Sept18_00

HARDLINES™
Five years serving Canada’s home improvement industry
September 18, 2000 – Volume vi, #35
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* IN THIS ISSUE:
* Family values, social conscience, big themes at Hardlines Conference
* Building Box partners with HSC for installed sales
* Home Depot president: expect EXPO here soon
* LBMAO partners with U.S. lumbermen’s association
* Building permits remain flat in July
* * * * * *

CONFERENCE 2000: WHAT A TIME WE HAD! This year’s Hardlines Marketing Conference was fabulous – with almost 200 people there! We’ll continue our report on the conference in the next issue.

My thanks to our sponsors:

Black Eagle Consulting
Cologne International Trade Shows
Hardware Merchandising/Canadian Contractor
JDA Intactix
LBMX
Online Direct
Power Packaging
RONA Inc.
Sterling Commerce
Union Gas
The Watt Group
Wolf Gugler & Associates

* * * * * *

HARDLINES WHO’S WHO 2000-2001 EDITION: Guide to Canada’s leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops, with more than 100 listings featuring buyers etc. Order online or call us at 416-489-3396.

HARDLINES CONFERENCE: REINVENTING RETAIL

Emerging retail trends and the importance of articulating a defining business vision were the focus of the 5th annual Hardlines Marketing Conference, held last week in Toronto. Featuring Annette Vershuren and Eric Petersen of Home Depot Canada, as keynote speakers, the one-day symposium drew more than 200 retailers and vendors from the North American hardware and home improvement industry. Here are some highlights …

CUSTOMER ANALYSIS:

Retail analyst Sid Doolittle, of McMillan/Doolittle in Chicago, described how three main consumer groups – mature, boomers and Generation Xers, influence the current retail scene. An aging population and shifts in the traditional family structure will affect the types of products and services available and the environments in which they’re purchased. Income levels will continue to affect spending habits.

The fact that the income of the top 20% of U.S. wage earners has increased significantly while the other 80% has been flat over the last 25 years accounts for the growth of stores like Wal-Mart and Costco, where prices drives everything, and of high-end niche “logo” markets.

Ethnic populations will see big growth. These demographic shifts will affect all sectors of the retail market. And because the new generation of consumers will be tech savvy, they represent enormous potential for on-line shopping.

Doolittle sorts successful retailers into “EST” categories; Cheap-est (Wal-Mart, Costco), Hot-est (Gap, Starbucks), Big-est (Home Depot), Easy-est (Nordstrom, Land’s End), and Quick-est (McDonald’s, Walgreen’s).

He also suggested that retailers must pay more attention to making the consumer’s shopping experience convenient and efficient. Some retailers, he said, have sacrificed the consumer’s convenience for their own. Customer convenience and “no-barrier” shopping will be the buzzwords of the coming decade, Doolittle predicts.

Internet retailing, he says, is still an unproven financial model, and will depend on how issues of consumer trust and distribution logistics play out. There’s still speculation about the degree to which on-line shopping will encourage impulse sales.

FAMILY VALUES:

Don Neufeld doesn’t open his stores on Sundays. In fact, the Saskatoon retailer publicizes this fact in all the advertising for the two-store chain, J&H Builder’s Warehouse. It started when news got out that Home Depot would open stores in Saskatoon. After researching other retailers on the Internet, Neufeld chose a slogan that would position his stores against the new competition: “Closed on Sundays – we spend our Sundays building family values.”

Other business leaders balked at the idea, but not only has it paid off, community and church groups quickly applauded the move. Customers line up to proclaim their loyalty to a company that puts family – and the health of the community – ahead of profits.

Closing on Sundays is just one of many ways Neufeld has strived to create a humane, supportive work environment. For example, employees are given one week paid leave each year to work with the charity of their choice. It increases their sense of commitment to the community and allows them to grow as individuals which, he says, makes for a better employee.

COMPETITIVE INTELLIGENCE:

Though short on cloak and dagger, the breakout session on competitive intelligence was packed with suggestions for using information as the foundation for long-range planning and short-term, competitive strategies.

Playing to a packed room, David Lithwick of Market Alert explained how to dig up information from the public domain and how to follow ethical guidelines when conducting those searches.

Rather than hiring an expert to do competitive intelligence, Lithwick encourages executives to look within their organization for existing sources of information, including professional associations, newsletters, websites, libraries and government departments.

Gathering information, says Mr. Lithwick, is relatively easy. Deciding which information to use and how to apply it is a more challenging task. He suggests creating a simple template to define your business objectives and determine the information that’s critical to those goals.

NEXT WEEK: ANNETTE VERSCHUREN, HOME DEPOT, AOV CANADA, GARDENING WITH HEART, POWER PACKED BRANDING AND MORE!

BUILDING BOX TO OUTSOURCE INSTALLED SALES

The Building Box has formed a partnership with Home Service Club to offer installed sales in its stores. Each of the new stores will be outfitted with service counter offering “HSC Installed Sales.” The counters will be right at the front of the store, beside the customer service and returns desks. Banners and POP throughout the store will remind customers of the installed option.

Building Box customers will get three quotes on each job, and they will have access to Homeservice Club’s 24 hour emergency service. HSC already works with some 300 trades throughout the GTA, but to service other regions, the company is will have contractor recruitment events. The first will be this Thursday in Cambridge, ON.

Paul Crocker, formerly executive director of I.L.D.C., has been hired to coordinate contractor recruitment.

The first three Building Box stores are slated to open late November in Cambridge, Scarborough and Brampton, ON. A site in Mississauga at Highway 401 and Winston Churchill Rd. is scheduled to open by mid-March 2001.

* * * * * *

ALLIANCE INTERNATIONAL ADDS FRENCH ITM AS A MEMBER

Alliance International LLC (Home Hardware, RONA and Do-it Best Corp.) has added a new member: Bricomarché, the French co-op of building centres that is a division of ITM. ITM in turn owns one-sixth of RONA.

The first category under review is alkaline batteries, which have the same manufacturing standards in Europe and North America.

Members have further agreed to develop a business-to-business (B2B) e-commerce website. It will be used to improve communications and reduce costs of transactions between members and their suppliers, says Greg Thomas, executive director of the Alliance. The system will enable members to place orders either from their respective warehouses or directly from the vendor.

The Alliance is also attempting to increase its collective leverage with its suppliers, so those whose contracts come due this year will find the bar raised as the Alliance seeks to obtain better pricing and service levels.

COMPANIES IN THE NEWS

Home Depot Canada will accelerate the entry of new formats into this country. EXPO and Villager’s Hardware were originally expected to arrive here within two or three years. But speaking at our conference last week, Home Depot Canada president Annette Verschuren said the large-size EXPO Design Centres “will be in Toronto very soon.”

Sexton Group Ltd. has added the following new members: T.C. Building Materials, Winnipeg; T.T.’s True Value Hardware, Leaf Rapids, MB; Watson Paint Centre, Port Alberni, BC; Double Diamond Enterprises, Milden, SK; Crofton Hardware, Crofton, BC; Lumber One & Hardware Too, Carstairs, AB; B.H.L. Building Supplies, Sylvan Lake, AB; Rosthern Valley Lumber, Rosthern, SK.

The Lumber and Building Materials Association of Ontario (LBMAO) has formed a strategic alliance with the National Lumber and Building Material Dealers Association, which is headquartered in Texas. The purpose of the alliance is create some synergies between the two organizations, especially in the areas of future support of e-commerce initiatives, cross promotions and access to member benefits. The arrangement will not affect the LBMAO’s association with CHS.

CANADIAN STOCK WATCH

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

Canadian Tire	37.35	18.40	20.40
Canfor	19.80	10.35	10.30
Goodfellow	12.55	8.75	9.60
Home Depot	70.00	39.37	54 ^1/4
Hudsons Bay	21.65	12.50	15.80
Lowe’s Cos.	67.25	40.37	43 ^3/16
Sears Canada	42.50	30.75	32.40
Taiga Forest	14.20	6.80	8.75
West Fraser	39.50	27.00	28.60

“Be not afraid.” – Matthew, xiv:27

PEOPLE ON THE MOVE

Mary Agar has been promoted within the sales and marketing department at Plastmo Ltd. to the position of sales Manager, Canada (vinyl rain gutters). (905-793-9462)

At Camco Inc., Neil G. Gartshore has been appointed CFO and vice-president finance, effectively immediately. Most recently, he was Camco’s general manager, builder sales. He succeeds M. James Evans, who was promoted to senior vice-president, e-business, earlier this year. (905-521-3128)

Jack Kurilla has taken over at Moulinex Canada as general manager. Formerly in charge of international accounts, he replaces Eric Roberts. (905-669-0114)

NOTED…

“In the past, big retailers didn’t go into appliance sales because customers expected the large products to be delivered and installed. This was a major expenditure in equipment and manpower. But first Home Depot, and now Wal-Mart, are selling majors without in-house delivery services.”

– Rob Philips, a spokesperson for Wal-Mart in the U.S., on that company’s entry into white goods sales.

MARKET INDICATORS

Housing starts in Canada fell 11.8% to 146,000 units seasonally adjusted in August, compared with 165,600 in July, according to CMHC. Urban singles starts were down 4.7% to 72,700 units, compared with 76,300 in July. Urban multiples starts were down 23.4% to 52,300 units in August, compared with 68,300 in July.

In Québec, urban starts were up 8.9% to 23,300 units, from 21,400 in July. Singles were up 31.3% while multiples were down 9.3%. Montréal starts increased 16.4% from July, to 15,600 units.

The Prairies were flat (very funny – Editor) with 23,600 urban starts in August, the same as July. This was mainly due to a 21.9% increase in multiples, partially offset by a 10.4% decrease in singles. In the Atlantic region, urban starts were down 4.1% to 7,100 units. Nova Scotia and Prince Edward Island were up; New Brunswick and Newfoundland decreased.

British Columbia had 8,900 urban starts last month, down 21.2%. Singles were down 4.9% and multiples were down 40.4%. Vancouver starts were down 10.9% to 5,700. In Ontario, urban starts were down 23.1% to 62,100 units in August. The decrease was due to a 36.5% down in multiples and a 9.0% down in singles. Toronto starts were down 35.3% from July to 36,100 units.

WHY HARDLINES SUPPORTS THE WOMEN’S CONSUMER PRODUCTS NETWORK

Given the growing number of women in this industry, we are delighted there is finally a forum for them to meet and exchange ideas and insights. Anyone in hardware/housewares/packaged goods or related industries would benefit from checking out this organization.

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

For more information, please call: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, website:www.wcpncanada.org

(Hardlines is proud to be a sponsor of the WCPN)

Hardlines Marketplace

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

* * * * * * *

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

Michael McLarney, Editor & Publisher (extension 1):
mike@hardlinesfax.com

Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com

Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

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

Check out our incredible Classifieds section!

CONFERENCE 2000: WHAT A TIME WE HAD! This year’s Hardlines Marketing Conference was fabulous – with almost 200 people there! We’ll continue our report on the conference in the next issue.

My thanks to our sponsors:

* * * * * *

HARDLINES CONFERENCE: REINVENTING RETAIL

CUSTOMER ANALYSIS:

FAMILY VALUES:

COMPETITIVE INTELLIGENCE:

Playing to a packed room, David Lithwick of Market Alert explained how to dig up information from the public domain and how to follow ethical guidelines when conducting those searches.

NEXT WEEK: ANNETTE VERSCHUREN, HOME DEPOT, AOV CANADA, GARDENING WITH HEART, POWER PACKED BRANDING AND MORE!

BUILDING BOX TO OUTSOURCE INSTALLED SALES

Paul Crocker, formerly executive director of I.L.D.C., has been hired to coordinate contractor recruitment.

* * * * * *

ALLIANCE INTERNATIONAL ADDS FRENCH ITM AS A MEMBER

The first category under review is alkaline batteries, which have the same manufacturing standards in Europe and North America.

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

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

Canadian Tire	37.35	18.40	20.40
Canfor	19.80	10.35	10.30
Goodfellow	12.55	8.75	9.60
Home Depot	70.00	39.37	54 ^1/4
Hudsons Bay	21.65	12.50	15.80
Lowe’s Cos.	67.25	40.37	43 ^3/16
Sears Canada	42.50	30.75	32.40
Taiga Forest	14.20	6.80	8.75
West Fraser	39.50	27.00	28.60

“Be not afraid.” – Matthew, xiv:27

PEOPLE ON THE MOVE

Mary Agar has been promoted within the sales and marketing department at Plastmo Ltd. to the position of sales Manager, Canada (vinyl rain gutters). (905-793-9462)

Jack Kurilla has taken over at Moulinex Canada as general manager. Formerly in charge of international accounts, he replaces Eric Roberts. (905-669-0114)

NOTED…

– Rob Philips, a spokesperson for Wal-Mart in the U.S., on that company’s entry into white goods sales.

MARKET INDICATORS

In Québec, urban starts were up 8.9% to 23,300 units, from 21,400 in July. Singles were up 31.3% while multiples were down 9.3%. Montréal starts increased 16.4% from July, to 15,600 units.

WHY HARDLINES SUPPORTS THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

For more information, please call: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, website:www.wcpncanada.org

(Hardlines is proud to be a sponsor of the WCPN)

Hardlines Marketplace

* * * * * * *

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

Michael McLarney, Editor & Publisher (extension 1):
mike@hardlinesfax.com

Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com

Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Sept11_00

HARDLINES™
Five years serving Canada’s home improvement industry
September 11, 2000 – Volume vi, #34
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* IN THIS ISSUE:
* Sodisco-Howden strikes supply deal with Co-op Atlantic
* Head of Wal-Mart Canada will take over European operations
* AWARD dealers mix education with rebates
* Home Depot picks up two more plum Toronto sites
* Building permits remain flat in July
* * * * * *

RECORD ATTENDANCE AT THIS YEAR’S CONFERENCE: I am absolutely blown away by the response we’re getting to this year’s conference on September 14. We have almost 200 people coming! And don’t forget, this year’s Hardlines Marketing Conference will conclude with a mix-and-mingle cocktail reception, thanks to the sponsorship of Cologne International Trade Shows. So stick around and have a drink and some jumbo shrimp on us!

MY THANKS UP FRONT TO ALL OUR SPONSORS FOR THE CONFERENCE, INCLUDING A BRAND NEW ONE – ONLINE DIRECT:

* * * * * *

HARDLINES ON THE ROAD: We’ve been getting out and talking to dealers across the country lately. Beverly Allen, our tireless marketing manager, went up to Barrie, Ont., to Can-Save’s amazing annual customer appreciation day. She made a presentation to dealers on competing alongside the big boxes. Yours truly headed off the following week to Moncton and Terra Nova Nfld., to talk to AWARD dealers about what the arrival of big boxes will mean to their markets. We had a blast! – Michael

* * * * * *

SODISCO-HOWDEN TO SUPPLY CO-OP ATLANTIC

Sodisco-Howden Group continues to consolidate its position in Atlantic Canada with a new deal to supply hardware to Co-op Atlantic. The Moncton based wholesaler supplies 125 co-ops in all four Atlantic provinces, half of them in New Brunswick. But it decided to focus on grocery and soft goods, leaving the hard-lines to an outside supplier.

Tony Molluso, president and CEO of Sodisco-Howden, expects the deal to be worth at least $5 million in sales to his company at the outset, with the focus on plumbing, electrical, tools, HVAC and building materials.

Depending on the location of the Co-op customers, they will will be serviced from either the Sodisco division in Victoriaville, Qué., or the Howden division in London, Ont.

The deal continues Sodisco-Howden’s efforts to fill in the gap left by Thornes when that wholesaler stopped supplying retailers a year ago. Another company to move into that market was Weber Supply, which was later purchased by Sodisco-Howden. Weber had its own four-man sales force down east, including former Thornes people. The sales team was picked up by Sodisco- Howden in its acqusition of Weber’s retail assets.

* * * * * *

AWARD DEALERS MIX NEW PROGRAMS WITH REBATES

Summer meetings of the Atlantic buying group AWARD added education and new program introductions to the ritual of handing out rebate cheques. Held in Moncton and Newfoundland, the meetings were a forum for the distribution of rebates “based on increased levels of loyalty,” the result of the group’s push to engender greater unity in buying from preferred suppliers, says Tom Smith, president of AWARD.

Among the programs introduced was a new installed sales program that includes financing by TD Financial Services, which supports instore financing. Dealers were also subjected to a presentation on the impact of big boxes by Michael McLarney, editor and publisher, etc., etc.

COMPANIES IN THE NEWS

As real estate wars continue among the big boxes, Home Depot Canada has secured a prime piece of Toronto real estate with its acquisition of a commercial parcel in Leaside, in the city’s east end. The store is scheduled to open in late spring of next year. Another site, at Caledonia and Castlefield, is scheduled to open at about the same time.

Canadian Tire customers can now earn Canadian Tire money electronically on their Canadian Tire credit cards. They’ll also get 20% more money than if they paid by cash, debit card or cheque. Users of the Canadian Tire MasterCard will also be able to accumulate Canadian Tire money on that card at other stores around the world.

Ipex Homerite Products received first prize at the AHMA’s Merchandising Awards Expo last month at the National Hardware Show. The prize was awarded in the packaging category.

PartSource, Canadian Tire’s stand-alone automotive parts concept, has announced plans to open five stores in Edmonton. The first one opened on September 5 and the second one opens tomorrow. Two of the stores will replace Auto Village stores, part of the Auto Village/Drivers chain that was bought up by Canadian Tire earlier this year. The staff from those stores have been moved into the new PartSource locations. This will give the chain a total of 17 stores, with seven remaining Auto Source and Drivers stores, which will all be brought under the PartSource name over time.

Restoration Hardware is looking for additional sources of credit and financing. It has also hired an investment bank to provide advice on strategic alternatives. Its upscale lifestyle niche was watched with keen interest when it first gained prominence. But its sales and profitability have been less than stellar over the past year.

CANADIAN STOCK WATCH

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

Canadian Tire	37.35	18.40	19.80
Canfor	19.80	10.35	10.95
Goodfellow	12.55	8.75	9.60
Home Depot	70.00	39.37	52 ^15/16
Hudsons Bay	21.65	12.50	15.75
Lowe’s Cos.	67.25	40.37	51 ^7/8
Sears Canada	42.50	30.75	32.50
Taiga Forest	14.20	6.80	9.00
West Fraser	39.50	27.00	28.90

“Writing, like life itself, is a voyage of discovery.” – Henry Miller

PEOPLE ON THE MOVE

Rick Bobroske has joined Power Packaging as a partner in the company and vice-president of sales. He was most recently at National Manufacturing in a sales management capacity. (604-523- 1804)

Dave Ferguson, formerly head of Wal-Mart Canada, has been named president & CEO of Wal-Mart’s European operations. He replaces Allan Leighton, who is stepping down after spearheading the integration of Wal-Mart and Asda in Europe. Ferguson, 51, spent 4* years at Wal-Mart Canada and was recently named distinguished retailer of the year by the Retail Council of Canada … Mario Pilozzi has been promoted to COO of Wal-Mart Canada. He most recently served as senior vice-president, merchandise and sales … Hani Zayadi has been promoted to senior vice president of merchandising, replacing Pilozzi. (905-821-2111)

NOTED…

– Rob Philips, a spokesperson for Wal-Mart in the U.S., on that company’s entry into white goods sales.

MARKET INDICATORS

The value of building permits remained flat from June to July, says Stats Canada, at $3.1 billion. (However, this follows a jump of 7.2% from May to June.) Residential permits decreased 1.6% to $1.7 billion, thanks mainly to a decline in plans for multi-family dwellings. Year to date, housing intentions were up 6.2 % over the same period in 1999.

Canadian department store sales increased 2.6% from June to July, says Stats Canada. They totalled $1.58 billion seasonally adjusted. Advances in June and July pushed sales to just 0.4% below the level in August 1999, when the industry felt the impact of Eaton’s closing.

WHY HARDLINES SUPPORTS THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

For more information, please call: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, website:www.wcpncanada.org

(Hardlines is proud to be a sponsor of the WCPN)

Hardlines Classifieds

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

* * * * * * *

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

Michael McLarney, Editor & Publisher (extension 1):
mike@hardlinesfax.com

Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com

Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Check out our incredible Classifieds section!

MY THANKS UP FRONT TO ALL OUR SPONSORS FOR THE CONFERENCE, INCLUDING A BRAND NEW ONE – ONLINE DIRECT:

* * * * * *

SODISCO-HOWDEN TO SUPPLY CO-OP ATLANTIC

Depending on the location of the Co-op customers, they will will be serviced from either the Sodisco division in Victoriaville, Qué., or the Howden division in London, Ont.

* * * * * *

AWARD DEALERS MIX NEW PROGRAMS WITH REBATES

COMPANIES IN THE NEWS

Ipex Homerite Products received first prize at the AHMA’s Merchandising Awards Expo last month at the National Hardware Show. The prize was awarded in the packaging category.

CANADIAN STOCK WATCH

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

Canadian Tire	37.35	18.40	19.80
Canfor	19.80	10.35	10.95
Goodfellow	12.55	8.75	9.60
Home Depot	70.00	39.37	52 ^15/16
Hudsons Bay	21.65	12.50	15.75
Lowe’s Cos.	67.25	40.37	51 ^7/8
Sears Canada	42.50	30.75	32.50
Taiga Forest	14.20	6.80	9.00
West Fraser	39.50	27.00	28.90

“Writing, like life itself, is a voyage of discovery.” – Henry Miller

PEOPLE ON THE MOVE

Rick Bobroske has joined Power Packaging as a partner in the company and vice-president of sales. He was most recently at National Manufacturing in a sales management capacity. (604-523- 1804)

NOTED…

– Rob Philips, a spokesperson for Wal-Mart in the U.S., on that company’s entry into white goods sales.

MARKET INDICATORS

WHY HARDLINES SUPPORTS THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

For more information, please call: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, website:www.wcpncanada.org

(Hardlines is proud to be a sponsor of the WCPN)

Hardlines Classifieds

* * * * * * *

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

Michael McLarney, Editor & Publisher (extension 1):
mike@hardlinesfax.com

Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com

Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Sept5_00

HARDLINES™
Five years serving Canada’s home improvement industry
September 5, 2000 – Volume vi, #33
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* IN THIS ISSUE:
* Home Depot moves into Montréal; Réno-Dépôt fights back
* Sears opens new formats with more hardlines
* Rona sales up 30% in first half
* Housing starts jump 22.6% in June
* * * * * *

My apologies for all the extra copies you received lately. I’m having a big screw up with my email software but it’s being fixed as we speak. Keep the faith: we’ll be back to normal very soon! – Michael

NETWORKING AT OUR MARKETING CONFERENCE – This year’s Hardlines Marketing Conference will conclude with a mix-and-mingle cocktail reception, thanks to the sponsorship of Cologne International Trade Shows. What a great way to meet more than 200 fellow delegates and speakers – and have a drink and a bite on us!

SPECIAL RATE HOTEL ROOMS RUNNING OUT FOR THE CONFERENCE – We blocked off a number of rooms at a special low rate at the Marriott Eaton Centre Hotel for our Hardlines Marketing Conference on September 14. But I think the rooms are almost all gone, so If you want to book one, I urge you to call right away: 1-800-905-0667. – MM

SPONSOR UPDATE: I’m pleased to add the following companies as sponsors of our upcoming Conference: Black Eagle Consulting, Georgetown, ON; Power Packaging, Vancouver, BC.

QUÉBEC: THE NEXT BIG BOX BATTLEGROUND

Home Depot Canada opened its first store in the Québec market last week, in the Montréal suburb of Laval. Home Depot intends to have at least 10 stores in the Montréal area, with up to 20 stores throughout Québec province eventually.

This marks Home Depot’s 59th store in Canada. Georges Badras is manager of the new store. The next two will open in Lachenais and Gatineau in spring 2001.

Not to be outdone, Réno-Dépôt announced the opening of two more of its stores in spring 2001. The announcement was made the day before the Home Depot opening. The new stores will be built at a combined cost of $42 million and employ at least 600 people. The first one will be in Laval, making it the second for Réno-Dépôt in this market, and the third in total with the arrival of Home Depot. It will be at the corner of Highway 13 exit and Samson Boulevard, with construction beginning this fall. The second store will be erected in Beauport at 225 Jacques-Casavant, at the intersection of Seigneurial and Highway 40.

Réno-Dépôt already has 11 big box stores throughout Quebec, mainly in and around Montréal.

With the battle heating up in Montréal, Revy Home and Garden could not afford to sit on the sidelines and has been scouting out four or five sites of its own there.

With Home Depot taking aim at Réno-Dépôt’s turf, the Montréal-based retailer is trying to establish itself in the Southern Ontario market. It has announced it will open as many as 15-20 stores in that province over the next five years. Three stores are already planned for this year under the Building Box name. The first will be in Cambridge, followed by Brampton and Scar-borough.

Home Depot’s expansion eastward will not end in Québec. The first two will stores in Atlantic Canada will open simultaneously in Halifax and Dartmouth, NS in November, followed by Moncton, NB in July 2001.

There are now more than 100 big home improvement boxes in Canada.

Expansion continues throughout the Americas. On the same day as the Montréal opening, Home Depot opened its first of eight stores in Argentina. It will also add three more stores in Chile next year for a total of seven in that country.

* * * * * *

NEW CONCEPT SEARS FEATURES EXPANDED HARDLINES

Sears Canada launched two new-concept, larger scale Sears department stores in Toronto on August 17. Located in Scarborough Town Centre and Sherway Gardens, the new outlets average 150,000 sq.ft. each and feature expanded areas for hardlines.

In fact, an entire floor in each store has been dedicated to home products – with the emphasis on home fashion. Hardware, major appliances, home improvement services and catalogue shopping round out the merchandise assortment. The expansion also marks the first time Sears has featured hard goods and catalogue shopping at its Sherway Gardens location.

The stores feature two other new concepts: the Sears Catalogue Café, a combination catalogue store and café, and Sears Travel Superstore, a travel agency and travel goods store. Both locations were formerly Eaton’s stores.

COMPANIES IN THE NEWS

For the six months ended June 30, Rona Inc. recorded net earnings of $7.4 million, an increase of 28.1% over a year earlier. Net sales totalled $657.8 million, up 30.3% over the first half of the previous year. Sales at retail for the period were $ 1.1 billion. Not including the acquisition of Cashway, which added about $311 million in sales, Rona’s net sales increased 7.7%, due primarily to sales by its large-surface stores.

Home Depot has opened its third Villager’s Hardware store. At just over 36,000 sq.ft. in size, it features about 40,000 SKUs of hardware and garden products. All three stores are in New Jersey, where they are being tested at least until the end of this year before being rolled out to other markets (including Canada eventually).

Profitmaster Canada has launched an online tool rental program called OpenRentalDesk. The service enables potential users to shop the cost and availability of rental tools from a number of retailers. It then expedites the transaction electronically on the retailer’s behalf.

Newell Rubbermaid Inc. has entered into a definitive agreement to acquire Gillette Co.’s stationery products business, subject to regulatory approvals. Stationery Products includes Paper Mate, Parker and Waterman writing instruments and Liquid Paper. Sales in 1999 were US$743 million.

Rona Inc. has announced it will sponsor cyclist Geneviève Jeanson. The double junior world champion in 1999 will participate in the upcoming Olympic Games in Sydney, Australia. Rona will supply Jeanson with financial support in addition to showcasing her on its website. She in turn will participate in promotional activities and corporate events and attend store openings. The renewable sponsorship agreement is for 18 months.

TechTronic Industries Co. has completed its acquisition of Ryobi’s power-tool operations. The purchase includes Ryobi Technologies in Cambridge, ON, Ryobi Technologies in Anderson, SC, and OWT Technologies in Pickens, SC. TechTronic bought Ryobi’s copyrights and will continue to manufacture power tools under the Ryobi name.

CANADIAN STOCK WATCH

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

Canadian Tire	43.40	18.40	22.40
Canfor	19.80	10.10	11.30
Goodfellow	12.55	8.75	9.95
Home Depot	70.00	35.75	48 ^9/16
Hudsons Bay	23.85	12.50	15.70
Lowe’s Cos.	67.25	40.37	46 ^13/16
Sears Canada	42.50	29.00	34.80
Taiga Forest	14.75	7.00	8.25
West Fraser	41.00	27.50	29.50

“Prejudice is the reason of fools.” – Voltaire (1694 – 1778)

PEOPLE ON THE MOVE

The following changes have been made at the D.H. Howden Division of Sodisco-Howden Group: Richard Mitton has been appointed regional sales manager – Atlantic Canada; Dave Dingwell has been put in charge of new business development in the Atlantic region … In Ontario, Peter Ulmer has been named regional sales manager. All Ontario account managers will report to Ulmer … Glen Duczek has been named to national accounts and Pro banner manager. (519-686-2200)

At Noral Marketing Ltd., Dave Leslie has been appointed manager, sales & merchandising. (519-439-6800)

Michael G. Shurety has been appointed CEO at Inline Fiberglass. He joins with 25 years of senior management experience in integrated manufacturing. (416-679-1171)

MARKET INDICATORS

Housing starts in July increased 22.6% from June, according to CMHC. The annual rate of housing starts reached 165,500 units seasonally adjusted, compared with 135,000 a month earlier. Urban single starts were up 57.1% to 68,200 units, while multiples grew 5.1% to 76,300 units. In Ontario, starts rose 41.1%, due largely to a 92.6% jump in multiples following a strike by concrete truck drivers earlier in the summer. Québec urban starts were up 29.7% to 21,400 units seasonally adjusted. In Atlantic Canada, urban starts were up 37%, while the Prairies were down 4.4%. British Columbia was down 6.6%, due to a 14.8% drop in multiple starts.

Retail sales grew in June to $22.9 billion, up 0.8% over May. June’s retail sales were up 6.3% over June 1999. Excluding automotive sales, retail increased 0.4% in June.

The value of building permits jumped 7.2% from May to June, says Stats Canada. Residential permits increased 4.8% to $1.7 billion, thanks mainly to growth in multi-family dwellings.

WHY HARDLINES SUPPORTS THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

For more information, please call: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, website:www.wcpncanada.org

(Hardlines is proud to be a sponsor of the WCPN)

Hardlines Classifieds

* * * * * * *

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

Michael McLarney, Editor & Publisher (extension 1):
mike@hardlinesfax.com

Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com

Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Check out our incredible Classifieds section!

SPONSOR UPDATE: I’m pleased to add the following companies as sponsors of our upcoming Conference: Black Eagle Consulting, Georgetown, ON; Power Packaging, Vancouver, BC.

QUÉBEC: THE NEXT BIG BOX BATTLEGROUND

This marks Home Depot’s 59th store in Canada. Georges Badras is manager of the new store. The next two will open in Lachenais and Gatineau in spring 2001.

Réno-Dépôt already has 11 big box stores throughout Quebec, mainly in and around Montréal.

With the battle heating up in Montréal, Revy Home and Garden could not afford to sit on the sidelines and has been scouting out four or five sites of its own there.

There are now more than 100 big home improvement boxes in Canada.

* * * * * *

NEW CONCEPT SEARS FEATURES EXPANDED HARDLINES

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

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

Canadian Tire	43.40	18.40	22.40
Canfor	19.80	10.10	11.30
Goodfellow	12.55	8.75	9.95
Home Depot	70.00	35.75	48 ^9/16
Hudsons Bay	23.85	12.50	15.70
Lowe’s Cos.	67.25	40.37	46 ^13/16
Sears Canada	42.50	29.00	34.80
Taiga Forest	14.75	7.00	8.25
West Fraser	41.00	27.50	29.50

“Prejudice is the reason of fools.” – Voltaire (1694 – 1778)

PEOPLE ON THE MOVE

At Noral Marketing Ltd., Dave Leslie has been appointed manager, sales & merchandising. (519-439-6800)

Michael G. Shurety has been appointed CEO at Inline Fiberglass. He joins with 25 years of senior management experience in integrated manufacturing. (416-679-1171)

MARKET INDICATORS

Retail sales grew in June to $22.9 billion, up 0.8% over May. June’s retail sales were up 6.3% over June 1999. Excluding automotive sales, retail increased 0.4% in June.

The value of building permits jumped 7.2% from May to June, says Stats Canada. Residential permits increased 4.8% to $1.7 billion, thanks mainly to growth in multi-family dwellings.

WHY HARDLINES SUPPORTS THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

For more information, please call: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, website:www.wcpncanada.org

(Hardlines is proud to be a sponsor of the WCPN)

Hardlines Classifieds

* * * * * * *

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

Michael McLarney, Editor & Publisher (extension 1):
mike@hardlinesfax.com

Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com

Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Aug31_00

HARDLINES™
Five years serving Canada’s home improvement industry
August 31, 2000 – Volume vi, #32
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* IN THIS ISSUE:
* Chicago Hardware Show faces crisis of faith
* Canadian Hardware Show adds Décor Show
* Home Depot to open first Montréal store
* Lowe’s in lead among big boxes selling appliances
* * * * * *

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

NO HARDLINES NEXT WEEK
But we’re in the office, just working on other stuff. Like our incredible Marketing Conference and shipping hot-off-the-presses Who’s Who Directories. Our next issue comes out September 5. See you then! – Michael

WE WERE WIRED FOR SOUND AT NHS:
Bev and I kept in touch during the National Hardware Show in Chicago with a very cool pair of Motorola GT two-way radios. They’re used in retail to help staff keep in touch from aisle to aisle or floor to floor, in the yard, etc. My thanks to David Poirier at Lenbrook Industries (905-831-6555, ext. 4283); dpoirier@lenbrook.com

CHICAGO HARDWARE SHOW: BACK NEXT YEAR?
Most of the key Canadian buyers were represented, including Ace Hardware Canada, Sodisco-Howden, Canadian Tire, Home Hardware, Peavey Mart, Home Depot, etc. In fact, preregistration was up enough to leave organizers anticipating a 2-3% increase in attendance over last year’s 67,600 visitors.

The companies that weren’t there were previous exhibitors conspicuous by their absence. The likes of Black & Decker, which along with Bosch, Owens Corning and others, chose to sit out this year’s Show. Ryobi decided two years ago to opt out altogether.

They may well represent the thin edge of the wedge. A number of companies told me they will not return or seriously consider dropping out next year. B&D and Bosch will alternate between Chicago and the International Hardware Fair in Cologne, Germany. The move has appeal for a number of vendors who find the costs surrounding trade shows rising even as orders continue to fall. Bosch’s presence at the Cologne Fair reportedly cost about $12 million for the booth alone.

Why the discord? It boils down to the problem surrounding many shows today. Despite getting “face time” with key buyers, the real buying decisions, the key programs, are presented in the buyers’ offices – well in advance of any public showing of “what’s new.”

The shows that remain the most effective buying shows are the dealer shows, such as Home Hardware’s, and regional shows, such as the WRLA’s event in Saskatoon in January or the ABSDA’s in Moncton each spring. Even the Canadian Hardware and Building Materials Show is cannily consolidating its position as a strong regional showcase – only the region is Canada within a larger marketplace that now spans North and South America.

The drop off in traditional vendors at NHS is being taken up by e- business providers. At least 20 B2B companies were at the show, offering a range of services from online quotes and catalogues to trading and liquidation services.

* * * * * *

CHS ADDS PAINT AND DÉCOR SHOW
The Canadian Hardware and Building Materials Show has formed an alliance with the Paint and Decorating Retailers Association to add the PDRA’s Interiors Show to the CHS. The move will give Canada’s largest hardware show its own “Décor Showcase” and increase representation by up to 6,000 paint and décor retailers who would have attended the Interiors Show in the past.

The coalition follows last year’s alliance with the LBMAO, which married that association’s Canadian Home CentreShow with CHS.

COMPANIES IN THE NEWS

Home Depot Canada will open its first store in Québec province this week. The store will go into the Montréal area in Laval.

For the second quarter ended June 30, Sodisco-Howden Group had sales of $134.8 million, up 3.1% from $130.8 million a year earlier. Net earnings grew 79% to $5.8 million, from $3.2 million, a result of lower financial expenses subsequent to the conversion of debentures, the revaluation of future income tax assets and margin improvement.

Slocan Forest Products Ltd. will shut down all of its sawmills, planers and related woodlands operations for a two-week period commencing in late August. The company says the closings are in response to “difficult market conditions and the oversupply situation of lumber to the North American market.”

The Home Depot in Atlanta reported net earnings of US$838 million for the second quarter of fiscal 2000, up 23% from US$679 million in the second quarter of 1999. Sales totalled US$12.62 billion, up 21% from the same period a year earlier. Same-store sales for the second quarter rose 6% from the same period last year. Sales for the first half of the year were US$23.73 billion, up from US$19.38 billion.

Duxton Windows & Doors has moved its window and fabrication facilities to a new address: 10A Higgins Ave., Winnipeg MB.

Camco Inc. announced net income of $6.3 million for the first six months of 2000, compared with $0.6 million for the first six months of 1999. Sales for the first half of the year were $333.0 million, up from $291.6 million for the same period last year.

Lowe’s Cos. has joined a growing movement by retailers to phase out wood products made with wood from endangered forests. It announced it will boycott wood products from an area on British Columbia’s coast (coined the”Great Bear Rainforest” by environmental activists). However, according to the Forest Alliance of B.C., Lowe’s purchases “a negligible amount of product from that area.”

For the three-month period ended June 30, Sico Inc. recorded sales of $68.5 million, compared with $71.5 million for the same quarter last year, a decrease of 4.1 %. Net earnings amounted to $4.2 million, down 20% from the same period in 1999. The company cited poor weather throughout Eastern Canada and increased advertising costs as reasons for the drop.

Maytag has formed a “Global Supply Chain” function to consolidate and coordinate procurement, manufacturing, and logistics for all of the corporation’s businesses and brands. The move is part of Maytag’s effort to build its brand recognition and consumer demand for its products, which include Maytag, Hoover, Jenn-Air, Blodgett and Dixie-Narco. The move occurs just as North American home improvement big boxes emerge as serious outlets for major appliances. Lowe’s is already the number two seller of major appliances in the U.S., after Sears and ahead of Home Depot. It devotes approximately 9,500 sq.ft. in each of its 600 stores to 200- plus major appliances.

CANADIAN STOCK WATCH

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

Canadian Tire	43.40	18.40	22.10
Canfor	19.80	10.10	11.20
Goodfellow	12.55	8.75	9.85
Home Depot	70.00	35.75	51 ^5/16
Hudsons Bay	23.85	12.50	16.00
Lowe’s Cos.	67.25	40.37	46 ^1/16
Sears Canada	42.50	29.00	33.50
Taiga Forest	14.75	7.00	7.00
West Fraser	41.00	27.50	27.50

“We should consider every day lost in which we do not dance once.” – Friedrich Nietzche (1844 – 1900)

PEOPLE ON THE MOVE

Jim Hunter has joined Philips Lighting as director of marketing and retail sales. He was formerly with Scott Paper as director of marketing … Kris Oustaas has been appointed national sales manager for Home Depot, reporting to Hunter. He comes over from Fiskars Canada … Sheryl Hawkes has also joined Philips. Formerly with Siemens, she takes on the title of channel marketing manager. (416-292-3000)

David Creglia has been appointed vice-president marketing at Globe Electric Co. Inc. He was formerly an automotive buyer with Canadian Tire Corp. (416-480-3000)

MARKET INDICATORS

Wholesale trade creeped up 0.3% in June over May, according to Stats Canada. The increase was due largely to shipments of computers and motor vehicles. Shipments of metals, hardware, plumbing and heating dropped 0.7% from May to June, but were up 5.6% year-over-year. Lumber and building materials shipments fell 0.6% from month to month, representing a 0.6% drop from June of last year, due in large part to soft lumber prices this spring.

The consumer price index rose 3% in July, compared with July 1999, according to Stats Canada. Higher energy prices were a big factor in the increase.

Housing starts in the U.S. slipped to a 1.51 million annual rate, down 3.3% from June and the lowest level of starts since November 1997, according to the U.S. Commerce Department. July’s drop marked the third consecutive decline in starts. Starts were already down 1.8% from May to June. Single-family starts were down 2%, a third straight decline. Multi-family starts were down 7.9%.

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

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

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

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

Hardlines Classifieds

* * * * * * *

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

Michael McLarney, Editor & Publisher (extension 1):
mike@hardlinesfax.com

Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com

Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *

The coalition follows last year’s alliance with the LBMAO, which married that association’s Canadian Home CentreShow with CHS.

COMPANIES IN THE NEWS

Home Depot Canada will open its first store in Québec province this week. The store will go into the Montréal area in Laval.

Duxton Windows & Doors has moved its window and fabrication facilities to a new address: 10A Higgins Ave., Winnipeg MB.

CANADIAN STOCK WATCH

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

Canadian Tire	43.40	18.40	22.10
Canfor	19.80	10.10	11.20
Goodfellow	12.55	8.75	9.85
Home Depot	70.00	35.75	51 ^5/16
Hudsons Bay	23.85	12.50	16.00
Lowe’s Cos.	67.25	40.37	46 ^1/16
Sears Canada	42.50	29.00	33.50
Taiga Forest	14.75	7.00	7.00
West Fraser	41.00	27.50	27.50

“We should consider every day lost in which we do not dance once.” – Friedrich Nietzche (1844 – 1900)

PEOPLE ON THE MOVE

David Creglia has been appointed vice-president marketing at Globe Electric Co. Inc. He was formerly an automotive buyer with Canadian Tire Corp. (416-480-3000)

MARKET INDICATORS

The consumer price index rose 3% in July, compared with July 1999, according to Stats Canada. Higher energy prices were a big factor in the increase.

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

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

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

Hardlines Classifieds

* * * * * * *

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

Michael McLarney, Editor & Publisher (extension 1):
mike@hardlinesfax.com

Beverly Allen, Marketing Manager (extension 2):
bev@hardlinesfax.com

Nancy Wright, Administrative Assistant:
nancy@hardlinesfax.com

Aug8_00

HARDLINES™ NEWS EXTRA!
Five years serving Canada’s home improvement industry
August 8, 2000 – Volume vi, #31
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

NO HARDLINES FOR THE NEXT TWO WEEKS

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

CANADIAN TIRE APPOINTS WAYNE SALES NEW CEO

Wayne Sales was named president and CEO of Canadian Tire on Friday, ending speculation over who would get one of the most high- profile jobs in Canadian retail. The position came up for grabs following the announcement earlier this year that then-president Stephen Bachand intended to retire by the end of this year. Sales, 50, is a nine-year veteran of the company. He was most recently executive vice-president, retail.

Regarded as Bachand’s first lieutenant and recognized as instrumental to the turnaround of the company under Bachand, Sales was also considered by some to be Bachand’s personal choice for the job, especially after he got back from a six-week advanced management course in Harvard in May (despite a statement that his education was planned well before Bachand’s announcement). However, the board of directors initiated a search on both sides of the border for a replacement.

CTC’s share price slipped on the news of the retirement of the man who is credited with turning the company around and forestalling an incursion by Wal-Mart. When Bachand came on board in 1993, CTC was newly threatened by Wal-Mart, which had just come up from the U.S. Bachand himself was hired away from Hechinger’s, a U.S. home improvement chain which had purchased Home Quarters, a big box of its own, in the mid-’80s.

Under Bachand’s tenure, relations with CTC’s associate dealers were patched up. (The previous year, CTC’s fall market was boycotted by the dealers). Sales turned around and the company earned points on Bay Street for increased profitability and innovative programs.

In his new role, Sales will not be without some challenges of his own, however. Store sales remain unimpressive, despite ongoing investment in new formats. He will have to round out the executive team by finding a replacement for former CFO Gerald Kishner, who left in the spring. Wal-Mart and Home Depot continue to expand into markets that CTC has typically dominated. And the company has only just announced it will begin online sales starting this fall.

The company is in the midst of implementing “Next Generation,” the newest phase in its $1 billion store upgrading program. Forty- five new-format stores will open in 2000, and another 55 will be retrofitted. So far this year, 25 new-format stores have been opened, for a total of 213 stores since the program began in 1994. CTC expects to open 45 new-format stores this year and approximately 40 each year for total of 350 of the company’s 438 stores by the end of 2003.

* * * * * *

CANADIAN TIRE REPORTS WEAK EARNINGS FOR 2Q

Canadian Tire reported second quarter consolidated net earnings of $49.0 million, up only slightly from $48.7 million in 1999. While the company had a 9% increase in gross operating revenue, net earnings fell from $80.5 million to $73.1 million. For the first six months, gross operating revenue was $2.50 billion, up 12.1% from $2.23 million a year earlier. Net earnings fell 7.4% in the first half of 1999 to $73.13 million, from $80.50 million.

Retail sales by CTC associate dealers were up 2.3% in the first quarter over 1999, and up 3.1% for the first six months. In the quarter, same-store sales were down 3.8% from a year ago and down 2.6% year-to-date over 1999, reflecting the cold, wet weather that afflicted seasonal retail across the country this spring and early summer.

PEOPLE ON THE MOVE

Jack Elliott has announced his upcoming retirement from Castle Building Centres Group. A 40-year veteran of the industry, Elliott spent the past five years as Castle’s lumber and commodities buyer. Before that, he worked at Beaver Lumber. (905-564-3307)

Hardlines Classifieds have become the absolute best way to reach the hardware/home improvement industry right across Canada. And at only $16 per line, we are confident the cost is very reasonable. Each ad runs for two weeks in the fax version and three weeks in the email version – and on our website. Call Beverly at 416-489- 3396 to place your ad.

* * * * * *

Hardlines EXTRA Classifieds

LBMX Inc. is a new London based Internet company that has created a B2B Exchange called LBMXchange.com to provide business to business e-Commerce capabilities to the hardware, lumber and building material supply chain in Canada. The following positions are based in London, Ontario and are required immediately.

SENIOR ACCOUNT EXECUTIVE:

Reporting to the V.P Business Development, the main responsibilities of this position include working with companies within the Canadian hardware and lumber and building material supply chain to participate in the Exchange, negotiating contracts with suppliers, and developing relationships with senior management of the top 100 suppliers in the LBM industry.

The ideal candidate will have a minimum of 10 years sales experience in the hardware, lumber and building materials industry with a proven track record of interacting with large multi-million dollar organizations. The successful candidate must demonstrate the ability to deal with and build lasting relationships with senior industry executives. Excellent negotiation, communication and presentation skills are required as well as experience with MS office and contact management software. Your background should include a proven history of sales quota achievement and a working knowledge and interest in the Internet.

ACCOUNT EXECUTIVE:

Reporting to the V.P. Business Development, the main responsibilities of this position include working with companies within the Canadian hardware and lumber and building material supply chain to participate in the Exchange, negotiating contracts with suppliers, and developing relationships with management of small to medium sized suppliers in the LBM industry.

The ideal candidate will have a minimum of 5 years sales experience in the industry with a proven track record of interracting with small and medium suppliers to the LBM industry. The successful candidate must demonstrate the ability to consult with and build lasting relationships with industry executives. Excellent negotiation, communication and presentation skills are required as well as experience with MS office and contact management software. Your background should include a history of sales quota achievement and working knowledge and interest in the Internet.

SALES ASSOCIATE – WEB SERVICES TEAM:

Reporting to the Manager of Dealer e-Commerce the main responsibilities of this position include prospecting and selling Business to Consumer/Contractor web services to dealers in the hardware, lumber and building materials industry.

The successful candidate will have 3 years previous experience in a sales capacity, preferably in the hardware, lumber and building material industry. A good understanding of the Internet and a working knowledge of web site technology is required.

CUSTOMER SERVICE ASSOCIATE – WEB SERVICES TEAM:

Reporting to the Manager of Dealer e-Commerce, the main responsibilities of this position include administration and after- sales tasks relating to dealer web services. The Customer Service Associate will handle web site content collection, change requests, contract administration and general customer liaison

The successful candidate must be organized and efficient with excellent communication skills, and demonstrate the ability to work under pressure. Minimum requirement of 2 years experience in a customer service role.

To apply for any of the above positions, please email your resume to info@lbmx.com or fax to the Attention of Human Resources at 519-685-0907.

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

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

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

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

Hardlines Classifieds

* * * * * * *

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

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

Check out our incredible Classifieds section!

NO HARDLINES FOR THE NEXT TWO WEEKS

CANADIAN TIRE APPOINTS WAYNE SALES NEW CEO

* * * * * *

CANADIAN TIRE REPORTS WEAK EARNINGS FOR 2Q

PEOPLE ON THE MOVE

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Hardlines EXTRA Classifieds

SENIOR ACCOUNT EXECUTIVE:

ACCOUNT EXECUTIVE:

SALES ASSOCIATE – WEB SERVICES TEAM:

CUSTOMER SERVICE ASSOCIATE – WEB SERVICES TEAM:

To apply for any of the above positions, please email your resume to info@lbmx.com or fax to the Attention of Human Resources at 519-685-0907.

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

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

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

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

Hardlines Classifieds

* * * * * * *

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

May29_00

HARDLINES™
Five years serving Canada’s home improvement industry
May 29, 2000 – Volume vi, #21
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* IN THIS ISSUE:
* Revy keeps expansion plans to Toronto area for now
* Hickman’s sells one yard to Notre Dame Agencies
* Castle slowly gaining ground in Québec
* Schurman president gets inducted into the P.E.I. Business Hall of Fame
* * * * * *

Hardlines Networking Event

My thanks to everyone who came down to the Rancho Relaxo last Wednesday for the 3rd Annual Hardlines Networking Event. About 75 people gathered for a lecture on organizing our lives and businesses, plus drinks, fajitas, music by the Wayward Angels, prizes and more! And special thanks to ACNielsen for sponsoring the event. – Michael

* * * * * *

REVY KEEPS FOCUS ON TORONTO AREA

Revy Home Centres will continue to concentrate its big box expansion in the Greater Toronto Area, even though it is securing properties in other cities. One of those cities is Montréal, where rival Home Depot will open its first store in August.

Carl Grittner, president of Revy, says the company is actively shopping for its own sites in Montréal, but no stores will be developed there yet. “Revy has its hands full here in Toronto,” he says. “We want to put stores around our competition [in the GTA], wherever they have a profitable store.” That gives consumers a choice, he says, between big boxes, “and with that choice, enough of them will choose us.”

Grittner counts Lansing’s Scarborough store among its fleet of Toronto area big boxes. But at 85,000 sq.ft., it falls short of the 110,000-sq.ft.-plus of Home Depot and Réno-Dépot. Grittner bristles at the suggestion that this store doesn’t have the selection of its rivals. He points out that the Scarborough store also has a one-acre yard and 15,000 sq.ft. of outdoor seasonal. “How much more can you have in a bigger store? Theres not much more you can put in them,” he says. “It’s all bull-t… Thye’ve all got everything you want.”

After the Stockyards, the next Revy boxes to open will be in Scarborough on June 24, followed by Mississauga, at Burnamthorpe and Mavis Drive, then Oshawa. The company expects to have an additional six sites in the next few years, for a total of 12 Revys in the GTA.

* * * * * *

CASTLE DEALERS ADD STORES, GROW RANKS

Castle Building Centres has added eight new stores to its ranks so far this year, including two by existing dealers. Les Yates of Bulkley Valley Home Centre in Telkwa, B.C., has acquired a second store, a former co-op in Houston, B.C. Notre Dame Agencies continues to grow in Newfoundland with the purchase of its 11th store there. This one is in Corner Brook, a former Hickman’s yard that changed hands the beginning of April and reduces the number of Hickman’s outlets to three: one in St. John’s and two rural stores in Fortune and South River.

Castle has also signed two dealers in Québec, Chistapitin in Chisasibi, and Tullik in the native community of Kuujjuaq. This brings the ranks of Castle dealers in Québec to six. The other new members, ABC Siding &Windows, St. John’s; Covell Building Supplies, Lombardy, Ont.; Fox Lake Hardware & Lumber, Gillam, Man.; and Kintore Boxes, Kintore, Ont., bring the total number of Castle stores to 222.

COMPANIES IN THE NEWS

Rona Inc. broke ground last week on its first big box store in the Toronto area. The outlet, in Brampton, is scheduled to open by October or November. This store will be followed by one in Mississauga, Ont.

As it prepares to open its first store in Québec (Laval in August), Home Depot Canada held a career fair this past weekend to hire about 200 store staff. A district office will open in Montréal about the same time.

CanWel Distribution has moved its head office from Burnaby to 1400 – 625 Howe St., Vancouver, B.C. V6C 2T6. Phone and fax stay the same.

Hudson’s Bay Co. had sales and revenue in the first quarter ended April 30 of $1.55 billion, up 4.4% over last year. Retail sales rose 4.9% while other revenues decreased by 3.6%. The company had a profit of $12.1 million before interest expense and income taxes (EBIT), compared with a loss of $3.7 million. Net loss improved by $14.1 million to $6.5 million from $20.6 million. Revenues at the Bay increased by 11.4%, with same-store sales increasing 12.7%. EBIT went from a loss of $2.2 million last year to earnings of $9.6 million. At Zellers, revenues were up 0.9%, with same-store sales up 2.7%. Zellers had EBIT of $6.6 million, up from $4.6 million.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	18 ^1/16
Canadian Tire	46.00	19.10	23.35
Canfor	19.25	4.25	13.20
Goodfellow	12.25	7.50	10.40
Home Depot	70	35.75	46 ^7/8
Hudsons Bay	23.85	12.70	18.10
Lowe’s Cos.	67.25	40.75	45 ^3/4
Sears Canada	42.50	18.25	33.10
Taiga Forest	14.75	9.40	9.00
West Fraser	41.00	28.00	30.00

“There is an enormous number of managers who have retired on the job .” – Peter Drucker (1909 – )

PEOPLE ON THE MOVE

Tony Kuczynski has departed Ace Hardware Canada, where he served for four years as director, sales. He starts today at Canadian Tire Corp. as a director involved in retail sales development. He reports to John Rankin, vice-president of dealer relations. (905-480-3000)

Michael S. Schurman is being inducted into Prince Edward Island’s Business Hall of Fame on June 1. He is president of M.F. Schurman Co., which was founded by his grandfather 104 years ago. Schurman, 63, has been in the business since 1960. Besides five building centres, which generate about $32 million annually, the company has two furniture stores, construction and concrete businesses, and a steel fabrication plant. (902-436-4291)

OVERHEARD…

“Nope. None whatsoever.” – Michael S. Schurman, president of M.F. Schurman Ltd., on being asked if he had any intention of retiring in the near future.

THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

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

Hardlines Classifieds

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

Check out our incredible Classifieds section!

Hardlines Networking Event

* * * * * *

REVY KEEPS FOCUS ON TORONTO AREA

* * * * * *

CASTLE DEALERS ADD STORES, GROW RANKS

COMPANIES IN THE NEWS

CanWel Distribution has moved its head office from Burnaby to 1400 – 625 Howe St., Vancouver, B.C. V6C 2T6. Phone and fax stay the same.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	18 ^1/16
Canadian Tire	46.00	19.10	23.35
Canfor	19.25	4.25	13.20
Goodfellow	12.25	7.50	10.40
Home Depot	70	35.75	46 ^7/8
Hudsons Bay	23.85	12.70	18.10
Lowe’s Cos.	67.25	40.75	45 ^3/4
Sears Canada	42.50	18.25	33.10
Taiga Forest	14.75	9.40	9.00
West Fraser	41.00	28.00	30.00

“There is an enormous number of managers who have retired on the job .” – Peter Drucker (1909 – )

PEOPLE ON THE MOVE

OVERHEARD…

“Nope. None whatsoever.” – Michael S. Schurman, president of M.F. Schurman Ltd., on being asked if he had any intention of retiring in the near future.

THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

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

Hardlines Classifieds

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May23_00

HARDLINES™
Five years serving Canada’s home improvement industry
May 23, 2000 – Volume vi, #20
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* IN THIS ISSUE:
* Réno-Dépôt opens fifth big box in Montréal
* Home Depot boss talks about risks and priorities
* Sodisco-Howden hints at another acquisition
* Home Depot’s 1Q sales up 24%
* * * * * *

Hardlines Networking Event

PERSONAL MANAGEMENT WORKSHOP El Rancho Relaxo Bar & Grille May 24, 4-9 p.m., Toronto

“GETTING ORGANIZED” — Management Workshop with organizational guru Estelle Gee. We’ll have some fun breaking the ice and learning some important self-management skills. Plus: Country & western band The Wayward Angels. Don’t forget to bring lots of business cards!

WHERE: El Rancho Relaxo Bar & Grill WHEN: May 24, 4-9 p.m., Toronto. Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts, sharpen their personal skills — and just have fun. Call Bev for details at 416-489-3396, extension 2. Call Beverly at 426-489-3396, ext. 2, or e-mail: bev@hardlinesfax.com for details!

Tickets are only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more! Check out last year’s event!

We are pleased to have ACNielsen join us as sponsor of the Third Annual Hardlines Networking Event. We also wish to thank the following companies for their support:

Ace Hardware Canada
Beaver Lumber
Canadian Tire Corp.
Hardware Merchandising
Home Hardware Stores Ltd.
Proforma (our print guy)
Sensible Insurance (our financial advisor)

* * * * * *

ENHANCEMENTS MARK NEWEST RÉNO-DÉPÔT

Réno-Dépôt has opened its newest big box store in Montréal &emdash;the fifth in that city and its 11th in Québec. Located in Notre-Dame-de- Grâce, The 128,000-sq.ft. store, which includes a 20,000-sq.ft. garden centre, cost more than $21 million and employs 300. It will serve southwest Montréal and surrounding area.

The company is using this site for a number of innovations to enhance the shopping experience for both women and men. An interactive seminar area called Skillbuilders’ Club provides hands-on activities to children from 6 to 12. “Campus Réno-Dépôt” features workshops by vendors and associates for more seasoned renovators.

The layout has been modified, as well. For example, drywall is now at the front of the store, along with the latest décor items, with an emphasis on international styling. The company will continue its expansion in the fall of 2000, this time in Ontario, with the opening of the first The Building Box warehouse stores in the Metro Toronto area.

Réno-Dépôt Inc. currently operates 11 warehouse stores in Québec: Brossard, Anjou, Laval, Pointe-Claire, Québec City, St- Hubert, Hull, Rosemere, LaSalle, and, in Montréal proper, Marché Central and Notre-Dame-de-Grâce.

* * * * * *

HOME DEPOT’S ANNETTE VERSCHUREN SHARES PERSONAL SIDE

The president of Home Depot Canada was guest speaker at the first- ever event of the Women’s Consumer Products Network, held last week in Toronto. Annette Verschuren didn’t talk so much about the home improvement industry as about her own life and the challenges of being a woman in a male-dominated industry. Her personal anecdotes and insights found a receptive audience in the 85-plus women in attendance, who gave her a standing ovation.

Verschuren, the daughter of Dutch farming immigrants to Nova Scotia, was 39 when she took the helm of Home Depot’s Canadian division four years ago. Eighteen months later it was one of the most profitable in the company. The values instilled on the farm prevail in her job today. “My priorities are very clear,” she said, “my family comes before my work.”

Some highlights of Verschuren’s talk …

“When we open a store, we do the demographics around that store and hire to that demographic.”

“I spend a lot of energy on the ‘A’ players. A lot of people spend time on the ‘C’ players thinking they can bring them along. I don’t. I have people to do that. I’s so important to spend your time on the people who have the most potential.”

“Take risks and fail. You’ve got to fail. Because then the taste of success is so beautiful because of where you’ve been.”

“Of all the human skills, listening is the most difficult skill.”

“Dream big and think outside your boundaries.”

* * * * * *

SODISCO-HOWDEN TO BUY BACK SHARES, HINTS AT ANOTHER ACQUISITION

For the first quarter ended March 31, 2000, Sodisco-Howden Group had sales of $86.3 million, up 16% from $74.7 million in the first quarter of 1999. Earnings before expenses, depreciation and income taxes totalled $1.9 million, up 5.4% from $1.8 million last year, reflecting strong growth in the renovation and building materials sector. Net earnings for the quarter increased 34% to $126,000 from $95,000. Operating expenses remained at the same level, while financial expenses were similar to last year’s, despite a $200,000 increase in interest expense related to debentures.

The company also announced its intention to consolidate its common shares on a 20-to-1 basis and to buy back up to 5% of outstanding shares.

“In line with our objectives to increase both the top and the bottom line, we are seeking this year another acquisition opportunity and we will further strengthen our position as a distributor of choice for independent retailers in the hardware and home improvement industry,” said Tony Molluso, president and CEO of Sodisco- Howden. The company recently completed the purchase of western hardware distributor Smith-Barregar.

COMPANIES IN THE NEWS

Can-Save has moved into new facilities on property adjoining its former distribution centre in Barrie, Ont. The 80,000-sq.ft. building has 20% more space and 55% more warehouse space, thanks to higher racking and more standardized pallet sizes.

Richwood Building Products has acquired ABTCo’s lines of shutters, blocks, vents and louvres, as well as the production facilities. London, Ont.-based Polar Shutters will distribute and sell the lines in Canada.

Home Depot reported sales for the first quarter of 2000 of US$11.112 billion, a 24% increase over the first quarter of 1999. Same-store sales rose 7% from the same period last year. Net earnings reached US$629 million, up 29% from US$489 million. Sales were driven by 223 million-plus customer transactions and a 3% increase in the average sale per transaction. During the first quarter, Home Depot opened 41 new stores and relocated one for a total of 971 stores, namely 892 Home Depots, 15 EXPO Design Centers, and two Villager’s Hardware in the U.S.; 56 Home Depots in Canada; four in Chile; and two in Puerto Rico, comprising approximately 105 million sq.ft. of selling space.

For the quarter ended April 28, sales at Lowe’s Cos. Inc. increased 18.4% to US$4.47 billion, up from US$3.77 billion in the first quarter of 1999. Same-store sales increased 4.1%. Net earnings reached US$187.1 million, a 50% increase over the same period a year ago. During the quarter, Lowe’s opened 13 new stores and relocated 2 stores, for a total of 589 stores in 39 states. Retail square footage grew 19% to 58.5 million.

Restoration Hardware’s first quarter sales increased 14.3% to US$68.6 million from $60 million. However, same-store sales slipped 14.4% compared with the same period a year earlier. In last year’s first quarter, same-store sales increased 18.4%. The company reported a net loss of US$4.3 million, compared with a net loss of US$2.7 million last year.

Sales for Cameron Ashley Building Products dropped from U.S.$270.1 million to U.S.$264.0 million in the second quarter ended April 30. Net losses amounted to US$2.4 million, compared with net income of US$3.5 million for the same period a year earlier.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	17 ^5/16
Canadian Tire	46.00	19.10	21.90
Canfor	19.25	4.25	15.20
Goodfellow	12.25	7.50	10.40
Home Depot	70	35.75	50 ^11/16
Hudsons Bay	23.85	12.70	17.50
Lowe’s Cos.	67.25	40.75	48 ^7/8
Sears Canada	42.50	18.25	34.35
Taiga Forest	14.75	9.40	10.00
West Fraser	41.00	28.00	34.00

“Work banishes those three great evils, boredom, vice and poverty.” &emdash; Voltaire (1694-1778)

PEOPLE ON THE MOVE

Caradon Lite Products has appointed Robert DiTomasso as manufacturer’s agent for Québec and the Ottawa Valley. (450-621- 5494)

Anne Zonni has joined Ipex Homerite Products as sales representative for Ontario. She was previously at Hayward Industrial Products. (905-670-7676)

Larry Shanks has joined Westroc Inc. as product manager, responsible for standard wallboard products and the development of Westroc’s home centre channel. He was formerly with GAF Materials and IKO Industries. (905-823-9881)

OVERHEARD…

“Being Canadian makes a big difference — a big difference. Home Depot would love to be Canadian.” &endash; Carl Grittner, president of Revy Home Centres Inc., so far U.S.- based Home Depot’s biggest competitor in Canada’s big box arena.

MARKET INDICATORS

Retail sales picked up in March to $22.8 billion, up 2.1% from February, says Stats Canada. Excluding the automotive sector, retail sales were up 1%. For the first quarter of 2000, total retail sales were up 1.9%.

Wholesale trade rebounded in March, up 2% from February to $31.6 million. First-quarter wholesale sales were $93.9 billion, up 1.2% over the first quarter of 1999.

The consumer price index fell 0.4% from March to April, says Stats Canada. However, it rose 2.1% from April ’99 to April ’00.

THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

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

(Hardlines is proud to be a sponsor of the WCPN)

Hardlines Classifieds

* * * * * * *

Check out our incredible Classifieds section!

Hardlines Networking Event

PERSONAL MANAGEMENT WORKSHOP El Rancho Relaxo Bar & Grille May 24, 4-9 p.m., Toronto

Tickets are only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more! Check out last year’s event!

We are pleased to have ACNielsen join us as sponsor of the Third Annual Hardlines Networking Event. We also wish to thank the following companies for their support:

Ace Hardware Canada
Beaver Lumber
Canadian Tire Corp.
Hardware Merchandising
Home Hardware Stores Ltd.
Proforma (our print guy)
Sensible Insurance (our financial advisor)

* * * * * *

ENHANCEMENTS MARK NEWEST RÉNO-DÉPÔT

* * * * * *

HOME DEPOT’S ANNETTE VERSCHUREN SHARES PERSONAL SIDE

Some highlights of Verschuren’s talk …

“When we open a store, we do the demographics around that store and hire to that demographic.”

“Take risks and fail. You’ve got to fail. Because then the taste of success is so beautiful because of where you’ve been.”

“Of all the human skills, listening is the most difficult skill.”

“Dream big and think outside your boundaries.”

* * * * * *

SODISCO-HOWDEN TO BUY BACK SHARES, HINTS AT ANOTHER ACQUISITION

The company also announced its intention to consolidate its common shares on a 20-to-1 basis and to buy back up to 5% of outstanding shares.

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	17 ^5/16
Canadian Tire	46.00	19.10	21.90
Canfor	19.25	4.25	15.20
Goodfellow	12.25	7.50	10.40
Home Depot	70	35.75	50 ^11/16
Hudsons Bay	23.85	12.70	17.50
Lowe’s Cos.	67.25	40.75	48 ^7/8
Sears Canada	42.50	18.25	34.35
Taiga Forest	14.75	9.40	10.00
West Fraser	41.00	28.00	34.00

“Work banishes those three great evils, boredom, vice and poverty.” &emdash; Voltaire (1694-1778)

PEOPLE ON THE MOVE

Caradon Lite Products has appointed Robert DiTomasso as manufacturer’s agent for Québec and the Ottawa Valley. (450-621- 5494)

Anne Zonni has joined Ipex Homerite Products as sales representative for Ontario. She was previously at Hayward Industrial Products. (905-670-7676)

OVERHEARD…

MARKET INDICATORS

Wholesale trade rebounded in March, up 2% from February to $31.6 million. First-quarter wholesale sales were $93.9 billion, up 1.2% over the first quarter of 1999.

The consumer price index fell 0.4% from March to April, says Stats Canada. However, it rose 2.1% from April ’99 to April ’00.

THE WOMEN’S CONSUMER PRODUCTS NETWORK

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

(Hardlines is proud to be a sponsor of the WCPN)

Hardlines Classifieds

* * * * * * *

May15_00

HARDLINES™
Five years serving Canada’s home improvement industry
May 15, 2000 – Volume vi, #19
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* IN THIS ISSUE:
* Sodisco-Howden focuses on Pro banner
* Sears wants to be $10 billion company by 2003
* Hardlines Conference to feature Newell president
* New house prices up 2% year over year
* * * * * *

Hardlines Networking Event

PERSONAL MANAGEMENT WORKSHOP El Rancho Relaxo Bar & Grille May 24, 4-9 p.m., Toronto

WHERE: El Rancho Relaxo Bar & Grill WHEN: May 24, 4-9 p.m., Toronto

Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts, sharpen their personal skills — and just have fun. Call Bev for details at 416-489-3396, extension 2. Call Beverly at 426-489-3396, ext. 2, or e-mail: bev@hardlinesfax.com for details!

Tickets are only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more! Check out last year’s event!

We are pleased to have ACNielsen join us as sponsor of the Third Annual Hardlines Networking Event. We also wish to thank the following companies for their support:

Ace Hardware Canada
Beaver Lumber
Canadian Tire Corp.
Hardware Merchandising
Home Hardware Stores Ltd.
Proforma (our print guy)
Sensible Insurance (our financial advisor)

* * * * * *

“MAKE THE CONNECTION” — with Annette Verschuren, President of Home Depot Canada, who will be guest speaker at the inaugural event and membership drive of the Women’s Consumer Products Network, Tuesday, May 16, 2000: 5:30 Reception, 6:30 Dinner. At the Sheraton Parkway Hotel, 600 Hwy #7 E., Richmond Hill, Ont.

June 27: WCPN Golf Tournament.

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

(Hardlines is proud to be a sponsor of the WCPN)

* * * * * *

SODISCO-HOWDEN REDUCES BANNER NAMES, FLYERS

Sodisco-Howden Group Inc. has completed the first stage of the rationalization of its various banners. Almost 400 of the company’s 750 bannered dealers — 350 of them in Québec — have made the switch to the Pro name. The move to create one national store brand for its franchise dealers is also expected to provide cost savings by eliminating multiple flyers.

Sodisco-Howden has historically operated a variety of banners for its franchise dealers, including Mat Expert, Novico, Pro and Unitotal. Novico, which had some stores in English Canada, was dropped there last year.

Commenting on the transition, Pierre Racette, vice-president marketing for Sodisco-Howden, says the Pro brand “appeals to the independent dealer who wants to maintain their independence. We are the alternative for the independent dealer.”

Focus on the Pro banner will include an expanded private label program. Private label products will grow from the current 300-400 to as many as 1,000 by next year. Sodisco-Howden produces 30 million flyers a year, but had to create 96 versions under five different banner names. Now those flyers will be under one name.

The exception to this deal is Do-it center, the banner operated by the Howden division for its larger home centre dealers. It will remain a stand-alone program., says Bill Wilson, vice-president and general manager of the Howden division, and the company will continue to invest in the the banner and make it available to new dealers. There are about 55 Do-it dealers across the country, with four new dealer inquiries currently under review, says Wilson.

* * * * * *

SEARS EXPECTS BIG SALES FROM INTERNET

Sears Canada intends to be a $10 billion company by 2003, by growing at twice the rate of the market and changing from a “vertical” structure to a “horizontal” one. Paul Walters, CEO of Sears Canada, shared his company’s plans at a recent meeting in Toronto of the Canadian Hardware and Housewares Manufacturers Association.

Plans include more stores, expanded online sales ($170 million this year and $665 million by 2003), and nationwide reselling of gas and electricity (as tested last year in Ottawa). Hardware sales remain strong even with the company’s emphasis on other categories. “Craftsman does great even though we treat it poorly,” he admits.

* * * * * *

HARDLINES CONFERENCE WILL INCLUDE VENDOR PERSPECTIVE

The president of Canada’s only adult video chain and the head of one of the world’s most diverse hardlines manufacturers will take turns at the podium of the fifth annual Hardlines Marketing Conference, September 14, 2000.

Tom Ferguson, president and COO of Newell Rubbermaid, will offer a vendor’s perspective on the challenges that change has brought to home improvement retailing. Newell Rubbermaid owns numerous companies around the world in hardlines, décor and stationery. Randy Jorgensen, founder of AOV Canada, will present an innovative niche concept that has led the way in new retail formats and online interactivity.

These speakers join our keynote, Pat Farrah, executive vice-president of merchandising for The Home Depot in Atlanta; Sid Doolittle, retail analyst from MacMillan/Doolittle in Chicago; Will Raap, president of Gardener’s Supply in Burlington, Va.; and Tim Silk, from the faculty of the University of Western Ontario’s Ivey Business School.

The Hardlines Marketing Conference is held each year in Toronto to provide a showcase for the stories and insights of leading retail figures from around the world. This year’s conference will be held at the Marriott Hotel in Toronto on September 14, and will play host to more than 175 retail and supplier executives. For more information, call us at 416-489-3396 or browse our site.

* * * * * *

MILLWORK PREPARES TO DO BATTLE WITH THE BIG BOX

Millwork Home Centre celebrated its 50th anniversary this past weekend, with a grand re-opening celebration. The I.L.D.C. member has a 55,000-sq.ft. store in Oshawa and another, smaller one, in Ajax, Ont. and estimated sales of $40 million. The Oshawa store underwent refurbishing that included new, warehouse-style fixturing. As it prepares for the arrival of big boxes right in Oshawa, Millwork touts its Canadian owned and operated status, and founder Ed Lupton’s distinction as one of this country’s retailers of the century, as chosen by Hardware Merchandising magazine.

COMPANIES IN THE NEWS

With total sales by all dealers climbing 9.25% to $985 million in 1999, Sexton Group hopes to reach $1 billion this year. Sexton has 244 members, mainly in Western Canada.

Several U.S. organizations, including the National Association of Home Builders, Home Depot and other big buyers of lumber, have formed a new coalition, American Consumers for Affordable Homes. The coalition has launched a push in Congress to block the Clinton administration from renewing the 1996 softwood lumber agreement, which puts quotas on lumber being shipped from Canada. Meanwhile, U.S. lumber companies are seeking a bridging agreement that would continue some form of quotas until Canadian provinces agree to end their so-called subsidies.

Sears Canada opened a new Sears Furniture and Appliances store in Sherbrooke, Qué., on Saturday. The 43,000-sq.ft. store has a staff of 27, including 14 furniture/home decor and major appliance consultants. The store offers 36,000 sq.ft. of furniture, rugs and accent decor items, while a 6,500-sq.ft. Brand Central department features major appliances.

Do it Best Corp. has launched a new online service: free Internet service to its member dealers and their customers. The program is intended to create a virtual community while saving its customers money. The deal, which is supported by advertising, is being offered in partnership with FreeInternet.com, an Internet service provider.

Sears, Roebuck and Co. reports that it’s considering building free-standing home electronics and appliance stores, in the face of growing competition. Home Depot will carry appliances as of this summer. The stores will range in size from 12,000 to 15,000 sq.ft.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	18 ^1/8
Canadian Tire	46.00	19.10	20.10
Canfor	19.25	4.25	14.90
Goodfellow	12.25	7.50	10.50
Home Depot	70	35.75	53 ^5/16
Hudsons Bay	23.85	12.70	17.50
Lowe’s Cos.	67.25	40.75	47 ^15/16
Sears Canada	42.50	18.25	33.00
Taiga Forest	14.75	9.40	9.90
West Fraser	41.00	28.00	33.00

“Always mistrust a subordinate who never finds fault with his superior.” — John Churton Collins (1848-1908)

PEOPLE ON THE MOVE

James MacKay has been appointed president of CGC Inc. He will be responsible for CGC’s sales, marketing and manufacturing activities. A 37-year veteran of the company, MacKay served most recently as senior vice-president and general manager. (905-803-5600)

OVERHEARD…

“Over time we will see more rapid growth in those departments and categories we’ve slated for growth. That includes pushing expansion of the hard-ware/housewares business, as we leave higher ticket items such as tubs and showers to our catalogue business.”– Stewart MacLeod, group vice-president of home and hardlines at Sears Canada, commenting on the restructuring of the company’s hardlines management team.

MARKET INDICATORS

The new housing price index rose 0.1% from February to March, according to Stats Canada. The highest monthly increase was in Saskatoon (+1.1%), while other increases occurred in Montréal (+0.5%), Hamilton, Ont. (+0.3%) and Kitchener-Wateloo, Ont. (+0.3%). On an annual basis, house prices were up 2% on average across Canada. Largest annual increases were in St. Catharines-Niagara, Ont. (+5.5%) and Ottawa-Hull (+4.9%), mostly as a result of higher prices for labour and materials. The largest annual decreases were in Victoria(-5.1%) and Vancouver (-1.3%).

Hardlines Classifieds

* * * * * * *

Check out our incredible Classifieds section!

Hardlines Networking Event

PERSONAL MANAGEMENT WORKSHOP El Rancho Relaxo Bar & Grille May 24, 4-9 p.m., Toronto

WHERE: El Rancho Relaxo Bar & Grill WHEN: May 24, 4-9 p.m., Toronto

Tickets are only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more! Check out last year’s event!

We are pleased to have ACNielsen join us as sponsor of the Third Annual Hardlines Networking Event. We also wish to thank the following companies for their support:

Ace Hardware Canada
Beaver Lumber
Canadian Tire Corp.
Hardware Merchandising
Home Hardware Stores Ltd.
Proforma (our print guy)
Sensible Insurance (our financial advisor)

* * * * * *

June 27: WCPN Golf Tournament.

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

(Hardlines is proud to be a sponsor of the WCPN)

* * * * * *

SODISCO-HOWDEN REDUCES BANNER NAMES, FLYERS

* * * * * *

SEARS EXPECTS BIG SALES FROM INTERNET

* * * * * *

HARDLINES CONFERENCE WILL INCLUDE VENDOR PERSPECTIVE

* * * * * *

MILLWORK PREPARES TO DO BATTLE WITH THE BIG BOX

COMPANIES IN THE NEWS

With total sales by all dealers climbing 9.25% to $985 million in 1999, Sexton Group hopes to reach $1 billion this year. Sexton has 244 members, mainly in Western Canada.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	18 ^1/8
Canadian Tire	46.00	19.10	20.10
Canfor	19.25	4.25	14.90
Goodfellow	12.25	7.50	10.50
Home Depot	70	35.75	53 ^5/16
Hudsons Bay	23.85	12.70	17.50
Lowe’s Cos.	67.25	40.75	47 ^15/16
Sears Canada	42.50	18.25	33.00
Taiga Forest	14.75	9.40	9.90
West Fraser	41.00	28.00	33.00

“Always mistrust a subordinate who never finds fault with his superior.” — John Churton Collins (1848-1908)

PEOPLE ON THE MOVE

OVERHEARD…

MARKET INDICATORS

Hardlines Classifieds

* * * * * * *

May 13, 2000

March 13,
2000 – Volume vi, #10

Michael McLarney, Editor & Publisher

Ph: 416-489-3396 Fx: 416-489-6154

Check out our incredible Classifieds
section at the end of this issue!

Hardlines is a little early this week because I’m off to the
Cologne International Hardware Fair. I’ll be back Friday, March 17 –
in time for some St. Patrick’s Day celebrations. Someone will be
holding down the fort at the World Headquarters until then in case
you need to call. And, of course, I’ll have a report on the Cologne
Show in the next issue. – Michael

This week in Hardlines:

SODISCO-HOWDEN
BUYS WESTERN WHOLESALER

Sodisco-Howden
Group has bought up Langley, B.C.-based hardware wholesaler
Smith-Barregar, giving the company a solid presence in the west, and
especially B.C. Smith-Barregar, which has been selling general
hardware to western retailers since 1946, has seen its sales drop
dramatically in recent years. One of its key customers was
Lumberland, which was bought by Revy Home Centres early in 1997.
Since then, the company has been a victim of the soft economy in B.C.

Despite
these challenges, Smith-Barregar continually restructured its
operations and upgraded its facilities, including RF technology in
the warehouse, under the direction of its president and CEO, Ross
Mascoe. Today, it ships to about 400 stores from B.C. to Manitoba. As
a result, the company is “a profitable entity,” says SHG president
and CEO Tony Molluso.

Molluso adds
the company will continue to operate under the S-B name as a division
of SHG, and its existing six-person sales team will remain intact.
“Our intention was not to make any changes,” he says. However, Mascoe
has decided to stay on only until the transition is complete.

S-B’s
general hardware assortment does not include paint, plumbing or
heating, so about 10,000 more SKUs will be added from SHG’s London,
Ont. Howden division to service the west.

* * * * * *
*

RONA
FINALIZES CASHWAY PURCHASE

On March 7,
RONA Inc. finalized its deal to purchase all shares of Cashway
Building Centres Ltd. The total cost of the transaction was close to
$50 million. The operations of Cashway will be consolidated with
RONA’s and its 61 stores across Ontario will operate under the
banner, RONA Cashway. Cashway’s gross revenues in 1999 were $322
million. Jim Pybus, formerly president and COO of Cashway, is now
president of RONA Cashway.

“The
acquisition of Cashway spearheads RONA’s dynamic development strategy
for Canada,” says Robert Dutton, RONA’s president and CEO.

COMPANIES IN THE NEWS

Imperial
Manufacturing Group has recently acquired the assets of Talarico Inc.
(Sheet Metal Division) located in LaSalle, Qué. From this new
facility, Imperial will manufacture HVAC pipe and fittings under the
newly incorporated name I.S.M. Industries Inc.

For the year
ended January 31, 2000, sales by Hudson’s Bay Co. grew 3.1% to $7.296
billion, from $7.075 billion in the previous year. Sales for The Bay
increased 4.4% to $2.594 billion. Same-store sales rose by 4.7%.
Earnings before interest and taxes (EBIT) for the year were $128.2
million, up 146.3% from $52.1 million last year. The Bay had 99
stores comprising 16.9 billion sq.ft. At Zellers, sales for the year
increased 2.2% to $4.598 billion. Same-store sales rose by 2.3%. EBIT
for the year rose 11.8% to $149.6 million from $133.8 million.
Zellers ended the year with 328 stores in 28.3 billion sq.ft.

RONA Inc.’s
new division, focused on the company’s expanding retail operations
across Canada, is operating as RONA-Retail, with new offices at 2 St.
Clair Ave. West, Suite 1700, Toronto, Ont. M4V 1L5.

The Bay held
job fairs last Friday and Saturday to hire 640 new sales people for
four new stores in Ontario. The job fairs were held in the malls of
the new store locations in Newmarket, Pickering, London and Hamilton.

Sears Canada
will open a new Sears department store at Guildford Place shopping
centre in Surrey, B.C. at the location formerly occupied by Eaton’s.
Few changes will be made to the existing store in time for a spring
opening. A major retrofit will take place in 2001. This is Sears’s
second department store in Surrey.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	19.35
Canfor	19.25	4.25	14.25
Goodfellow	12.25	7.50	10.50
Hudsons Bay	23.85	12.70	14.00
Sears Canada	42.50	18.25	37.70
Taiga Forest	14.75	9.40	11.40
West Fraser	41.00	28.00	34.55

“I never
think about the future. It comes soon enough.”

– Albert Einstein

PEOPLE ON THE MOVE

Glen French
has moved from Cashway to join RONA-Retail as vice- president of
merchandising, responsible for developing assortment plans for
expansion across Canada. He was formerly vice-president of new
business development at Cashway.

Marcel Croux
has left RONA Inc., where he was vice-president purchasing and
merchandising. No replacement has been named as yet. (514-599-5100)

Ken Meinert
has joined KML Engineered Homes as president and CEO. He was formerly
president and CEO of CGC Inc. (519-653- 2159)

Mark Grant
has joined The MIBRO Group as a national account manager. He will
look after MIBRO’s key accounts in the Southern Ontario area. Grant
was most recently North American retail sales manager for Monarch
Industries Ltd. (416-285-9000)

Imperial
Manufacturing Group has appointed Kevin Publicover to the newly
created position of chief financial officer. He was previously
controller at ABT Canada Ltd. and with Maritime Tel & Tel and
Doane Raymond Chartered Accountants. (506-523-9117)

Overheard… “I want to leverage the Québec buying offices
as much as possible, while developing a retail division in Toronto
that will be responsible for expansion across Canada.” – Rick
Blickstead, president of the newly formed RONA-Retail division of
RONA Inc., explains how the Toronto buying office will integrate with
the central buying function at RONA’s Boucherville, Qué., head
office and distribution centre.

MARKET INDICATORS

Building
permits dropped slightly in January from December, according to Stats
Canada. Construction intentions were down 5.5% overall, reflecting a
drop in both residential and non-residential sectors. Residential was
down by only 2.3% and single-family construction intentions were
actually up. The month-to-month decrease was due mainly to a drop in
multi-family dwelling intentions, which fell off by 27.6%. Single
family permits actually rose 9.2% to $1.4 billion. Year over year,
residential building permits were actually up by 25.1% over January
1999.

Hardlines
Classifieds

Need to
build your sales team? Looking for agents or new lines? Use Hardlines
classified ads. They’re read by more than 3,000 people every week
&emdash; and they get results fast. Only $16 per line for two weeks.
Call Beverly
Allen
at 416-489-3396, ext. 2, for more details.

* * * * * *
*

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

March 13,
2000 – Volume vi, #10

Michael McLarney, Editor & Publisher

Ph: 416-489-3396 Fx: 416-489-6154

Check out our incredible Classifieds
section at the end of this issue!

This week in Hardlines:

SODISCO-HOWDEN
BUYS WESTERN WHOLESALER

S-B’s
general hardware assortment does not include paint, plumbing or
heating, so about 10,000 more SKUs will be added from SHG’s London,
Ont. Howden division to service the west.

* * * * * *
*

RONA
FINALIZES CASHWAY PURCHASE

“The
acquisition of Cashway spearheads RONA’s dynamic development strategy
for Canada,” says Robert Dutton, RONA’s president and CEO.

COMPANIES IN THE NEWS

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	19.35
Canfor	19.25	4.25	14.25
Goodfellow	12.25	7.50	10.50
Hudsons Bay	23.85	12.70	14.00
Sears Canada	42.50	18.25	37.70
Taiga Forest	14.75	9.40	11.40
West Fraser	41.00	28.00	34.55

“I never
think about the future. It comes soon enough.”

– Albert Einstein

PEOPLE ON THE MOVE

Marcel Croux
has left RONA Inc., where he was vice-president purchasing and
merchandising. No replacement has been named as yet. (514-599-5100)

Ken Meinert
has joined KML Engineered Homes as president and CEO. He was formerly
president and CEO of CGC Inc. (519-653- 2159)

MARKET INDICATORS

Hardlines
Classifieds

* * * * * *
*

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

May8_00

HARDLINES™
Five years serving Canada’s home improvement industry
May 8, 2000 – Volume vi, #18
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* IN THIS ISSUE:
* Kent works on next big box, developing small stores too
* Lansing’s refurbished store focuses solely on contractors
* Tim-BR Mart takes on the Stanley Cup
* Canadian Tire records lower profits in first quarter
* * * * * *

Hardlines Networking Event

PERSONAL MANAGEMENT WORKSHOP El Rancho Relaxo Bar & Grille May 24, 4-9 p.m., Toronto

“Getting Organized” &emdash; Management Workshop with organizational guru Estelle Gee. We’ll have some fun breaking the ice and learning some important self-management skills.

Plus: Country & western band The Wayward Angels. Don’t forget to bring lots of business cards!

Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts, sharpen their personal skills &emdash; and just have fun. Call Bev for details at 416-489-3396, extension 2. Call Beverly at 426-489-3396, ext. 2, or e-mail: bev@hardlinesfax.com for details!

Tickets are only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more! Check out last year’s event!

* * * * * *

Looking for new personnel or new lines? Hardlines Classifieds are read each week by North America’s key decision makers in home improvement retailing and manufacturing. Get results fast. Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.

* * * * * *

KENT PLANS NEXT BIG BOX, DEVELOPS PROTOTYPE FOR SMALL STORES

Kent Building Materials is continuing expansion of both its big box and traditional formats as it braces for the arrival of Home Depot in Atlantic Canada.

Kent currently has five big boxes and 13 building centres. A sixth box is slated to open in St. John, N.B., this fall, where an existing Kent store is being closed to make way for the large-surface outlet. Another big box will open in the Spring of 2001 in St. John’s, Nfld., making it the second for that city. It will be in Mount Pearl, on the opposite side of the city from the existing store.

Kent’s inaugural box store, in Halifax, is currently undergoing expansion from 85,000 sq.ft. to more than 100,000 sq.ft.

Kent is also committed to its traditional format stores, however, says Stewart Valcour, general manager of Kent. The company is currently refurbishing the Truro, N.S., store, which will become the prototype for a concept featuring a larger yard and expanded assortments. “If it flies, we’ll try this concept at other locations,” says Valcour.

* * * * * *

TIM-BR MART NAME GETS NATIONAL PROMO DURING PLAYOFFS

Since expanding the Tim-BR Mart name to all its English-market dealers, Matreco member groups across the country have been working to build brand recognition among consumers, usually with programs specific to each market. Promotion goes national with a TV ad on the Stanley Cup playoffs, which debuted during the Leafs/Devils game on April 29. Various versions of the commercial were produced, including a series of product tags.

Tim-Br-Marts Ltd. in Western Canada lent their (slightly modified) brand name to fellow Matreco members A.W.A.R.D. in Atlantic Canada and Homecare in Ontario as a way to generate a national brand for its member dealers.

“The biggest challenge is making sure the groups represent the same culture across the country,” says Phil Otto of Design Communications. His Bedford, N.S., promotion and design company developed the updated Tim-BR Mart look and logo. He says the brand’s values of home town quality, price and service are important to help consumers “to differentiate from the big boxes and support the guy in your community.”

Each group continues its own initiatives. For example, A.W.A.R.D. just its newest home plans catalogue &endash; a book of home designs and floor plans under the Tim-BR Mart brand. “Our members benefit greatly from the home plans catalogue, because it ensure building supplies are sold as a package, instead of piece by piece,” says Tom Smith, president of A.W.A.R.D.

Homecare in Ontario, the latest Matreco member to adopt the the Tim-BR Mart banner for its dealers, uses ongoing promotions at Toronto Blue Jays baseball games at SkyDome. Every week the group hosts “Tim-BR Mart Tuesday,” complete with deck giveaways and chances to win a cottage.

In the west, Tim-BR-Marts sponsors Shell Busey’s popular Home Check TV program, as well as NASCAR racing and Vancouver Grizzlies games.

* * * * * *

LANSING REFURBISHES ETOBICOKE STORE FOR CONTRACTOR BUSINESS

In response to its growing trade and contractor business, Lansing Buildall has just finished a $1.5-million expansion of its Martin Grove store in Etobicoke, Ont. Originally refitted as Lansing’s model home centre (and head office location), the new format of the store is geared mainly to the trades. It has been expanded to 42,000 sq.ft. of retail, including six-ft. wide aisles with longer runs, 12-ft. high warehouse style racking and a new contractor desk. The entire indoor warehouse section of the location was converted to retail, increasing it from 33,000 sq.ft.

The store features an additional 1,100 products, including trade-specific items like welding equipment and pneumatics, says Rob Wilbrink, vice-president, operations for Lansing Buildall. While a new kitchen and bath boutique has been added, other lines, such as décor, furniture, housewares and some general seasonal, have been scaled back. Thanks to the additional space, “a lot of mouldings came back into the store.”

The store now stocks $10 million in inventory. “We’ve really streamlined the store, with a main aisle running across the front of the store and one across the back, with long runs in between,” reminiscent of a grocery store, Wilbrink adds.

A grand opening was held last Wednesday, with an open house for Lansing’s builder and trade customers.

* * * * * *

CANADIAN TIRE’S FIRST QUARTER RESULTS IMPACTED BY GOOD WEATHER, CEO PAYOUT

Canadian Tire Corp.’s revenues for the first quarter reached $1,104.3 million, up 16.2% from a year earlier, reflecting an 11.7% increase in its retail business. However, consolidated net earnings dropped to $24.2 million, from $31.8 million in the first quarter of 1999, due in part to reduced margins in gasoline, reflected in its petroleum division’s results.

CTC dealers reported first quarter retail sales up 4.4% over the same period of last year. Same-store sales were flat, reflecting a strong first quarter last year, when winter storms in Eastern Canada pushed sales up 10.6%.

Canadian Tire Retail’s gross operating revenue was $833.0 million, up 11.7% from $745.9 million recorded a year earlier, reflecting an 11.5% rise in first quarter shipments to associate dealers. Operating earnings for the quarter were $19.0 million, compared with $28.9 million.

The decline was was attributed to a $4 million payout to CEO Stephen Bachand, who announced he will retire this year, and to expenses associated with the opening of eight new stores. A total of 196 new-format stores have been opened since the beginning of the program. CTC opened 51 new-format stores in 1999 and expects to open 45 more this year, plus up to 20 PartSource stores.

COMPANIES IN THE NEWS

Home Depot, eh? The Home Depot Canada has determined its moniker for Québec will be “Home Depot” without the definite article preceding it. In fact, the name without the “The” will become the one used throughout Canada, and may eventually be the form of the name as the company grows internationally.

TORBSA Ltd. has added the following new member: Clare Interior Supplies Ltd., Hamilton, Ont.

Cameron Ashley Building Products has accepted an offer by Guardian Industries to acquire all its outstanding shares for US$18.35 per share.

Lowe’s intends to invest US$2.2 billion on expansion this year. According to The Hard Fax in the U.S., Lowe’s willl open about 95 new stores, including the relocation of 17 older, small-format stores.

Correction: Sales for Tim-BR-Marts Ltd. were reported incorrectly last week. Sales by all dealers reached $1.2 billion in 1999.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	18.35
Canadian Tire	46.00	19.10	19.60
Canfor	19.25	4.25	16.40
Goodfellow	12.25	7.50	10.40
Home Depot	70	35.75	53.31
Hudsons Bay	23.85	12.70	17.80
Lowe’s Cos.	67.25	40.75	47.81
Sears Canada	42.50	18.25	35.10
Taiga Forest	14.75	9.40	9.95
West Fraser	41.00	28.00	35.50

“I am not a vegetarian because I love animals; I am a vegetarian because I hate plants.” — A. Whitney Brown

PEOPLE ON THE MOVE

Stewart MacLeod has been named group vice-president of home and hardlines at Sears Canada … Frances Magliocchi has been named vice-president of home and hardware, reporting to Macleod. She was formerly national merchandise manager for bed and bath … She has been replaced in that role by Tony O’Sullivan … Ashley Whicher has been promoted to vice-president of imports. He was formerly national business manager for hardware. (416-362-1711)

Joe Driscoll of Byron Building Supplies Ltd. in North Bay, Ont., has been elected president of the Ontario buying group TORBSA for 2000 … Past president is Martin Lieberman of Blair Supply, Concord, Ont. (519-941-5811)

IN MEMORIAM

Jack Weber passed away on May 2, 2000. Jack, who was 68 when he died, was one of the true gentlemen of the industry. He devoted his career to building C.N. Weber Inc. in Kitchener, Ont., where he served as president from 1972 to 1997. He continued as chairman of Weber Supply and Weber Construction Products Group until his death.

His 52-year career was one of integrity and vision. The Weber warehouse was one of the first in North America to use RF (radio frequency) technology. It’s customer service technology was consistently cutting edge, and a recent agreement between the hardware division and one of its customers, Castle Building Centres, reflects the company’s innovative embrace of e-commerce.

Jack was involved in numerous fund-raising activities, and was recipient of awards including The City of Kitchener Award of Merit and the Ontario Outstanding Business Achievement Award.

Jack was also a friend. When I decided to go out on my own after 10 years at Maclean Hunter Publishing, he was one of the first people in the industry I told of my plans. We sat in his booth at the Canadian Home Centre Show eating sandwiches and drinking cans of pop. His words of encouragement and support have remained with me to this day.

He leaves behind his wife Shirley, children Wendy Buder and her husband Jamie, Randy Weber and his wife Linda, and David Weber and his wife Jane. — MM

WOMEN’S CONSUMER PRODUCTS NETWORK

Annette Verschuren, president of Home Depot Canada, will be the guest speaker at the first event by the Women’s Consumer Products Network. It will be held May 16 at the Sheraton Parkway Hotel in Richmond Hill, Ont. The WCPN is also holding its annual golf tournament on June 27. For more information about either event, call: 905-212-3826; fax: 905-274-7646. wcpn99@yahoo.com www.wcpncanada.org (Hardlines is proud to be a sponsor of the WCPN)

MARKET INDICATORS

Housing starts should grow from 149,968 units in 1999 to 158,900 units this year, and increase again to 164,400 in 2001, according to CMHC’s second quarter housing outlook report. In addition, sales of existing homes are expected to rise from 335,170 units to 335,700 this year and 343,200 in 2001.

The value of building permits in March increased 11.5% in March over February. Residential permits rose 11.1% following three consecutive months of declines. In the first quarter of 2000, the value of building permits was $9.6 billion, up 14.9% over the first quarter in 1999. Residential housing intentions rose 16.5% to $5.4 billion. The biggest gains were in the multi-family dwellings, where intentions were up 44.8% to $498 million. Single-family permits were up 2.4% to $1.4 billion.

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Hardlines Networking Event

PERSONAL MANAGEMENT WORKSHOP El Rancho Relaxo Bar & Grille May 24, 4-9 p.m., Toronto

“Getting Organized” &emdash; Management Workshop with organizational guru Estelle Gee. We’ll have some fun breaking the ice and learning some important self-management skills.

Plus: Country & western band The Wayward Angels. Don’t forget to bring lots of business cards!

Tickets are only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more! Check out last year’s event!

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KENT PLANS NEXT BIG BOX, DEVELOPS PROTOTYPE FOR SMALL STORES

Kent Building Materials is continuing expansion of both its big box and traditional formats as it braces for the arrival of Home Depot in Atlantic Canada.

Kent’s inaugural box store, in Halifax, is currently undergoing expansion from 85,000 sq.ft. to more than 100,000 sq.ft.

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TIM-BR MART NAME GETS NATIONAL PROMO DURING PLAYOFFS

In the west, Tim-BR-Marts sponsors Shell Busey’s popular Home Check TV program, as well as NASCAR racing and Vancouver Grizzlies games.

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LANSING REFURBISHES ETOBICOKE STORE FOR CONTRACTOR BUSINESS

A grand opening was held last Wednesday, with an open house for Lansing’s builder and trade customers.

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CANADIAN TIRE’S FIRST QUARTER RESULTS IMPACTED BY GOOD WEATHER, CEO PAYOUT

COMPANIES IN THE NEWS

TORBSA Ltd. has added the following new member: Clare Interior Supplies Ltd., Hamilton, Ont.

Cameron Ashley Building Products has accepted an offer by Guardian Industries to acquire all its outstanding shares for US$18.35 per share.

Correction: Sales for Tim-BR-Marts Ltd. were reported incorrectly last week. Sales by all dealers reached $1.2 billion in 1999.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	18.12	7.25	18.35
Canadian Tire	46.00	19.10	19.60
Canfor	19.25	4.25	16.40
Goodfellow	12.25	7.50	10.40
Home Depot	70	35.75	53.31
Hudsons Bay	23.85	12.70	17.80
Lowe’s Cos.	67.25	40.75	47.81
Sears Canada	42.50	18.25	35.10
Taiga Forest	14.75	9.40	9.95
West Fraser	41.00	28.00	35.50

“I am not a vegetarian because I love animals; I am a vegetarian because I hate plants.” — A. Whitney Brown

PEOPLE ON THE MOVE

IN MEMORIAM

Jack was involved in numerous fund-raising activities, and was recipient of awards including The City of Kitchener Award of Merit and the Ontario Outstanding Business Achievement Award.

He leaves behind his wife Shirley, children Wendy Buder and her husband Jamie, Randy Weber and his wife Linda, and David Weber and his wife Jane. — MM

WOMEN’S CONSUMER PRODUCTS NETWORK

MARKET INDICATORS

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