• Industry slide began in’08 as market continues to dip
• Lowe’s Canada looks northward for continued expansion
• CanWel reduces amount of annual distributions
• TSC joins forces with farmers’ association
• Home Depot gives high priority to project selling
• PLUS: RONA garners corporate responsibility recognition, Orgill to open giant DC, Lowe’s offers new program for its cash-strapped U.S. customers, and more!
• Our Classified Ads
  

“It isn’t the people you fire who will make your life miserable; it’s the people you don’t fire. ” —Harvey McKay (American executive and business writer, 1932- )

By comparison, retail sales from all sectors in Canada totaled $425.3 billion in 2008, an increase of 3.2% over 2007. For most of the past decade, this industry kept pace with, or ahead of, total retail sales growth in Canada, so that it represents just over one-tenth of retail sales in this country.

The range of factors affecting the market has created a decline that actually began in 2007, as growth slowed significantly to 4.7%, after years of growth in the range of 5%-8%.

The full study, which appears in the latest issue of Hardlines Quarterly Report, further reveals that big boxes in this country are reaching maturity as the market faces saturation. At the same time, smaller-format retailers are making gains.

(Get the full report on the size and growth of the industry, including the retail winners and losers — plus a special report on the latest retail formats — in the 2Q edition of our sister publication, Hardlines Quarterly Report Click here for more info.

Top.

One of them will be in the Ottawa region. Stallings wouldn’t confirm a more specific location, but did say that a number of sites and communities are currently being evaluated.

The other site will be in Northern Ontario, but until final red tape is cleared, he declined to name to exact location (Hardlines will have that news for you just as soon as it breaks—helpful Mike). In addition, Lowe’s continues to evaluate five of the six Sam’s Club stores that have been shuttered by Wal-Mart here in Canada, all of them in Ontario. Stallings said none of these stores has been finalized yet, but that talks with Wal-Mart are continuing.

He also reiterated the company’s previously stated intention to open up to 100 stores across the country within the next eight years. Lowe’s ended last year with eleven stores and estimated sales of approximately $100 million.

(A full listing of the sales, store counts, executive teams and buyers for Lowe’s Canada, Canadian Tire, Home Depot Canada, Home Hardware and 70-plus other retailers is in the newest Who’s Who Directory. Click here to order! —Michael)

Top

The June cash distribution will be paid on July 20. The fund’s policy is for unit holders to receive distributions on or about the 20th day of the month following the end of the previous month.

Top

Partnerships like this one — and another, with Viterra Inc. in Manitoba (see our February 9/09 issue) — give TSC the means to promote itself and broaden its customer base. “It’s tough to match the bigger retailers when it comes to advertising spending,” Roussy notes, “so we have to be a lot more strategic with our promotions and our ad dollars.” Roussy himself joined TSC three years ago from Canadian Tire Corp.

Last month, Hardlines announced that TSC had begun testing Stephenson’s Rental counters in two of its stores, in Uxbridge and Bowmanville, Ont.

Top

At the company’s meeting with analysts recently, Ellison noted that the retailer is adding between 300 and 400 more man-hours to its stores to ensure that it has sufficient personnel on the sales floor at the right selling periods. And by cutting down on its requirements for memos, meetings and emails, store associates will be able to spend more time with customers, he said.

However, the spirit of entrepreneurialism that drove Home Depot’s success in the past is being replaced by simplicity and a greater uniformity in its store operations to make them more productive. Home Depot’s Canadian division is currently testing a new Enterprise Resource Planning (ERP) system, dubbed SAP (for Systems, Applications and Products in Data Processing), to analyze and fine-tune each of its stores’ planograms, with an eye towards increasing turns and improving inventory management. Home Depot is assessing the results from this system to determine if it should be rolled out to its stores in the U.S. next year.

Top

MOORESVILLE, N.C. — This month, Lowe’s launched a campaign offering cash-strapped customers advice about how they can save money through a new signage program that highlights how product purchases can be cost-reducing investments. This “Build Your Savings” campaign goes beyond price discounts, according to the In-Store Marketing Institute, whose Web site reported on the new program. The signage, which is supported throughout the stores by purple and green stanchions with informational literature, explains how certain products can help homeowners save money over the long term, with shelf tags that provide money-saving tips in three categories: tax credits, utility costs and do-it-yourself savings.

POWELL RIVER, B.C. — Last week, the RONA affiliate dealer here had a grand reopening. The town is unique as one of the few large communities in Canada with no direct road access to the rest of the province. RONA products, like everything else that must come into the community, arrives by barge. Pat Hull, general manager and one of the owners of this uniquely staff-owned store, points out that RONA ECO products sell well to the aging hippie community here.

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!

• Castle holds capacity buying expos
• RONA puts push on Proximity Stores
• Home Hardware launches anniversary Toyota sweepstakes
• Canadian Tire opens huge Quebec distribution centre
• Home Hardware “passionate” about another hockey team
• Home Depot gets tough on inventory management
• PLUS: BMHC seeks bankruptcy protection, RONA realigns dealer development team, Sears wins ENERGY STAR, Ace dealers sell wind turbines, True Value recognizes Rust-Oleum, Wal-Mart rebrands its convenience stores and more!
• Our Classified Ads
  

“Misunderstandings and neglect occasion more mischief in the world than even malice and wickedness.” —Johann Wolfgang von Goethe (German author, painter, scientist, philosopher, and statesman, 1749-1832)

Jones says the program is appealing to vendors because it lets them get face time with each one of Castle’s 226-plus members, who represent more than 240 locations nationwide. “It guarantees the vendor the opportunity to sell his advantages and specials in this tough marketplace,” says Jones. “This really helps our members solidify their position in the marketplace with the grassroots vendor support on a national basis.”

Top.

BOUCHERVILLE, Que. — Last week, RONA dealers had two grand openings and one reopening, all of them in the West, and all of them different sizes.

But what they share in common is the latest in RONA’s store concepts and merchandising. In La Broquerie, Man., Farrel Rempel has renovated his 5,500-square-foot store to offer a wider range of hardware products and a new paint boutique. The aim: to provide customers with enough choices — especially in higher-end products — to keep them from making the trip to a big box in nearby Winnipeg.

The other two openings are RONA’s so-called “Proximity”-style stores, which bring big-box features to a smaller-sized footprint. Features include high ceilings, high racking, and a series of boutiqued departments, while being tailored to local needs. In Grande Prairie, Alta., John Nagra, a well-known home builder in the region, decided to diversify into home building. With his wife Jas, he has opened a 62,000-square-foot store.

“It’s based on RONA’s latest store concept,” says John Nagra. He points out that the expanded store now has thousands of décor and interior finishing products, plus a garden centre, while maintaining a large outside lumberyard to adequately serve the store’s important contractor customers. “RONA encourages their local owners to adapt their store designs to the local market,” Nagra says.

The team at Duncan Pacific Builders Supplies, owned by brothers Grant and Wayne McKinnon, unveiled their fourth RONA store on Vancouver Island last week. Also a Proximity store, it was built with a number of energy-efficiency innovations, including a special water-retention system to prevent runoff from entering nearby roadways.

The McKinnons are notable for being the only RONA dealers in the country to own Proximity stores in all three sizes. The other stores are in Duncan (60,000 sq.ft.), and Cobble Hill (22,000 sq.ft.). A fourth store, in Campbell River, is 15,000 sq.ft. and the next one scheduled to be renovated.

The openings continue. This Thursday, the RONA affiliate dealer in Powell River, B.C., will have its grand reopening, as well.

“Locally-owned family businesses like the McKinnons’ are the reason RONA came into existence in the first place,” says Robert Dutton, president and CEO of RONA. The company now has more than 700 corporate, franchise and affiliate stores across the country.

Top

As part of this celebration, a draw will be made for prizes of three fuel-efficient 2009 Toyota RAV4s.

“What better way to celebrate our 45th anniversary, then to show our appreciation to our customers with this exciting contest,” says Paul Straus, vice-president and CEO of Home Hardware Stores. “With more than 1,000 stores in communities large and small across Canada, Home Hardware’s independent dealer owners know the value of their customers and are excited to thank them in such an amazing way.”

Top

Construction and build-up of the facility took approximately 23 months to complete. Boasting state-of-the-art technology and materials-handling systems, it is designed to sort and ship inventory arriving from more than 1,000 suppliers. Now fully operational, it has the capacity to process up to 55 million cubic feet of throughput per year and will supply 94 Canadian Tire stores in Quebec, as well as stores in Ontario and Atlantic Canada.

“Canadian Tire continues to experience strong growth, creating the need for a centrally-located distribution hub that will enable us to efficiently ship products to our stores so customers can get the products they want, when they want them,” says Wetmore.

Top

“At Home Hardware, we have a long history of supporting Canada’s favorite pastime in more than 1,000 communities across Canada. We are passionate about the future of hockey in Canada and proudly support efforts to bring a seventh NHL team to our home ice,” Wallace adds.

Top

Home Depot intends to open five or six more RDCs this year, and have 20 opened by the end of 2010, at which point they will be servicing 100% of the company’s U.S. stores. Company officials believe that by running more of its inventory through its distribution channel, it can achieve transportation savings that would increase annual gross margins by between 0.4% and 0.8%.

Top

OAK BROOK, Ill. — Ace Hardware dealers are now offering a wind turbine that can be installed onto a house’s roof. The Honeywell Wind Turbine, supplied by EarthTronics, is six feet in length, weighs 95 pounds, and can produce 2,000 kilowatt hours of electricity per year, or 18% of an average household’s energy needs. The product is pricey: US$4,500 plus as much as $1,500 more for installation.

BOISE, Idaho — The pro dealer Building Material Holding Corp. and all of its subsidiary companies petitioned the U.S. Bankruptcy Court in Delaware on June 16 for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. BMHC has reached agreement with its secured lender group to restructure its balance sheet and provide greater financial flexibility to support its long-term business plan. Under its proposed plan, BMHC will reduce significantly its outstanding debt, establish a new revolving credit facility, and substantially lower annual interest expense.

CALGARY — Thirty-six Sears National Kids Cancer Ride cyclists departed from Vancouver June 13 and arrived in Calgary a few days later at Sears Marlborough Mall. They’ll get to their final destination, Halifax, on June 24. The Sears Ride across Canada is said to be the world’s longest charitable cycling event on behalf of childhood cancer. When the cyclists — all employees of Sears Canada — arrive in Halifax, they will have covered more than 7,000 km. Last year, the Cancer Ride raised $1.1 million to fund both national and provincial pediatric hematology and oncology research programs.

RALEIGH, N.C. — A U.S. bankruptcy court in Delaware gave thumbs up to Stock Building Supply’s plan for reorganization, which means that the pro dealer could emerge from bankruptcy within weeks. The plan essentially recapitalizes the company and eliminates debt from Stock’s balance sheet. The Gores Group, a private equity firm that acquired a 51% stake in the pro dealer in May, is providing Stock with $75 million in new capital plus a $125 million credit facility.

BENTONVILLE, Ark. — Wal-Mart is rebranding its small, “Marketside” convenience grocery stores. The four test stores, all in the Phoenix area, will be named Marketside by Walmart. The stores were introduced last October. The new name comes on the heels of the modification of Wal-Mart’s main banner to Walmart, and will be extended eventually to Wal-Mart’s “Neighborhood Market” stores.

LONDON — Argos, the giant U.K. department store retailer, is launching a mobile store that will appear at music festivals. The first appearance will be at the famous Isle of Wight Festival, where a customized 60-foot trailer will sell stuff like camping products, barbecues, binoculars, and even clothing.

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!

• Verschuren will headline Hardlines Conference
• Canadian Tire evaluates newest store concepts
• Home Depot brightens outlook for 2009 earnings
• Retailers honoured for innovation
• MIBRO purchases wolfcraft in Americas
• Roxul to increase production with new plant
• RONA receives Phénix environmental award
• PLUS: and more!
• Our Classified Ads
  

“Speak ill of no man, but speak all the good you know of everybody””
—Benjamin Franklin (American statesman, scientist and philosopher, 1706-1790)

Ms. Verschuren’s frank and compelling insights will be a welcome addition to the latest Hardlines Conference. Now in its 14th year, the event attracts the top executives in home improvement retailing from Canada and the U.S. to hear from top international retail and economic leaders.

Other confirmed speakers: Susan Robinson, President and CEO of IRLY Distributors; Bob Simko, CEO of Broadleaf Logistics; and Brad Dick, president and co-owner, Newton Enterprises, an independent based in Portage La Prairie, Man.

The 14th Annual Hardlines Conference will be held Oct. 22-23, 2009 at the Sheraton Toronto Airport Hotel and Conference Centre. The Hardlines Conference is owned and operated by Hardlines Inc., which publishes the weekly HARDLINES newsletter. For more information or to register at Early Bird rates, call 416-489-3396 or visit our website.

Top.

That model features significant merchandising changes that feature high walls and ceilings, a boutique approach to departments, a “racetrack” layout and an expanded sporting goods department. These stores also feature a Mark’s Work Wearhouse and were the first to feature grocery items.

So far, so good, says Arnett. He spoke with Hardlines earlier this year. “They’re performing very well. We’re delighted to the point that we under-forecast the results.” He adds that the new Smart stores performed so well that the company had to scramble to keep them stocked during the ’08 Christmas selling season.

The Small Market store is Canadian Tire’s attempt to expand in smaller, secondary markets with a concept that offers a wide range of the extensive product mix the company is so well known for. Older stores in smaller markets are being refitted or replaced as Small Market stores.

The concept reduces the store’s footprint to 14,000-18,000 square feet. “We can do everything we need to in 14,000 square feet,” says Arnett. The stores comprise a three-season compound and a large outdoor compound to accommodate high seasonal spikes, especially in cottage markets. “This allows us to make these stores behave as though they were much bigger,” he adds.

“Anything re-opening going forward and anything built new going forward will be Smart stores for the larger stores — so it’s replaced 20/20 — and in smaller markets, it will be the smaller store concept.”

Top

Those disadvantages, along with the severe housing recession in the U.S., continue to hamper the Atlanta-based retailer’s performance and balance sheet. However, based on stronger spring sales, company officials offered sunnier projections about profitability for 2009. They predict it will be off by 7%, or by 20%-26%, on an adjusted basis. Previously the company was anticipating its adjusted earnings per share to be off by 26%. Home Depot still expects revenue this year to be down 9%, and its same-store sales to be off “in the high single digits.”

This year, the retailer will open only 13 stores, three of which will be in Canada and three in Mexico. Tome and Frank Blake, the company’s chairman and CEO, reiterated Home Depot’s new growth policy, which limits any increases in total square footage annually to no more than 1.5%. This meeting focused on the company’s U.S. operations, but Blake hinted that the company won’t open more stores in China, where it operates a dozen, until it can figure out how to make money there. Surprisingly, he added that the company is looking again at expanding into Latin and South America.

Top

Two Canadian companies are included in this year’s list of winners. Marc Robichaud, of Robichaud TIM-BR MART in Meteghan Centre, N.S., was awarded in the category for innovation in green marketing. When other retailers were crafting their green strategies, this fifth-generation retailer was already living them, both at home and in his 140-year-old business.

For the past decade, Robichaud has been an expert at helping his customers live greener lives. Through his efforts, he continues to save customers money, reduce their carbon footprint and make them loyal customers.

Tom Levi, of Levi Home Hardware Building Centre in Almonte, Ont., was one of just three winners in the “Overall” category. Levi’s 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 is what has helped the store 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.

In 2007, the store received the Paul Straus Public Relations Award from Home Hardware Stores Limited for demonstrating creative and innovative approaches to store promotion and building customer and community relations through public relations.

“These retailers are leading the industry by example in what can be achieved by independent retailers across the home improvement industry,” says Bill Lee, NRHA managing director and publisher of Hardware Retailing magazine. “Their example encourages other independent retailers to continue their pursuit of excellence in hardware and home center retailing, and we applaud their efforts.”

The Awards will be showcased at the upcoming NRHA Annual Convention and All-Industry Conference, July 13-15 at the San Antonio Marriott Rivercenter in San Antonio, Texas. For more information on the 2009 Retail Innovator of the Year Awards or the 2009 NRHA Convention and All-Industry Conference, click here www.nrha.org or email mike@hardlines.ca.

Top

The two companies will join in an ongoing collaboration to expand their respective breadth of consumer-oriented programs and new product development, and MIBRO will begin private-labeling many of the wolfcraft products. Both companies will also buy jointly from factories in China.

Top

The Milton facility is considered one of the most advanced of Denmark-based Rockwool’s 23 operations worldwide. It uses technologies to minimize emissions, recycle all waste products and deliver zero waste to landfill, reuse water in its production process, and recycle heat from manufacturing to heat the factory and warehouses.

In addition to the Milton plant, Roxul has a facility in Grand Forks, B.C.

Shown (l-r): Roxul’s president Trent Ogilvie; Eelco van Heel, CEO of Rockwool International; Ontario Premier Dalton McGuinty; and Milton Mayor Gordon Krantz.

Top

OAK BROOK , Ill. — Ace Hardware has announced plans to switch over to plastic paint cans for its latex paints, which will make both the can and its contents recyclable . Ace Paint also is in the process of researching and pursuing eco-friendly certification for select paint lines through a third-party organization. Ace is the 12th largest paint manufacturer in the U.S., with an annual production capacity of 20 million gallons.

RALEIGH , N.C. — Stock Building Supply, currently under Chapter 11 bankruptcy protection, is walking away from more than 100 leases it holds on properties across the country. Stock was recently taken over by The Gores Group, a Los Angeles-based private equity firm. Under Chapter 11, the company is able to “reject” the leases.

CHICAGO — Grainger, a wholesale supplier, reported a 10% sales decline last month compared to May sales of last year, due primarily to weak demand across all customer end-markets and regions. The weak dollar affected sales from international operations by approximately two percentage points. Business in the U.S. was down 9% and down 14% in Canada.

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 raises cash through stock issue
• IRLY hosts dealers at buying show and AGM
• Independents will share ideas at NRHA Convention
• TSC sizes up new Stephenson’s partnership
• Can-Save hosts dealers at Summer Expo
• Lowe’s donates to job skills training in Ontario
• PLUS: and more!
• Our Classified Ads
  

“When you have only two pennies left in the world, buy a loaf of bread with one and a lily with the other. ” —Chinese proverb

RONA is not alone in its efforts to raise money without borrowing. Canadian Tire recently closed a bond offering of $200 million in seven-year notes with an interest rate of 5.65%. And, according to Statistics Canada, the non-financial corporate sector slowed its level of borrowing, from $58 billion in the fourth quarter of 2008 to $25 billion in the first quarter of this year.

Post your comment here.

Top.

In addition to the show, IRLY held a golf tournament and a high-wire ziplining adventure, as well as seminars on succession planning and growth for the independent.

IRLY, an acronym for “Independent Retail Lumber Yards”, was founded in 1963. There are 42 independently owned and operated IRLY stores in BC.

Post your comment here.

Top

The convention will also include an NRHA Family Fun Night and three optional activities to make your trip to San Antonio unforgettable. The San Antonio River Safari and Walking Tour will be held on Tuesday, July 14, and the NRHA Annual Golf Scramble and Shopping the Villages of San Antonio will both be held on Wednesday, July 15.

To download a brochure and to register online for the NRHA Annual Convention and All-Industry Conference and a schedule of events, log on to www.nrha.org today.

Top

Tests of the combined concept are being conducted in two of its Ontario stores. The first, in Bowmanville, utilizes a 4,000-square-foot store contiguous to the existing TSC outlet. A hole was knocked in the wall between the two stores to give customers access to both businesses.

The second is in Uxbridge and features a “store within a store”, close to 2,000 square feet in a gondola run right inside the tool department. This latter approach is augmented with complementary retail products, such as flats of bagged cement or drywall compound. “This,” says Hicks, “is the concept we see scaling going forward.”

The strategy now is to figure out how to increase retail sales of TSC products to Stephenson’s mainly contractor customers. So far, customer reaction and results to date have exceeded expectations. “Our rental business in both locations has been rising steadily by 50% for both of the first two weeks.”

TSC anticipates that the pilot locations will justify an aggressive rollout to many more existing TSC locations.

Post your comment here.

Top

The show turned out to be a good one for those exhibiting suppliers, who found dealers generally eager to buy. “My hand was getting sore writing orders,” said Mark McIntosh of Industrial Thermo Polymers. He was introducing a new product at the show — a line of polyethylene crown mouldings. “We’re always looking for innovative new products,” he said. “The dealers love it.”

Top

Alex Peever, apprentice for Muskoka Stone Works and graduate of Ontario Masonry Training Centre, puts the finishing touches on a fireplace.

TORONTO — Lowe’s Canada has made a $200,000 grant to Skills Canada in Ontario. The donation, from the Lowe’s Charitable and Education Foundation, is the largest corporate contribution ever received by Skills Canada Ontario, a not-for-profit organization dedicated to supporting the development of skilled trades and technology among the youth in Ontario.

The grant will be used to support community service projects and instructional program enhancements. It will also help fund the Ontario Technological Skills Competition, an annual event to encourage skills education with youth. “Lowe’s is committed to supporting community projects that are important to our customers and employees, and we look forward to watching these young men and women contribute to their own communities, as well,” says Don Stallings, President, Lowe’s Canada.

The Ministry of Training, Colleges and Universities will match all donations made to Skills Canada Ontario up to $400,000. In 2008, Lowe’s donated more than US$26 million to schools and non-profits to support more than 1,800 community projects across North America.

Top

TORONTO — Lowe’s will open its next two stores this month, both in Scarborough, Ont. The North Scarborough is at 6500 Steeles Ave. East and the West Scarborough location is at 800 Warden Ave., below Eglinton, the site of a former Wal-Mart store that’s beside a RONA big box. This will bring the number of Lowe’s big boxes in this country to 14. Lowe’s opened its first three Canadian locations in December 2007 and its 12th store in early May in Oshawa, just east of Toronto. Two more stores are planned for the Lowe’s current fiscal year, which ends Jan. 31, 2010. Post your comment here.

BOUCHERVILLE, Que. — RONA inc. unveiled new products last week in its Haussmann and Haussmann Xpert lines. The proprietary brand, which was introduced at RONA’s dealer market in Toronto last fall and is exclusive to the retailer, is available across the RONA network, including Totem in Alberta and Réno-Dépôt in Quebec. Products include a nine-inch band saw, ten-inch portable saw bench, twelve-inch sliding compound mitre saw, and 14.4-volt lithium-ion cordless drill.

ST. JACOBS, Ont. — Home Hardware Stores Limited recently gave out awards to its dealers across the country for achieving the highest standards in retailing, merchandising, staff performance and overall quality. But one dealer received a special award, the Walter J. Hachborn Store of the Year Award. Quincaillerie Home Hardware in Rimouski, Que., beat out more than 1,000 fellow dealers to earn the top honour.

ROCKY HILL, Conn. — Henkel Corp. has announced the sale of its DIY line of tapes, office and housewares products, and kitchen and bath products under the Duck, Painter’s Mate Green and Easy Liner brands. These businesses, in both the U.S. and Canada, have been sold to Hickory, N.C.-based Shurtape Technologies.

TORONTO — Canadian Tire has been awarded the Retail Council of Canada’s 2009 Excellence in Retailing Award for “Retail Store Design for a Large Chain”. The company won for its Smart Store format, which features new presentations and a combination of improved category adjacencies, with additional space devoted to Canadian Tire’s cornerstone businesses of automotive, sporting goods and tools. In addition, these Smart stores feature boutiques, customer service desks and information kiosks. (A detailed examination of Canadian Tire’s newest store formats will appear in the upcoming 2Q edition of our sister publication, Hardlines Quarterly Report—informative Editor)

TORONTO — Owens Corning, the building materials and glass fiber reinforcements maker, has installed what it claims is North America’s largest solar air heating system. Using the sun’s energy to heat ventilation air for commercial buildings, the SolarWall system, invented by Conserval Engineering, has been installed at the company’s Toronto-area insulation manufacturing facility. The SolarWall technology is said to reduce substantially traditional heating fuel expenses and carbon dioxide emissions, require no maintenance and last more than 30 years. The Toronto facility will generate an estimated 8,000 million BTUs of thermal energy each year.

VANCOUVER — CSA International, the testing and certification organization, has opened a laboratory for the testing and certification of solar panels and other alternative energy equipment. The new facility is designed to help North American manufacturers bring qualified existing and new “green” alternative energy technologies to market. In 2008, world solar photovoltaic market installations grew by 110% and recorded revenues of $37.1 billion, with the U.S. as one of the top three countries recording growth. Photovoltaic prices have declined an average of 4% annually over the past 15 years.

TORONTO — Sears Canada Inc. has announced it will begin offering residential painting services in selected markets. The giant department store chain, which also claims to be the nation’s largest installed home improvements provider, is tying the new service in to the federal government’s new Home Renovations Tax Credit program. Sears is using licensed, insured, professional painters, while Sears’ professional consultants will help consumers choose the colours, match fabrics and materials, etc., to produce a full design offering.

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 shuffles lineup of Canadian team
• RONA to launch new store concept
• Do-it center is now done in Canada
• RONA consolidates presence in Windsor market
• Cologne fair rebrands to sharpen focus on tools, hardware
• NRHA to offer education, vacation at annual convention
• PLUS: RONA dealer expands, Best Buy to carry patio furniture, Canadian Tire joins Hydro in promotion, Wal-Mart delayed in India, and more!
• Our Classified Ads
  

“One of the best ways of avoiding necessary and even urgent tasks is to seem to be busily employed on things that are already done. ”
—John Kenneth Gailbraith (Canadian-born economist, 1908-2006)

In another move, Doug Robinson, formerly president of Lowe’s Canada, has landed back at Lowe’s head office, following an eight-month hiatus.

Top.

He added that the company is “now searching for the right real estate” for the new concept, although he would not reveal just where the store will be located or how big it will be.

Top

“We were looking to stay somewhat unique to ourselves, and there are no other stores branded Castle in town,” says Hagel. “Castle has a really good program for store renovations, so we went with that. The store looks great and the customers are very happy with it,” she adds.

The Do-it center banner actually had its roots in Canada. In the 1980s, Fort Wayne, Ind.-based wholesaler HWI (now Do it Best Corp.) recruited the Watt Group, a Toronto-based design company that had earned international renown for its innovative branding concepts, including the look for Home Depot’s logo and the creation of the President’s Choice brand. Using a deep shade of orange — considered a colour that denotes value à la Home Depot — brand guru Don Watt and his team came up with the home centre concept for HWI and named it Do-it center.

The program was licensed in Canada by Sodisco-Howden Group, until that group bought Ace Hardware Canada. Ace and Do it Best are competitors in the U.S., so the latter organization ended its licensing agreement with Sodisco-Howden.

The newly branded Castle store will hold a grand re-opening at the end of June.

Top

Angileri is well known for its strong contractor business, and the move aims to bring that business — and the expertise of Angileri’s staff — over to the big box location. More than 30 employees from both sites are being transferred to the big box.

According to Eva Boucher-Hartling, spokesperson for RONA, market conditions were making it difficult to have three stores growing their business in the same area. “We sat down with our dealers to come up with this partnership idea. They are coming on board as management at the big box store. We will be able to better meet the needs of the local clientele and see our business grow long term.”

Reluctant to blame the local economy, co-owner Ray says, “We’re … seeing it as an opportunity to become stronger and bigger.” Ray’s stores have had a relationship with RONA for five years. “We’re able to consolidate our equipment, trucks, stock and employees in one location, which we believe will be good for our customers.”

Top

Although the words “Practical World” will no longer be part of the trade fair’s name, home improvement products will still be an important part of the show’s product range. DIY products, including electrical supplies, cleaning and maintenance supplies, and interior components, will be presented in Hall 11, the same hall that will house industrial supplies and locks and fittings.

Top

ST. ALBERT, Alta. — In this community northwest of Edmonton, the affiliate RONA store celebrated its Grand Reopening recently. Since joining RONA last year, owner Barry Campbell has expanded the store’s front-end offering, adding some 10,000 square feet of retail space. The 35,000-square-foot showroom features an Ambiance paint boutique and a large kitchen display area. Pictured (l-r): Gary Allen, RONA regional manager; Robert Dutton, RONA president and CEO; Barry Campbell, store owner; and Kim Switner, retail manager.

RICHFIELD, Minn. — U.S. consumer electronics retailer Best Buy has announced plans to start selling outdoor living products. The company will now stock patio furniture, fire pits, grills and outdoor heaters in an attempt to make up for sales declines in CDs and movies, according to a CNNMoney.com report. Most of the outdoor living products are being offered through Best Buy’s Web site, but a few stores in California are displaying the products on the salesfloor to test consumers’ reaction.

MONTREAL — Dorel Industries Inc. says it posted its best year ever in 2008 with revenues of US$2.2 billion and net income of US$113 million. First-quarter 2009 revenues were US$525 million and net income was US$28 million, lower than last year’s first quarter. In the Home Furnishings Division, 1Q results were up, with Dorel’s Ameriwood domestically-produced RTA furniture leading the way, especially among mass merchants and DIY centres. The company’s Cosco Home & Office Division still expects to lose money in 2009, but is forecast to return to profitability next year.

BENTONVILLE, Ark. — Eduardo Castro-Wright, vice chairman of Wal-Mart Stores, says he likes to drop in unannounced to Wal-Mart locations and talk to customers about their likes and dislikes. According to an interview in the New York Times, he will then wander into the back of the store to speak with associates. “Almost always, you get enormous insight from those who spend their days taking care of customers,” he says.

TORONTO — Canadian Tire and Toronto Hydro-Electric System have partnered to kick off energy conservation this spring with Toronto Hydro’s “Count Me in Toronto” campaign. It’s aimed at promoting energy conservation, will pit Toronto’s 44 Municipal Wards against each other in a challenge to see which neighborhood can register the most “acts of green” in a five week period. The campaign, which ran over the past two weekends, offered customers a chance to pick up one of 40,000 free CFL light bulbs and other special offers from participating Canadian Tire stores in the Greater Toronto Area. Customers were then invited to register their “act of green” online for their Ward.

NEW DELHI — Wal-Mart’s joint venture in India is facing delays in the opening of its first store in this country. Violence in the Northern Indian city of Amritsar has forced the country to hold up opening the wholesale store, reports the Wall Street Journal.

BURLINGTON, Ont. — Ikea co-workers were planting trees and shrubs last week as part of the company’s “Pick a Tree, Plant a Tree” program in support of Tree Canada. Communities across the country that have Ikea stores benefited from the efforts of IKEA co-workers and Tree Canada advisors, who planted saplings, trees and shrubs in community parks, riverside areas and schools. The initiative is funded by Ikea Christmas tree sales from the past holiday season and from the five-cent charge placed on plastic bags at checkout.

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 Hardware supports proposed new hockey team
• Retail Giants see glimmers of hope in quarterly results
• Home Hardware dealer opens biggest store yet
• RONA keeps PEP program on track to weather economic storm
• Canadian treasure relies on industry for TLC
• PLUS: more dealers join TIM-BR MART, RONA names new lumber merchant, housing starts downgraded for the year, Emerson gets new digs, 1Q results from Ace Hardware and Sears Canada, and more!
• Our Classified Ads
  

“Never find your delight in another’s misfortune.”
—Publilius Syrus (Latin writer, ca. 1st century B.C.)

Both Labatt and Home Hardware will be utilizing their national networks of local partners and loyal customers to further mobilize support, in addition to special advertising and contest initiatives linked to the “Make It Seven” campaign.

“As active members of more than 1,000 communities large and small across Canada, Home Hardware owners and staff know how important hockey is to our national fabric,” said Paul Straus, vice-president and CEO of Home Hardware Stores Limited. “A new franchise will be a source of pride for all Canadians and we are excited by the possibility of creating more opportunities for Canada’s best players to play on their home ice, in front of home-town fans.”

(For more on the proposed new team, go to www.makeitseven.ca.)

Top.

Home Depot’s quarterly profit is attributed to two decisions to scale back its operations: it gained $117 million in operational profit in the quarter by closing its 34 Expo Design Centers; and its net income gain improved compared with the first quarter of 2008. At that time, the company took a $543 million charge to account for closing 15 stores and taking another 50 locations out of its expansion pipeline.

Even though its total customer transactions for the quarter fell by 1.3 percent to $310 million, and its same-store sales were off 10.2 percent, Home Depot saw good news in the gains made in what customers were spending, as average basket size jumped by 8.2 percent to $52.67. This gain is all the more important given the fact that, in recent months, Home Depot has gotten away from the heavy discounting of recent years and returned to an everyday low price strategy that had been its calling card.

Frank Blake, Depot’s CEO, said that he’s buoyed by his company’s recent customer satisfaction ratings, which indicate to him that Home Depot “is making progress.”

Lowe’s, which is based in Mooresville, N.C., reported a 1.5 percent decrease in revenue, to $11.53 million, for the three months ended May 1, and a 6.6 percent decline in same-store volume. Net income for the quarter was down 21.6 percent, to $476 million.

Robert Niblock, Lowe’s CEO, said that despite “intense” pressure on consumers, who are postponing many bigger-ticket purchases, the company continued to gain market share in several categories. As with Home Depot, the future at Lowe’s is looking a bit brighter. “In recent weeks, we have seen consumer confidence improve, housing turnover show signs of a bottom in certain markets, and home prices slow their decline,” said Niblock in a prepared statement. “These are all positive signs for the stabilization and ultimate recovery of home improvement industry sales.”

Top

Top

“We are starting 2009 the way we ended 2008 — with very good performance in our PEP program, including an improved gross margin, lower comparable inventories and reduced logistics costs. These factors have helped mitigate the impact of the current recession on our retail sales, which were affected by especially poor weather conditions in January and March,” says RONA president and CEO Robert Dutton. “We have considerably improved our balance sheet, with a significant reduction in our debt levels and financial costs this quarter.”

He admits that, despite improvements made under the PEP program, the current economic environment could continue to have an impact on earnings and same-store sales for the rest of the year.

“Given this context, we intend to vigorously pursue the various efficiency improvement measures ongoing under the PEP program, to stimulate sales and improve our efficiency over the next quarters. The company will remain very vigilant throughout the year and be ready to adapt its operating activities and capital investments to the specific economic conditions expected in 2009,” Dutton adds. Measures include a plan to reduce capital spending by nearly $50 million, or 25 percent, in 2009, and continued reduction of inventory and administrative costs.

Top

The mast itself was supplied by Delson, Que.-based Goodfellow, the lumber products supplier, in 2007. A 100-foot-long glue-laminated wood beam was used to construct the mast for the famous schooner. Made up of more than 4,000 board feet of Douglas fir, the mast weighs six tons.

The Bluenose was, for a time, the world’s fastest sailboat. It won the International Fisherman’s Trophy in 1921 and remained undefeated for 18 years. She was later sold as a freighter in the West Indies, and ran aground on a Haitian reef in 1946. Bluenose II was commissioned in 1963.

Top

TORONTO — Sears Canada Inc. reported total revenues for its first quarter ended May 2 of $1.12 billion, down 10.9 percent from $1.25 billion for the same period in 2008. Same-store sales decreased 10.4 percent. Net earnings for the quarter were $10.3 million, or 10 cents per share, down from $70.8 million, or 66 cents per share, a year ago. “The economic recession deepened during the first quarter, unemployment increased to 8.0 percent and the Consumer Confidence Index averaged 22 percentage points below last year. Considering the economic conditions, Sears delivered solid results and I commend our 33,000 associates for their contribution to these results,” says Dene Rogers, Sears Canada president and CEO.

OAK BROOK, Ill. — Growth in its warehouse shipments and better prices from suppliers helped Ace Hardware Corp. boost its net income for the first quarter of 2009 by 34.4 percent to $14.4 million. However, the co-op’s revenue for the quarter declined 2.2 percent to $851.2 million. The company also reported that its cash flow for the quarter fell slightly, to $30.9 million, from $31.2 million in the same period a year ago.

ATLANTA — Home Depot has put its entire floor staff through customer service training since the beginning of this year. The two- to three-hour course teaches staff to be more aware of, and more responsive to, customer needs.

Consumer prices rose 0.4 percent in the 12 months to April 2009, down from the 1.2 percent increase in March. While upward pressure on the Consumer Price Index (CPI) came primarily from food, the slowdown was due mainly to price declines for energy and reduced upward pressure from non-energy shelter components. Excluding food, the CPI fell 1.1 percent in the 12 months to April. Excluding energy, the CPI rose 2.4 percent over the same period. On a seasonally adjusted monthly basis, the CPI fell 0.3 percent from March to April, after falling 0.2 percent from February to March. (Stats Canada)

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 inssue!

• Weather, West affect RONA’s 1Q sales
• TruServ reports cautious optimism in first quarter
• Canadian Tire Retail sales up in first quarter
• Information, networking play key role at NHS
• PLUS: RONA to keep adding dealers, Home Outfitters opens more stores, Canadian Tire offers tax credit rebate, Wal-Mart to open new DC, Newell Rubbermaid starts hiring again, and more!
  

“I spent the afternoon musing on Life. If you come to think of it, what a queer thing Life is! So unlike anything else, don’t you know, if you really see what I mean.” —P.G. Wodehouse (Prolific British author and playwright, creator of characters such as the resourceful Jeeves the butler and dimwitted Bertie Wooster; 1881-1975)

However, there was good news, as well, as inventory levels continued to decline, distribution sales were up, and commercial sales continued to grow:

• distribution sales were up 0.2 percent through recruitment of new dealer-owners;
• higher sales to commercial and professional customers through the big-box stores network and RONA’s Commercial and Professional Market division in Ontario;
• an increase of 28 basis points in gross margin from 27.97 percent to 28.25 percent, and 72 basis points in adjusted gross margin;
• a $71 million or 7.3 percent reduction in inventories;
• a $222.3 million reduction in net debt, resulting in a 25.7 percent drop in interest expenses on long-term debt and bank loans, to $5.9 million from $7.9 million in 2008;
• ongoing store expansion, including the renovation of Réno-Dépôt stores in Anjou and Saint-Hubert, Que., the recruitment of six new independent dealer-owners, and a 180,000-square-foot expansion of its specialty plumbing distribution centre in Ontario.

Depreciation and amortization costs for the first quarter rose 6.7 percent to $24.9 million, from $23.3 million in 2008. This increase is due to new corporate store openings in 2008, store acquisitions, the renovation of existing corporate stores, and ongoing upgrades to RONA’s information systems.

(Note: RONA adopted revised accounting standards at the beginning of 2009, which affected its results as compared to the previous year. Click here for the company’s explanation of its new accounting standard.)

Top.

TruServ dealers began to bounce back in the spring, although, says Morrison, they retained “a little bit of caution. A lot of dealers were either flat or up or down 1-3 percent,” he noted.

Top

Arnett and Wetmore

Despite bad weather through much of the country during the first quarter, Canadian Tire stores enjoyed strong sales in automotive and leisure products. Mike Arnett, president of Canadian Tire Retail, said that consumers are “still behaving cautiously,” with “good” and “better” items selling more than “best” assortments. “But that’s what we’ve bought for,” he added, noting that the company was prepared for the shift. While seasonal product sales were very strong during the first quarter, the home core categories (hardware, plumbing and electrical, and tools) were down. The tool business worldwide has been soft, he said. “Our sales in tools have been flat, which means we’re likely getting an increase in market share, as the North American market is off by double digits.”

Same-store sales increased 2.5 percent over 1Q 2008.

In the first three months of the year, the retailer opened more of its new-concept formats. These included one Small Market store, which is part of an initiative to penetrate smaller markets with profitable retail footprints. In addition, it opened two Smart stores, which represent the new standard for Canadian Tire’s regular stores and replaces the previous 20/20 program.

The PartSource chain experienced double-digit growth, including, says the company, a strong same-store sales increase. One new hub store was opened during the first quarter, bringing the total number of PartSource outlets to 87.

At the company’s annual meeting last week, president and CEO Stephen Wetmore said his personal mandate is to strengthen a sense of customer service across the company.

Top

Left to right, Michael McLarney, John Tizzard, Greg Orloff, Larry Lucyshyn, Manuel Gonicman

The panel, all well-versed in the intricacies of specs, sourcing, and maintaining supply of product from suppliers in China, discussed how competitive factors in China are changing the way factories there do business. Issues like lead times, human rights, and the high cost of product recalls were all addressed.

The North American Retail Hardware Association (NRHA) teamed up with the show’s organizer, Reed Exhibitions, to create an All-Industry Summit. This ongoing event, located on a stage right at the entrance to the show, provided delegates with a wide range of seminars that included NRHA’s own research. Topics at the All-Industry Summit ranged from examining the impact of global economics on the home improvement industry to focusing on the impact of today’s green movement on the home improvement industry.

(If you missed the International Sourcing Session at NHS in Las Vegas, we’ve got good news for you. The session is being reprised in Toronto in mid June with a special industry update from 2Q HQR. Stay tuned.)

Top

TORONTO —Home Outfitters, the kitchen, bed and bath specialty chain owned by Hudson’s Bay Company, has added five new locations, bringing its nation-wide total to 67. The retailer hosted simultaneous grand-opening events on May 9, featuring special sales in each location. The new stores are in Victoria and Coquitlam, B.C.; Winnipeg; and Burlington and Vaughan Mills, Ont.

BENTONVILLE, Ark. — Wal-Mart Stores reported diluted earnings per share for the first quarter of fiscal year 2010 of $0.77. Net sales for the period were $93.47 billion, a decrease of 0.6 percent from $94.04 billion in the first quarter of last year. Without the negative impact of currency exchange rates, equal to $4.84 billion, net sales for the quarter increased 4.5 percent to approximately $98.31 billion on a constant currency basis.

ATLANTA — Net sales for Newell Rubbermaid for the first quarter ended March 31, 2009 were $1.20 billion, a 16 percent drop from $1.33 billion for the same three-month period a year earlier. Excluding acquisitions and foreign currency, sales declined approximately 15 percent domestically, and 14 percent for the company’s international business. However, Rubbermaid reports it has begun rehiring, and is looking to fill 165 positions worldwide. This comes just months after it announced it would lay off upwards of 1,000 people.

PARIS — Compagnie de Saint-Gobain has secured a new four-year bond issue valued at €750 million with an annual coupon of 6 percent. The bond issue will serve to refinance existing debt. Earlier this month, Saint-Gobain reported consolidated first-quarter sales of €8.78 billion, compared with €10.30 billion for the year-earlier period, a decline of 14.8 percent. Saint-Gobain, best known in this country as the parent of CertainTeed, is a €43.8 billion ($69.3 billion) company, with 209,000 employees in 59 countries.

MISSISSAUGA, Ont. — Walmart Canada will invest $115 million to build a distribution centre in Balzac, Alta. The 40,000-square-foot facility, which Walmart claims will be one of the largest refrigerated buildings in Canada, will serve as a distribution hub for fresh food destined for Walmart stores in Western Canada and represents the expansion of Walmart’s Supercentre format. The DC will open in late 2010 and will be operated by Canadian logistics firm Centric Retail Logistics. Walmart Canada says it has invested $220 million in the past year to modernize and expand its distribution network. The network now supplies 312 stores nationwide from eight distribution facilities.

CHARLOTTE, N.C. — Pro-Build Holdings has revealed it will close its corporate offices here, laying off about 65 people by the end of the year. The facility is one of four regional offices for Denver, Co.-based Pro-Build.

MINNEAPOLIS — Zareba Systems, the maker of electronic perimeter fence and security systems, reported net sales for the third quarter of $6.7 million, down from $7.0 million a year earlier. Net income for the third quarter was $78,000. Net loss was $489,000, or $0.20 per share. Net sales for the first nine months of fiscal 2009 were $20.5 million, compared with $22.4 million in fiscal 2008.  

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for only $4.06 a month per person?

Click the link below to spread the
news to your whole office!

• National Hardware Show attracts top Canuck buyers
• TSC tries out in-store rentals with Stephenson’s
• Home Hardware’s contractor customers remain positive
• PLUS: Wal-Mart’s results beat estimates, fraudsters plague Quebec stores, Henkel’s sales edge up, Home Depot abandons Hispanic website, BlueLinx suffers quarterly loss and more!
  

“The aim of education is the knowledge, not of fact, but of values”
—Dean William R. Inge (British clergyman, scholar and teacher, 1860-1954)

The show featured a strong showing by both domestic and international exhibitors.

Given the relatively stronger economy in Canada, Canadian buyers were out in force, a fact that was noted not just by the Canuck vendors who wished to do business with them, but by American exhibitors who expressed some amazement that the Canadian contingent was so strong this year. Buyers were present from Home Hardware and Canadian Tire, which brought seven and 10 buyers respectively, while Home Depot Canada and Lowe’s Canada also sent buyers. In addition, the independents were well represented, with buyers and retailers from IRLY Distributors, Federated Co-op, and Spancan among the many Canadians walking the halls of the Las Vegas Convention Center last week.

“Canadian presence has been very strong,” said Fergus Chapman, vice-president sales for RCR International in Boucherville, Que., even though, he added, overall traffic appeared to be lower than last year. Added André Daigle, president of RCR: “The Canadians are here to do business more so than the U.S. and international retailers.”

Our man Brady Peever (he’s the one on the right) looking for new products.

However, the sheer size of the show managed to make up for the lower numbers. Another Canadian exhibitor, Alain St-Cyr, vp sales and marketing for Victoriaville, Que.-based Saman, said, “The show is good. The U.S. market is so large that there are always more people to meet and new potential customers.” For James Mumby of Dynamic Paint, Missisauga, Ont., the show was so busy that he didn’t have time for a break on the first day, with existing customers and prospects alike requesting information on his lines of paint sundries.

One of those potential customers was Robert Sim, who drove over from the Ace Hardware store he manages just down the road. He took time off to check out the new products and meet some suppliers. Akhtar Ismail travelled considerably farther, however. His company, Amalgamated Textiles, is based in Karachi, Pakistan. Ismail sells “a lot of canvas drop cloths in the U.S.,” he says. “I get to meet my customers all under one roof. To keep in touch and to show my face, this is a good place to meet a lot of people.”

Top.

In July of 2007 EdgeStone Capital Partners, a private equity manager, became the principal shareholder of Stephenson’s. EdgeStone is keen to invest and support future Stephenson’s growth initiatives whether through fleet expansion, new market penetration, or acquisitions.

The partnership is expected to increase traffic and sales in existing TSC stores. “The venture also allows us to leverage the tremendous investments that we have made over the last several years in our store network to increase our revenue productivity per outlet,” says David Roussy, president and CEO of TSC Stores L.P.

TSC Stores operates 42 corporate stores in Canada. Its 40th location in Ontario just opened last month in Uxbridge. TSC has two more stores in Manitoba.

Top

Many of the contractors polled pointed out the success of the 15 percent home renovation tax credit from the Federal government as an incentive to spur business. “People are getting on board with the federal tax credit and probably 90 percent of our prospects have questions about how they can qualify,” says renovator Laverne Brubacher of Menno S. Martin in St. Jacobs, Ont.

In addition to the tax credit, contractors are feeling the positive effects of the lowest interest rates in modern history, even as formerly red-hot markets such as Western Canada have cooled to more normal levels. “Did we really need a fifth record breaking year in a row? I will be using this year as a time to catch up, clean up and to refocus on the core values of my company, says Tim Kasten, a builder from Kamloops, B.C.

Top

GATINEAU, Que. — Shoppers at Quebec big-box stores are becoming increasingly victimized by fraudsters who steal their credit-card information during and after checkout. A credit-card fraud ring is preying on unsuspecting shoppers, especially elderly women, watching them enter their PIN numbers in-store, then chatting them up in the parking lot, during which they steal the victim’s cards. The suspects have been described as speaking French with a foreign accent, possibly from Romania.

MISSISSAUGA, Ont. — Wal-Mart Canada is introducing a packaging scorecard to assess suppliers based on their packaging, including the quantity and qualities of materials used. Scorecard results will play a role in the company’s decision to stock products going forward.

ATLANTA — Home Depot has pulled the plug on an online marketing strategy designed to woo more Hispanic customers. A Spanish-language website that was started in November last year has been discontinued after just six months because sales have not met company expectations. Home Depot launched it during the busy holiday season, but sales have not maintained enough momentum to justify the time and money being spent to maintain the site. In fact, the Spanish-language site was attracting more viewers from countries that Home Depot doesn’t do business in.

BENTONVILLE, Ark. — Wal-Mart Stores reported net April sales of $29.85 billion, an increase of 2.4 percent. Same-store sales were up 5 percent, with same-store sales up 5.9 percent for its U.S. stores. The company expects to report total net sales for the fiscal quarter ended April 30, 2009 of approximately $93 billion. Total sales at Wal-Mart Canada increased in the high single digits for the period, while same-store sales were in the low single digits.

NEW YORK — Home Depot has opened a 121,000-square-foot store in the Bronx at a giant new retail development, the Gateway Center at Bronx Terminal Market, which is near Yankee Stadium. The one-million-square-foot retail project was hailed by New York City’s mayor, Michael Bloomberg, as a “milestone in the ongoing renaissance of the South Bronx.”

MOORESVILLE, N.C. — A Lowe’s shareholder wants the company to re-incorporate in North Dakota, considered “a more shareholder friendly state” that would improve the retailer’s governance. John Chevedden, of Redondo Beach, Calif., intends to submit the shareholder proposal at Lowe’s annual meeting on May 29. The company’s board has recommended voting against the proposal. Lowe’s has two stores in North Dakota.

DUSSELDORF, Germany & ROCKY HILL, Conn. — Henkel increased first-quarter sales over the prior-year quarter by 3.1 percent to €3.26 billion ($5.1 billion). The rise was attributable to Henkel’s acquisition of National Starch in April 2008; however, adjusted for foreign exchange and acquisitions, sales decreased by 7.0 percent within a difficult overall market environment. After adjusting for foreign exchange, the increase in sales was 3.8 percent. Henkel’s Adhesive Technologies business sector suffered from an organic decline in sales of 18.2 percent.

Contractors took out $4.5 billion in building permits in March, up 23.5 percent from February, halting five consecutive monthly declines. March’s increase came mainly from the non-residential sector in Ontario, Quebec and Alberta. Intentions in the non-residential sector rose 47.9 percent to $2.3 billion, again due largely to increases in Ontario, Quebec and Alberta. (Stats Canada)

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for only $4.06 a month per person?

Click the link below to spread the
news to your whole office!

• TruServ keeps communication open with other groups
• TIM-BR MART outlines Ace strategy to Quebec vendors
• RONA reaffirms commitment to sustainable development
• Home Depot helps consumers to “green” their homes
• Plus: Can-Save forms partnership, RONA billboard comes to life, Home Hardware gets hip with new TV ad, B&Q offers corporate card, Home Depot creates scholarship, Opasini bids farewell, Ace invades Atlanta, and more!
  

“Even if you’re on the right track, you’ll get run over if you just sit there.”
—Will Rogers (American humorist, social commentator and actor, 1879-1935)

Paul Straus, vice-president and CEO of Home Hardware Stores, would not comment but did note, “True Value and Home Hardware are both part of Interlink Group [an international association of dealer-owned co-op hardware dealers, which also includes Do-it Best and Mitre 10] and we’ve shared an exchange of information at our last international meeting.”

Morrison says TruServ will continue to explore opportunities with other groups representing independents, like the one made with Castle. “Castle members want to grow with strong vendor partners who have mutual objectives,” says James Jones, vp of national marketing for Castle Building Centres. “TruServ Canada fits this nicely in the hardware category.”

TruServ Canada, with distribution in Winnipeg, has some of Canada’s most efficient warehousing, product buying and distribution systems. The company operates a range of retail banners: True Value, V&S and Country Depot stores. ( www.truserv.ca)

Top.

Ace is being supported in Quebec with a full marketing program that includes flyers, as well as radio, print and television advertising. In addition, Ace members benefit from the combined buying power of TIM-BR MART under that group’s membership in Spancan, the giant hardlines buying group.

The central message from Otto was that it’s business as usual as the Ace banner expands under TIM-BR MART’s direction. “For clarification on who vendors should present their programs to regarding Ace branded stores that are members of TIM-BR MART, it is status quo,” he says. “Vendors should continue to present programs to their contacts at CanWel and Spancan, as they have always done in the past.”

Top

On July 1, all RONA stores will stop selling synthetic pesticides for cosmetic, or household, use. And after extensive consultation with the lumber industry and environmental groups, RONA adopted a new wood products procurement policy in 2008. The policy has been recognized by Greenpeace as “the most demanding in North America.”

Top

• purchasing recyclable or biodegradable and organic products (25 percent);
• purchasing energy efficient light bulbs (24 percent); and
• using recycling and compost bags (22 percent).

The Canadian Green Home Index highlights a few easy fixes Canadians can incorporate into their daily lives. For example:

• only nine percent of consumers have purchased green household cleaning products in the last six months;
• just seven percent turn off lights or appliances when not being used;
• a mere six percent report curbing water usage at home; and
• despite the current trend to encourage reusable shopping bags, only seven percent of Canadians admit they’ve adopted this practice.

Home Depot Canada stocks more than 1,600 Eco Options products, including compact fluorescent light bulbs, Energy Star appliances, natural lawn and garden products, solar garden lights, and energy efficient fixtures.

Top

BARRIE, Ont. — Can-Save, the specialty building materials distributor, has forged a new partnership agreement with Architectural Ornament, a manufacturer of high-density polyurethane interior and exterior decorative mouldings. Architectural Ornament’s collection of crown mouldings, ceiling medallions, chair rails, exterior trim, and entranceway systems replace sculptured plaster. (Can-Save and Architectural Ornament will be presenting several programs at the Can-Save Expo 2009, May 28.)

MONTREAL — A billboard that went up here last week was a live ad for RONA’s new paint recovery program. This ad, which riffed on an existing Apple billboard and is part of the retailer’s new “Doing it Right” campaign, was erected at the entrance to Jacques-Cartier bridge during the early morning last week, creating a sort of ad as theatre. It’s pretty cool. Check it out on Youtube.

ST. JACOBS, Ont. — Building on its home town roots, Home Hardware’s latest TV ad features its own dealers and the co-op’s new slogan, “Home Owners helping homeowners”. The ad is hip and fast-paced, reflecting an apparent thrust to a younger market. Check it out on Hardlines TV.

LONDON — Britain’s largest DIY retailer, B&Q, has introduced a reloadable gift card for corporate use. The card is intended for companies that wish to motivate or reward staff for improved performance. The card’s features include remote activation. It’s part of the company’s new Business Services division, which will provide support services such as design and copywriting, fulfilment, and distribution of the incentive program.

ATLANTA — Ace Hardware, the largest independent hardware chain in the U.S., is moving into the metro Atlanta market — where its big-box rival, Home Depot, is headquartered. Ace is opening four stores in the city this year, after opening four stores last year, according to The Atlanta Journal-Constitution. Considered by Ace to be the fastest pace of growth for the area in many years, another eight store openings are planned over the next two years.

ATLANTA — In an effort to cultivate future leaders for the building and construction fields, Home Depot has set up a new trade scholarship program that will award more than $300,000 to 600-plus students who are enrolled in industry-related programs this fall. The company stated that the program is open to students across the U.S., who are in their final year in a building or construction trade program at a college, university or other accredited institution.

TAYLOR , Mich. — Masco Corp. has reported that net sales from continuing operations for the quarter ended March 31, 2009 declined 26 percent to $1.8 billion, vs. $2.5 billion for the first quarter of 2008. North American sales declined 24 percent and international sales were down 31 percent.

DALLAS — Pro dealer Builders FirstSource reported a net loss of $30.6 million for the three months ended March 31. That compares to a $15.8 million loss for the same three months a year earlier. During the first quarter, the company’s 57 yards generated $163.8 million in revenue, or 37 percent less than the same quarter in 2008.

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for only $4.06 a month per person?

Click the link below to spread the
news to your whole office!

• Home Hardware presents new initiatives at latest market
• Quebec Pro dealers make the switch to Ace
• RONA outlines achievements and initiatives at AGM
• Home Depot offers rebate when replacing old mowers
• Plus: Another site for Lowe’s Canada, new Reno-Depot opens, ABSDA and Home Hardware appoint new chairs, home improvement retail sales up
  

“To be persuasive, we must be believable; to be believable,
we must be credible; to be credible, we must be truthful.”
—Edward R. Murrow (American broadcast journalist, 1908–1965)

“The good thing about the market is that the dealers come from across the country,” said Paul Straus, vice-president and CEO of Home Hardware. “They all said they were getting busy. I didn’t hear any negative comments, even from dealers in Alberta, who weren’t really discouraged, even with the slowdown after years of tremendous growth.”

To support those dealers, Home unveiled a number of marketing programs at this market. The initiatives were building on Home’s new tag line, introduced at the co-op’s last show in September 2008, “Home Owners Helping Homeowners”. The slogan has been identified as a way to reflect the organization’s focus on ownership by independents, differentiating them from other chains and big boxes.

Highlights of the market included:

• Expansion of Home’s DIY project planning software, HomeWorks, to include paint matching and colours tied in with Home’s own Beauti-Tone paint range;
• Beauti-Tone has also introduced a new line of VOC-free paint under Home’s eco-friendly private label, Natura;
  

  Two hardware divas: Bev Allen of Hardlines welcomes Home’s celebrity chef Anna Olson.

• Anna Olson, Food Network host, celebrity chef and cookbook author, joined the Home team as the retailer’s new Kitchen Expert back in March. Dealers got to meet Olson at the market on April 21, where her involvement with Home Hardware got its official launch.
• Gardening guru Mark Cullen put his name to a new store accreditation program. The accreditation identifies Home dealers with top-notch garden centres that become Mark Cullen approved;
• a new hand-held ordering system was introduced at the show as part of Home’s own Prism POS system. It replaces the older Palm Pilot technology;
• the HomeInstalls program is also gaining momentum. According to Jack Baillie director of marketing, about half the dealers are already involved in the installed services program. Now, they have support of dedicated software to help guide that business. “The program helps dealers really be in the home renovation business,” he noted.

“While many companies are dialing back their marketing programs, we’ve been busy working with strategic opportunities that position Home for future growth,” said Straus. “We are well-positioned to weather the current economic storm, and this year’s Spring Market is just another example of the size and strength of our network.”

Top.

At the time of the announcement, made during the Pro Retail Services dealer market in Montreal in December 2008, Pro dealers were told of the opportunity to convert to Ace, but were given the choice of remaining with Pro. Pro flyers were even guaranteed to continue throughout 2009. However, even by then, plans were in place to implement a wholesale conversion of Pro dealers to Ace.

The conversion of these independents within Quebec to the Ace Hardware banner makes for a good fit in that province, where most of the independents in question are Pro dealers who already belong to TIM-BR MART.

But not all of these independents are TIM-BR MART members. Rival buying group Castle Building Centres has seven members now in Quebec, including its original member there — and a long-time Ace dealer — Hudson Ace. Owner Jack Crombie has high praise for the Ace program. It provides, he says, an important range of products and a well-known brand for his customers in the affluent community of Hudson, near Montreal.

(If you’re trying to figure out how all the buying groups and distributors are interconnected, you need the Amazing Buying Group Org Chart, which appeared in the latest Buying Group Report in our sister publication, HQR. Call us at the World Headquarters for more info. —Michael)

Top

In the current economic climate, RONA President and CEO Robert Dutton reiterated the importance of maintaining and fostering the company’s values to guarantee its sustainability. He also noted that, over the past 70 years, RONA has reinvented itself repeatedly to adapt its business model to the constantly changing needs of consumers. “RONA will be 70 this year, but you would never know it judging by our extraordinary vigour and energy, not to mention our appetite for growth,” said Dutton. He cited, among the company’s efforts to renew and innovate, everything from responsible procurement policies, optimization of the supply chain, and growth in private-brand sales to accelerated dealer recruitment and new store design.

RONA continues to focus on its PEP program to guide its fortunes through the recession. Phase one of the program, which addresses everything from channel management to training, was introduced at last year’s AGM. As a result of PEP initiatives, RONA increased its adjusted gross margin by more than 100 basis points, at base-weighted distributions, thanks to better management of product categories, increased sales of private brand products, reduction of store losses, and continued improvement of purchasing conditions with suppliers.

Optimization of the supply chain is another essential aspect of the PEP program. Inventory shrank by $118 million, or nearly 14 percent, in 2008, while logistics costs were reduced by $6 million.

The third component of the PEP program is the accelerated recruitment of affiliate dealer-owners. Recruitment is considered so critical to RONA’s continued growth that this function has come under Dutton’s direct responsibility. Last year, the affiliate dealers posted same-store sales growth of 3.8 percent, making them the key source of positive growth for the company.

The company counted among it accomplishments in 2008:

• a 10 percent increase in private-brand sales, with that category now accounting for 17 percent of sales;
• an increase in sales related to installation services of more than 20 percent;
• a 10 percent increase in purchases by Air Miles customers; and
• the new RONAdvantage program, which tops up government renovation tax credit programs set up by the federal and Quebec governments with additional rebates in the form of RONA gift cards.

RONA is also counting on its diversified points of sale to help it weather the economic storm. Along with more than 700 retailers, the company has a growing presence in the industrial and commercial markets. To capitalize on this advantage, RONA intends to further diversify its commercial and professional market division.

Top

The small two-stroke gas engines found in lawnmowers, trimmers, leaf blowers and chainsaws are a significant source of greenhouse gas and smog-forming emissions. Environment Canada estimates emissions from lawn and garden equipment comprise approximately 20 percent of all smog produced by mobile sources in Canada. A standard gas mower can emit the same amount of common air pollutants in one hour as driving a new car almost 500 kilometres.

Top

CHICAGO — USG Corp., the leading gypsum wallboard supplier, lost $42 million during the first three months of 2008, compared to a $41 million loss in the same quarter a year ago. Revenue for this period was down 26 percent to $864 million. The company’s wallboard production fell 38 percent to 1.3 billion square feet, and its plants operated at about 53 percent capacity during the quarter. Sales at USG’s distribution business, L&W Supply were down 28 percent. The corporation’s worldwide ceilings business was also off 19 percent in sales and 18 percent in operating income.

NEW YORK — Sherwin Williams has a new slogan that’s actually old. According to the New York Times, the line “Ask Sherwin-Williams” was first used 25 years ago. The “new” motto is being supported by a $40 million television ad campaign. Although Sherwin-Williams identifies its customer base as ranging from 25-54 years in age, the new campaign is taking direct aim on the 25-35 year old customer, which is considered to be more used to shopping at a big box store for paint.

GRAND RAPIDS , Mich. — The building products distributor Universal Forest Products reported a $1.16 million net loss for the quarter ended March 31. That’s a significant improvement over the $4.4 million loss it reported for the same three months a year ago. During the quarter, Universal’s revenue fell 26.1 percent to $361.7 million. Universal’s sales to retailers, which represented 46 percent of its total quarterly revenue, fell by only 4.1 percent to $168.1 million, whereas its “site-built” business with single-family homebuilders tumbled 43.2 percent to $60.8 million, and its manufactured housing business fell by 52.2 percent.

ECONOMIC INDICATORS

Affected both by export sales and weaker domestic demand, wholesale sales fell 0.6 percent to $41.0 billion in current dollars in February. (Stats Canada)

Free daily news updates

Did you know you can have this newsletter sent to someone else in your office for only $4.06 a month per person?

Click the link below to spread the
news to your whole office!