IN THIS ISSUE

• Orgill show attracts record number of Canucks
• Atlantic show generates sales despite weather, competing shows
• Castle adds 10 new members
• Major brands join National Hardware Show
• PLUS: Ace shows improvement in U.S., Lowe’s year-end, Joe Fresh in Manhattan, Sweden in Russia, Walmart in Chicago, B&Q in print, Sears in the doldrums —and more! 

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Join us
May 10-12
Las Vegas, Nevada.

____________________________________

DID YOU KNOW…?

… that the newly amalgamated “National Hardware Show held in conjunction with the NRHA All-Industry Convention” will incorporate all of the programming the NRHA currently offers at its annual meeting? That includes the Young Retailer of the Year and Retail Innovators of the Year awards, while allowing the two organizations to more fully serve the industry in one annual gathering. To learn more about the NRHA All-Industry Convention, contact: NRHA All-Industry Convention contact: Allison DeWitt, 317-275-9414 or adewitt@nrha.org. Want more info about NHS? Click here.

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SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
____________________________________

NEWS IN BRIEF

REPENTIGNY, Que. — RONA inc. has opened a new 35,000-square-foot store here. The site is owned jointly by RONA and the Prud’homme family, and is expected to create about 70 new jobs. It includes a 12,000-square-foot outdoor gardening centre, a 10,000-square-foot indoor lumberyard, and an outdoor lumberyard covering 55,000 square feet.

MOORESVILLE, N.C. — Lowe’s Cos. Inc. has reported fourth-quarter net earnings of $285 million, a 39.0% increase from the same period a year ago. Sales for the quarter increased 3.1% to $10.5 billion, up from $10.2 billion in the fourth quarter of 2009.  For the fiscal year ended Jan. 28, net earnings increased 12.7% to $2.0 billion, while sales increased 3.4% to $48.8 billion. Same-store sales were up 1.1% for the fourth quarter and increased 1.3% for fiscal 2010.

OAK BROOK, Ill. — Ace Hardware Corp., the largest retailer-owned hardware cooperative in the U.S., has reported total revenues of $859.3 million for the fourth quarter, an increase of $59.0 million or 7.4% from 2009. Net income was $20.6 million for the fourth quarter, an increase 65.1%. For the full year, total revenues were $3.5 billion, an increase of $73.5 million or 2.1%, while net income was $75.1, down $20.6 million or 21.5%. “While consumers were still somewhat cautious during 2010, we certainly saw positive activity during the fourth quarter,” said Ray Griffith, Ace president and CEO, in a release. He cited successful strategic initiatives such as the adoption of Sears’ Craftsman brand in Ace stores, and the introduction of Benjamin Moore paint. On a category basis, the strongest selling categories were hand and power tools, lawn and garden, heating and cooling, electrical, and seasonal.

CHICAGO — Walmart is the latest big-box retailer to find a location in this city’s West Loop area. Walmart wants to open one of its Neighborhood Market stores at an apartment complex in the Loop. Last week, we reported that Target would take over the historic Carson Pirie Scott site on State St. to install a 54,000-square-foot store.

SMALALAND, Sweden — Furniture and accessories retailer Ikea generated $31.9 billion in sales in fiscal 2010, up 7.7% over the previous year. According to The Economist, the Germans accounted for 15% of those sales. While expansion in Russia, where the company has 12 stores, has been hampered by corruption, it plans three more there in coming years, and intends to open more stores in Central and Eastern Europe. And while retailers like Home Depot and Best Buy have closed stores in China, Ikea intends to ramp up expansion there, as well.

LONDON — British DIY retailer B&Q has launched a lifestyle magazine of its own. Called “B&Q Home,” it features tips on home improvements, decorating and gardening. It will have a circulation of five million to homes around B&Q stores throughout the U.K.

BENTONVILLE, Ark. — Walmart’s net sales for the fourth quarter of fiscal 2010 were $112.8 billion, an increase of 4.6% from $107.9 billion in the fourth quarter last year. Net sales for the fiscal year were $405.0 billion, an increase of 1.0%.

ISSAQUAH, Wash. — Costco Wholesale Corp. had net sales for the second quarter ended Feb. 13 of $20.45 billion, up 11% from the same quarter a year earlier. Year-to-date net sales increased 11% to $39.27 billion. This year’s results include sales from the company’s 50% owned Mexico joint venture, which accounted for approximately three percentage points of the increase. Net income for the quarter was $348 million, up from $299 million, while net income for the first half was $660 million, up from $565 million.

HOFFMAN ESTATES, Ill. — Sears Holdings Corp. had revenue in its fourth quarter ended Jan. 29 of $13.1 billion, a decrease of $103 million. Full-year revenues decreased $717 million to $43.3 billion. The decreases were primarily due to lower same-store sales and fewer Kmart and Sears full-line stores. Declines in sales at Sears Domestic were primarily driven by the hardlines categories – especially consumer electronics – as well as apparel. Operating income was $663 million for the quarter, down from $749 million a year earlier.

TORONTO — After launching in Loblaw stores five years ago, Joe Fresh, the grocery retailer’s apparel brand, has opened a stand-alone store in Vancouver and now intends to expand into the U.S. The company will open its first four stores in New York City this fall, according to the National Post.

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Make significant and measurable
savings with OGC

_____________________________________

PEOPLE ON THE MOVE

Norm Greensmith, buyer for hardware and tools, is no longer at TIM-BR MARTS Ltd. For assistance during the interim, queries are being directed to Randy Martin, vice-president, merchandise. (403-717-1990)

Michèle Roy, formerly vice-president communications and public affairs at RONA inc., has left the company. However, we expect her to turn up in a related position in the next couple of weeks.

Infamous for his mass firings as a corporate turnaround specialist, Sanford Sigoloff, aka “Ming the Merciless,” has passed away at the age of 80. In 1978, Sigoloff fired Bernie Marcus and Arthur Blank from a hardware chain in California called Handy Dan’s. Undeterred, the pair went on to establish The Home Depot.

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ECONOMIC INDICATORS

Housing in Canada was up 0.8% in January, to 170,400 units seasonally adjusted. The push came mainly from rural starts, as urban starts were down 1.8%. Regionally, Atlantic Canada was up 13.3% and Ontario was up 10.3%, while the Prairie Provinces were down 19.0%. British Columbia was down 7.9% and Quebec was down 1.0%. Housing starts are expected to reach 177,600 units in 2011. (CMHC)

U.S. Construction spending in January was $791.8 billion, down 0.7% from December and down 5.9% from January 2010. (U.S. Commerce Dept.)

Sales of new single-family homes in the U.S. in January were 284,000 at a seasonally-adjusted annual rate, 12.6% below the revised December level, and 18.6% below their year-ago level. (U.S. Commerce Dept.)

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IN THIS ISSUE

• Home Depot sees lift in year-end results
• RONA evp identifies growth categories for year ahead
• Conference report: repeat home buyers will drive renos
• Superior’s construction division pulled down by U.S.
• Used machinery fair to run with Cologne Hardware Fair
• PLUS: Lowe’s to open in Edmonton, Canadian Tire up in 2010, TIM-BR MART team helps out in Haiti, Workmate inventor dies, U.S. housing still troubled, Target to open in Chicago, retail sales soften —and more! 

____________________________________

A new magazine for home improvement retailers

Hardlines Home Improvement Quarterly is the new print trade journal for decision makers in home improvement retail. Four times a year dealers, buyers and executives across Canada will receive the latest news, information and research to help you make the decisions that will build your sales and increase your profits. To ensure you receive your personal copy of HHIQ, click here. If you are an advertiser looking for an outstanding vehicle to deliver your message to the retail decision makers, call Beverly Allen, our illustrious Publisher: bev@hardlines.ca

____________________________________

DID YOU KNOW…?

… that HARDLINES just got back from Moncton at the Atlantic Building Materials Show last week? Brady Peever and Bill Wilson had a booth there, representing the North American Retail Hardware Association Canada. Meanwhile, Bev and I were down in Orlando getting the scoop on what Orgill is doing to increase its presence in Canada. Stay tuned! —Michael

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SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
____________________________________

NEWS IN BRIEF

EDMONTON — Lowe’s, the world’s second-largest home-improvement retailer, will open its first Edmonton store this summer. According to the Edmonton Journal, the first store there will open Aug. 1 at the South Edmonton Common. Lowe’s opened its first store in Western Canada in Calgary last September and has plans to open two more in that city this spring. Lowe’s continues to develop sites across the country; a property in Cambridge, Ont., is reportedly being subjected to a rezoning application to ready it for a future opening there.

TORONTO — Consolidated sales for retail giant Canadian Tire Corp. increased 3.1% overall year-over-year in 2010. Total sales for the Retail division increased 0.5% in the fourth quarter and 1.4% for the full year. Same store sales rose 0.8% for the full year. Performance in the “Living, Fixing and Playing” category in the quarter was driven by positive growth in tools, outdoor recreation and kitchen. Over the course of 2010, Canadian Tire also saw growth in categories such as household consumables and pet foods, which are considered key to driving traffic to stores and increasing trip frequency.

CALGARY — Half a dozen members and head office staff from the TIM-BR MARTS buying group just got back from a week in Haiti, where they pitched in to finish construction on an orphanage outside of Port-au-Prince. TIM-BR MART dealers across the country also managed to raise more than $60,000 on behalf of Haitian relief, and many stores collected further items that were taken down to help the children in the orphanage.

JERSEY, U.K. — If the growth of the DIY movement could be attributed to one tool, it would have to be the Black & Decker Workmate. The inventor of the device, Ron Hickman, has passed away from complications following a fall several months ago. Hickman was an automotive designer by trade; working for Ford, he was responsible for the look of the original two-seater Lotus Elan automobile (made famous by Diana Rigg in her role as Mrs. Peel in “The Avengers” —your nostalgic Editor). After inadvertently sawing through an expensive chair while working at home, he came up with the design for the Workmate. Initially, it was rejected by a number of companies, including Black & Decker. When Hickman began selling it successfully on his own, the company wisely took a second look. To date, more than 30 million Workmates have been sold worldwide.

NEW YORK — While markets such as Florida and the U.S. Southwest have suffered greatly from the collapse of the housing market, other areas once considered more stable are also now weakening. According to the New York Times, large centres such as Atlanta and Minneapolis are suffering, while Seattle is down about 31% from a peak in mid-2007. According to one source in the story, the country is set to drop another 5-7% as the effect of tax credits for home buyers continues to wear off.

TEMISCAMING, Que. — Tembec has permanently closed its sawmill in Taschereau. The facility has been idle since October 2009. Its closing was necessitated, says the company, by shortage of sustainable timber to operate all of Tembec’s sawmills in the Abitibi-Témiscamingue region. This closure is expected to strengthen the long-term viability of Tembec’s mills in Bearn and La Sarre.

CHICAGO — The historic corner where the Carson Pirie & Scott flagship department store stood for more than a century will become the site of CityTarget, a new concept by Target to fit into urban locations. The new urban format will be considerably smaller than a regular Target store. Along with food and clothing, the store will stock apartment essentials suited to downtown living.

____________________________________

Make significant and measurable savings with OGC

_____________________________________

ECONOMIC INDICATORS

Retail sales dipped 0.2% in December to $37.3 billion, following an increase in November. This slight decline comes on the heels of six consecutive months of gains. New car sales saw the greatest decrease, down 2.8%. Lower sales were experienced by building materials and garden equipment and supplies dealers, down 1.4%. Overall retail sales in volume terms decreased 0.4%. (Stats Canada)

Consumer prices rose 2.3% in the 12 months to January 2011, following the 2.4% increase posted in December 2010. (Stats Canada)

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NOTED…

…Costco Canada is making the most of Canadians’ penchant for online sales. The company sells about 350 SKUs of hardlines over the Internet, in about 900 varieties. Costco Canada sold 5,500 vanities alone last year.

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Join us
May 10-12
Las Vegas, Nevada.

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IN THIS ISSUE

• Big-box re-invention opens opportunities for independents
• CanSave’s Koza brothers honoured
• Former Lowe’s Canada head makes mark at head office
• Service agency strengthens ties with RONA
• PLUS: Big boxes hire for spring, Kent opens in Gander, IRLY welcomes new member, U.S. housing starts remain soft, Stanley B&D sponsors Jim Caruk, Royal Group acquires U.S. siding company, Bob Dale Gloves forges partnership with Mike Holmes —and more!

____________________________________

A new magazine for home improvement retailers

Hardlines Home Improvement Quarterly is the new print trade journal for decision makers in home improvement retail. Four times a year dealers, buyers and executives across Canada will receive the latest news, information and research to help you make the decisions that will build your sales and increase your profits. To ensure you receive your personal copy of HHIQ, click here. If you are an advertiser looking for an outstanding vehicle to deliver your message to the retail decision makers, contact Beverly Allen, our illustrious Publisher: bev@hardlines.ca, 647-880-4589.

____________________________________

Join us
May 10-12
Las Vegas, Nevada.

____________________________________

Did you know?

… that Atlantic Canada is perennially resistant to economic highs and lows? The recession of 2008-2009 is a case in point: retail home improvement sales for the entire region were up 1.6% in 2009, after dropping 1.2% in 2008. The West, on the other hand, continued to lose ground in 2009, for the second year in a row, though at a slightly less drastic rate. Sales dropped in the region by 7.3%, after a drop in 2008 of 4.5%. (Full details of the changing market shares of each province, plus the sales and market shares of each retail home improvement banner, are in our latest Market Share Report. For more information, click here. —Michael)

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SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
____________________________________

NEWS IN BRIEF

GANDER, Nfld. — Kent Building Supplies held a grand opening for its new 65,000-square-foot store here on Jan. 15. The store, which carries more than 22,000 SKUs and includes a cut shop, kitchen design, custom colour matching, a project centre and installed sales, is the company’s 34th. Kent, a member of Independent Lumber Dealers Co-operative, is the market leader in Atlantic Canada, with estimated sales in 2009 of $434 million. With the economic vitality being experienced in the province, the company has made a commitment to continued expansion there, with more stores reportedly planned before year’s end.

OAKVILLE, Ont. — Stanley Black & Decker has entered into a three-year endorsement of Jim Caruk, master contractor and HGTV host best known for his TV series, “Real Renos.” The agreement involves category-exclusive endorsement of DeWalt power tools and accessories and Stanley hand tools. “In this business, it’s important that you use first-rate materials and durable, high-performance tools that allow you to complete the job efficiently and expertly,” says Caruk. In addition to his participation in integrated media campaigns, editorial, and promotions for the brands, Caruk will take part in trade and customer-related events. A strong advocate of tradesmen and homeowners alike, Caruk will launch this spring a bi-monthly publication, Renovation Contractor, a national trade magazine for professional homebuilders and renovators. In 2009, he founded Renos for Heroes www.renosforheroes.org, a non-profit foundation that does home modifications for wounded Canadian military personnel.

ATLANTA — Both Lowe’s and Home Depot will hire more staff in the coming weeks as the home improvement retailers prepare for the typically busy spring season. Home Depot alone says it will recruit 60,000 seasonal associates in time for the company’s second annual “Spring Black Friday” event. In fact, the company will run four Black Friday promotions vs. two last year, with each promotion taking place in a different part of the country according to the weather in each region. Lowe’s says it will hire up to 10,000 weekend staff.

SURREY, B.C. — IRLY Distributors and the IRLY Building Centres have added a new member to their ranks. Fraser Lake Supplies in Fraser Lake, B.C., has got a new owner, Rob King, who plans to expand the business to keep step with the growth in this northern community.

EDMONTON — Bob Dale Gloves has forged a partnership with The Holmes Group, to provide hand protection under the Holmes Workwear line. The line will be launched through major retail chains as well as industrial distribution channels by mid-year. It will also get the endorsement of Mike Holmes, the professional contractor, home renovation advocate and TV star. Bob Dale Gloves is a Canadian company with 50-plus years of experience in the glove industry.

ATLANTA — Georgia Gulf Corporation has acquired Exterior Portfolio from the Crane Group. Headquartered in Columbus, Ohio, Exterior Portfolio is a siding products maker with 2010 revenues of approximately $100 million. Georgia Gulf manufactures vinyl-based building and home improvement products under the Royal Group brand, including window and door profiles, mouldings, siding, pipe and pipe fittings, and deck and fence products. The acquisition gives the company an increased U.S. presence. “Exterior Portfolio is a recognized leader in the premium insulated siding category, with a strong national network of distribution partners in the United States. This acquisition is a strong fit with our Royal Building Products business, and the combination will create the third-largest vinyl siding manufacturer in North America,” said Paul Carrico, president and CEO of Georgia Gulf.

____________________________________

Make significant and measurable savings with OGC

_____________________________________

PEOPLE ON THE MOVE

Tony Anderson has been appointed vice-president, sales and marketing at CGC Inc. He was previously the director, sales. Anderson will provide overall leadership and direction to the sales and marketing organization and will be responsible for creating and implementing customer-focused strategies. He has held a variety of sales, marketing and customer operations roles in several locations and has built strong relationships across Canada during his sixteen years with CGC … Steve Youngblut, formerly sales manager, national accounts at CGC, has been named director, national accounts. He will be responsible for strategy development and execution, with continued focus on key national account and big-box retail customers. Steve has been with CGC for more than 10 years and has held a variety of customer service, sales and sales leadership roles.

Lowe’s Cos. continues to make changes to its management ranks. Troy Dally has been promoted to senior vice-president and general merchandising manager of hardlines and building products … That position was previously held by Robert Gfeller Jr., who is now executive vice-president of merchandising … William Allen has been promoted to senior vice-president of logistics … He replaces Rick Damron, who was promoted to executive vice-president of store operations … Maureen Ausura has been named executive vice-president of human resources, after serving as senior vice-president in the HR departmen … Gaither Keener has been promoted to executive vice-president, general counsel, secretary and chief compliance officer.

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ECONOMIC INDICATORS

Manufacturing sales were up 0.4% to $45.4 billion in December. Gains were seen in primary metal and petroleum and coal products. Manufacturing sales have been moving upwards at a slower rate in recent months. Constant dollar manufacturing sales declined 0.5% in December, reflecting price increases reported during the month. (Stats Canada)

The number of U.S. building permits in January fell by 10.4% to 562,000 from the previous month and were down 10.7% from January 2010. Housing starts reached 596,000 in January, up 14.6%% from the prior month, but down 2.6% year-over-year. (U.S. Commerce Dept.)

Retail and food services sales in January rose 0.3% from the prior month and 7.8% from the prior year, to $381.6 billion. Excluding automobiles, retail sales in January rose 0.3% from December and increased 6.2% from January 2010, to $312.7 billion. (U.S. Commerce Dept.)

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IN THIS ISSUE

• CMHC will give housing update at LBMAO show
• Spancan clarifies member lineup
• Sexton gm expects stronger year ahead
• CanWel’s Doman ranks as one of Canada’s richest
• Wal-Mart puts pressure on prices
• PLUS: Dealer Lounge offers seminars at LBMAO show, RONA makes commercial acquisition again, Home Hardware wants to expand its distribution facilities again, executive changes at Lowe’s again, Richelieu posts strong year end again, Home Depot tries to get female-friendly again, GDP rises again —and more!

____________________________________

A new magazine for home improvement retailers

Hardlines Home Improvement Quarterly is the new print trade journal for decision makers in home improvement retail. Four times a year dealers, buyers and executives across Canada will receive the latest news, information and research to help you make the decisions that will build your sales and increase your profits. To ensure you receive your personal copy of HHIQ, click here. If you are an advertiser looking for an outstanding vehicle to deliver your message to the retail decision makers, call Beverly Allen, our illustrious Publisher: bev@hardlines.ca

____________________________________

DID YOU KNOW…?

… that dealers looking to rest their feet – and improve their management skills – will be able to do both at the upcoming Canadian Home Improvement Show? This major buying event features the Johns Manville HARDLINES Dealer Lounge. The Lounge will be the scene for a series of business-building “Power Sessions,” 15-minute mini-seminars that will take place right on the show floor:

• “Be an Environmental Expert in Insulation Sales”: Thursday, Feb. 10, 1:30 p.m.
• “Use Technology to Increase Your Customer Connection”: Thursday, Feb. 10, 2:30 p.m.; Friday, Feb. 11, 11:30 a.m.
• “Use Training to Drive Sales in Your Store”: Thursday, Feb. 10, 11:30. a.m.; Friday, Feb. 11, 1:30 p.m.

Each “Power Session” participant receives an NRHA lunch Bag! For more info and to register, click here —Michael)

____________________________________

SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
____________________________________

NEWS IN BRIEF

BOUCHERVILLE, Que. — RONA inc. has acquired the assets of La Boutique Plomberie Decoration 25 Inc. through RONA’s commercial subsidiary, Noble. La Boutique de Plomberie Decoration 25 sells plumbing products and fixtures through a 15,000-square-foot retail showroom and one parts outlet in St-Eustache, Que. The deal represents “an excellent complement to RONA’s recent acquisition of Plomberie Payette & Perreault and plumbing distributor LGC in Quebec,” said Michael Storfer, vice president of RONA’s Commercial and Professional Market. His division, which was formed in late 2007, today comprises 63 stores and outlets, four distribution centres and three manufacturing facilities in Ontario, Quebec and British Columbia.

DEBERT, N.S. — Home Hardware Stores Ltd. wants to expand its distribution centre here and it wants to buy up another 17 acres of property to do so. According to the Truro Daily News, however, the company must get an environmental assessment before the deal can go through, as some of the property sits on wetlands. Home Hardware, which already owns about 40 acres here, has four DCs across the country totalling almost three million square feet.

CALGARY — “This seems to be working for me.” That’s what Allen Lutes of Lutes Building Supplies said when he got a phone call from Taiga’s Calgary branch manager recently. The Taiga rep told Lutes that he’d won a truckload of plywood in a draw at the recent WRLA Prairie Showcase. Lutes was shovelling snow at his local church when the call came in. (Taiga, which had almost 40 people at the show in Saskatoon, also gave away a truckload of OSB and a 1962 Cadillac convertible.)

SURREY , B.C. — IRLY Distributors and the IRLY Building Centres have added a new member. Shawn and Suzie Fadear recently purchased Barriere Building Centre in Barriere, B.C., in the scenic North Thompson area of the province. They already have aggressive growth plans. The Fadears own highway frontage property and plan to relocate the store to a new building they plan to construct.

MONTREAL — With retail sales in Quebec of $99.9 billion and a 6.6% increase in these sales over 2009, Quebec’s retail sector exceeded the 2% forecast for 2010 and experienced its strongest growth since 2005. The study, by the Retail Council of Quebec, reveals that retail sales for 2010, both in Quebec and in Canada, grew at a faster rate than before the crisis of 2008-2009. In Quebec, they increased by 6.6%. However, despite overall growth, sales by renovation, hardware, building and gardening centres were down 1.1%.

MONTREAL — Richelieu Hardware enjoyed a strong year-end, with consolidated sales reaching $447.0 million, up 7.6% over 2009. Canadian sales, up 9.0%, were stronger than in the United States, where the business environment remained challenging. However, the company remained aggressive there with acquisitions, boosting U.S. results by 12.3%. Sales to home improvement retailers, mostly in Canada, grew by $6.6 million or 9.3% to $77.3 million in 2010. The most significant increases were posted in Ontario and Eastern Canada.

ISSAQUAH, Wash. — Costco reported net sales of $6.30 billion for January, a 12% increase from $5.62 billion last year. For the 22 weeks ended Jan. 30, net sales were $36.08 billion, up 11%. Same-store sales for January and the year to date were 9% and 7% respectively.

ORLANDO , Fla. — Dealers congregated here last week for True Value’s Spring Market.

CEO Lyle Heidemann opened the general session with an update on True Value’s financial statements. Total same-store sales were up 0.3% for 2010. “Considering a less than robust economy, I think we had a pretty good year,” he said, adding that retailers can look forward to a positive 2011. (Overall home improvement sales for the U.S industry are expected to increase by roughly 3%.) He also stressed that retailers need to get a jumpstart on preparing for the spring selling season, which is one of the reasons that True Value decided to hold its spring market earlier this year.

TORONTO – Loblaw’s clothing label “Joe Fresh” plans to open four new stand-alone stores in Canada this spring – with plans to open as many as 20 over time. Three of them will be in the Toronto area, and one will be outside of Calgary. Loblaw opened the first stand-alone Joe Fresh store in Vancouver last fall.

ATLANTA — Home Depot in the U.S. is admitting (again? —Editor) that it does not cater to women well enough. So it’s making changes (again? —Editor, again). It’s going to expand such offerings as the Martha Stewart Living line. In Canada, of course, Home Depot has long tried to woo the female customer, as it had to compete with a more décor- and style-oriented RONA up here.

____________________________________

Make significant and measurable savings with OGC

_____________________________________

PEOPLE ON THE MOVE

Larry Stone , president and COO of Lowe’s Cos., and a 42-year veteran of the company, will retire on June 2. His titles will not be replaced … Lowe’s has made other promotions in its executive suite, including the naming of Robert J. (Bob) Gfeller, Jr. as executive vice-president, merchandising; and Rick D. Damron as executive vice-president, store operations … William D. (Doug) Robinson has been named senior vice-president, customer support services … Richard D. Maltsbarger becomes senior vice-president, strategy. These appointments follow last week’s news that the company was laying off 1,700 middle managers across the United States.

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ECONOMIC INDICATORS

Real gross domestic product rose 0.4% in November after growing by 0.2% in October. Oil and gas extraction led the way, followed by wholesale and retail trade (+1.4%), real estate and the finance and insurance sector. Widespread increases in the home resale market across the country in November led to a 7.6% growth in the output of real estate agents and brokers. This marked a fourth consecutive monthly increase for this industry. However, construction declined by 0.4% in November. Residential building construction continued to retreat as a result of reduced demand for single and semi-detached homes. Non-residential building construction decreased 0.2%. (Stats Canada)

Construction spending in the U.S. in December was $787.9 billion, 2.5% below the previous month and 6.4% below December 2009. The annual value of construction for the full year 2010 was $814.2 billion, down 10.3% from 2009. (U.S. Commerce Dept.)

____________________________________

Join us
May 10-12
Las Vegas, Nevada.

_____________________________________

OVERHEARD…

“The days of saying we’ll do what we can [with supplier programs] are over. We have to deliver on the promises we make.” —Steve Buckle, vice-president and general manager of the Sexton Group, on the importance of dealers staying loyal to purchasing programs established through their buying group.

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IN THIS ISSUE

• CMHC will give housing update at LBMAO show
• Spancan clarifies member lineup
• Sexton gm expects stronger year ahead
• CanWel’s Doman ranks as one of Canada’s richest
• Wal-Mart puts pressure on prices
• PLUS: Dealer Lounge offers seminars at LBMAO show, RONA makes commercial acquisition again, Home Hardware wants to expand its distribution facilities again, executive changes at Lowe’s again, Richelieu posts strong year end again, Home Depot tries to get female-friendly again, GDP rises again —and more!

____________________________________

A new magazine for home improvement retailers

Hardlines Home Improvement Quarterly is the new print trade journal for decision makers in home improvement retail. Four times a year dealers, buyers and executives across Canada will receive the latest news, information and research to help you make the decisions that will build your sales and increase your profits. To ensure you receive your personal copy of HHIQ, click here. If you are an advertiser looking for an outstanding vehicle to deliver your message to the retail decision makers, call Beverly Allen, our illustrious Publisher: bev@hardlines.ca

____________________________________

DID YOU KNOW…?

… that dealers looking to rest their feet – and improve their management skills – will be able to do both at the upcoming Canadian Home Improvement Show? This major buying event features the Johns Manville HARDLINES Dealer Lounge. The Lounge will be the scene for a series of business-building “Power Sessions,” 15-minute mini-seminars that will take place right on the show floor:

• “Be an Environmental Expert in Insulation Sales”: Thursday, Feb. 10, 1:30 p.m.
• “Use Technology to Increase Your Customer Connection”: Thursday, Feb. 10, 2:30 p.m.; Friday, Feb. 11, 11:30 a.m.
• “Use Training to Drive Sales in Your Store”: Thursday, Feb. 10, 11:30. a.m.; Friday, Feb. 11, 1:30 p.m.

Each “Power Session” participant receives an NRHA lunch Bag! For more info and to register, click here —Michael)

____________________________________

SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
____________________________________

NEWS IN BRIEF

BOUCHERVILLE, Que. — RONA inc. has acquired the assets of La Boutique Plomberie Decoration 25 Inc. through RONA’s commercial subsidiary, Noble. La Boutique de Plomberie Decoration 25 sells plumbing products and fixtures through a 15,000-square-foot retail showroom and one parts outlet in St-Eustache, Que. The deal represents “an excellent complement to RONA’s recent acquisition of Plomberie Payette & Perreault and plumbing distributor LGC in Quebec,” said Michael Storfer, vice president of RONA’s Commercial and Professional Market. His division, which was formed in late 2007, today comprises 63 stores and outlets, four distribution centres and three manufacturing facilities in Ontario, Quebec and British Columbia.

DEBERT, N.S. — Home Hardware Stores Ltd. wants to expand its distribution centre here and it wants to buy up another 17 acres of property to do so. According to the Truro Daily News, however, the company must get an environmental assessment before the deal can go through, as some of the property sits on wetlands. Home Hardware, which already owns about 40 acres here, has four DCs across the country totalling almost three million square feet.

CALGARY — “This seems to be working for me.” That’s what Allen Lutes of Lutes Building Supplies said when he got a phone call from Taiga’s Calgary branch manager recently. The Taiga rep told Lutes that he’d won a truckload of plywood in a draw at the recent WRLA Prairie Showcase. Lutes was shovelling snow at his local church when the call came in. (Taiga, which had almost 40 people at the show in Saskatoon, also gave away a truckload of OSB and a 1962 Cadillac convertible.)

SURREY , B.C. — IRLY Distributors and the IRLY Building Centres have added a new member. Shawn and Suzie Fadear recently purchased Barriere Building Centre in Barriere, B.C., in the scenic North Thompson area of the province. They already have aggressive growth plans. The Fadears own highway frontage property and plan to relocate the store to a new building they plan to construct.

MONTREAL — With retail sales in Quebec of $99.9 billion and a 6.6% increase in these sales over 2009, Quebec’s retail sector exceeded the 2% forecast for 2010 and experienced its strongest growth since 2005. The study, by the Retail Council of Quebec, reveals that retail sales for 2010, both in Quebec and in Canada, grew at a faster rate than before the crisis of 2008-2009. In Quebec, they increased by 6.6%. However, despite overall growth, sales by renovation, hardware, building and gardening centres were down 1.1%.

MONTREAL — Richelieu Hardware enjoyed a strong year-end, with consolidated sales reaching $447.0 million, up 7.6% over 2009. Canadian sales, up 9.0%, were stronger than in the United States, where the business environment remained challenging. However, the company remained aggressive there with acquisitions, boosting U.S. results by 12.3%. Sales to home improvement retailers, mostly in Canada, grew by $6.6 million or 9.3% to $77.3 million in 2010. The most significant increases were posted in Ontario and Eastern Canada.

ISSAQUAH, Wash. — Costco reported net sales of $6.30 billion for January, a 12% increase from $5.62 billion last year. For the 22 weeks ended Jan. 30, net sales were $36.08 billion, up 11%. Same-store sales for January and the year to date were 9% and 7% respectively.

ORLANDO , Fla. — Dealers congregated here last week for True Value’s Spring Market.

CEO Lyle Heidemann opened the general session with an update on True Value’s financial statements. Total same-store sales were up 0.3% for 2010. “Considering a less than robust economy, I think we had a pretty good year,” he said, adding that retailers can look forward to a positive 2011. (Overall home improvement sales for the U.S industry are expected to increase by roughly 3%.) He also stressed that retailers need to get a jumpstart on preparing for the spring selling season, which is one of the reasons that True Value decided to hold its spring market earlier this year.

TORONTO – Loblaw’s clothing label “Joe Fresh” plans to open four new stand-alone stores in Canada this spring – with plans to open as many as 20 over time. Three of them will be in the Toronto area, and one will be outside of Calgary. Loblaw opened the first stand-alone Joe Fresh store in Vancouver last fall.

ATLANTA — Home Depot in the U.S. is admitting (again? —Editor) that it does not cater to women well enough. So it’s making changes (again? —Editor, again). It’s going to expand such offerings as the Martha Stewart Living line. In Canada, of course, Home Depot has long tried to woo the female customer, as it had to compete with a more décor- and style-oriented RONA up here.

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Make significant and measurable savings with OGC

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PEOPLE ON THE MOVE

Larry Stone , president and COO of Lowe’s Cos., and a 42-year veteran of the company, will retire on June 2. His titles will not be replaced … Lowe’s has made other promotions in its executive suite, including the naming of Robert J. (Bob) Gfeller, Jr. as executive vice-president, merchandising; and Rick D. Damron as executive vice-president, store operations … William D. (Doug) Robinson has been named senior vice-president, customer support services … Richard D. Maltsbarger becomes senior vice-president, strategy. These appointments follow last week’s news that the company was laying off 1,700 middle managers across the United States.

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ECONOMIC INDICATORS

Real gross domestic product rose 0.4% in November after growing by 0.2% in October. Oil and gas extraction led the way, followed by wholesale and retail trade (+1.4%), real estate and the finance and insurance sector. Widespread increases in the home resale market across the country in November led to a 7.6% growth in the output of real estate agents and brokers. This marked a fourth consecutive monthly increase for this industry. However, construction declined by 0.4% in November. Residential building construction continued to retreat as a result of reduced demand for single and semi-detached homes. Non-residential building construction decreased 0.2%. (Stats Canada)

Construction spending in the U.S. in December was $787.9 billion, 2.5% below the previous month and 6.4% below December 2009. The annual value of construction for the full year 2010 was $814.2 billion, down 10.3% from 2009. (U.S. Commerce Dept.)

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Join us
May 10-12
Las Vegas, Nevada.

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OVERHEARD…

“The days of saying we’ll do what we can [with supplier programs] are over. We have to deliver on the promises we make.” —Steve Buckle, vice-president and general manager of the Sexton Group, on the importance of dealers staying loyal to purchasing programs established through their buying group.

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IN THIS ISSUE

• Western dealers gather for buying show
• Castle causes stir at Western show
• Walmart Canada to open 40 supercentres
• TIM-BR MART offers in-store customer TV
• PLUS: AFA to open in Saskatoon, Pantelides promoted at TSC, U.S. housing makes gains, DeWalt sponsors NASCAR, Laurentide makes acquisition, Grainger ends year strong —and more!

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A new magazine for home improvement retailers

Hardlines Home Improvement Quarterly is the new print trade journal for decision makers in home improvement retail. Four times a year dealers, buyers and executives across Canada will receive the latest news, information and research to help you make the decisions that will build your sales and increase your profits. To ensure you receive your personal copy of HHIQ, click here. If you are an advertiser looking for an outstanding vehicle to deliver your message to the retail decision makers, well-researched vehicle in which to get your message to the retail decision makers, call Beverly Allen, our Illustrious Publisher: bev@hardlines.ca.

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DID YOU KNOW…?

… that we are less than two weeks away from the LBMAO’s Canadian Home Improvement Show? This important buying show for Ontario and region dealers is being held at the Toronto Congress Centre Feb. 10-11. On Friday, Feb. 11 start your day with a hot breakfast at the Johns Manville HARDLINES Dealer Conference Breakfast, an incredible morning session with two keynote speakers on Feb. 11: Retail Consultant and big box expert Doug Stephens; and Ted Tsiakopoulos, CMHC’s main man in Ontario. for more info and to register, Click here —Michael)

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SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
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NEWS IN BRIEF

VANCOUVER — AFA Forest Products Inc. has announced it will open a new distribution centre in Saskatoon. It is expected to be up and running by the end of February. Located at 602-43rd St. E., this facility will have a team dedicated to service, sales, customer support and promotional activities throughout the region. This location reinforces AFA’s strategic plan to create a truly national building materials distribution network and brings to 13 the number of divisions it has across the country. It also operates a facility in Portland, Ore., and a Visulam melamine plant in Lachute, Que.

RICHMOND HILL, Ont. — Power tool company DeWalt will sponsor Marcos Ambrose, driver of the No. 9 Ford Fusion, for the 2011-2012 NASCAR season. The car, part of the Richard Petty Motorsports team, will brandish the DeWalt logo. DeWalt likes to sponsor event marketing both locally and nationally.

MONTREAL — Tembec, the forest products company, had consolidated sales for the first quarter ended Dec. 25 of $422 million, up from $412 million in the comparable period a year earlier. Despite the increase in sales, Tembec suffered a net loss of $12 million, compared with a loss of $9 million in 2009. The Forest Products segment generated negative EBITDA of $11 million on sales of $113 million. This compares with negative EBITDA of $5 million on sales of $113 million in the prior quarter. Demand for SPF lumber remained relatively weak with shipments equal to 54% of capacity.

BRENTWOOD, Tenn. — Tractor Supply Company farm and ranch retailer had a fourth-quarter net sales increase of 19.7% to $1.03 billion from $862.5 million. Same-store sales increased 13.1%, driven by continued strength in consumable, usable and edible products, principally animal and pet-related merchandise. Seasonal items, predominantly heating and insulated outerwear, also performed well during the quarter. Net income for the quarter was $50.2million, up from $37.3 million. For fiscal 2010, net sales increased 13.5% to $3.64 billion from $3.21 billion. Same-store sales increased 7.0%. Net income was $168.0 million, up from $119.7 million. During fiscal 2010, the company opened 74 new stores and closed three.

MONTREAL — SIE, an industrial, commercial and residential plumbing and heating agency in Baie-D’Urfé, Que., has become a division of Laurentide Controls Ltd. This will now enable both Laurentide and SIE to leverage complementary product lines, services, and expertise. SIE will continue to operate out of its current location.

CHICAGO — For the year ended Dec. 31, wholesale supplier Grainger reported sales of $7.2 billion, up 15% vs. $6.2 billion in 2009. Net earnings of $511 million were up 19% from $430 million. For the 2010 fourth quarter, sales reached $1.8 billion, an increase of 12% over the 2009 quarter. Net earnings of $132 million increased 36% vs. $97 million in 2009. The company has forecasted sales growth of 5-9% for 2011.

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Make significant and measurable savings with OGC

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PEOPLE ON THE MOVE

Andrew Pantelides is now managing the categories of hardware, electrical, plumbing, paint, fencing and wire at TSC Stores Ltd. He was most recently category manager for work wear, safety wear, hunting and apparel, camping, fishing and ammunition at the London, Ont.-based farm and hardware chain. (519-453-5270; apantelides@tscstores.com)

Walmart U.S. has appointed Duncan Mac Naughton to chief merchandising officer for U.S. stores, effective immediately. Mac Naughton will oversee all merchandise categories across more than 3,700 stores in the U.S. business. He joined the company in 2009 as chief merchandising officer for Walmart Canada, and was later named executive vice-president of merchandising for Walmart U.S. He will continue to report to Bill Simon, Walmart U.S. president and CEO.

UFA, the Calgary-based agro co-op and retailer, has begun making changes in its senior management team. Richard MacMillan, senior vp of shared services, and Jeff Urquhart, director of real estate, environment, health and safety, are no longer with UFA. According to an internal memo, more changes will occur in coming weeks “to align our structure with our priorities for the next 12 to 24 months.”

Woodbridge, Ont.-based Royal Group has appointed three new members to its management team for its Building Products division. Adrien Pilon has been named general manager of Distribution. He has assumed responsibility for Royal’s Boncor and Residentiel businesses. Prior to joining Royal Group, he was vp and general manager with Emco Corporation … Peter Orebaugh is now business director of Royal Outdoor Products. He assumes responsibility for Royal Group’s Outdoor Products Division. Orebaugh was most recently vp at First Florida Companies, a private equity firm … Doug Kissick has been appointed marketing director for Building Products & Outdoor Products. He has served in senior marketing roles at Owens Corning, BPB Gypsum (Saint Gobain) and USG.

At forest products company Tembec, John Valley, executive vice-president, business development and corporate affairs, will retire effective Jan. 31. An industry veteran, Valley joined Tembec in late 2005.

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ECONOMIC INDICATORS

Consumer prices rose 2.4% in the 12 months to December, following the 2.0% increase posted in November. The 0.4 percentage point gain was mainly a result of higher gasoline prices. Between December 2009 and December 2010, gasoline prices increased 13.0%. Excluding gasoline, the Consumer Price Index rose 1.8% in December, identical to the increase recorded in November. Overall, energy prices rose 10.5% during the 12 months to December. (Stats Canada)

Retail sales increased 1.3% to $37.3 billion in November, reflecting growth at most store types. This marks the sixth consecutive mnthly rise in sales and was the largest increase since March 2010. Gains were reported in eight of 11 sub-sectors representing roughly 90% of total sales. In dollar terms, the largest increase was a 2.7% rise in sales at motor vehicle and parts dealers. (Stats Canada)

Sales in the U.S. of new single-family homes in December reached 329,000 at a seasonally adjusted annual rate, 17.5% above the revised November level, but only 7.6% below their year-ago level. New housing stock fell to 6.9 months at the current sales rate, the lowest since April. ( U.S. Commerce Dept.)

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May 10-12
Las Vegas, Nevada.

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OVERHEARD…

“The message is, ‘Anybody who can deliver opening price point [goods] for us will become a vendor – anybody who can’t, can leave.’ ” —A longtime Walmart supplier, quoted in the New York Post regarding the retailer’s renewed efforts to offer the lowest prices, with the subsequent pressure that brings to bear on vendors.

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IN THIS ISSUE

• Big box insights await dealers at LBMAOs buying show
• Some good news at Builders Show
• Home Hardware launches corporate wellness program
• Retail shows signs of recovery world-wide
• PLUS: CanWel lists Ainsworth, PrimeSource to carry Azek, Home Hardware hosts contractors, Target name challenged, Lafarge introduces website, U.S. housing starts drop, Walmart enters Africa —and more!

____________________________________

A new magazine for home improvement retailers

HARDLINES Home Improvement Quarterly is the new print trade journal for decision makers in home improvement retail. Four times a year dealers, buyers and executives across Canada will receive the latest news, information and research to help you make the decisions that will build your sales and increase your profits. To ensure you receive your personal copy of HHIQ, click here. If you are an advertiser looking for an outstanding vehicle to deliver your message to the retail decision m

akers, , well-researched vehicle in which to get your message to the retail decision makers, call Beverly Allen, our Illustrious Publisher: bev@hardlines.ca —Michael)

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DID YOU KNOW…?

… That the third Annual Johns Manville HARDLINES Dealer Conference will host a keynote breakfast session on Feb. 11, at the Canadian Home Improvement Show? “ Boom, Box, Echo: The End of Big Box Retail,” presented by retail consultant Doug Stephens, addresses the massive and rapid shifts in economics, demographics and consumerism that challenge the viability of the big-box business model. Also: Ted Tsiakopoulos , who leads Canada Mortgage and Housing Corp.’s Ontario office, will give his insights into housing trends in the province – and the country . (Register now for the Johns Manville HARDLINES Dealer Conference at the Canadian Home Improvement Show: Click here —Michael)

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SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
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NEWS IN BRIEF

VANCOUVER — Ainsworth Lumber Co. Ltd. has signed a multi-year agreement with CanWelBroadleaf to be its exclusive supplier of the company’s OSB enhanced subfloor product line. Ainsworth Engineered pointSIX Durastrand Flooring will be distributed by CanWelBroadleaf throughout Canada commencing in late January. According to Bob Simko, president of CanWelBroadleaf, the new flooring product is a key component of CanWelBroadleaf’s extensive product line offering.

SCRANTON, Pa. — Azek Building Products, manufacturer of Azek brand trim and Azek Deck, will partner with PrimeSource Building Products Canada for complete national two-step distribution across Canada. The distribution partnership will bring the full range of Azek products to building supply dealers, contractors, and end-users. Mike Gibson, vp Canada for PrimeSource, views this partnership arrangement as a strategic move by both companies, giving Azek nationwide distribution through the dedicated PrimeSource team.

BARRIE, Ont. — Contractors from across Ontario got together last Wednesday at the Barrie Molson Centre for Home Hardware’s “Tough as Nails” contractor trade show. The event featured more than 70 vendors featuring live product demonstrations and fun stuff such as nail-driving contests. More than 1,000 contractors and trades were expected.

RESTON, Va. — Building materials supplier Lafarge North America has introduced a newly redesigned website, www.lafargenorthamerica.com. The bilingual site features advanced navigation, RSS feeds, podcasts and videos. Users ranging from government authorities and design professionals to the average homeowner can obtain educational information on specific building materials and how Lafarge products can be used.

TORONTO — While Target prepares to come north, another retailer claims it owns the rights to the Target name here. Fairweather Ltd. has filed a lawsuit against the U.S. mass merchant, according to Canadian Press. In documents filed in the Federal Court of Canada last week, Fairweather is seeking up to $250 million in damages for alleged trademark infringement, and wants an injunction to prevent the U.S. Target from using the name in Canada. Fairweather claims it has been operating a clothing store in Toronto called “Target Apparel” since 2005.

JOHANNESBURG — Walmart has made a successful bid to acquire a controlling interest in South Africa’s Massmart Holdings. That company operates several wholesale and retail chains, including Game general-merchandise stores, Builders Warehouse and Makro warehouse-club stores. Shareholders agreed to sell 51% for $2.39 billion. Local unions are planning to protest the takeover.

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Make significant and measurable savings with OGC

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PEOPLE ON THE MOVE

Tony Fisher has been named president of Target Canada. he will be responsible for building the team, establishing the headquarters and leading the day-to-day operations of the corporation’s recently announced expansion into Canada. Target has acquired leasehold interests in up to 220 sites from Zellers Inc. and plans to open 100 to 150 Target stores across Canada beginning in 2013. Fisher joined Target in 1999 and most recently held the position of vice-president of merchandise operations. According to a press release, he is well suited for the job because he has “positive energy.”

Royal Group has appointed three new members to its Pipe Systems division, which manufactures and sells pipe and fittings products. Chad Hall was named western regional sales manager for electrical fittings in the United States. Based in Denver, Co., he is a 16-year veteran of the company … Steven Piper was named national specification manager for Canada. He is responsible for product specifications and he will be working with city planners and engineers. Prior to joining Royal Group, Piper was president of Piper Technical Services and a specification engineer for Harrington Corporation … Alice Tourout was named customer service director for North America. Tourout joined the company as customer service director in January and will be responsible for the Pipe division’s North American customer service. She was most recently at Brenntag Inc. Royal Group is a subsidiary of Georgia Gulf Corporation that creates and produces home improvement, building and construction products. 

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ECONOMIC INDICATORS

Investment in non-residential building construction totalled $10.5 billion in the fourth quarter, up 2.0% from the third quarter. It was the third consecutive quarterly increase and largely reflected higher spending on commercial building construction. (Stats Canada)

U.S. building permits in December were 635,000, up 16.7% from November but down 6.8% from December 2009. Housing starts were 529,000 in December 2010, down 4.3% from the prior month and 8.2% below December 2009. ( U.S. Commerce Dept.)

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May 10-12
Las Vegas, Nevada.

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NOTED…

According to CIL Paints, the hottest colour of 2011 is a light, citrus yellow, symbolizing a sense of fun, freedom and positive energy. CIL tells us to “Think lemonade, fizzy sherbet and lemon-lime chiffon – a dramatic move away from the banana yellow that was popular last year.” (My sentiments exactly – and, it’s about time! —y our colour-conscious Editor) “The new yellow is associated with warmth and sunshine,” says Alison Goldman, marketing communications manager for CIL Paints. CIL’s “ Lime Twist” yellow is the brand’s 2011 colour of the year. In the coming year, we’ll see airy light yellow in all facets of home décor, from walls and furniture to accessories, Goldman says.  

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IN THIS ISSUE

• HARDLINES launches print publication for retail decision makers
• Verschuren to leave Home Depot Canada
• Target confirms Canadian entry with Zellers purchase
• Home Furniture show reflects retailer’s upscale shift
• PLUS: Housing starts fall, Stanley B&D sells Delta brand, Richelieu closes acquisition, Sears Canada buys back shares, new RDC for Home Depot —and more!

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Conference Update:

The Third Annual Johns Manville Dealer Conference is part of the upcoming Canadian Home Improvement Show, Feb. 10-11 at the Toronto Congress Centre. We will offer a special All-Industry Breakfast Program for independents on Feb. 10, this year featuring Retail Consultant Doug Stephens and CMHC’s Ted Tsiakopoulos. Sponsored as well by NRHA Canada and OGC. Click here for more info.)

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DID YOU KNOW…?

… that big box sales in Canada fell by 1.5% in 2009? While that’s less than the overall drop the industry suffered that year, the big box got its biggest push from the rapid expansion by Lowe’s in Canada. (Full details on the size of the market, which retail formats are winning, and the strategies of Canada’s top home improvement retailers, all in the 2010-2011 edition of The HARDLINES Home Improvement Retail Report. Click here for more info.)

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SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
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NEWS IN BRIEF

ANDERSON , S.C. — Stanley Black & Decker is selling off its Delta power tool brand to a new company, Delta Power Equipment, which will be headquartered here. The new owners, a syndicate of Taiwan-based manufacturer TOTY, which already makes bench top tools for Black & Decker, Craftsman, and Ryobi, and several U.S. businessmen, will invest $3.6 million in a new facility and create 40 new jobs. It will be headed up by Bryan Whiffen, who was formerly with Techtronic Industries North America.

MONTREAL — Richelieu Hardware Ltd. has closed the acquisition of Outwater Hardware, a specialty and decorative hardware distribution centre in Lincoln Park, N.J. Outwater serves about 18,000 residential and commercial woodworking customers and kitchen, bathroom cabinet and furniture manufacturers in all 50 U.S. states. For Richelieu, the acquisition represents additional sales of more than $15 million on an annualized basis and an immediate contribution to its earnings. This acquisition also strengthens Richelieu’s presence in the United States where it acquired four businesses in 2010, for a total of 23 centres now in the U.S. With seven acquisitions closed since the beginning of 2010 and three more on the way, the company is expected to increase its sales by some $100 million on an annualized basis.

ATLANTA — The Home Depot has launched a program called “First for Pro,” targeted at its pro customers. The world’s largest home improvement retailer is aiming to get more proactive in marketing to contractors and professional customers, who reportedly account for one-third of Home Depot’s sales but spend less than $5,000 per year. The program includes better customer service, improved opening hours, designated parking spaces and a simplified return policy.

TORONTO — Sears Canada Inc. has entered into a pre-defined plan with a designated broker to allow for the repurchase of its common shares under its previously announced normal course issuer bid at times when Sears Canada ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules, or otherwise.

SALEM , Ore. — A regional warehouse that will ship to Home Depot stores in Oregon, Washington, Idaho and Montana opened last week. The new facility is Home Depot’s latest Regional Distribution Centre.

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Make significant and measurable savings with OGC

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ECONOMIC INDICATORS

The rate of housing starts in Canada fell to 171,500 units in December, from 198,200 units in November. According to CMHC, the biggest drop was in multiple starts, which were down by 20.1%. Urban single starts fell by 2.6%. (CMHC)

Contractors took out $5.5 billion worth of building permits in November, down 11.2% from October, marking the second consecutive monthly decline. Lower construction intentions, particularly for multi-family dwellings in British Columbia and for commercial buildings in Ontario, were behind the decline. Residential permits nationally fell 7.2% to $3.2 billion. Following two consecutive monthly gains, permits in the non-residential sector fell 16.1% to $2.3 billion in November. The decline came mainly from lower construction intentions in the commercial and institutional components. (Stats Canada)

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OVERHEARD…

“After conducting a session in Chicago, a participant came up to me and said, ‘I’m embarrassed. For the last 90 minutes you told me everything that I know, and you also told me everything that I don’t do with what I know.’ She realized she knows her business well enough to succeed, yet she also realized that she didn’t do what was required to move from knowledge to implementation. We all have a broad picture of what our job is all about, but we become lazy, we get side-tracked, we lose focus.

“The beginning of this New Year is an excellent time to ask yourself those questions you dread.  Questions like, ‘How can I translate my knowledge into purposeful action? How can I get myself and my people into high gear (and stay there)?’ Move. Take action. Don’t stagnate. Don’t confuse knowledge with doing.” —Sam Geist, retail consultant, facilitator and author. Kindly excerpted from his latest “QuickBites” newsletter.

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May 10-12
Las Vegas, Nevada

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IN THIS ISSUE

• Home Depot will fine-tune existing stores in 2011
• Home Hardware dealer gets hands on Grey Cup
• Retail brands are point of conflict for vendors
• TSC ramps up to support new wholesale business
• PLUS: Owl gets Maibec, EDRA gets Lowe’s, Taymor gets Wilkinson, Sears gets online movies, RONA gets Don Park, Christmas shoppers get online —and more!

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DID YOU KNOW…?

… that big box sales in Canada fell by 1.5% in 2009? While that’s less than the overall drop the industry suffered that year, the big box got its biggest push from the rapid expansion by Lowe’s in Canada. (Full details on the size of the market, which retail formats are winning, and the strategies of Canada’s top home improvement retailers, all in the 2010-2011 edition of The HARDLINES Home Improvement Retail Report. Click here for more info.)

____________________________________

SYLVANIA dimmable LED retrofit lamps provide energy savings, long life, reliability and sustainability.
____________________________________

NEWS IN BRIEF

ST-ROMUALD, Que. — Ontario building materials distributor Owl Distribution Inc. has become the exclusive distributor of maibec exterior sidings for Ontario. “Owl’s extensive know-how in providing dealers with engineered wood product job lot orders provides a solid base for the addition of maibec sidings” says Charles Delisle, vice-president, sales at Maibec Inc. For more information, contact Philippe Caissy, sales manager – exterior sidings, at 1-800-363-1930, or philippe.caissy@maibec.com, or contact Owl Distribution 1-800-265-1985, or sales@owldistribution.com.

Grand Rapids, Mich. — Knape & Vogt, the maker of builders’ hardware and storage products, has acquired Richmond, Ill.-based John Sterling Corporation, a manufacturer, and marketer of functional and decorative home storage and organization products. Product lines include closet, shelving, and garage organization hardware systems, as well as decorative shelving. However, it’s John Sterling’s door hardware business that will bring a new hardware category to KV. John Sterling, owner and president of John Sterling Corporation, the third generation family member to lead the organization, has announced plans to retire sometime in the coming year.

COLOGNE, Germany — EDRA, the European DIY Retail Association, has announced that Lowe’s Cos., the American home improvement chain, will become a member of EDRA effective Feb. 1. Lowe’s operates 1,725 home improvement stores across the United States, Canada and Mexico and reported sales of $47.2 billion in 2009. Lowe’s is the first North American member of EDRA’s Global Home Improvement Network. EDRA now has 29 members representing a total of 89 home centre companies (excluding parent companies) operating in 48 countries. (EDRA still seeks a major home centre chain in Canada to join its ranks. If interested, call me! —Michael)

BOUCHERVILLE , Que. — RONA inc. closed the acquisition, through its subsidiary Noble, of the assets of Don Park Limited Partnership. The HVAC distributor operates 14 branches, three manufacturing facilities and one distribution centre in Ontario. Don Park has more than $90 million in sales and 400 employees.

NEW YORK — Ikea has stopped selling incandescent light bulbs in its stores in the U.S. The move follows a phase-out of incandescent lights from the stores’ shelves beginning last August.

ISSAQUAH, Wash. — Costco Wholesale Corp. had net sales of $9.19 billion in December, an increase of 11% from $8.26 billion a year earlier. For the 18-week year-to-date period, net sales reached $29.78 billion, up 11% from $26.83 billion. Same-store sales for December were up 6% and up 7% for the year to date.

CHANDLER, Ariz. — The 31st Annual Meeting and Conference of the Worldwide DIY Council will be held May 9, 2011 at the Bellagio Hotel in Las Vegas. The event will feature Tom Barfell, director, international sales and category development at Do It Best Corp.; and John Herbert, general secretary of EDRA – the European DIY Retail Association, based in Cologne, Germany. Membership in the Worldwide DIY Council is not required to attend the conference. For more info, contact: Don Droesch, executive secretary, Worldwide DIY Council: ddroesch@cox.net.

HOFFMAN ESTATES, Ill. — Sears in the U.S. has launched an online movie store to compete with Netflix. The site, called Alphaline Entertainment, offers movies for sale and rent in downloadable format.

NEW YORK — Shoppers increased their purchases online considerably over the past holiday season. According to a survey by MasterCard, spending between Oct. 31 and Dec. 11 was up by 13.5% over the previous year. Apparel sales were up 9.8% and electronics sales were up 0.4%.

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Make significant and measurable savings with OGC

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PEOPLE ON THE MOVE

Pat Wilkinson has joined Taymor Industries as vice-president of marketing for the Delta, B.C. -based bath accessories and builders’ hardware company. Previously, she had spent a year at Zellers as vp marketing; before that she spent many years at The Home Depot Canada, most recently as senior director, CRM and multicultural marketing.(604-540-9525 )

Heather Janisse has joined Shnier, Gesco L.P., leading the national account department in the position of national account sales manager. Formerly with Scotts Canada Ltd., she brings to Shnier experience in the national accounts area with a background in operations, administration, merchandising, and sales management. Kerry Byam and Marcel Bedard will report to Janisse, who will in turn report to Paul Green, director of sales. The company’s goal is to become a more prominent player in the national account area inclusive of merchandising groups, lumber and building material accounts (including getting listed recently with The Home Depot Canada). (905-789-3780; hjanisse@gesco.ca)

At Sears in the U.S., Deidra Cheels Merriwether has been named president of the retail services group. She has been with Sears since 2001, most recently as sr. vp of procurement and finance. She replaces James Haworth, who’s left the company. Merriwether will be in charge of retail operations at all Kmart and Sears stores.

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ECONOMIC INDICATORS

The sale price for existing homes in Canada fell 0.4% in October, following a drop in September. The Composite House Price index indicated, however, that prices were up 6% from the same month a year earlier. (Teranet-National Bank)

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NOTED …

Our latest online poll asked you, “Is RONA’s takeover of TruServ good for the industry?” Guess what? Exactly half of you think positively of the deal. One-quarter of respondents said, “ Yes, it will be good for the industry,” while another 25% indicated that “It could be, if RONA keeps the True Value banner.” Nineteen percent said the sale of TruServ to RONA causes concern that independents have lost another option for hardlines sourcing. Only 13% expressed their disfavour with the deal, saying “No, it won’t be good.” (To participate in our newest online poll, “Is Orgill’s deal with Castle going to offer a viable hardlines option for independents in Canada?” Click here to cast your vote in our Members’ Only Section of our amazing new website!)

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In This Issue

• Castle strengthens hardlines supply with Orgill, TSC deals
• Home Depot launches online how-to community
• CanWel, retailers honoured at NHS-co-sponsored event
• PLUS: CanSave announces Expo, RONA adopts stakeholder policy, Central’s Smith honoured, Target hires social worker, Walmart pulls out of Russia, UK show adds programs, retail sales flat —and more!!

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NEWS IN BRIEF

BARRIE, Ont. — Can-Save has announced the date for its 20th anniversary summer Expo. The building materials supplier’s event will take place June 2, 2011 at the Barrie Molson Centre in Barrie, Ont. The day-long buying show will be rounded out with a series of “ Business Opportunities” seminars.

BOUCHERVILLE, Que. — RONA’s board of directors has adopted, after consultation with industry experts and its major shareholders, a new policy designed to facilitate continuous improvement in its governance and compensation practices as well as enhanced communication with stakeholders.

An overview of its governance and compensation policies is now available on the company website and will proactively communicate to stakeholders any significant changes. Stakeholders will now be able to submit suggestions to the board through the corporate secretary’s office.

LOS ANGELES — A Target store in nearby Compton has installed a social worker to help store staff deal with personal problems. Her duties can range from lending a sympathetic ear to an employee suffering from depression to providing financial advice and helping fill out government forms. As Target expands into urban locations such as this one, it is looking for ways to help staff in these communities to cope with the travails of inner city life, such as health care issues and gangs.

BENTONVILLE, Ark. — Wal-Mart Stores has announced that it will close its Moscow office, although it remains interested in entering the Russian market through an acquisition.

BIRMINGHAM , UK — Next February’s Totally Shows at the NEC will feature a “Retail Tool Box”.  The ‘Retail Tool Box’ will be situated at the heart of the show, and will offer visitors an easy spot to stop for refreshments whilst taking a look at the shows’ offering of new products. It will also include a small presentation area, set up with a large plasma screen that will either be used by live presenters, or will run product demo tapes from exhibitors when there is not a live demonstration or presentation in progress. The area will be hosted by TV personality Roger Bisby, who will act as a ringmaster for product demonstrations.

COLOGNE, Germany — EDRA, the European Association of DIY Retailers, has added another member association. COMEOS, the Belgium DIY Association (BDA) became a member of EDRA effective Jan. 1. Comeos represents 18 retail sectors, including DIY and garden, food, fashion and toys. EDRA now has six European DIY associations and 22 direct home centres as members with a total of 86 home companies in Europe and six members of the EDRA Global Improvement Network operating in 45 countries.

BOUCHERVILLE, Que. — RONA inc. has initiated a new dividend policy for its shareholders. The policy includes a cash dividend payable to holders of RONA’s common shares on a semi-annual basis. On Dec. 7, the RONA board declared the first payment under the new policy, a $0.07-per-share dividend payable on March 25, 2011 to holders of record.

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PEOPLE ON THE MOVE

Steve Smith, president and CEO of Central Home Improvement Warehouse, which is a long-time member of Independent Lumber Dealers Co–operative, was honoured by St. Francis Xavier University recently. Smith was given an honorary Doctorate in recognition of the time he has devoted to the university over the years, and for his fundraising efforts on its behalf.

Serge Vézina , formerly a senior director at RONA inc., has moved over to help out with the retailer’s new TruServ Canada business unit. He is now director, sales and business development, East Canada for TruServ Canada Inc. (450-971-6115; svezina@truserv.ca)

Bernie Bosch, vp retail sales and marketing at Wells Lamont Canada, is no longer with the work glove maker following a re-organization there that puts the Canadian retail business under the aegis of WL’s related industrial company, Jomac Canada. Although Bosch herself was in many ways the face of the company to its leading retail customers, Victor LaPenna, general manager of Jomac Canada Inc., says, “Very little has changed as far as the customer is concerned,” as the existing WL sales team will remain in place, now reporting to LaPenna. He further notes that product continues to be shipped from the Jomac warehouse in Stanstead, Que., as in the past. (1-800-567-2765)

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IN MEMORIAM

With great sadness we announce the passing of Murray Armstrong, president, Ace Hardware International. A true gentleman and a gentle soul as well, he was instrumental in opening up Ace’s Asian distribution business. Murray was also a long-time supporter of HARDLINES, perhaps best remembered here for his presentation at our Conference three years ago.

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ECONOMIC INDICATORS

Retail sales increased for the fifth consecutive month in October, rising 0.8% in current dollars to $36.6 billion. The increase was led by the rising cost of gasoline. Excluding sales at gas stations, retail sales edged down 0.1%. The furniture and home furnishing store segment was up 2.2%, due to a 4.6% increase by home furnishing stores. (Stats Canada)

Wholesale sales remained unchanged at $44.9 billion in October, after advancing 0.7% in September. (Stats Canada)

Consumer prices rose 2.0% in the 12 months to November, following a 2.4% increase in October. The 0.4 percentage point decrease can be largely attributed to a slowdown in the growth rate of energy and food prices, and a decline in clothing prices. (Stats Canada)

Building permits in the U.S. in November were 530,000, down 4.0% from October and below 14.7% from November 2009. Housing starts were 555,000, up 3.9% from October, but down 5.8% from November 2009. (U.S. Commerce Dept.)

U.S. retail sales in November 2010 were $378.7 billion, an increase of 0.8% from October and an increase of 7.7% from November 2009. Excluding autos, retail sales were $311.9 billion, up 1.2% from last month and up 6.7% from last year. (U.S. Commerce Dept.)

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