 |
Beverly Allen, Publisher Vicky Sanderson, Editor John Caulfield, Contributing Editor Phone: 416-489-3396 Email: bev@hardlines.ca |
| January 7, 2008, Vol. xiv, #1 | |
| In This Issue | ||
|
“Learn from the mistakes of others.You can’t live long enough to make them all yourself” |
||
| Reed pulls plug on Canadian hardware show | ||
NORWALK, CT — After just two years, the National Hardware Show Canada is being cancelled. The show was a spinoff of the very successful National Hardware Show in Las Vegas, owned by Reed Exhibitions, based here. Despite the year-over-year growth of the show, the organizers blamed its demise on the lack of enthusiasm shown by the Canadian marketplace.“We have determined that the Las Vegas show covers the depth and breadth of the international retail home enhancement marketplace satisfactorily,” said Dean Russo, senior vice-president, National Hardware Show. The HARDLINES Conference, with which the NHS Canada co-located in an effort to break into the Canadian market, will be held in Toronto, Oct. 21 – 22. The annual event will include HARDLINES’ Newsmaker of the Year Awards, the Outstanding Retailer Awards, sponsored by Hardware Merchandising, as well as a line-up of top industry representatives. |
||
| Castle parts company with Reliance | ||
MISSISSAUGA, ON — Castle Building Centres Group Ltd. has severed its relationship with Reliance, the buying group which at the beginning of last year included seven Canadian companies representing more than 1200 stores that did $4.4 billion in retail sales annually. In a prepared statement released last month, Castle said it had taken the step to ensure its role as “Canada’s premier lumber and building materials buying group for the independent.” Representatives for Reliance would not comment on the split, and calls to Castle representatives were not returned by press time. Earlier this year, IRLY Distributors Ltd., which had been with Reliance, announced plans to join forces with TIM-BR MARTS Ltd. That new partnership became effective the beginning of this year. |
||
| Website gives consumers another reason to go green | ||
|
TORONTO — A new online service that allows consumers to purchase environmentally-friendly products and support environmental organizations at the same time was launched here last month. ClickGreener.com went live just before the holiday season, allowing online shoppers to purchase items from such retailers as Roots, Canadian Tire and Home Depot. By clicking on a retailer, visitors are connected to that retailer’s online store, where they can complete their purchase. Each purchase results in a referral fee, 51% of which is donated by ClickGreener to organizations involved in tree planting, renewable energy credits, climate change advocacy and wildlife conservation. There is no cost to the consumer. Owen Ward, president of ClickGreener, says initial reaction to the site has been very encouraging. “People are definitely using it. We’ve had lots of traffic and have generated about $50,000 in sales.” There was strong interest from retailers, who now number 135, even before the site went live, says Ward, and more and more have come onboard since the site launched in December. |
||
| Ace’s Canadian strategy to unfold in ‘08 | ||
|
SPECIAL REPORT — The success of Ace’s fourth venture in Canada will depend on strong cooperation between it and PRO Retail Services, according to an indepth report in HARDLINES’ sister publication, HQR. Ace dealers in Canada will be supplied in part by Ace’s international distribution business, which is based in Shanghai. That will be the starting point for a range of SKUs that will get shipped directly to dealers in Canada. The DC, which forms the warehouse for Ace Global Distribution (AGD) business, was created just over a year ago to serve Ace’s retail customers in some 65 countries. Canada will at last be added to that list. AGD is overseen by Murray Armstrong, who is also president and general manager of Ace Hardware International. For the full story on Ace’s latest venture in Canada, and the history behind it, get the latest issue of HQR (4Q 2007). To order, click here. |
||
|
||
|
Marketplace
|
||
 |
||
|
Sell your company – or buy one – with HARDLINES Classifieds! Do your executive search, find new lines or get new reps in the HARDLINES Marketplace. Only $2.75 per word for three weeks in the classifieds. To place your ad, call Brady Peever at 416-489-3396 or email: brady@HARDLINES.ca |
||
|
To ensure you receive your HARDLINES newsletter each week, please add admin@HARDLINES.ca to your address book. Did your email system make this newsletter unreadable? You can read it online instead . HARDLINES is published weekly (except monthly in December and August) by HARDLINES Inc. © 2007 by HARDLINES Inc. Beverly Allen, Publisher – bev@HARDLINES.ca The HARDLINES “Fair Play” Policy: Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read HARDLINES each week – but let us handle your internal routing from this end! $265 (Canadian subscribers add $15.90 GST = $280.90 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $42 (Canadian subscribers add $2.52 GST = $44.52). Ask about our reduced rate for branch offices. You can pay online by VISA/MC/AMEX at our secure website or send us money. Please make cheque payable to HARDLINES. |
|
************************************ |
| COMPANIES IN THE NEWS |
BOUCHERVILLE, QC — RONA has acquired Centre de Renovation Andre Lessard Inc., an independent dealer under the PRO hardware banner, located in St-George de Beauce, QC. Lessard’s operation includes 18,000 square feet of retail, 35,000 square feet of warehouse, and a 40,000-square-foot lumberyard. The company, which has been in business for 30 years, has 65 employees. Claude Bernier, RONA’s executive vice-president for proximity and specialized stores, said that the deal further cements RONA’s position as the leader in Quebec’s renovation sector, adding that shareholders Cathy Lessard and Andre Lessard “will help us rapidly expand our presence in this important region.” _________________________________________TEMISCAMING, QC — Members of the Communications, Energy and Paperworkers Union of Canada (CEP) will support a recapitalization plan for Tembec that includes financial participation in the ownership of the mill through an employee trust. Cooperation from the union was key to the viability of the site here, which was suffering under the company’s high debt levels. _________________________________________CONCEPTION BAY, NL — Laurie Blackwood Pike, territory manager for Newfoundland and Labrador, CanWel, hardware division, has issued a CD, with proceeds going to the Children’s Wish Foundation of Canada. Copies of the disc, which Pike recorded under the name “Grandpa Pike” contain a mix of gospel, folk and country numbers. They are available for $20 at most record stores in Newfoundland, at selected Ace and Pro stores there and from the Children’s Wish Foundation of Canada, Newfoundland Chapter at 709-739-9474 or 1-800-267-9474. _________________________________________ NEW YORK — Post-Christmas sales at retail giants like Dillard’s, Macy’s, and Home Depot followed the worst holiday-shopping season since 2002, according to Bloomberg. Saks held a one-day, 70%-off sale on designer clothes, while Home Depot’s Expo Design Center chain offered as much as 75% off. While many retailers refused to comment on holiday results, Target Corp. said on Dec. 24, 2007 that sales at stores open at least a year may drop in December. The company had predicted a gain of as much as 5%. LONDON — Kingfisher plc, Europe’s biggest home improvements retailer, will sell its B&Q Taiwan joint venture stake for $106.5 million in cash to partner Test Rite International, according to Reuters. The Taiwan venture was the company’s first entry into Asia in 1996, where it operates 21 stores and employs around 1,800 people. Kingfisher said the proceeds would be used to reduce debt. KOMI, Russia — IKEA will build a $145 million furniture factory here, according to Furniture World Magazine. Nikolai Gerasimov, Russia’s regional industry and energy minister, said the factory — the company’s third in Russia — will be built by Swedwood, a structural unit of IKEA, in two stages. First, the company will open a wood-sawing facility that requires 500 cubic metres of timber annually, half of which will be purchased from local entrepreneurs. Then Swedwood will organize the production of furniture from 200 cubic metres of saw log and sell the remaining timber in the Komi Territory and other regions of Russia. _________________________________________ |
| People on the move |
King Marketing has named Ron Murphy as B.C. sales manager. Murphy previously worked for Newell Rubbermaid and Multy Industries before joining King Marketing two years ago. (604-271-3455). _________________________________________ Aaron Jarosz is now director of sales, Canada for SupplierPipeline, replacing Marianne Thompson. He was formerly with Masco as key account manager. (519-579-6584) Pat Chapman has been named director, corporate communications and external affairs for Home Depot Canada. Bruce Holman has been promoted from commodity program manager to business development manager, central region for Castle Building Centres Group Ltd. _________________________________________ |
| Economic Indicators |
A 0.5% decline in retail sales in Ontario offset sales gains in eight provinces in October. Overall, sales edged up just 0.1% to an estimated $34.5 billion. Excluding Ontario’s sales, national retail sales would have risen 0.5%. _________________________________________ Sales of building and outdoor home supplies rose 0.3%, up for the third consecutive month, due to a gain of 3.8% at specialized building materials and garden stores. Sales at furniture, home furnishings, and electronics stores edged up 0.1%. Home centres and hardware stores saw their sales decrease 0.6% after having been stable in September. _________________________________________ Monthly lumber production by sawmills rose 6.0% to 6,191,000 cubic metres in October. Sawmills shipped 6,114,300 thousand cubic metres, up 7.7% from September. But lumber shipments were down 8.1%, compared with October 2006. (StatsCan) Housing starts in November remained virtually unchanged, going from 227,600 in October to 227,900 in November, an increase of only 0.1%. (CMHC)_______________________________________ Noted… By its second year of operation in Ontario, Aikenhead’s had seven big boxes in 1994, with sales of $400 million. By comparison, Homecare Building Centres, the buying group in Ontario that later became TIM-BR MART Ontario, had the same sales that year through 166 dealers. (From HARDLINES sister publication, HQR 4Q 2007. To order your copy, click here. |
|
Beverly Allen, Publisher Vicky Sanderson, Editor John Caulfield, Contributing Editor Phone: 416-489-3396 Email: bev@hardlines.ca |
| January 7, 2008, Vol. xiv, #1 | |
| In This Issue | ||
|
“Learn from the mistakes of others.You can’t live long enough to make them all yourself” |
||
| Reed pulls plug on Canadian hardware show | ||
NORWALK, CT — After just two years, the National Hardware Show Canada is being cancelled. The show was a spinoff of the very successful National Hardware Show in Las Vegas, owned by Reed Exhibitions, based here. Despite the year-over-year growth of the show, the organizers blamed its demise on the lack of enthusiasm shown by the Canadian marketplace.“We have determined that the Las Vegas show covers the depth and breadth of the international retail home enhancement marketplace satisfactorily,” said Dean Russo, senior vice-president, National Hardware Show. The HARDLINES Conference, with which the NHS Canada co-located in an effort to break into the Canadian market, will be held in Toronto, Oct. 21 – 22. The annual event will include HARDLINES’ Newsmaker of the Year Awards, the Outstanding Retailer Awards, sponsored by Hardware Merchandising, as well as a line-up of top industry representatives. |
||
| Castle parts company with Reliance | ||
MISSISSAUGA, ON — Castle Building Centres Group Ltd. has severed its relationship with Reliance, the buying group which at the beginning of last year included seven Canadian companies representing more than 1200 stores that did $4.4 billion in retail sales annually. In a prepared statement released last month, Castle said it had taken the step to ensure its role as “Canada’s premier lumber and building materials buying group for the independent.” Representatives for Reliance would not comment on the split, and calls to Castle representatives were not returned by press time. Earlier this year, IRLY Distributors Ltd., which had been with Reliance, announced plans to join forces with TIM-BR MARTS Ltd. That new partnership became effective the beginning of this year. |
||
| Website gives consumers another reason to go green | ||
|
TORONTO — A new online service that allows consumers to purchase environmentally-friendly products and support environmental organizations at the same time was launched here last month. ClickGreener.com went live just before the holiday season, allowing online shoppers to purchase items from such retailers as Roots, Canadian Tire and Home Depot. By clicking on a retailer, visitors are connected to that retailer’s online store, where they can complete their purchase. Each purchase results in a referral fee, 51% of which is donated by ClickGreener to organizations involved in tree planting, renewable energy credits, climate change advocacy and wildlife conservation. There is no cost to the consumer. Owen Ward, president of ClickGreener, says initial reaction to the site has been very encouraging. “People are definitely using it. We’ve had lots of traffic and have generated about $50,000 in sales.” There was strong interest from retailers, who now number 135, even before the site went live, says Ward, and more and more have come onboard since the site launched in December. |
||
| Ace’s Canadian strategy to unfold in ‘08 | ||
|
SPECIAL REPORT — The success of Ace’s fourth venture in Canada will depend on strong cooperation between it and PRO Retail Services, according to an indepth report in HARDLINES’ sister publication, HQR. Ace dealers in Canada will be supplied in part by Ace’s international distribution business, which is based in Shanghai. That will be the starting point for a range of SKUs that will get shipped directly to dealers in Canada. The DC, which forms the warehouse for Ace Global Distribution (AGD) business, was created just over a year ago to serve Ace’s retail customers in some 65 countries. Canada will at last be added to that list. AGD is overseen by Murray Armstrong, who is also president and general manager of Ace Hardware International. For the full story on Ace’s latest venture in Canada, and the history behind it, get the latest issue of HQR (4Q 2007). To order, click here. |
||
|
||
|
Marketplace
|
||
|
|
||
|
Sell your company – or buy one – with HARDLINES Classifieds! Do your executive search, find new lines or get new reps in the HARDLINES Marketplace. Only $2.75 per word for three weeks in the classifieds. To place your ad, call Brady Peever at 416-489-3396 or email: brady@HARDLINES.ca |
||
|
To ensure you receive your HARDLINES newsletter each week, please add admin@HARDLINES.ca to your address book. Did your email system make this newsletter unreadable? You can read it online instead . HARDLINES is published weekly (except monthly in December and August) by HARDLINES Inc. © 2007 by HARDLINES Inc. Beverly Allen, Publisher – bev@HARDLINES.ca The HARDLINES “Fair Play” Policy: Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read HARDLINES each week – but let us handle your internal routing from this end! $265 (Canadian subscribers add $15.90 GST = $280.90 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $42 (Canadian subscribers add $2.52 GST = $44.52). Ask about our reduced rate for branch offices. You can pay online by VISA/MC/AMEX at our secure website or send us money. Please make cheque payable to HARDLINES. |
|
************************************ |
| COMPANIES IN THE NEWS |
BOUCHERVILLE, QC — RONA has acquired Centre de Renovation Andre Lessard Inc., an independent dealer under the PRO hardware banner, located in St-George de Beauce, QC. Lessard’s operation includes 18,000 square feet of retail, 35,000 square feet of warehouse, and a 40,000-square-foot lumberyard. The company, which has been in business for 30 years, has 65 employees. Claude Bernier, RONA’s executive vice-president for proximity and specialized stores, said that the deal further cements RONA’s position as the leader in Quebec’s renovation sector, adding that shareholders Cathy Lessard and Andre Lessard “will help us rapidly expand our presence in this important region.” _________________________________________TEMISCAMING, QC — Members of the Communications, Energy and Paperworkers Union of Canada (CEP) will support a recapitalization plan for Tembec that includes financial participation in the ownership of the mill through an employee trust. Cooperation from the union was key to the viability of the site here, which was suffering under the company’s high debt levels. _________________________________________CONCEPTION BAY, NL — Laurie Blackwood Pike, territory manager for Newfoundland and Labrador, CanWel, hardware division, has issued a CD, with proceeds going to the Children’s Wish Foundation of Canada. Copies of the disc, which Pike recorded under the name “Grandpa Pike” contain a mix of gospel, folk and country numbers. They are available for $20 at most record stores in Newfoundland, at selected Ace and Pro stores there and from the Children’s Wish Foundation of Canada, Newfoundland Chapter at 709-739-9474 or 1-800-267-9474. _________________________________________ NEW YORK — Post-Christmas sales at retail giants like Dillard’s, Macy’s, and Home Depot followed the worst holiday-shopping season since 2002, according to Bloomberg. Saks held a one-day, 70%-off sale on designer clothes, while Home Depot’s Expo Design Center chain offered as much as 75% off. While many retailers refused to comment on holiday results, Target Corp. said on Dec. 24, 2007 that sales at stores open at least a year may drop in December. The company had predicted a gain of as much as 5%. LONDON — Kingfisher plc, Europe’s biggest home improvements retailer, will sell its B&Q Taiwan joint venture stake for $106.5 million in cash to partner Test Rite International, according to Reuters. The Taiwan venture was the company’s first entry into Asia in 1996, where it operates 21 stores and employs around 1,800 people. Kingfisher said the proceeds would be used to reduce debt. KOMI, Russia — IKEA will build a $145 million furniture factory here, according to Furniture World Magazine. Nikolai Gerasimov, Russia’s regional industry and energy minister, said the factory — the company’s third in Russia — will be built by Swedwood, a structural unit of IKEA, in two stages. First, the company will open a wood-sawing facility that requires 500 cubic metres of timber annually, half of which will be purchased from local entrepreneurs. Then Swedwood will organize the production of furniture from 200 cubic metres of saw log and sell the remaining timber in the Komi Territory and other regions of Russia. _________________________________________ |
| People on the move |
King Marketing has named Ron Murphy as B.C. sales manager. Murphy previously worked for Newell Rubbermaid and Multy Industries before joining King Marketing two years ago. (604-271-3455). _________________________________________ Aaron Jarosz is now director of sales, Canada for SupplierPipeline, replacing Marianne Thompson. He was formerly with Masco as key account manager. (519-579-6584) Pat Chapman has been named director, corporate communications and external affairs for Home Depot Canada. Bruce Holman has been promoted from commodity program manager to business development manager, central region for Castle Building Centres Group Ltd. _________________________________________ |
| Economic Indicators |
A 0.5% decline in retail sales in Ontario offset sales gains in eight provinces in October. Overall, sales edged up just 0.1% to an estimated $34.5 billion. Excluding Ontario’s sales, national retail sales would have risen 0.5%. _________________________________________ Sales of building and outdoor home supplies rose 0.3%, up for the third consecutive month, due to a gain of 3.8% at specialized building materials and garden stores. Sales at furniture, home furnishings, and electronics stores edged up 0.1%. Home centres and hardware stores saw their sales decrease 0.6% after having been stable in September. _________________________________________ Monthly lumber production by sawmills rose 6.0% to 6,191,000 cubic metres in October. Sawmills shipped 6,114,300 thousand cubic metres, up 7.7% from September. But lumber shipments were down 8.1%, compared with October 2006. (StatsCan) Housing starts in November remained virtually unchanged, going from 227,600 in October to 227,900 in November, an increase of only 0.1%. (CMHC)_______________________________________ Noted… By its second year of operation in Ontario, Aikenhead’s had seven big boxes in 1994, with sales of $400 million. By comparison, Homecare Building Centres, the buying group in Ontario that later became TIM-BR MART Ontario, had the same sales that year through 166 dealers. (From HARDLINES sister publication, HQR 4Q 2007. To order your copy, click here. |
Taylor joined the Canadian division in November 2006, in the newly created position of vice-president operations. He came up from Home Depot’s head office in Atlanta, where he was senior vice-president of finance for all stores. Taylor’s role in Canada was a diversified one: he handled store operations, services, logistics, asset protection, construction and real estate. 
Brampton, ON. During a pre-opening tour given to HARDLINES by Alan Huggins, vice-president of store operations for Lowe’s Canada, it was apparent that the Lowe’s retail format here mirrors that found in the U.S. – with a few notable tweaks. 
a kitchen vignette that allows customers to turn on different lighting options. A 5,000-square-foot major appliance department (compared to between 2,000 and 3,000 square feet in Home Depot’s new-format stores) includes such high-end brands as Bosch and Miele, not seen at other chains.
service than its competition. Huggins told HARDLINES that each store put staff through a total of 10,000 hours of training in the three weeks leading up to the grand opening.
A similar store in Markham, ON will open in 2Q 2008 and three more new-format stores will follow before year’s end. Two of those will be renovations of existing stores, and the other will be a new location.
Lowe’s plans for its grand openings include appearances by as-yet-unnamed CFL players and celebrities. The Lowe’s-sponsored NASCAR Team 48 display car will also be on show, and a grand opening sweepstakes contest will offer consumers a chance to win prizes. 
While RONA’s main competitor, Home Depot Canada, was not present (HD Supply, formerly owned by HD, was, however), Canada’s newcomer to the home improvement scene, Lowe’s, had a small booth at the very back of the show, where vp Allen Huggins was on hand to talk about Lowe’s service commitment to passersby. 
Annette Verschuren, president of Home Depot Canada and Asia, made the announcement at the Leaside store here, calling it a bold but achievable goal. “We’re making it easy for Canadians to make environmentally conscious decisions from purchase to disposal,” said Verschuren in a prepared statement.
RONA Eco. An initial line of 450 eco-responsible products will be available in stores in spring 2008, about three quarters of which are already on RONA shelves. 
Who knew? North America’s largest non-bannered home improvement distributor is already shipping to a handful of Canadian customers, and Orgill’s Ron Beal says he “likes what we see in the Canadian market.” He revealed this at the recent Hardlines Conference.
