Pro Retail Services partners with Ace to expand banner

MONTREAL – Pro Retail Services has expanded its partnership with Ace Hardware Corp. to renew the Ace brand in Canada. While the banner has been nominally in Canada for some time, it has not gained the high profile here that it already enjoys elsewhere. Ace Hardware Corp., based in Oak Brook, IL, is a retailer-owned co-operative of more than 4,600 independent stores in 50 states and 60 countries. It has 14 U.S. distribution centres and has annual sales of about $13 billion.

The enhanced partnership will allow independent retailers to leverage Ace’s global buying power and highly successful retail model, according to Tony DiEmanuele, vice-president business, development and growth for Pro Retail Services.

“When we were looking at finding the right banner for independents, we decided that Ace is an exceptional brand with an extremely successful model for global distribution,” says DiEmanuele.

Official news of the company’s plan will be announced at the next Pro Retail Services Show, to be held here Oct. 3-4. At that time, Ace executives, including Murray Armstrong, president and general manager of Ace International, will share details of store supports, such as Ace’s flyer program, and what private label lines will be available to Canadian dealers.

While Ace will be offered as a stand-alone banner, it can also be co-bannered with other brands, as it has been historically done in Canada with a limited number of LBM partners. But DiEmanuele thinks that the Ace brand may work best on its own. “One of the lessons we have learned is that for Ace to be successful it has to look like an Ace, feel like an Ace and be an Ace,” he explains.

While Pro Retail Services has not yet made public how many Ace-bannered stores it would like to see in Canada over the next few years, the indications are that they are putting efforts behind building a strong brand that could grow nationally.

“This brand really supports the independent,” says DiEmanuele. “We’ll show that to independent dealers, and they’ll decide for themselves. After all, that’s the beauty of being an independent retailer.”

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TSC moves into Manitoba

LONDON, ON – TSC will open four new stores on Oct. 19, including a replacement for its flagship store located here, which will move about three blocks east of its current site. Two others new stores are close to Ottawa; one in Rockland, which is about 25 kilometres east of the capital and one in Kemptville, about a half hour’s drive south of the city. The other store is in Sault Ste. Marie.

According to TSC’s COO Greg Hicks, the multiple same-day openings will be “a watermark event that’s unprecedented in our company”. But he adds that TSC is equally excited about its first store west of Ontario, a location in a Brandon, MB that will open in the last week of November. That store will be followed by more Western openings next year, although Hicks would not comment on how many stores TSC would like to open in the next year.

Each of the new stores will include approximately 18,500 square feet of retail and yards that will run from between 4,500 square feet and one acre. The flagship London store will, however, turn over about 300 linear feet of space to a “retail lab” where vendors will set up and fine-tune product displays for TSC executives before their lines are rolled out into stores.

The Rockland location has been converted from a former Food Basics grocery store and marks the first time the company has retrofitted an existing building. “We morphed our strategy a bit to fit into that store, which is about 10 feet wider than our norm,” says Hicks. “It’s part of a strategy that allows you to get into a market a little more easily.”

That location will differ also from the others in that it will serve a predominately Francophone market, and will have a bilingual staff, as well as outdoor and permanent signage in both English and French. The company is also developing a bilingual flyer for that market.

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Canadian Tire to open more stores and try new formats

TORONTO – Canadian Tire has identified over 100 underserviced markets that could accommodate one of its three retail concepts, and expects to open between 60 and 70 new stores next year. Speaking last week at a seminar for investors, company executives also said CTR would open four pilot stores of between 18,000 and 20,000 square feet. Each will contain a Mark’s Work Wearhouse, a petroleum bar where possible, and will have assortments tailored to the local market. Locations and schedules for the openings have not yet been announced.

CTR is also experimenting with full-sized Mark’s stores as specialty departments in stores in Waterdown, ON and Dartmouth, NS that are expected to open later this fall.

Canadian Tire says growth will also be fuelled through an expansion of both its PartSource automotive business – as reported last week in Hardlines – and its financial services portfolio. The company expectes these moves to result in store network growth of at least 5% over five years, and retail revenue growth of between 6% and 8% over the same period. Canadian Tire plans to spend between $2.6 billion and $2.7 billion from 2008 to 2012 to fund the initiatives.

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Acquisition, sales fuel 3Q growth for Richelieu

MONTREAL – Solid performances in Canada’s major geographic markets helped push Richelieu’s third-quarter sales to $111.9 million, an increase of 16.3%, and its strongest sales increase since the beginning of the year. Sales to manufacturers increased by 15.8% to $94.7 million, of which 5.0% came from internal growth and 10.8% from a spate of recent acquisitions. Sales to retailers, including renovation superstores, increased by $2.8 million, up by 19.2%.

Canadian sales increased by 7.3%, spurred by internal growth. In the United States, the company’s sales almost doubled, with 15.5% coming from internal growth and 76.4% from four acquisitions it closed in the past 12 months.

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Canadian Gypsum Company celebrates 100 years in Canada

MISSISSAUGA, ON – CGC Inc., a manufacturer and distributor of gypsum wallboard and other products, joint compound, ceiling tile and grid, is celebrating its 100th anniversary with a promotional partnership with NASCAR. Playing on the popularity of NASCAR with its customers, the company launched a “Rock on Tour”, which includes a NASCAR show car that will stop at locations in major markets before it wraps up in November.

So far, more than 8,000 Canadians have seen the CGC car tour. The company has also held celebratory events for more than 1,100 employees at its mines, plants, distribution centres and offices across the country, as well as an appreciation event for major customers near the site of its origins in the Bay of Fundy.

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Home Depot tests female-friendly format

ATLANTA – Home Depot continues to look for ways to counteract what is generally considered to be one of rival Lowe’s primary competitive advantages: the appeal of its cleaner, brighter stores to female shoppers.

This month, Home Depot plans to open a new store format it’s calling Home Depot Design Center in Concord, CA, and Charlotte, NC. The Atlanta Journal-Constitution reports that these stores will be roughly the same size as a conventional Home Depot warehouse, but will have lower ceilings, an earthier color palette, and have numerous “project design” areas where customers can get help from design consultants.

Jason Feldman, the retailer’s senior director of merchandising, told the newspaper that the format would be “more like a studio environment” than a warehouse home center. “Imagine a Home Depot designed by women,” he said.

Home Depot Design Centers – which are located a few miles from one of the retailer’s warehouses – are targeting female customers primarily, and not contractors who might shop in its traditional stores. For example, the Home Depot Design Centers won’t carry lumber and building materials, or heavy-duty power tools, the Journal-Constitution reports. Instead, they will feature an upscale furniture showroom that connects with Home Decorator Collections, Home Depot’s catalogue business.

Home Depot Design Centers will also include expanded home organization departments, and a broader assortment of kitchen and bath products. It will get away from selling bulk quantities of soil and mulch in its nursery department, favoring instead more pottery and plants.

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Signs of slowdown begin to appear regionally

TORONTO – As Canada’s home improvement industry nears $40 billion in sales, it continues to be a major driver of the country’s retail sector. In fact, one out of every ten dollars spent at retail goes toward products to improve, renovate and decorate the home, according to the latest retail report from Hardlines.

Combined sales by Canada’s hardware stores and building supply dealers, plus related hardware, seasonal and home improvement sales by Canadian Tire, mass merchants and club stores, increased by 7.3% to $39.43 billion in 2006, according to the Home Improvement Retail Report: 2007-2008.

Growth was due to a number of factors: a housing market that remains relatively strong, a robust renovation market, continued consumer fascination with home décor as fashion, and a broadening range of “home enhancement” products appearing on retailers’ shelves.

For the first half of the year, hardware and building supply dealers across the country were up 7% over 2006. Saskatchewan and Newfoundland are emerging as the two hottest provinces for the retail home improvement industry. Each had double-digit growth for the first half of the year, as their economies are fueled by capital investment in developments in the resource sector, especially oil, plus a strong fall harvest in Saskatchewan.

But signs of a slowdown are now appearing regionally. For example, while British Columbia and Alberta show increases, growth in Ontario and Quebec has slowed over last year, with an estimated increase of 5%. Atlantic Canada is steady with growth of between 3 and 5%.

(Full details of the size and growth of the Canadian industry are in the 2007-2008 Hardlines Retail Report. Click here for more info

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Castle builds brand to grow business

MISSISSAUGA, ON – A new corporate slogan, “Your Trusted Local Building Supply Dealer”, is part of the Castle Building Centres Group’s bid to build a consistent brand that will help existing and new members grow business.

Speaking recently to an audience at a CHHMA breakfast, James Jones, vice-president of national marketing for Castle, explained that, while independent Castle dealers are encouraged to build a local reputation, network-wide tools for brand building, including in-store inspirational publications and a strong flyer program, will help dealers stay top of mind with consumers.

On the trade side, the company is rolling out a series of new print ads to convince independent dealers of the merit of Castle membership. Dealers are also being offered support with succession planning and with a store refurbishment program that has been used in 10 stores over the last year. Another 60 stores are expected to pick up the program in the coming months.

With a strong push on branding and positioning, the company may consider consolidating its marketing and advertising initiatives, which are currently done by a combination of in-house support and contract players.

Castle, which has been historically low-key about the use of the buying group’s banner at the dealer level, now has about 65% of members using the corporate name on its stores.

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Canadian Tire expands auto programs

TORONTO – Canadian Tire and its dealers have introduced a major initiative in the company’s automotive business that will see CTR and PartSource stores expand assortment, improve same-day automotive parts supply and enhance customer service.

Under the program, CTR will increase the assortment at its three main auto parts distribution facilities from 35,000 SKUs to 75,000 SKUs. The company plans to overhaul its technology infrastructure for retail operations, purchasing and inventory management, warehouse processes and front-line service. It will also create a network of about 22 PartSource hub stores to supply same-day parts to between 75% and 80% of CTR’s 468 stores.

There are currently 67 PartSource stores across Canada; the company plans to increase that number to 200 by 2014.

CTR expects to complete most of the changes over the next 24 to 36 months, and spend about $120 million to do so. But it anticipates that the new program will generate $120-$130 million in incremental auto parts sales for Canadian Tire by 2010, and over $200 million by 2014. “The revisions to the contract represent an important step in our ongoing strategy to improve productivity and rates of return at CTR. These changes enhance our confidence in our ability to sustain our earnings growth into the future,” president and CEO Tom Gauld, said in a prepared statement.

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Canadians getting greener

OTTAWA – Canada’s booming lawn and garden industry, which Statistics Canada estimates has grown from about $600 million in 2002 to more than $2 billion in 2006, will have to offer more alternatives to traditional fertilizers.

According to a new study by StatsCan, Canadians – especially Quebecers – are using less pesticide on their lawns. The study reports that the proportion of households using pesticides dropped from 31% in 1994 to 29% in 2005. In Quebec, where there are pesticide bans in many municipalities, the proportion of homes using pesticides on lawns and gardens dropped from 30% in 1994 to 15% in 2005. Saskatchewan, Manitoba and Alberta led the country in pesticide use in 2005, with about two out of every five households using them on their lawns and gardens.

Canadians show less interest, however, in reducing their environmental footprint when it comes to lawnmowers. Two-thirds of Canadian households with lawns and gardens owned a gas-powered lawnmower in 2006. According to StatsCan, in one year, the average gas-powered mower emits the same amount of a key smog pollutant as the average car traveling about 3,300 kilometres.

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Hardlines TV goes live

WORLD HEADQUARTERS – In response to growing need for immediate information and deeper insight into the rapidly evolving home enhancement industry, Hardlines Inc. has added online video streaming to hardlines.ca. Called HTV, the new feature will bring live interviews from trade and consumer shows, new store tours and product demos, as well as on-the-spot interviews with home improvement executives at various industry events.

HTV will be produced by Brady Peever, who recently joined Hardlines with a degree in corporate media production. It will be fed by frequent news reports and features. “It’s a way to give people an immediate sense of what’s going on the industry, and allow them to keep abreast of changes and innovations in the sector,” says Peever. “In short, it’s all the stuff you can’t read.”

“Hardlines has also been focused on bringing cutting edge education, information and training to the industry,” says Michael McLarney, president of Hardlines Inc. “HTV is a new and very exciting way to take that to the next level.”

To watch the first episode of HTV, click here

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Lowe’s sees opportunity in downturn

CHARLOTTE, NC – Lowe’s sees a “window of opportunity” during the current soft business cycle in the U.S. to solidify its relationship with customers and improve the productivity of its operations. “Our goal is to create a new standard for the industry,” Robert Niblock, Lowe’s chairman and CEO, told investors and analysts at its annual conference, which the retailer held here last week.

The downturn in the housing market, as well as drought conditions in several of its markets this summer, have had a negative impact on Lowe’s sales and earnings in 2007. But the company is still on pace to open between 150 and 155 stores this year, including its first foray into Canada with six stores scheduled to open in the Greater Toronto market in December and January. And while it projects comp-store sales declines through 2010, the company anticipates double-digit sales and earnings gains during each of the next three fiscal years, when it expects to add between 135 and 140 new stores per year, and will enter Mexico in 2009.

Lowe’s also has a number of new store formats in the works that might fit better in different-sized markets than its typical 117,000-square-foot and 94,000-square-foot footprints. Under construction is an 80,000-square-foot store, with an attached drive-through lumberyard on the side, which the company will open next year.

Lowe’s is also developing a two-level store that would have 75,000 square feet of selling space on the first floor, 40,000 on the second and another 20,000 square feet for lawn and garden. Lastly, in the conceptual stage is a smaller store for standalone markets whose populations are less than 250,000. “We know how to run small stores,” says Greg Bridgeford, Lowe’s executive vice-president of business development, who recalled that when he joined Lowe’s in the 1970s , the company’s store size averaged 13,350 square feet.

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Lowe’s Canada confirms Canadian opening dates

MOORESVILLE, NC – The first three Lowe’s Canada stores, slated for opening in the second week of December, are right on schedule, according to chairman and CEO Robert Niblock, who met last week with Canadian business reporters at the company’s 300-acre head office here.

“We said we would open in the second half of 2007,” said Niblock, brushing aside the suggestion that the company’s entry into Canada had been slower than anticipated. But during a store tour later in the day, president and COO Larry Stone said that Lowe’s “target was probably about a month earlier”.

The company chose the setting to announce that stores in Hamilton, Brampton and Brantford, ON will open the week of Dec. 10. If Don Stallings, who recently replaced Doug Robinson as president of Lowe’s Canada, has his way, all three will open on the same day. Openings are typically on a Thursday in the U.S., which would make the date Dec. 13, 2007. (Those three won’t be enough to beat Stallings’ record, though. As regional vice-present for Lowe’s a decade ago, he oversaw the opening of six stores in one day in Dallas.)

Three more stores will open before Lowe’s fiscal year end of Jan. 31, 2008: the previously announced location in northwest Toronto (Castlefield and Caledonia Rds.), plus two others in north Brampton and East Gwillimbury, about 30 minutes north of Toronto.

The initial flurry will be followed by a seventh store opening in Maple, ON, although no official date has yet been announced for that location, and 18 more sites are in the pipeline. Beyond that, said Niblock, the company expects to open between eight and 15 stores annually for the next several years. The initial push beyond the Ontario market will be westward, and should happen within three to four years. At that point, the company will probably split its distribution between a third-party DC in Toronto and one or more other providers.

Niblock and other executives at the meeting – including president and COO Larry Stone, executive v-p of business development Greg Bridgeford, and Stallings, who recently replaced Doug Robinson as president of Lowe’s Canada – all stressed that Lowe’s focus is on launching strong stores into the Canadian marketplace, rather than rolling out “red-hot” openings.

During the store tour, Stone explained that while the initial stores will all have grand openings and will be supported by a heavy print and electronic media campaign, future stores may have soft openings a few months ahead of formal openings.

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RONA acquires three new stores in BC

BURNABY, BC – RONA inc. continues to increase its presence in British Columbia with the acquisition of Dick’s Lumber. Dick’s is a family-owned private company with three contractor-oriented stores in the Lower Mainland that generated more than $100 million in sales over the past 12 months.

Dick’s, founded in 1964 by Dick and Delma Alexander, is still operated by Delma, along with her children David and Karen. It comprises two 60,000-square-foot stores – one in Burnaby and the other one in Surrey – plus one 32,000-square-foot outlet in North Vancouver. Collectively, they have another 22 acres of yard space.

The transaction has been finalized pending the usual conditions and regulatory approvals and will be financed through RONA’s existing credit facilities. The deal is expected to close in the fourth quarter of 2007.

The Dick’s Lumber acquisition follows the 2006 takeovers of Curtis Lumber and Mountain Building Supplies in British Columbia, plus acquisitions and the addition of 14 stores in the province over the past two years. RONA will now have 54 stores in B.C. and plans to keep opening both big-box and proximity stores there.

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Home Hardware launches commercial program

ST. JACOB’S, ON – Home Hardware rolled out new marketing support and advertising collateral for its line of professional supply products at its latest dealer market, held here last week. The program, which is managed by Jason Hamburger, includes flyers and employee training in both product knowledge and sales of the line, which ranges from janitorial supplies, paints and coatings to safety accessories.

While the commercial pro assortment has been available for some time, “Home Hardware doesn’t yet show up on the map,” said Hamburger. It’s a category that he says is full of opportunity, and estimates is worth about $14 billion in commercial cleaning products, $600 million in both safety and commercial paints, and $500 million in builder’s hardware.

Hamburger adds that Home Hardware stores are ideally suited to provide customers with these kinds of products, especially in rural markets. “A lot of times, small business owners will go into a Home Hardware for something else,” he explains. “They might not be aware of the commercial lines we offer. This program will help dealers change that.”

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Home Depot to shut down Landscape Supply business

ATLANTA – Home Depot is walking away from another of its specialty-store experiments. The Associated Press and Atlanta Journal-Constitution report that the home improvement retail giant will close its 11 Landscape Supply outlets, which cater primarily to professional and commercial customers.

There are five Landscape Supply units in Atlanta and six in Dallas that employ 380 people, AP reports. They will close within the next two months. The closing of Landscape Supply is part of Home Depot’s larger strategy to rededicate itself to its core retail business. To that end, the company recently completed the $8 billion sale of its HD Supply business unit to a group of investors.

Home Depot’s website states that it opened the first Landscape Supply outlets in 2002. The facilities, on five to seven acres, include a 12,000-square foot greenhouse, another 25,000 square feet of covered selling space, and 10,000 products.

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Castle launches new commercial banner

MARKHAM, ON – Castle Building Centres Group’s growth plan includes the launch of two new banner brands. The move is part of the company’s strategy to capture more independents in the home improvement sector, a market that James Jones, Castle’s vice-president of national marketing, describes as being “full of opportunity”.

Speaking to a CHHMA breakfast last week, Jones said that a new commercial building specialty banner, Commercial Building Supplies Inc., was created two months ago to attract dealers who do significant commercial and industrial business. “These would be dealers who are heavily into things like gypsum, insulation and roofing, and who do between $20-25 million on about 50 SKUs,” explained Jones.

Jones said the company does not expect the program to grow much beyond 15 dealers, which it hopes to have the end of next year. The first two members of the new program will be announced within the next few weeks.

A second new banner will also be added to the Castle Group umbrella. It will focus on specialty dealers, who deal in such categories as windows and doors, and kitchen and bath.

Next week in Hardlines: Castle’s plans for marketing and store development

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Wal-Mart supercentres increase home products offering

MISSISSAUGA – Wal-Mart Canada will open five new supercentres across Alberta this week. The new stores, which are between 101,000 and 205,000 square feet and approximately 30% larger than existing Wal-Marts, will open in Wainwright, Vegreville, Lethbridge, Pincher Creek and West Edmonton.

By the end of this month, 17 Wal-Mart supercentres will be operating across Canada. The giant retailer hopes to have 28 of the stores here by early 2008.

The new-format stores include increased offerings in enhanced home fashion and electronics departments. Each store will have approximately 120,000 products, compared to 80,000 in a traditional store. The new stores will also mark Wal-Mart’s entry into the realm of fresh groceries, with about 40,000 square feet of grocery goods in each location.

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Conference reflects importance of staff training

TORONTO – Strategies for implementing successful staff training are the focus of a new half-day session being introduced to the annual Hardlines Conference, which will be held here Oct.15-16.

As the exclusive provider of NRHA training programs in Canada, Hardlines will present a series of seminars on staff training issues, including how employees can reinforce the store brand, using technology to increase staff efficiency and increasing profits through better product knowledge.

For more information about the Hardlines Conference, click here.

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Strong housing trend can’t continue: report

TORONTO – The strong housing market that Canada has enjoyed is unsustainable in the longer term, according to a new report by Scotia Economics. While low unemployment, high immigration, and tight rental vacancy rates are helping to maintain the sector, affordability is becoming an issue for increasing numbers of homebuyers, Adrienne Warren, senior economist with Scotia Economics, said in a prepared statement.

Uncertainty over the effect of the sub-prime mortgage crisis in the U.S. and regional overvaluation of housing stock, may trigger softening conditions, says Warren.

The report looked at conditions in 15 cities, noting that with the exception of St. John’s, current inflation-adjusted price levels are above their long-term trend.

“The further domestic home prices climb above underlying economic
fundamentals, the greater the risk of an eventual correction,” says Ms.Warren.

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Stock adds another commercial supplier

RALEIGH, NC – Pro dealer Stock Building Supply continues to make inroads into the industrial-commercial market through acquisitions. The retailer, based here, has acquired ProSource Supply, a Houston-based supplier of commercial doors, trim hardwood and their installation services.

ProSource generated $17.2 million in sales last year, according to Stock, whose parent company, Wolseley plc, has shown no signs of curtailing its recent buying spree. Wolseley’s other U.S.-based asset, the plumbing distributor Ferguson Enterprises, last week bought two companies: Western Air Systems and Controls, a three-branch distributor of Trane HVAC systems that generated nearly $60 million in sales last year; and Davidson Pipe, a New York-based plumbing and fittings distributor which had sales last year of $125.8 million.

News of these acquisitions was first reported by the magazine Modern Distribution Management.

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IRLY becomes first group to join new NRHA Canada

SURREY, B.C. – IRLY Distributors, the B.C.-based buying group and wholesale distributor, has become the first new member to join the North American Retail Hardware Association Canada since that organization’s operations were taken over by Hardlines Inc.

IRLY’s board of directors was keen to access NRHA Canada’s unique product knowledge training programs for each of its 43 member dealers. So keen, in fact, that IRLY’s general manager, Garry Anderson, called Hardlines right away.

“We felt strongly that this training was an important tool for the independent dealer,” Anderson said. “A couple of our dealers had already tried it and insisted we make it available to all our members. It’s effective because each dealer can monitor the progress of their staff as they go through all the courses.”

The NRHA Canada program is also a valuable recruitment tool for IRLY. “It’s become an important added benefit for any prospective dealer who may wish to join IRLY. It’s one more thing we can do for them.”

The centrepiece of NRHA Canada’s programs is the Basic Training Course in Hardware Retailing. It contains everything hardware and home improvement retailers need to train employees to improve their skills, including interactive modules that cover product knowledge, selling tips and merchandising techniques. The course also includes testing and grading functions to ensure employees retain this information.

All training programs have been customized for Canadian dealers. “We like that the course is completely adapted for Canadian dealers – that was a real selling point for us,” Anderson added.

When Hardlines assumed the operations of NRHA Canada in April 2007, it created a mandate to deliver product knowledge training to every independent retailer in the country.

For more information on NRHA Canada, click here

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Ace uncovers $154 million accounting error

OAK BROOK, IL – Ace Hardware Corp., the dealer-owned buying group that has announced its plans to convert to a for-profit corporation, has uncovered a “significant accounting error” on its books, which has caused the co-op to temporarily put its conversion plans on hold.

The Chicago Tribune, quoting Ace officials, reports that the company found a $154 million error while preparing its financial statements to become a for-profit entity. Its president and CEO, Ray Griffith, told the newspaper that Ace has hired an auditing firm to straighten out the problem, which relates to a shortfall in Ace’s accounting for its inventory and apparently dates back to 2002. Griffith said that Ace’s financial statements for the past five years might need to be restated.

“There is no missing money, there is no missing inventory, there is no evidence of theft,” Griffith told the newspaper. However, it remains to be seen how Ace’s membership responds to this faux pas, and what effect it has on their confidence in the company’s ability to manage its finances as a corporation.

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Hardlines Conference celebrates business innovation

TORONTO – Jack Bingleman left his position as president of Beaver Lumber in 1990 to found Business Depot. After growing it into a successful 40-store operation, he sold the business to Staples. His adventures in retailing have given Bingleman a unique perspective on the role of risk and reward, one he’ll share with attendees at the 12th annual Hardlines Conference.

Innovation and opportunity will also be the focus of a presentation by Jim Thompson, senior vice-president merchandising for Wal-Mart Canada. He’ll share inspiration and insight into how to integrate new ideas into an existing business model.

Marketing “green” products to consumers demands a fresh approach. As manager of program delivery for the Ontario Power Agency, Raegan Bunker will offer tips about how to exploit the retail opportunities in energy programs being offered by various levels of government.

After having spent many years working on renewable energy options for government bodies, consultant/contractor Lorin Busaan understands what makes a pro choose green products over conventional materials. He’ll
reveal how to leverage the growing interest in eco-friendly building materials and services with pro customers.

For secure online registration to the 12th annual Hardlines Conference, click here.

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Home Depot chief sees continued challenge in the market

NEW YORK – Frank Blake, Home Depot’s CEO, does not think the U.S. housing market is going to recover until next year, and even then he expects his company to be facing “headwinds” against which it will be pushing to operate its business profitably.

He told analysts at Goldman Sachs’ Retailing Conference here last week that California and Florida, at one time two of the most overheated housing markets in the country, accounted for much of his company’s sales weakness through the first half of 2007, during which Home Depot reported a 2.9% decline to $40.7 billion. Conversely, the retailer has seen some life from its stores in Texas, the Southeast and the Midwest, despite the fact that the Midwest – and particularly Ohio and Michigan – are viewed as limp housing markets right now.

Blake hinted that Home Depot’s plan to repurchase $22.5 billion worth of its common stock could be hindered by the credit crunch that the subprime mortgage crisis has created. In late August, Home Depot completed a tender offer for $10.7 billion worth of it stock. “It’s going to be a longer path than what I initially envisioned,” he told analysts. He also indicated that the credit crunch is impacting the sale of big-ticket items at Home Depot’s stores.

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CT Financial product combines mortgage and bank accounts

TORONTO – Canadian Tire Financial Services Ltd. is piloting a new banking product in Kitchener-Waterloo and London, ON, and Calgary. The One-and-Only account allows consumers to combine mortgage, chequing and savings accounts, loans and credit card balances, into one account, which has no set-up or transaction fees. Users will also earn Canadian Tire “money”.

The new account will help Canadians pay off mortgage debt more quickly, according to the retailer. Whenever money is deposited into the account, it immediately goes towards paying down the mortgage. Cash taken out to pay other bills goes right back onto the debt load, but even the interest saved between the time the two transactions take place reduces interest fees.

“We know from our consumer and market research that as the size of the
average mortgage continues to grow, so does every Canadian’s desire to pay off that debt as quickly as possible,” said Marco Marrone, president, Canadian Tire Financial Services, in a prepared statement.

To help consumers understand the program, the company has set up a website.

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U.S. foreclosure rate sets new record in 2Q

WASHINGTON – The number of homeowners that couldn’t make their mortgage payments hit a record level in the second quarter, according to estimates by the Mortgage Bankers Association.

In its quarterly survey, which covers 44 million mortgages, MBA estimates that 0.65% of loans, for one- to four-unit homes, or 268,000 mortgages, entered the foreclosure process. MarketWatch reports that’s the highest level in the association’s 55-year history. California, Nevada, Florida and Arizona were especially susceptible to foreclosure activity.

However, Doug Duncan, MBA-s chief economist, notes that 34 states saw declines in their foreclosure rates during the last quarter. He also notes a significant “divergence” between the performance of fixed-rate loans (whose foreclosure rates have either levelled off or declined) and adjustable-rate loans, where foreclosure activity has been far more volatile.

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Conference showcases competitive tools for independents

WORLD HEADQUARTERS — The role of the independent dealer in the home improvement industry will be a central focus of the 12th annual Hardlines Conference, to be held in Toronto Oct.15-16, 2007.

Break-out sessions on in-store branding, how to use technology to compete against multi-format stores, and building sales through staff training are all designed to provide profitable tools for independents who want to compete in today’s consolidated market.

Guest speakers will include Jane VanNoy, a TIM-BR Mart dealer who won a Hardware Merchandising Outstanding Retailer Award in 2006. VanNoy will share with delegates the story of how she grew her business in the face of significant challenges. As president and CEO of Orgill, Ron Beal will explain how his company offers independents in the U.S. a supply model not available in Canada since the demise of Sodisco-Howden. Ian Gray, president of LBMX, will discuss how independents can use technology to compete with multi-store players. Phil Otto of Revolve Branding will speak to the issue of building the brand at store level.

To register for the Hardlines conference, click here.

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RONA’s recycled paint program hits milestone

BOUCHERVILLE — Last week marked the 10th year of operation for RONA’s paint recovery program in Quebec, which is managed in partnership with Peintures Récupérées du Québec. Over the least decade, 3.6 million containers of paint have been recovered, reconstituted and sold under the Boomerang Paint brand.

To highlight the anniversary, RONA declared September “Paint Recovery Month” in its stores across Quebec. Throughout the month, RONA is inviting consumers in Quebec to bring their old paint in to RONA and Rêno-Dépot stores. The goal is to collect 100,000 containers of paint.

The program is noteworthy because it began when the environment was not top-of-mind with mainstream consumers, said RONA president and CEO Robert Dutton in a prepared statement. “Our team was ahead of the game on the issue and showed leadership and innovation in creating what is still today a benchmark for North America in terms of paint recovery and recycling,” he added.

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Ace ponders going public

OAK BROOK, Ill. — Ace Hardware Corp., America’s largest co-op hardware wholesaler, has told its members it is considering launching an IPO to go public. According to Crain’s, Ace CEO Ray Griffith sent a letter to dealer members stating that converting to a traditional corporation would enable the company to generate cash to fuel expansion.

The move would follow the example of RONA, Canada’s second-largest home improvement retailer, which was a dealer-owned co-op until launching an IPO in 2004. Since then, the company has grown rapidly through acquisition, new store openings and dealer expansion. Ace has also been on an aggressive expansion campaign, opening 130 stores or more a year for the past three years.

Going corporate would not only provide cash to help dealers stay competitive, but could very well anticipate the expansion of RONA into the U.S., a move that the company’s CEO, Robert Dutton, has expressed interest in making.

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Home Depot has grand opening in China

BEIJING  —  Home Depot made its public entry into China last week, with launches at the 12 Home Way stores it acquired late last year. The formal openings came after eight months of associate training, consumer analysis, and remerchandising at stores in Tianjin, Beijing, Xi’an, Qingdao, Shenyang and Zhengzhou, all of which have underwent interior and exterior renovations.

As part of its entry into the Chinese market, Home Depot launched its Eco Options program, and installed water treatment centers in each location to show consumers how to purify their water for drinking. New bathroom products from Kohler have also been introduced, as has the Behr paint brand, which is sold from newly designed “colour centres”.

Annette Verschuren, president, Home Depot Asia and Canada, was there with Yves Chen, president, Home Depot China, to thank management and associates of the Home Way—now Home Depot.

“Their energy, positive attitudes and dedication to excellent customer service are unparalleled,” said Verschuren. “Thanks to their dedicated efforts, combined with Home Depot’s international strength in retail and innovative product sourcing, we are reshaping our stores to best meet the needs of China’s home improvement customers.”

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Loblaw’s new format superstore opens in Milton

MILTON — Loblaw’s Co. Ltd., which has suffered several quarters of disappointing results, opened a pilot of its new superstore format here last week.

The new-format store, formerly called the Real Canadian Superstore, has been renamed Loblaw Superstore.

The ailing retailer will have placed high hopes on consumer response to the new layout, which includes wider aisles and “clutter-free” checkout lines that are devoid of magazines, confectionery and sundry items. Other changes include improved lighting and signage, and more polished presentation of merchandise.

Home and appliance departments have been scaled back, with new prominence given to the Joe Fresh Style, a line of affordable clothing and accessories. That line now features a range of stylish clothes for children and teens.

More importantly, a new line of home décor items is expected to hit store shelves in time for the holiday season.

There is also a strong “green” component to the new store. As part of Loblaw’s commitment to eliminate one billion plastic grocery bags from Canada’s landfills within one year, it will be the first major grocery store in North America to discontinue use of traditional plastic grocery bags. The parking lot also includes a small number of preferred spots for hybrid vehicles.

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Tembec acquires green energy plant

TEMISCAMING, ON — Tembec has finalized its acquisition of Chapleau Cogeneration Ltd. in Chapleau, ON. The transaction, which closed on Aug. 15, consists of a series of future annual payments to 2022, with a present value of approximately $1 million. With the addition of the Chapleau facility, Tembec’s total captive generating capacity at its facilities in Canada and France exceeds 150 megawatts. All of the 26 megawatts located in Ontario are “green”, based on either hydro or biomass – fired generation.

Located next to the Chapleau SPF sawmill, the cogeneration plant uses wasted heat to provide energy, and are “a valuable addition to Tembec’s operations,” Dennis Rounsville, president of the Forest Products Group, said in a prepared statement. The cogeneration plant receives most of its biomass fuel supply directly from the sawmill and, in return, the sawmill receives steam for its lumber kilns.

“This is a very logical and sound acquisition,” said Mr. Rounsville. “It is also consistent with our corporate priorities in terms of increasing the amount of electricity produced internally and reducing our reliance on purchased energy in all forms. [It] will contribute to a further strengthening of the competitive position of an already good operation.”

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Home sales will remain strong in 2007

OTTAWA —  Robust activity in the first half of the year will allow home sales to reach record levels again in 2007, according to the Canadian Real Estate Association, which is forecasting an 8.1% increase to 523,100 units. Activity is forecast to drop slightly in 2008, but will reach the second highest annual level on record in almost all provinces.

Prices increases are forecast to be smaller next year. Hot markets in British Columbia and Alberta are expected to cool in 2008, although CREA forecasts that annual price increases will be the greatest in those provinces.

“The resale housing market will become more balanced as rising prices and higher mortgage interest rates gradually impact affordability,” CREA chief economist Gregory Klump said in a prepared statement, adding that high employment will contribute to healthy activity, even if prices and interest rates continue to rise.

Meanwhile, the CHMC is a predicting that housing starts will moderate this year to 220,000 a decrease of 3.2% from 2006.

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Lowe’s weathers slumping sales in regional markets

MOORESVILLE, NC — Weak sales in parts of California and Florida, which have been hit hard by the housing slump, have affected second quarter results for Lowe’s. But the second-largest home improvement retailer in the U.S. still posted a 5.8% increase in sales for the quarter ended Aug. 3.

2Q sales stood at $14.2 billion, up from $13.4 billion in the same period last year. Comparable store sales for the period declined 2.6%, and were down 4.4% in the first half of 2007.

There were marked regional disparities, with parts of the north-east showing above-average same-store sales, while double-digit negative comps were posted in parts of California and Florida, where Lowe’s recently laid off 200 workers at its distribution centre in Kissimmee.

The company did unexpectedly well in certain categories during the quarter, including nursery, landscaping, seasonal and exterior paints.

While acknowledging that the market will probably remain “challenging” in the near-term, Lowe’s chairman and CEO Robert A. Niblock said in a conference call that the company was pleased to continue to capture market share and that it expected to see the market improve in the back end of 2007.

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Greenpeace urges sustainable forestry practices

MONTREAL — Environmental watchdog Greenpeace has released a report identifying Canadian companies it says are not doing enough to prevent the destruction of the country’s boreal forest. Among the 35 companies listed in the report are Best Buy, Sears and RONA, all customers of Abitibi-Consolidated, Bowater, Kruger and SFK Pulp, which Greenpeace says practice destructive logging. The report also condemns the governments of Ontario and Quebec, which it says do not do enough to protect forest from industrial development.

Responding to the report, RONA issued a statement that it does not buy any product derived from endangered species and that it favours the purchase of product that bears Forest Council Stewardship, Canadian Standards Association, Sustainable Foresty Initiative, and ISO 14001 certifications.

Earlier this year, RONA announced it was reviewing its sustainable development practices and would make public a strategic plan for environmental responsibility at the end of October.

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Sale of HD Supply hits snag

ATLANTA — Home Depot has disclosed that the three private equity firms that agreed to purchase its HD Supply business want to restructure the $10.33 billion deal. Two factors — a persistently weak housing market and a drying up of liquidity in financial markets — appear to have influenced the investors’ decision, and Home Depot said these discussions “could result, among other things, in material changes to the terms and financing of the transaction.”

If the purchase price goes down, that could also affect Home Depot’s tender offer to buy back $22.5 billion of its stock, which will be partly funded from the proceeds of the HD Supply sale.

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Doug Robinson leaves Lowe’s Canada

TORONTO — Doug Robinson, the affable and enigmatic president of Lowe’s Canada, has resigned suddenly “for personal reasons”. He has been replaced by Don T. Stallings as president, reporting to Larry Stone, president and COO of Lowe’s Cos. in Mooresville, N.C.

Robinson, who had previous experience in Canada (he headed up Beaver Lumber before its sale to Home Hardware Stores in 1999, and later ran a construction company in Eastern Ontario), joined Lowe’s in 2004 to help the company develop its international business. Until his resignation, he led Lowe’s Canadian executive and merchandising teams at their offices here.

Stallings, on the other hand, is a Lowe’s veteran who joined in 1994. Moving  up through the ranks, he served as district manager, merchandising vice-president and, most recently, RVP of operations in Lowe’s south central division. Based in Houston, it represents the fourth largest metropolitan market in the U.S.

In 1997, as regional vice-president, Stallings was responsible for leading a team that opened six stores in one day in Dallas, Tex. — a first for the company. And that may be the clue to Stallings’ appointment. Lowe’s entered this market promising six to 10 stores by the end of 2007. But now, well into the third quarter of the year, it has yet to open a single location. Ground was broken on the first Lowe’s store in Hamilton, ON almost one year ago (Sept. 21, 2006).  But that store, while finished, sits empty, as other Lowe’s sites remain in various stages of construction.

Stallings came up last Wednesday to meet the Canadian team.

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Hardlines Conference scores Don Cherry

TORONTO — Hockey legend Don Cherry will meet and greet Hardlines Conference participants during a special appearance on the morning of Oct. 16, 2007.

The Hardlines Conference, Oct. 15-16, 2007, will kick off Day Two this year with the Newsmaker of the Year Awards Breakfast, which is included in Day Two registration.  Cherry, who will appear courtesy of conference sponsor Rayovac Canada, will be on hand to meet with delegates and sign autographs.

“Don loves to sign autographs and interact one on one with people,” says Robert Cayer, director Canada, Rayovac and Remington divisions of Spectrum Brands Canada Inc. Cherry’s involvement with Rayovac will include featuring his image in all aspects of the battery line’s Canadian relaunch. Cherry’s strong recognition factor with Canadians, and his reputation for telling it like it is, will boost the brand’s value proposition of lasting as long as the other national brands, says Cayer.

The Hardlines Newsmaker of the Year Awards are presented as part of the Hardlines Conference, the annual information and networking event for members of the hardware and home improvement industry. Click here for more information.

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RONA’s 2Q growth driven by acquisitions

BOUCHERVILLE, QC — Second-quarter sales at RONA jumped 9.1%, on net earnings of $86.2 million, an increase of 7.7% over 2006.

However, sales from acquisitions such as Chester Dawe, Matériaux Coupal and Mountain Building Centres, contributed to about 4.3% of growth. Organic growth, generated by new stores, the acquisition of affiliate stores, and a small increase in sales in the distribution network, had less impact.

Same-store sales grew by only 0.3%, although, adjusting for depressed lumber prices, same-store sales grew by 1.4%. April, which brought poor weather to many parts of the country, was especially hard on same-store sales. However, sales, and basket size, grew in May and June, as weather — and consumer confidence — improved.

“Considering the fact that current conditions are less favourable to a strong increase in same-store sales, we are satisfied with these second-quarter numbers,” Robert Dutton, RONA’s president and CEO, said in a prepared statement. “We achieved these record results by taking additional measures to stimulate sales of our private-label products, increase customer loyalty and improve our efficiency.” Private label now accounts for about 14% of RONA’s sales; the goal is to get that up to 15% by year’s end.

With another 15 possible acquisitions currently under review, Dutton asserts that the company is on track to achieve its sales targets. Those companies are in both the retail sector and the commercial side, along the lines of Noble Trade, an Ontario-based wholesale chain, which RONA bought at the beginning of this year. In addition, the company plans to open six more stores, for a total of 10, in 2007.

“I am still confident we can achieve the objective of our “7-07 Program”, $7-billion in annualized retail sales by the end of 2007,” Dutton said.

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AFA acquire Lighthouse Lumber

BOLTON, ON  — AFA Forest Products, a distributor of construction plywood and lumber with 10 branches from Vancouver to Quebec, has extended its reach into Eastern Canada with the acquisition of Lighthouse Lumber Wholesalers.

Lighthouse, which currently has locations in Moncton, Halifax, and St. John’s, has estimated annual sales of about $30 million. It was started by Jean LaFlamme, after he sold his first business, the highly successful Dartmouth Building Supplies, to Piercey’s Building Supplies in the mid-80s.

To oversee the Lighthouse operation, AFA has hired John Morrissey away from TIM-BR MARTS Ltd., where he has served as vice-president.

Morrissey, who will take up the new position at the end of August, says the deal between Lighthouse and AFA is good news for independent dealers in Eastern Canada. “Distribution is an integral part of LBM. Through consolidation, we’ve actually seen a shrinkage in the distribution channel, so there are fewer opportunities for where retailers can get product. Having a company like AFA come to the region brings a very strong vendor to the market,” he says.

While Lighthouse will continue to operate under its own banner, the partnership with AFA will allow it expand into new product lines, such as plywood, OSB flooring and laminate, and MDF.

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UFA picks up Ft. McMurray dealer

CALGARY — UFA Co-operative Ltd. has acquired Spruceland Lumber, a one-store building supply dealer that has experienced tremendous growth since opening here in 1998.

The move follows the acquisition earlier this year of Bar-W Petroleum & Electric of Red Deer. It also signals the company’s plans to expand beyond agricultural supply into the lucrative construction and building sector in rural parts of Western Canada, according to Chuck Coté, vice-president of UFA, farm and ranch division.

“There is not a lot of revenue in Ft. McMurray in the agricultural sector,” says Coté. “But it was identified in UFA’s strategic plan as having a lot of potential in the petroleum and building sectors.”

Coté added that Spruceland is a good fit partly because many of its existing vendors already deal with UFA.

Spruceland brings to 36 the number of UFA stores that offer building supplies and general merchandise.

The store, which includes 19,500 square feet of retail space, an 8800-sq.-ft. cold storage warehouse and a three-acre yard that sits on a 4.7-acre parcel of land, will continue to operate under the Spruceland banner, allowing UFA to enter the market under an established brand.

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Wal-Mart to enter into joint enterprise in India

NEW DELHI — A joint agreement to establish a wholesale cash-and-carry and back-end supply chain management operation with a multi-platform business group will allow Wal-Mart to enter into India, where government regulations prohibit foreign retailers from selling directly to customers.

The giant retailer has signed a deal with Bharti Enterprises, which is involved with the Indian telecom, agribusiness, insurance and retail sectors.

Under the partnership, Bharti Wal-Mart Private Ltd. will oversee a wide range of wholesale cash-and-carry products operations to businesses and retailers, including Bharti Retail, which is setting up a chain of stores across India.

The first facility is expected to open by the end of next year, with 10 – 15 opening over the next seven years.

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LBM, hardware rank high in retail commodity sales for 2006

OTTAWA — Retailers had a good year in 2006, as all major commodity groups, including hardware and building materials, enjoyed strong increases. According to a new report by Statistics Canada, Retailers Competing for Market Share: 2006 Sales in Review, total sales increased by 6.4% from 2005, with total sales at retail reaching $390.6 billion.

Sales of hardware and home renovation products (which include lumber and building materials) represented the fastest growing commodity category, rising by almost 10%. Overall, the hardware/LBM category was worth $27.3 billion in 2006, up 9.9% from the previous year. That represents an average of $836 for every single person in Canada. Within the commodity group, hardware and home renovation products were up by 9.2% to $21.5 billion, while lumber and “other building materials” were up by 12.2%, to account for the remaining $5.8 billion.

While not taking into account all sales by stores within the hardware/home improvement channel, the Stats Can study gives a picture of sales within specific commodity groups. And even though the hardware commodity group does include lumber and building materials, including some lawn and garden products, it does not include household maintenance and cleaning products, a range of lawn and garden products, or kitchenwares and housewares. (Nor does this study include Canadian Tire’s sales, which are tracked under general merchandise stores.)

Taking into account all sales by retailers in the hardware/home improvement sector, the industry grew by almost 6% overall, reaching close to $39 billion in total sales, according to the latest report in our sister publication, Hardlines Quarterly Report (click here for more info on this important study! — Editor).

According to the Stats Can study, new housing was the biggest factor driving the growth in retail sales. However, investment in renovation spending increased by 8.7%, to $32.0 billion last year, representing 40.1% of total residential construction investment in 2006.

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RONA’s newest store boasts new-look store brand

LEAMINGTON, ON — RONA opened another new store here, the latest in several in the retailer’s network to bear only the company name without being further delineated by store type. The move is part of an ongoing strategy to standardize the company’s stores by naming new stores as they are built and renaming existing stores as they are renovated.

The RONA Leamington store features a retail sales area of 52,000 square feet, approximately 23,000 SKUS, a 70,000-square-foot outdoor lumberyard with a 7,500-square-foot covered zone, and an 11,000-square-foot garden centre.

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IKEA launches plan to reduce bag use

BURLINGTON, ON —  IKEA Canada has unveiled a plan to reduce the 25 million plastic bags used annually by Canadian shoppers at its stores by 50%. Beginning in October, the retailer will charge shoppers five cents per plastic bag.

All proceeds from the sale of plastic bags will be donated to Tree Canada, a non-profit partner that plant trees to help offset carbon dioxide emissions.

IKEA will continue to sell, for $1, its signature blue bag, which can hold up to 60 kg and be reused.  “IKEA Canada sees social and environmental responsibility as a prerequisite for doing good business,”  Kerri Molinaro, president of IKEA Canada, said in a prepared statement. “Not only that, our customers are becoming even more environmentally savvy and expecting retailers to operate their businesses in a green way.”

The Canadian initiative follows enthusiastic consumer response to similar programs in the U.K. and the U.S. Research by IKEA Canada found that over 70% of customers supported an environmental alternative to help reduce plastic bag use.

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Hbc head office achieves green designation

TORONTO — Hudson’s Bay Company’s corporate head office here has become the first office tower in Canada to achieve a “zero waste” designation, quantified by an audit performed by C. D. Sonter Environmental Consultants.

The company has also piloted zero waste products at two Hbc stores in the Greater Toronto Area and plans to introduce the program at an additional five stores and two other corporate offices by the end of August. “Achieving zero waste at Hbc’s head office tower highlights our ongoing efforts to innovate in the area of environmental sustainability,” Mike Rousseau, president, Hbc, said in a prepared statement.

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American Standard sells bath/kitchen division

PISCATAWAY, N.J. — In another sign that an era in the home improvement industry’s history may be coming to a close, American Standard Companies, once a brand name synonymous with bath fixtures, is selling its bath and kitchen business unit to Boston-based Bain Capital Partners for $1.76 billion.

Bain is one of three private equity firms that paid $10.3 billion to acquire Home Depot’s HD Supply division, which includes Hughes Supply, one of the largest plumbing distributors in North America.

American Standard’s move was not a surprise, as the corporation now wants to focus entirely on its HVAC business. The company intends to change its corporate name to Trane, its primary brand for air-conditioning systems. But it also intends to keep the American Standard brand alive on certain products.

Earlier this year, American Standard sold Venestra Washroom Systems, which had been part of its bath and kitchen unit. And on July 31, the company will spin off its vehicle-control systems business into a publicly traded company called Wabco.

The bath and kitchen business that Bain is buying did $2.4 billion in sales last year from 54 production facilities that employ 26,000 workers in 23 countries. That business unit lost $18.4 million in 2006, versus a $102.2 million gain in 2005. Its brands include Ideal Standard, Armitage Shanks, Porcher, Jado, Ceramica Dolomite and Vidima.

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B.C. coastal foresty workers strike

VANCOUVER — Loggers and sawmill workers belonging to the United Steelworkers have begun a strike that has stopped work at 31 companies that are members of the Forest Industrial Relations (FIR) and Island Timberlands. According to a report in the Globe and Mail, the union wants to restrict the companies’ right to impose 12-hour shifts, and is demanding more pay for Sunday work.

FIR’s final offer included a 2% pay increase this year and a 3% increase in June 2008, along with an offer to give workers “more input” into shift scheduling. Both sides are negotiating under highly competitive market conditions, which include a rising dollar and falling housing demand.

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Global sourcing helps CanWel expand its offering

BRAMPTON, ON — CanWel Building Materials, one of Canada’s largest national wholesale distributors, has been expanding its product offering through stronger partnerships with domestic suppliers even as it adds new suppliers that are global in scope.

“Over the past two years, CanWel has been implementing new categories and strategies to better serve our customers,” says John Taggart at CanWel. Those categories include laminate flooring, engineered wood, panel products, and even closet storage systems.

“We are partnering with global leaders that have operations based both domestically and abroad.” CanWel’s extensive logistics and service capability makes it an effective sales and marketing arm for these brands. One such partner is Arauco Wood Products, based in Chile and one of the world’s largest suppliers of plywood panels. Sold under the AraucoPly name, it is sourced from certified, plantation-grown timber.

And exactly one year ago, CanWel made a deal with Boise — the world’s second-largest manufacturer of engineered wood products — to become sole national distributor of its engineered wood products. A new category at the time for CanWel, it was one loaded with opportunity, says Taggart. “Engineered wood products are becoming more prevalent in construction. They offer performance advantages, while from a manufacturing standpoint they provide a greater yield from the log,” he says. “Our dealers were asking us to enter the marketplace.” Boise’s engineered wood production comes from both Canada and the U.S.

CanWel remains committed to domestic production, as well. For example, it acts as the sales and marketing arm nationally for West Fraser’s MDF products and Perfecta hardwood plywoods.

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TIM-BR MART openings showcase new merchandising program

CALGARY — A new-concept store design highlights a spate of recent grand openings for TIM-BR MART stores across the country. Besides new facades and refurbished merchandising, some of these stores are taking advantage of a new kitchen and bath program.

The flagship for this program is Woodland TIM-BR MART, which actually had two grand re-openings this spring for its stores in Grand Prairie and Fairview, AB.

The Grand Prairie location features new Kitchen and Bath “Design Galleries”. By showing the end-use of the full array of products in completed ‘vignettes’ — everything from lighting and flooring to cabinets and bath fixtures — customers are able to make important buying decisions for their own renovations. The vignettes are also designed to serve as showrooms for TIM-BR MART’s contractor customers, enabling them to walk their own residential customers through the vignettes during the planning process.

TIM-BR MART’s new Kitchen and Bath Galleries are scalable in presentation so they can accommodate larger format stores like the Woodland store, but they’re also suitable for smaller formats, such as a newly renovated store in Westport, ON, which had its grand re-opening in May. Along with updating its look with TIM-BR MART signage, the store added new services like plan estimation and custom wood-cutting, and introduced new Kitchen and Bath departments to help consumers planning renovations.

Other TIM-BR MART recent openings include Standard Building Supplies in North Vancouver; Washago TIM-BR MART in Washago, ON; and King St. TIM-BR MART in Shelburne, NS.

TIM-BR MARTS Ltd. represents more than 600 Member locations across Canada, with $2 billion in annual purchases and more than $3.4 billion in retail sales.

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TruServ goes high-tech with shorter fall market

WINNIPEG — TruServ Canada Inc. will hold the Fall National Merchandise & Planning Market Oct. 20–22, 2007, but the event will be a day shorter this year.

“The change was made as a result of feedback from stores who are able to prepare before coming to Winnipeg through advance bookings or on-line,” said Terry Derraugh, vice-president of merchandising.

More than 700 independent retailers have the opportunity to attend this market to plan their business for the next six months and to coordinate their spring and summer product purchase. Over 400 major manufacturers showcase a wide selection of the season’s upcoming products as well as timely specials on everyday products.

This year’s program will feature a new rewards program that earns points for TruServ customers. The program will be unveiled at the members’ dinner on Sunday evening.

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Home Depot identifies objectives

ATLANTA — During a recent internet broadcast, Home Depot’s chief officer Frank Blake restated his company’s five priorities and what it has done to fulfill them:

• Associate engagement. The company recently offered its assistant store managers performance-based stock bonuses, and continues to develop personnel through its Master Trade Specialist program.
• Product excitement. Within the past quarter the company launched its Eco Options line of environmentally friendly products, and has accelerated its review of product lines. Blake identified hardwood flooring, lawn and garden, patio, and hardware and tools as categories where the company has gained market share; and bath and faucets as categories that present opportunities.
• Product availability. Home Depot’s new warehouse management system went live at two of its distribution centers.
• Shopping environment. The company has completed over 1,000 store remodeling projects in 50 markets, and expects to spend 2.5 times its 2005 budget on store maintenance this year.
• Own the pro. This is, perhaps, the company’s greatest challenge, now that HD Supply is going away. Home Depot said it has been adding sales managers dedicated specifically to pro customers, and has seen its bid-room volume increase more than 200% this year.

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Kingfisher targets growth in Russia

LONDON — Kingfisher plc, the world’s third-largest home improvement retailer, has announced its intention to expand aggressively in Russia. It wants to build 50 Castorama stores over the next 10 years, at a cost of £250 million.

According to the BBC, Kingfisher already has four Castorama stores there, mainly in urban centres, including one that opened last month in Moscow. A buoyant economy there, fuelled in large part by the burgeoning oil and gas sector, is driving growth of Russia’s home enhancement market at a rate of about 12%, says the company. It anticipates opening up to 15 stores in Moscow and five in St. Petersburg.

Expansion in Russia helps Kingfisher juggle its losses in the U.K., where the home enhancement market is showing only tentative signs of a turnaround, and its position in Asia, which now faces the incursion of Home Depot.

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