torbsa Ltd. has moved to 2 Marconi Court, unit 13, Bolton, ON L7E 1E5; phone: 905-857-5811, fax: 905-951-9923.
Weyerhaeuser Co.’s West Island Timberlands operations near Port Alberni have achieved certification to the Canadian Standards Association’s Sustainable Forest Management system standard. Weyerhaeuser expects to have all units third-party certified to the ISO 14001 EMS standard by 2002 and to the CSA’s Sustainable Forest Management standard by 2003.
General Paint Inc. recently opened its first Ontario store and distribution centre in Cambridge. The facility represents a first step in building a contractor and dealer network in that province. The company plans to open 3-4 more stores within the first six months of 2001, all located in secondary markets outside the GTA.
Talon Int’l Machinery Corp. has moved to 525 Southgate Drive, unit 2, Guelph, ON N1G 3W6; phone: 1-800-454-2215, fax: 519-780-1498.
CLARIFICATION: Last week we reported on ILDC’s efforts to harmonize its buying. Part of the message by general manager Andrew Battagliotti was that, while the group recognizes regional and promotional buys are occasionally necessary, it does not tolerate side deals of any kind and has a process in place by which to deal with such situations should they occur.
“A man hath no better thing under the sun than to eat, and to drink, and to be merry.” – Ecclesiastes (viii:15)
PEOPLE ON THE MOVE
Home Depot in Atlanta has appointed Robert L. Nardelli as president and CEO. Nardelli comes over from General Electric Co., where he had served since 1995 as president and CEO of GE Power Systems, a US$15-billion division of GE. Arthur Blank, Home Depot’s current president and CEO, will join Bernard Marcus as co-chairman.
An organizational shuffle at Lafarge Gypsum has resulted in a number of new appointments: Ron Craighead has assumed the role of general manager sales and marketing for Canada. He was previously director of sales and marketing – Canada … John Tibbitts has come over from the manufacturing side of the business to join Lafarge’s sales team as manager of strategic planning … Jacques Corbeil has been appointed Québec sales manager. He comes over from Cameron Ashley Building Products, where he had served as Québec sales manager … Lorraine Taylor has joined as sales administrative co-ordinator. She was previously customer service director for Westroc. (905-702-9001)
Andy Moncrieff has accepted a position as Ontario sales rep with Roland Boulanger Ltd.. Andy was formerly Ontario sales manager for Dural Division of Multibond. His new address is 29 Portal Crescent, London, Ont., N5X 2E5. (519-679-6707)
NOTED …
The International Hardware Fair/DIY’TEC will be held in Cologne, Germany, February 18-21, 2001. More than 3,800 suppliers from around the world are expected to exhibit under three theme: World Tools Centre, Security Systems Locks and Fittings, and DIY’TEC. Last year, Cologne was the meeting point for 96,000 trade visitors from 126 countries. Any retailer or vendor trying to keep up with the internationalization of companies such as Castorama and Home Depot should make a point of attending this event.
OVERHEARD…
“We’re not the brightest lights at the dance; we’re not the dullest either. We’re just ordinary people trying to do extraordinary things.” – Rick Blickstead, president of Rona Retail Canada at a recent meeting of the CHHMA, on his company’s intention to grow into a truly national company – both by expansion and acquisition.
It’s a great place to announce new lines or acquisitions, services or lines available. And of course they are an effective, low-cost way to hire new people. At just $16 per line, here’s what you get with each Marketplace Ad:
– two weeks in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes care of the Classifieds so contact her: bev@hardlinesfax.com or call her at 416-489-3396. at 416-489-3396, ext. 2, for more details.
IT’S HERE
AT LAST! EVERYTHING YOU NEED TO KNOW ABOUT THE RETAIL HOME
IMPROVEMENT MARKET IN CANADA: The Hardlines Industry Report: Home
Improvement Retailing in Canada is almost ready to ship! This
incredible book 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, but only $750 for subscribers. But call Bev right away for more
details because she’s cooked up some kind of additional price special
if your order Before December 31!!!
* * * * *
*
THE
HARDLINES SHOW BREAKFAST AT CHS: Mark February 4, 2001 on your
calendar. That’s the date of our Sixth Annual FREE Hardlines
Breakfast at the Canadian Hardware and Building Materials Show, held
exclusively for Hardlines subscribers and friends! (Yes, I know, it’s
very, very early in the morning, but there’s no better way to kick
off the Show!) – Michael
* * * * *
*
THE
HARDLINES MARKETPLACE It’s a great place to announce new lines or
acquisitions, services or lines available. And of course they are an
effective, low-cost way to hire new people. At just $16 per line,
here’s what you get with each Marketplace Ad:
– two weeks
in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Bev takes
care of the Classifieds so contact her: bev@hardlinesfax.com
or call her at 416-489-3396.
CANADIAN TIRE GETS ONLINE IN TIME FOR
CHRISTMAS
Canadian
Tire Corp. got into the online shopping game last week just in time
for the Christmas season. And that gift market, says CEO Wayne Sales,
is the one being targetted, at least for now, by the company that
already has the bricks and mortar within 15 minutes of 91% of
Canadians.
But Sales
also anticipates that online browsers will be drawn into the stores
themselves to make the final purchase. “For every dollar spent
online, another seven dollars will be spent in the store,” was the
mantra of a press conference Sales appeared at last week ¯ and a
large part of the argument that convinced the dealers themselves to
get onside ¯ and help pay for ¯ the online
initiative.
The need to
gain dealer support was considered one of the road blocks to CTC ‘s
e-retailing initiative, but Sales pointed out that the time is now
right as Canadians have displayed their desire to “shop Canadian”
online. He pointed out that 59% of Canadians have recently made a
purchase online, while 89% said they have looked for a Canadian
website when shopping.
The company
spent upwards of $15 million researching online strategies before
this year, admitted Sales. The final strategy cost $21 million in
total to implement, he said. While no profit targets were disclosed,
he considers the project a long-term one, expecting that up to 4-5%
of Canadian Tire’s sales, or $200 million, will be realized
online.
Mark Foote,
president of Canadian Tire Retail, said promotion of the online
shopping site will be tied into existing “bricks and mortar”
advertising. Cross-promotions and sponsorships with other Internet
sites will also be developed, including Canoe and TSN Online. “It’s
important to guard the brand and the trust Canadians have placed in
the Canadian Tire name,” he said.
About 5,500
products have been put online initially. The emphasis will be on
seasonal, starting with Christmas, and Foote said shoppers will be
able to find more of these types of products online than in the
stores. Fulfilment has been outsourced to a third-party distributor,
Kuhne & Nagle, that has warehousing of its own close to CTC’s
Brampton distribution centre. Deliveries will be made using either
Purolator for 1-2 day delivery or Canada Post Express Ship for 3-5
day delivery.
Foote was
asked what costs for the site would be transferred to the vendors.
However, he declined to comment. A number of vendors report that they
are “just waiting” to find out what charges, if any, will be passed
on to them.
The site is
cleverly designed, making it easy for browsers to shop by their
choice of project, product category, gift idea or by price (ie.,
“Gifts under $10, Gifts under 25”, etc.). Each section presents
detailed product specs and includes “featured products.” Shoppers can
even get their orders giftwrapped for an additional $5.
* * * * *
*
TSC
STORES SOLD TO MANAGEMENT
Ontario farm
and hardware chain TSC Stores has been sold to senior management.
Co-owners Murray Cummings and David Street, president and
vice-president respectively, have been involved in the company for
about three decades, and owned it for the past 14 years. Originally
tied to Tractor Supply in the U.S., the company is completely
unaffiliated now, except for membership in the Mutual buying
group.
Under
Cummings and Street, London, ON-based TSC has grown to 17 stores
throughout Central Ontario and 1999 sales of $60 million. Cummings
will stay on until December 22, while Street will remain in a
buying/consulting capacity for an undetermined time.
have passed
the company along to Roy Carter, vice-president, finance and
administration, who takes over the president’s role. John Kropp,
formerly controller, has moved into Carter’s position, while Gord
Illes has moved from his role as vice-president, store operations to
become vp merchandising.
“These guys
are intent on taking TSC to the next level,” says Street. “They want
to grow it from 17 stores to 25 in the next three years and focus on
getting the warehouse more fully automated.”
* * * * *
*
COMPANIES IN THE NEWS
The Building
Box, Réno-Dépôt’s banner in Ontario, will finally
open two stores this Wednesday. One is Cambridge and the other in
Scarborough, ON. The company had originally intended to have four
stores open in the GTA by year’s end. I’ll have more to report when I
check out the openings. The next two stores are slated to open in
Kitchener and London, ON by next fall.
RONA Inc.
reported consolidated sales for the third quarter of $351.7 million,
a 36.8% increase over $257.1 million for the same period in 1999. The
increase was attributed primarily to the growth of RONA’s big box
stores and to the acquisition of Cashway Building Centres Ltd. For
the nine month period, consolidated sales totalled $1 billion, up
32.5% over the $762.1 million posted a year earlier. This increase
was due primarily to the acquisition of Cashway in March 2000. Net
earnings for the third quarter were $5 million, an increase of 29.8%
over $3.9 million a year earlier. Net earnings for the first nine
months of the year totalled $15.1 million, up 26.1% over the first
nine months of the previous year.
Castle
Building Centres Group has added the following new members: Angileri
Lumber, Amherstburg, ON, Maureen (Mo) Bellefleur; G&H Home
Specialties Inc., Marystown, NF., Gus Baker; Hearst Co-op, Hearst,
ON, Herman Morin; Lakeside Castle Building Centre, Red Deer, AB, Art
Anastasi; Newcastle Floors, Doors & More, Surrey, BC, Brad
Newell; Pickard Lumber & Building Supplies Ltd., Simcoe, ON,
Wally Pickard.
Sear’s
relaunched Eatons on Saturday with the opening of seven Eatons stores
across Canada. They are located in Toronto, Ottawa, Winnipeg,
Calgary, Vancouver and Victoria represent a total of 2.5 million
sq.ft. While the emphasis is on fashion, there is also an “e home”
environment in all seven stores, that offers merchandise specifically
geared toward the urban consumer. (More on this in a future issue
¯ I’ll have to get in and have a peek ¯ MM.)
Hudson’s Bay
Co. introduced its own online shopping service last week
(www.hbc.com). The site is the online shopping partner of both the
Bay and Zellers, offering a range of products, including home
décor, toys, cosmetics, baby needs, intimate apparel and
gifts. The assortment is based on, but not limited to, the Bay and
Zellers’ current in-store offerings and will expand over time. The
online service will take orders from around the world and deliver
across Canada.
Home Depot
Inc. remains confident it will have 23%-25% growth in earnings per
share for fiscal 2001. The company also expects to have same-store
sales for fiscal 2001 of 3%-4%. Home Depot’s year end is January 31.
It expects to open 2,300 stores by 2004 and 18 Expo stores in fiscal
2001, bringing the total to 44 stores. Home Depot currently operates
1,081 stores worldwide.
“No animal
ever invented anything so bad as drunkenness ¯ or so good as
drink.” ¯ G.K. Chesterton (1874-1936)
PEOPLE ON THE MOVE
Kevin MacRae
joins Philips Lighting as central region account manager,
consumer/automotive, effective December 4. He will be in charge of
growing key accounts in Ontario. MacRae was formerly with Melnor
Canada as national sales manager. (416-292-3000)
MARKET INDICATORS
Retail trade
was up 0.4% from August to September, says Stats Canada. Retailers
sold $23.5 billion worth of goods in August, which in constant
dollars represents relatively no change from the previous month.
Retail sales have been rising for five straight months, although
gains were weaker in August and September. Year over year,
September’s sales are 6.0% higher than September ’99. Strongest
increases were in Alberta (+1.1%) and Ontario (+0.6%). Provinces with
declines were Newfoundland (-0.7%), Saskatchewan (-0.6%) and Manitoba
(-0.4%). The other provinces remained virtually unchanged.
Wholesale
trade fell for the second consecutive month in September, down 0.9%
from August to $31.6 billion. Although hardware, metals, plumbing and
heating had a 1.9% increase in September over August, the sector fell
for the third quarter by 0.6%, following a 0.7% drop in the second
quarter. Lumber and building materials fell 1.6%, its fourth monthly
decline, with the third quarter down 0.8% from the previous quarter.
Despite generally strong demand, sales were affected by falling
lumber prices. Meanwhile, inventories in September rose 0.5% over
August.
It’s a great
place to announce new lines or acquisitions, services or lines
available. And of course they are an effective, low-cost way to hire
new people. At just $16 per line, here’s what you get with each
Marketplace Ad:
– two weeks
in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes
care of the Classifieds so contact her: bev@hardlinesfax.com
or call her at 416-489-3396. at 416-489-3396, ext. 2, for more
details.
IT’S HERE
AT LAST! EVERYTHING YOU NEED TO KNOW ABOUT THE RETAIL HOME
IMPROVEMENT MARKET IN CANADA: The Hardlines Industry Report: Home
Improvement Retailing in Canada is almost ready to ship! This
incredible book 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, but only $750 for subscribers. But call Bev right away for more
details because she’s cooked up some kind of additional price special
if your order Before December 31!!!
* * * * *
*
THE
HARDLINES SHOW BREAKFAST AT CHS: Mark February 4, 2001 on your
calendar. That’s the date of our Sixth Annual FREE Hardlines
Breakfast at the Canadian Hardware and Building Materials Show, held
exclusively for Hardlines subscribers and friends! (Yes, I know, it’s
very, very early in the morning, but there’s no better way to kick
off the Show!) – Michael
* * * * *
*
THE
HARDLINES MARKETPLACE It’s a great place to announce new lines or
acquisitions, services or lines available. And of course they are an
effective, low-cost way to hire new people. At just $16 per line,
here’s what you get with each Marketplace Ad:
– two weeks
in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Bev takes
care of the Classifieds so contact her: bev@hardlinesfax.com
or call her at 416-489-3396.
CANADIAN TIRE GETS ONLINE IN TIME FOR
CHRISTMAS
Canadian
Tire Corp. got into the online shopping game last week just in time
for the Christmas season. And that gift market, says CEO Wayne Sales,
is the one being targetted, at least for now, by the company that
already has the bricks and mortar within 15 minutes of 91% of
Canadians.
But Sales
also anticipates that online browsers will be drawn into the stores
themselves to make the final purchase. “For every dollar spent
online, another seven dollars will be spent in the store,” was the
mantra of a press conference Sales appeared at last week ¯ and a
large part of the argument that convinced the dealers themselves to
get onside ¯ and help pay for ¯ the online
initiative.
The need to
gain dealer support was considered one of the road blocks to CTC ‘s
e-retailing initiative, but Sales pointed out that the time is now
right as Canadians have displayed their desire to “shop Canadian”
online. He pointed out that 59% of Canadians have recently made a
purchase online, while 89% said they have looked for a Canadian
website when shopping.
The company
spent upwards of $15 million researching online strategies before
this year, admitted Sales. The final strategy cost $21 million in
total to implement, he said. While no profit targets were disclosed,
he considers the project a long-term one, expecting that up to 4-5%
of Canadian Tire’s sales, or $200 million, will be realized
online.
Mark Foote,
president of Canadian Tire Retail, said promotion of the online
shopping site will be tied into existing “bricks and mortar”
advertising. Cross-promotions and sponsorships with other Internet
sites will also be developed, including Canoe and TSN Online. “It’s
important to guard the brand and the trust Canadians have placed in
the Canadian Tire name,” he said.
About 5,500
products have been put online initially. The emphasis will be on
seasonal, starting with Christmas, and Foote said shoppers will be
able to find more of these types of products online than in the
stores. Fulfilment has been outsourced to a third-party distributor,
Kuhne & Nagle, that has warehousing of its own close to CTC’s
Brampton distribution centre. Deliveries will be made using either
Purolator for 1-2 day delivery or Canada Post Express Ship for 3-5
day delivery.
Foote was
asked what costs for the site would be transferred to the vendors.
However, he declined to comment. A number of vendors report that they
are “just waiting” to find out what charges, if any, will be passed
on to them.
The site is
cleverly designed, making it easy for browsers to shop by their
choice of project, product category, gift idea or by price (ie.,
“Gifts under $10, Gifts under 25”, etc.). Each section presents
detailed product specs and includes “featured products.” Shoppers can
even get their orders giftwrapped for an additional $5.
* * * * *
*
TSC
STORES SOLD TO MANAGEMENT
Ontario farm
and hardware chain TSC Stores has been sold to senior management.
Co-owners Murray Cummings and David Street, president and
vice-president respectively, have been involved in the company for
about three decades, and owned it for the past 14 years. Originally
tied to Tractor Supply in the U.S., the company is completely
unaffiliated now, except for membership in the Mutual buying
group.
Under
Cummings and Street, London, ON-based TSC has grown to 17 stores
throughout Central Ontario and 1999 sales of $60 million. Cummings
will stay on until December 22, while Street will remain in a
buying/consulting capacity for an undetermined time.
have passed
the company along to Roy Carter, vice-president, finance and
administration, who takes over the president’s role. John Kropp,
formerly controller, has moved into Carter’s position, while Gord
Illes has moved from his role as vice-president, store operations to
become vp merchandising.
“These guys
are intent on taking TSC to the next level,” says Street. “They want
to grow it from 17 stores to 25 in the next three years and focus on
getting the warehouse more fully automated.”
* * * * *
*
COMPANIES IN THE NEWS
The Building
Box, Réno-Dépôt’s banner in Ontario, will finally
open two stores this Wednesday. One is Cambridge and the other in
Scarborough, ON. The company had originally intended to have four
stores open in the GTA by year’s end. I’ll have more to report when I
check out the openings. The next two stores are slated to open in
Kitchener and London, ON by next fall.
RONA Inc.
reported consolidated sales for the third quarter of $351.7 million,
a 36.8% increase over $257.1 million for the same period in 1999. The
increase was attributed primarily to the growth of RONA’s big box
stores and to the acquisition of Cashway Building Centres Ltd. For
the nine month period, consolidated sales totalled $1 billion, up
32.5% over the $762.1 million posted a year earlier. This increase
was due primarily to the acquisition of Cashway in March 2000. Net
earnings for the third quarter were $5 million, an increase of 29.8%
over $3.9 million a year earlier. Net earnings for the first nine
months of the year totalled $15.1 million, up 26.1% over the first
nine months of the previous year.
Castle
Building Centres Group has added the following new members: Angileri
Lumber, Amherstburg, ON, Maureen (Mo) Bellefleur; G&H Home
Specialties Inc., Marystown, NF., Gus Baker; Hearst Co-op, Hearst,
ON, Herman Morin; Lakeside Castle Building Centre, Red Deer, AB, Art
Anastasi; Newcastle Floors, Doors & More, Surrey, BC, Brad
Newell; Pickard Lumber & Building Supplies Ltd., Simcoe, ON,
Wally Pickard.
Sear’s
relaunched Eatons on Saturday with the opening of seven Eatons stores
across Canada. They are located in Toronto, Ottawa, Winnipeg,
Calgary, Vancouver and Victoria represent a total of 2.5 million
sq.ft. While the emphasis is on fashion, there is also an “e home”
environment in all seven stores, that offers merchandise specifically
geared toward the urban consumer. (More on this in a future issue
¯ I’ll have to get in and have a peek ¯ MM.)
Hudson’s Bay
Co. introduced its own online shopping service last week
(www.hbc.com). The site is the online shopping partner of both the
Bay and Zellers, offering a range of products, including home
décor, toys, cosmetics, baby needs, intimate apparel and
gifts. The assortment is based on, but not limited to, the Bay and
Zellers’ current in-store offerings and will expand over time. The
online service will take orders from around the world and deliver
across Canada.
Home Depot
Inc. remains confident it will have 23%-25% growth in earnings per
share for fiscal 2001. The company also expects to have same-store
sales for fiscal 2001 of 3%-4%. Home Depot’s year end is January 31.
It expects to open 2,300 stores by 2004 and 18 Expo stores in fiscal
2001, bringing the total to 44 stores. Home Depot currently operates
1,081 stores worldwide.
“No animal
ever invented anything so bad as drunkenness ¯ or so good as
drink.” ¯ G.K. Chesterton (1874-1936)
PEOPLE ON THE MOVE
Kevin MacRae
joins Philips Lighting as central region account manager,
consumer/automotive, effective December 4. He will be in charge of
growing key accounts in Ontario. MacRae was formerly with Melnor
Canada as national sales manager. (416-292-3000)
MARKET INDICATORS
Retail trade
was up 0.4% from August to September, says Stats Canada. Retailers
sold $23.5 billion worth of goods in August, which in constant
dollars represents relatively no change from the previous month.
Retail sales have been rising for five straight months, although
gains were weaker in August and September. Year over year,
September’s sales are 6.0% higher than September ’99. Strongest
increases were in Alberta (+1.1%) and Ontario (+0.6%). Provinces with
declines were Newfoundland (-0.7%), Saskatchewan (-0.6%) and Manitoba
(-0.4%). The other provinces remained virtually unchanged.
Wholesale
trade fell for the second consecutive month in September, down 0.9%
from August to $31.6 billion. Although hardware, metals, plumbing and
heating had a 1.9% increase in September over August, the sector fell
for the third quarter by 0.6%, following a 0.7% drop in the second
quarter. Lumber and building materials fell 1.6%, its fourth monthly
decline, with the third quarter down 0.8% from the previous quarter.
Despite generally strong demand, sales were affected by falling
lumber prices. Meanwhile, inventories in September rose 0.5% over
August.
It’s a great
place to announce new lines or acquisitions, services or lines
available. And of course they are an effective, low-cost way to hire
new people. At just $16 per line, here’s what you get with each
Marketplace Ad:
– two weeks
in the fax version
– three weeks in the email version
– posted on our website for three weeks
– your ad read by more than 3,000 people every single week
– thousands of hits on our Website!
– our boundless thanks for your support of Hardlines!
Beverly takes
care of the Classifieds so contact her: bev@hardlinesfax.com
or call her at 416-489-3396. at 416-489-3396, ext. 2, for more
details.
