• RONA and Leafs seal sports sponsorship deal
• Lowe’s lays out Canadian growth, barely
• Message to Harper government: extend the HRTC
• Lowe’s reveals store productivity strategies
• RONA gets serious about certified wood
• PLUS: new BMR store, Ikea year end, Hudson’s Bay may go public, Walmart goes high efficiency, retail sales drop — and more!
• Our Classified Ads
  

“A powerful idea communicates some of its strength to him who challenges it.” —Marcel Proust (French novelist and critic, 1871-1922)  

RONA president and CEO Robert Dutton and Toronto Maple Leafs president and general manager Brian Burke announced that their organizations would team up to refurbish a city-owned arena in Whitby. The announcement marks the beginning of RONA’s community-building initiative with MLSE, adding another dimension to the new partnership. RONA will play an active role in the Maple Leafs Hard Hats for Hockey program, which was launched three years ago by MLSE. As part of the program, RONA will contribute labour and materials while MLSE will contribute cash.

The Maple Leafs Hard Hats for Hockey program has already invested $400,000 in eight rink refurbishment projects in Toronto.

Top.

Lowe’s will open a total of 10 stores outside of the U.S. in 2010, but its officials spent far more time talking about their company’s recent joint-venture agreement with Woolworths in Australia, in which Lowe’s is a one-third partner and will invest $100 million per year over the next four to five years to help Woolworths open up to 150 big-box stores in Australia and New Zealand.

The company’s officers also spoke about Lowe’s opening its first two stores in Monterrey, Mexico, by next January. The first store will include 75,000 square feet of indoor selling space, a 25,000-square-foot drive through lumberyard and a 10,000-square-foot garden center. Lowe’s received 4,000 job applicants at that store.

Top.

Renovation activity has proved a real antidote to falling housing starts, with residential renovations and repairs up 1.7% in the second quarter, according to Stats Canada. David Campbell, president of the CRBSC and president of the Ontario Lumber and Building Materials Association, whose signature appears at the bottom of the letter, says the tax credit has been effective “simply because it’s a low-cost incentive package and it’s done a good job.”

He also thinks there’s lots of life left in the program. “The average consumer took a while to understand it, so let’s get the full impact of the tax credit by extending it.”

Top

• The retailer is adding 125 commercial specialists who will work outside of its stores and will focus on signing new accounts with builders and contractors. Lowe’s wants to increase its commercial sales to 30% of its revenue by 2014, from 25% today.

•A flexible fulfillment program that will streamline how Lowe’s fills orders at its stores and online is expected to drive up to $200 million in incremental sales.

•Lowe’s is currently testing a model that would centralize project management with its customers, as part of an effort to improve efficiencies of installed sales, which has been one of its weakest sectors for comp-store growth.

•Later this year, Lowe’s will relaunch a revamped version of its Web site, with the goal of generating $250 million in online transactions annually.

•Next year, Lowe’s intends to roll out a repair service that will manage repairs of appliances and power equipment for its customers. By taking the manufacturer out of the repair process, Lowe’s hopes to establish a closer link to its customers.

Top

So far, less than 5% of the softwood lumber currently stocked is from FSC certified forests. Hence, the new campaign to sell FSC-certified product through following five stores: in Rosemere (a Réno-Dépôt) and Mascouche, Que.; the two stores in London, Ont., and one in Barrie, Ont.

But the goal is to reach 25% FSC certified product in all its stores before the end of 2012, depending on availability and competitive pricing. By the end of 2010, the company hopes that 100% of the SPF softwood — spruce, pine and fir — for sale in its corporate and franchise stores will be from certified forests. RONA has also established a program to increase the proportion of softwood lumber from certified forests for sale in its affiliate dealers to reach 90% before the end of 2011.

RONA is supporting the push to certified wood with new signage in its stores across Canada.

Top

We look forward to seeing you all at the Conference and the Outstanding Retailer Awards Dinner! —Michael

DID YOU KNOW…

  SHERBROOKE, Que. — The Létourneau family recently opened their second renovation centre. Representing an investment of more than $3 million, the retail floor sales area is 10,000 square feet, supported by 130,000-square-foot lumberyard and warehouses that total 15,000 square feet. Twenty-five new positions have been created. The grand opening coincides with the 35th anniversary of the Létourneau family’s first renovation centre in nearby Waterville. The retailer has been flying the BMR banner since 1996, as part of a buying group that represents more than 180 members in Québec, Ontario and the Maritimes.

TORONTO — Hudson’s Bay Company may go public again. Speaking recently at a conference of the International Council of Shopping Centres, Richard Baker, governor of NRDC Equity Partners, which bought Canada’s oldest company last year, admitted he may list the company on the Toronto Stock Exchange as early as 2011. He also said that increased sales have come thanks to more emphasis on women’s fashions and accessories, at the expense of home products and men’s wear.

TORONTO — Eighteen Canadian retailers and sponsors in the Air Miles Reward Program have joined forces to participate in My Planet. This initiative rewards consumers for choosing eco-friendly products and services. Air Miles Collectors will earn bonus reward miles when they purchase My Planet-designated products and services available at 2,400 Air Miles sponsor stores across Canada. The Air Miles participants in our sector are TIM-BR MART and RONA.

TORONTO — A team of 20 Canadian Tire employees, dealers, family and friends will climb Mount Kilimanjaro next month in an effort to raise funds for Canadian Tire Jumpstart, a community-based program devoted to helping kids in financial need participate in organized sports and recreation. Each participant will pay for their own trip and raise additional funds for the program. The team sets out Oct. 12. Many of the participants have organized events at local Canadian Tire stores to help raise money and Mark’s Work Wearhouse is supporting the climb by outfitting the entire Kilimanjaro team. The target is $200,000, with $173,209 already raised.

MISSISSAUGA, Ont. — Walmart Canada opens its first high-efficiency (HE) prototype in Waterdown, Ont. The Supercentre is expected to use 30% less energy using heating, cooling and refrigeration systems that will conserve energy and reduce greenhouse gas emissions. The high-efficiency prototype will become the norm for all future Walmart stores nationwide. The Waterdown store will also be Walmart Canada’s first high waste-diversion store.

WATERLOO, Ont. — Expansion of its new product design and marketing teams, expansion into South and Central America and Germany, and the addition of product lines have necessitated a move to larger facilities by Maxtech Consumer Products Limited. The new address is: 602 Colby Drive, Waterloo, Ont. N2V 1A2. Phone remains the same: 519-885-5336. In addition, Maxtech Manufacturing, formerly Maxtech Consumer Products’ parent company before it was spun off three years ago, is restructuring its operations. A victim of the declining auto industry, Maxtech Manufacturing has been granted protection under the Companies’ Creditors Arrangement Act and is winding down its Waterloo, Ont., operations while growing its Quebec facility. (Maxtech Consumer Products Ltd is unaffected by the restructuring.)

BURLINGTON, Ont. — Ikea managed to increase its sales worldwide by 1.4% to €21.5 billion ($33.9 billion) in its 2009 fiscal year, which ended Aug. 31. Despite the challenging international economic situation, the company opened 15 new stores, relocated three more, built a distribution centre and invested in several large shopping centre projects. Ikea also entered its 25th market in fiscal 2009 with a new store in Dublin, Ireland.

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

NOTED…

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• Anna Olsen, innovations at Home Hardware market
• Home dealers show increased optimism at latest market
• RONA launches recycled paint outside of Quebec
• Lowe’s will use Canadian experience to expand Down Under
• Home Depot will carry Martha Stewart brand
• PLUS: RONA on TV, Wal-Mart’s latest strategy, RONA’s newest store, Home Depot considers more expansion, Grainger buys Japanese company, CPI up, or maybe it’s down — and more!
  

ST. JACOBS, Ont. — Home Hardware Stores featured a number of new products and programs at its latest dealer market. The event, marking Home’s 45 years in existence, showcased the latest in the dealer-owned wholesaler’s innovations to operate, merchandise and promote its dealers’ business.

Celebrity chef Anna Olsen, who has partnered with Home Hardware Stores since March as the company’s kitchen and consultant and representative for its kitchenwares department, was on hand at the market for the unveiling of a fall sweepstakes promotion. Called the “Home Hardware $50,000 Dream Kitchen Makeover,” the marketing will rely on Olsen’s celebrity status to be the “face” of this contest. The promotion is aimed at showcasing Home Hardware’s kitchen and housewares category as a destination for entertaining.

 Innovations expanded to technology, as this market showcased a new palm pilot that enables dealers to easily scan products and manage inventory. In-store enhancements included fresh ways to merchandise lumber and building materials to suit smaller-store environments. New, wide endcaps that showcase LBM products was one of the standout examples.

ST. JACOBS, Ont. — Home Hardware owners attending the company’s recent dealer market brought with them an overall sense of optimism about the remainder of the year.

Hardlines spoke with lots of dealers at the show and many of them, especially in Western Canada, are feeling the brunt of the slowdown, but the repair and  renovation market, especially in the smaller communities in which Home Hardware dominates, is shoring up business and keeping many dealers positive about the fall season ahead.

“We’re getting through the doom and gloom headlines that persisted before the last market,” said Bill Ferguson, dealer support manager for Home Hardware Stores. “Homeowners continue to consider the home a key investment. Even if they aren’t undertaking reno projects, these have been replaced by work projects.”

Top.

BOUCHERVILLE, Que. — RONA Inc. is stepping up its commitment to being eco-responsible with the addition of a recycled latex paint to its range of RONA ECO products. The new paint line features a selection of 16 interior colours plus a floor paint.

The new line is made in Quebec by Peintures récupérées du Québec (Boomerang Paints), which has been involved with RONA for more than a decade managing a recycled paint program for the company, and sold under the Boomerang Paint name. Made from 90% recycled paint, the company claims that its manufacturing process generates only a quarter of the greenhouse gases normally produced by other paints.

Products seeking to carry the RONA ECO label must demonstrate a lower environmental impact throughout its entire life cycle, subject to review by the International Chair in Life Cycle Assessment at the École Polytechnique of Université de Montréal. More than 300 RONA ECO products have been introduced since the label was launched in 2008.

The program has now been extended to stores in Halifax and Ontario, and more than two million kilograms of paint have been collected by RONA dealers for recycling and reprocessing. RONA is currently working on the introduction of paint recovery programs in the rest of Canada.

More colours will be added to the line over the next few months.

Top

The equivalent of about $20 billion in home-improvement related products are sold in Australia annually. The deal with Woolworth’s would include a $73.6 million takeover of Dank’s, Australia’s second-largest hardware distributor. Lowe’s and Woolworths have a target to secure more than 150 store sites, all greater than 100,000 square feet, over the next five years, with the first store expected to open in late 2011.  Woolworths has already secured entitlement to 12 sites and is currently in final  negotiations to secure a further 15 sites for greenfield development.

 Lowe’s owns one-third of the new company, which is being headed by Don Stallings, formerly president of Lowe’s Canadian division. The new chain will have a separate name of its own that has yet to be announced.

Top

Home Depot merchants are working with Martha Stewart Living Omnimedia (which is the licensor) to develop a line of branded home décor products and other lines that will be introduced over the course of next year. Products will be available at The Home Depot stores across Canada and at www.homedepot.ca.

“Our partnership with Martha Stewart will allow us to continue to deliver new and unique product design at affordable prices,” says Gino DiGioacchino, vice-president of merchandising, Home Depot Canada. “Both organizations have been the go-to destination for consumers looking for inspiration and project know-how. Together we can continue to enhance our customers’ experience.”

Top

DID YOU KNOW…

CALGARY — “Ma Maison RONA,” a popular home reno reality program in Quebec for the past seven years, is getting an anglophone treatment with the development of “My RONA Home.” Ten 60-minute episodes are being produced here, featuring two families in a competition to see who can best design, construct and decorate a brand new home in just 30 hours. The winning family will win a furnished home valued at $400,000. The homes will conform to the new LEED certification (Leadership in Energy and Environmental Design).

NEW YORK — Frank Blake, Home Depot’s chairman and chief executive, expressed interest in opportunities to expand its international presence at a recent investor conference. “There are opportunities as our Mexican business matures… to take that business model elsewhere in Latin and South America,” Blake said at the Goldman Sachs Global Retail Conference held here. Home Depot, which has more than 2,200 retail stores in the United States, Puerto Rico, U.S. Virgin Islands and Guam, made a failed foray into Chile a more than a dozen years ago, but expanded successfully into Canada in 1994 and Mexico in 2001. It also operates about a dozen stores in China.

CHICAGO — Grainger, the North American distributor of facilities maintenance products, has purchased a 53% share in a Japanese company, MonotaRO Co., Ltd. The deal involved the purchase of 380,000 shares at a price equivalent to $11.11 per common share. Established in 2000 in Osaka, MonotaRO is a direct marketer of maintenance, repair and operating (MRO) supplies to businesses in the Japanese MRO market, the second largest industrial market in the world. The company offers more than 110,000 products to more than 320,000 customers. In 2008, MonotaRO had revenues of $136M and operating earnings of $11 million.

MINNEAPOLIS — Zareba Systems had net sales for fiscal 2009, ended June 30, of $32.2 million, down from $34.6 million for the prior year. Net income was $1.0 million, from a net loss of $5.2 million in fiscal 2008. The company has also announced it has terminated its proposed transaction that would end the registration of its common stock under the federal securities laws, and the company has withdrawn its related Schedule 13E-3 filed with the Securities and Exchange Commission. The company has decided to explore other strategic alternatives to enhance shareholder value.

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• Huggins to lead Lowe’s in Canada
• RONA hires new head of dealer development
• TIM-BR MART holds Junior Hockey challenge
• PLUS: Sears Canada, JELD-WEN, Ace, Mirage, B&Q, housing starts — and more!
  

Huggins has more than 25 years of retail experience, including 10 years with the Hechinger Company, and tenures at Office Depot and Jo-Ann Fabrics. He is one of the few remaining Americans on the Lowe’s Canada team. (Fellow American, vice-president merchandising Ben Mauceri, returned to Lowe’s headquarters in Mooresville, N.C., earlier this year.)

“Lowe’s steady growth and success in Canada have been the result of strong management and an outstanding team,” said Larry D. Stone, Lowe’s president and COO in a release. “We appreciate the leadership Don provided as we opened stores in the Greater Toronto Area. We are pleased to maintain that level of experience and leadership under the direction of Alan Huggins as we continue to grow our business in Canada.”

Top.

Throughout the past year and a half, the dealer development team reported directly to Dutton, a role that found him traveling across the country for much of the time. The senior status of Meunier’s position reflects RONA’s continuing emphasis on the recruitment function.

“The arrival of Jean-Luc certainly fits that — showing an ongoing commitment,” says Michele Roy, spokesperson for RONA. “And,” she adds, “Robert Dutton is still very much involved.”

Top

Team members must be from seven to 17 years of age; the designated team entrant must be age-of-majority in their province or territory of residence. The contest runs until midnight EST on Nov. 21. Full Challenge details are at timbrtube.ca.

Further details of the TIM-BR MART World Junior Hockey Video Challenge are available to customers at participating TIM-BR MART store locations, where a “ World Juniors In-Store Champion” has been appointed to answer questions.

TIM-BR MART, which represents more than 740 dealer locations across Canada, is a major sponsor of the 2010 IIHF World Junior Championship, which has been won by Team Canada for the past five years.

Top

TORONTO — Sears Canada has won the “ENERGY STAR Retailer of the Year” award from Natural Resources Canada for 2009. This is the second year in a row the company has received this award for excellence in promoting energy-efficient products and the third time overall, having won the award in its inaugural year in 2003.

SAINT-GEORGES, Que. — Mirage, the hardwood floor maker, has launched its “Celebrate Quality with Mirage” event featuring an extensive promotional campaign. The campaign, which runs throughout North America until March 1, 2010, includes a contest that will award up to $100,000 in Mirage flooring products and a rebate from the manufacturer. For full details and rules on the Celebrate Mirage Quality event, click here www.miragefloors.com.

LONDON — British DIY retailer B&Q has revealed it will buy only tropical hardwood plywood that has been certified by the Forest Stewardship Council. The company, which claims to have achieved a “global first,” will strike a chord with both DIYers and commercial customers seeking to meet ever-more stringent sustainable practices. B&Q’s tropical hardwood plywood is manufactured in Acre, in western Brazil.

OAK BROOK, Ill. — Ace Hardware tapped into the online publishing service Associated Content to help execute a Web-based marketing campaign and drive search engine optimization and online visibility for Labor Day weekend. Targeting adult consumers aged 25 to 54 who were considering home repair and maintenance projects over the holiday, the campaign included original articles about gardening, home maintenance and decorating written by Associated’s roster of contributors.

MOORESVILLE , N.C. — Building has begun on a new Lowe’s store in Rossville, N.Y., after several years of delays. The new store is expected to open later next year and will create about 175 jobs, a spokeswoman for Lowe’s told the Staten Island Advance. Like other companies, Lowe’s has scaled back expansion plans nationwide. The store expects to open about half the number of new locations in 2010 (35-45 stores) that it did in 2009. About 66 new stores are expected to open by year’s end. Last month, Lowe’s reported that its profits fell for the fourth straight quarter, a 19% drop.

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

NOTED…

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• RONA named sponsor of Toronto Maple Leafs
• New TIM-BR MART program will target hardware stores
• As time runs out on HRTC, dealers get innovative
• WRLA offers NASCAR outing to members
• Canadians check out Orgill’s fall market
• PLUS: Castle golf raises money, housing starts to rebound, Wal-Mart goes paperless, RONA celebrates 70th, CanWel gets new distribution deal, Delta expands its commercial line and — you guessed it — much more!
  

“What a man knows he has by experience; But what a man is precedes experience.” — Christopher Fry (English playwright, 1907-2005)

“We are thrilled to associate our winning RONA team with these important Canadian sports teams … Our sports sponsorships and community initiatives allow us to promote Canadian values of fair play, social responsibility and perseverance,” says Robert Dutton, president and CEO of RONA.

From a marketing perspective, RONA’s new partnership with MLSE will boost the retailer’s brand exposure in the highly-competitive Ontario market, where RONA has 180 stores and 6,600 employees.

RONA has been a sponsor of Toronto FC since 2007 as official and exclusive home improvement partner. In Spring 2009, RONA extended the arrangement for another two years to continue its exclusive game and permanent signage at BMO Field. RONA is already a national partner of the Vancouver 2010 Olympic and Paralympic Games, as well as a national partner of the Canadian Olympic and Paralympic Teams through the London 2012 Summer Games.

Top.

The result, he says, will be to drive more hardware sales through existing TIM-BR MART building supply dealers, but he also envisions targeting hardware dealers. “We’re looking forward to taking advantage of recruiting hardware stores, as well.”

“We expect to beef up the troops,” he notes, on the dealer recruitment side, as well, especially outside of Quebec. Already, in that province, where TIM-BR MART is managing the Ace banner, it has converted about 100 dealers to Ace. Like a large number of independents in Canada, both Ace and TIM-BR MART rely on CanWel Hardware for the bulk of their hardlines needs.

Will TIM-BR MART Hardware conflict with the Ace initiative? “Ace is a branding opportunity that we will still leverage in Canada,” says Martin. “It’s a brand we feel strongly about.” The choice to offer a dealer either Ace or TIM-BR MART Hardware as a hardware solution will be determined on a case-by-case basis, he adds.

Top

Castle Building Centres has taken a number of steps to maximize the benefits of the HRTC, including in-store signage and a direct link from the Castle website to Canada Revenue Agency’s HRTC information page. “We’re trying to get people to spend as much as possible,” says James Jones, vice-president national marketing for Castle. “We think it’s having some impact,” he adds, even though he believes people are still being cautious about spending.

Top

For more information,click here.

Top 

Among those prospects were a number of Canadians, including several members of Castle Building Centres Group. Also on hand were some of Orgill’s existing customers (it has a number of test stores it has been supplying for more than two years up here), including Preston Hardware, the single-store dealer from Ottawa. We’ve seen more Canadians at this show than ever before,” says Jerry Cardwell, vice-president of Orgill. In fact, the company’s International division was tied this year for highest turnout ever. “Despite the conditions in rest of world such as the swine flu scare, the political unrest in Honduras and general turmoil in world, they continue to turn up at the Market.”

Central to this year’s market was a full-blown, 18,000-square-foot model store on the show floor. Dubbed “River City Hardware,” it showcased the distributor’s complete array of products, programs and merchandising.

Top

TORONTO — RONA turns 70 this year and one way the giant home improvement retailer is celebrating is with an urban clean up. Last week, hundreds of RONA employees invaded Dundas Square in the early hours brandishing big rakes, brooms, shovels and recycling bins, birthday gifts for early-bird Torontonians. More than 1,600 people were given free rakes, brooms and recycling bins. Click here to watch the clip.

TORONTO — Masco Canada has introduced a new range of commercial products under its Delta Commercial brand. They include electronic faucets featuring Delta’s newest hands-free technology and a flush valve that will help homeowners qualify for LEED points. Delta Commercial recently launched a new website to assist commercial users: www.deltacommercialfaucets.com features up-to-date information about Delta’s Commercial offerings along with full product listings.

BIRMINGHAM, Ala. —The Toledo-based wholesale hardware distributor and industrial supplier Bostwick-Braun Company has agreed to purchase hardware and building materials distributor Moore-Handley, which filed for bankruptcy in July of this year. The acquisition will become part of a new company to be formed by Bostwick-Braun that would continue to operate from Moore-Handley’s Pelham, Ala., warehouse. Under its new owners, Moore-Handley would continue to operate under its current name, while keeping it sales force and operations intact.

ISSAQUAH, Wash. — Costco Wholesale Corp. reported net sales of $5.4 billion for August, flat with the same month a year ago. Net sales for the fourth quarter were down 3% to $21.9 billion, while net sales for the fiscal year were $69.9 billion, a decrease of 2%. Same-store sales for the year were down 4%.

BENTONVILLE, Ark. — Walmart has partnered with MasterCard Worldwide and First Data to create a payroll program that is paperless. The giant retailer’s electronic pay program uses a “Money NetworkMasterCard Paycard” and electronic pay stubs, which are expected to cut down on paper consumption.

ECONOMIC INDICATORS

NOTED…

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• Top retail executives added to Conference lineup
• Superior acquires Specialty Drywall
• Edmonton firm makes offer for Canadian Tire stock
• Lowe’s to enter Australia through joint venture
• Can-Save forges distribution deal with manufactured stone supplier
• PLUS: Ace results, Home Depot DC, RONA optimistic, new home Hardware buyer, Sears Canada results, retail sales up and more!
• Our Classified Ads
  

“There ain’t no cure for the summertime blues.”
— Eddy Cochrane (American rock ’n roll musician, 1938-1960)

When Bob Simko took over Broadleaf Logistics, he did not inherit a well-known brand. Instead, he was charged with managing the direction of an existing company with a brand new name (the former Weyerhaeuser Canada was renamed Broadleaf on Jan. 1, 2008 after new owners took it over). In an industry where price competitiveness has hammered margins like never before, Simko will outline the changing role of two-step distribution.

The Hardlines Conference will feature two varied retail perspectives. Annette Verschuren, president, The Home Depot Canada and Asia, will make her first speaker appearance at the Hardlines Conference in almost a decade. Her global perspective will find a compelling counterpoint in the experiences of Brad Dick, an independent dealer from Portage La Prairie, Man., who joined RONA with two stores in 2004. Dick’s experiences growing his business will provide important insights for retailers and suppliers alike.

The 14th Annual Hardlines Conference will be held Oct. 22-23, 2009 at the Sheraton Toronto Airport Hotel and Conference Centre. For more information on speakers and registration, click here.

Top.

You want value for your money.
More important, you want value for your time.
The Hardlines Conference delivers both.

Today is the last day to register at the early bird rates.

Click here to register

Superior anticipates expanding the SPI architectural facilities to carry the full line of walls and ceilings products and services that Winroc currently provides at its locations. In addition, Superior expects to evaluate adding SPI’s products and services to Winroc’s existing markets and locations.

The deal, valued at approximately $147.3 million, is subject to customary regulatory and commercial closing conditions, including the approval of the Toronto Stock Exchange. It’s expected to close next month. The acquisition is expected to be completed by way of a plan of merger under Pennsylvania law involving Superior, newly created subsidiaries of Superior and SPI.

SPI itself has grown over the past decade, both organically and through acquisitions. The company has completed 22 transactions since 1997.

Top

According to Steve Cain, IRLY’s information systems manager, “This solution has provided us with the tools to deliver products with greater accuracy, efficiency and speed to our rapidly expanding customer base.”

Currently, all of IRLY’s hardware products are loaded on the new system, and the company will have its lumber and building materials added in the fall.

Top

mini-tenders may not be exactly as shown

TORONTO — Canadian Tire Corp. has received an unsolicited “mini-tender” to buy up to one million of Canadian Tire’s Class A non-voting shares. The letter comes from TRC Capital Corp., and the price offered, $54, is almost 5% below the closing price of the shares on the Toronto Stock Exchange on August 19, the day prior to the date of the offer. Canadian Tire has recommending strongly to its shareholders to decline the unsolicited mini-tender offer.

The company has warned shareholders that these mini-tender offers “are widely-disseminated offers to purchase a small percentage of a company’s shares at a price below the current market price which avoid most of the filing, disclosure and procedural requirements applicable to most bids under Canadian securities legislation.” Shareholders are “strongly urged to exercise caution with respect to TRC’s mini-tender offer,” the company says.

According to the U.S. Securities and Exchange Commission, tenders for less than 5% of a company’s shares don’t bring a requirement for the tendering company to disclose information about itself. Nor is it bound to procedures such as agreeing not to engage in fraud or deceptive practices, or to ensure prompt payment for the shares. Likewise, these mini-tenders don’t typically include a premium on the value of the shares, as is the case with the Canadian Tire offer.

TRC Capital is an Edmonton based company. According to its website, TRC is a mergers and acquisitions specialist that assists firms that wish to be sold.

Top 

Woolworth’s operates more than 3,000 stores — including supermarkets, consumer electronics outlets and liquor stores — that generated 49 billion Australian dollars in revenue last year.

Top

“Manufactured stone is very popular in the Canadian marketplace,” adds Clements.

Top

MONTREAL — Cobra Anchors Co. Ltd., a Canadian manufacturer of anchoring products, concrete screws, and plant and picture hooks, has announced a new partnership with Strome Sales Ltd., manufacturing sales representatives. Strome Sales, which has more than 35 years of experience managing national brands in the hardware and industrial channels, will provide sales support and program expansion for Cobra throughout Western Canada. Cobra distributes to more than 9,000 outlets throughout North America and Europe.

BOUCHERVILLE , Que. — Advising that Canadian consumers remain cautious, RONA CFO Claude Guevin expects them nevertheless to start spending more before the year is out, as deadlines loom for government tax incentives, according to an interview with Bloomberg.

OAK BROOK , Ill. — Ace Hardware Corp. is benefiting from homeowners taking on more home-maintenance projects during the U.S. recession. The dealer-owned co-op saw its profit for the three months ended July 4 jump 26.2% to $42.2 million. That gain came despite an 8.6% decline in revenue, to $973.1 million. During the quarter, Ace added 25 new stores and cancelled 53. Through the first six months of its fiscal year, Ace’s sales to its member stores fell 5.7% to $1.8 billion, but its net income rose 28.1% to $56.6 million.

SPECIAL REPORT — With back-to-school shopping underway and the Christmas season looming, more consumers are taking advantage of layaway programs, according to the Associated Press. The programs let shoppers pick out what they like, make regular payments then take their purchase home once the bill is paid off, a practice that many retailers had abandoned. But, a record number of Americans, shut off from credit and short on cash, are relying on Kmart’s layaway program to pay for all of their kids’ school needs, says Tom Aiello, a spokesman for Kmart’s parent, Sears Holdings Corp.

LIVERMORE, Calif. — Activant Solutions Inc., the retail software company, has made a three-year deal with Ace Hardware Corp. to be the exclusive provider of point-of-sale software for Ace’s 4,600 stores. The companies have worked together since 2000, when Ace adopted Activant’s Eagle system that automates sales, inventory and customer orders. “Activant’s ongoing commitment to outstanding support, training and professional services sets us apart from the competition,” says Paul Salsgiver, executive vice-president of Activant Solutions.

MONROE , Ohio — Home Depot has opened a Rapid Deployment Center here to serve some 100 stores in the Midwest. The 657,600-square-foot building was built at a cost of almost $34 million.

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

NOTED…

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• TIM-BR MART increases hardware focus with new buying team
• Canadian Tire gets back to basics in latest quarter
• RONA’s 2Q earnings drop on sluggish housing starts
• RONA unveils specialty paint store
• Canadian Tire renews contract with Debbie Travis
• PLUS: Equity firm buys Armstrong, Costco sales down in July, Wells Lamont relaunches website, Holton joins OGC, Ruffolo leaves Castle, Vernon joins Freud — and more!
• Our Classified Ads
  

“Problems are only opportunities in work clothes.”
— Henry J. Kaiser (American industrialist, 1882-1967)

CALGARY — TIM-BR MART is getting serious about hardware. The giant LBM buying group has created a full hardware buying team, marking a renewed focus on hardware, called TIM-BR MART Hardware.

Working under Randy Martin, vice-president, merchandise for TIM-BR MART, the new category merchant team will develop product assortments, merchandising and selling strategies for the group’s 740 dealers, who collectively account for more than $2 billion in annual purchases. From participating in vendor negotiations and designing planograms to developing advertising and sell-through strategies, the team will also work closely with preferred vendors and the buying group’s Retail Services Division to develop programs.

Martin’s team will work out of the TIM-BR MART Ontario office in Concord, Ont. Bruce Peck (l), who has been with the group for 12 years, will move from being a hardware buyer to become category merchant, electrical and plumbing. Carlo Rossi joins the team as category merchant for paint, décor and seasonal. Rossi’s background includes working at Beaver Lumber, then being part of the launch of Ace in Canada. He was also a buyer at Hudson’s Bay Company.

A category manager for hardware and tools will be announced shortly.

“TIM-BR MART Hardware represents a renewed focus for us on our hardware sourcing. We’ll work on both direct-from-vendor programs for larger members and shipments through our wholesaler partner, CanWel Hardware, for smaller members,” says Martin.

Top.

TORONTO — Canadian Tire Corp., facing softer retail sales due to market conditions and unseasonable weather, suffered a 5.4% drop in sales in its second quarter, to $2.9 billion. Net earnings, however, increased 8.8% compared with the same period last year. According to the company, this growth in earnings year-over-year reflects healthy margins across the retail businesses and lower operating expenses.

“Our focus on maintaining our gross margins and managing our operating expenses has allowed us to deliver modest growth in earnings this quarter, compared to 2008, despite a challenging retail environment,” says Stephen Wetmore, Canadian Tire president and CEO.

The Canadian Tire Retail business saw sales drop 1.0% from the same quarter in 2008, to $2.15 billion, the result of unseasonably cool, wet weather taking its toll on seasonal categories. The still-sluggish economy had a further impact on other categories, including tools and electronics. Same-store sales dropped 2.7%.

However, despite overall softer sales, Canadian Tire Retail did see an increase in sales in home repair and maintenance as it turned its focus to selling smaller, less expensive products and products to get through the recession. Paint, as well, performed relatively strongly, further reflecting a focus by customers on repair projects.

Canadian Tire Retail’s second quarter adjusted earnings before taxes were $95.5 million, up 13.0% from last year, due to strong margins and, says the company, well-managed operating expenses. Earnings were affected negatively by increased expenses from the new Eastern Canada Distribution Centre, opened during the second quarter, and by continued investments in productivity initiatives.

Canadian Tire Retail opened five of its new-concept Smart stores in the quarter, two of which contain a full-size Mark’s Work Wearhouse offering. With the closing of one traditional store, the total number of stores in the network was 475 at the end of 2Q.

Top

“As anticipated, the second quarter results reflect a slight improvement in market conditions compared to the previous quarter,” says RONA president and CEO Robert Dutton. “Nevertheless, same-store sales and net earnings for the quarter were affected by a major reduction in housing starts compared to 2008 — especially in the West, by weather conditions that have been poor for renovation-construction activities and sales of seasonal items, and by increased promotional activities.”

Dutton adds that, despite the negative economic conditions, the company’s strategic plan — under the PEP program (productivity, efficiency, profitability) — continues to help improve the balance sheet. For example, gross margin increased 20 basis points and adjusted gross margin increased 41 basis points. Warehouse inventories were reduced by $61 million or 6.7%, net debt was reduced by $259.2 million compared with 2008 and interest on long-term debt and bank loans was reduced by 36.1%.

Top

Top 

Since its inception, The Debbie Travis Collection has grown to include ranges of furniture, storage and organization, glassware, dinnerware, and decorative accessories such as mirrors, vases and candles.

Top

Our Early Bird Special for the 2009 Hardlines Conference will save you up to 28%. It’s being held Oct. 22-23 at the Toronto Sheraton Airport Hotel and speakers include Home Depot’s Annette Verschuren, Susan Robinson of IRLY Distributors, and Broadleaf’s Bob Simko! Click here to register today at the lowest price we’ll offer all year! Click here to view the Conference Agenda.

BENTONVILLE, Ark. — Net sales for Wal-Mart in its second quarter were $100.08 billion, a decrease of 1.4% from $101.55 billion in the second quarter last year. Without the negative impact of currency exchange rates, net sales for the quarter increased 2.7% to approximately $104.28 billion on a constant currency basis. Income from continuing operations increased to $3.45 billion from $3.40 billion in the same period last year.

FORT WORTH, Texas — The private equity firm TPG has disclosed that it is purchasing 20% of Armstrong World Industries, a global supplier of hard flooring, acoustical ceiling tiles, and cabinets. TPG (formerly Texas Pacific Group) is paying $22.31 per share for 7 million shares, or 12% of Armstrong’s outstanding common stock, from the company’s asbestos personal injury settlement trust. It is also purchasing “economic interests” in another 1,039,777 shares held by the trust, which is currently the supplier’s largest shareholder. The whole deal is valued at $180 million.

NILES, Ill. — The  Wells Lamont Retail Group has launched a new website www.wellslamont.com, designed to provide the online visitor with expanded information on the numerous styles of Wells Lamont work and garden gloves. Also featured: detailed product descriptions with features and benefits information to help the online shopper.

TORONTO — ecobee, maker of the ecobee Smart Thermostat, has finalized a distribution agreement with Johnstone Supply Inc., the cooperative wholesale HVACR distributor. The ecobee Smart Thermostat is now being sold at Johnstone branches throughout the U.S., served by Johnstone’s five regional distribution centers.

ISSAQUAH, Wash. — Costco Wholesale Corp. had net sales of $5.41 billion for July, a decrease of 5% from $5.70 billion in the same four-week period last year. For the 48 weeks ended Aug. 2, the company reported net sales of $64.43 billion, a decrease of 2% from $65.54 billion. Same-store sales for July were down 7% and down 4% for the year to date.

CHICAGO — Grainger, the industrial supplier, saw July sales decline by 14%, due primarily to weak demand across all customer end-markets and geographies. Segment sales in the U.S. were down 14% and down 19% in Canada. Sale in Grainger’s other businesses were actually up by 5%.

PEOPLE ON THE MOVE

Peter Vernon has joined Freud Canada in the role of national sales manager. He’ll bring his extensive experience in the power tool/accessories supply and retailing industries — including a tenure at Home Depot Canada — to bear in his new role.
(905-670-1025*228)

Eva Boucher-Hartling has left RONA inc., where she had served as director of communications and public affairs, to join Telefilm Canada. T here, she will oversee the development and execution of communication strategies, including media relations and visibility at film festivals. Filling in until a new director is found is José Caron, assistant for the communications department. (514-599-5900, ext. 5398 or jose.caron@rona.ca)

Ideal Industries Inc., the electrical tools supplier, has appointed Brian Slayton as business unit manager – Tools and Supplies, effective immediately. In his new position, Slayton will be responsible for the day-to-day operations of the Tools and Supplies group, including oversight of the Ideal manufacturing facility and distribution centre in Sycamore, Ill.

IN MEMORIAM

ECONOMIC INDICATORS

NOTED…

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• Home improvement retailing shows decline by second quarter
• Feds pump cash into promotion of tax credit, forget to tell dealers
• Stanley partners with Blue Jays in sponsorship deal
• Wal-Mart announces sustainable product index
• Sales pick up for high-end outdoor furniture
• PLUS: CanWel opens DC, BMR adds member, Patene to open another, Sears starts Christmas early, Wal-Mart customers vote on new products — and more!
• Our Classified Ads
  

“He who does not bellow out the truth when he knows the truth makes himself the accomplice of liars and forgers.” — Charles Peguy (French poet, essayist and editor, 1873-1914)

The good news is in the anticipated change in the months ahead. Fully 72.4% of respondents said they expect sales to improve over the next 12 months. Another 13.4% said they were not sure, while 14.2% said they did not expect sales to improve.

Top.

Allard Johnson, with offices in Toronto and Montreal, is the agency in charge of creating the campaign, but has no mandate to promote the campaign details to retailers — limited so far to a list of “large national retail establishments where home renovation products are sold,” says Philippe Brideau, a spokesperson for CRA. Home Hardware Stores is one of them. “We’re working with CRA,” says Rob Wallace, public relations & promotional events manager for Home Hardware. Home already includes information about the incentive in its own commercials and flyer promotions. “Home Hardware is 100% on board so we’ll be putting the HRTC kiosks in all our stores.”

The other retail partners are RONA, Canadian Tire, Sears at Home, Home Depot, Le Groupe BMR and TIM-BR MARTS Ltd.

Brideau at CRA did not know of any effort by CRA to spread word of the in-store promotion to dealers beyond the seven partners. However, he says, “smaller or independent home renovation and hardware stores will also have access to these point-of-sale displays if they contact the CRA to request them, for as long as supplies last. All of these materials are distributed to retailers free of charge.”

But go out regionally or to smaller players and the response is quite different. Catherine Brownlow, advertising and communications manager for IRLY Distributors, says the B.C. buying group, which represents more than 40 dealers, had not heard about the in-store promotion. “We were definitely not approached about this,” she says.

At TruServ Canada in Winnipeg, Lora Deighton, communications manager, says she had just heard about it, but had not been approached by the Feds to partner. In fact, she says she had no idea it was available to other retailers beyond the chosen seven. “I really do think the government is missing an opportunity by excluding the smaller independent retailers across Canada.” But, she adds, “We’ve got initiatives of our own to help our stores market the HRTC to their customers.”

In fact, independents are taking matters into their own hands across the country. Independent Lumber Dealers Co-operative, which represents some of the strongest independents in the country, was completely overlooked by CRA. (ILDC’s members represent almost $2 billion in retail sales.) Stew Valcour is the general manager of Kent, Atlantic Canada’s dominant home improvement retailer and one of ILDC’s largest members. He was not pleased by CRA’s handling of the campaign. “Our buying group has registered our displeasure over the failure of the Federal Government to include independents in the publicity materials,” he says. But, like IRLY and TruServ Canada, his company is taking matters into its own hands. “Having said that,” he adds, “we feel our POP materials in-store are superior to those available from the government. We also have good local ads driving the program.”

The time-limited, non-refundable tax credit of up to $1,350 can be claimed for eligible expenditures made for renovations and alterations made to a principal residence. Homeowners thinking about renovating their kitchen, replacing their furnace or installing new windows or a new fence, for example, could benefit from this credit. The HRTC can be claimed on the 2009 income tax return for expenditures made between Jan. 28, 2009 and Jan. 31, 2010 that total more than $1,000, up to a maximum of $10,000.

Dealers will have to contact the same number that is given out to consumers for information: 877-959-1272.

Top

“The Toronto Blue Jays are extremely pleased to announce our partnership with another S&P 500 company like The Stanley Works,” says Gary Murphy, vice-president sales, Rogers Sports and Entertainment. “As our business continues to grow and develop, the alignment of our organization with others that are synonymous with quality — such as The Stanley Works — means a great deal.”

Top

The company will introduce the initiative in three phases. The first will be a survey to its more than 100,000 suppliers around the world; the survey will serve as a tool for Wal-Mart’s suppliers to evaluate their own sustainability efforts. In the second step, Wal-Mart will help create a consortium of universities that will collaborate with suppliers, retailers, non-government and government organizations to develop a global database of information on the lifecycle of products.

The third and final step will be to translate the product information into a simple rating for consumers about the sustainability of products. The rating, which will appear on packaging, will help customers determine the sustainability and quality of the products.

Top

According to the report, big boxes, notably Lowe’s and Home Depot, are benefiting most from the increased spending in outdoor living goods. The average amount spent by affluent shoppers in these types of stores surged 24% in the first quarter 2009 from the same period in the previous year. Dow Jones Newswire reports that seasonal living products at Lowe’s generated $2.1 billion, or about 5% of the retailer’s 2008 sales. Home Depot lumps seasonal living products in with its hardware sales, and together those categories generated $20.5 billion, or nearly 29% of sales.

Click here to learn more about this report from Unity Marketing.

Top

On hand for the opening were (l-r): Michel Cauvier, president of Matériaux 3C ltée; Yves Gagnon, president and CEO of  BMR; Loïc Cauvier, general manager; Pascal Cauvier, administrator; Hélène Cauvier; Father Rémi Bouchard; Romual Boutin, mayor of Grande-Rivière.

GUELPH, Ont. — Patene Building Supply Co., a masonry and roofing supply dealer based here, has purchased property in Barrie, Ont. Patene was founded in 1955 as a single masonry supply outlet in Kitchener, Ont. Since then, it has grown, through ground-up stores and acquisitions, into a network of 11 locations throughout Ontario and one in Winnipeg.

VANCOUVER — The worldwide recession is putting a damper on major corporate sponsorships, affecting the Vancouver Olympic Committee. According to the Financial Post, new sponsors are tough for VANOC to find. However, the core sponsors, including GM and RONA, remain in the game. RONA’s contribution, in materials, cash and services, is valued at $68 million. However, VANOC is still short $30 million in international sponsorships.

MISSISSAUGA, Ont. — Walmart Canada plans to open two Walmart Supercentres in Saskatchewan in early 2010. An existing Walmart in Saskatoon and another in Regina will both be replaced locally by new Supercentres that combine a grocery business with the existing stores’ current merchandise selection. These will be the first Walmart Supercentres — and the company’s first foray into the fresh grocery business — in the province. Walmart Canada operates 58 Supercentres in Ontario, Alberta and British Columbia, having first introduced the format to Canada in late 2006.

SPECIAL REPORT — Wal-Mart is handing over the reins to their consumers when it comes to what products they stock from now on, at least in the United Kingdom. The retail giant will allow groups of customers there to vote on which non-food products from China the buyers should order, according to The Telegraph. Rick Bendel, Wal-Mart’s international chief marketing officer, says, “When our buyers in China are buying products nine months in advance, we will give them a phone, they will take a picture of the product and email it to customers, and 1,000 customers will vote on whether we buy it.”

NEW YORK — Procter & Gamble has made its largest foray into retail yet with the acquisition of The Art of Shaving, a chain of high-end shaving and men’s accessories outlets. The retailer, which has 36 outlets in high-end locations, including shopping centres and upscale department stores, will be a way for P&G to learn the retail business. It also bought, back in February, a small chain of 14 car washes, intending to expand them into a nationwide franchise network under P&G’s Mr. Clean brand.

HOFFMAN ESTATES, Ill. — More retailers are tapping into the selling potential of Christmas a little earlier this year. Last week, Sears opened a “Christmas Lane” section on sears.com and kmart.com that features trim-a-tree decorations and accessories. Sears, which usually displays its holiday decorations the day after Labor Day, has moved the season up as an early-bird reminder that the chain offers a layaway program. The company showed off its Christmas spirit in about one-third of its 930 namesake stores, as well as its Sears and Kmart Web sites. Sears stores promoted cold-weather gear and snow-topped porcelain collectibles, while also selling summertime necessities such as inflatable swimming pools, sundresses and sandals.

BRENTWOOD, Tenn. — Tractor Supply Company, the retail farm and ranch store chain, reports that sales for the second quarter increased 5.4% to $946.5 million from $898.3 million. Same-store sales decreased 2.7%.

NOTED …

OVERHEARD…

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• Canadians have strong showing at NRHA Convention
• Home Hardware garden guru offers cost-saving tips
• Canadian Tire rolls out chip card technology nationally
• BMF launches merchandising program for dealers
• Lowe’s gains in consumer preference over Home Depot
• Small signs of recovery for U.S. as June housing inches up
• PLUS: Wal-Mart, Grainger, CHHMA, Costco, the Canton Fair and more!
• Our Classified Ads
  

“You can always spot a well-informed man. His views are the same as yours.”
— Ilka Chase (American actress, novelist and playwright, 1905-1978)

Another Home Hardware dealer, Tom Levi, of Levi Home Hardware Building Centre in Almonte, Ont., was honoured as a retail innovator in the overall category. His retail philosophy is that at the end of every transaction the customer, the staff and the store should all come out a winner. This philosophy has helped sales grow by 23% over the past four years. A leader in his community, Levi sponsors many community events throughout the year, supporting Big Brothers/Big Sisters, the Canadian Cancer Society, the local hospital and Canadian Troops serving in Afghanistan.

Top.

Cullen’s offers five tips for economical gardening:

• Save on water bills by using mulch to keep soil moist, capturing rain-fall in water barrels and placing soaker hoses in your garden to uniformly soak the soil. For best results, place hoses beneath a layer of mulch to further reduce moisture loss.
• Focus on native plants to increase natural biodiversity cycles. Native plants are typically less expensive, survive local weather conditions and reduce maintenance fees due to a tolerance to insects.
• Cultivate seeds to grow your own annuals, vegetables and herbs for a decorative flair and a practical approach.
• Invest wisely and improve your yard and garden so you can relax in your own outdoor retreat instead of spending on costly summer vacations.
• Select multi-purpose garden tools that work and protect your tools from the elements so that you don’t have to buy new tools each year.

(To view Mark Cullen on Hardlines TV, click here —Michael)

Top

Later this year, Canadian Tire will begin rolling out a new MasterCard chip card across the country to match the checkout capabilities of its stores vendors new POS terminals.

Top

BMF currently stocks about 1,000 SKUs for several industry leading clients and ships most orders in from three to five business days.

Top

On a year-to-year basis, Lowe’s, Wal-Mart, Ace Hardware, Sears and Target all gained share among home-improvement minded customers from June 2008 to June 2009, whereas Home Depot and Menard’s lost share during that period, according to the survey.

The latest trend in Lowe’s favour is even more noticeable when the polling is confined to those consumers with household incomes of $50,000 or more. Among that group, Lowe’s market share rose two percentage points, to 31.6%, while Home Depot’s dropped 2.6 points, to 37.8%.

Top

Meanwhile,  Americans keep losing their homes to foreclosure. Foreclosure filings, which include everything from defaults to bank repossessions, rose by 33% in June, to 336,173 nationally, compared to the same month a year ago, according to RealtyTrac, a research firm whose data cover 90% of all U.S. households.

Top

BENTONVILLE, Ark. — Wal-Mart has issued a new rigorous environmental assessment program for all its vendors. The program requires Wal-Mart suppliers to indicate on their packaging the environmental costs of making the products. This will include everything from how much water is consumed to make the product to how much gasoline is burned to get it to market. Other retailers are expected to follow suit as the packaging standards become universal among Wal-Mart’s legion of suppliers.

CHICAGO — Grainger reported second quarter sales of $1.5 billion, which were down 13% vs. second quarter 2008. Net earnings for the quarter decreased 18% to $92 million vs. $113 million in 2008. Sales for the Canadian Acklands-Grainger business were down 19% vs. the 2008 second quarter. In local currency, sales were down 6%

LONDON — Brintex, the organizer of the U.K. hardware show, Totally Tools, DIY and Secure, says it’s received strong support from exhibitors for its announced move to the National Exhibition Centre in Birmingham in 2010. There, it will run at the same time as Spring Fair International, Feb. 7-9. Draper Tools, a long-time DIY exhibitor in London, is looking forward to the move. “The new venue, combined with the joint exhibition, should mean a wider audience and increased footfall,” says Draper manager Nigel Whatley. For more information, contact Vanessa Fortnam, show press officer, 01 666 824624.

ISSAQUAH, Wash. — Costco Wholesale Corporation reported June net sales of $6.88 billion, down 4% from $7.15 billion in the same five-week period last year. For the year to date, the company reported net sales of $59.02 billion, down slightly from last year. Same-store sales were down 6% for June and down 3% for the year to date.

GUANGZHOU, China — For visitors planning to attend the 2009 Canton Fair, gaps between exhibition times have been shortened to three days. Phase one (electronics and household electrical appliances, hardware and tools, machinery and spare parts, building materials, lighting equipment, chemical products) will be held Oct. 15-19; phase two (consumer goods, gifts, home decorations) will be held Oct. 23-27; and phase three (textiles & garments, shoes, office supplies, cases & bags, recreation products, medicines, medical devices, health products, food products) will be held Oct. 31-Nov. 4. For a full list of products and more information, click here.

OVERHEARD…

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• Housing starts increase in June
• CanWel announces new-format show
• CSA acquires UK testing company
• Canadians not as green as they’d like to think
• PLUS: RONA raises money, CSA makes acquisition, CIL develops scrubbable paint, Boulanger handles maibec, “ghostboxes” litter the landscape, True Value goes “hardwarian” and more!
• Our Classified Ads
• Resumés
  

“It’s a recession when your neighbour loses his job; it’s a depression when you lose your own.” — Harry S. Truman (33rd President of the United States, 1945–1953)

The seasonally adjusted annual rate of urban starts increased 9.5% to 120,100 units in June. Urban multiple starts increased 11.3% to 67,000 units, while urban single starts also moved up by 7.3% to 53,100 units in June.

“The increase in housing starts in June is broadly based, encompassing both the singles and multiples segments,” says Bob Dugan, chief economist at CMHC. He notes that the latest increase includes a rise in housing starts in Western Canada, where declines had been most pronounced in recent months. Urban starts increased 59.4% in the Prairies, 25% in British Columbia, and 3.1% in Ontario. However, they fell in Quebec by 6.3% and by 3.9% in Atlantic Canada.

Despite the national rise, housing starts remain low compared with last year. Actual urban starts in Ontario, for example, are still almost half of what they were in June 2008. In British Columbia, actual urban starts are down a whopping 59.1%, and by more than 46% in Ontario. Nationally, actual urban starts were down by 33.1% over June 2008.

CMHC forecasts that housing starts will improve throughout 2009 — and over the next several years — becoming gradually realigned to demographic demand, which CMHC pegs at about 175,000 units per year.

Top.

The new buying show concept is based on a sports theme and will feature a central arena with stands, different areas representing the various product categories, and two restaurants/bars to encourage people to socialize. The show won’t host a major gala dinner. “We don’t want all the bells and whistles,” says Richard. Instead, the focus of the show’s investment is on providing the best deals for customers. “We are looking for a ‘wow’ factor — new product innovations and real show specials.”

CanWel also used the announcement of the changes to its show to introduce a new partnership program for its vendors. The thrust of the new program will be oriented toward concrete business opportunities between its vendors and customers.

Top

The survey was a convergent project developed by three Cossette business divisions — Optimum PR, Nucleus strategic planning and Blitz CRM — in partnership with Summerhill’s environmental consultants.

Cowling, who was formerly responsible for environmental marketing and communications at Home Depot Canada, does see some positives in the results, however. “The good news is that Canadians want to act and will spend the money to do so, but corporations need to make the message clear, make the action easy and communicate the benefit to the customer.”

Highlights of the study include:

• The largest Green Gap is 40% related to transportation, due to low adoption of alternatives such as carbon offsets, public transport and hybrid vehicles;
• Young adults have the most realistic view of their environmental practices. They gave themselves lower ‘self-perception’ scores, and had the smallest Green Gap of any age group;
• Better educated, higher income Canadians are doing more to take meaningful actions on the environment;
• Home energy conservation — setting thermostats lower, changing bulbs and buying energy-efficient appliances — remains popular, but few have taken larger, more costly steps such as installing alternative energy based on wind or solar;
• Women are more likely to take environmental considerations into account with their purchasing decisions, but an environmental certification is not always a tie breaker in favour of greener products.
• Quebecers are most likely to be positively influenced by green certification of packaged goods when making purchase decisions.

Top

A major organization in North America for developing standards, CSA Standards is now growing beyond its traditional standards development role and increasing its global presence with standards-based benchmarks that include training products, application tools and advisory services.

The familiar CSA mark that appears on products worldwide will not change. Nor is the new corporate identity for CSA Standards applicable to CSA Group or its other divisions, CSA International and OnSpeX. However, these divisions will undergo a similar corporate brand review in the coming months.

Top

TORONTO — CIL has developed a new paint technology that makes flat finishes totally washable, says the company. Called Smart3 Interior Wash & Wear, the new paint line is self-priming and, says the company, even low-sheen finishes can be washed without marring the surface. The acrylic paint uses “Ceramic Microsphere and StainBlock technologies” and retails for $33-$45 per gallon.

QUEBEC CITY — Roland Boulanger & Co. Ltd., a manufacturer and distributor of wood mouldings and components, has won the contract to handle the marketing and logistics of maibec sidings in Quebec and the Ottawa Valley region. Boulanger had already been representing maibec to a number of Quebec retailers. Now, it will cover the entire province, as well as the Ottawa Valley market, servicing independent lumber yards, regional building materials chains and big-box stores.

NATIONAL REPORT — More and more small towns across North America are being left with empty big-box stores. These so-called “ghostboxes,” which can cost more than $10 million to a prospective new owner, are often eyesores that can sit empty in a community for many years before being resold or re-purposed. For example, a former Kmart in Minnesota was turned into a Spam Museum. Others are eventually turned into hospitals, schools or community centres.

MONTMAGNY, Que. — Mercier Wood Flooring Inc. has forged a partnership with Radio Distributing Co. for the distribution of its products in Michigan and Northwest Ohio. In business since the early 1900s, Radio Distributing will service specialty retailers with Mercier’s hardwood flooring products.

OAK BROOK, Ill. — A marketing campaign that Ace Hardware Corp. conducted over the Memorial Day weekend in late May via different wireless telephone services apparently yielded considerable interest among users who received those messages. Marketing Today reports on its Web site that Mobile Posse, Ace’s ad provider, sent its two ads through carriers such as Verizon Wireless, Alltel and Cricket Communication.

CHICAGO — True Value Company has launched an ad campaign that features a new word: “hardwarian.” The co-op retailer is positioning its members’ stores as the “masters of all things hardwarian” in the light-hearted campaign, which was devised by the Chicago office of Marc USA, according to the New York Times. The campaign will represent about $15 million in ad spending in 2009 and be featured in television and radio ads, print and outdoor, and True Value’s own Web site: www.truevalue.com.

MONTREAL, Quebec — Richelieu, the woodworking industry supplier, has expanded its network in the U.S. by opening two new showrooms and distribution centers in Louisville, Ky., and Cincinnati, Ohio.

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!

• Lowe’s overcomes red tape as it expands in Canada
• KMS Tools builds on House of Tools closures
• BMR gains traction with new stores
• Home Depot scrutinizes spending for expansion
• Our Classified Ads
  

“Everything that is really great and inspiring is created by the individual who can labour in freedom” — Albert Einstein (Nobel Prize-winning German physicist,
1879-1955)

The next two stores will be in the Ottawa region, in a specific site that is still pending final approvals, and in Sudbury, Ont.

“We have found that there are a greater number of municipal approvals here than we’re used to in the U.S.,” says Stallings. He notes that Lowe’s has a rigorous policy of organic growth, with stores that are built along carefully developed guidelines. Rather than deviate from those guidelines, he says, the company seeks to obtain necessary approvals — even if it takes longer than expected. “That, coupled with the longer winters here, pushes our lead times out a little longer than we are used to in the U.S.”

Lowe’s has plans to open up to 100 stores in this country over the next eight years.

Top.

It all began with the decline of HOT’s parent company, Western Tool, an Oregon-based specialty tools retailer, which bought the Canadian company back in 2003. Hammered by the economy in the U.S., Western filed for Chapter 11 bankruptcy protection. HOT, feeling the effects of last year’s slowdown in the West, closed its stores in British Columbia — in Langley , Victoria, and Campbell River. Eventually, all stock was liquidated through a few stores and the entire chain was shuttered entirely, putting more than 200 out of work.

KMS Tools and Equipment, which is based in Coquitlam, B.C., has taken over the three stores in B.C. Though it didn’t buy the business outright, it re-hired the HOT staff and renegotiated the leases on those sites, says Ryan Hare, general manager of KMS. It now has seven stores in British Columbia and one in Red Deer, Alta.

One of the aspects of HOT that KMS is emulating is its strong outside sales force. Hare says KMS hired three former HOT commercial service reps. They have became part of a new 12-person outside industrial sales force, serving industrial and corporate accounts, schools and institutions, and insurance claims. “We see that as an area of tremendous growth,” especially in Alberta, says Hare. With the closing of HOT, “There’s a huge void in that market.”

Top

Top

Despite its rather modest plans for store expansion for the foreseeable future, Home Depot officials still believe that it can take market share from other competitors, especially if the market itself grows at a 5% to 7% annual pace, as projected. Home Depot currently captures about 20% of all U.S. home-improvement retail sales, and its officials say that it’s been gaining share in several product categories, even during the recession.

“There’s plenty of room for growth,” says Tome.

Top

ST. JACOBS, Ont. — With the arrival of gardening season (well, sort of, depending on which part of the country’s not getting rained on this week—MM), Home Hardware Stores is putting its garden spokesperson front and centre for informational and promotional considerations. Mark Cullen, the celebrity gardener, who also lends his name to a line of proprietary Home Hardware garden tools, offers tips for green gardening and gardening on a budget to the consumer media to help satisfy Canadians’ appetite for the outdoors. Cullen also has a new book, The Canadian Garden Primer: An Organic Approach. Click here for more info.

OTTAWA — A Coalition of retailers and other merchant businesses opposed to the fees and rates charged to merchants and consumers has succeeded in getting government support for its cause. The “StopStickingItToUs” Coalition now has the support of the Standing Senate Committee on Banking, Trade and Commerce, which released a report last week recommending fundamental changes to the way credit card companies, banks and payment processors operate in Canada. The report makes a number of recommendations that include establishing a code of conduct for payments systems participants and practices for setting fees and rates, prohibiting “honour all cards” rules that require merchants to accept a network operator’s higher-cost premium cards, and permitting surcharging and/or discounting by merchants.

MOORESVILLE, N.C. — Larry Stone, Lowe’s Cos.’ 57-year-old president and COO, still sees “tremendous opportunity” for his company’s future growth in opening stores in large metro markets. In an interview with the Charlotte Observer, Stone — who in June celebrated 40 years with the company — was quick to note that Lowe’s current strategy of expanding mostly in smaller and midsize markets is being abetted by smaller-store formats that are less expensive to build and operate. “There’s a lot of small markets throughout the U.S. that you could pop those stores in,” he told the newspaper.

HONG KONG — B&Q, the big-box chain owned by U.K. retailer Kingfisher, will close its only store here, as part of a rationalization of its operations in China. Another 21 stores will be closed in mainland China, while the remaining 41 outlets will undergo a refurbishing. Faced with a recession there, Kingfisher lost ₤14 million ($23.2 million) in the first quarter in China.

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue!