May 6, 2000

March 6, 2000 – Volume vi, #9
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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

Once again, I want to thank everybody who attended or sponsored our first ever HARDLINES CONTRACTOR CONFERENCE 2000. (And watch for details of our NEXT exciting contractor event):

– Steve Johns of Lumber and Building Materials Association of Ontario
– Ian Gray at Dimensions Retail Systems
– Christine Waldeck of American Tools
– Steve Payne, Canadian Contractor magazine

* * * * * * *

CANADA’S TOP RETAILERS: THE HARDLINES WHO’S WHO

This directory must be useful because it’s selling like hotcakes. I don’t think there’s a sales team left in Canada that doesn’t have one. But if you’re one of the unlucky few, order your copy of the Hardlines Who’s Who today. It’s a comprehensive guide to Canada’s leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers and their responsibilities. The cost for the Hardlines Who’s Who is only $105 for Hardlines subscribers and $135 for non-subscribers. Order your own copy of the Hardlines Who’s Who today!

This week in Hardlines:

STAR BUILDING MATERIALS FLOURISHES AMIDST WINNIPEG BOX STORES

Yes, DIY sales at Star Building Materials are down 40% since the boxes arrived in Winnipeg two years ago, Don Vincent admits. But they only accounted for 5% of the overall business to start with.

“We’ve more than made up for it in other ways,” says the company’s general manager.

While he misses the margins of retail, he doesn’t miss the headaches that come with the high maintenance of DIYers, choosing instead to focus on the healthy contractor trade in the Winnipeg market. In 1997, Star had sales of about $28 million. The company has since bought Kilcona Lumber and the contractor division of Dominion Lumber &emdash; and built a new truss shop. The result is healthy sales increases and a niche that keeps Star from going toe-to-toe with the boxes. It specializes in commodities, leaving the décor and fixtures to Home Depot and Revy.

Vincent says margins on commodities, especially drywall and insulation, are affected by the big boxes, but he won’t compete on price in those lines. “It’s a bit of a dilemma, but we’re not going to sell it below cost.”

* * * * * * *

HOME AND BEAVER FOCUS ON INTEGRATION

Even though it’s part of Home Hardware now, Beaver Lumber continues aggressively to market the Beaver brand as an option for independent dealers.

Jack Costigan, in charge of business development for Beaver, says potential new members will be encouraged to take the Beaver banner if they are building materials dealers. “The Beaver name is more accepted from a lumber and building materials perspective,” he says. “That’s one of the strong points of our brand.”

Beaver and Home have stores which conflict only in 25 markets, and reconciling those conflicts will be done on a case-by-case basis, with no changes before year’s end.

COMPANIES IN THE NEWS

Instead of holding its own warehouse sale for dealers again this spring, Smith-Barregar threw its support behind the BSDA of B.C.’s second annual conference, taking a major participation role. The event ran this weekend in Richmond and played host to delegates from 125 stores.

Home Depot Canada has remodelled its North Surrey store, even holding a grand re-opening this past weekend to re-establish its commitment to a market that’s still soft. Revy has already announced it will yank its Surrey store, while Home Depot’s two stores there are reportedly underperformers for the company.

CGC Inc. has announced a new corporate identity, CGC, A USG Company, and a new logo. The company formerly operated under two divisions, Canadian Gypsum Co. and CGC Interiors.

For the year ended December 31, 1999, Premdor had sales of US$1.14 billion, a 20% increase over the US$952.4 million reported in the same period in 1998. Net income for the year was US$43.8 million, up 42% over US$30.8 million in the same period a year earlier. Sales for the three month period ended December 31, 1999 were US$285.2 million, a 20% increase over the US$237.9 million reported in the same period in 1998. Net income for the fourth quarter was US$9.8 million, a 35% increase over the same period in 1998.

Wal-Mart Stores is ending butchering operations at 180 Supercenter stores, following the chain’s first successful U.S. vote to unionize. The United Food and Commercial Workers Union claimed the traditionally non-union company was trying to block future membership drives by meat workers that could in turn open the door for organizing other employees. The controversy centres on the 10-person department at a Wal-Mart Supercenter in Jacksonville, Tex., which voted 7-3 to join the UFCW. The first Wal-Mart store in Windsor, Ont., is the only other outlet in the chain that has unionized workers.

Do it Best Corp. has increased its commitment to the nautical market by adding 275 Seachoice Products to its lineup. The company makes DIYproducts for small- and medium-sized boat repairs and improvements.

Lafarge Corp. and Rock-Tenn Co, a U.S. recycled paperboard producer, will form a joint venture to produce gypsum paperboard liner for Lafarge’s U.S. drywall manufacturing plants. Called Seven Hills Paperboard, it will own and operate a paperboard mill located at Rock-Tenn’s Lynchburg, Va., manufacturing site. Lafarge owns 51% and Rock-Tenn 49% of the joint venture.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	19.25
Canfor	19.25	4.25	14.85
Goodfellow	12.25	7.50	10.70
Hudsons Bay	23.85	12.70	13.50
Sears Canada	42.50	18.25	37.50
Taiga Forest	14.75	9.40	11.00
West Fraser	41.00	28.00	36.00

“I send you forth as sheep in the midst of wolves: be ye therefore wise as serpents, and harmless as doves.”
&endash; Matthew, x:16

PEOPLE ON THE MOVE

Dave Nickel has been promoted to the position of assistant vice-president and general merchandise manager, non-foods, at Costco in Burnaby, B.C. He was formerly assistant general manager for softlines. He replaces Glen Drain, who retired from the company.

Mike Springer has joined Horizon Plastics as North American sales manager, headquartered in Cobourg, Ont. The company produces injection moulded products for the automotive, toy, lawn & garden and plumbing industries. Springer was formerly with MAAX/Novi. (905-372-2291)

Brian Schnabel has been appointed COO of TruServ Corp. in Chicago. Schnabel most recently served as vice-president of business development, and before that was president and CEO of Elmer’s Products. (773-695-5000)

Correction: Bob Emmell, national sales manager for Selkirk Canada, was formerly eastern regional manager. Tim Valters, vp and general manager of Selkirk Canadian Operations, was previously vice-president and general manager of Supervent Products Inc. (905-662-6600)

Overheard… “It’s fantastic for us. It brings more purchasing volume together for us. Bigger and better is what everyone is focusing on these days.”&emdash; Greg Thomas, executive director of Alliance International LLC, says the merger of Beaver Lumber with Home Hardware is good news for his buying group, whose members comprise Home, RONA and Do it Best Corp.

MARKET INDICATORS

Lumber shipments from sawmills and planing mills rebounded in 1999, says Stats Canada, with demand coming from both domestic and international markets. Shipments totalled 68.9 million cubic metres last year, up 4.9% over 1998. The increase follows a 2% decline in ’98, the first decline in seven years. Increased housing starts both in Canada, where they were up 8.2%, and the U.S., where they increased 3.2%, plus the economic recovery in Asia, all contributed to the increase. Lumber shipments to the U.S. increased 14.2% in 1999, despite the restrictions of the softwood lumber pact. Exports to Asia were up 14.9%. Lumber prices, consequently, rose almost 9% last year.

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 6, 2000 – Volume vi, #9
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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

Once again, I want to thank everybody who attended or sponsored our first ever HARDLINES CONTRACTOR CONFERENCE 2000. (And watch for details of our NEXT exciting contractor event):

– Steve Johns of Lumber and Building Materials Association of Ontario
– Ian Gray at Dimensions Retail Systems
– Christine Waldeck of American Tools
– Steve Payne, Canadian Contractor magazine

* * * * * * *

CANADA’S TOP RETAILERS: THE HARDLINES WHO’S WHO

This week in Hardlines:

STAR BUILDING MATERIALS FLOURISHES AMIDST WINNIPEG BOX STORES

Yes, DIY sales at Star Building Materials are down 40% since the boxes arrived in Winnipeg two years ago, Don Vincent admits. But they only accounted for 5% of the overall business to start with.

“We’ve more than made up for it in other ways,” says the company’s general manager.

* * * * * * *

HOME AND BEAVER FOCUS ON INTEGRATION

Even though it’s part of Home Hardware now, Beaver Lumber continues aggressively to market the Beaver brand as an option for independent dealers.

Beaver and Home have stores which conflict only in 25 markets, and reconciling those conflicts will be done on a case-by-case basis, with no changes before year’s end.

COMPANIES IN THE NEWS

CGC Inc. has announced a new corporate identity, CGC, A USG Company, and a new logo. The company formerly operated under two divisions, Canadian Gypsum Co. and CGC Interiors.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	19.25
Canfor	19.25	4.25	14.85
Goodfellow	12.25	7.50	10.70
Hudsons Bay	23.85	12.70	13.50
Sears Canada	42.50	18.25	37.50
Taiga Forest	14.75	9.40	11.00
West Fraser	41.00	28.00	36.00

“I send you forth as sheep in the midst of wolves: be ye therefore wise as serpents, and harmless as doves.”
&endash; Matthew, x:16

PEOPLE ON THE MOVE

MARKET INDICATORS

Hardlines Classifieds

* * * * * * *

May1_00

HARDLINES™
Five years serving Canada’s home improvement industry
May 1, 2000 – Volume vi, #17
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

Check out our incredible Classifieds section!

* * * * * *
* Home Depot consolidates western buying office
* TruServ rebates up, unaffected by U.S. troubles
* Rona mounts comprehensive assault on e-retailing
* Tim-BR-Marts has best year ever
* * * * * *

Check out our Hardlines Classifieds: 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.

* * * * * *

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.

* * * * * *

HOME DEPOT CONSOLIDATES ITS WESTERN BUYING OFFICE

The western buying office of Home Depot Canada was scaled back as of last week. A number of buyers are being brought back to the main office in Toronto, effective today, leaving behind nine people, including “field merchants,” regional buyers who will continue to make regional buys in lumber, some building materials and seasonal products, especially live goods.

The field merchants will report directly to Toronto. This arrangement, using regional buyers to handle far flung markets within a division, reflects Home Depot’s buying structure in the U.S.

Three senior buyers have been put in charge of the entire country: Eric Schmidt, who formerly ran the western office, is now divisional merchandise manager for seasonal, plumbing and heating; Joe Allen is divisional merchandise manager for LBM and hardware; and Rick Keeper is now divisional merchandise manager for décor.

In the shuffle, three merchants are gone, including Rob Lawton in the east, and Peter Thompson, a junior buyer for millwork from the west.

* * * * * *

TRUSERV CANADA NOT AFFECTED BY U.S. ACCOUNTING WOES

Recent accounting woes plaguing TruServ Corp. in the U.S. have not affected the Canadian operation in any way, says TruServ Canada president David Grubbe. “Because we operate as a separate company, we’re not tied into their financing.”

TruServ Canada’s only fiscal connection is a small annual royalty fee and repayment of the loan financed by TruServ Corp. for the initial buyout of Mcleod-Stedman Inc.

More than US$131 million disappeared from the books of the U.S. operation, resulting in a loss of dealer dividends for 1999. In Canada, however, says Grubbe, not only will patronage dividends be paid out, but they are 6% higher than they were for 1999.

The discrepancy in the U.S. arose as Cotter and ServiStar/Coast-to- Coast merged operations over the past two years. ServiStar’s product costs, were, on average, higher than Cotter’s. But product from ServiStar was added to TruServ’s inventory at its higher cost, and the lower value was not subsequently written down to reflect TruServ’s input costs.

* * * * * *

RONA WILL INVEST $50 MILLION TO EXPAND ITS E-COMMERCE

Rona Inc. has joined with nurun Inc., the information technology division of Quebecor, to expand Rona’s online selling capabilities. Under the agreement, nurun will provide the tech know-how to develop Rona’s e-commerce hardware business. Rona intends to invest $50 million over five years to underwrite the venture and expects to reap $500 million in sales within three years.

The agreement provides for analysis and implementation of five key functions: integration of product databases, an Intranet, customer relation management, business intelligence tools, and an Extranet.

The business relationship between nurun and Rona began when a division of nurun called Intellia set up Rona’s website in 1998. The company’s first foray into online selling began last fall, when it introduced 500 products online at http://www.rona.ca for the Christmas season.

Eventually, says Rona president Robert Dutton, the company intends to sell more than 25,000 products online, using Rona’s dealer network to help distribute them. The project will initially target Rona’s industrial customers, sold under Rona’s Industrium banner.

Dutton says the new venture is part of an overall strategy to redefine Rona’s business. “Using nurun expertise, Rona will develop a business model that goes well beyond the actual online sales site. Needless to say we will be asking some deep questions about our conventional ways of doing business.”

COMPANIES IN THE NEWS

Tim-BR-Marts Ltd. reported its best year ever for 1999, despite the still-slow British Columbia economy. Profits hit a high, says president and CEO Barrie Sali, while sales overall reached $1.1billion. Tim-BR-Marts has 125 dealers with 189 yards.

Revy Home & Garden Warehouse opened its “stockyards” location on Saturday, its third big box in the Greater Toronto Area. It’s beside a Home Depot and Canadian Tire. The 85,000-sq.ft. outlet features a one-acre yard and 15,000-sq.ft. garden centre.

The distribution function of Stanley Garage Doors & Openers in Canada has been taken over by Standor, which will serve the retail dealer and professional installer markets across Canada from 1401 Meyerside Dr., Mississauga, Ont. L5T 1G8. Phone: 905-565-0703.

For the first quarter ended April 1, 2000, unaudited net income for Sears Canada Inc. increased 36% to $23.5 million, compared with $17.2 million during the same period a year earlier. Sales for the quarter increased by 13.9% to $1.434 billion, compared with $1.259 billion last year. Same-store sales rose 10%.

Emco Ltd. had first quarter sales of $274.5 million, an 11% increase over the last year. Net earnings were $1.0 million, compared with $0.6 million for the same period in 1999. Operating earnings for the first three months of 2000 were $5.9 million, up 47% from $4.0 million in 1999. Emco Distribution’s first quarter sales were $209.8 million, up 9%.

Westburne Inc. had sales for the first quarter ended March 31, 2000, of $648.3 million, up 26.5% from the same period last year. The increase was due both to acquisitions and strong growth of 10.5%. Canadian operations generated a year-over-year growth of 14% (12.5% excluding acquisitions), primarily in Ontario and Eastern Canada.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	17.81	7*	17*
Canadian Tire	46.00	18.10	20.40
Canfor	19.25	4.25	18.00
Goodfellow	12.25	7.50	10.50
Home Depot	64 ^9/16	58	58*
Hudsons Bay	23.85	12.70	17.60
Lowe’s Cos.	51 ^3/16	49 ^1/8	49*
Sears Canada	42.50	18.25	36.00
Taiga Forest	14.75	9.40	9.85
West Fraser	41.00	28.00	35.50

“Creative minds always have been known to survive any kind of bad training.” — Anna Freud

PEOPLE ON THE MOVE

Dave Ferguson, president and CEO of Wal-Mart Canada Inc., was named Distinguished Canadian Retailer of the Year for 2000. The award, presented annually by Retail Council of Canada, honours outstanding achievement and leadership in both the corporate and community sectors. (416362-1711)

Some changes at GE Lighting Canada following the departure of Patrick Smith as Canadian general manager: Sue Feere is the new channel manager, consumer, responsible for Canadian sales on the consumer side … Pat Haughey is newly appointed channel manager, commercial and industrial for Canada … Mark Odorico has been named channel manager, automotive for Canada … Kevin Breakingbury has been appointed marketing manager for Canada … Lyne Castonguay is now eastern sales manager … Kathleen Simard is Pacific northwest region sales manager, responsible for Western Canada and Washington, Oregon and Alaska … Peter Gurney is now ballast manager for Canada. (905-849-2924)

Overheard …
How do you like that traffic. They’re driving right by Home Depot’s parking lot. – Carl Grittner, president of Revy Home Centres, at the opening of the third Revy big box in Toronto. The store is at the back of the Stockyards property, behind a Home Depot and Canadian Tire.

Overheard …
“I wish I’d had ’em earlier.” – John Kitchen, president of president of Lansing/Revy, comments on the quick payback from large- surface stores, compared with traditional building centres. The new Revy store is expected to be profitable within a year.

Noted …
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.

MARKET INDICATORS

Retail trade dropped by 1.1% in February from January, according to Stats Canada. Total purchases by consumers were $22.3 billion. However, sales were up 4.9% in February over the same month in 1999. Department stores wer down 2.2%. “Other retailers” (including hardware) were down 1.2% from January to February.

CALENDAR UPDATE:

Hardlines Networking Event

Registrations are starting to pour in for our third annual Hardlines Networking Event. This is a great way to hone your personal management skills, meet some colleagues from the retail packaged goods industry and enjoy a live country and western band. It’s on May 24 in Toronto at the Rancho Relaxo Bar & Grille. It features Estelle Gee, an organizational expert who will tell us how to clear the clutter from our desks – and our lives. 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!

Hardlines Classifieds

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

* * * * * * *

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

Check out our incredible Classifieds section!

* * * * * *

HOME DEPOT CONSOLIDATES ITS WESTERN BUYING OFFICE

The field merchants will report directly to Toronto. This arrangement, using regional buyers to handle far flung markets within a division, reflects Home Depot’s buying structure in the U.S.

In the shuffle, three merchants are gone, including Rob Lawton in the east, and Peter Thompson, a junior buyer for millwork from the west.

* * * * * *

TRUSERV CANADA NOT AFFECTED BY U.S. ACCOUNTING WOES

TruServ Canada’s only fiscal connection is a small annual royalty fee and repayment of the loan financed by TruServ Corp. for the initial buyout of Mcleod-Stedman Inc.

* * * * * *

RONA WILL INVEST $50 MILLION TO EXPAND ITS E-COMMERCE

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Cameron Ashley	17.81	7*	17*
Canadian Tire	46.00	18.10	20.40
Canfor	19.25	4.25	18.00
Goodfellow	12.25	7.50	10.50
Home Depot	64 ^9/16	58	58*
Hudsons Bay	23.85	12.70	17.60
Lowe’s Cos.	51 ^3/16	49 ^1/8	49*
Sears Canada	42.50	18.25	36.00
Taiga Forest	14.75	9.40	9.85
West Fraser	41.00	28.00	35.50

“Creative minds always have been known to survive any kind of bad training.” — Anna Freud

PEOPLE ON THE MOVE

MARKET INDICATORS

CALENDAR UPDATE:

Hardlines Networking Event

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

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: 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.

April17_00

HARDLINES™
Five years serving Canada’s home improvement industry

April 17, 2000 – Volume vi, #15
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

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

* * * * * *
* Beaver name to disappear starting in December
* Home Hardware introduces installed sales at spring market
* WINROC buys another U.S. drywall distributor
* Slocan reports record earnings for 1Q
* Revy’s stockyards store delayed by bad weather
* * * * * *

CALENDAR UPDATE:
PEOPL ARE SIGNING UP LIKE CRAZY! OUR AMAZING NETWORKING EVENT.

Nitty Gritty C&W at Spadina and College! El Rancho Relaxo Bar & Grille: Toronto, May 24, 4-9 pm

“Getting Organized” – Management Workshop with organizational guru Estelle Gee. Enough about all this e-commerce stuff already. I can’t even find anything on my desk! You too? Ok then. Join us. We’ll have some fun breaking the ice and learning some important self-management skills. Plus: Killer country & western band The Wayward Angels. Don’t forget to bring lots of business cards – and your cowboy boots!

Tickets are only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more!

Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts – and just have fun. Check out last year’s event!

* * * * * *

HOME WILL DROP BEAVER NAME STARTING DECEMBER

Beaver Lumber stores will begin converting to Home Hardware commencing December 15. Beaver dealers will become either Home Building Centres if they are traditional lumber yards, or Home Hardware Building Centres if they offer broader assortments of hardware, housewares and giftwares in their stores. The 138 Beaver dealers will bring Home’s ranks of LBM stores to 474.

The December date is also the beginning of Home’s conversion of the Beaver stores from Ace Hardware to its own distribution system and products – and to full ownership of their stores. The changeover will be ongoing until the end of March. During that period, as each store is converted, it will change its banner as well.

“We feel we can make the whole transition [of each store] all at once,” says Paul Straus, vice-president and CEO of Home Hardware Stores. “We realized two banners would have worked, but one banner will work even better,” he adds. He expects all the Beaver dealers to have achieved full ownership of their businesses by March 31.

There were 25 markets where Home and Beaver stores were in direct competition. Two areas have already been resolved. In Duncan, B.C., the Home dealer wanted to exit the business, so the Beaver dealer bought him out. In Cranbrooke, B.C., the corporately- owned Home outlet was closed and inventory sold to the Beaver, who owns a parcel on the edge of town, near a Wal-Mart. “We hope to build a new, bigger store there,” says Straus.

The remaining stores that are in conflict will be sorted out on a case-by-case basis.

* * * * * * *

WINROC GROWS ITS U.S. PRESENCE

Calgary building materials distributor WINROC Corp. has bought up a wholesaler in Salt Lake City, Utah, its sixth in the U.S. Wasatch Building Materials is a specialty drywall distributor to the wall and ceiling industry. Founder Terry Smith joins WINROC as head of its newly formed Layton Division. WINROC has 19 distribution centres across Canada.

WINROC is on the lookout for further acquisitions, seeking to add to its geographic diversity and build on its current sales of $300 million.

COMPANIES IN THE NEWS

Revy’s “stockyards” store in Toronto’s west end will have its soft opening today, with a grand opening on April 29. The store was supposed to open earlier this month, but was delayed because the development of a parcel of land adjoining the store that will house the store’s lumber yard was held up by zoning and by last week’s cold snap, which held up the paving of the yard.

Sales in the first quarter of 2000 for Slocan Forest Products Ltd. were $268.9 million, compared with sales of $251.6 million in the first quarter of 1999, a 7% improvement. Net earnings were $31.8 million, compared with net earnings of $18.8 million a year earlier, a 69% increase. The strong results are reflected in the value of the company’s stock, which has risen by more than $6.21 &endash; or 14% per share &endash; during the first quarter.

Parts of Canadian Tire’s erstwhile distribution centre in North York, Ont., were converted last year into a retail “lab.” Called Retail City, it features fully merchandised “A” and “C” sized test stores, and a PartSource store. The test stores are used for everything from staff training and line reviews to focus groups and TV commercials. CTC’s latest move, to more upscale assortments in lines such as sporting goods and housewares, was fine-tuned at Retail City.

Home Hardware’s Spring Market is on now until Tuesday in St. Jacob’s, Ont. New programs being introduced include a kitchen and bath projects book for consumers and an installed sales program for its LBM dealers, following the lead of other groups, such as A.WA.R.D. and Castle, which already have programs of their own.

Cameron Ashley Building Products continues its discussions with potential buyers. A bid of US$18.25 per share from a team led by CABP’s management has been accepted by the board, but needs ratification by shareholders. Meanwhile Guardian Industries, through its subsidiary Guardian Fiberglass Inc., has countered with a bid of US$18.50.

Home Depot will begin resume carrying Maytag appliances, including high-end Jenn-Air brand products, in Canada and the U.S. beginning in May.

Sears began offering lawn and garden tools and equipment online last week. The site, www.sears.com, features more than 600 lawn and garden tools and equipment, including hand tools, portable power lawn tools, mowers and trimmers, gas grills. Larger products, such as lawn tractors, are available to view online and purchase at local Sears stores and will be available for online purchase and delivery in June.

Profitmaster Canada has joined the growing ranks of companies offering online services. www.openorderdesk.com allows retailers to link directly with their contractors and other customers electronically. The system will be launched June 1.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	18.40	20.40
Canfor	19.40	5.15	17.80
Goodfellow	12.55	7.90	10.50
Home Depot	69	35*	64*
Hudsons Bay	23.85	12.50	17.90
Lowe’s Cos.	65*	4*	56 ^23/32
Sears Canada	42.50	27.60	36.00
Taiga Forest	14.75	9.25	10.10
West Fraser	41.00	28.00	35.50

“Men of power have no time to read, yet the men who do not read are unfit for power.” – Michael Foot (British politician)

PEOPLE ON THE MOVE

Castle Building Centres Group has appointed Ron Reiche of C.A. Reiche & Sons in Pembroke, Ont., as chairman of its board of directors … John Mahar of Topmar Building Supplies in Fredericton, N.B., has been appointed vice-chairman – Brian Warr of Warr’s Castle Building Centre in Springdale, Nfld., continues on as secretary treasurer. (905-564-3307)

The Bay has added two new names to its senior executive team, effective May 1: Neil Fedun will assume the role of senior vice-president marketing. He was most recently group vice-president, creative director for Federated Department Stores in New York. Before that, he was vice-president of marketing at Woodwards and Simpsons in the early ’90s … Gary D’Andrea joins as vice-president finance. He was most recently chief financial officer and assistant managing director of Blockbuster Canada.

NOTED …

We’ve tabulated the results of our latest Hardlines Readership Survey. Thanks to everyone who responded so promptly. I’ll share some results of it with you in a week or two. And congratulations to John Hammill of Moen Inc., who won the draw for two tickets to the musical The Lion King at the Princess of Wales Theatre in Toronto! – Michael

MARKET INDICATORS

The new housing price index rose 0.4% in February from January, the highest monthly increase in four years, according to Stats Canada. On an annual basis, this index of contractors’ selling prices for new houses increased 2.1%. The largest increases were in Kitchener-Waterloo and London, Ont. (+1.5%). Higher prices for building materials, especially drywall and insulation, as well as higher labour costs, contributed to the increases.

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™
Five years serving Canada’s home improvement industry

April 17, 2000 – Volume vi, #15
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

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

CALENDAR UPDATE:
PEOPL ARE SIGNING UP LIKE CRAZY! OUR AMAZING NETWORKING EVENT.

Nitty Gritty C&W at Spadina and College! El Rancho Relaxo Bar & Grille: Toronto, May 24, 4-9 pm

Tickets are only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more!

Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts – and just have fun. Check out last year’s event!

* * * * * *

HOME WILL DROP BEAVER NAME STARTING DECEMBER

The remaining stores that are in conflict will be sorted out on a case-by-case basis.

* * * * * * *

WINROC GROWS ITS U.S. PRESENCE

WINROC is on the lookout for further acquisitions, seeking to add to its geographic diversity and build on its current sales of $300 million.

COMPANIES IN THE NEWS

Home Depot will begin resume carrying Maytag appliances, including high-end Jenn-Air brand products, in Canada and the U.S. beginning in May.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	18.40	20.40
Canfor	19.40	5.15	17.80
Goodfellow	12.55	7.90	10.50
Home Depot	69	35*	64*
Hudsons Bay	23.85	12.50	17.90
Lowe’s Cos.	65*	4*	56 ^23/32
Sears Canada	42.50	27.60	36.00
Taiga Forest	14.75	9.25	10.10
West Fraser	41.00	28.00	35.50

“Men of power have no time to read, yet the men who do not read are unfit for power.” – Michael Foot (British politician)

PEOPLE ON THE MOVE

NOTED …

MARKET INDICATORS

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.

* * * * * * *

April10_00

HARDLINES™
Five years serving Canada’s home improvement industry

April 10, 2000 – Volume vi, #14
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

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

* * * * * *
* Canadian Tire goes after more department store customers with upscale assortments
* The Bay reveals its new positioning strategy
* Amazon.com starts an online lawn & garden store
* Home Depot scoops one of Rona’s buyers for its Montréal team
* Sales of hardware and lawn & garden products in department stores grows 10% in 1999
* * * * * *

CALENDAR UPDATE:
OUR AMAZING NETWORKING EVENT

Nitty Gritty C&W on Queen St. West! Rancho Relaxo Bar & Grill: Toronto, May 24, 4-9 pm

“Getting Organized” &emdash; Management Workshop with organizational guru Estelle Gee. Enough about all this e-commerce stuff already. I can’t even find anything on my desk! You too? Ok then. Join us. We’ll have some fun breaking the ice and learning some important self-management skills.

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

Tickets are only $79 + GST each and include drinks, fahitas, entertainment, prizes and more!

Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts &emdash; and just have fun. If you’re in sales, marketing, buying, operations or admin, this is a great way to meet other people in your industry. Check out last year’s event!

* * * * * *

CANADIAN TIRE PURSUES FEMALE, UPSCALE CONSUMERS

Canadian Tire’s latest remerchandising efforts position the company more than ever as a mass merchant competing against the likes of Sears. An update of its “class of” remodelling program initiated in the early ’90s, the “Next Generation” features more national brands and more upscale assortments.

Sporting goods will include the latest in fishing accessories, bicycles will no longer be strictly lower end starter models but include $500- plus bikes; and even patio furniture now includes price points as high as $1,500. In the housewares department alone, some 600 SKUs have been added, including $500 sets of pots and pans, providing items that shoppers would typically go to Sears in search of, says Wayne Sales, CTC’s executive vice&endash;president.

One admitted goal of the new assortments is to reach the female customer more effectively, says Sales. This aim is also reflected in new merchandising and layouts. On entering the new store, departments are signed by pictograms and fixtures at the front of the store have been lowered to four ft., giving the customer a clear view of the paint department, flanked by lighting and electrical, at the back. National brand logos paper the tops of the walls.

Power tools have been moved front and centre (where a Tim Horton’s coffee kiosk once would have been) and “boutiqued,” similar to a big box. Clearer signage in camping and sporting goods attempts, with less success, a boutique approach, as well. Another tip from the big boxes is reflected in higher endcaps, up to 108 inches from 84 inches. Aisles are broken up with six-ft. wide breaks to provide crossover access, a response to criticisms by shoppers who didn’t like having to walk all the way to the end of an aisle to move on.

* * * * * * *

BAY REPOSITIONS ITSELF FOR THE BOOMER MARKET

Watch for a new look from The Bay this spring, says Marc Chouinard, the retailer’s president and COO. More seasonal selling, remerchandising and greater emphasis on national brands (see Canadian Tire story in this issue) all reflect a clearer focus on its target customer &emdash; the 35-55 year old baby boomer.

And that means leaving the lower end to Wal-Mart and pulling back on the high end, Chouinard told a group of vendors at last week’s annual meeting of the Canadian Hardware and Housewares Manufacturers Association in Toronto. “Wal-Mart and Sears are growing because they are best at pursuing the value proposition in Canada,” he said.

Besides value, however, people seek brands and quality, and that’s what The Bay is aiming at, to capture some of the market share owned by specialty retailers like Gap. So watch for more national brands in stores and a reduction of its own myriad of private labels to half a dozen by the fall. The new strategy is reflected in a new slogan: “Stylish ideas made easy.” The company will focus more on hard goods such as furniture, after years of increasing its soft lines did not have the desired impact on profitability.

* * * * * * *

AMAZON.COM ENTERS THE LAWN & GARDEN/OUTDOOR MARKET

Amazon.com has launched a new online lawn & patio store, featuring outdoor grills, patio furniture, birdfeeders, lawn mowers, garden tools and decorative ornaments from more than 50 national brands.

Shipping for all products (even something as large as a riding lawnmower) is US$4.95. At the new website, customers can browse through 13 categories: birds and wildlife, clothing and gear, decoration and lighting, furniture, outdoor cooking, ponds and structures, pots and planters, power equipment, seeds and fertilizer, storage and cleanup, tools, watering, and weed and pest control. Click on: www.amazon.com/lawnandpatio/

COMPANIES IN THE NEWS

Turkstra Lumber had its annual contractor appreciation night on April 5. It drew an estimated 2,000 tradespeople from throughout Southern Ontario’s Niagara Peninsula, customers of Turkstra’s nine- store chain, and featured about two dozen vendors in a small trade show.

Beaver Lumber dealers will be closer to owning 100% of their businesses starting in December 2000. That’s when Home Hardware, which acquired Beaver last fall, will initiate the process of sorting out financing needed by each dealer to buy the half of their businesses formerly owned by Beaver Lumber itself.

Guardian Industries Corp. and its affiliate, Builder Marts of America Inc., have revised their bid to purchase all outstanding shares of Cameron Ashley Building Products, offering US$18.50 per share. This ups the ante from an offer from CABP’s own management team, headed by chairman Ron Ross, of US$17.00 per share.

Sodisco-Howden Group finalized its purchase of western hardware wholesaler Smith-Barregar on April 3. The cash deal gives SHG three distribution centres: Victoriaville, Qué., London, Ont., and Vancouver.

Approximately 43,000 sq.ft. of a 103,000-sq.ft. former Eaton’s location at Carrefour Angrignon in LaSalle, Qué., will be converted to a Sears Furniture and Appliances store. The store is scheduled to open in early fall.

Zellers Inc. has opened a new flagship store at a former Eaton’s in the Square One Mall in Mississauga, Ont. The 167,000-sq.ft. site is part of a store upgrade program that began with the acquisition of 67 Kmart stores in February 1998. The new Zellers features wider, “stroller-friendly” aisles, improved departmental layouts and adjacencies, enhanced signage and sightlines, more accessible display units and store fixtures, and the addition of a diner.

Rayovac has announced a price increase for selected products, effective May 29, 2000. The overall price for the products will increase on average by 4-5%, depending on the product. The company says it will use some of the funds to invest in R&D.

Nu-Gro Corp. has announced its intention to purchase the assets of Agrola Inc. in Crossfield, Alta. The 6.8-acre property, 40 km north of Calgary, will facilitate continued growth of Nu-Gro, while its 1.4- acre Calgary location will be sold off. The deal, worth $4 million, is expected to close during 3Q 2000.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	18.40	21.25
Canfor	19.40	5.15	16.75
Goodfellow	12.55	7.90	10.30
Home Depot	69	35*	64 ^1/8
Hudsons Bay	23.85	12.50	15.50
Lowe’s Cos.	65*	4*	60 ^5/8
Sears Canada	42.50	27.60	36.25
Taiga Forest	14.75	9.25	10.30
West Fraser	41.00	28.00	36.00

“There is, of course, no reason for the existence of the male sex except sometimes one needs help with moving the piano.” &endash; Rebecca West (1892-1983)

PEOPLE ON THE MOVE

Eric Zellinger has moved over from RONA Inc. to Home Depot Canada as seasonal merchant for live goods on Québec buying team. (416-609-0852)

Mona Caplan has joined the Coleman outdoor division of Sunbeam Canada as national account manager. She was formerly at Royal International. (905-501-0090)

Fred Pierce, vice-president of Patrick Plastics, has been elected chairman of the board of the Canadian Hardware and Housewares Manufacturers Association for 2000-2001 … First vice-president is Pierre Vachon of Sico; second vice-president is Michael Trottman of Newell Rubbermaid Canada. (416-282-0022)

John Collins has joined Master Lock Canada as retail sales manager. He will manage national accounts and oversee Master Lock’s rep agencies across the country. He was formerly with Sercobest N.A. (1-800-227-9599)

NOTED …

The Canadian Hardware and Housewares Manufacturers Association raised $11,600 for Easter Seals at its Gala during the Canadian Hardware and Building Materials Show in February. A cheque was presented to a representative of Easter Seals Canada at the CHHMA’s annual meeting on April 5.

MARKET INDICATORS

The value of building permits issued in February dropped 14.9% to $2.9 billion, the second consecutive monthly decline. Residential intentions dropped 7.7%, mainly due to a drop in multi-family dwellings, which were down 16.7%, compared with a 4.8% decline in single-family permits. However, the value of residential permits year-to-date, compared with the first two months of 1999, was up 20.7%, with gains in every province except British Columbia and New Brunswick.

Sales growth by large retailers (including department and grocery stores) in 1999 included strong results from the home improvement sector: sales of hardware and lawn & garden products grew 10%, while sales of home furnishings and decorating products rose 8.9% over 1998. Housewares were up 8.8% and sporting leisure goods were up 6.8%.

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™
Five years serving Canada’s home improvement industry

April 10, 2000 – Volume vi, #14
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

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

CALENDAR UPDATE:
OUR AMAZING NETWORKING EVENT

Nitty Gritty C&W on Queen St. West! Rancho Relaxo Bar & Grill: Toronto, May 24, 4-9 pm

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

Tickets are only $79 + GST each and include drinks, fahitas, entertainment, prizes and more!

* * * * * *

CANADIAN TIRE PURSUES FEMALE, UPSCALE CONSUMERS

* * * * * * *

BAY REPOSITIONS ITSELF FOR THE BOOMER MARKET

* * * * * * *

AMAZON.COM ENTERS THE LAWN & GARDEN/OUTDOOR MARKET

Amazon.com has launched a new online lawn & patio store, featuring outdoor grills, patio furniture, birdfeeders, lawn mowers, garden tools and decorative ornaments from more than 50 national brands.

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	18.40	21.25
Canfor	19.40	5.15	16.75
Goodfellow	12.55	7.90	10.30
Home Depot	69	35*	64 ^1/8
Hudsons Bay	23.85	12.50	15.50
Lowe’s Cos.	65*	4*	60 ^5/8
Sears Canada	42.50	27.60	36.25
Taiga Forest	14.75	9.25	10.30
West Fraser	41.00	28.00	36.00

“There is, of course, no reason for the existence of the male sex except sometimes one needs help with moving the piano.” &endash; Rebecca West (1892-1983)

PEOPLE ON THE MOVE

Eric Zellinger has moved over from RONA Inc. to Home Depot Canada as seasonal merchant for live goods on Québec buying team. (416-609-0852)

Mona Caplan has joined the Coleman outdoor division of Sunbeam Canada as national account manager. She was formerly at Royal International. (905-501-0090)

NOTED …

MARKET INDICATORS

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.

* * * * * * *

April3_00

HARDLINES™
Five years serving Canada’s home improvement industry

April 3, 2000 – Volume vi, #13
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

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

* * * * * *
* Sodisco-Howden’s year end positions it for more acquisitions
* Emco builds its distribution network in the West
* Management successful in takeover bid at Cameron Ashley
* Lowe’s gets a new vp of operations and merchandising
* More Americans planning to do their own renovations
* * * * * *

STRONG YEAR SPURS GROWTH FOR SODISCO-HOWDEN

Sodisco-Howden Group ended 1999 with a strong 16.5% increase in its sales, marking a year of aggressive selling and deal-making and paving the way for future expansion. Sales for the year ended December 31 totaled $423.5 million, up from $363.6 million in 1998. Earnings before taxes more than doubled, from $3 million to $6.5 million, while net earnings rose from $2.7 million to $10.9 million,including a recording of future income tax assets that total $4.5 million.

The results created considerable activity on the Montréal exchange, with 12* million shares trading over two days last week following the news of the results.

In 1999, SHG focused on its selling function, making deals with buying groups, resurrecting the Spancan buying group, and introducing new loyalty programs such as Air Miles and Welcome Neighbour. Anticipating the strong results, SHG expanded its reach into Western Canada recently with the acquisition of Smith- Barregar, a hardware wholesaler based in Langley, B.C. But this is by no means the end of the company’s growth, says Tony Molluso, president and CEO of SHG. “We are going to help consolidate the marketplace further, ” he says. “We are actively pursuing other opportunities.”

* * * * * * *

EMCO EXPANDS ITS WESTERN PRESENCE

Emco Ltd. has opened a 120,000-sq. ft. distribution centre in Richmond, B.C., as part of its plan to improve customer service and increase the efficiency of its Emco Distribution operations across Canada. The plumbing wholesaler is also in the process of replacing its manual warehouse systems with new technology.

Distribution centres are being established across Canada and will provide a centralized supply of inventory for each region, using new warehouse management system technology that includes barcoding. This anticipated efficiencies are expected to support Emco’s smaller branches and allow for fast cross-docking of shipments.

A site has recently been chosen for a similar facility in Edmonton that is expected to open by the end of the year. The redesign of existing facilities in Moncton, N.B., and in Montréal as distribution centres began in1999 and will also be completed early in 2000. A planned distribution centre in Toronto is expected to be fully operational in 2001.

* * * * * * *

WEB-BASED MARKETPLACE WILL REPRESENT US$300 BILLION IN RETAIL SALES

More and more companies are attempting to consolidate their presence on the Web with “portals” or online facilities for building sales, especially business-to-business. The latest is an international consortium of 11 retailers that intend to form a collaborative partnership to establish the WorldWide Retail Exchange. The new web-based, business-to-business exchange is expected to begin operating mid-2000. It is designed to facilitate and simplify trading between retailers and their 100,000-plus suppliers, lowering costs in the supply chain for all participants.

The participants are Albertson’s (U.S.), Auchan (France), Casino (France), CVS (U.S.), Kingfisher(UK), Kmart (U.S.), Marks & Spencer (UK), Royal Ahold (The Netherlands), Safeway Inc. (U.S.), Target (U.S.) and Tesco (UK). Together the group operates over 30,000 stores and had 1999 combined sales of more than US$300 billion. Other retailers are also expected to join.

The WorldWide Retail Exchange is a web-based marketplace, enabling transactions between retailers operating in the food, general merchandise and drugstore sectors. It is an open exchange and provides an information highway of publicly available item data together with private price and promotion information between multiple buyers and sellers. The exchange also will provide the means for auctioning products.

COMPANIES IN THE NEWS

The first store in Ontario to carry Rona’s Ambience Boutique department has been installed in the Rona Hardware in Newcastle, east of Toronto. The Boutique, which features a broad assortment of decorative furnishings such as linens, furniture, vases, drapes and candles, comprises about 10% of the 5,800 sq.ft. store, about a third of the size of an average Ambience Boutique. The program has its own semi-annual flyer; Newcastle’s is so far the only one in English.

Management at Cameron Ashley Building Products has succeeded in its bid to buy the company after it raised its offer to buy out the shares of CABP from US$15.10 per share to US$18.25. Total value of the deal, which was made with the backing of CGW Partners IV, a subsidiary of Citicorp Venture Capital, is about US$348 million. Another bid, at US$17 per share from Guardian Industries, was rejected.

For the second quarter ended February 29, Goodfellow Inc. had a 21% increase in sales over last year to $89 million, generating a net profit of $478,000, compared with $57,000 last year on sales of $73 million. For the first six months of its fiscal year, Goodfellow reported a net profit of $2 million on sales of $186 million, versus a net profit of $1 million on sales of $158 million. This represents an 18% increase in sales and a 92% increase in profits over the same period last year.

Dimensions Retail Systems Inc. has developed a dedicated retail management system for Home Hardware dealers called Home- Select. The program will be launched at Home Hardware’s market in two weeks. The computer software company already has similar programs for TruServ Canada, Sexton Group and Howden.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.05	19.05
Canfor	19.25	4.25	15.35
Goodfellow	12.25	7.50	11.00
Home Depot	67 ^5/16	61*	65 ^3/8
Hudsons Bay	23.85	12.70	16.15
Lowe’s Cos.	59 ^7/8	49 ^1/8	58 ^11/16
Sears Canada	42.50	18.25	36.50
Taiga Forest	14.75	9.40	10.95
West Fraser	41.00	28.00	34.25

“Parents learn a lot from their children about coping with life.” … Muriel Spark (British author)

PEOPLE ON THE MOVE

Dale Brace is now with Mumby & Associates in customer service. She was formerly with Sheffield Bronze, where she had handled sales and marketing. (905-812-9333)

At Lowe’s Cos., Theresa Anderson has been promoted to senior vice-president of operations and merchandising support. A 13-year Lowe’s veteran, she was most recently vice-president of store support. In her new expanded role, Anderson will oversee all store and merchandising support activities and direct a team of 164 people. She will continue to report to Perry Jennings, senior vice- president of human resources. (336-658-4000)

Overheard… “It’s a response to being practically coast to coast. If we’re going to double in size over the next 2* years, it’s just a reflection of that growth.” – Jack Hayes, vice-president of marketing and distribution at Home Depot Canada, on the hiring of Eric Peterson from the company’s northwest division as new vp merchandising. Home Depot intends to grow from its current 56 stores to 110 stores during that time.

MARKET INDICATORS

According to the fifth annual American Express Retail Index on home improvement, homeowners in the U.S., people in the U.S. increased their budgets for home improvement projects to an average of US$2,888, a 5% gain over 1999. The number of people planning home improvement projects remained steady at 39%, but more people are undertaking multiple projects. They’re also tackling bigger budget projects such as kitchen and bathroom remodeling and landscaping.

Additionally, the survey found that 72% of consumers said they planned to handle home improvement projects on their own, up from 67% in 1999. To find the needed materials, 65% said they would shop at home improvement centres.

Other shopping destinations include: hardware stores (19%), department stores (16%), gardening stores/nurseries (13%), lumber yards (11%), home decorating stores (10%), specialty shops (9%), and home furnishings stores (8%). Topping the list of planned home improvement or decorating projects is interior decorating, cited by 43% of people surveyed.

Hardlines Classifieds

* * * * * * *

HARDLINES™
Five years serving Canada’s home improvement industry

April 3, 2000 – Volume vi, #13
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com

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

STRONG YEAR SPURS GROWTH FOR SODISCO-HOWDEN

The results created considerable activity on the Montréal exchange, with 12* million shares trading over two days last week following the news of the results.

* * * * * * *

EMCO EXPANDS ITS WESTERN PRESENCE

* * * * * * *

WEB-BASED MARKETPLACE WILL REPRESENT US$300 BILLION IN RETAIL SALES

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.05	19.05
Canfor	19.25	4.25	15.35
Goodfellow	12.25	7.50	11.00
Home Depot	67 ^5/16	61*	65 ^3/8
Hudsons Bay	23.85	12.70	16.15
Lowe’s Cos.	59 ^7/8	49 ^1/8	58 ^11/16
Sears Canada	42.50	18.25	36.50
Taiga Forest	14.75	9.40	10.95
West Fraser	41.00	28.00	34.25

“Parents learn a lot from their children about coping with life.” … Muriel Spark (British author)

PEOPLE ON THE MOVE

Dale Brace is now with Mumby & Associates in customer service. She was formerly with Sheffield Bronze, where she had handled sales and marketing. (905-812-9333)

MARKET INDICATORS

Hardlines Classifieds

* * * * * * *

Mar27_00

March 27, 2000 – Volume vi, #12
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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

* * * * * *
* IN THIS ISSUE:
* Hensall’s Do-it stores sold to RONA
* Recruitment key for Home Depot
* Building Box store openings remains on track
* VP leaves Building Box
* Home Depot U.S. will begin testing flooring store
* Retail trade remained unchanged in January
* * * * * *

HENSALL STORES SOLD TO RONA CASHWAY

RONA Inc. has continued its expansion into the Ontario market with the acquisition of five Do-it centers owned by Hensall District Co-Operatives. Hensall owns a chain of 10 co-op stores, in addition to six home centres flying the Do-it banner, all in southwestern Ontario.

Earl Wagner, general manager of Hensall, says the stores no longer fit in with Hensall’s core business strategy, which focuses on agri-business, including crop products, grain and beans, and petroleum and natural gas. Annual sales from these categories total about $120 million for Hensall. The Do-it stores, meanwhile, will add about $20 million to RONA Cashway’s sales. The sixth Do-it store, in Parkhill, Ont., does about $1 million in sales, but doesn’t carry lumber, so it was not picked up by RONA. It is still for sale, says Wagner.

The new stores are currently being remerchandised and will adopt the RONA Cashway banner, bringing the number of RONA Cashway stores to 66. The Cashway purchase is part of RONA’s stated plan to expand aggressively throughout Canada over the next five years.

* * * * * * *

RECRUITMENT KEY FOR HOME DEPOT

Home Depot Canada says it intends to hire 13,000 people in Canada over the next 2 * years. Home Depot expects to have up to 110 stores in this country by then, with as many as 120-125 stores here in total eventually. Jack Hayes, vice-president of marketing and distribution, says the company is looking for “good people, people who can manage people and can excel in a multiple of roles.”

The president of Home Depot Canada, Annette Verschuren, has stated before that hiring is one of the company’s biggest challenges. There are currently 56 Home Depot stores in Canada. The next one will open in Belleville, Ont., in July.

COMPANIES IN THE NEWS

The Building Box announces it remains on track to open stores in the Greater Toronto Area this year and next. Three stores will open in September 2000 in Scarborough, Brampton and Cambridge, Ont. A fourth store will open a month later in Mississauga. Another store is planned for Belleville, Ont., as well.

Home Depot in the U.S. will begin testing a flooring concept store later this year aimed at both DIYers and contractors. The store will be in or near Dallas, Tex., and offer carpet, area rugs, ceramic tile, laminates, wood, vinyl and flooring installation products.

Plumbeeze/Boshart Industries Inc. has appointed D.A. Marriner Sales Ltd. of Calgary as its retail sales agent for Alberta.

LMBX Inc. and ChanneLinx.com have launched “LBMXchange.com,” an Internet marketplace for the Canadian home improvement industry that will electronically link suppliers, distributors, buying groups and dealers. The Lumber and Building Materials Exchange (LBMX) is an outgrowth of Dimensions Retail Systems, a provider of computer systems to the Canadian hardware and building materials industry. Trading through LBMXchange.com will commence in June 2000.

International Paper, Georgia-Pacific and Weyerhaeuser will form a global business-to-business marketplace for buying and selling paper and forest products on-line. The online marketplace is intended to create a foundation for industry standards and to accelerate its adoption of electronic commerce. The marketplace will operate as an independent entity with its own board of directors and management team. Initially, each company will each have an equal equity position, but it is expected that more partners will join the initiative.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	21.95
Canfor	19.25	4.25	16.40
Goodfellow	12.25	7.50	10.70
Home Depot	64 ^9/16	61*	63 ^3/8
Hudsons Bay	23.85	12.70	15.20
Lowe’s Cos.	51 ^13/16	49 ^1/8	53*
Sears Canada	42.50	18.25	36.50
Taiga Forest	14.75	9.40	10.95
West Fraser	41.00	28.00	34.25

“The young man who has not wept is a savage, and the old man who will not laugh is a fool.”
… George Santayana

PEOPLE ON THE MOVE

Dennis Kennedy has left The Building Box. A veteran of Home Depot, Kennedy had originally been hired by parent company Réno-Dépôt as part of the company’s expansion into Ontario. His duties are currently being handled by Marvin Ettinger, Réno-Dépôt’s vice-president of operations, who comes in weekly to Ontario from head office in Montréal. (905-479-2500)

Fred Archer has joined Balmer Studios Inc. as director of sales – retail division. He was formerly with Florida Lighting Inc. (416-495-6425)

The following appointments have been made at Cameron Ashley Building Products: Dave Parliament has been named district manager of British Columbia. He will be responsible for overall operations at Cameron Ashley’s five B.C. branches. Parliament was most recently general manager, Canadian distribution, at Weyerhaeuser Canada … Don Hryn, formerly assistant branch manager of the Calgary branch, has been appointed key account manager … Western Canada. He started his career 26 years ago with Boyd Distributors, which was later bought by Cameron Ashley … Replacing Hryn as assisant branch manager of the Calgary branch is Roger Lemieux. He was formerly owner of a building centre in Alberta … Bruce Howlett, formerly the branch manager in Saskatoon, has been appointed the branch manager for Edmonton … Replacing Howlett as branch manager in Saskatoon is Chris Jacobs. He comes over from CanWel, where he was a branch supervisor.

The following appointments have been made by Cameron Ashley Building Products in Québec: Robert Champagne has been appointed branch manager for Ste-Pierre-Les Becquets. A 34-year veteran of the company, his experience spans all aspects of the branch operations … Yvan Gilbert has been appointed branch manager for Cameron Ashley in Boucherville. He was most recently door facility manager in Boucherville.

Overheard… “We’re definitely going full-steam ahead.”- James Jones, general merchandising manager for The Building Box, on the company’s plans to expand into Ontario, and specifically the Greater Toronto Area, over the next two to three years.

MARKET INDICATORS

Retail trade in Canada from December to January remained unchanged at $22 billion, according to Stats Canada. The general merchandise sector was strong, however, and department store sales alone were up 5%.Other durable goods stores, which includes hardware stores, saw sales rise 2.1%. From January 1999 to January 2000, retail sales were up 6.7%.

Wholesale sales were up 0.2% in January over December, according to Stats Canada. Inventories also increased 0.2%. Metals, hardware plumbing and heating products were down 0.4% while lumber and building materials were up 2.6% from December to January. From January 1999 to January 2000, hardware and plumbing was up 6.6% and LBM sales were up 15%.

Hardlines Classifieds

* * * * * * *

March 27, 2000 – Volume vi, #12
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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

HENSALL STORES SOLD TO RONA CASHWAY

* * * * * * *

RECRUITMENT KEY FOR HOME DEPOT

COMPANIES IN THE NEWS

Plumbeeze/Boshart Industries Inc. has appointed D.A. Marriner Sales Ltd. of Calgary as its retail sales agent for Alberta.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	21.95
Canfor	19.25	4.25	16.40
Goodfellow	12.25	7.50	10.70
Home Depot	64 ^9/16	61*	63 ^3/8
Hudsons Bay	23.85	12.70	15.20
Lowe’s Cos.	51 ^13/16	49 ^1/8	53*
Sears Canada	42.50	18.25	36.50
Taiga Forest	14.75	9.40	10.95
West Fraser	41.00	28.00	34.25

“The young man who has not wept is a savage, and the old man who will not laugh is a fool.”
… George Santayana

PEOPLE ON THE MOVE

Fred Archer has joined Balmer Studios Inc. as director of sales – retail division. He was formerly with Florida Lighting Inc. (416-495-6425)

MARKET INDICATORS

Hardlines Classifieds

* * * * * * *

Mar20_00

March 20, 2000 – Volume vi, #11
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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

* * * * * *
* IN THIS ISSUE:
* Ace and Beaver to part company ahead of schedule
* Canadian buyers at Cologne Hardware Fair
* B.C.’s dealer of the year
* Castorama reveals buying strategy at Canadian Reception
* New product ideas from German show
* Housing starts expected to increase 3.8% in 2000
* A tip for ensuring your buyers visit you at your next trade show
* * * * * *

ACE’S SUPPLY ARRANGEMENT WITH BEAVER TO END AHEAD OF SCHEDULE

Ace Hardware Canada’s deal to supply hardware to Beaver Lumber will terminate before its scheduled deadline of June 1, 2001. The supply agreement was sealed in 1994 when Beaver, then a subsidiary of Molson Cos., wished to spin off its hardlines distribution. Ace got the contract with Home Hardware Stores, which recently bought Beaver Lumber, is eager to start supplying Beaver’s hardware needs.

The supply function will begin shifting to Home Hardware’s St. Jacob’s warehouse December 15, 2000, in a gradual transition that will wrap up by March 2000, says Wolf Gruber, president of Ace Hardware Canada. However, he adds, the new timetable is well within Ace’s expectations. Because of this, Home Hardware does not have to buy Ace out of the remainder of the contract.

“By the time the phase-in process is completed,” says Gruber, we will only be about two months earlier than in the original agreement.” Besides, he adds, Ace had anticipated some kind of a slowdown as the contract came to an end. “We feel certainly it will be a very honourable conclusion to a very satisfactory agreement.”

* * * * * * *

COLOGNE ATTRACTS CANADIAN BUYERS

The 30th International Hardware Fair/DIY’Tec, held last week in Cologne, Germany, drew an estimated 90,000 delegates from 122 countries, including its share of Canadians. Canadian involvement comprised a group stand under the aegis of the Department of Foreign Affairs and International Trade that featured 14 companies, and another stand, hosted by the Québec government, showcasing six exporting companies. Several more companies exhibited on their own throughout the show.

While companies from every corner of the world are present, the largest groups came from Italy, which brought 412 suppliers. Asia was well-represented and accounted for 34% of all exhibiters. Hong Kong brought 399 and 397 came from Taiwan. Within Europe, strongest represention came from France with 181, the U.K. with 163 and the U.S. with 154 suppliers.

Although modest in size, both group stands from Canada reflected a resurgence of interest in competing overseas. Newcomers like Task Tools & Abrasives, MTR Inc. and Swing Paints all reported making contacts at the show, some realizing orders on the show floor. Exhibiting on their own were Cologne veterans including SPG, Balmer Studios, Bayex and Better Living Products.

“People are very open to our products and very open about Canada,” said Diana Shannon, vice-president marketing for MTR Inc. “I think we’re seen as a serious player in the market, whereas before we weren’t.”

Exporters often talk of the need to make a long-term commitment to this show &endash; and to the European market. “We plan hopefully to do it in a series of three consecutive years, to show consistency and give our companies a chance to make contacts,” says Norbert Arsenault, director of international business for the Québec government’s Ministry of Industry and Commerce. He oversaw that province’s group stand and facilitated meetings between the companies and buyers from the likes of Brico and OBI who dropped by.

Unfortunately, the major international suppliers, with the exception of companies like Bosch, Ryobi, Karcher, Bahco Tools and Vermont American, failed to bring their Canadian representatives. This was unfortunate, as Canadian buyers showed up from many of the majors, including Sears, Canadian Tire, Réno-Dépôt, Sodisco-Howden Group and Ace Hardware Canada. In addition, international representatives from Ace, TruServ, Orgill and Home Depot were all at the show. However, neither Home Hardware nor Beaver Lumber, busy focusing on the logistics of merging their organizations, sent anyone this time.

The Cologne Fair, the world’s largest hardware and home improvement trade show, featured 3,858 suppliers from 54 countries. The show sprawls through 14 inter-connected buildings alongside the Rhine. Next year’s show is scheduled for February 18-21, 2001.

* * * * * * *

SNAPSHOT: EUROPEAN HOME IMPROVEMENT MARKET

The European market represents a population of about 290 million people. The three largest markets for home improvement retailing are Germany ($56 billion*), the U.K. ($26 billion) and France ($23 billion). While the economy in Germany has been flat, with DIY moving ahead only 1.3% in 1999, slightly more buoyant growth is being enjoyed in the UK and France.

(All values in CDN$)

* * * * * * *

PRODUCT WATCH AT COLOGNE FAIR

In no particular order, here’s a lineup of some of the things that caught our eye walking the show in Cologne last week …

– Leica’s handheld laser meter can take measurements from 30 cm to 100 m and can calculate room areas and volumes, subtract consecutive measurements and recall 20 previous measurements.

– Emphasis on environmental friendliness was displayed by Eco-Spray, a refillable spray can that comes complete with its own air compressor for recharging.

– Walkstool, a Swedish-made portable stool with telescopic aluminum legs for people who must crouch or kneel frequently through the day.

– Black & Decker Dustbusters in different accent colours (finally!)

– companies selling more stylish, less rustic looking wood stoves than we see here. For Example, TopFire by Testrut featured soapstone slab tops, gun-metal blue stainless steel bodies and warming shelves.

– Style abounds, even with seemingly pedestrian products like power bars. Brennenstuhl makes its Brelani collection available in an array of accent finishes, everything from wood grain to silver matte.

– An upright steam/vacuum cleaner from Karcher that vacs and squeegees the floor at the same time.

– The 24-volt line from Bosch featured four new tools: impact drill, drill/driver, sabre saw and lamp, with a more compact battery design.

– Witte’s ComBit-Box is a mini screwdriver bit system in two models. It flips open to reveal either six or 15 bits that can be inserted into a magnetic holder right on the bit box for manual screwing.

– Storage and organizer products reflect the smaller spaces of European homes and garages. Mattez has a two-ft. straight hook, ideal for storing a bicycle, that flips up out of the way when not in use.

* * * * * * *

CASTORAMA BUYER OFFERS GLOBAL INSIGHTS TO CANADIANS AT COLOGNE RECEPTION

Getting closer to the source is the policy for Europe’s biggest home improvement chain, says a key buyer for Kingfisher’s Castorama Group &endash; and Canadians in Cologne heard it first-hand. Keith Scorgie is a merchant for The Castorama Group, which represents both B&Q in the U.K. and Castorama in France. (Castorama also owns Canada’s Réno-Dépôt.) He is responsible for creating synergies between the two buying teams to wield the biggest clout with its vendors &emdash; and to create a more formidable front against competitors such as Home Depot.

Scorgie spoke to a group of more than 60 Canadian exhibitors, buyers and press at the Canada Night Reception at the International Hardware Fair/DIY”Tec, held in Cologne, Germany last week. The event was hosted by Hardlines with the support of the Canadian Department of Foreign Affairs and International Trade. “We are looking at DIY products from around the world and the best source for that product &emdash; at the best price,” Scorgie told the audience. That means getting as close to the source of supply as possible. Kingfisher’s buyers intend to conduct their vendor negotiations with only the most senior people. It also means developing their own sourcing. Scorgie now has a buying team of his own set up in Hong Kong.

Besides the challenge of merging two distinct corporate cultures, Scorgie admits he must deal with long-standing nationalistic rivalries. “Yes, there’s a love/hate relationship between England and France. We hate each other when it’s convenient. And we love each other when it’s convenient.”

The Castorama Group is the third-largest home improvement retailer in the world, after Home Depot and Lowe’s. It has more than 500 stores in nine European countries and sales of nearly US$10 billion.

COMPANIES IN THE NEWS

Kaslo Building Supplies Ltd., an IRLY dealer in Kaslo, B.C., was awarded best overall store of the year by the BSDA of B.C. at its annual gala on March 4. The award is presented to stores and individuals “that have shown themselves to be exemplary in all aspects of their relationship to the building supply industry.

For the first quarter ended January 31, 2000, Matco Ravary had sales of $11.59 million, up 10% over $10.53 million for the same period a year earlier. A net loss of $192,864, including a tax recovery of $118,481, was incurred during the quarter, compared with a loss of $10,865 for the corresponding period of the previous fiscal year. This was due to the costs of integrating the supply, sales and billing management system at its sixth store, acquired last June.

The Bay will open seven new stores across the country on May 2, 2000, the date which marks the 330th anniversary of Hudson’s Bay Co. The seven stores will be retrofitted in the Bay’s new “suburban format.” The locations are: Highfield Square Shopping Centre, Moncton, N.B.; Upper Canada Mall, Newmarket, Ont.; Pickering Town Centre Pickering, Ont.; Limeridge Mall, Hamilton, Ont.; Masonville Place, London, Ont.; Midtown Plaza, Saskatoon; Cornwall Centre, Regina.

White Rose Crafts and Nursery Sales announced that, effective March 10, 2000, its common shares will be available for trade reporting on a twenty-for-one consolidated basis. The consolidation of the common shares was approved at the company’s AGM on January 27, 2000, and became effective March 6, 2000.

London, Ont.-based Glasgow Manufacturing has signed an agreement to be exclusive distributor for SlydeLock, a patio door lock manufactured in Hull, Qué.

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
Home Depot	64 ^9/16	61*	62*
Hudsons Bay	23.85	12.70	14.00
Lowe’s Cos.	51 ^13/16	49 ^1/8	51 ^7/16
Sears Canada	42.50	18.25	37.70
Taiga Forest	14.75	9.40	11.40
West Fraser	41.00	28.00	34.55

“A human being: an ingenious assembly of portable plumbing.”
&endash; Christopher Morley (1890-1957)

PEOPLE ON THE MOVE

George Ireland has been promoted to the position of national sales manager at Vermont American Canada. He was formerly national accounts manager. (905-564-1155)

Bhupesh Shah has been appointed director of marketing for Karcher Canada Inc. He comes over from Clorox of Canada. (905-672-8233)

Dave Murray has joined The Balmer Studios as marketing director. He was previously with Premdor Inc. (416-491-6425)

Paul Walters, chairman and CEO of Sears Canada Inc., received a total compensation package of more than $3.8 million in 1999, according to the Financial Post. His base salary was $700,000 (up from $550,000), while his package included bonuses and special compenstion … Arthur Martinez, chairman and CEO of Sears, Roebuck and Co. who will retire later this year, received US$4.12 million in compensation in 1999, or 73% more than the US$2.38 million he received in 1998. (416-362-1711)

Overheard… “One advantage of being a public company is that we have a board of directors and the advantage is that they really push us.”&emdash; Gilles Nolet, president and COO of Matco Ravary, a Montréal-based chain of six home centres. It had $58.2 million in sales last year.

NOTED …When Margareth Daerindinger, European market manager for Brampton, Ont.-based Bayex, exhibits at the Cologne International Hardware Fair, she wants to meet her best customers. So she pays for their trip to the show. It’s cheaper than flying to see them,” she says. Daerdinger has been exhibiting in Cologne for 16 years. Last week, she shared some of her tips for working the show in a presentation at the Canada Night Reception in Cologne, Germany. The event was hosted by Hardlines with the support of the Canadian Department of Foreign Affairs and International Trade.

MARKET INDICATORS

The new housing price index remained unchanged from December to January. However, on an annualized basis it was 1.7% higher in January 2000 than it was in January 1999, according to Stats Canada. The highest increases were in Ottawa-Hull and St. Catharines-Niagara (+4.4%), while the biggest drop was in Victoria (-6.1%).

Housing starts are expected to increase 3.8% in 2000 and 3.5% in the following year, says CMHC. Starts will rise this year to 155,700 units, up from 149,968 in 1999. By 2001, starts will have increased again by 3.5% to 161,200 units.

Hardlines Classifieds

* * * * * * *

March 20, 2000 – Volume vi, #11
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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

ACE’S SUPPLY ARRANGEMENT WITH BEAVER TO END AHEAD OF SCHEDULE

* * * * * * *

COLOGNE ATTRACTS CANADIAN BUYERS

* * * * * * *

SNAPSHOT: EUROPEAN HOME IMPROVEMENT MARKET

(All values in CDN$)

* * * * * * *

PRODUCT WATCH AT COLOGNE FAIR

In no particular order, here’s a lineup of some of the things that caught our eye walking the show in Cologne last week …

– Leica’s handheld laser meter can take measurements from 30 cm to 100 m and can calculate room areas and volumes, subtract consecutive measurements and recall 20 previous measurements.

– Emphasis on environmental friendliness was displayed by Eco-Spray, a refillable spray can that comes complete with its own air compressor for recharging.

– Walkstool, a Swedish-made portable stool with telescopic aluminum legs for people who must crouch or kneel frequently through the day.

– Black & Decker Dustbusters in different accent colours (finally!)

– An upright steam/vacuum cleaner from Karcher that vacs and squeegees the floor at the same time.

– The 24-volt line from Bosch featured four new tools: impact drill, drill/driver, sabre saw and lamp, with a more compact battery design.

* * * * * * *

CASTORAMA BUYER OFFERS GLOBAL INSIGHTS TO CANADIANS AT COLOGNE RECEPTION

COMPANIES IN THE NEWS

London, Ont.-based Glasgow Manufacturing has signed an agreement to be exclusive distributor for SlydeLock, a patio door lock manufactured in Hull, Qué.

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
Home Depot	64 ^9/16	61*	62*
Hudsons Bay	23.85	12.70	14.00
Lowe’s Cos.	51 ^13/16	49 ^1/8	51 ^7/16
Sears Canada	42.50	18.25	37.70
Taiga Forest	14.75	9.40	11.40
West Fraser	41.00	28.00	34.55

“A human being: an ingenious assembly of portable plumbing.”
&endash; Christopher Morley (1890-1957)

PEOPLE ON THE MOVE

George Ireland has been promoted to the position of national sales manager at Vermont American Canada. He was formerly national accounts manager. (905-564-1155)

Bhupesh Shah has been appointed director of marketing for Karcher Canada Inc. He comes over from Clorox of Canada. (905-672-8233)

Dave Murray has joined The Balmer Studios as marketing director. He was previously with Premdor Inc. (416-491-6425)

MARKET INDICATORS

Hardlines Classifieds

* * * * * * *

Feb27_00

February 27, 2000 – Volume vi, #8
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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

THE HARDLINES WHO’S WHO

The Hardlines Who’s Who (1999-2000 Edition) is a comprehensive guide to Canada’s leadinghardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops.More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers andtheir responsibilities. The cost for the Hardlines Who’s Who is only $105 for Hardlines subscribersand $135 for non-subscribers. Order your own copy of the Hardlines Who’s Who today!

* * * * * * *

Our thanks to the sponsors of our first ever HARDLINES CONTRACTOR CONFERENCE 2000:

– Lumber and Building Materials Association of Ontario
– Dimensions Retail Systems
– American Tools
– ITW Paslode

(Details of the conference in this issue!)

This week in Hardlines:

ACE WILL DISTRIBUTE GROWMARK PROGRAMS

Growmark and Ace Hardware Canada have made a deal whereby Growmark will supply Acedealers with pet, lawn and garden and workwear products. The deal means Growmark’s proprietary merchandising programs, or “modules,” will have a distribution network across the country via Ace.Dealers can take on either the full modules, complete with training and service, or merely shop the Growmark catalogue.

The deal was first introduced to Castle dealers nationally, but Growmark’s distribution is limited to Ontario. With the Ace deal, those programs become accessible across the country.

Ace already has a deal to supply Growmark’s co-op stores throughout Ontario with hardware. The new arrangement means Ace trucks delivering to Growmark’s warehouse will bring Growmark products back, where they will be cross-docked at the Ace warehouse before being shipped out.

* * * * * * *

TOTEM WILL OPEN 11TH STORE BY YEAR’S END

Totem Building Supplies will erect a new store with a slightly different format by the end of this year. With 10 stores plus a contract division in Alberta &endash; and sales exceeding $150,000, Totem is one of Tim-BR-Mart’s largest members and a dominant player in the province.

The new store is about 10 miles north of Calgary in Airdrie, a town of of 20,000 &emdash; about half the size of secondary markets Totem typically targets, such as Red Deer and Medicine Hat. The outlet will be 24,000 sq.ft., about one-third smaller than Medicine Hat. It will also have a 16,000-sq.ft. drive-through lumber warehouse.

“It’s kind of an experiment for us, because we’re going into a community that small,” says Colin Robertson, Totem’s vice- president, marketing. “If it goes well in a community that size, it opens up a whole range of possibilities throughout the province.”

Although smaller, the store will carry about the same assortments as its larger counterparts. However, certain lines will be eliminated, such as some housewares and cleaning products that are now carried in the other stores.

* * * * * * *

TRUSERV LAUNCHES PET PROGRAM

A new banner to capitalize on the growing popularity of pets and pet products has been developed by TruServ Canada. Pet Junction is a turnkey program available to existing pet stores. Already, 27 dealers have signed on as members of TruServ and will convert their stores to the Pet Junction banner. Existing TruServ dealers have also expressed interest in enhancing their existing pet departments. “A significant number of True Value stores are considering expanding their pet category,” says Gary Hamilton, group merchandising manager at TruServ.

To support the program, TruServ has added 3,000 SKUs to its warehouse of food and supplies. All major food brands will be represented. So-called “livestock” is supplied by a network of existing local suppliers. Pet Junction will get its official launch at TruServ’s spring market in Winnipeg, April 16-18. There, the number of pet-related booths will jump from four to 24.

* * * * * * *

CONTRACTORS DOWN ON BIG BOXES, CONFERENCE REVEALS

The pursuit of contractors makes for an elusive and often frustrating courtship. Retailers have spent the last half-decade getting smarter about contractor business, especially as it’s considered the Achilles heel of the big boxes. But Home Depot has bought a wholesale plumbing business in the U.S. and is preparing to launch its pro mail order business in Canada this spring. So it’s time to drill down deeper. That’s why we hosted the first-ever Hardlines Contractor Conference: “How to sell to Contractors,”last week. Presented in conjunction with Canadian Contractor magazine, a new Rogers Media publication that intends to mail to 36,000 contractors and builders later in April, and with the sponsorship support of the LBMAO, the event attracted a wide range of dealers and vendors.

* * * * * * *

SOME CONFERENCE HIGHLIGHTS:

The era of the DIYer is over, said Steve Payne, publisher of Canadian Contractor. Citing a Stats Canada survey, he said more than half (53%) of homeowners intending to renovate this year will call a contractor rather than do it themselves.

With the belief that one has to “differentiate or die,” Brad West, co- owner of Bigford’s Castle Building Supplies in Brighton, Ont., developed an installed sales program which ties in his best contractor customers and completes the service loop for consumers looking for installation of the products they buy at his store. It also gives financial security to contractors on the program, as they get paid immediately by Bigford’s rather than having to collect from the consumer. While West admitted some trades felt alienated or “left out” by the process, he said overall it’s been a good move for the store. Loyalty extends to having contractors even carry the Castle “All-Install” logo on their trucks.

Ian Gray, president of Dimensions Retail Systems, demonstrated the necessity of having an online presence to garner loyalty among contractors. More and more contractors won’t even consider a supplier who can’t be found online. Services a dealer can provide online will include orders and quotes, product catalogues, price look- ups, invoice details and reprints and acounts receivable inquiries.

The importance of offering products online and having e-commerce options available to trade customers was borne out by the contractors who participated in a panel discussion at day’s end. They also mentioned that pricing is not always their sole consideration. Contractors value their time and need to get in and out fast with knowledgeable service &emdash; something they said they can’t always get from big boxes.

Cully Koza of Can-Save Distribution gave numerous examples of how he and his brother Larry built the business by going right to contractors onsite to build product awareness and create demand, then pulled in the dealers as the source for those products. Other techniques included coffee breaks in the store with product demonstrations and giveaways.

COMPANIES IN THE NEWS

Home Depot had sales of US$38.4 billion in fiscal 1999, an increase of 27% from sales of US$30.2 billion in 1998. Same-store sales were up 10% from the previous year. Net earnings totaled US$2.3 billion, up 44%. Sales for the fourth quarter of fiscal 1999 totaled US$9.2 billion, up 26% from US$7.3 billion during the same period a year earlier. While Canadian sales are not broken out separately, Hardlines estimates they were at least US$2.3 billion in fiscal 1999, with all but a couple of stores operating profitably. At the end of fiscal 1999, the company operated a total of 930 stores with an aggregate of approximately 100 million sq.ft. of selling space. The stores include 913 Home Depots: 854 in the U.S., 53 in Canada, four in Chile and two in Puerto Rico; and 15 EXPO Design Centers and two Villager’s Hardware test stores in the U.S.

Ainsworth Lumber Co. Ltd. had annual sales of $433.4 million, a 24% increase over $349.1 million in 1998. Net earnings for the year rose to $23.6 million, compared with a net loss of $9.5 million in the previous year. The company reduced its long-term debt by $55 million in 1999, three times as much in the previous year, down to $264 million. Since 1993, the company has invested over $450 million in consolidating, modernizing and expanding its B.C. and Alberta operations, and claims to be the largest supplier of OSB to Japan.

Sears Canada opened a Sears Furniture and Appliances store in Winnipeg on Saturday. The 43,000-sq.ft. store, the first in Manitoba, has a staff of 40, including 18 trained furniture/home decor and major appliance consultants. The company also announced it will relocate its Heritage Mall department store to the former Eaton’s location at Edmonton’s Southgate Shopping Centre in the fall of 2000.

Home Depot’s first environmentally-themed television commercial debuted on February 25 during the ABC broadcast of “20/20.” It highlighted Home Depot associates’ role in building a habitat for Yang Yang and Lun Lun, two giant pandas on loan from China to Zoo Atlanta. In addition to building the facility, Home Depot President and CEO Arthur Blank donated $500,000 from his Arthur Blank Family Foundation and $500,000 in building materials from The Home Depot, to create the Arthur M. Blank Family Foundation Giant Panda Conservation Centre. The company has a philanthropic budget of more than US$18 million for 2000. The major focuses are affordable housing, at-risk youth, the environment and disaster preparedness.

MAAX Inc. will acquire all of the shares of SaniNova B.V., a Netherlands &endash;based manufacturer of acrylic sanitaryware products with sales of CDN$31 million. As a result of this transaction, MAAX expects to record consolidated sales of approximately $535 million for fiscal 2000-2001

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	22.90
Canfor	19.25	4.25	16.00
Goodfellow	12.25	7.50	10.50
Hudsons Bay	23.85	12.70	13.55
Sears Canada	42.50	18.25	37.50
Taiga Forest	14.75	9.40	10.05
West Fraser	41.00	28.00	37.00

“Our very business in life is not to get ahead of others, but to get ahead of ourselves.”
&endash; Thomas L. Monson (1954-)

PEOPLE ON THE MOVE

Some changes at the head office at Home Depot Canada: Jack Hayes moves from his current position as division merchandising manager to become vice-president of marketing and distribution. He will be responsible for all of Canada’s advertising, imports, distribution and installed sales … Eric Peterson is being brought up from the U.S. northwest division, where he was division merchandising manager, to replace Hayes as vice-president of merchandising … Steve Savoie is being promoted from district manager to the position of director of operations, overseeing Tool Rental, contractor sales and installed sales, and involved in new business development. (416-609-0852)

Peter Fealy joins Moen Inc. as director of retail sales, effective March 6 … He’s replacing John Hammill, who will assume the position of vice-president, wholesale sales.

CORRECTION: Seems I reversed Ray Falkenberg’s career path a bit last week. He was just appointed to at TruServ Corp., but as business development manager. He was director of marketing when he was at the North West Co. … Also as mentioned last week, Michael Nolan lso comes over to TruServ from North West Co. as sporting goods buyer. He was previously in outerwear and footwear at North West. (204-453-9511)

Bob Emmell has been appointed national sales manager for Selkirk Canada. His responsibilities include sales, marketing and manufacturing functions for both Selkirk and Supervent. He was previously vice-president and general manager of Supervent … John Vukanovich has been appointed national marketing manager for the Canadian operations, responsible for overall marketing for both Selkirk Canada and Supervent. (905-662-6600)

Overheard… “If you’re selling tools and you don’t know what torque is, you shouldn’t be in the business … Go do hair!”
&emdash; Martin Richards of Martin Richards Design and Contracting, commenting on his dissatisfaction with Home Depot. He was a member of the panel that capped off our latest conference, “Selling the Contractor Market,” which was held last Wednesday in Markham, Ont.

MARKET INDICATORS

Retail trade was up 5.8% in 1999, according to Stats Canada. This follows a 3.6% gain in 1998. While all provinces posted higher sales, increases were strongest in Ontario (+7.8%) and Atlantic Canada(+7%).

Wholesale trade in 1999 advanced at more than twice the pace of 1998, says Stats Canada, and one of the reasons for the gains was the lumber and building materials sector. LBM wholesalers saw sales rise 14.4% last year, while December was up 2.7%, the third consecutive monthly increase. Higher prices contributed to the gain. They increased 12.3% in 1999, following an 11.3% drop in 1998 and a 0.8% drop in overall sales in 1998. Metals, plumbing and heating wholesale sales were up 4.6% in 1999.

Total sales in the U.S. of existing homes dropped 10.7% in January to a 4.59 million annual rate, the National Association of Realtors reports. December’s level was revised up to a 5.14 million annual rate from the 5.06 million level originally reported.

Hardlines Classifieds

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February 27, 2000 – Volume vi, #8
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

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

THE HARDLINES WHO’S WHO

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Our thanks to the sponsors of our first ever HARDLINES CONTRACTOR CONFERENCE 2000:

– Lumber and Building Materials Association of Ontario
– Dimensions Retail Systems
– American Tools
– ITW Paslode

(Details of the conference in this issue!)

This week in Hardlines:

ACE WILL DISTRIBUTE GROWMARK PROGRAMS

The deal was first introduced to Castle dealers nationally, but Growmark’s distribution is limited to Ontario. With the Ace deal, those programs become accessible across the country.

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TOTEM WILL OPEN 11TH STORE BY YEAR’S END

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TRUSERV LAUNCHES PET PROGRAM

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CONTRACTORS DOWN ON BIG BOXES, CONFERENCE REVEALS

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SOME CONFERENCE HIGHLIGHTS:

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	22.90
Canfor	19.25	4.25	16.00
Goodfellow	12.25	7.50	10.50
Hudsons Bay	23.85	12.70	13.55
Sears Canada	42.50	18.25	37.50
Taiga Forest	14.75	9.40	10.05
West Fraser	41.00	28.00	37.00

“Our very business in life is not to get ahead of others, but to get ahead of ourselves.”
&endash; Thomas L. Monson (1954-)

PEOPLE ON THE MOVE

Peter Fealy joins Moen Inc. as director of retail sales, effective March 6 … He’s replacing John Hammill, who will assume the position of vice-president, wholesale sales.

MARKET INDICATORS

Hardlines Classifieds

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Feb21_00

February 21, 2000 – Volume vi, #7
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 CONTRACTOR CONFERENCE 2000

Presented by HARDLINES in association with CANADIAN CONTRACTOR magazine Wednesday, February 23, 20009:00 am &endash; 3:00 p.m.Radisson Hotel Markham, Ontario

This important one-day symposium will give dealers and vendors alike valuable insights into selling more effectively to the $21-billion builder and contractor market.

Some of the areas that will be covered include:The size and dynamics of the contractor marketplaceHow contractors make buying decisionsHow leading retailers are profiting in this marketHow leading wholesalers are driving sales in this marketWhat YOU have to do to win more business

SPONSORED BY THE LUMBER & BUILDING MATERIALS ASSOCIATION OF ONTARIO

The Program:
How to combat price shopping by your contractor customers: Robert Koci, Executive Editor, CANADIAN CONTRACTOR.

Selling hardware to contractors: Peter Baldasarra, President, Interline Hardware

Increasing profit with installed sales: Brad West, Co-owner, Bigford’s Castle Building Products.

Building contractor loyalty on-line: Ian Gray, President and CEO of Dimensions Retail Systems.

Building profitable three-way partnerships among retailers, distributors and contractors: Cully Koza, Co-owner, Can-Save.

Sales growth potential of the contractor and builder market: Stephen Payne, Publisher of CANADIAN CONTRACTOR.

This week in Hardlines:

CASTLE STRIKES E-COMMERCE DEAL WITH WEBER SUPPLY

In an effort to broaden its hardware selection to its customers, Castle Building Centres has struck a deal with Weber Supply Co. to provide the buying group with its own online catalogue.

The consumer, or the dealer on the consumer’s behalf, will simply go to www.castle.ca and click on a new link, “Castle’s Hardware Department,” which will be up and running by March. The link will be entirely branded for Castle, and make no reference to Weber. Online shoppers can order via credit card or debit card and take advantage of three delivery options: direct to their homes, picked up from their local Castle outlet, or delivered by that Castle dealer.

All payments will be handled by Weber Supply, and the difference between the wholesale and the retail price will be passed along the the local Castle dealer, as chosen by the customer, whether they pick it up there or not.

The program builds on Weber’s existing Won-Net system, a real-time online system that enables Weber’s building supply dealer customers to access the full Weber inventory of hardware products. “We re-developed the Won-Net platform and reconfigured it for an e-commerce application,” says David Weber, president of Weber Supply. The wholesaler has, in effect, created a private label application for Castle.

The new service provides benefits for both sides. Each Castle outlet now has the “clicks” &endash; a virtual catalogue of 50,000 SKUs of hardware available to it. Weber gets the “bricks” it says it needs to substantiate its online presence. “That’s the thing that’s changing about e-commerce,” says Weber. “We want the consumer to know that, if they’ve got a problem or want to touch and feel the product, they can go into any of Castle’s 220 stores.”

Another advantage of the system, says Weber, is that ordering can be done in real time. Because they’re connected to the Weber inventory, shoppers will know immediately whether the product they seek is available.

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CASTORAMA DISCOUNTS HOME DEPOT TAKEOVER RUMOUR

A rumour that Home Depot Inc. solicited a major Castorama shareholder has been discounted by a spokesperson for Castorama’s division in North America, Réno-Dépôt.

“I can assure you, nothing is happening,” says Sylvain Toutant, vice-president marketing and development for Réno-Dépôt in Montréal. Home Depot declined to comment, referring to the rumour as “a speculative report.” Castorama is half-owned by U.K.-based Kingfisher.

Toutant is himself recently back from several days in Europe, where he had met with representatives from Castorama, none of whom gave credence to the rumour. “We believe it comes from an analyst in London,” Toutant says. The Dubois family, which was reportedly approached by the Depot, owns 50% of Castorama’s stock, while Kingfisher can only exercise 50% of the 57% it will be able to exercise as of July 2001.

“Castorama is not in a position to sell its shares because Kingfisher has the right of first refusal,” Toutant explains. “No one can make a hostile move against the other.”

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MERGER PUTS RONA IN CANADA’S TOP FIVE

RONA’s acquisition two weeks ago of Cashway Building Centres gives it estimated combined annual retail sales (1999) of more than $1.8 billion, putting it in fourth place in hardware/home improvement sales in Canada. Home Hardware, in combination with Beaver Lumber, weighs in at number two with about $2.9 billion based on 1999 figures. Home Depot is in the number-three spot now, with $2.1 billion, while Canadian Tire maintains the top spot with $3.8 billion by all its retailers. However, if you back out sporting goods and automotive, Canadian Tire drops to an estimated $1.7 billion in hardware/home improvement sales. (From the Hardlines Database of Retailers and Wholesalers)

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Softwood lumber agreement losing support in U.S.

Some House members in the U.S. are pushing for an end to the U.S.-Canada Softwood Lumber Agreement. These enlightened individuals admit the deal inhibits free trade and drives up prices for U.S. consumers, says a report from Associated Press. A “sense of Congress” resolution was introduced saying the 1996 pact should not be renewed when it expires in April 2001. The measure does not carry the force of law but could influence U.S. negotiators in their talks with Canada. The Coalition for Fair Lumber Imports, a group representing U.S. lumber producers, favours dumping the agreement but called the resolution unbalanced and misleading. It wants to see a mechanism put in place that protects the U.S. producers. The 1996 agreement allows Canada to ship 14.7 billion board feet of duty-free lumber to the U.S. each year but sets fees for shipments beyond that level.

COMPANIES IN THE NEWS

Slocan Forest Products Ltd. Has released its audited results for 1999, including previously announced sales of $1.1 billion, up from $936.2 million a year earlier. Cash flow from operations for 1999, after reforestation expenditures and before change in non-cash working capital, was $236.9 million, compared with $18.8 million or 2% of sales for 1998. Net earnings were $110.3 million. The company also announced it is investing up to $5.4 million at its Uneeda operation in the Fraser Valley to produce structurally rated, kiln dried laminated beams for the Japanese housing industry. The plant is expected to be up and operating by late March and will employ about 35.

For the fiscal year ended January 28, 2000, Lowe’s Cos. reported sales increased 19% to US$15.91 billion. Same-store sales increased 6.2% in fiscal 1999. Net earnings grew 38% to US$689.8 million while diluted earnings per share increased 34% to $1.79, excluding the one-time charge of US$0.04 per share for costs related to the merger with Eagle Hardware & Garden on April 2, 1999. As of year end, Lowe’s operated 576 stores in 37 states. Retail square footage grew to 57.0 million last year, up 19% over the previous year.

Cameron Ashley Building Products reported first-quarter sales for the period ended January 31, 2000, of US$255.8 million, up 14.5% from US$223.4 million in the same period a year earlier. Same-store sales grew 6.8% overall and 5.4% in Canada. The company reported a net loss of US$1.2 million, which included an operating expense of US$567,000 associated with software/systems development in the Cameron division.

Last Thursday, Sears opened its second Furniture, Appliances and Home Improvements Store in Québec, and the fourth in Canada, this one in Brossard. The 60,000-sq.ft. outlet has a staff of 45, including 23 trained furniture/home decor and major appliance consultants. A 10,000-sq.ft. HomeCentral showroom showcases home products such as floor and window coverings, model kitchens and bathrooms, gas fireplaces, windows, doors, etc.

Channellock Inc. will open a new warehouse in Rotterdam, the Netherlands, in March 2000. The facility will be used to maintaint and ship inventory to Channellock’s European customers.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	19.10	22.90
Canfor	19.25	4.25	16.00
Goodfellow	12.25	7.50	10.50
Hudsons Bay	23.85	12.70	13.55
Sears Canada	42.50	18.25	37.50
Taiga Forest	14.75	9.40	10.05
West Fraser	41.00	28.00	37.00

“The most wasted of all days is that on which one has not laughed.”
&endash; Nicholas-Sébastien Chamfort (1741-94)

PEOPLE ON THE MOVE

John Howard has left Beaver Lumber to join Cashway Building Centres as product manager for building materials. He replaces John Whicher, who moved over to The Building Box as lumber and building materials merchant. (905-885-3700)

Jeff Whalen has been promoted to junior buyer at Revy Home Centres &endash; Ontario division. A 12-year veteran of the company, he was formerly in inventory control. (416-241-8844)

Ray Falkenberg has been appointed director of marketing at TruServ Corp. He was formerly in business development at the North West Co. … Michael Nolan also comes over to TruServ from North West Co. as sporting goods buyer. He was sporting goods, electrical and toy buyer at North West. (204-453-9511)

Mark Foote is now senior vice-president, marketing at Canadian Tire Corp. He was formerly in IT. (416-480-3000)

Michael A. Polvere has been appointed general manager, dealer sales for the Prairies, at CanWel Distribution, effective March 6. He joins the company following 34 years at MacMillan Bloedel, where he served most recently as regional manager Ontario/Atlantic. He will work out of CanWel’s Edmonton distribution centre. (780-447-1959)

Gerry Faurote has been appointed president and CEO at Peerless Chain Co. A 15-year veteran of the company, He was most recently vice-president of sales and marketing and replaces outgoing president and CEO John van Osnabrugge … Tom Wynn moves over to replace Faurote as vice-president sales and marketing. He was formerly director of sales. (507-457-9100)

Tim Valters has been appointed vice-president and general manager of Selkirk Canadian Operations. His responsibilities include sales, marketing and manufacturing functions for both Selkirk and Supervent. He was previously vice-president and general manager of Supervent. (905-405-9498)

Overheard &endash; “I personally believe the independent will be an integral part of change and will grow and prosper and sponsor a great deal of this change.” &endash; Walter Hachborn, president of Home Hardware Stores, in a speech at the Canadian Hardware and Building Materials Show on February 6. He was accepting an award, presented by Hardware Merchandising, that honoured him as Outstanding Retailer of the Century.

“RONA’s plans include 1,000 stores across Canada and $2.1 billion in sales by the end of 2002. I am confident with this appointment we have the leadership in place to ensure our successful growth.” &endash; Robert Dutton, president of RONA Inc., on the appointment of Rick Blickstead as president and COO of its new retail division in charge of big box development across Canada.

MARKET INDICATORS

Housing starts are expected to hit 155,700 units this year and 161,200 in 2001, compared to 149,968 in 1999, according to CMHC’s first quarter Housing Outlook report. The gains should reflect stronger house prices, rising migration, employment and income growth, improved consumer confidence, and gradual recovery in the B.C. housing market, offsetting the impact of higher mortgage rates. Sales of existing homes should reach record levels, rising to 335,300 this year and 342,700 in 2001.

Almost 600,000 Canadian households are in the market for a home this year and 1.3 million households intend to renovate their homes, according to results from the recent CMHC survey of consumers’ intentions to buy or renovate a home. The survey, carried out in Vancouver, Calgary, Edmonton, Toronto, Montreal and Halifax, shows that nearly 350,000 households are ready to buy now, while another 250,000 are looking to buy within the next 12 months. Intent to buy is strongest in Calgary (16%), Vancouver (15%) and Toronto (12 %), followed by Edmonton (11%) and Halifax (9 %). Demand will remain about the same as last year in Montréal (7 %). Survey results also show 44% of homeowners in the six cities intend to renovate their homes this year. The 1.3 million households include over 500,000 who are ready to renovate now. This was up to 17% in 1999 from 15% in 1998. This is an increase of approximately 40,000 homeowners who are ready to renovate now.(For more information about homeowners’ intentions to renovate in 2000 and the major role contractors will play in their purchasing decisions, be sure and attend the HARDLINES CONTRACTOR CONFERENCE 2000: “SELLING THE CONTRACTOR MARKET”, Wednesday, February 23, 2000, at the Radisson Hotel, Markham, Ontario.)