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Archives
February 8, 2010
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January 4, 2010
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Dec. 21, 2009
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Phone: 416-489-3396 Beverly Allen, Publisher Brady Peever, Client Services Manager John Caulfield, Contributing Editor |
December 21, 2009, Volume xv, #48 |
Next Issue of Hardlines: January 4, 2010 Here are some of the things we’re working on for 2010 to help you: |
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Johns Manville Hardlines Dealer Conference at LBMAO Show | ||||||||||||||||||||||||||||
The Second Annual Johns Manville Hardlines Dealer Conference will be held in association with the Canadian Home Improvement Show FEBRUARY 11 & 12, 2010. The purpose is to help dealers sell smarter: two information-packed mornings that will help dealers build their business and increase their profits.Dynamic keynote speakers and targeted breakout sessions will cover a range of topics vital to the growth of the retail home improvement dealer:
At the Toronto Congress Centre. Click here to register. Top. |
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Annual Big Box Report gives the lowdown on Home Depot and Lowe’s | ||||||||||||||||||||||||||||
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Access to Must-Attend shows for 2010 — Cologne in February, Vegas in May | ||||||||||||||||||||||||||||
Hardlines is involved in two very important international trade shows: our renowned Canadian International Reception at the International Hardware Fair in Cologne, Germany, Feb. 28-March 3 and our presence at the National Hardware Show in Las Vegas, May 4-6, 2010 | ||||||||||||||||||||||||||||
Helping you understand the market better | ||||||||||||||||||||||||||||
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Detailed market share information now available | ||||||||||||||||||||||||||||
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This Report is our hottest seller of 2009. Click here for more info |
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Who’s Who Directory of key customers | ||||||||||||||||||||||||||||
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Dec. 14, 2009
Click here for the blackberry/printable edition
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Phone: 416-489-3396 Beverly Allen, Publisher Brady Peever, Client Services Manager John Caulfield, Contributing Editor |
December 14, 2009, Volume xv, #47 |
In This Issue:
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“Scrooge was better than his word. He did it all, and infinitely more; and to Tiny Tim, who did not die, he was a second father. He became as good a friend, as good a master, and as good a man, as the good old city knew, or any other good old city, town, or borough, in the good old world.” —Charles Dickens (Victorian British author, in the final passages of “A Christmas Carol”) |
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Best Wishes from the World Headquarters: We want to thank you all, our Faithful Subscribers, for your support through what has been a tough, challenging, exciting year. Have a very merry Christmas, a happy Chanukah, and any other way you will look for peace and contentment with your family and friends over the coming weeks. See you again in the New Year! —Beverly, Brady, Chiaki and Michael Our Holiday publishing Schedule: There will be no issues on Dec. 21 or 28. Then the next issue is Jan. 5, 2010. However, the World Headquarters remains open until Dec. 21. —Michael |
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CanWel buys rival distributor Broadleaf | ||||||||||||||||||||||||||||
VANCOUVER — CanWel Building Materials Income Fund will acquire rival building materials distributor Broadleaf Logistics in a deal worth $80 million. CanWel is offering $20 million in cash, 10.25 million CanWel shares and a US$18.5 million secured subordinated promissory note to acquire Broadleaf from Rudy Holding II SARL. The total purchase price is subject to a number of post-closing adjustments based on the relative amounts of net working capital of CanWel and Broadleaf.CanWel had 2008 sales of $803.9 million. Broadleaf has similar sales, supported by 270 employees at 14 distribution centres across the country. Broadleaf will be rolled into CanWel’s own building materials distribution business, and the combined company will be called CanWel-Broadleaf. The new combined business is expected to represent about $1.5 billion in sales, making it the largest LBM distributor in the country.
In anticipation of the deal’s closing later in the spring of 2010, CanWel is also converting from an income trust into a dividend paying corporation called CanWel Holdings Corporation. The change anticipates new regulations coming into effect in January 2011 that will eliminate the tax advantages of income trusts. To help finance the deal and the corporate conversion, CanWel is placing, through GMP, on a bought deal basis, 13,158,000 subscription receipts at $3.80 apiece, for a total of $50 million. The placement will also go to repaying debts and for general corporate purposes. Top. |
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Lowe’s confirms locations in Western Canada | ||||||||||||||||||||||||||||
TORONTO — Lowe’s Canada has announced plans for continuing its growth in the Canadian marketplace. Three stores have been confirmed for the Calgary region: a 159,500-square-foot outlet in the East Shepard Industrial Area/McKenzie Town area, one located at CrossIron Mills in the County of Rocky View, and a third in the Sunridge Industrial Area.The company also has plans for British Columbia and Saskatchewan. Most of these new stores will use Lowe’s smaller footprint, 103,000 square feet plus a 30,000-square-foot garden centre.
Lowe’s has plans to open 35 to 45 stores in North America in fiscal 2010; at least nine of those will be Canadian sites. |
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Lowe’s completes latest round of openings in Canada | ||||||||||||||||||||||||||||
OTTAWA & SUDBURY, Ont. — The latest round of openings by Lowe’s Canada is occurring just before year end, exactly two years after Lowe’s opened its very first stores in this country.The latest opening was in Sudbury, representing the first store in Northern Ontario. It is located across the street from a Home Depot, in a city that already sports a Real Canadian Superstore and a Wal-Mart. The At 103,000 square feet plus a 30,000-square-foot garden centre, it is a little smaller than the regular Lowe’s store, and reflects Lowe’s move to a smaller footprint.![]() A store in the Ottawa market (Orleans) opens this week, with the grand opening on Dec. 18. Located on Innes Rd., it becomes the chain’s 16th in this country. (Full details of Lowe’s expansion plans are in the latest Big Box Report, coming soon in the next edition of our sister publication, Hardlines Quarterly Report!) |
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Home Depot announces Martha Stewart paint, Eco lines | ||||||||||||||||||||||||||||
TORONTO — Home Depot continues to develop new products for the Martha Stewart Living brand. The partnership with Martha Stewart Living Omnimedia, Inc., was announced in mid-September, and promised a line of outdoor furniture, storage products and home décor.The latter has materialized as an exclusive Martha Stewart Living brand of interior and exterior paint. The paint is being manufactured by AkzoNobel and will consist of 280 colours created by Martha Stewart and the MSLO design team. In addition, the interior colours will be available in eight-ounce tint-able testers, and 12 of “Martha’s Picks” will be available pre-tinted.
The Martha Stewart Living Paint will be available at The Home Depot stores across Canada in March 2010. Home Depot will also sell Martha Stewart Clean, a new Eco Options-certified line of cleaning products, developed with and marketed by the Hain Celestial Group, Inc. The retailer is working with MSLO to develop additional products that will be available in 2010, with more details promised in the first part of the New Year. |
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Richelieu makes two acquisitions | ||||||||||||||||||||||||||||
MONTREAL — Richelieu Hardware Ltd., the specialty hardware and building products distributor, has acquired two companies. The first is Paint Direct, a Calgary-based distributor of finishing products, stains, lacquers and various other paint products. This acquisition brings Richelieu’s Canadian network to 30 distribution centres.In the United States, Richelieu has acquired Syracuse, N.Y.-based Woodland Specialties, a distributor of hardware products, high-pressure laminates, finishing products and other complementary products targeted mainly at kitchen cabinet makers and the commercial woodworking segment. This acquisition expands Richelieu’s geographic market and increases its U.S. distribution network to 18 centres. The two recently closed acquisitions add annual sales of approximately $6 million to Richelieu’s revenues.
It has also signed an agreement to complete another unnamed acquisition that’s expected close in January 2010. |
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Lowe’s introduces California energy information centres | ||||||||||||||||||||||||||||
MOORESVILLE, N.C. — Lowe’s is positioning itself as a “go-to” retail destination for energy conscious Californians with the introduction of Energy Centers in 21 California stores. The Energy Center is designed as a one-stop destination to help customers create an energy plan that fits their budget and home improvement goals.An information kiosk offers a touch-screen display to help customers evaluate energy needs, and the Energy Center features products that offer alternative energy solutions.
The Energy Center outlines three ways for customers to save energy and money: measure how much energy they use or lose with power monitors and other devices; reduce energy consumption by using CFLs and other money-saving products; and generate and use renewable energy with solar panels. Lowe’s claims to be the first major retailer in the U.S. to offer many of these products in one place and to stock and sell grid-connected solar panels in stores. (In Canada, TIM-BR MART dealers have been positioning themselves as energy experts with staff training and a mandate from head office to buy “green.”) |
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DID YOU KNOW…? |
That we get a LOT of calls every week from marketers asking for the size of the market, the market share of Lowe’s and Home Hardware and RONA and Home Depot, an explanation of how the buying groups are organized — and how they differ, and what we forecast for business conditions for next year. So we’ve put just about everything we know about the Canadian home improvement market into one monster PowerPoint presentation, The Annual Home Improvement Retail Report. Click here for more info! —Michael |
NEWS IN BRIEF |
QUEBEC CITY — BMR le Groupe honoured Connie and Jean-Guy Lasalle, owners of the centres de rénovation Matériaux JLS in Fort-Coulonge and in Bryson, by awarding them the “Prix Fierté 2009.” At BMR’s recent dealer show here, Yves Gagnon, president of the wholesaler and buying group (r), presented the couple with the award, recognizing their achievements and involvement within the group. Matériaux JLS joined BMR in 2001. The two home centres total some 12,000 square feet of retail space offering a welcoming shopping environment, well known to its customers for quality service and excellent advice — hence the award. MONTREAL — RDTS, the rep agency and instore detailing service, celebrated its 15th anniversary at the Hyatt Regency here during the recent RONA show. Almost 200 people were on hand to join RDTS head Robert Di Tomasso, (shown here with his father and mentor, Richard), who has guided the company through a turbulent, dynamic decade and a half to become a national presence that has made technology advances, strategic alliances, and become the first company of its kind in North America to obtain ISO certification. VANCOUVER — Taymor, the builders’ and decorative hardware supplier, was awarded a top prize of a Black ribbon for the Most Creative Tree at the Festival of Trees at the Four Seasons BERLIN — EDRA, the European DIY Retail Association, has become an independent body. In a meeting held here recently, the new association was officially formed. In the past, it had been administered by the DIY associations in France (FMB) and Germany (BHB). Our old friend, John Herbert (centre), has been appointed general secretary of the Association, which has members from 18 countries that operate in 38 countries. It was also agreed at the inaugural meeting that EDRA will now open its doors to form a Global Home Improvement Network, allowing members outside Europe to become associate members and to benefit from the affiliation of the EDRA network. (For more info, contact: morgan@edra-online.org.) BOUCHERVILLE, Que. — RONA has been rewarded for its wood products procurement policy by the Canadian Boreal Initiative in Ottawa. RONA was one of six winners selected by a committee of the Boreal Leadership Council, which is made up of leading conservation groups, Aboriginal organizations, and businesses committed to taking action to preserve the boreal forest. RONA was recognized for its leadership in developing and implementing an ambitious procurement policy for the wood products sold in its stores. CHICAGO — Industrial supply distributor W.W. Grainger Inc. has purchased a 1 million-square-foot distribution centre in the Chicago suburb of Minooka, Ill. It will relocate an existing distribution facility in Niles, Ill., to the new site by 2012. TORONTO — RONA Inc., in partnership with Maple Leaf Sports & Entertainment and the MLSE Team Up Foundation, has fixed up another sports facility in the GTA. The newly refurbished Ramsden Park Rink is the 10th completed project as part of the MLSE Team Up Foundation Hockey Rink Legacy Program. ISSAQUAH, Wash. — Costco Wholesale Corp. had November net sales of $6.04 billion, an increase of 9% from $5.55 billion. The company reported year-to-date net sales of $18.57 billion, an increase of 6%. MONTREAL — Are we in the wrong business? Dollarama Inc. reported significant increases in sales and net earnings despite the economic downturn. Sales increased 14.8% in the third quarter and 15.0% year-to-date. Same-store sales grew 7.3% in both the third quarter and the
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PEOPLE ON THE MOVE |
Duncan Fulton has been hired as vice-president, corporate affairs at Canadian Tire Corp. He most recently general manager and senior partner at Fleishman-Hillard Toronto; before that he was advisor and spokesman for Prime Minister Jean Chrétien, press secretary for Premier Dalton McGuinty, and communications assistant for former Premier Frank McKenna in New Brunswick. |
ECONOMIC INDICATORS |
Retail sales in November increased 1.3% from October and rose 1.9% from November 2008, to $352.1 billion. Excluding autos, retail sales increased 1.2% from the previous month and rose 1.3% from the prior year, to $292.1 billion. (Commerce Dept.) The value of building permits rose 18.0% in October to $6.1 billion. In the residential sector, the value of permits climbed 3.8% to $3.4 billion, the third consecutive monthly increase. Ontario and Quebec accounted for much of the growth seen at the national level. In the non-residential sector, municipalities issued permits worth $2.7 billion, up 42.4% following a 9.2% decline in September. (Stats Canada)
Housing starts reached 158,500 units seasonally adjusted in November, a 0.07% increase from 157,400 starts in October. Urban starts increased by 0.7% to 141,100 units. Urban multiples were down from 72,500 units in October to 71,300 units. Single urban starts increased by 3.4%. Urban starts increased by 10% in Quebec, by 8.2% in the Prairies and by 6.2% in British Columbia. The rate of urban starts decreased by 8.3% in Ontario and by 9.8% in Atlantic Canada. (CMHC) |
OVERHEARD… |
“I think we’ve raised the bar on home improvement in Canada.” — Alan Huggins, president of Lowe’s Canada. He was speaking last week in a TV interview on BNN, following the announced expansion of Lowe’s in Western Canada. |
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Hardlines Product Updates
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Hardlines Quarterly Report – Just released!Hardlines Retail Report – Hot off the keyboard!
Hardlines Market Share Report – New! Just Released! |
Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue! |
click here to add additional subscribers now! |
Dec. 7, 2009
Click here for the blackberry/printable edition
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Phone: 416-489-3396 Beverly Allen, Publisher Brady Peever, Client Services Manager John Caulfield, Contributing Editor |
December 7, 2009, Volume xv, #46 |
In This Issue: | ||||||||||||||||||||||||||||||
“I was seldom able to see an opportunity until it ceased to be one.” |
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Our Holiday publishing Schedule: Hardlines will publish once more next week, Dec. 14. There will be no issues on Dec. 21 or 28. Then the next issue is Jan. 5, 2010. However, the World Headquarters remains open until Dec. 21. —Michael |
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RONA announces dealer friendly programs at show | ||||||||||||||||||||||||||||||
MONTREAL — At its dealer show held here last week, RONA CEO Robert Dutton unveiled a program to invest in the development and succession plans for young dealers. The plan calls for a $100 million investment over 10 years.The show also played host to a range of new product programs. An automotive department focusing on accessories and small maintenance projects is one of the departments, which came about as a result of the needs of RONA’s growing ranks of independent, or “affiliate,” dealers. Those dealers also welcomed the introduction of a range of kitchenwares and small appliances and a workwear department. “These categories won’t appear in our big boxes,” said Normand Dumont, evp merchandising for RONA.
A line of indoor furniture was also new at this year’s show. RONA is also expanding its private-label offerings, introducing a new UberHaus private brand for a range of products. The line, says Dumont, will complement the existing RONA brand, and be applied to a wider range of RONA’s proprietary products being sourced directly from China. Top. |
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Canadian Tire money gets a special limited-time promotion | ||||||||||||||||||||||||||||||
![]() He did say, however, that the program is going to get re-launched in spring 2010, but that the final look of the program has not been defined. “It’s still in the research and development stage,” he says. |
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DID YOU KNOW…? |
…that the market share and sales and market share of every retail banner in the country is now available from Hardlines? The Hardlines Market Share Report is now available. Click here for more info and to get your copy now! —Michael |
Home Depot sees industry turnaround in sight |
CALGARY — The Video Challenge, a promotion launched by the LBM buying group TIM-BR MART in September, invited minor league hockey teams to video their team spirit, showing why they should win a trip to the 2010 World Juniors. The Pas Huskies of Manitoba have won TIM-BR MART’s World Junior Hockey Video Challenge and will go to the games in Saskatoon Dec. 27-29.TORONTO — Home Depot Canada admits that the first half of the 2009 calendar year was tough for the giant home improvement retailer. But, says Gino Digioacchino, vice-president merchandising, “During the latest quarter, things are getting better, and we’re starting to see it turn around.”
VANCOUVER — The Futura Corporation has increased its ownership of Tree Island Wire Income Fund, in connection with the private placement completed by Tree Island a day earlier. Already the majority unitholder in Tree Island, Futura has been critical in the past of that company’s management. With Futura’s latest investment, it has acquired $3,750,000 principal amount of 10% second lien convertible debentures. And he is optimistic about what lies ahead for the industry, and for Home Depot. “From the outside, those are great signs,” says Digioacchino. “From the inside, I have to say I’ve never felt better about the business.”
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NEWS IN BRIEF |
ST. JACOBS, Ont. — As national sponsors of SickKids Foundation, Home Hardware dealers are once again this year stocking a special charity calendar in support of SickKids Foundation. Established a decade ago, the campaign has raised more than $1 million for SickKids Foundation during that time. So far this year, $128,000 has been raised from sales of the 2010 calendar and a cheque was recently presented as a charitable donation to Ted Garrard, president and CEO of SickKids Foundation. MONTREAL — Richelieu Hardware Ltd. has closed two new acquisitions in North America and signed an agreement to complete another acquisition that should close in January 2010. Richelieu has acquired Calgary-based Paint Direct, a distributor of finishing products, stains, lacquers and various other products. In the United States, Richelieu has acquired Woodland Specialties in Syracuse, N.Y., which distributes hardware products, high-pressure laminates, and other products for kitchen cabinet makers. TORONTO — Certainteed launched a “Be Certain” brand building initiative throughout Canada at the recent Construct Canada trade show. There, the giant distributor was showcasing a range of products which aimed to reflect the new slogan. “Be Certain is an easy and recognizable way to raise awareness of our brand name with the trades and consumers throughout the provinces,” says Eric Nilsson, vice-president of corporate marketing for CertainTeed Corp. The campaign will be rolled out in further promotions, as well. |
PEOPLE ON THE MOVE |
At its 2010 Spring Show last week, RONA paid tribute to four of the company’s exceptional “builders”, individuals who were instrumental in the growth of RONA: Pierre Piotte, son of RONA co-founder Napoleon Piotte; André H. Gagnon, 36-year board member, board chairman for five years and still a dealer-owner; Henri Drouin, chairman of the RONA board of directors for 21 years; and André Dion, president and CEO of RONA for many years before Robert Dutton’s appointment to the position.![]() |
OVERHEARD… |
“For one of our large competitors, their staff are ‘associates.’ For us, they are much more. They are family.” — Alain Brochet of Rimouski Home Hardware, Rimouski, Que. He made the comment during his acceptance of the Outstanding Retailer of the Year Award at the recent Awards Gala held at the Hardlines Conference last month. |
Hardlines Product Updates
|
Hardlines Quarterly Report – Just released!Hardlines Retail Report – Hot off the keyboard!
Hardlines Market Share Report – New! Just Released! |
Did you know you can have this newsletter sent to someone else in your office for less than a dollar an issue! |