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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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For more information,click here.

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

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

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

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

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

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

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

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• Top retail executives added to Conference lineup
• Superior acquires Specialty Drywall
• Edmonton firm makes offer for Canadian Tire stock
• Lowe’s to enter Australia through joint venture
• Can-Save forges distribution deal with manufactured stone supplier
• PLUS: Ace results, Home Depot DC, RONA optimistic, new home Hardware buyer, Sears Canada results, retail sales up and more!
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“There ain’t no cure for the summertime blues.”
— Eddy Cochrane (American rock ’n roll musician, 1938-1960)

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

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

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

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

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

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

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

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

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

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

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mini-tenders may not be exactly as shown

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

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

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

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

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

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

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

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

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

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

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

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

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• TIM-BR MART increases hardware focus with new buying team
• Canadian Tire gets back to basics in latest quarter
• RONA’s 2Q earnings drop on sluggish housing starts
• RONA unveils specialty paint store
• Canadian Tire renews contract with Debbie Travis
• PLUS: Equity firm buys Armstrong, Costco sales down in July, Wells Lamont relaunches website, Holton joins OGC, Ruffolo leaves Castle, Vernon joins Freud — and more!
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“Problems are only opportunities in work clothes.”
— Henry J. Kaiser (American industrialist, 1882-1967)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PEOPLE ON THE MOVE

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

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

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

IN MEMORIAM

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• Home improvement retailing shows decline by second quarter
• Feds pump cash into promotion of tax credit, forget to tell dealers
• Stanley partners with Blue Jays in sponsorship deal
• Wal-Mart announces sustainable product index
• Sales pick up for high-end outdoor furniture
• PLUS: CanWel opens DC, BMR adds member, Patene to open another, Sears starts Christmas early, Wal-Mart customers vote on new products — and more!
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“He who does not bellow out the truth when he knows the truth makes himself the accomplice of liars and forgers.” — Charles Peguy (French poet, essayist and editor, 1873-1914)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NOTED …

OVERHEARD…

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• Canadians have strong showing at NRHA Convention
• Home Hardware garden guru offers cost-saving tips
• Canadian Tire rolls out chip card technology nationally
• BMF launches merchandising program for dealers
• Lowe’s gains in consumer preference over Home Depot
• Small signs of recovery for U.S. as June housing inches up
• PLUS: Wal-Mart, Grainger, CHHMA, Costco, the Canton Fair and more!
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“You can always spot a well-informed man. His views are the same as yours.”
— Ilka Chase (American actress, novelist and playwright, 1905-1978)

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

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Cullen’s offers five tips for economical gardening:

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

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

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

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

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

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

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

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

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

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

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

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

OVERHEARD…

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• Housing starts increase in June
• CanWel announces new-format show
• CSA acquires UK testing company
• Canadians not as green as they’d like to think
• PLUS: RONA raises money, CSA makes acquisition, CIL develops scrubbable paint, Boulanger handles maibec, “ghostboxes” litter the landscape, True Value goes “hardwarian” and more!
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“It’s a recession when your neighbour loses his job; it’s a depression when you lose your own.” — Harry S. Truman (33rd President of the United States, 1945–1953)

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

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

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

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

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

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

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

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

Highlights of the study include:

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

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

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

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

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

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

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

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

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

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

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• Lowe’s overcomes red tape as it expands in Canada
• KMS Tools builds on House of Tools closures
• BMR gains traction with new stores
• Home Depot scrutinizes spending for expansion
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“Everything that is really great and inspiring is created by the individual who can labour in freedom” — Albert Einstein (Nobel Prize-winning German physicist,
1879-1955)

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

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

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

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

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

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

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

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

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

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

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

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

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• 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!
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“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.

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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)

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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.

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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.

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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.

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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.

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• 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!
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“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.”

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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.

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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.”

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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.

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“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.

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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%.

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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.

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