Feb7_00

February 7, 2000 – Volume vi, #5
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

Check out our incredible Classifieds section!

VISIT HARDLINES AT CHS: BOOTH #5117 Drop by and visit us at the Canadian Hardware and Building Materials Show, February 6-8, 2000. Say ‘hello’, share the latest industry gossip and help us celebrate our fifth anniversary “We can’t believe we’re still in business” celebration! The Hardlines Show Breakfast is going to be packed!

With huge thanks to this year’s sponsors:

STERLING COMMERCE
INTACTIX
THE CANADIAN HARDWARE & BUILDING MATERIALS SHOW
DIMENSIONS RETAIL SYSTEMS
EDELMAN CANADA PUBLIC RELATIONS
HARDWARE MERCHANDISING
WOLF GUGLER & ASSOCIATES
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION

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Time to build the sales team? Looking for agents or new lines? Want to announce new products or services? See our “Page Three Marketplace” at the bottom of this issue. Hardlines Classifieds get results fast. They cost only $16 per line for two weeks. Call Beverly at 416-489-3396, ext. 2, for more details. — Michael

This week in Hardlines:

NEWSMAKERS HONOURED AT SHOW BREAKFAST

Home Hardware and Sodisco-Howden Group shared the honour of being chosen Hardlines Newsmaker of the Year for 1999. The awards were presented at the fifth annual Hardlines Show Breakfast, which opened the Canadian Hardware and Building Materials Show on February 6, 2000.

In a deal that had become a lightning rod for industry speculation for years, Beaver was acquired by Home Hardware last fall. Home will add Beaver’s 138 joint venture dealers, with sales of $684 million in 1998, to its own $2.1 billion network of 960 hardware and building centres. This deal has conceivably had more impact on this industry than any other event of 1999.

The last year of the century would have been a banner year for Sodisco-Howden even if its Howden Division had not been preparing to celebrate its 100th anniversary.

A series of aggressive initiatives regularly put Sodisco-Howden in the news. The reformation of the Spancan buying group, a groundbreaking deal with I.L.D.C., aggressive streamlining of its banner programs, and the development of the Air Miles and Welcome Neighbour dealer programs were all part of a strategic plan that was capped by several successive quarters of increased

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RONA ADDS NEW DIVISION, NEW VP

As part of RONA’s plan to go national, it has appointed former Wal-Mart vp Rick Blickstead as president and COO of a newly formed retail division. The move is part of a senior management reorganization at RONA that will separate the company’s retail, management, and wholesale functions. Blickstead will oversee development of RONA’s large surface stores into Ontario and the rest of Canada. He’ll also be in charge of the box stores within Québec. Blickstead’s lengthy career in retail includes BiWay and Wal-Mart, both in Canada and the U.S.

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DEPOT FOUNDER WILL SPEAK AT HARDLINES CONFERENCE

The man who “invented” the big box home improvement retail store concept will be the keynote speaker at the Hardlines Fifth Anniversary Marketing Conference on September 14, 2000.

Pat Farrah, executive vice president of merchandising for Home Depot in Atlanta, will head up a roster of industry speakers at the event. They include Bob Obernesser, retail consultant for MacMillan/Doolittle in Chicago, Tim Silk, from the faculty of Ivey Business School at the University of Western Ontario, and Will Rapp, CEO of Gardener’s Supply in Burlington, Vermont.

The Hardlines Marketing Conference will take place in Toronto on September 14, 2000, from 8:30 a.m. to 3:00 p.m. Close to 200 senior decision makers in hardware and home improvement retailing, wholesaling and manufacturing will attend.

Since its inauguration in 1995, the Hardlines Marketing Conference has featured significant players in the Canadian and U.S. hardware and home improvement sindustry as keynote speakers. For more information about the Conference this year, just call us at 416-489-3396.

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MUTUAL ADDS MEMBERS

Mutual Hardware Inc. has added two new members. Ace Hardware Canada has joined the hardware buying group, along with Gregg Distributors, an industrial hardware distributor based in Edmonton. It specializes in automotive, farm and plumbing hardware.

Mutual represents retail, wholesale and industrial distributors. It merged last year with industrial wholesale buying group AHW and now has 28 members, including TruServ Canada, Castle and Federated Co-op.

COMPANIES IN THE NEWS

Réno-Dépôt has announced the locations for two more Building Box stores in Ontario. The first will open in Cambridge, where it will join an existing Wal-Mart and Canadian Tire at the corner of Hespeler and Highway 401 by September, 2000. The next is in Mississauga at the corner of Highway 401 and Winston Churchill Drive. It will be part of a power centre with at least two other big box stores. Each store will be 125,000 sq.ft. and employ about 300. The Building Box is a division of Réno-Dépôt Inc., which is itself a subsidiary of the French company, Groupe Castorama.

Home Depot Canada opened its fifth store in Edmonton on February 3. The company now employs 950 in that city, including staff at its western lumber distribution centre. Another store will open February 10 in Orleans, Ont., near Ottawa. This will be the third outlet in the capital region.

Canadian Tire Corp. ended 1999 with total sales of $4.7 billion, up 8.8% from $4.3 billion in 1998. Canadian Tire associate dealers saw total retail sales climb 7.7% over 1998, reflecting the increased number of larger, new-format stores. Same-store sales, however, rose only 2.9%. The retail division accounted for sales of $3.8 billion, up 8.2% from the $3.5 billion recorded in 1998. The increase was driven by higher retail sales, which resulted in a year-over-year 8% increase in shipments to associate dealers.

RONA’s 12th big box L’entrepôt opened in Brossard, Qué., on February 2. It will comprise 163,000 sq.ft. of selling space and cost $20 million to build.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	32.50	26.40
Canfor	19.25	4.25	15.50
Goodfellow	12.25	7.50	10.05
Hudsons Bay	23.85	14.00	13.70
Sears Canada	42.50	18.25	39.60
Taiga Forest	14.75	9.40	10.80
West Fraser	41.00	28.00	37.50

“We have watered our horses in Helicon.”
&endash; George Chapman (Hey, don’t ask me, it just sounds good! &endash; M.M.)

PEOPLE ON THE MOVE

The Building Box has added to its management team in its new offices in Markham, Ont. John Whicher joins as lumber and building materials merchant. He was formerly vice-president , commodity lumber products at Cashway … Stan Curry, formerly with White Rose, has joined as merchant for nursery and seasonal &endash; Ron Ishmael moves over from Lansing/Revy as hardware and plumbing merchant &endash; Peter Stephens has been appointed merchant in charge of hardlines, paint and electrical. He was formerly with Wal-Mart Canada &endash; Rob McDonald has been appointed director of instore merchandising. His background includes Zellers and Home Depot/Aikenhead’s … Two store managers have also been appointed: Elizabeth Hemmerling comes over from The Office Place &endash; John Patrick, formerly vice-president operations with Zellers, has also become a store manager. (905-479-2500)

Overheard &endash; “I’ve got a few things up my sleeve. Other sites are under consideration. We are well ahead of our plan. We’re having fun!”&endash; Sylvain Toutant, vice-president marketing and development for Réno-Dépôt Inc., on the company’s expansion plans for its Building Box banner in Ontario.

MARKET INDICATORS

Homeowners spent an average of $1,670 on repairs and renovations in 1998, says Stats Canada, basically unchanged from 1997 and well below the peak of $2,710 in 1989. In 1998, average spending on work contracted out was $1,070. Spending by homeowners on materials has decreased as contractor spending has risen, however. In 1998, they spent an average of $600 on materials for their homes. Rural homeowners spent more than their urban counterparts on repairs and renovations &emdash; $1,720 versus $1,660. They also spent more on materials than urban owners ($800 versus $540).

Retail trade climbed 0.6% to $22.0 billion from October to November, 1999, according to Stats Canada. Excluding auto sales, however, the number dropped 0.5%. Department store sales dropped 8.2%, accounting for most of the decline. Retail sales year-to-date were up 5.4% over the first 11 months of 1998, though.

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.

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HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: 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

February 7, 2000 – Volume vi, #5
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

Check out our incredible Classifieds section!

With huge thanks to this year’s sponsors:

STERLING COMMERCE
INTACTIX
THE CANADIAN HARDWARE & BUILDING MATERIALS SHOW
DIMENSIONS RETAIL SYSTEMS
EDELMAN CANADA PUBLIC RELATIONS
HARDWARE MERCHANDISING
WOLF GUGLER & ASSOCIATES
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION

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This week in Hardlines:

NEWSMAKERS HONOURED AT SHOW BREAKFAST

The last year of the century would have been a banner year for Sodisco-Howden even if its Howden Division had not been preparing to celebrate its 100th anniversary.

* * * * * * *

RONA ADDS NEW DIVISION, NEW VP

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DEPOT FOUNDER WILL SPEAK AT HARDLINES CONFERENCE

The man who “invented” the big box home improvement retail store concept will be the keynote speaker at the Hardlines Fifth Anniversary Marketing Conference on September 14, 2000.

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MUTUAL ADDS MEMBERS

COMPANIES IN THE NEWS

RONA’s 12th big box L’entrepôt opened in Brossard, Qué., on February 2. It will comprise 163,000 sq.ft. of selling space and cost $20 million to build.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	32.50	26.40
Canfor	19.25	4.25	15.50
Goodfellow	12.25	7.50	10.05
Hudsons Bay	23.85	14.00	13.70
Sears Canada	42.50	18.25	39.60
Taiga Forest	14.75	9.40	10.80
West Fraser	41.00	28.00	37.50

“We have watered our horses in Helicon.”
&endash; George Chapman (Hey, don’t ask me, it just sounds good! &endash; M.M.)

PEOPLE ON THE MOVE

MARKET INDICATORS

Hardlines Classifieds

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Jan24_00

January 24, 2000 – Volume vi, #3
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

JOIN US FOR OUR BIRTHDAY AT THE HARDWARE SHOW: If you still haven’t reserved your spot for our Fifth Annual Show Breakfast to kick off the Canadian Hardware & Building Materials Show, I urge you to call Bev right away at extension 2. Space is almost filled up!

ALSO PRESENTING THE 1999 HARDLINES NEWSMAKER OF THE YEAR AWARD!

Sunday, February 6, 2000, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds. Featuring R&B Legend Bobby Dean Blackburn and his Trio.

With huge thanks to this year’s sponsors:

STERLING COMMERCE
INTACTIX
THE CANADIAN HARDWARE & BUILDING MATERIALS SHOW
DIMENSIONS RETAIL SYSTEMS
EDELMAN CANADA PUBLIC RELATIONS
HARDWARE MERCHANDISING
WOLF GUGLER & ASSOCIATES
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION

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HARDLINES WHO’S WHO DIRECTORY
Make sure you know who the key buyers are at the Hardware Show! The Hardlines Who’s Who is 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. Subscriber cost is only $105.

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WHO ARE THE TOP PLAYERS IN THE U.S.?
I get asked this question a lot, so now there’s a handy directory with the answers you need. Our TOP 50 Directory of leading home improvement retailers in the U.S. is a handy, affordable way to check out the action south of the border. It’s not as comprehensive as our blockbuster Who’s Who Directory of Canadian Retailers, so we’ve priced it accordingly &endash; just $45 for subscribers. Call or e-mail us for more information.

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HARDLINES IN COLOGNE:Thinking of going to the world’s largest hardware show this spring? You should be &endash; the Cologne International Hardware Fair/DIY’Tec, March 12-15, 2000, is the largest of its kind in the world and this is the year all the biggies will be there. That’s why we’ve put together an incredible travel package to Cologne, Germany, with the support of External Affairs Canada. Call or email us for info! But act quickly on this because all the good hotel rooms are booking up fast! —

Michael

Enough blatant self-promotion already &endash; This week in Hardlines:

NEW FACILITIES STRENGTHEN CANWEL’S ROLE IN PTW

Hot on the heels of its takeover by The Futura Corp. in Vancouver, CanWel Distribution Ltd. has announced it will open two new facilities. The first is a distribution centre on Vancouver Island, which will open effective February 28th. A new customer service centre in the Saskatoon area will open by this summer. With sales of $450 million, CanWel already operates 12 distribution centres and one reload centre.

The two new centres reflect CanWel’s commitment to pressure-treated wood sales. Its parent, The Futura Corp., manufactures PTW from facilities in B.C., Alberta and Ontario. “CanWel hasn’t been a major player in central and western Canada in pressure-treated wood,” says Dennis Nykoliation, president and CEO, “but we sure as heck are now. Our synergy with Futura gives us the growth opportunity we’ve been looking for.”

The 3.5-acre Vancouver Island distribution centre is in Chemainus, between Victoria and Nanaimo, on property owned by Futura. It will service the market of about 75 building supply dealers on the Island, providing commodity lumber, plywood and PTW. The Saskatoon customer service centre will stock commodity products, PTW and allied building materials.

“For the past several years, CanWel has serviced the market from outside the province,” says Nykoliation. “Now Saskatchewan will have a full service distribution centre that will be second to none.”

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HOME DEPOT’S CONTRACTOR CATALOGUE EXPECTED TO ROLL OUT THIS SPRING

Home Depot Canada has named its catalogue division – and put someone in place to run it. It will be called Home Depot Commercial Direct, an extension of the Maintenance Warehouse catalogue business established last year in the U.S. Leo Hawkes has come over from Acklands to head up the division as vice-president and general manager. The catalogue business was bought by Home Depot in the U.S. to help it grow its contractor business. The Canadian division is expected to roll out with its own catalogue sometime this spring.

COMPANIES IN THE NEWS

Cameron Ashley Building Products has been the subject of a senior management buyout. The move is being spearheaded by chairman and CEO Ron Ross and includes all the company’s vps. It is backed financially by CGW Southeast Partners, the company that has helped with at least one of CA’s previous acquisitions. CGW currently owns about 11% of the company’s outstanding shares, which are being bought for US$15.10 each, a 35% premium over its recent share prices. The transaction is expected to close in the second quarter of 2000 and be worth around US$320 million, including the assumption of US$182 million in debt. Cameron Ashley had sales of US$1.14 billion in its fiscal year ended October 31, 1999.

For the year ended January 1, 2000, Sears Canada Inc. had its third consecutive year of record earnings, which rose to $199.6 million, up 36% over $146.4 million a year earlier. Total revenue increased to $6.131 billion, compared with $5.481 billion in 1998. Unaudited net earnings for the fourth quarter were $107.1 million, an increase of $22.1 million or 26% over 1998’s record fourth quarter earnings of $85.0 million. Total revenue for the quarter increased 13.3%, reaching $2.012 billion versus $1.775 billion last year.

Castle Building Centres Group has added the following new members: ARCO Lumber Ltd., Eel River Crossing, N.B.; Ron Savoie, Daniel Berube; Breault’s Building & Masonry Supplies, Kirkland Lake, Ont., Albert and Kevin Breault; Button’s Marine Inc., Old Perlican, Nfld., Aaron Button; Harron Hardware & Building Supplies, Moorefield, Ont., Jeff Harron; Herner Wood Products Limited, Baden, Ont., David Herner; R.W. & Sons Builders Inc., Balcarres, Sask., Greg Warnez.

Slocan Forest Products Ltd. achieved record net earnings in 1999 of $110.3 million, more than doubling shareholders’ equity from 1998 levels. Sales reached $1.1 billion, up from $936.2 million in 1998. The company also manage to reduce debt by over $250 million in 1999, resulting in a major improvement in Slocan’s financial position. It also accumulated cash of over $100 million. Fourth quarter net earnings were $20.1 million, compared with a net loss of $136.2 million for the fourth quarter of 1998. The 1998 net loss included after tax write-downs of assets (primarily pulp) of $125.1 million. Sales in the fourth quarter of 1999 were $242.0 million, compared with sales of $223.2 million a year earlier.

Sears Canada will open a Sears Furniture and Appliance store at Orchard Park Shopping Centre in Kelowna early this summer. Approximately 49,000 sq.ft. of the existing 80,000 square foot former Eaton’s location will be converted to accommodate the new outlet, which will sell furniture, rugs, accent-decor items and major home appliances.

Richelieu Hardware Ltd. has acquired Saskatchewan-based European Hardware, which operates two distribution and warehousing centres in Regina and Saskatoon. The deal will add about $3 million annually to Richelieu’s sales and bring Richelieu’s total number of distribution centres to 17, including its first in the U.S., in Detroit.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	32.50	26.10
Canfor	19.25	4.25	16.65
Goodfellow	12.25	7.50	10.60
Hudsons Bay	23.85	14.00	15.50
Sears Canada	42.50	18.25	40.25
Taiga Forest	14.75	9.40	12.15
West Fraser	41.00	28.00	36.25

“Complete possession is proved only by giving. All you are unable to give possesses you.”
&endash; André Gide (1869-1951)

PEOPLE ON THE MOVE

Anne Legault has joined Home Depot Canada as regional merchandise manager for Québec. She comes over from RONA Inc., where she served as director of paint, decorating and floor coverings … Eric Foisy has been appointed Home Depot’s lumber and building materials merchant for Québec. He was formerly at Owens Corning. (416-609-0852)

Brent Thomson has been appointed president and CEO of Westroc, a subsidiary of BPB plc. Thomson joined Westroc in 1977 and was appointed vice-president finance in 1984. From 1993 to 1998 he also acted as regional vice-president for Ontario, until becoming vice-president manufacturing in June 1998. The move is effective March 1, 2000. (905-823-9890)

Beth Pustai has joined Sodisco-Howden Group as the human resources co-ordinator for the Howden Division. She was formerly with Eaton’s, where she spent 22 years, the past eight years in its human resources function. (519-686-2200)

Bill Martin has been named president and COO of Designers Edge. He was formerly executive vice-president … Martin replaces company founder Monte Leen, who becomes chairman and CEO &endash; Dan Wylie has been promoted from controller to vice-president and CFO. (425-637-9601)

MARKET INDICATORS

Housing starts in 1999 were up an estimated 6.6% to 146,500 units, says CMHC in its fourth quarter Housing Outlook. This year is expected to remain brisk, with starts increasing another 4.6% to 153,200 units. Resales (sales of existing homes) rose an estimated 6% in 1999 to 333,300 units and are forecast to rise another 2.2% in 2000, to 340,600 units. Resale house prices were up an estimated 3% last year; expect another 3% increase this year. New housing prices rose an estimated 1% in 1999 and is anticipated to increase 2% in 2000.

OVERHEARD – “The construction market has been running strong for eight years and it’s supposedly run its course &endash; at least that’s what the public markets seem to think. Of course, they’ve been saying that for two years and it hasn’t materialized.”&endash; Ron Ross, chairman and CEO of Cameron Ashley Building Products, explaining to Hardlines why his company has been undervalued on the market, which has resulted in management taking the company private again.

Hardlines Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

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HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 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.

January 24, 2000 – Volume vi, #3
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

ALSO PRESENTING THE 1999 HARDLINES NEWSMAKER OF THE YEAR AWARD!

Sunday, February 6, 2000, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds. Featuring R&B Legend Bobby Dean Blackburn and his Trio.

With huge thanks to this year’s sponsors:

STERLING COMMERCE
INTACTIX
THE CANADIAN HARDWARE & BUILDING MATERIALS SHOW
DIMENSIONS RETAIL SYSTEMS
EDELMAN CANADA PUBLIC RELATIONS
HARDWARE MERCHANDISING
WOLF GUGLER & ASSOCIATES
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION

* * * * * * *

Michael

Enough blatant self-promotion already &endash; This week in Hardlines:

NEW FACILITIES STRENGTHEN CANWEL’S ROLE IN PTW

* * * * * * *

HOME DEPOT’S CONTRACTOR CATALOGUE EXPECTED TO ROLL OUT THIS SPRING

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	32.50	26.10
Canfor	19.25	4.25	16.65
Goodfellow	12.25	7.50	10.60
Hudsons Bay	23.85	14.00	15.50
Sears Canada	42.50	18.25	40.25
Taiga Forest	14.75	9.40	12.15
West Fraser	41.00	28.00	36.25

“Complete possession is proved only by giving. All you are unable to give possesses you.”
&endash; André Gide (1869-1951)

PEOPLE ON THE MOVE

MARKET INDICATORS

Hardlines Classifieds

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 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.

Jan17_00

January 17, 2000 – Volume vi, #2
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

HARDLINES AT CHS: Invitations are now going out to Hardlines subscribers and special guests to join us at our very special Fifth Annual Show Breakfast to kick off the Canadian Hardware & Building Materials Show. If you haven’t received your invitation yet, watch for it in the days ahead. It’s our 5th birthday, and we are, quite frankly, going to rock!

Also presenting the 1999 Hardlines Newsmaker of the Year Award!

Sunday, February 6, 2000, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds. Featuring R&B Legend Bobby Dean Blackburn and his Trio. For more information, call or email us right away!

With huge thanks to this year’s sponsors:

STERLING COMMERCE
INTACTIX
THE CANADIAN HARDWARE & BUILDING MATERIALS SHOW
DIMENSIONS RETAIL SYSTEMS
EDELMAN CANADA PUBLIC RELATIONS
HARDWARE MERCHANDISING
WOLF GUGLER & ASSOCIATES
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION

********

Michael

This week in Hardlines:

CANADIAN TIRE CEO WILL RETIRE THIS YEAR

Stephen E. Bachand, president and CEO of Canadian Tire Corp., has announced his intention to retire by the end of this year. Bachand, age 61, will quit even sooner if a replacement is found before that. In the interim, he will maintain his full duties, continuing to oversee the rollout of the company’s current strategic plans and manage its day-to-day operations.

Bachand joined the company on March 1, 1993, after some 30 years at Hechinger’s in the U.S. There, he ended up overseeing that company’s own large format concept, Home Quarters, which had 45 stores.

When he arrived at CTC, the company faced unrest from its dealers, uncertainty from its shareholders, a new gremlin-plagued distribution centre and the onslaught of U.S.-style retailers, particularly Wal-Mart and Aikenhead’s. In an interview with Hardware Merchandising magazine in 1994 (when I had a real job &emdash; M.M.), he observed that “the company hasn’t kept pace with a number of the changes that have been going on in retailing over the past few years, so I think we’ve fallen behind.”

Years of diminishing profits finally reversed under Bachand’s tenure. With a common foe (Wal-Mart), the dealers came onside, and with a huge infusion of cash (a projected $1.5 billion), CTC began re-formatting and expanding its stores, a process that is now about halfway complete. After being stalled at around $3 billion in 1992 and 1993, sales began to climb again. Both sales and shareholder value have increased by more than $1 billion since Bachand took over.

A selection committee chaired by Gilbert S. Bennett, chairman of Canadian Tire, will conduct a search for Bachand’s replacement. One possible candidate is Wayne Sales, executive vice-president of CTC, considered by many to be instrumental in the company’s revived fortunes.

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BANKRUPT THUNDERBIRD CLOSES ITS DOORS

After more than three decades serving western markets, Thunderbird Bath & Kitchen closed its doors finally on Saturday. Under the auspices of the receiver, PricewaterhouseCoopers, the company went into bankruptcy on November 3, 1999. A selloff of merchandise began then, with stores closing one after another and merchandise moved to remaining stores.

By last Saturday, only three stores were left to complete the merchandise selloff. Any remaining inventory was moved to Thunderbird’s warehouse, where all remaining assets will be sold off by January 31.

At its peak in the early ’90s,Thunderbird’s sales reached $45 million through 25 stores. In 1998, sales were down around $30 million from 13 stores. By the end, sales had dropped to about $18 million from 11 remaining stores. The company suffered a further setback last year when its president, Marty Thorbeck, died suddenly.

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HOME HARDWARE’S WALTER HACHBORN NAMED TO ORDER OF CANADA

The man who co-founded Home Hardware Stores Ltd.has been named to the Order of Canada. Walter Hachborn, president of Home Hardware, introduced the dealer-owned hardware co-op in Canada, providing a viable retail model for the independent dealer. Hachborn, with partners Henry Sittler and Arthur Zilliax, founded the company in 1964 with a group of 120 dealers. The co-op model allowed the retailers to reduce costs by taking ownership of their distribution.

The award comes on the heels of the announcement that Hachborn has been recognized as retailer of the century by Hardware Merchandising magazine. This award will be presented on February 6 at the Outstanding Retailer Awards during the Canadian Hardware and Building Materials Show in Toronto.

COMPANIES IN THE NEWS

Ontario Premier Mike Harris announced a job creation program during a visit to the new Woodbridge Revy store near Toronto on January 13. John Kitchen, president of Lansing Buildall and vp of Revy’s Ontario division, gave Harris a tour of the store. The announcement included the $220 million investment Revy plans to make in the province, which will result in 3,000 jobs.

Sales for MAAX Inc. in its third quarter ended November 30, 1999. reached $108.7 million, compared with $87.1 million for the same period of last year, a 24.7% increase. This marked its seventh consecutive quarter of growth. Net income grew by 36.1% to $6.35 million, up from $4.67 million during the third quarter of the previous year. For the first nine months, sales rose by 42.4% to $333.6 million, up from $234.3 million.

Weyerhaeuser Co. has acquired controlling interest in TJ International, which owns 51% of Trus Joist MacMillan. Weyerhaeuser already owns 49% of Trus Joist. Weyerhaeuser will purchase all outstanding shares of TJ International for US$42 per share, making it the world’s largest producer of engineered wood products.

Cameron Ashley Building Products had sales of US$1.14 billion in its fiscal year ended October 31, 1999, up 26.7% from U.S.$899.2 million in 1998. Net income was US$17.1 million, up from U.S.$15.3 million.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	32.50	31.30
Canfor	19.25	4.25	17.75
Goodfellow	12.25	7.50	11.30
Hudsons Bay	23.85	14.00	16.20
Sears Canada	42.50	18.25	39.00
Taiga Forest	14.75	9.40	13.00
West Fraser	41.00	28.00	36.50

“Intelligence is almost useless to someone who has no other quality.”
-Alex Carrel (1873-1944)

PEOPLE ON THE MOVE

The latest shuffle of buyer duties at Canadian Tire occurred last Thursday, this time in senior merchandising director Ed Johnston’s department: Tony Whitehouse is in charge of hand and power tools and woodworking, with Pam Pike handling power tool accessories and associate buyer Doug Graham handling hand tools and carpentry. Mike Bache is now buyer for mechanics’ tools and Mike McKay is in charge of general hardware. Ellen Johnson continues as buyer for paint and accessories; while Dave Pardy is décor, electrical and plumbing buyer and Rich Chapman is his associate buyer. Mike Magennis continues with electrical and plumbing parts and Bob Vaillancourt continues to handle safety and security products. (416-480-3000)

Ted Fuller has joined King Canada Tools as vice-president. His background in the industry includes seven years at Delta International Machinery and, most recently, as general manager of CMT Bits in the U.S. (905-738-3622)

Kimberley Underhay has joined Master Lock Canada as retail accounts manager. Her primary responsibilities will include managing large retail accounts in Ontario. She was most recently at Sandvik Canada and now reports to Rick Simpson, general manager of Master Lock. (800-227-9599)

Tim Creech has been appointed national pricing coordinator for CanWel Distribution Ltd. In the newly created position, he will be responsible for creating a national pricing program for CanWel. (604-432-1400)

The following appointments have been made at Task Tools & Abrasives Inc.: Craig Caplan has been promoted to president from vice-president … Michael Caplan, who formerly held president and CEO duties, will continue as CEO &emdash;Gerald Spier has been appointed vice-president at the Brantford division. He was formerly general manager &emdash; eastern division. (604-278-3508)

David Glass, president and CEO of Wal-Mart Stores Inc. in the U.S. will step down immediately and Lee Scott, CEO and vice-chairman, will take over. Glass, 64, will remain with Wal-Mart full-time for at least the next year as chairman of the board.

Hardlines Classifieds

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 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.

January 17, 2000 – Volume vi, #2
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

Also presenting the 1999 Hardlines Newsmaker of the Year Award!

With huge thanks to this year’s sponsors:

STERLING COMMERCE
INTACTIX
THE CANADIAN HARDWARE & BUILDING MATERIALS SHOW
DIMENSIONS RETAIL SYSTEMS
EDELMAN CANADA PUBLIC RELATIONS
HARDWARE MERCHANDISING
WOLF GUGLER & ASSOCIATES
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION

********

Michael

This week in Hardlines:

CANADIAN TIRE CEO WILL RETIRE THIS YEAR

********

BANKRUPT THUNDERBIRD CLOSES ITS DOORS

********

HOME HARDWARE’S WALTER HACHBORN NAMED TO ORDER OF CANADA

COMPANIES IN THE NEWS

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	32.50	31.30
Canfor	19.25	4.25	17.75
Goodfellow	12.25	7.50	11.30
Hudsons Bay	23.85	14.00	16.20
Sears Canada	42.50	18.25	39.00
Taiga Forest	14.75	9.40	13.00
West Fraser	41.00	28.00	36.50

“Intelligence is almost useless to someone who has no other quality.”
-Alex Carrel (1873-1944)

PEOPLE ON THE MOVE

Hardlines Classifieds

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 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.

Jan10_00

January 10, 2000 – Volume vi, #1
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

REVY TO CLOSE BOX IN VANCOUVER, OPENS ONE IN TORONTO

Revy Home Centres Inc. will close an underperforming store this spring in what might be considered the first casualty in Canada’s big box wars. However, Al Cheney, vice-president store operations for Revy, says the store was not in a preferred site in the first place. It was part of the deal when Revy bought Eagle Hardware and Garden in 1994 and has been a chronic underperformer.

The store is at the south end of the Patullo Bridge in Surrey, in a predominantly commercial/working class neighborhood. “The site did not meet with Revy’s criteria when we bought Eagle,” says Cheney. “But we had to open it anyway.” All full- and most part-time staff will be relocated to other stores.

The Surrey market, Cheney adds, is being well-served by the Fleetwood store, which Revy acquired when it took over Lumberland Building Materials in 1997. That store was fully refitted with big box racking last year.

Revy continues its expansion plans in other parts of the country, however, particularly in the Greater Toronto Area. It opened its second store there on Saturday, this one in Woodbridge, just north of the city. The 168,000-sq.ft. outlet carries 50,000-plus SKUs, will employ 300 and represents a $22 million investment. Pushing the all-Canadian angle, the national anthem replaced a company cheer to kick off the opening proceedings.

The next store is slated to open is in Toronto’s west end (Stockyards). Other openings scheduled for this year are Scarborough, at Warden and Eglinton, and a store in Kitchener. Also announced: a store in Mississauga’s Square One Mall and another in London, Ont., at a site to be announced.

********

SODISCO-HOWDEN TO REDUCE FINANCIAL EXPENSES WITH REFINANCING

Sodisco-Howden Group Inc. has renegogiated with its largest debenture holder, a member company of the Paribas Group, which owns more than 87% of the outstanding debentures. According to the agreement, Sodisco-Howden will modify the terms and conditions of the debentures so holders can convert them on or before March 23, 2000, to receive a cash premium of $0.025 for each dollar of principal amount of the debentures plus interest payable at the time of the conversion. A total of $11.3 million in series D and DD debentures is involved. In addition, Sodisco-Howden’s board of directors has approved the redemption of series E debentures not converted on March 24, 2000.

“This very important step will allow our company to finally turn the page on the last portion of the financial structure inherited from Unigesco,” says Tony Molluso, president and CEO of Sodisco-Howden. More than $3 million in financial expenses are expected to be eliminated for the year ending December 31, 2000.

********

CHS OFFERS NEW PROGRAMS TO BOOST BUYING AT SHOW

The Canadian Hardware Show will offer briefing sessions to exhibitors on February 4 and 5 during the show’s setup at the National Trade Centre. The show is hosted by the Canadian Retail Hardware Association in conjunction with the Lumber & Building Materials Association of Ontario,The purpose of the sessions, says CRHA executive director Bob Elliott, is to help exhibitors generate sales at the show, which will be held February 6-8 in Toronto.

In addition, the show will feature cash incentives to attending dealers &endash; $1,000 will be given out every hour during the show’s three days. For more information, contact the CRHA at: 905-821-3470.

********

RETAIL SALES ON A ROLL, INDEPENDENT MERCHANTS SAY

The 1999 holiday sales season was the best for Canadian retailers in a decade. According to a report by Retail Council of Canada, 60% of independent storeowners surveyed across the country say their sales soared over the 1998 holiday season by an average of 18%. And they expect the good times to continue through 2000. Nearly 70% of respondents expect their sales to rise this year by an average of 14%. One-fifth of survey respondents said their 1999 holiday sales were about the same as the previous year, and another 20% said their holiday sales were down by an average of 15% from 1998. More than 350 independent merchants responded to the survey, which was conducted January 4-6.

COMPANIES IN THE NEWS

The deal for Sears Canada Inc. to purchase all outstanding common shares of Eaton’s has been approved by Eaton’s creditors and shareholders and sanctioned by the Superior Court of Justice of Ontario, effective December 30, 1999. The acquisition includes the Eaton’s name and the following 16 Eaton’s locations:Brentwood Mall, Burnaby, B.C.; Orchard Park Shopping Centre, Kelowna, B.C.; Eaton Centre, Victoria; Pacific Centre, Vancouver; South Centre Mall, Calgary; Eaton Centre, Calgary; St. Vital Centre, Winnipeg; Polo Park, Winnipeg; Westmount Shopping Centre, London, Ont.; Sherway Gardens, Toronto; Yorkdale Shopping Centre; Toronto; Scarborough Town Centre, Toronto; Eaton Centre, Toronto; Rideau Centre, Ottawa; Galleries La Capitale, Québec City; Halifax Shopping Centre, Halifax. Sears will lease two stores formerly occupied by Eaton’s at the following locations: Guildford Place, Surrey, B.C. and Don Mills Centre, Toronto.

Newell Industries Canada has relocated its head office to Rubbermaid’s facility at 2562 Stanfield Road, 2nd Floor, Mississauga, Ont.; phone: 905-281-7305, fax: 905-281-7363.

Hudson’s Bay Co. will acquire two former Eaton’s locations &endash; one in Nanaimo, B.C., and another in Sherbrooke, Qué.

Malco Tools International has announced that McCully & Associates will represent its tools across Canada. Malco, with Kenyon Tools, manufactures a full range of specialty hand tools for use in the roofing, HVAC, fastening and gardening markets.

T.A. Drummond Metal Products has sold off its Lycor Products division to Canada Wood Specialties of Orillia, Ont. The transaction involved all of Drummond’s specialty lines, including dowels and plugs, shelves and brackets, shutters and cabinet doors, and veneer edging. Drummond’s intention is to focus on its core product lines of flooring trim and accessories.

Arrow Lock Manufacturing (Canada) Inc. has been acquired by Swedish lock company Assa Abloy for CDN$5.18 million. Arrow Canada is an independent distributor for Arrow Lock of Brooklyn, N.Y., which is already owned by Assa Abloy.

TruServ Corp., through its commercial/industrial division, has made a five-year strategic alliance with Equalfooting.com to serve TruServ’s 800 commercial/industrial division. Equalfooting.com is a new online purchasing network designed to help small businesses compare pricing from a number of national and regional suppliers in Canada and the U.S. and then purchase their industrial supplies. The service will feature more than 500,000 industrial supplies and equipment. ({ HYPERLINK http://www.equalfooting.com }www.equalfooting.com)

Sears department stores in the Greater Toronto Area have teamed up with Toronto’s Chill Out program with a two-month long clothing drive for needy families. Throughout January and February 2000, community members across the city can drop off new and clean used clothing at 16 Sears locations across the GTA.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	32.50	35.35
Canfor	19.25	4.25	19.00
Goodfellow	12.25	7.50	11.30
Hudsons Bay	23.85	14.00	17.00
Sears Canada	42.50	18.25	40.90
Taiga Forest	14.75	9.40	13.00
West Fraser	41.00	28.00	38.00

“We then that are strong ought to bear the infirmities of the weak.”
&endash; Romans, 15:1

PEOPLE ON THE MOVE

Richard Cousins has been appointed CEO of U.K.-based BPB, effective April 1, 2000. Cousins is currently president Westroc Inc. of Canada, one of the largest companies in the BPB group. He will replace David Leonard, BPB’s current CEO. No replacement has been named yet for Cousins in Canada. (905-823-9890)

Raymond Roy has been appointed national industrial sales development manager for CanWel Distribution Ltd., effective January 17. He will be based in the CanWel customer service centre in Blainville, Qué., reporting to Michel Gregoire, vice-president and general manager, eastern division. (450-435-6911)

MARKET INDICATORS

Sales of existing homes in the U.S. increased 6% in November after higher mortgage rates had helped drive sales down four months in a row, to a seasonally adjusted annual rate of 5.09 million units, according to the National Association of Realtors. Good weather and anticipated increases in mortgage rates are believed to have spurred the increase. However, new home sales fell 7.1%.

NOTED …

At Home Depot’s vendor meetings last month in the U.S., Executive vp of merchandising Pat Farrah stressed the importance of suppliers focusing on all of the Depot’s businesses, including the Internet and its contractor business. Home Depot intends to open 12 stores in Canada this year, nine in the east and three in the west

Overheard … “We operate stores within a half-mile of Home Depot in Winnipeg, Calgary, Edmonton and here in Vanouver that are all performing well.” &endash; Al Cheney, vice-president store operations for Revy Home Centres Inc., says the decision to close its Surrey store, near a Home Depot, is not due to competitive pressures but to the store’s location.

Overheard … “As the market changes, they just pick them up and move them and start again.”&endash; Rob Denson, manager of the Sutherlands lumber yard in Oklahoma City, quoted in the Daily Oklahoman. The store will close soon after being sandwiched between a Home Depot and a Lowe’s in that city. But with 70 outlets, Kansas City-based Sutherlands will simply look for a new location, possibly in another city.

Hardlines Classifieds

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 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.

January 10, 2000 – Volume vi, #1
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

REVY TO CLOSE BOX IN VANCOUVER, OPENS ONE IN TORONTO

********

SODISCO-HOWDEN TO REDUCE FINANCIAL EXPENSES WITH REFINANCING

********

CHS OFFERS NEW PROGRAMS TO BOOST BUYING AT SHOW

********

RETAIL SALES ON A ROLL, INDEPENDENT MERCHANTS SAY

COMPANIES IN THE NEWS

Newell Industries Canada has relocated its head office to Rubbermaid’s facility at 2562 Stanfield Road, 2nd Floor, Mississauga, Ont.; phone: 905-281-7305, fax: 905-281-7363.

Hudson’s Bay Co. will acquire two former Eaton’s locations &endash; one in Nanaimo, B.C., and another in Sherbrooke, Qué.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	32.50	35.35
Canfor	19.25	4.25	19.00
Goodfellow	12.25	7.50	11.30
Hudsons Bay	23.85	14.00	17.00
Sears Canada	42.50	18.25	40.90
Taiga Forest	14.75	9.40	13.00
West Fraser	41.00	28.00	38.00

“We then that are strong ought to bear the infirmities of the weak.”
&endash; Romans, 15:1

PEOPLE ON THE MOVE

MARKET INDICATORS

NOTED …

Hardlines Classifieds

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 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.

Dec13_99

Hardlines Newsletter

December
13, 1999 – Volume v, #50

Michael McLarney, Editor & Publisher

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

Well,
this is it. Our final issue of the millennium! The next one will
appear January 3, 2000, but the World Headquarters of Hardlines will
remain open until noon, December 22, so feel free to call us until
then.

I
want to thank you for your tremendous support over the past five
years (yes, it’s been that long!). I look forward to many more years
reporting on this very exciting industry. On behalf of Beverly Allen,
Business Manager at Hardlines, and me, your trusty typo-challenged
Editor and Publisher (no more calls about “Atlanta-based Lowe’s,”
puh-leez!), have a safe and happy holiday. See you in Y2K! &emdash;
Michael.

This week in Hardlines:

HOME
DEPOT’S ANNETTE VERSCHUREN: THE EXCLUSIVE MILLENNIUM
INTERVIEW

Canada will
eventually have 120 Home Depot stores, and 30-40 of them will be in
Québec, says Annette Verschuren, president of Home Depot
Canada. That growth means the company will erect another 17 or 18 in
2000, after finishing off this year with 52 (the last one opens
officially this Friday in Peterborough, Ont.).

Worldwide
expansion:

Home Depot expects to increase the number of its stores worldwide
from 928 at the end of the current fiscal year (which is January 30,
2000) to 1,900 in 2003. The company expects its share of the North
American market to increase from 8% to 18% in 2003, based on current
sales growth of 25% annually.

Growth in
Canada has typically been slightly ahead of the company average and
sales for the year will exceed $2 billion, up from an estimated $1.85
billion last year (Home Depot doesn’t break out its sales by
country).

While Home
Depot has gone toe to toe with Revy Home Centres in the west, in
southern Ontario it has pretty much had the big box market to itself
&emdash;until now. Revy’s first store, in Mississauga, has opened,
while the second one opens this week in Vaughan, north of the city.
Now Réno-Dépôt has started picking up sites in
Toronto. It already has two confirmed, in Brampton and Scarborough,
which will open next year under the The Building Box name.

Verschuren
acknowledges the competition, saying, “I’m always running scared. I
have to be.” Réno-Dépôt’s parent, Castorama of
France, is backing Réno-Dépôt’s expansion in
Ontario to the tune of $350 million over the next four or five years.
Castorama is perceived as being up for the fight: it is now part of
U.K.-based Kingfisher, which in turn owns home improvement giant
B&Q, with combined sales of CDN$22 billion.

RONA,
meanwhile, has committed to expanding its presence in Ontario from 40
stores to 250 in the next five years, including at least 15 big
boxes. It already has one in Ottawa and another planned for
Cambridge.

Competitive
strategies:

To stay ahead of this competition, Verschuren says Home Depot’s
forté is innovation. Each new store contains new wrinkles
learned from what works in existing stores. One of the most radical
stores to open so far is the “Type Six” store in Brampton, on Highway
7 near Highway 410. Its emphasis on boutiques for home fashion and
décor, and an overall attempt to brighten up the warehouse
concept in general, are gambits aimed at attracting a bigger chunk of
the lucrative female spending dollar. They are also experiments, the
elements of which may turn up in later Home Depot outlets.

“Each store
we open is brighter, smarter, more attractive to our customers,”
Verschuren says.

However,
more radical experiments such as Villager’s Hardware will not arrive
in Canada until at least 2001. “We’ll let it test in the U.S. and if
it goes forward corporate-wide, it will end up in Canada.”

Home
Depot in Québec:

Verschuren wants between 15 and 17 Home Depot stores in the
Montréal market eventually. She also expects a total of 30-40
in the province of Québec. Besides nailing down key locations,
the Québec strategy involves everybody at the executive level
taking lots of French lessons, although Verschuren, a native of Nova
Scotia, claims to be bilingual.

Acquisition
remains unlikely:

In an earlier interview with Hardlines, Verschuren stated
unequivocally her commitment to expanding only through new stores.
Now she’s softening her stance a bit on an eventual acquisition.
“There’s always a possibility,” she admits.

But she adds
that the likelihood of taking over a company like Kent Building
Supplies in Atlantic Canada is problematic: It has only five big
boxes; the rest are smaller stores, which do not fit the Home Depot
mould. Home Depot’s first two outlets down east will open in Halifax
and Dartmouth next fall; Moncton will open soon after. “We think
[Atlantic Canada] is a five, six, or seven store market,” she
says, adding that she’d like to see a store in St. John’s eventually,
as well.

* * * * * *
* *

REVY
CONFIRMS QUÉBEC EXPANSION

Revy Home
Centres Inc. has announced its intention to enter the Québec
market in 2001 and it’s not averse to making an acquisition to do so.
The company had planned to enter Montréal in 2003, to coincide
with the termination of the non-compete clause between
Réno-Dépôt and Home Depot. But that agreement
ended prematurely.

“That leaves
us having to go into Québec right away,” says Carl Grittner,
president of Revy.

Revy had
intended to finish expanding in Toronto before making the move, but
now wants to get some sites sewn up and one store open quickly. “We
want to get one store to get a wedge in there, but then continue in
Toronto until it’s completed. Then we’ll go back in with four or five
stores,” he says. “But if it works out in Montréal, we could
open them there faster.” Revy intends to have a total of 16 stores in
the GTA, with 10 of them open or in development by the end of
2001.

Besides the
need to secure good urban sites that can accommodate a big box,
Grittner sees Revy’s presence in Montréal as a competitive
strategy in the battle back in Toronto. “It makes sense, since
[the competition] could start a price war in Toronto and live
off their presence in Montréal.”

Grittner
says Revy could open in Québec “very cheaply,” by using the
expertise of another I.L.D.C. member in that province to assist with
advertising and buying. He also wouldn’t mind buying another company
in Québec to facilitate the growth there, including
Réno-Dépôt. “It makes sense if we could get
together or merge the two companies,” Grittner says candidly. “But we
haven’t talked to them. It’s just obvious to want to put the two
[companies] together.”

COMPANIES IN THE NEWS

USG Corp.
will purchase Sybex Inc., the holding company of Beadex Manufacturing
Co. Inc. and The Synkoloid Co. of Canada, two paper faced metal
corner bead and joint treatment businesses. The acquisition will
expand USG’s product offerings to the contractor market, including
its offerings in Canada through CGC, and strengthen its presence in
the West. The two companies had 1998 sales of US$54 million, employ
170 and operate four plants and three distribution centres, primarily
in the Northwest U.S. and Western Canada. Terms of the agreement were
not disclosed.

The BSDA of
B.C.’s second annual trade show and conference has been given the
go-ahead, with 125 dealers already registered and another 100
expected. The event will be held March 3-4, 2000, at the Delta
Pacific Resort and Conference Centre in Richmond.

Hudson’s Bay
Co. will buy three former Eaton’s locations in Ontario: Upper Canada
Mall in Newmarket, Masonville Place in London and Square One in
Mississauga. It has also acquired the Eaton’s in the West Edmonton
Mall. By the spring of 2000 the stores in Newmarket and London will
be converted into Bay Stores; the Mississauga Square One and West
Edmonton Mall locations will become Zellers stores.

Westburne
Inc. has purchased three Ohio branches of Michigan-based All-Phase
Electric Supply. These branches are expected to generate sales in
excess of $65 million in fiscal 2000. It has also executed letters of
intent to buy two unnamed independent plumbing distributors in
Colorado and Arizona, and 50% of a third in Sept-Iles, Qué.,
Distribution J.R.V. Inc.

Procter
& Gamble Canada is launching a line of products under the
direction of John Elliott, business development manager for the
national hardware/home improvement channel. The lineup will include
many items, such as fabric conditioners and cleaning products,
already in the marketplace, and position the company for the launch
of more lines now under development.

OSRAM
Sylvania is now on the web at www.sylvania.com. The site includes
information on the company and locations of retailers that sell its
products.

Salton Inc.
will pay US$137.5 million for the rights to use the name and image of
former boxer George Foreman in marketing its products. Salton, which
sells Toastmaster, Maxim, Breadman, Juiceman, etc., says George
Foreman grilles are among its best-selling products. The deal means
Salton will no longer have to pay Foreman and his partners 60% of the
profits from sales of George Foreman products. Foreman will continue
to assist in the company’s marketing efforts.

Atlanta-based
(never mind!) Home Depot will expand its sales of General Electric
and Whirlpool appliances. The appliances are now in about 15% of the
company’s stores. They’ll be in 95% of them by the end of next year.
The move takes aim at major appliance retailers such as Sears and
Circuit City. the expanded program will include refrigerators,
stoves, dish washers, microwave ovens, washers and dryers. Home Depot
doesn’t plan to sell consumer electronics items such as television
sets and audio gear, however. Home Depot in Canada is already selling
hot water heaters. According to Ronald M. Brill, Home Depot’s chief
administrative officer, the stores will keep only about 60% of
available appliances in stock. The rest can be ordered by viewing
computer screens. Orders would be delivered directly from the
manufacturer, typically within 48 hours.

Home Depot
will open four units in Buenos Aires next year, marking the company’s
first move into Argentina.

Borders, the
bookstore chain in the U.S., has developed an electronic return card
that takes some of the agony and indignation out of customer returns.
The card, which looks just like a shiny platinum credit card, will
hold a prepaid balance in the amount of the customer’s return credit
up to $500. Nothing could be easier.

Salton Inc.
will pay US$137.5 million for the rights to use the name and image of
former boxer George Foreman in marketing its products. Salton, which
sells Toastmaster, Maxim, Breadman, Juiceman and other appliances,
said the George Foreman grilles are among its best-selling products.
The deal means Salton will no longer have to pay Foreman and his
partners 60% of the profits from sales of George Foreman products.
Foreman will continue to assist in the company’s marketing efforts.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	36.00
Canfor	16.40	4.25	16.15
Goodfellow	11.80	6.00	10.60
Hudsons Bay	23.85	4.00	18.50
Sears Canada	39.05	15.25	39.05
Taiga Forest	14.75	8.65	13.00
West Fraser	41.00	9.05	31.75

“A man does
not have to be an angel in order to be a saint.”

&emdash; Albert Schweitzer

PEOPLE ON
THE MOVE

Jon Louch
has joined Alliance Mercantile Inc. as Ontario sales manager. He was
formerly with Record Tools. (905-669-9064)

Richard
Mickel Smith has been appointed vice-president responsible for the
consumer products division of Agri-Tel Grain Ltd. He continues in his
duties as CIO … Kareen Duma has been appointed consumer products
co-ordinator responsible for logistics and customer service.
(204-268-1415)

Sam
Mitchell, director of branded and international sales for Waterloo
Industries, Waterloo, Iowa, is new chairman of the Worldwide DIY
Council, a trade association of active exporting manufacturers from
the U.S. and Canada … Tom Delph, retired publisher of Hardware
Age and former executive with Do It Yourself Retailing magazine in
the U.S., has taken over as executive secretary of the Worldwide DIY
Council, succeeding Bob Vereen, who retired after serving since 1981.
Vereen will continue in the council as Director Emeritus.

CORRECTION:
Last week I gave the wrong title for John Alston at Hoover Canada.
He’s the marketing manager. Upon his retirement next month he’ll be
replaced by Les Pulchinski, whose title is sales and marketing
administration manager. (905-335-3311)

Overheard … “We’re going to get some property to protect
ourselves.” &endash; Carl Grittner, president of Revy Home Centres
Inc., on his company’s intention to secure sites in the
Montréal market. He wants four or five Revy stores there
eventually.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

December
13, 1999 – Volume v, #50

Michael McLarney, Editor & Publisher

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

This week in Hardlines:

HOME
DEPOT’S ANNETTE VERSCHUREN: THE EXCLUSIVE MILLENNIUM
INTERVIEW

“Each store
we open is brighter, smarter, more attractive to our customers,”
Verschuren says.

* * * * * *
* *

REVY
CONFIRMS QUÉBEC EXPANSION

“That leaves
us having to go into Québec right away,” says Carl Grittner,
president of Revy.

COMPANIES IN THE NEWS

OSRAM
Sylvania is now on the web at www.sylvania.com. The site includes
information on the company and locations of retailers that sell its
products.

Home Depot
will open four units in Buenos Aires next year, marking the company’s
first move into Argentina.

Salton Inc.
will pay US$137.5 million for the rights to use the name and image of
former boxer George Foreman in marketing its products. Salton, which
sells Toastmaster, Maxim, Breadman, Juiceman and other appliances,
said the George Foreman grilles are among its best-selling products.
The deal means Salton will no longer have to pay Foreman and his
partners 60% of the profits from sales of George Foreman products.
Foreman will continue to assist in the company’s marketing efforts.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	36.00
Canfor	16.40	4.25	16.15
Goodfellow	11.80	6.00	10.60
Hudsons Bay	23.85	4.00	18.50
Sears Canada	39.05	15.25	39.05
Taiga Forest	14.75	8.65	13.00
West Fraser	41.00	9.05	31.75

“A man does
not have to be an angel in order to be a saint.”

&emdash; Albert Schweitzer

PEOPLE ON
THE MOVE

Jon Louch
has joined Alliance Mercantile Inc. as Ontario sales manager. He was
formerly with Record Tools. (905-669-9064)

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

Dec6_99

Hardlines Newsletter

December
6, 1999 – Volume v, #49

Michael McLarney, Editor & Publisher

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

WHO ARE THE TOP PLAYERS IN THE U.S.?

I get asked
this question a lot, so we’ve created this directory. Our new TOP 50
DIRECTORY OF LEADING HOME IMPROVEMENT RETAILERS IN THE U.S. is a
handy, affordable way to check out the action south of the border.
Complete with company name, address, phone and fax, chief executive,
number of stores and annual sales. Just $45 for subscribers. Call or
e-mail
us for more information.

* * * * *
* *

THE NEW
HARDLINES WHO’S WHO

The
Hardlines Who’s Who (1999-2000 Edition) is 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:

REVY REVS
UP ONTARIO EXPANSION IN 2000

Revy Home
& Garden has confirmed its expansion plans for the Ontario market
with the announcement of four new sites. According to Randy Cockrill,
who oversees real estate and new store development for Revy from the
head office in Surrey, B.C., the company has secured a site in the
southwest end of Kitchener, at Highway 7 and Highway 8. (A Home Depot
already exists at Highway 8 above Highway 401.)

Cockrill
says a deal for property has been struck in Oshawa, making it the
first Revy east of Toronto. Two more have been confirmed within the
GTA, one which will likely be open before the end of next
year.

Revy has two
stores in the GTA so far, one in Mississauga at Winston Churchill
Blvd., and another that will open in Vaughan, just north of the city,
later this month. The so-called “stockyards” store and another in
Scarborough, at Warden and Eglinton, as well as the Kitchener
site,will open in 2000. The Oshawa store is scheduled to open in
2001.

ORGANIZERS
OPTIMISTIC ABOUT BSDA SHOW

The fate
of the BSDA of B.C.’s second annual trade show and conference is
still up in the air, but it’s not from any lack of interest on the
part of exhibitors. It already has 80 booths filled, with a waiting
list of suppliers. Entitled “West Coast 2000 &emdash; Gateway to
Prosperity,” the event will be held March 3-4, 2000, at the Delta
Pacific Resort and Conference Centre in Richmond.

The final
go-ahead for the second edition of this event hinges on dealer
pre-registration &emdash; and the goal is 100 by December
9.

“I’m
fairly comfortable that we’ll hit our target,” says John Physick,
general manager of Delroc Industries and chairman of the trade show
and convention committee. The boost, he says, will come from making
it a buying show, with support from suppliers to offer real show
deals, prizes and specials.

COMPANIES IN THE NEWS

Home Depot
Canada has confirmed its initial sites for Québec, all of them
in the Montréal area. The first one will be in Lachanie,
followed by Gatineau. Laval is one of the areas being considered for
a third site. All are expected to open in 2000.

For the
third quarter ended October 31, Hudson’s Bay Co. had sales and
revenues of $1,743.4 million, up 1.6% over the same period last year.
Sales and revenue at the Bay increased by 3.4% to $615.6 million and
at Zellers the by 0.5% to $1,103.1 million. Same-store sales
increased by 4% at the Bay and by 0.9% at Zellers. In the third
quarter the company increased net earnings to $14.8 million, from
$11.2 million. Both the Bay and Zellers increased profitability as a
result of improved merchandising margins. Earnings before interest
and taxes (EBIT) at the Bay increased by 6.6% to $25.7 million from
$24.1 million. At Zellers EBIT increased 7.8% to $27.7 million from
$25.7 million.

Hudson’s Bay
Co. will acquire seven former Eaton’s locations and “additional
considerations.” The company is negotiating with landlords on several
other locations. They are: Pickering and Moncton (to become Bay
stores); Ville d’Anjou and Mississauga (Zellers); one new Home
Outfitters Superstore in Hamilton; three Bay stores relocated and
upgraded in Saskatoon Regina, and Hamilton; and two Bay expansions in
Stoney Creek and Laval. In Saskatchewan, the downtown Bay stores in
both Regina and Saskatoon will be relocated into the former Eaton’s
locations in each of these cities. The two existing stores will be
closed. In the Lime Ridge Mall in Hamilton, Ont., the Bay store is to
be relocated into the larger, former Eaton’s location and a Home
Outfitters Superstore will be introduced into the current Bay Home
store location. New Bay stores will also be opened in the Pickering
Town Centre in Pickering, Ont., and in Highfield Square Shopping
Centre in Moncton, New Brunswick. It is anticipated that all
locations will be open by spring 2000. New Zellers stores will be
opened by spring 2000 in Les Galeries d’Anjou in Ville d’Anjou,
Qué., and in the Erin Mills Town Centre in
Mississauga,Ont.

Barry Hill
Sales Associates has been appointed by Better Living Products of
Canada to represent its lines in Atlantic Canada.

Atlanta-based
Lowe’s Cos. has finalized plans to erect a 1.2 million-sq.ft.
distribution centre on 100 acres in Perris, Calif. The facility,
which will open in 2001, will serve Lowe’s growing network of stores
in the west and Pacific northwest.

Unican
Security Systems Ltd. has acquired 100 % of the shares of Lodging
Technology in Roanoke, Va. The company, which specializes in
infrared, sensor based systems, has annual sales of $2
million.

Canadian
Tire will donate $5 from the sale of its artificial Christmas trees
this season to group of six family shelters across Toronto. Through
CTC’s Foundation for Families organization, contributions will be
made to Redwood Shelter for Abused Women, Covenant House in Toronto,
North York Women’s Shelter, Youth Without Shelter in Etobicoke,
Interim Place 1 in Mississauga and Touchstone Youth Service in East
Toronto.

Inline
Fiberglass America Ltd., a wholly owned subsidiary of Inline
Fiberglass Ltd., has entered into an agreement to acquire Owens
Corning’s patented proprietary fiberglass pultrusion technology and
its fiberglass window manufacturing assets located in Hazleton, Penn.
As part of the agreement, Owens Corning will supply Inline with heavy
density fiberglass insulation, which is an integral part of the
window frame and sash to be manufactured by Inline at the Hazleton
facility.

Wal-Mart
Stores in the U.S. reported net sales for the four-week period ended
November 26 of US$15,023 million, a 24% increase over the US$12,113
million in the similar period a year earlier. Sales for the 43-week
period were US$130,319 million, an increase of 19.5% from the US
$109,026 million in the similar period in the prior year.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.40
Canfor	16.40	4.25	16.40
Goodfellow	11.80	6.00	10.60
Hudsons Bay	23.85	4.00	18.75
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	38.70	15.25	38.70
Taiga Forest	14.75	8.65	13.40
West Fraser	41.00	9.05	29.35

“Talent is
formed in quiet, character in the stream of human life.”

&emdash; Goethe

PEOPLE ON
THE MOVE

Carlyle
Smith has been named chairman of LBM sales for Canada at Mitten Vinyl
Inc.. This responsibility has been added to his current position as
the territory manager for Nova Scotia, Newfoundland and P.E.I. He
reports directly to the president. (902-468-3363) … Ernie
Klinger has been promoted to western regional manager for Canada. His
most recent position was territory manager for Mitten’s branches in
Alberta. He reports directly to the president.
(780-468-5222)

Al Dueck has
joined Inline Fiberglass Ltd. as vice-president marketing . He was
formerly with Willmar Windows. (416-679-1171)

Tim Surbey
has been apppointed western regional manager for Canadian In-Store
Merchandising Ltd. He was formerly with Aikenheads/Home Depot as an
assistant store manager, then with Staples as a store manager.
(800-265-0154)

John Alston
is retiring at the end of January, 2000, as head of Hoover Canada
… Alston’s replacement is Les Pulchinski, who started at Hoover
on November 29. Pulchinski’s retail experience includes store manager
responsibilities and head office responsibilities with Eaton’s.
(905-335-3311)

Noted … A couple of Lansing/Revy buyers have headed down
to New Jersey this weekend to check out Home Depot’s new Villager’s
Hardware stores. Rick McKinnon and Steve Bedford, manager of the
buying department, are reportedly on the trip.

&endash;
Shoplifters are most likely to target CDs, sneakers, earrings and
health and beauty products this Christmas season, according to a U.S.
survey, Retail Theft Trends Report. But shoplifters should think
twice before pilfering from discount stores, as they lead the
nation’s retailers in apprehending shoplifters. The report analyzes
166,000 shoplifting incidents submitted by 101 retail
firms.

The study
was conducted by Loss Prevention Specialists – Prevention Strategies
Group with a funding grant from Sensormatic Electronics.

While a
majority of shoplifters are adults, juveniles continue to represent a
disproportionate percentage of shoplifters as compared to the overall
U.S. population. Teenagers between aged 13-17 represented 25% of all
shoplifters, the largest age group of shoplifters in the study. The
average theft amount per incident was US$60.74, up from US$58.43 in
1997. More males (43%) than females (34%) were reported as
shoplifters.

COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:

Join us to attend the world’s largest hardware show March 12-15,
2000.

Here’s
why:

1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.

2.
“Canada Night” Reception in Cologne&endash; A night of
networking with fellow Canadian retailers and vendors, and a
presentation by key European buyers.

3.
Pre-show seminar &endash; Hardlines and the Canadian office of
the Cologne Trade Fairs will jointly present tips on how to
maximize your presence at the Show.

4.
Hardlines Handbook of the European market &endash; a helpful
guide to European markets.

5.
Store tours &endash; We’ll take you on a tour of the European
big-boxes and independents so you can take home the latest
ideas for merchandising, packaging and store
layout.

6.
Spouses’ program &endash; Join us to discover the sights and
scenes of historic Cologne.

Come to the
Cologne International Hardware Fair/DIY’TEC with HARDLINES, March
12-15, 2000, in Cologne, Germany.

Travel to
the International Hardware Fair in Cologne to position yourself as a
key player in the 21st century. Find out where the growth
opportunities lie, discover how the world’s markets are changing and
learn about the latest new products.

Hardlines
has arranged special travel packages that will make your trip
painless and affordable. Not only will we help you with your travel
arrangements, but we’ll also ensure your trip is beneficial to both
you and your company.

Affordable,
comprehensive travel packages are available in two- and five-star
accommodations. Just email us for more information. Our recommended
Canadian travel agent will contact you to arrange your personalized
travel package.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

December
6, 1999 – Volume v, #49

Michael McLarney, Editor & Publisher

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

WHO ARE THE TOP PLAYERS IN THE U.S.?

* * * * *
* *

THE NEW
HARDLINES WHO’S WHO

This week in Hardlines:

REVY REVS
UP ONTARIO EXPANSION IN 2000

ORGANIZERS
OPTIMISTIC ABOUT BSDA SHOW

The final
go-ahead for the second edition of this event hinges on dealer
pre-registration &emdash; and the goal is 100 by December
9.

COMPANIES IN THE NEWS

Barry Hill
Sales Associates has been appointed by Better Living Products of
Canada to represent its lines in Atlantic Canada.

Unican
Security Systems Ltd. has acquired 100 % of the shares of Lodging
Technology in Roanoke, Va. The company, which specializes in
infrared, sensor based systems, has annual sales of $2
million.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.40
Canfor	16.40	4.25	16.40
Goodfellow	11.80	6.00	10.60
Hudsons Bay	23.85	4.00	18.75
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	38.70	15.25	38.70
Taiga Forest	14.75	8.65	13.40
West Fraser	41.00	9.05	29.35

“Talent is
formed in quiet, character in the stream of human life.”

&emdash; Goethe

PEOPLE ON
THE MOVE

Al Dueck has
joined Inline Fiberglass Ltd. as vice-president marketing . He was
formerly with Willmar Windows. (416-679-1171)

The study
was conducted by Loss Prevention Specialists – Prevention Strategies
Group with a funding grant from Sensormatic Electronics.

COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:

Join us to attend the world’s largest hardware show March 12-15,
2000.

Here’s
why:

1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.

2.
“Canada Night” Reception in Cologne&endash; A night of
networking with fellow Canadian retailers and vendors, and a
presentation by key European buyers.

3.
Pre-show seminar &endash; Hardlines and the Canadian office of
the Cologne Trade Fairs will jointly present tips on how to
maximize your presence at the Show.

4.
Hardlines Handbook of the European market &endash; a helpful
guide to European markets.

5.
Store tours &endash; We’ll take you on a tour of the European
big-boxes and independents so you can take home the latest
ideas for merchandising, packaging and store
layout.

6.
Spouses’ program &endash; Join us to discover the sights and
scenes of historic Cologne.

Come to the
Cologne International Hardware Fair/DIY’TEC with HARDLINES, March
12-15, 2000, in Cologne, Germany.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

Nov22_99

Hardlines Newsletter

November
22, 1999 – Volume v, #47

Michael McLarney, Editor & Publisher

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

CHS SHOW BREAKFAST & NEWSMAKER OF THE YEAR: NEXT YEAR WILL MARK
THE FIFTH ANNIVERSARY OF CANADA’S ONE AND ONLY NEWSLETTER FOR THE
HOME IMPROVEMENT INDUSTRY.

Be sure and
join us at the Hardlines Show Breakfast at the Canadian Hardware and
Building Materials Show on February 6, 2000, 7:30-9 a.m. There we’ll
award the Newsmaker of the Year and kick off the show with a rock n’
roll twist. Remember, this event is for Hardlines subscribers and
guests only, so don’t miss it!

– Michael

Sponsors
who are helping make our Birthday Breakfast a success:

Sterling Commerce,

Intactix,

Dimensions Retail Systems,

Hamilton Discount,

The Canadian Hardware and Building Materials Show and Hardware
Merchandising.

* * * * *
* *

WHO ARE
THE TOP PLAYERS IN THE U.S.?

I get asked this question a lot, so we’ve created this directory.
Our brand new TOP 50 DIRECTORY OF LEADING HOME IMPROVEMENT RETAILERS
IN THE U.S. is a handy, affordable way to check out the action south
of the border. Complete with company name, address, phone and fax,
chief executive, number of stores and annual sales. Just $45 for
subscribers. Call or e-mail
us for more information.

This week in Hardlines:

HOME
DEPOT’S CONTRACTOR CATALOGUE WILL LAUNCH IN FEBRUARY

After
test-driving the program in the U.S. for several months, Home Depot
will launch Maintenance Warehouse here in Canada in February. The
catalogue business serves the building and facilities management
market with maintenance, repair and operations products.

The new
division is an extension of Home Depot’s Maintenance Warehouse
operation in the U.S., where it offers more than 12,000 products.
John Scinocca, formerly hardware buyer for eastern Canada, has been
put in charge of Maintenance Warehouse here. A sales team is also
being put in place.

The new
venture will let commercial customers place orders through a
toll-free line and have their orders delivered the next day from a
warehouse to be located in the GTA.

While
Maintenance Warehouse was a recognized brand in the U.S. when Home
Depot took it over, it is virtually unkown here. Therefore, a new
name will be chosen for it, one that is expected to feature the Home
Depot name prominently.

* * * * *
* *

REPLACEMENT
NAMED FOR AWARD FOUNDER

Eighteen
years after founding AWARD, John MacDougall, the Atlantic buying
group’s president, is preparing to step down. His replacement is T.P.
(Tom) Smith, vice-president of food merchandising and distribution
for Co-op Atlantic. Smith, currently based in Moncton, will move to
Halifax to take over at AWARD in late November.

MacDougall
will accompany him to the annual Matreco negotiations (of which AWARD
is a member) in December in Toronto, winding up his involvement in
the group by year’s end.

MacDougall
started AWARD in 1981 when he was appproached by four local dealers
to help them develop a co-op buying format. The group now has 68
shareholders with 97 stores and 1998 retail sales of $280 million.

COMPANIES IN THE NEWS

In its third
quarter ended September 30, RONA Inc. had sales of $257.1 million, an
increase of 16.1% from $221.5 million in the third quarter of 1998.
Net earnings were $3.9 million, up 23.6% over 1998, when net earnings
were $3.1 million. For the first three quarters of the current fiscal
year, sales totalled $762.1 million, compared with $639.5 million for
the same period in 1998, a 19.2% increase. Net earnings increased
14.7% to reach $12.0 million, from $10.4 million during the same
period in 1998.

Canadian
Tire has opened three new-format stores in Edmonton: a 48,000-sq.ft.
store on Calgary Trail South, a 44,000-sq.ft. store at the Kingsway
and a 45,000-sq.ft. store in Mill Woods. Edmonton now has seven
stores. CTC embarked on a $1 billion expansion plan in 1993, which
will eventually convert up to 350 stores to the new format. By the
end of the year, more than 180 stores will have been
converted.

Creditors
and shareholders of The T. Eaton Co. Ltd. have agreed to a plan that
will enable Eaton’s to continue as a going concern with Sears Canada
Inc. becoming its sole shareholder. Through this structure the
Sears-held Eaton’s will be the owner of 16 current Eaton’s store
locations and other assets, including the Eaton’s name. Toronto’s
downtown Eaton Centre location is among the stores that will continue
to keep the Eaton’s name:

Brentwood
Mall, Burnaby, B.C.

St-Vitale Centre, Winnipeg, Manitoba

Galleries La Capitale, Quebec City, Québec

Westmount Shopping Centre, London, Ontario

Sherway Gardens, Toronto, Ontario

Yorkdale S.C., Toronto, Ontario

Halifax S.C., Halifax, Nova Scotia

Scarborough Town Centre, Toronto, Ontario

Eaton Centre, Victoria, B.C.

Pacific Centre, Vancouver, B.C.

Polo Park, Winnipeg, Manitoba

Eaton Centre, Toronto, Ontario

Southcentre Mall, Calgary, Alberta

Orchard Park Shopping Centre, Kelowna, B.C.

Rideau Centre, Ottawa, Ontario

Calgary Eaton Centre, Calgary, Alberta.

All other
assets of Eaton’s will be transferred to a newly incorporated company
which will be liquidated by the current Monitor under the Companies’
Creditors Arrangement Act. All of the liabilities of Eaton’s other
than those which are designated to remain with Eaton’s will be
compromised under the plan and the compromised liabilities will be
assumed by the new company.

Last Friday,
Sears Canada opened its first Sears Furniture and Appliance store in
Atlantic Canada. Located at the Bayers Lake Power Centre in Halifax,
the 43,000-sq.ft. store is part of a multi-million dollar national
plan to take furniture out of Sears department stores and build
free-standing furniture and accessories stores. The company plans to
have 25 furniture and appliance stores open by the end of
1999.

TruServ
Corp. in Chicago is giving its $50 million advertising account to
Marc USA, which had previously shared the business with Chicago’s Leo
Burnett. The award makes Marc responsible for all of the hardware
cooperative’s advertising needs as it moves to combine the True
Value, ServiStar and Coast to Coast names under the True Value
brand.

The Home
Depot has announced a three-for-two stock split, payable December 30,
1999. The stock split will be the Depot’s 13th since the company went
public in 1981.

The 326 lb.
seven-foot former WWF Champion “Kane” made a special appearance last
Friday at the Sears in Fairview Mall, North York, Ont. (Damn, I
missed this one! – M.M.)

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.45
Canfor	14.85	4.25	14.85
Goodfellow	11.80	6.00	11.10
Hudsons Bay	23.85	4.00	16.60
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	37.10	15.25	37.00
Taiga Forest	14.75	8.65	13.15
West Fraser	41.00	9.05	30.25

“The
function of culture is to teach you new ways of dealing with the
world.”

– Brian Eno (British musician)

PEOPLE ON
THE MOVE

John
Kitchen, president of Lansing Buildall and vice-president of Revy
Ontario Division, has been chosen as this year’s Industry Achievement
Award winner by the Lumber & Building Materials Association of
Ontario. John’s father, Bill Kitchen, was the first award winner 11
years ago. The award will be presented at the LBMAO’s Annual Gala
Dinner on February 7, 2000, at the Toronto Marriot Eaton Centre
Hotel.

Steve
Bedford has assumed the role of manager of the buying department of
the Revy Ontario Division. He was formerly category manager for
hardware, hand and power tools. Bedford takes over from John Kitchen,
who had been dividing his duties as buying director and president of
Lansing Buildall and vice-president of Revy Ontario. Bedford remains
in charge of some buying duties, reporting directly to Kitchen …
Dean Andrey takes over Bedford’s duties as category manager of Revy
Ontario for seasonal products. (416-241-8844)

Rick Wysocki
has been appointed regional manager of the Ontario division of All
Weather Windows. He was most recently national product manager at
Beaver Lumber. His appointment, along with the construction of a new
branch in Newmarket, is part of the company’s plan to enter the
Ontario market in 2000. (905-954-1742)

OVERHEARD

“Our
experience with Maintenance Warehouse has demonstrated that this is a
great business to be in. This new division of our company provides us
the opportunity to increase our penetration of commercial accounts,
including our professional customer base, a marketplace that has
excellent growth potential in Canada.”

– Annette
Verschuren, president of Home Depot Canada, on the announced launch
of its catalogue direct mail business in Canada.

MARKET INDICATORS

Retail
spending was up 0.4% in September from August, according to Stats
Canada. This follows a 1.3% gain in August. Holding prices constant,
retail sales remained essentially unchanged in September
(&endash;0.1%). Retail sales in the third quarter were up 3.1% over
the second quarter.

COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:

Join us to attend the world’s largest hardware show March 12-15,
2000.

Here’s
why:

1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.

2.
“Canada Night” Reception in Cologne&endash; A night of
networking with fellow Canadian retailers and vendors, and a
presentation by key European buyers.

3.
Pre-show seminar &endash; Hardlines and the Canadian office of
the Cologne Trade Fairs will jointly present tips on how to
maximize your presence at the Show.

4.
Hardlines Handbook of the European market &endash; a helpful
guide to European markets.

5.
Store tours &endash; We’ll take you on a tour of the European
big-boxes and independents so you can take home the latest
ideas for merchandising, packaging and store
layout.

6.
Spouses’ program &endash; Join us to discover the sights and
scenes of historic Cologne.

Come to the
Cologne International Hardware Fair/DIY’TEC with HARDLINES, March
12-15, 2000, in Cologne, Germany.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

November
22, 1999 – Volume v, #47

Michael McLarney, Editor & Publisher

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

CHS SHOW BREAKFAST & NEWSMAKER OF THE YEAR: NEXT YEAR WILL MARK
THE FIFTH ANNIVERSARY OF CANADA’S ONE AND ONLY NEWSLETTER FOR THE
HOME IMPROVEMENT INDUSTRY.

* * * * *
* *

This week in Hardlines:

HOME
DEPOT’S CONTRACTOR CATALOGUE WILL LAUNCH IN FEBRUARY

The new
venture will let commercial customers place orders through a
toll-free line and have their orders delivered the next day from a
warehouse to be located in the GTA.

* * * * *
* *

REPLACEMENT
NAMED FOR AWARD FOUNDER

MacDougall
will accompany him to the annual Matreco negotiations (of which AWARD
is a member) in December in Toronto, winding up his involvement in
the group by year’s end.

COMPANIES IN THE NEWS

The Home
Depot has announced a three-for-two stock split, payable December 30,
1999. The stock split will be the Depot’s 13th since the company went
public in 1981.

The 326 lb.
seven-foot former WWF Champion “Kane” made a special appearance last
Friday at the Sears in Fairview Mall, North York, Ont. (Damn, I
missed this one! – M.M.)

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.45
Canfor	14.85	4.25	14.85
Goodfellow	11.80	6.00	11.10
Hudsons Bay	23.85	4.00	16.60
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	37.10	15.25	37.00
Taiga Forest	14.75	8.65	13.15
West Fraser	41.00	9.05	30.25

“The
function of culture is to teach you new ways of dealing with the
world.”

– Brian Eno (British musician)

PEOPLE ON
THE MOVE

OVERHEARD

– Annette
Verschuren, president of Home Depot Canada, on the announced launch
of its catalogue direct mail business in Canada.

MARKET INDICATORS

COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:

Join us to attend the world’s largest hardware show March 12-15,
2000.

Here’s
why:

1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.

2.
“Canada Night” Reception in Cologne&endash; A night of
networking with fellow Canadian retailers and vendors, and a
presentation by key European buyers.

3.
Pre-show seminar &endash; Hardlines and the Canadian office of
the Cologne Trade Fairs will jointly present tips on how to
maximize your presence at the Show.

4.
Hardlines Handbook of the European market &endash; a helpful
guide to European markets.

5.
Store tours &endash; We’ll take you on a tour of the European
big-boxes and independents so you can take home the latest
ideas for merchandising, packaging and store
layout.

6.
Spouses’ program &endash; Join us to discover the sights and
scenes of historic Cologne.

Come to the
Cologne International Hardware Fair/DIY’TEC with HARDLINES, March
12-15, 2000, in Cologne, Germany.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

Nov15_99

Hardlines Newsletter

November
15, 1999 – Volume v, #46

Michael McLarney, Editor & Publisher

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

NEWSMAKER OF THE YEAR AWARD: Next year will mark the fifth
anniversary of Canada’s one and only newsletter for the home
improvement industry. Be sure and join us at the Hardlines Show
Breakfast at the Canadian Hardware and Building Materials Show on
February 6, 2000. There we’ll award the Newsmaker of the Year
&endash; and kick off the show with a rock n’ roll twist. Remember,
this event is for Hardlines subscribers and guests only &endash; so
don’t miss it! – Michael

* * * * *
* *

WHO ARE
THE TOP PLAYERS IN THE U.S.?

I get asked
this question a lot, so now there’s a handy directory with the
answers you need. Our brand new TOP 50 Directory of leading home
improvement retailers in the U.S. is a handy, affordable way to
check out the action south of the border. It’s not as comprehensive
as our blockbuster Who’s Who Directory of Canadian Retailers, so
we’ve priced it accordingly &endash; just $45 for subscribers. Call
or e-mail
us for more information.

This week in Hardlines:

LBM
EXHIBITORS GET ON BOARD CHS FOR 2000

The next
edition of the Canadian Hardware and Building Materials Show,
February 6-8, 2000, is the first to encorporate the LBMAO’s own show
and convention. The Canadian Home Centre Show was folded in favour of
joining forces with the CRHA’s own hardware show.

CHS has
already identified more than 50 new exhibitors who formerly exhibited
at the LBMAO show. Many other LBM companies that had previously
exhibited in both shows will return to CHS in 2000.

The LBMAO
will host an industry “Icebreaker” reception on Saturday night,
February 5. The Industry Gala, mounted by the CHHMA to benefit the
Easter Seals Society of Canada, will be held on Sunday night,
February 6. Monday’s Awards Night honours the industry’s outstanding
products and the LBMAO Annual Gala Dinner takes place later that same
night.

And of
course, Sunday morning the show kicks off with the fifth Annual
Hardlines Show Breakfast (see shameless promotion elsewhere in this
issue).

More than
20,000 delegates are expected to register as CHS celebrates its 95th
anniversary in Y2K. For more information, call 905-821-3470; fax:
905-821-8946; e-mail: crha@crha.com, or click here: www.crha.com

* * * * *
* *

RESULTS
POISE SODISCO-HOWDEN FOR FUTURE ACQUISITION

Sodisco-Howden
Group’s third quarter sales results showed a 20% increase over 3Q
1998 and a year-to-date sales increase of 15.1% to $319.1 million.
This turnaround of the hardware wholesaler’s fortunes marks its
eleventh consecutive quarter of improved earnings &endash; and
“positions the company for a possible future acquisition,” says
Sodisco-Howden president and CEO Tony Molluso.

Buoyed by 3Q
earnings of $3.6 million on sales of $113.7 million, versus $2.7
million on sales of $94.8 million a year earlier, Molluso repeated
his desire to consider growing the company by acquisition. (For the
nine-month period, net earnings grew 155% from $2.0 million to $5.1
million.) Molluso had previously announced (Hardlines, Oct. 25/99)
that two companies were under consideration for possible acquisition,
one of which he expected to close by year’s end.

COMPANIES IN THE NEWS

The Ontario
Municipal Board has rejected Home Depot Canada’s proposal to erect a
store at Cherry Street and Lakeshore Boulevard in downtown Toronto’s
waterfront area. According to an article in the Globe & Mail on
Friday, the proposal met with opposition from downtown businesses,
politicians and associations. Large retail development does not fit
in with the OMB’s plans for redeveloping the waterfront. The area may
also be developed as part of a proposal for Toronto to bid for the
Olympics in 2008.

UFA Farm
Supply Co-op has reached an agreement with Ace Hardware Canada to
have Ace supply some hardware to two of its 34 corporately owned
stores in Alberta on a test basis. The stores, in High River and
Claresholm, will increase their hardware offerings with new programs
from Ace. Product lines are now being finalized, with plumbing,
electrical and hardware under consideration.

Amazon.com
Inc. is broadening its product selection online to include home
improvement products, as well as computer software and video games.
The launch was timed to the Christmas season, steered by Amazon
president Joe Galli, former president of Black & Decker. Products
will include hardware, hand and power tools &endash; and even
benchtop tools &endash; and all will have a US$4.95 shipping charge.
Amazon recently bought a North Dakota-based catalogue company, Tool
Crib, to facilitate its expansion into home improvement. Although
reportedly being the most visited site on the Internet, Amazon has
yet to make a profit after four years. (It lost US$197 million in the
third quarter.)

Last week,
RONA opened its latest Le Rénovateur Régional, this one
in St-Hyacinthe, Qué. The 90,000-sq.ft. store carries 40,000
SKUs. The dealer-owners are André Gagnon and Jean-Guy
Hébert (who was also named RONA’s retailer of the year). Both
are also co-owners of the Rénovateur Régional in
Granby, which opened September 15.

Five
Wal-Mart stores opened last Friday: Leamington, Owen Sound and
Pembroke, Ont.; Langley, B.C.; and Saint John, N.B.

Home Depot
in the U.S. now sells gift certificates online. Called Home Depot
Gift Cards, they can be purchased in amounts of $10, $25, $50 or
$100, redeemable only at Home Depot stores in the U.S.

Corning
Consumer Products Corp. (CCPC) Holding Co. Inc. has completed the
acquisition of General Housewares Corp., following approval by
General’s shareholders to accept US$28.75 per share in cash.
General’s key brands include Chicago Cutlery and Olfa. Annual sales
in 1998 were U.S.$97 million.

Nu-Gro Corp.
has broken off negotiations to purchase Consolidated Envirowaste
Industries Inc. Nu-Gro will seek alternative ways to expand its soil
operations in Western Canada.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.30
Canfor	13.30	4.25	14.80
Goodfellow	11.80	6.00	11.10
Hudsons Bay	23.85	4.00	17.20
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	34.35	15.25	37.10
Taiga Forest	14.75	8.65	13.50
West Fraser	41.00	9.05	33.00

“There is no
fear in love; but perfect love casteth out fear.”

– John iv: 18

PEOPLE ON
THE MOVE

Pierre
Langevin has joined In-Store Services Canada Inc. as director of
business development. Langevin has spent 30 years in the industry and
will now work with In-Store Services to meet the growing demand for
merchandising services. One of his initial responsibilities will be
to establish the company’s presence in Québec.
(905-507-3119)

MARKET INDICATORS

Housing
starts in Canada slipped 2.2% in October to 147,500 units, down from
150,800 units seasonally adjusted in September, according to CMHC.
Urban multiple starts rose 0.7% to 54,700, while urban singles
decreased 5.1% to 72,100 units.

* * * * * *
*

The new
housing price index increased 1.2% in September over the same month a
year earlier. This was the highest annual increase since December
1997, says Stats Canada. This index of contractors’ selling prices
for new houses rose 0.2% from August to September.

Calgary had
the highest annual increase (+4.3%), while significant increases also
occurred in Halifax (+3.9%) and Ottawa-Hull (+3.6%). Vancouver and
Victoria had the greatest decreases (-3.3% and &endash;4.6%
respectively). St. John’s increased 1.1%, Montréal was up
2.7%, Toronto up 1.7%, Winnipeg up 3.0% and Edmonton up 2.3% over
September 1998.

“As of
today, more than $50 million worth of forest products have been
sidelined or diverted to other ports at great cost to industry. As
this lock out drags on, sales will be lost and valued customers will
be snapped up by competing jurisdictions. Even the ability to
maintain operations at our mills will soon be in jeopardy.” &endash;
from a letter to Prime Minister Jean Chrétien from the Council
of Forest Industries, urging the PM to legislate the re-opening of
the Port of Vancouver’s and other B.C. ports. Labour Minister
Claudette Bradshaw later imposed a Sunday deadline for both sides to
reach a collective agreement.

“It’s the
merchandising support that they’re bringing to the table that is
really the coup for them.” &endash; Barry Hofstetter, senior buyer
for UFA, on the recent supply agreement it has signed with Ace
Hardware Canada.

COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:

Join us to attend the world’s largest hardware show March 12-15,
2000.

Here’s
why:

1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.

2.
“Canada Night” Reception in Cologne&endash; A night of
networking with fellow Canadian retailers and vendors, and a
presentation by key European buyers.

3.
Pre-show seminar &endash; Hardlines and the Canadian office of
the Cologne Trade Fairs will jointly present tips on how to
maximize your presence at the Show.

4.
Hardlines Handbook of the European market &endash; a helpful
guide to European markets.

5.
Store tours &endash; We’ll take you on a tour of the European
big-boxes and independents so you can take home the latest
ideas for merchandising, packaging and store
layout.

6.
Spouses’ program &endash; Join us to discover the sights and
scenes of historic Cologne.

Come to the
Cologne International Hardware Fair/DIY’TEC with HARDLINES, March
12-15, 2000, in Cologne, Germany.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

November
15, 1999 – Volume v, #46

Michael McLarney, Editor & Publisher

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

* * * * *
* *

WHO ARE
THE TOP PLAYERS IN THE U.S.?

This week in Hardlines:

LBM
EXHIBITORS GET ON BOARD CHS FOR 2000

CHS has
already identified more than 50 new exhibitors who formerly exhibited
at the LBMAO show. Many other LBM companies that had previously
exhibited in both shows will return to CHS in 2000.

And of
course, Sunday morning the show kicks off with the fifth Annual
Hardlines Show Breakfast (see shameless promotion elsewhere in this
issue).

* * * * *
* *

RESULTS
POISE SODISCO-HOWDEN FOR FUTURE ACQUISITION

COMPANIES IN THE NEWS

Five
Wal-Mart stores opened last Friday: Leamington, Owen Sound and
Pembroke, Ont.; Langley, B.C.; and Saint John, N.B.

Home Depot
in the U.S. now sells gift certificates online. Called Home Depot
Gift Cards, they can be purchased in amounts of $10, $25, $50 or
$100, redeemable only at Home Depot stores in the U.S.

Nu-Gro Corp.
has broken off negotiations to purchase Consolidated Envirowaste
Industries Inc. Nu-Gro will seek alternative ways to expand its soil
operations in Western Canada.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.30
Canfor	13.30	4.25	14.80
Goodfellow	11.80	6.00	11.10
Hudsons Bay	23.85	4.00	17.20
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	34.35	15.25	37.10
Taiga Forest	14.75	8.65	13.50
West Fraser	41.00	9.05	33.00

“There is no
fear in love; but perfect love casteth out fear.”

– John iv: 18

PEOPLE ON
THE MOVE

MARKET INDICATORS

* * * * * *
*

COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:

Join us to attend the world’s largest hardware show March 12-15,
2000.

Here’s
why:

1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.

2.
“Canada Night” Reception in Cologne&endash; A night of
networking with fellow Canadian retailers and vendors, and a
presentation by key European buyers.

3.
Pre-show seminar &endash; Hardlines and the Canadian office of
the Cologne Trade Fairs will jointly present tips on how to
maximize your presence at the Show.

4.
Hardlines Handbook of the European market &endash; a helpful
guide to European markets.

5.
Store tours &endash; We’ll take you on a tour of the European
big-boxes and independents so you can take home the latest
ideas for merchandising, packaging and store
layout.

6.
Spouses’ program &endash; Join us to discover the sights and
scenes of historic Cologne.

Come to the
Cologne International Hardware Fair/DIY’TEC with HARDLINES, March
12-15, 2000, in Cologne, Germany.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

Nov8_99

Hardlines Newsletter

November
8, 1999 – Volume v, #45

Michael McLarney, Editor & Publisher

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

ANNIVERSARY BASH: Okay, it’s official. Y2K will mark the fifth
anniversary of Canada’s one and only newsletter for the home
improvement industry. So we’re having a birthday party. Join us at
the Hardlines Show Breakfast to kick off the Canadian Hardware Show
on February 6, 2000. I guarantee you’ll have a blast! &endash;
Michael.

* * * * *
* *

Thinking of
attending the world’s biggest Hardware/home improvement show? Call or
e-mail me for details of our trip to Cologne, Germany, March 12-15,
2000.

* * * * *
* *

REMEMBER
– THE HARDLINES WHO’S WHO DIRECTORY OF CANADIAN RETAILERS, BUYING
GROUPS, MASS MERCHANTS AND WHOLESALERS IS NOW AVAILABLE!

This week in Hardlines:

BEAVER
DEAL FINALLY CLOSES WITH HOME

The proposed
takeover of Beaver Lumber Co. Ltd. by Home Hardware got government
approval last week, enabling the deal to close officially on November
4, a month later than originally anticipated. Beaver will operate as
a separate business unit of Home, with Eric Konecsni, Beaver’s new
vice-president and general manager, reporting directly to Home’s
vice-president and CEO, Paul Straus.

Konecsni
says the Beaver name will remain, based on the brand equity of the
93-year-old company. Beaver stores and Home building centres share
markets in about 25 communities.

In the
process, Beaver’s name has changed to Beaver Lumber Inc. What won’t
change is Beaver’s buying deal with Ace Hardware Canada, which Home
will honour until the deal ends in June 2001. Konecsni admits,
however, that the arrangement may be terminated earlier “if
advantageous to both sides.” Ace’s vice-president international
business, Paul Ingevaldson, has said the same thing.

The
challenge facing Beaver is to help its dealers, which own 50% of
their businesses, to take over the remaining portion, to conform to
Home’s model of dealer ownership. The acquisition adds Beaver’s 138
joint-venture dealers, with sales of $684 million in 1998, to its own
$2.1 billion network of 960 hardware and building centres. Home paid
a total of $68 million, $33 million in cash and the balance in debt
through a term loan extended by Molson.

* * * * *
* *

RONA
WANTS 250 STORES IN ONTARIO

At its
latest dealer market, held last week in Montréal, RONA inc.
announced plans to become a truly national player with 500 stores
outside of Québec and 15% of the Canadian hardware and home
improvement market by 2002.

That means
250 outlets in Ontario alone, including 12 warehouse stores and 15
regionals, for total sales of $1 billion there. Growth will come
through investment by new and existing dealers, the establishment of
corporate stores – and, says RONA chairman Henri Drouin – through a
forthcoming acquisition.

RONA claims
to have 32% of the Québec market already, with $1.4 billion in
sales there. Plans for two more big boxes, seven additional regional
centres, and another 100 smaller stores will give the company 500
outlets and $1.7 billion in retail sales in that province.

* * * * *
* *

RESTORATION
HARDWARE HITS TORONTO MARKET

Restoration
Hardware has opened its second store in Canada, and the first in
Toronto. The 7,500-sq.ft.store has been open for two weeks at Bayview
Village, a small upscale mall in North York. The high-end, housewares
and and lifestyle store originated in Eureka, Calif., in 1979 and now
has 86 locations. Sales in 1998 were US$209 million.

A second
Toronto location, weighing in at 9,000 sq.ft., will open November 25
at Yonge and Eglinton. It will be Restoration’s 93rd store. A
spokesperson for the company says there is no “master plan” for
Canada, but adds Calgary is under consideration as a future
site.

COMPANIES IN THE NEWS

Réno-Dépôt
Inc. has opened Ontario offices at 3780 14th Avenue, Suite 314,
Markham, Ont. L3R 9Y5; telephone: 905-479-2500. The company will
announce some additions to the team there today, including a new
director of real estate for Ontario. Later in the month, the new name
Réno-Dépôt will operate under outside
Québec, as well as initial sites in the GTA, will be
announced. None have been confirmed as yet.

Revy Home
& Garden has secured its next Toronto location, a property on
Comstock, south of Eglinton at Warden Avenue in Scarborough. It will
open next year as part of a retail development that includes Wal-Mart
and Canadian Tire.

RONA Inc.
has launched the RONA Holiday Gift e-Boutique at www.rona.ca.
A selection of 275 items is available to consumers as a trial for a
bigger launch next Spring. Shoppers can choose to have their order
delivered to their home, to the gift recipient or to the nearest RONA
store for pick-up. Depending on the order, gifts will be delivered
within 48-72 hours anywhere in Ontario, Québec, New Brunswick,
Nova Scotia or Newfoundland.

Sears Canada
will open a Sears Furniture and Appliance store on St. James Street
in Winnipeg early next year. Winnipeg is the first city in the
province to get one of the free-standing outlets. Also: Humboldt,
Sask., was the scene of the opening of the 100th Sears Dealer store
last Thursday. The first one opened in Pembroke, Ont., in August
1994.

For the
three months ended September 30, Unican Security Systems Ltd. had
sales $110.7 million, compared with $106.2 million for the same
period last year, a 4.2 % increase. Net earnings increased 12.9 % to
$7.0 million.

Sears Canada
has launched a Christmas promotion called “Shop, Wish and Win!”, a
giveaway of 25,000 prizes worth more than $2 million. The contest
gives shoppers a chance to win a prize every time they make a
purchase through any of Sears shopping channels, including department
stores, Sears catalogue and www.sears.ca.

Newell
Rubbermaid Inc. has acquired the consumer products division of
McKechnie plc. Companies acquired include Harrison Drape, a
manufacturer and marketer of drapery hardware and window furnishings,
Spur Shelving, a manufacturer and marketer of shelving and storage
products, Douglas Kane, a manufacturer and marketer of cabinet
hardware, and Nenplas/Homelux, a manufacturer and marketer of
functional trims. Combined estimated 1998 revenues for the companies
were approximately 95 million pounds sterling.

New Jersey
plumbing contractors have temporarily stopped Home Depot from
installing water heaters in the state. The New Jersey State League of
Master Plumbers filed multiple complaints against Home Depot for
using unlicensed plumbers to do the work. State law also requires the
company offering the installation to be partly owned by a licensed
plumber, a requirement, says the league, which Home Depot does not
fulfil.

Owens
Corning plans to invest US$27 million in Chester County to build a
200,000-sq.ft. Cultured Stone manufacturing facility in Chester
County, S.C. The facility is intended to complement existing regional
locations in California and Ohio. Productions is expected to begin
during the third quarter of 2000.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	33.10
Canfor	13.30	4.25	13.95
Goodfellow	11.80	6.00	11.10
Hudsons Bay	23.85	4.00	18.50
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	34.35	15.25	35.00
Taiga Forest	14.75	8.65	14.00
West Fraser	41.00	9.05	32.00

“I’d rather
have a bottle in front of me than a frontal lobotomy.”

– Tom Waits

PEOPLE ON
THE MOVEHome improvement retailer Cluny Sheppard, president of
Notre Dame Agencies in Lewisporte, Nfld., has been recognized as one
of Atlantic Canada’s top 100 businesspeople for 1998-’99. In a list
published in a recent issue of Atlantic Progress magazine that
included all business disciplines, Sheppard earned the number 70
position. His company, which includes seven Castle dealerships and
three furniture stores in Newfoundland, has more than $21 million in
retail sales. (709-535-8691)

Steve Kornai
has joined the Innovak group of companies as industrial account
manager. He ws formerly with Richard-Duskes, division of Westburne
Inc. (514-695-7221, ext. 366)

COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:

Join us to attend the world’s largest hardware show March 12-15,
2000.

Here’s
why:

1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.

2.
“Canada Night” Reception in Cologne&endash; A night of
networking with fellow Canadian retailers and vendors, and a
presentation by key European buyers.

3.
Pre-show seminar &endash; Hardlines and the Canadian office of
the Cologne Trade Fairs will jointly present tips on how to
maximize your presence at the Show.

4.
Hardlines Handbook of the European market &endash; a helpful
guide to European markets.

5.
Store tours &endash; We’ll take you on a tour of the European
big-boxes and independents so you can take home the latest
ideas for merchandising, packaging and store
layout.

6.
Spouses’ program &endash; Join us to discover the sights and
scenes of historic Cologne.

Come to the
Cologne International Hardware Fair/DIY’TEC with HARDLINES, March
12-15, 2000, in Cologne, Germany.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

November
8, 1999 – Volume v, #45

Michael McLarney, Editor & Publisher

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

* * * * *
* *

Thinking of
attending the world’s biggest Hardware/home improvement show? Call or
e-mail me for details of our trip to Cologne, Germany, March 12-15,
2000.

* * * * *
* *

REMEMBER
– THE HARDLINES WHO’S WHO DIRECTORY OF CANADIAN RETAILERS, BUYING
GROUPS, MASS MERCHANTS AND WHOLESALERS IS NOW AVAILABLE!

This week in Hardlines:

BEAVER
DEAL FINALLY CLOSES WITH HOME

Konecsni
says the Beaver name will remain, based on the brand equity of the
93-year-old company. Beaver stores and Home building centres share
markets in about 25 communities.

* * * * *
* *

RONA
WANTS 250 STORES IN ONTARIO

* * * * *
* *

RESTORATION
HARDWARE HITS TORONTO MARKET

COMPANIES IN THE NEWS

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	33.10
Canfor	13.30	4.25	13.95
Goodfellow	11.80	6.00	11.10
Hudsons Bay	23.85	4.00	18.50
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	34.35	15.25	35.00
Taiga Forest	14.75	8.65	14.00
West Fraser	41.00	9.05	32.00

“I’d rather
have a bottle in front of me than a frontal lobotomy.”

– Tom Waits

Steve Kornai
has joined the Innovak group of companies as industrial account
manager. He ws formerly with Richard-Duskes, division of Westburne
Inc. (514-695-7221, ext. 366)

COME TO THE COLOGNE HARDWARE FAIR WITH HARDLINES:

Join us to attend the world’s largest hardware show March 12-15,
2000.

Here’s
why:

1.
Escorted travel from Toronto to Cologne via Frankfurt -let us
help you make your voyage worry-free by taking care of the
details.

2.
“Canada Night” Reception in Cologne&endash; A night of
networking with fellow Canadian retailers and vendors, and a
presentation by key European buyers.

3.
Pre-show seminar &endash; Hardlines and the Canadian office of
the Cologne Trade Fairs will jointly present tips on how to
maximize your presence at the Show.

4.
Hardlines Handbook of the European market &endash; a helpful
guide to European markets.

5.
Store tours &endash; We’ll take you on a tour of the European
big-boxes and independents so you can take home the latest
ideas for merchandising, packaging and store
layout.

6.
Spouses’ program &endash; Join us to discover the sights and
scenes of historic Cologne.

Come to the
Cologne International Hardware Fair/DIY’TEC with HARDLINES, March
12-15, 2000, in Cologne, Germany.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

Oct31_99

Hardlines Newsletter

October
31, 1999 – Volume v, #44

Michael McLarney, Editor & Publisher

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

HARDLINES
NEWSFLASH: BEAVER – HOME DEAL CLOSES

November
5, 1999

REMEMBER
&endash; THE HARDLINES WHO’S WHO DIRECTORY OF CANADIAN RETAILERS,
BUYING GROUPS, MASS MERCHANTS AND WHOLESALERS IS NOW
AVAILABLE!

* * * * * *
*

The purchase
of Beaver Lumber by Home Hardware Stores Ltd. was given government
approval and the deal is now finalized. As previously reported in
Hardlines, Eric Konecsni is in charge of Beaver, reporting directly
to Home’s vice-president and CEO, Paul Straus… I was at the RONA
Show in Montreal on Monday, as well. This company has VERY aggressive
expansion plans, including 250 stores in Ontario by 2002. Find out
more about both these stories in this weekend’s edition of Hardlines
the electronic newsletter.

Cheers,

Michael

* * * * *
* *

REMEMBER
– THE HARDLINES WHO’S WHO DIRECTORY OF CANADIAN RETAILERS, BUYING
GROUPS, MASS MERCHANTS AND WHOLESALERS IS NOW AVAILABLE!

This week in Hardlines:

ACE
REAFFIRMS CANADIAN COMMITMENT WITH FIRST SHOW

“Discover
Ace” was the theme of Ace Hardware Canada’s first dealer show, held
October 24 in Toronto. The show, which attracted over 900 people,
many of them Homecare and AWARD dealers,was a chance for Ace to
introduce four new merchandising departments to its dealers. The
categories, paint, electrical, plumbing and hand and power tools,
were developed by Ace in the U.S. and were featured here in a turnkey
merchandising environment.

The show was
also an opportunity for Ace to try and dispel rumours of its future
in this country since its largest customer has been bought by its
largest competitor. “Ace is here to stay,” said Paul Ingevaldson,
vice-president, corporate strategy and international business, for
Ace in the U.S.

With the
pending sale of Beaver Lumber to Home Hardware Stores, Ace will lose
an estimated $100 million in sales, still well over half its business
here. Ace’s agreement ends June 2000. But Ace never counted on the
Beaver deal lasting more than five years, Ingevaldson said. Ace
Canada now ships to more than 500 stores weekly and has 80 bannered
Ace dealers.

* * * * *
* *

CASHWAY
BUYS UP CO-OP’S DO-IT STORES

With its
latest acquisition, Cashway Building Centres has gained access to a
pocket of central southwestern Ontario previously underserved.
Hensall District Co-operative Inc. has sold off five of its Do-it
Center stores to Cashway to focus on the agri-business and petroleum
side of its business. The stores are located in Exeter, Zurich,
Seaforth, Ilderton and Forest. Hensall will hold on to the Parkhill
Do-it Center until it can be sold off too. Do-it sales account for
about $20 million of Hensall’s overall sales of $140 million. The
acquisition will bring Cashway’s store count up to 66.

* * * * *
* *

HOMECARE
LAUNCHES NEW CREDIT CARD PROGRAM

Homecare
Building Centres has extended its adoption of the Tim-BR Mart brand
to a new credit card program. Users of the existing Homecare consumer
card will be converted automatically to its “Preferred Customer”
card, while a brand new card has been added for contractors called
“Professional Advantage.”

The cards,
supplied by Hamilton Discount, will roll out December 1, with a
promotional push backed by flyer and POP support in the Spring of
2000.

COMPANIES IN THE NEWS

Canadian
Tire Corp. had third quarter consolidated earnings before tax of
$82.2 million, up 10.8% from $74.2 million a year earlier.
Consolidated net earnings for the quarter were up 5.2% from $49.9
million to a record $52.5 million. Associate dealers’ third quarter
retail sales were up 5.3% over the same quarter in 1998. Third
quarter same-store sales were up 0.5%. For the first nine months of
1999, retail sales were up 6.7% over 1998. Same-store sales in the
first nine months were up 2.3% over last year.

MacMillan
Bloedel shareholders approved the proposed acquisition by
Weyerhaeuser, paving the way for final court approval of the deal,
which occurred October 29.

Home Depot
Canada opened its fourth Edmonton store last week. A fifth store, in
the east end, is scheduled for early next year.

RONA Inc.
has opened a 46,000-sq.ft. Rénovateur store in Atholville,
N.B. It features a 21,000-sq.ft. indoor drive-through and a
50,000-sq.ft. outdoor lumberyard. The new store carries almost 30,000
SKUs and represents a $5 million investment. The dealer-owner is
Rhéal Lagacé.

Hudson Bay
Co. has unveiled a plan to remodel its downtown Toronto store and
eliminate discounting, although markdowns will still be available in
suburban mall stores. CEO George Heller said the retailer was
changing its image “from reliable to desirable.”

Home Depot
in the U.S. is using a new wood purchasing policy to phase in
certified wood and wood products derived from responsibly managed
forests. The company has awarded commendations to J.D. Irving and
Columbia Forest Products for leadership in gaining independent
certification. (I guess those displaced Trappist monks don’t count!
&endash; M. M.) Certification is provided by the Oaxaca, Mex.-based
Forest Stewardship Council. Over the next three years, Home Depot
intends to stop selling wood products from environmentally sensitive
areas.

Camar
Publications, which publishes Canadian Home Workshop, Canadian
Gardener and Outdoor Canada, has changed its name to Avid Media
Inc.

Ivanhoe
Inc., a Canadian property management firm, will buy the Eaton’s store
in downtown Montréal for $34 million. The art deco-style
building occupies more than a million square feet. Possible tenants
include Sears, continuing the Eaton’s banner, and Ailes de la
Mode.

Sears in the
U.S. plans to open 15 home decorating and remodeling stores over the
next 18 months. Called The Great Indoors, the first store is in
Denver, Colo., and a second 133,000-sq.ft. store will open in
Scottsdale, Ariz., on November 4. The next four locations will be
near Dallas and Denver, and two stores are planned for suburban
Detroit. A total of 150 outlets in 40 U.S. markets are planned. The
Great Indoors has more than 50,000 SKUs, including lamps, rugs and
appliances, and features 75 room layouts plus design consultants,
classes on home improvement, cafés and a resource library with
decorating books and magazines.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	35.70
Canfor	13.30	4.25	11.95
Goodfellow	11.80	6.00	11.20
Hudsons Bay	23.85	4.00	19.75
MacMillan Blo.	27.85	12.05	22.90
Sears Canada	34.35	15.25	32.95
Taiga Forest	14.75	8.65	13.85
West Fraser	41.00	9.05	32.00

“Ask
yourself whether you are happy, and you cease to be so.”

-John Stuart Mill (1806-1873)

PEOPLE ON
THE MOVE

Greg Lavigne is now at the Schlage division of Ingersoll-Rand
Architectural as director of sales and marketing, residential
products. He was formerly with Philips Lighting and Black &
Decker/DeWalt. (905-278-6128)

Jacqueline
Burlock has joined the sales and marketing team at Broan-NuTone
Canada Ltd. She was formerly in the same role at Karcher Canada and
Nilfik-Advance. She reports to the two sales vice-presidents, Cec
Norman and Scott Stevens. (905-670-2500, ext. 263)

OVERHEARD

– “We
realize there is a lot of emotion and history that is part of this
transaction. But we believe this merger creates a growth company that
will provide our people and communities with a future that is full of
opportunities. Weyerhaeuser is a company that is as committed to
safety, the environment and community values as we are.” – Tom
Stephens, president and CEO of MacMillan Bloedel, on the finalization
of the selling off of one of British Columbia’s largest employers to
a U.S. company.

– “Three
years ago, everyone waited for Sodisco-Howden to go out of business
and then move in and pick up the pieces. Now we seem to be the only
stable environment out there.” &emdash; Tony Molluso, president and
CEO of Sodisco-Howden Group, to dealers and vendors at the recent
Howden market in Toronto.

MARKET INDICATORS

Housing
starts should hit 146,500 units this year and 153,200 in 2000,
compared with 137,439 in 1998, according to CMHC’s fourth quarter
Housing Outlook report. Home building will become much more active in
Ontario while starts will benefit from a resilient economy, strong
job creation, and rising in-migration. This performance will continue
into 2000.

Increased
starts, forecast for the Atlantic region in 1999, reflect the
positive effects of numerous megaprojects. Starts will slow in 2000
as megaproject spending winds down in Nova Scotia. Housing starts
will rise in Québec where steady economic growth and
increasing employment in high-technology sectors will support more
home construction through 2000. In Alberta, falling net migration
from recent record levels and lingering concerns over job security
will mean fewer housing starts this year and next. Although activity
will slow in Alberta, construction will remain at relatively high
levels in all three Prairie provinces this year and in 2000. Reduced
consumer confidence and lower interest from offshore home buyers will
reduce housing starts in British Columbia this year. Recovery in the
forest sector, tighter resale markets, and stronger migration should
trigger more housing construction in 2000, but starts will remain
substantially below the average.

Sustained
employment gains and low interest rates will continue to support the
resale market. Sales of existing homes should reach record levels,
rising to 333,300 this year and 340,600 in 2000. Solid average price
growth nationally will reflect increased sales in the higher-priced
B.C. and Ontario markets.

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

October
31, 1999 – Volume v, #44

Michael McLarney, Editor & Publisher

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

HARDLINES
NEWSFLASH: BEAVER – HOME DEAL CLOSES

November
5, 1999

REMEMBER
&endash; THE HARDLINES WHO’S WHO DIRECTORY OF CANADIAN RETAILERS,
BUYING GROUPS, MASS MERCHANTS AND WHOLESALERS IS NOW
AVAILABLE!

* * * * * *
*

Cheers,

Michael

* * * * *
* *

REMEMBER
– THE HARDLINES WHO’S WHO DIRECTORY OF CANADIAN RETAILERS, BUYING
GROUPS, MASS MERCHANTS AND WHOLESALERS IS NOW AVAILABLE!

This week in Hardlines:

ACE
REAFFIRMS CANADIAN COMMITMENT WITH FIRST SHOW

* * * * *
* *

CASHWAY
BUYS UP CO-OP’S DO-IT STORES

* * * * *
* *

HOMECARE
LAUNCHES NEW CREDIT CARD PROGRAM

The cards,
supplied by Hamilton Discount, will roll out December 1, with a
promotional push backed by flyer and POP support in the Spring of
2000.

COMPANIES IN THE NEWS

MacMillan
Bloedel shareholders approved the proposed acquisition by
Weyerhaeuser, paving the way for final court approval of the deal,
which occurred October 29.

Home Depot
Canada opened its fourth Edmonton store last week. A fifth store, in
the east end, is scheduled for early next year.

Camar
Publications, which publishes Canadian Home Workshop, Canadian
Gardener and Outdoor Canada, has changed its name to Avid Media
Inc.

CANADIAN
STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	35.70
Canfor	13.30	4.25	11.95
Goodfellow	11.80	6.00	11.20
Hudsons Bay	23.85	4.00	19.75
MacMillan Blo.	27.85	12.05	22.90
Sears Canada	34.35	15.25	32.95
Taiga Forest	14.75	8.65	13.85
West Fraser	41.00	9.05	32.00

“Ask
yourself whether you are happy, and you cease to be so.”

-John Stuart Mill (1806-1873)

PEOPLE ON
THE MOVE

OVERHEARD

MARKET INDICATORS

Hardlines
Classifieds

FIND THAT NEW PERSON, NEW AGENCY OR NEW LINE WITH HARDLINES
CLASSIFIEDS. THEY’RE A LOW-COST WAY TO REACH MORE THAN 2,000 PEOPLE
EVERY WEEK. ONE AD RUNS FOR TWO WEEKS IN THE FAX EDITION AND THREE
WEEKS IN THE E-MAIL EDITION OF HARDLINES. TO PLACE YOUR CLASSIFIED
AD, JUST CALL BEVERLY ALLEN AT 416- 489-3396, EXT. 2.

* * * * * *
*

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
© 1999 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.

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