Archives

Sep. 12, 2005

 


John Caulfield, Contributing Editor
vol. xi, #34, September 12, 2005

IN THIS 10TH BIRTHDAY ISSUE:
• Home Depot joins forces with Mike Holmes
• Katrina’s devastation will take years to repair
• ILDC member adds store
• Big boxes show appliance gains
• Sears CEO gets ousted
• Home Depot opens first smaller store in Ontario
• Wal-Mart ads like Target?
* * * * * *

“What a long, strange trip it’s been.”
—The Grateful Dead (American rock band, from “Truckin’ ”)
HOME DEPOT PROMO ALLIANCE PUSHES INSTALLED BUSINESS
TORONTO – Home Depot Canada is the latest major Canadian retailer to ally itself with a television personality. But rather than promoting the store through a particular category or celebrity product line, the deal with Mike Holmes, host of HGTV Canada’s Holmes on Homes, will serve to promote Home Depot’s Installation Services business.Under a contract that will last for three years, Holmes will work closely with the company’s team of project coordinator and service providers to educate Canadians about how to pick the right contractor. Further, Holmes will help promote the availability of such contractors through Home Depot’s own Installation Services.

Holmes will work closely with Mike Clements, director of Installation Services for Home Depot Canada. “Mike is a great fit because he bridges the gap between the do-it-yourselfer and the do-it-for-me consumer,” says Clements. “We want Mike on board
because he understands contractors and consumers and can help raise awareness that The Home Depot, like Mike, does it right the first time.”

Home Depot has a network of 3,000 installers across Canada. According to Clements, they perform 5,000 installed projects per week.

How Holmes’s role will be parlayed into consumer awareness has not been clarified entirely yet, but his presence is considered a strong one for fortifying Home Depot’s position as not just a traditional purveryor of home improvement products, but the source for installing those products, as well. While he’ll work primarily with the Installation Services team, he’s also being used to provide input on product assortments for the company’s merchandising departments, and on how the retailer can better serve the contractor in general. He’ll even offer input on staff training. In additon, he’ll appear in advertising, website and other future endeavours.

“He’s going to help us run our business,” says Home Depot Canada president Annette Verschuren. “We want to get better. We want to improve everything we touch.”

RESTORING HOMES FOLLOWING KATRINA
EXPECTED TO TAKE YEARS
WASHINGTON — The number of homes destroyed by Hurricane Katrina will, in all probability, dwarf losses from any other disaster in the United States. It is expected to place considerable strain on the supply and pricing of building materials, as well as labor. But don’t expect home replacements to come any time soon, as efforts will focus initially on repairing whatever dwellings can be fixed. That’s the early assessment of the storm’s impact by economists of the National Association of Home Builders, who used the damage wrought by past storms as their measuring stick.

Hurricanes that hit the southeastern U.S. in 1992 and in 2004 destroyed between 27,000 and 28,000 homes each. However, “the number of homes with major but reparable damage was more than twice the number destroyed,” states NAHB. On the other hand, Katrina caused massive flooding in Louisiana, Alabama and Mississippi that “is likely to translate into much larger numbers of homes destroyed” or permanently uninhabitable. The trade group estimates that as many as 200,000 homes in New Orleans alone might have suffered this fate.

Consequently, emergency repair will take precedence over rebuilding, and commodities like roofing and plywood that would normally be earmarked for reconstruction activities will go first to repair work. On the other hand, “demand for other materials, such as concrete, is likely to decline initially, as planned projects are cancelled or delayed during the initial recovery period.”

Besides, the trade group noted, history indicates that the demand for new homes in a market that has been devastated does not necessarily lead to an immediate surge in construction. “Replacing units destroyed by the storm will not begin for many months and will take place slowly, over a number of years. ”

NAHB points out that the storm damaged and shut down several lumber mills, and disrupted imports of building materials. (The New Orleans and Mobile customs districts reported about 12% of national cement imports in 2004.) That invariably will impact supply down the road. The combination of greater (partly speculative) demand and disrupted supply produced a spike in lumber and panel prices in the final days of August 2005. With production already running at full capacity for wood panels, further increases for those products, as well as for roofing, are likely.

I.L.D.C. MEMBER OPENS SECOND STORE
OSHAWA, Ont. – Millwork, a longstanding member of the buying group Independent Lumber Dealers Cooperative, has opened a third store, about two hours east of its flagship located here. The new store was erected in Peterborough, Ont, and opened last month. This is not Millwork’s first foray into Peterborough. In fact, it already has a contractor facility in town, but decided to add the retail facility, locating it just down the road. “We’ve already been doing a great contractor business there for a couple of years,” says Sue Lupton, vice-president of the family owned operation, which had estimated sales in 2004 of $47 million.

The new store is 15,000 sq.ft. in size, which includes 5,000 square feet of retail space.

SEARS HOLDINGS OUSTS CEO
CHICAGO — On the same day that it reported a lackluster quarterly financial performance, Sears Holdings disclosed that it has replaced its CEO, Alan Lacy, with Alywin Lewis, who had been CEO of Kmart before the two retail giants merged.Lewis will have responsibility for the operations of the company’s 3,900 stores, as well as home services, finance, legal, supply chain, information technology and human resources. As important, however, was the decision by Sears Holdings’ chairman, Edward Lampert, to take over the corporation’s marketing, merchandising, design and Internet business.

Lacy had been running Sears since 2000. He will continue as vice-chairman and remain on the company’s board.

In the three months that ended July 30, Sears reported earnings of US$161 million, or 4.5% above the same period a year ago. That figure included a US$42 million restructuring charge. Sears stated that its quarterly revenue from the combined companies was US$13.19 billion, down 2% from the same period in 2004. Sears’ stores sales declined 3%, and its same-store sales were off 7.4%. Same-store sales for Kmart’s stores inched downward by 0.3%.

BIG BOXES SHOW APPLIANCE GAINS
ATLANTA – The home improvement big boxes are selling more appliances, at the expense of traditional department stores, according to the latest statistics from Stevenson Co. Lowe’s saw its unit share of the heavy appliance market swell to 16.1% in the second quarter, from 14.5% during the same period a year earlier, while Home Depot’s market share reached 9.2%, up from 8%.Those companies have been expanding their offerings in white goods, with a shift to more up-market brands. Home Depot recently added the LG Electronics line; Lowe’s will add products by Samsung later this year.

Lowe’s is the number-two appliance seller in the U.S., followed by Home Depot. Sears, while remaining in the number-one spot, has seen its market share fall from 36.9% a year ago to 33.1%. Best Buy is also feeling the heat from the home improvement big boxes. Its share slid from 7% a year ago to 6.3% in the second quarter.

HOME DEPOT DIVES INTO FOUNDER’S FISH TANK
ATLANTA — Home Depot has agreed to be one of six presenting sponsors of the Georgia Aquarium, which has been developed and paid for by Home Depot’s founder, Bernie Marcus. The other presenting sponsors of the 550,000-square-foot aquarium, which will open officially on Nov. 23, are Geogia-Pacific, AirTran Airways, BellSouth Corp., Southern Co. and SunTrust Banks. Another locally based corporation, The Coca-Cola Co., donated nine acres in downtown Atlanta to initiate the project, whose costs are now projected to exceed its original US$200 million budget.The sponsors have been brought in to defray some of the construction expense, which Marcus had pretty much been footing out of his own personal fortune. Each will sponsor an exhibit within the aquarium that, when completed, will hold eight million gallons of water and 100,000 fish.

In essence, by calling on corporate sponsors for help, Marcus is taking a page out of Home Depot’s playbook. When he started the warehouse retailer, Depot highlighted the fact that it carried nationally branded merchandise, much of which provided inventory to the dealer’s first stores at terms that, at the time, were unheard of in their flexibility and leniency.

WE’RE AT THE HARDLINES CONFERENCE SERIES
Monday, September 12 & Tuesday, September 13 finds the entire crew from World HQ at the Hilton Suites Hotel, 8500 Warden Road, Markham, at our 10th Anniversary Conference and Gala Dinner with the Outstanding Retailer Awards. We’ll report on the excitement next week for those few of you who can’t make it. Meanwhile, you can reach us at 416-708-4589.
COMPANIES IN THE NEWS
TORONTO – Home Depot Canada opens two stores in Ontario this week, including its first small-size store in that province. Tomorrow, a full-size outlet opens in Windsor, while in Chatham, a 60,000-square-foot store has its grand opening on Sept. 15. The store will be similar to another 60,000-square-foot location in Spruce Grove, Alta., complete with a drive-through lumber yard.BARRIE, Ont. – RONA Inc. broke ground last Friday on a new big box store in this city, which lies about an hour north of Toronto. On hand for the ceremony were Pierre Dandoy, executive vice-president big box stores, and James Jones, vice-president big box stores Ontario. The 110,000-square-foot store, which includes a 23,000-square-foot exterior garden centre and 4,000-square-foot greenhouse, will house more than 40,000 SKUs. A RONA Cashway store in town will remain open. The store will continue to serve customers including do-it-yourselfers and contractors, now and after the opening of the new RONA Home and Garden Barrie store.

BOLTON, Ont. – The TORBSA Buying Group has recruited a new member to its roster of contractor-oriented dealers. Brampar Building Supplies Ltd., Brampton, Ont., becomes the 29th member.

ST-ANTONIN, Que. – Bargain Building Materials will celebrate the grand opening of its first store in Atlantic Canada on Sept. 14. The store, Select Retail Store Ltd. in Dieppe, N.B., has joined under Bargain’s “authorized dealer” program, whereby existing independents can sign on to operate as Bargain Building Materials outlets. Another Maritime dealer has joined as well in Jacksonville, near Fredericton.

TORONTO – Following its acquisition of Lagostina, the Italian producer of stainless steel cookware, by Groupe SEB, Coranco Corp. will remain the exclusive distributor of the Lagostina brand in Canada. Independently, its subsidiary Groupe SEB Canada Inc., will continue to provide the distribution and services of all other international brands of Groupe SEB, including All-Clad, Krups, Moulinex, Rowenta and T-fal to its Canadian customers. Groupe SEB is in over 120 countries and employs 14,500 people in 49 countries.

PEOPLE ON THE MOVE
At Milwaukee Electric Tool Canada, John Mann has joined as national sales manager. He ws formerly at Paslode Canada, where, over a 19-year period, he was instrumental in developing sales of power nailing products within the retail channel. He will oversee all aspects of sales and distribution in Canada … Also at Milwaukee, Andrew Halstead has been named marketing service manager for Canada. He was most recently with Makita Canada. He will be responsible for marketing and advertising across Canada. (416-439-4181)Daniel Cayer has been named national sales manager at SFA Saniflo Inc. Canada, a maker of macerating toilet systems for residential and commercial applications. Cayer joins Saniflo from Bahco Tools, Inc. (formerly Sandvik Saws & Tools) … Cindy Campbell joins as Ontario sales manager. With more than 10 years experience, she joins Saniflo from Purolator. (800-363-5874)

Brad Dixon has joined King Marketing as B.C. sales manager. He brings more than 15 years of home improvement and other related experience to his new post, having worked most recently at IRLY Distributors Ltd. as dealer development manager. Brad’s responsibilities include the expansion and development of business in B.C. for the manufacturers represented by King Marketing. King Marketing services the big box stores with a team of service representatives and sells to the major regional accounts. (604-271-3455)

MARKET INDICATORS
Housing starts dropped to 201,000 units in August, down from 242,600 units in July, according to CMHC, defying analysts who forecast 230,000 starts. August housing starts in Canada’s urban centres fell 19.6% to a seasonally adjusted annual rate of 170,300 units. Urban single detached starts decreased 4.7% to 85,400 in August, while urban multiples decreased 30.6% to 84,900.

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

The How-To People are looking for the 10 best Recruiters in Canada.

 

 

The greatest story in the Canadian hardware business today is still being written…and the most exciting chapters are yet to come. If you feel you have what it takes to play a role in the implementation of RONA’s strategic development plans in recruiting and building relationships with new dealers from coast to coast, we want to hear from you. Now. Especially if you have experience in the hardware, building materials and home improvement industry, the ability to interpret financial statements and present budgets, and strong communications skills, planning and organizational skills. If you can see yourself succeeding as one of 10 new RONA Development Managers, please send your résumé without delay…and in total confidence…to serge.vezina@rona.ca . If selected for an interview, we’ll reply with a detailed job description and contact you in regards to this step forward in your career.
(09.12_09.26)


**********************************************************************************

PPG Canada Inc., a global leader in the production and technology of coatings and related products, has an immediate opening for a

MARKETING CO-ORDINATOR

This is an exciting opportunity for an energetic individual with a strong work ethic to become a part of our Architectural Coatings Group. You will be responsible for managing a variety of projects in a fast paced, deadline driven, project based environment. You will interpret, adapt and communicate corporate marketing initiatives to ensure optimal benefit to the Canadian dealer and sales operation as well as identify market trends and develop implementation programs and strategies to ensure market penetration and increased profits for the Canadian Architectural Coatings product offerings.

 

You will possess a Business degree, preferably majoring in Marketing with 2 – 4 years of related experience with familiarity in the paint, design or home improvement industry. We are looking for a goal-oriented candidate who possesses excellent written and verbal communication skills, is extremely organized with a positive mental attitude and possesses outstanding organizational and time management and computer software application skills. Fluency in the French language would be desirable but not mandatory.

All interested qualified candidates, should E-Mail their resume to aainsworth@ppg.com or fax their resume to (905) 855-6642
(08.29_09.12)

 

**********************************************************************************

Xtreem Sales is a well established sales agency in the hardware industry. Rapid growth is creating a need for expansion outside of Ontario. We are looking for successful and motivated agencies in the hardware and grocery industries to sell existing product lines.

Confidential inquiries to John Frizzell at (519) 762-9966 or xfriz@sympatico.ca
(09.12_09.26)

 

 

**********************************************************************************

SERVICES OFFERED
RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)

 

**********************************************************************************

 

MARKETPLACE

 


(08.01.05_08.31.06)

**********************************************************************************

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

 

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com

**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

 

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

Sep. 6, 2005

 


John Caulfield, Contributing Editor
vol. xi, #33, September 6, 2005

IN THIS ISSUE:
• Industry responds to Katrina’s devastation
• Bargain Building Materials adds franchisees
• TruServ, TORBSA and groceries
• Sears Canada sells credit card business
• Lanoga buys big independent
• Lowe’s plans new distribution center
* * * * * *

“Most single men don’t even live like people. They live like bears with furniture.” — Rita Rudner (American comedian)
RETAILERS STEP IN TO AID HURRICANE VICTIMS
MOORESVILLE, N.C. & ATLANTA Big box retailers have been preparing to aid victims of Hurricane Katrina, devastated by terrific storms last week in cities like New Orleans. Lowe’s Cos. has readied hundreds of truckloads of emergency supplies to deploy for relief efforts along the Gulf Coast. The company also announced that its more than 1,125 stores nationwide will serve as official cash donation sites to benefit the American Red Cross disaster relief fund. Lowe’s will match in-store customer contributions up to US$1 million. The Home Depot Foundation made a direct cash donation of US$1.5 million to support the relief and rebuilding efforts. Home Depot made a further donation of US$400,000 to emergency management organizations, including American Red Cross and The Salvation Army, for immediate disaster relief and recovery.

But relief efforts go right down to the local level, reflecting the desire by Americans everywhere to help out. For example, Alspaugh’s Ace Hardware in Kingwood, Tex., hosted a lemonade stand and food collection drive this past weekend.

KATRINA’S IMPACT FELT ON PRODUCT SUPPLY, PRICES
NATIONAL REPORT — Days after Hurricane Katrina swept through and devastated the Gulf coast in the southeastern U.S., the storm’s impact on building material supply and prices was already being felt.Random Lengths, a leading market tracker of lumber and plywood prices, notes that some panic buying sent prices of southern yellow pine, plywood, and oriented strandboard sharply higher. As of Thursday, prices for standard 2×4 studs cost US$330 per 1,000 board feet, up US$41 from last week. As much as 1 million board feet of softwood lumber in shipping ports ready to go to New Orleans may have been destroyed. A spokeswoman at Madison’s Canadian Lumber Reporter, an industry newsletter, said Thursday that 12-18 mills in the affected region have been shut down by floods, a lack of power, or blocked access roads.

Some commodities, like roofing and drywall, whose supply has been erratic and even on allocation in some weeks as a result of last year’s hurricanes in Florida, could be under duress, too, when rebuilding from Katrina begins. “We are running at capacity in our five plants, so I don’t know how much more we can do,” Thomas Karol, CEO of roofing supplier Elk Supply, told the Dallas Morning News. “We are running 24 hours a day, seven days a week.”

He added that the Florida hurricanes, which struck large population centers, increased overall demand for roofing material by 10% to 15%, whereas he expects damage from Katrina to increase demand by no more than 3%. “That’s still a lot of new demand in a market that is already tight.”

Perhaps the one saving grace is that the markets most affected by the storm are not in areas where high levels of new-home construction are currently taking place. However, the rebuilding effort could be monumental and take several years to complete. Michael Carliner, an economist with the National Association of Home Builders, told the Huntsville (Ala.) Times that the first phase for heavy demand on building materials will be repair-related, plywood, windows and oriented strand board used in roofing and walls. He predicted that homebuilding materials wouldn’t be in demand for some time, given the expected delays before any significant rebuilding can start.

“Rebuilding takes a longer time to start and a much longer time to finish,” Carliner said. “What we found after each natural disaster is that it’s very hard to detect that much additional construction occurred. That reflects a number of things: the reconstruction process is very slow, it may take a decade to really complete, and a lot of people don’t rebuild.”

He noted that last year’s four hurricanes that swept through Florida destroyed 27,000 homes, and he expected the damage to be worse from Katrina.

BARGAIN BUILDING MATERIALS CONVERTS
TO FRANCHISE SYSTEM
SAINT-ANTONIN, Que. Bargain Building Materials Stores/ Matèriaux à bas prix has identified a winning formula – one that involves franchisees instead of corporate stores. As a result, the company is undertaking a plan to convert its corporate stores into dealer-owned operations. The latest to make the switch are in St-Antonin, near Riviere-du-Loup, and St-Jean-sur-Richelieu. The Saint-Antonin and Saint-Jean stores, managed by Russel Beaulieu and Sylvie Giroux respectively, will handle operations of the stores, while Bargain Building Materials remains the owner of the installations and the inventory.

The program marks a major strategic reorientation initiated last May, which will result in all 15 corporate outlets being franchised within the next two years. Those franchises will be owned by Bargain, but operated by independent franchisees. Currently seven of the 15 stores have been successfully converted to this new arrangement.

“We realized that the financial contribution of the franchisee increases their involvement and motivation in all aspects, whether it concerns management or customer service,” says Christian Richer, president and founder of Bargain Building Materials. “This is the reason why we decided to initiate this more entrepreneurial approach in all of our stores.”

Bargain also has an “authorized dealer” program, whereby existing independents can sign on to operate as Bargain Building Materials outlets. Bargain began this program two years ago, but recruitment really began in earnest in the summer of 2004. Eventually, five independent dealers were recruited under the Bargain banner. Now, within the past month, another three authorized dealers have joined, including the chain’s first stores in the Maritimes. They are located in Dieppe, a suburb of Moncton, N.B., Jacksonville, near Fredericton. The third opening, in the Saint-Valère community of Victoriaville, Que., is scheduled for later this month.

“We carefully analyze the propositions that we receive, because we want to develop some solid partnerships,” says Richer. “I have the conviction that our outstanding breakthrough in the Maritimes will increase in the next few years.”

The company’s operations now comprise 22 stores in total. Of those, seven are corporate stores being operated under the franchise partnership arrangement and eight are waiting to be converted. Another seven are authorized independents. Headquartered in St-Antonin, Bargain Building Materials had sales of $35.2 million last year.

TRUSERV BUILDS TIES WITH TORBSA, GROCERY CHAINS
KITCHENER, Ont. TruServ Canada continues to fill its ranks with both traditional and non-traditional dealers. As part of a recent supply agreement with the Ontario building supply buying group, TORBSA, it has added a third member of that group to its ranks. This one, in Kelly Lake, Ont., marks the move by a growing number of building centres to ally themselves with stronger sources for hardlines products and programs.“Our support and expertise for independent retailers is not a secret anymore,” says Lionel Gagnon, national growth manager, TruServ Canada. “Our fill rates are about to exceed 97% year to date, allowing us to continue to provide basic services consistently while focusing on the opportunities locally. We have a number of other hardware and building centers talking to us and are at the stage where we expect to make a number of further announcements shortly.”

TruServ Canada has also signed a supply agreement with two grocery retailers, as part of TruServ’s latest initiative to supply general merchandise to retailers outside the hardlines arena. L.M. Food Market is a Southwestern Ontario grocery chain with locations in Harriston, Durham, Palmerston, Dundalk, Markdale, Arthur, and Elora. Selby Freshmarket has a single location in Elmira, Ontario.

“This program is growing quickly with grocery and pharmacy entrepreneurs in Western Canada,” says Gagnon. “We expect similar rapid additions in Eastern Canada, building our distribution capacity on products and routes already in place.”

LANOGA PURCHASES INDIANA INDEPENDENT
INDIANAPOLIS — Redmond, Wash.-based pro dealer Lanoga Corp. continued to expand its market reach this week when it purchased Carter-Lee Lumber, which operates a 15-acre yard here and a 21-acre roof and truss plan in Mooresville, Ind. Lanoga, the 10th-largest home improvement dealer in the U.S., will manage Carter-Lee from its United Building Centers division, which is based in Minnesota. Carter-Lee can trace its roots back to 1873, when its founder, George Carter, ran a hardwood sawmill. The company employs 235 people and generated US$88 million in revenue in 2004, according to the Indianapolis Star. David Carter, Carter-Lee’s president, will stay on to run the yards. He told the Star he was attracted to Lanoga because the larger company could provide expansion capital but tended to leave local management in place.

Only last month, Lanoga expanded into Texas for the first time through the acquisition of Parker Lumber, a pro dealer based there that operates 13 yards with US$32 million in revenue.

LOWE’S PLANS MAJOR DISTRIBUTION EXPANSION
MOORESVILLE, N.C. — Lowe’s Cos. plans to expand its already extensive network of distribution centers. The dealer, which has 1,125 stores in 49 states in the United States and has announced plans to expand into Canada, said that it would spend $150 million to build a 1.4-million-square-foot DC in Lebanon, Ore., that would be operational in 2007; and to add a total of 1.4 million square feet of space to existing facilities in Valdosta, Ga., Statesville, N.C. and North Vernon, Ind. The Charlotte Business Journal reports that Lowe’s will spend $12 million to add 324,000 square feet to the 1.15-million-square-foot Statesville DC alone, and will add 50 jobs to that 800-worker facility.Lowe’s currently operates 11 distribution centers and 10 flatbed DCs that handle the distribution of lumber and building materials. The company recently initiated a program called R3, for Rapid Response Replenishment, whose goal is to eventually flow at least 75% of its stores’ inventory through centralized distribution points, versus 50% today.

In a related development, the city of Rockford, Ill., has ironed out the details for Lowe’s to build a 1.4-million-square-foot DC there. The city has approved an estimated $2.6 million in tax breaks for the dealer, and will purchase 180 acres of land for $4.4 million, 152 acres of which it will sell to Lowe’s for $2.43 million.

 

COMING HARDLINES EVENTS:
School is back in session and it’s only 6 DAYS until the Hardlines Conference Series and Gala Dinner with Hardware Merchandising’s 14th Annual Outstanding Retailer Awards and Hardlines Newsmaker of the Year. Come join us in celebrating all aspects of hardware/home improvement retailing and Hardlines 10th Birthday!!!

If you aren’t already sure of a place, better click here and register right now!

COMPANIES IN THE NEWS
TORONTO Sears Canada Inc. has entered into an agreement to sell its Credit and Financial Services business to JPMorgan Chase & Co. As part of the transaction, Sears Canada and JPMorgan Chase will also enter into a long-term marketing and servicing alliance with an initial term of 10 years. Sears has servicing responsibility for the Sears Card receivables portfolio, on behalf of Sears Canada Bank, which is itself a wholly-owned subsidiary of Sears Canada. Upon completion of the transaction, JPMorgan Chase will acquire substantially all of the assets and liabilities of the Sears Credit and Financial Services business, including Sears Canada Bank. Most of Sears Credit’s 1,000 Sears staff will become employees of JPMorgan Chase. The transaction is expected to close by the end of this year, subject to regulatory approvals and closing conditions.TORONTO Hudson’s Bay Co.’s net loss eased by almost half in the second quarter, to $8 million from $15 million in the second quarter of 2004. Sales, however, were down slightly, to $1.602 billion from $1.627 million in the same period last year. The company recorded a loss before interest and income taxes (EBIT) of $13 million for the second quarter, compared with a loss of $10 million in the previous year. Same-store sales for Hbc’s Zellers discount division were up 0.7%, the second consecutive quarter of positive same-store sales. At the Bay (excluding Home Outfitters), same-store sales were down 3.9%.

TORONTO Canadian Tire Corp. has announced the sale and leaseback of its Cambie Street real-estate project in Vancouver, to RioCan Real Estate Investment Trust for $44.5 million. Canadian Tire expects to realize a pre-tax gain on the sale of approximately $8.9 million, which will be amortized over the 20-year term of the Canadian Tire store lease. The site includes a four-storey building anchored by Canadian Tire’s newest “urban” style 20/20 concept store (see last issue–MM).

ISSAQUAH, Wash. Costco Wholesale Corp. reported year-end net sales of US$51.87 billion, an increase of 10% over US$47.15 billion during the prior fiscal year. Same-store sales for the year were up 7% company wide, while the international division, of which Canada is a part, had a rise in same-store sales of 11%. For the fourth quarter ended August 28, the company reported net sales of US$16.37 billion, an increase of 10%.

ATLANTA The previously announced takeover by Home Depot of National Waterworks Holdings Inc. closed at the end of August, and according to a regulatory filing, the selling price was US$1.35 billion. National, a distributor of products for wastewater transmission systems, will become part of Home Depot Supply.

TORONTO Canadian Tire Corp. completed a public offering of $200 million in 30-year medium term notes pursuant to a prospectus dated March 14, 2005. The notes carry a coupon rate of 5.61% and mature on Sept. 4, 2035. Scotia Capital Inc. served as lead agent and bookrunner on the offering. Other syndicate members included TD Securities Inc. (co-lead), BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., and RBC Capital Market.

PEOPLE ON THE MOVE
At IMG, Michael (Mike) Semerak has been appointed executive vice president of sales & marketing. He will oversee the development of IMG’s global sales and marketing strategy and handle its business financial management. Before coming to IMG, Semerak was a sales executive at Koolatron Inc., and before that he held positions at Regal Greetings and Gifts, Rona Cashway Building Centers and Canadian Tire … Also at IMG, John Spankie has been appointed HVAC territory manager for Western Canada. He will manage HVAC sales from Manitoba to British Columbia, focusing on building business for the Greentek IAT division … Tony Gittens is now Ontario HVAC territory manager. Tim Boychuk has been appointed director, information technology at TruServ Canada Cooperative Inc. He reports to Bill Morrison, president & CEO. Most recently, Boychuk was CIO at E.H. Price, and before that served as director, applications development at Motor Coach Industries.

COLUMBUS, Ohio – Stephen Quinn has joined Wal-Mart as senior vice-president of marketing. He was formerly chief marketing officer at Frito-Lay, a division of PepsiCo.

MARKET INDICATORS
Real gross domestic product advanced 0.8% in the second quarter, as continued strength in personal expenditures drove output up in the services sector, reports Stats Canada. In June, economic output edged up 0.2%, after increasing 0.3% in May and 0.4% in April. The Canadian economy grew at an annualized rate of 3.2% in the second quarter of the year, compared to 2.1% in the last quarter.
NOTED…
Guess how many Home Depot buyers are coming to our Conference next week? Like, ALL OF THEM! That’s right, they’re going to be there to hear from Home Depot’s new top merchandiser, Tom Taylor, evp marketing and merchandising, who’s joining us from Atlanta. They won’t be alone: executives from RONA, Castle, Home Hardware and Canadian Tire will all be there. Don’t miss it!

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

 

PPG Canada Inc., a global leader in the production and technology of coatings and related products, has an immediate opening for a

MARKETING CO-ORDINATOR

This is an exciting opportunity for an energetic individual with a strong work ethic to become a part of our Architectural Coatings Group. You will be responsible for managing a variety of projects in a fast paced, deadline driven, project based environment. You will interpret, adapt and communicate corporate marketing initiatives to ensure optimal benefit to the Canadian dealer and sales operation as well as identify market trends and develop implementation programs and strategies to ensure market penetration and increased profits for the Canadian Architectural Coatings product offerings.

You will possess a Business degree, preferably majoring in Marketing with 2 – 4 years of related experience with familiarity in the paint, design or home improvement industry. We are looking for a goal-oriented candidate who possesses excellent written and verbal communication skills, is extremely organized with a positive mental attitude and possesses outstanding organizational and time management and computer software application skills. Fluency in the French language would be desirable but not mandatory.

All interested qualified candidates, should E-Mail their resume to aainsworth@ppg.com or fax their resume to (905) 855-6642
(08.29_09.12)   

**********************************************************************************  

DEVELOPMENT MANAGER – MANITOBA & SASKATECHEWAN

The Company

RONA is the leading distributor and retailer of hardware, home improvement, and gardening products in Canada.

The Objective

Reporting to the Director, Traditional Banners/Development – Western Canada, the successful incumbent will be an energetic professional with expertise in development and operations and /or have a thorough understanding of the home improvement industry. The key responsibility will be to oversee implementation of the organization’s strategic development plans for each existing banner while recruiting and building relationships with new dealers.

Responsibilities

• Implementation of RONA’s strategic development plan for each existing banner
• Be responsible for the recruitment and integration of new dealers within your assigned region
– Analyses the territory
– Evaluates potential dealers
– Presents the organization to prospective dealers
– Qualifies dealers according to membership criteria
– Ensures mentoring of new dealers for a period of 6 months after they join RONA
• Other duties and responsibilities as assigned by the Director, Traditional Banners/Development – Western Canada
Qualifications

• A minimum of 5 – 10 years of experience in the hardware, building material and/or home improvement industry
• Experience in recruiting new members
• Excellent ability to build relationships with dealers
• Ability to interpret financial statements and present budgets
• Flexibility to changing priorities with short notice to meet business needs
• Exceptional communicator with strong planning and organizational skills
• You must be comfortable with travel as there will be some overnights
• Motivated, self-starter able to work independently and as part of a team.
• Computer literate with strong understanding of Microsoft Office software
• Valid drivers license and safe driving record
• Autonomous
• College diploma an asset

To apply for this position please send your resume to john.penner@rona.ca. Thank you for your interest; however, only candidates selected for an interview will be contacted.
(08.02_09.05)


**********************************************************************************

SERVICES OFFERED

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

MARKETPLACE

 


(08.01.05_08.31.06)

**********************************************************************************

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

Aug. 29, 2005

 


John Caulfield, Contributing Editor
vol. xi, #32, August 29, 2005

IN THIS ISSUE:
• Home Depot’s new top merchant will speak at Conference
• Industry sizzles in ’04
• Canadian Tire gets new concept in Vancouver
• TSC strikes deal with co-op
• CanWel’s results impacted by conversion
• Ace, True Value report 2Q
• Whirlpool and Maytag merge
• Scotts to buy Rod McLennan
* * * * * *

“How many men would be mute if they were forbidden to speak well of themselves and evil of others.” —Mme. de Fontaine (18th century French novelist)
HOME DEPOT’S TOM TAYLOR STEPS IN TO SPEAK AT CONFERENCE
ATLANTA – Home Depot is rearranging its corporate suite again after the sudden announcement that its chief merchant has resigned. John Costello, the dealer’s executive vice-president merchandising and marketing, has left the company to “pursue other business opportunities,” according to a statement issued by the company.Costello–slated to speak at the upcoming Hardlines Conference–has been replaced by Tom Taylor, 39, a 22-year company veteran who most recently was executive vice-president stores. And in an incredible show of support by Home Depot itself, Taylor has stepped in to fill Costello’s shoes at the Conference itself on Sept. 13.Among other changes in Atlanta, Carl Liebert, 40, who had been senior vice-president stores, will assume Taylor’s former job. He also oversees Home Depot’s retail operations in the U.S. and Mexico. He’s been with Home Depot for only two years.

In what appear to be unrelated corporate personnel moves, Home Depot also promoted Joe DeAngelo, president of its Home Depot Supply division, to executive vp; and Marvin Ellison, its vp logistics, to senior vp. In addition, Bill Patterson, president of the recently formed Home Depot Asia division, is retiring at age 59. Asia’s vice-president operations, 40-year-old Chris Elias, will head up that division until Home Depot finds a permanent replacement for Patterson.

RETAIL MARKET REPORT: HOW BIG IS THE INDUSTRY?
SPECIAL REPORT – The first half of the decade has been one of tremendous growth for the retail home improvement industry. Housing starts reached a 17-year high in 2004, while an ever-aging stock of existing housing, not to mention the sheer popularity of renovation and remodeling that is more style- and fashion-driven than ever before, has made this sector one of the fastest-growing in the country.According to the latest market study in our Hardlines Quarterly Report, 2004 was no exception.Last year, those sales totaled $34.85 billion, up almost 9% over 2003. This sector’s growth even exceeded the level experienced from 2002 to 2003, when the industry at retail grew by an unprecedented 8.8%.

In terms of retail formats, where did the growth come from? The biggest growth continues to be in the big box format, which, through a combination of new store growth and same-store sales increases, managed to add $573 million in sales to the industry.

But to focus solely on big boxes is to underestimate the growth that continues among building centres. Once considered the most perilous of all formats in the wake of big box expansion, building centres are proving to be tenacious, especially in smaller markets – and particularly among those dealers organized into LBM buying groups.

For more info on this report, which appears in our sister publication, Hardlines Quarterly Report, <click here>.

CANADIAN TIRE UNVEILS ITS OWN URBAN STORE
VANCOUVER – Last week, Canadian Tire Corp. opened the doors to a new store here that will be the flagship for retail development in downtown areas. The 63,000-sq.ft. outlet, at Cambie St. and 7th Ave., puts Canadian Tire’s Concept 20/20 format into a distinctly urban-market environment. Complete with West Coast-inspired interior design, the latest trends in home décor and new and expanded product offerings, it’s part of Canadian Tire’s efforts to accelerate the replacement of existing stores within the 457-store chain with its 20/20 look.The store was developed specifically for the urban Vancouver market and boasts West Coast-inspired interior features, such as hardwood floors and shelving, an expanded home décor area, a roof top garden centre, and West-coast art throughout. With some 55,000 SKUs, the store features expanded product assortments in categories such as home décor, sports and leisure, footwear and apparel, cleaning products, storage and organization and ready-to-assemble furniture. The store also features a 13-bay Automotive Service Centre.“As part of our 2005-2009 Strategic Plan announced earlier this year, one of Canadian Tire Retail’s top priorities is accelerating the replacement of traditional stores and building new, more modern stores to better serve our customers,” says Mark Foote, president, Canadian Tire Retail, who was on hand for the grand opening earlier this month.
LOCAL CO-OP JOINS FORCES WITH TSC STORES
LONDON, Ont. – TSC Stores L.P. and Waterloo-Oxford Co-operative Inc. have formed a unique relationship in Woodstock, Ont. to offer more assortment to Co-op members while cross-promoting the two companies. Effective September 1, 2005, the co-op will close its Woodstock outlet and relocate its business within an existing TSC location in town. The co-op’s agronomist, Dave Robertson, and feed specialist, Doug Gee, will set up shop in the store, with offices to serve the co-op members. But those members will now shop for their farm-focused consumer products from TSC. In turn, the Woodstock TSC will expand its bagged feed program.Under the new agreement, purchases made by Waterloo-Oxford Co-operative’s Woodstock members at any TSC location will pay patronage dividends to the members of the co-op.The TSC store will expand next year to better accommodate the new enterprise. “This is just the first phase of a very compelling mutual relationship in Woodstock,” said Roy Carter, president and CEO of TSC. “The gears are in motion to build a new 18,000 sq.ft. store across the street that will open in the spring of 2006. It will house an expanded Waterloo-Oxford Co-operative agronomy office, where members will have the full services of the co-op at their disposal.”
HOME DEPOT OUTSOURCES WAREHOUSE MANAGEMENT TO RYDER
ATLANTA — Home Depot has awarded a multi-year contract to Miami-based Ryder Services, Inc., to manage the warehouses and equipment at Home Depot’s huge new distribution centers in Atlanta and Dallas, which together exceed 2 million sq.ft. Ryder, best known for its transportation and rental services, is expected to be fully integrated into those facilities’ management by September. The financial terms and the length of this agreement were not disclosed, but a joint statement said that these DCs have been opened to help accelerate Home Depot’s expansion in the U.S.
ACE REPORTS STRONG 2Q RESULTS
OAK BROOK, Ill. – Ace Hardware Corp. reported that wholesale hardlines sales reached US$913.9 million in the second quarter ended June 30, an increase of 4.9% over the second quarter 2004. Net earnings for the second quarter were US$33.5 million, compared to US$36.7 million in 2004. On a year-to-date basis, net earnings were US$48.1 million, compared with US$53.4 million in 2004. Ace enjoyed a 5.2% increase in sales through its 15 retail support centers, along with a surge in international sales of 12.4% for the quarter. Year-to-date, Ace’s wholesale sales have increased 3.2%, with total international sales increasing 7.4%.“Ace experienced solid sales results in the second quarter, thanks in part to the spring selling season, continued growth of the lawn and garden category in our stores, our Memorial Day Weekend Sale, and unseasonably hot weather in June throughout many areas of the country,” said Ray A. Griffith, Ace president and CEO, in a prepared release.Continued investments in retail locations and in technology initiatives caused a decrease in net income for the quarter of US$3.2 million. During the second quarter, 21 Ace stores opened across the country, adding about 300,000 sq.ft. of retail space to the Ace banner.
TRUE VALUE’S REVENUE DROPS IN SECOND QUARTER
Chicago, Ill. – True Value Company experienced a 4.1% drop in revenue to US$551.6 million for the quarter ended July 2, down from US$575.3 million for the same period a year ago. Net margin for the quarter was US$19.4 million, up 15.0% or US$2.5 million from US$16.9 million a year ago. True Value also reported revenue of US$1.06 billion for the six months ended July 2, 2005, a decrease of 1.8%, or US$19.5 million, from the same period a year ago. Net margin for the six-month period was up 15.9% however, to US$22.1 million. Same-store sales during the period were essentially flat.
LOWE’S, HABITAT LAUNCH AFFINITY CARD, DEPOT RAISES $$
MOORESVILLE, N.C. — Lowe’s Cos. and Habitat for Humanity, which specializes in the construction of affordable housing, are offering Lowe’s customers a way to contribute to Habitat’s efforts through their purchases at Lowe’s stores. Last week, the companies introduced a Lowe’s Habitat Card, an “affinity” card that allows customers to select which local Habitat chapter to credit, and scan the card with each purchase at a Lowe’s store. Grants of $5,000 will be awarded to the eight Habitat affiliates with the greatest number of points. Through the Lowe’s Habitat card, Lowe’s will award a total of $40,000 to affiliates in 2005.The card, which will be available through December 31, is being launched at Lowe’s 135 stores in Texas, Oklahoma and central Louisiana, where Habitat has 120 affiliates. In other Habitat news, its Canadian division received CD$514,000 from Home Depot and its vendors. The money was raised from an annual golf tournament conducted by the retailer and its suppliers. Habitat is fast approaching the construction of its 1,000th home in Canada.
SCOTTS TO BUY SOIL COMPANY
MARYSVILLE, Ohio — Scotts Miracle-Gro, the largest supplier of lawn care products in North America, has signed a definitive agreement to acquire Rod McLellan Co., a San Mateo, Calif.-based supplier of soil and landscape products that are marketed under brands that include Supersoil, Whitney Farms and Black Magic. Scotts said in a prepared statement that it will pay about $20 million for the company, which has 100 employees and three soil manufacturing facilities in California and Oregon. The deal is expected to close by October 3.McLellan specializes in selling its product to independent garden centers, so its addition would supplement Scotts’ business in potting soils, lawn and garden soils and mulches, which it sells broadly through home centers, garden centers and mass merchants.Scotts has also just announced the promotion of Robert Bernstock to the position of president and COO, effective Oct. 1. Bernstock, 54, joined the company in 2003 as president of the North American business group.

COMING HARDLINES EVENTS:
At the Hardlines Conference Series, September 12-13:
Our special rate at the Hilton Suites Hotel, Markham expires Aug. 31
Monday morning, September 12, hear the entire women’s report from ACNielsen, excerpted in the Hardlines Quarterly Report.
COMPANIES IN THE NEWS
VANCOUVER – CanWel Building Materials Income Fund enjoyed record second-quarter sales of $301 million, up from $176 million for the comparable period in 2004. Net earnings before costs associated with the conversion into an income trust were $5.1 million, compared with $3.9 million in 2004. Net earnings for the period were $2.3 million. However, EBITDA before the one-time costs related to the conversion was $9.9 million, or $8.7 million after the one-time costs, compared with $8.2 million for the comparable period last year. Despite the reorganization, sales during the quarter were strong, increasing by 68.7% over 2Q 2004. BEAUMONT, Texas — Redmond, Wash.-based Lanoga, Corp., the 10th-largest home improvement retailer in the U.S., is expanding into Texas for the first time through the acquisition of Parker Lumber, a pro dealer based here that operates 13 yards that generated US$32 million in revenue last year. Lanoga operates more than 300 locations from five divisions in the Western and Midwestern U.S., and its expansion strategy over the past several years has been to buy strong regional dealers — such as Dixieline Lumber in southern California and Home Lumber in Denver — and use them as springboards to expand in those markets. It is likely to follow that pattern with Parker Lumber.BENTON HARBOR, Mich. & NEWTON, Iowa – Whirlpool and Maytag have signed a definitive merger agreement in which Whirlpool will acquire all outstanding shares of Maytag in a cash and stock merger valued at US$21 per share. One half of the per-share consideration will be paid in cash and the balance in a fraction of a share of Whirlpool common stock. Prior to signing the Whirlpool merger agreement, Maytag had to pay a US$40 million termination fee to Triton Acquisition Holding and, thereafter, terminated the agreement it had previously made with Triton. In turn, Whirlpool has reimbursed the US$40 million to Maytag. The aggregate transaction value, including assumption of approximately US$977 million of debt, is about US$2.7 billion. The transaction is subject to customary regulatory approvals and Maytag shareholder approval.

MISSISSAUGA, Ont. – Taymor Industries Ltd., a Canadian supplier of builders’ and decorative hardware, has moved to a new Toronto-area distribution centre. The new centre is located in Mississauga at 6460 Kennedy Rd., Unit A, L5T 2X4, and features over 50,000 sq.ft. of warehouse space, as well as the offices for the national sales management and eastern sales teams. The new centre replaces an old facility in Downsview, Ont. Taymor’s head office will continue to support the new facility from its location on Annacis Island in Delta, near Vancouver B.C.

OAKVILLE, Ont. – Imperial Manufacturing has moved into a new 102,000-sq.ft. facility here that is home to a new building products manufacturing operation designed to support Ontario builders and contractors. In addition, it’s also carrying Imperial galvanized products.

BURNABY, B.C. – Taiga Forest Products Ltd. has received final approval from the Supreme Court of British Columbia for the amended arrangement under which Taiga intends to convert to an income fund-like structure using stapled units. Taiga expects the conversion to close on September 1, 2005.

PEOPLE ON THE MOVE
The IRLY Building Centres, and its distribution arm, IRLY Distributors Ltd., have announced the appointment Mark Jarman as hardware buyer at the distribution centre. Jarman worked most recently at Army & Navy and his career includes positions at Canadian Tire, Shoestrings and Sport Mart. (604-596-1551)Mike Crockford has joined Johns Manville as territory manager for British Columbia. He will be stationed in Langley, B.C. Crockford was formerly at RONA inc. (800-561-0943)Al Holton, formerly development manager for RONA inc. in Ontario, has left that company to pursue other interests. No replacement has been named for him as of yet. (He can be contacted at 519-473-3686)

Louise Hudon has been appointed as marketing director for Roland Boulanger & Co. Ltd., a Canadian manufacturer of decorative mouldings for the residential and commercial markets. Reporting to the general manager, Hudon will be responsible for marketing strategy and execution. She will also support the company’s retail and industrial sales departments with their communications, merchandising and category management needs. Hudon brings to Boulanger expertise in marketing and communications for Canadian and multinational retail and manufacturing organizations … She replaces Mario Cloutier, who will assume new responsibilities within the company. Founded in 1942, Roland Boulanger & Co. Ltd. (819-358-4100)

Imperial Building Products’ Oakville, Ont., operations have had some additions to its team: Danny Pittana has been named national sales manager, leading a Canada-wide sales organization … Paul Biasucci, joins as territory sales manager … Minh Ly joins the Oakville staff as building products customer service representative.

Can-Save has promoted Stephanie Brown to the newly created position of business development, Kitchen & Bath Division. Brown will be responsible for helping progressive dealers grow their kitchen & bath categories. (705-795-2611)

 

CANADIAN MARKET INDICATORS
Retail sales bounced back 1.1% in June to $30.8 billion after falling 1.2% in May, reports Stats Canada. While half of the eight retail sectors enjoyed sizable sales gains, about two-thirds of June’s increase came from stronger auto sales. Excluding auto sector sales, retail sales advanced by 0.4% in June, following a 0.3% decline the previous month.
U.S. MARKET INDICATORS
Housing starts in July were 2.04 million, down 0.1% from June but up 2.8% from July 2004, says the Commerce Department. Permits reached 2.17 million, up 1.6% from June and up 2.5% from July 2004. The single-family home sales recorded the largest gains of 0.5% to a 1.71 million units, helping to partially offset a 3.2% decline in multi-family housing starts, which held at a pace of 331,000 units. Retail sales in July were $357 billion, reports the Commerce Department, up 1.8% from June and up 10.3% from one year ago. Excluding automobiles, retail sales were $271.4 billion, up 0.3% from June and up 8.1% from July 2004.Construction spending in June was $1,093 billion, down 0.3% from May but up 7.9% from June 2004. The latest report from the Commerce Department indicates total non-residential construction spending was $483.9 billion, down 0.1% from last month but up 6.5% from one year ago.
WAL-MART EXPERT WILL IDENTIFY PROFIT IDEAS AT CONFERENCE
In today’s saturated and intensely competitive retail landscape, it is harder than ever to grow by rolling out more stores and SKUs. The search for profitable growth opportunities starts with a commitment to one “big idea” – the key factor that clearly differentiates a retailer from the competition and creates a compelling consumer value proposition. Learn from the retailers that have achieved long-term significant revenue and profit growth despite a challenging environment from Al Meyers, Senior Vice-President with Retail Forward. During his career, Mr. Meyers has assisted retailers in the development of strategies and implementation plans for improving market positioning, customer focus, competitive appeals and merchandising economics. He’s also an expert in Wal-Mart. If you thought Wal-Mart was an impetus for change during the past five years, watch out for the next five! Join Mr. Meyers at our incredible 10th anniversary celebration at our Hardlines Conference and Awards Gala, Sept. 12-13, 2005. For more information, <click here>.

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

 

PPG Canada Inc., a global leader in the production and technology of coatings and related products, has an immediate opening for a

MARKETING CO-ORDINATOR

This is an exciting opportunity for an energetic individual with a strong work ethic to become a part of our Architectural Coatings Group. You will be responsible for managing a variety of projects in a fast paced, deadline driven, project based environment. You will interpret, adapt and communicate corporate marketing initiatives to ensure optimal benefit to the Canadian dealer and sales operation as well as identify market trends and develop implementation programs and strategies to ensure market penetration and increased profits for the Canadian Architectural Coatings product offerings.

You will possess a Business degree, preferably majoring in Marketing with 2 – 4 years of related experience with familiarity in the paint, design or home improvement industry. We are looking for a goal-oriented candidate who possesses excellent written and verbal communication skills, is extremely organized with a positive mental attitude and possesses outstanding organizational and time management and computer software application skills. Fluency in the French language would be desirable but not mandatory.

All interested qualified candidates, should E-Mail their resume to aainsworth@ppg.com or fax their resume to (905) 855-6642
(08.29_09.12)   

**********************************************************************************  

DEVELOPMENT MANAGER – MANITOBA & SASKATECHEWAN

The Company

RONA is the leading distributor and retailer of hardware, home improvement, and gardening products in Canada.

The Objective

Reporting to the Director, Traditional Banners/Development – Western Canada, the successful incumbent will be an energetic professional with expertise in development and operations and /or have a thorough understanding of the home improvement industry. The key responsibility will be to oversee implementation of the organization’s strategic development plans for each existing banner while recruiting and building relationships with new dealers.

Responsibilities

• Implementation of RONA’s strategic development plan for each existing banner
• Be responsible for the recruitment and integration of new dealers within your assigned region
– Analyses the territory
– Evaluates potential dealers
– Presents the organization to prospective dealers
– Qualifies dealers according to membership criteria
– Ensures mentoring of new dealers for a period of 6 months after they join RONA
• Other duties and responsibilities as assigned by the Director, Traditional Banners/Development – Western Canada
Qualifications

• A minimum of 5 – 10 years of experience in the hardware, building material and/or home improvement industry
• Experience in recruiting new members
• Excellent ability to build relationships with dealers
• Ability to interpret financial statements and present budgets
• Flexibility to changing priorities with short notice to meet business needs
• Exceptional communicator with strong planning and organizational skills
• You must be comfortable with travel as there will be some overnights
• Motivated, self-starter able to work independently and as part of a team.
• Computer literate with strong understanding of Microsoft Office software
• Valid drivers license and safe driving record
• Autonomous
• College diploma an asset

To apply for this position please send your resume to john.penner@rona.ca. Thank you for your interest; however, only candidates selected for an interview will be contacted.
(08.02_09.05)

**********************************************************************************
NATIONAL SALES MANAGER

Kempston is a leading Canadian supplier of Router Bits and Saw Blades.

Responsibilities:
• Represent Kempston in sales presentations to a large customer base in North America, travel required.
• Establish US sales networks. Work with existing sales agents in Canada to manage and direct their sales activities.
• Budget sales by customer and SKU annually and complete weekly customer activity/ progress reports.
Organize and attend trade shows.

Qualifications:
• Minimum 2 years experience in tool/hardware.
• US experience is necessary.
• Demonstrated ability and drive to grow sales in the Power Tool Accessory market.
• Excellent communication (written and oral) and presentation skills.
• Computer-literate; Excel, Word, Outlook and PowerPoint.
Email resumes to sales@kempston.ca.
(07.25_08.29)


**********************************************************************************

SERVICES OFFERED

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

MARKETPLACE

 


(08.01.05_08.31.06)

**********************************************************************************

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

Aug. 1, 2005

 


John Caulfield, Contributing Editor
vol. xi, #31, August 02, 2005

IN THIS ISSUE:
• Home Depot, TruServ, Canadian Tire join executive conference
• Saint Gobain ups bid for BPB
• Stock makes acquisitions
• Profits up for top chains
* * * * * *

“Discovery consists of seeing what everybody has seen and thinking what nobody has thought.” Albert Szent-Gyorgyi (American scientist)
RETAILERS COME FACE-TO-FACE
AT UPCOMING HARDLINES CONFERENCE
SPECIAL REPORT North America’s top retail executives will meet and present at the 10th Annual Hardlines Conference Series and Awards Gala this fall. The two-day summit for the home improvement industry’s leading retail executives, innovative independents and industry suppliers will be held September 12-13, 2005 at the Hilton Suites Hotel in Markham, Ont. There, you’ll get first-hand insight into the latest education, retail trends and intelligence that will guide this industry – right from the experts.Here are some of the highlights of the incredible two-day event:

“A view from the top: where do we go from here?”
As the number-two guy at the number-one home improvement retailer, John Costello, Executive Vice-President of Merchandising and Marketing for Home Depot, joins us from Home Depot’s headquarters in Atlanta to make a rare public appearance in Canada.

A well-known and highly respected marketing and retail executive, Mr. Costello has more than 25 years of experience in consumer goods, retailing and technology. He is currently responsible for Home Depot’s merchandising, marketing, branding, advertising, visual merchandising, public affairs, e-business and global sourcing. He was named one of the 50 Most Influential People in Marketing by Advertising Age and was elected to the Retail Marketing Hall of Fame in 1997. Not to be missed!

“Foresight is 20/20: Canadian Tire’s vision for the future of retail”
Mark Foote is President of Canadian Tire Retail. Find out how Canada’s largest hardlines retailer continues to re-invent itself – and redefine the scope of hard goods retailing.

Mr. Foote’s responsible for marketing, merchandising, advertising and supply chain management for Canadian Tire Retail and the company’s consumer e-commerce business. Canadian Tire is one of Canada’s Top Four home improvement retailers, making it a huge customer for some – and a major competitor for others. Mr. Foote will talk about the most daring – and most successful evolution of Canadian Tire to date. Learn about Canadian Tire’s newest strategies to maintain and grow its dominance!

“Re-inventing the role of the independent”
Wal-Mart, Home Depot, and now Lowe’s! The threat faced by the independent in Canada is a serious one, yet independents are finding their place in the retail scene, and thriving. If you want to hear a truly amazing retail mind at work, don’t miss Bill Morrison, President and CEO of TruServ Canada as he offers his insightful observations on the realities facing home improvement retailing today. With a background that includes Foot Locker and Home Outfitters, Mr. Morrison is well suited to offer a better understanding of the demands of today’s consumer – and how best to meet those demands to build your business.

“Lessons learned: a home improvement expatriate’s perspective”
Stephen Bebis, President and CEO of Golf Town, is the man who brought the home improvement big box to Canada. In 1991, he came to Canada to start Aikenheads Home Improvement Warehouse. When Home Depot purchased 75% of Aikenheads in 1994, he stayed on for two years as President and Chairman of the Partnership Board. In 1998, he joined Golf Town.

CERTAINTEED PARENT BIDS FOR GYPSUM PRODUCER
PARIS — Saint-Gobain, the biggest distributor of building materials in Europe, was expected to make a higher bid today for its rival, U.K.-based BPB plc, the world’s largest plasterboard maker, after BPB last week rejected Saint-Gobain’s cash offer, valued at the equivalent of US$5.9 billion.BPB, based in Great Britain, produces an estimated one-fifth of the world’s demand for gypsum wallboard. It reported a 29% increase in profits for the year ended March 31. BPB is said to be planning new factories to meet worldwide demand in Spain, eastern Europe, Asia and South Africa.

The question, however, is how much Saint-Gobain is willing to ante up for the company. Investors speculate that its bid could increase by anywhere from 3% to 11% of its original offer.

BUILDERS FIRSTSOURCE ISSUES FIRST QUARTERLY STATEMENT
DALLAS — Strong homebuilding activity propelled the growth in quarterly sales and profit at Builders FirstSource, the fifth-largest pro dealer in the United States, with 62 yards and 50 manufacturing facilities in 11 states. Builders FirstSource stated this week that its net income for the three months ended June 30 soared by 58.5% to US$20.2 million, on revenue of US$618.6 million that was up 12.9% over the same period a year ago. During that quarter, the company increased its gross margin to 25.1% of sales, from 21.9%. Builders FirstSource made its quarterly results public for the first time, having completed an initial public offering of 12,250,000 shares of common stock on June 22. The money it raised from that IPO helped reduce its debt to $365 million as of June 30, from $510.2 million on the same date in 2004. However, the company also stated that it had $36.4 million in stock compensation expenses through the first six months of its fiscal year, compared to only $437,000 for the same period a year ago. As a result, Builders FirstSource’s net income for the first six months of the fiscal year was only $1.3 million, compared to $16.6 million for those six months of 2004. Its first-half sales, though, rose 15.9% to $1.128 billion.

Floyd Sherman, Builders FirstSource’s president and CEO, projected continued growth through the remainder of this year, driven primarily by “market share gains and strong customer demand for our prefabricated components product offering. Our operating strategy will continue to focus on increasing market share and improving our operating leverage as well as continued expansion of our manufacturing capacity to meet customer demand.”

COMING HARDLINES EVENTS:
Early Bird Special for the Hardlines Conference Series, Sept. 12-13 extended Tuesday ONLY; includes
Outstanding Retailer Awards at the Hardlines Gala Dinner Sept. 12
COMPANIES IN THE NEWS
MONTREAL < — Forest products company Tembec saw sales for the third quarter drop to $.96 billion, from $1.03 billion in the comparable period last year. Net loss increased to $142.5 million, from $12.6 million in the third quarter of 2004. EBITDA was $27.5 million, compared with EBITDA of $91.2 million a year ago. 

RALEIGH, N.C. — Stock Building Supply, the largest pro dealer in the U.S., has expanded its market reach in the South by acquiring dealers in Florida and New Mexico. The company bought J.C. Baldridge Lumber, a 124-year-old institution in Albuquerque, N.M., that employs 75, generates more than $33 million in annual revenue. Stock has also acquired Adams Building Materials, a Winter Haven, Fla.-based dealer with seven locations that generated in excess of $118 million in revenue in 2004, virtually all of it from professional customers. The 44-year-old company employs 443 people.

SAN FRANCISCO — Building Material Holding Corp, a leading pro dealer and service provider, reported a 225% increase in net income, to US$54.6 million, for the six months ended June 30. The company’s sales during this period rose 32.7% to $1.27 billion. BMC Construction is in the due diligence phase of acquiring three more businesses: San Diego-based HnR Framing Systems; Campbell Cos., a contractor that provides installation for builders in Las Vegas and southern California, and Home Building Components, another framer.

BRENTWOOD, Tenn. Tractor Supply Co. has signed a letter of intent to purchase Del’s Farm Supply Inc., a privately owned chain with 17 stores based in Lakewood, Wash. The stores, which operate mainly in the Pacific Northwest, specialize in rural lifestyle products, including the equine, animal and pet category. Del’s had sales in 2004 of approximately $34 million. The deal is expected to close in the third quarter. Tractor Supply expects to continue operating the stores under the Del’s Farm Supply name.

NEW BRITAIN, Conn. — Profits for Stanley Works rose by 7% in the second quarter to US$65.9 million, compared with US$61.4 million in the same period a year earlier. Earnings from continuing operations totaled $66 million, up from $58.8 million a year earlier. Stanley’s sales rose 9% to US$824 million.

SANTIAGO, Chile Department store company Falabella, the parent of giant Chilean home improvement chain Sodimac, has made a deal with Grupo Corona to open stores and offer credit services in Colombia, part of its expansion throughout South America. Grupo Corona is a private, family-owned group specializing in manufacturing ceramics for house-building. Falabella will also increase its stake in Sodimac Colombia to 49% from 35%, based on the purchase of additional stock worth about $20 million.

 

HARDLINES CONFERENCE UPDATE
I’m please to announce that Ian Hardgrove, President and General Manager, 3M Canada, will offer a “Vendor’s perspective: Working with retailers to create brand dominance” at our Conference, Sept. 12-13. Mr. Hardgrove will explain why strong brands are important for vendors, retailers and customers. He believes that strong brands create a more competitive market that benefits everyone.—Michael
NOTED…
Hardlines will not be published for the next 3 weeks, Aug. 8, 15, or 22nd. We’ll be busy at the World Headquarters, however, getting ready for the Hardlines Conference and Awards Gala, which takes place Sept. 12-13. Since we’re publishing this special issue of Hardlines, Bev says we’ll extend the Early Bird Special until Aug. 2nd – sign up now because she won’t let me do this again! Click here or contact Isabel Bisong, isabel@hardlines.ca
— Michael

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

DEVELOPMENT MANAGER – MANITOBA & SASKATECHEWAN

The Company

RONA is the leading distributor and retailer of hardware, home improvement, and gardening products in Canada.

The Objective

Reporting to the Director, Traditional Banners/Development – Western Canada, the successful incumbent will be an energetic professional with expertise in development and operations and /or have a thorough understanding of the home improvement industry. The key responsibility will be to oversee implementation of the organization’s strategic development plans for each existing banner while recruiting and building relationships with new dealers.

Responsibilities

• Implementation of RONA’s strategic development plan for each existing banner
• Be responsible for the recruitment and integration of new dealers within your assigned region
– Analyses the territory
– Evaluates potential dealers
– Presents the organization to prospective dealers
– Qualifies dealers according to membership criteria
– Ensures mentoring of new dealers for a period of 6 months after they join RONA
• Other duties and responsibilities as assigned by the Director, Traditional Banners/Development – Western Canada
Qualifications

• A minimum of 5 – 10 years of experience in the hardware, building material and/or home improvement industry
• Experience in recruiting new members
• Excellent ability to build relationships with dealers
• Ability to interpret financial statements and present budgets
• Flexibility to changing priorities with short notice to meet business needs
• Exceptional communicator with strong planning and organizational skills
• You must be comfortable with travel as there will be some overnights
• Motivated, self-starter able to work independently and as part of a team.
• Computer literate with strong understanding of Microsoft Office software
• Valid drivers license and safe driving record
• Autonomous
• College diploma an asset

To apply for this position please send your resume to john.penner@rona.ca. Thank you for your interest; however, only candidates selected for an interview will be contacted.
(08.02_09.05)
  

********************************************************************************** 
NATIONAL SALES MANAGER

Kempston is a leading Canadian supplier of Router Bits and Saw Blades.

Responsibilities:
• Represent Kempston in sales presentations to a large customer base in North America, travel required.
• Establish US sales networks. Work with existing sales agents in Canada to manage and direct their sales activities.
• Budget sales by customer and SKU annually and complete weekly customer activity/ progress reports.
Organize and attend trade shows.

Qualifications:
• Minimum 2 years experience in tool/hardware.
• US experience is necessary.
• Demonstrated ability and drive to grow sales in the Power Tool Accessory market.
• Excellent communication (written and oral) and presentation skills.
• Computer-literate; Excel, Word, Outlook and PowerPoint.
Email resumes to sales@kempston.ca.
(07.25_08.29)

**********************************************************************************
PRODUCT MANAGER

McKenzie Seeds, Canada’s leading supplier of packaged seeds and related gardening products, is seeking a Product Manger to join our dynamic team in our head office, located in Brandon, Manitoba.

The Product Manager will provide valuable oversight and expertise to ensure positive business results for specific product areas. This position will analyze market information and recommend initiatives to senior management for approval. Specific responsibilities include management of the development of new products that compliment our existing products, managing existing products for maximum profit and efficiency, analyzing market/product trends, costing, pricing, developing marketing material and display formats, maintain inventory control and participate in team decisions.

The successful candidate will have marketing experience in a retail environment with knowledge of margins/shelf impact/creative design. The successful candidate will also have a Bachelor’s Degree in Business Administration or related discipline, or equivalent experience. Demonstrated experience with analysis of market/products is required as is strong communication and interpersonal skills. Excellent project management skills and the ability to work with tight turnaround times; the ability to make effective decisions with multiple priorities and strong negotiation skills are critical to this position. Strong computer-based skills with an understanding of current technological tools including Microsoft office are required. The successful candidate must have the ability to travel to serve local and national clients at their sites

Experience with industry software is considered an asset, as is interest in horticulture.

McKenzie Seeds offers a competitive salary and exceptional benefits package. If you are interested in contributing to the continued growth of a progressive national company, please forward your resume, including 3 references, in confidence to:

Kathy Johnson, searchbrandon@mnp.ca by Friday, August 5, 2005
(07.18_08.02)

**********************************************************************************


SALES OPPORTUNITIES

Exchange-A-Blade Ltd., is a leading Canadian distributor and manufacturer of power tools accessories with sales agents and independent distributors throughout North America.

Exchange-A-Blade is looking for candidates in Ontario who have several years of sales experience in the hardware or building materials industry, who are customer relationship focused and who are well organized.

Opportunities include a salary and commission based sales representative package or business investment opportunities for individuals interested in investing in their own distributorship.

For further information, please see our web site at www.exchangeablade.com. Interested candidates should send a resume and covering letter to Andy Moncrieff, Regional Sales Manager, by fax to 519-679-4917 or by email to amoncrieff@exchangeablade.com
(07.11_07.25)

**********************************************************************************
SALES AGENT: MARITIMES AND NEWFOUNDLAND

Kempston Canada Limited, a leading Canadian supplier of Router Bits and Saw Blades is looking for an established sales agency to expand our market share in the Maritime Provinces including Newfoundland.
Only agents with successful experience and contacts in the Power Tool and Accessories markets need apply.
If your company has the above experience and the ability to pioneer a high quality, competitively priced product please e-mail resumes to: sales@kempston.ca

(07.11_07.25)
**********************************************************************************

SERVICES OFFERED

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

MARKETPLACE

 


(08.01.05_08.31.06)

**********************************************************************************

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

Jul. 25, 2005

 


John Caulfield, Contributing Editor
vol. xi, #30, July 25, 2005

IN THIS ISSUE:
• RONA: another good reason for Olympic sponsorship
• Home Hardware: another store design package gains ground
• Home Depot: another acquisition
• U.S. housing market: another bubble waiting to burst?
• Lowe’s: another DC expansion
• Power tools: another healthy year of growth
* * * * * *

“Ideas shape the course of history.” John Maynard KeynesMignon McLaughlin (U.S. writer and humorist)
HOME HARDWARE’S NEW-CONCEPT STORE IS BIGGEST EVER
PETERBOROUGH, Ont. A new look for Home Hardware dealers is materializing at a new store in this town in Central Ontario. The concept, called “Build a Better Home Store,” was designed for Home by Watt International. It’s getting a full promotional push, complete with a “hard hat tour” today, that provides a sneak preview of the innovations the new look will bring when the store opens its doors on Aug. 4, 2005.Terry Jenkins, himself a former area rep for Home Hardware, has partnered with co-owners Steve Hynane, Harry Morrison, Jim Adams and Bill Gillam in this ground-up store that will bear the name Chemong Home Hardware Building Centre. Only the second store so far to adopt the new look (Magnetic Hill Home Hardware Building Centre in Moncton, N.B. was the first store in Canada to feature the new Build A Better Home Store concept), Chemong Home Hardware Building Centre features a 25,000-sq.ft. retail store and 25,000-sq.ft. LBM warehouse, complete with paved lumberyard, making it the largest real estate project Home Hardware has ever undertaken.

The store, which is designed to cater to both contractors and DIYers, will feature Home’s enhanced kitchenwares department, Home Expressions, which includes products from home décor, housewares, kitchen and bath, lighting and storage solutions categories, all designed to enhance the home.

The new store will also feature a full-sized house built and displayed inside the store. Customers can walk through this “ideas house” to check out product demos and learn about different construction methods and techniques. The ideas house will feature door and window displays, siding and roofing materials, and will showcase five different kitchen displays. And taking a page from the big box book, there’s even a Coffee Time coffee shop right inside the store.

The comprehensive store package, the first for Home Hardware since 1996, was developed as more than just a décor package. The outside of the store has been brightened up, as greys are replaced by blacks and reds, and the entrance more clearly marked by bold signage overhead. Inside, the store will be warmed up with softer colours, such as sandstone coloured tiles on the floor, and cleaner colours on the walls, to replace the existing reds and whites. Other amenities include department signs, banner kits that hang from the ceiling, and even curved edges on much of the fixturing, all aimed at appealing more strongly to the female shopper.

OLYMPIC SPONSORSHIP TIES RONA FAMILY TOGETHER
BOUCHERVILLE, Que. RONA inc. has invested big in its sponsorship of everything from reality shows to Canadian sports. It’s part of the company’s effort to affirm its brand as a leading Canadian-owned retailer. As “official home improvement retailer” for the Canadian Football League, RONA has secured a two-year multi-million dollar deal that includes all nine clubs during the pre-season and regular season. The most visible exposure for Rona will be on the team uniforms. All CFL players from the nine member clubs will wear a Rona jersey patch during every CFL game in the pre-season and regular season.

But the jewel in RONA’s promotional crown is its involvement in the 2010 Olympic and Paralympic Winter Games. The eight-year partnership comprises sponsorship rights for the Canadian Olympic Team for the Torino in 2006, Beijing in 2008, Vancouver in 2010 and 2012 Olympic Games, recently announced for London, England.

“Number one, we are a sports-minded company,” says Michael Brossard, senior vice-president, marketing and development for RONA. That proclivity has its upside, he adds. “When you’re in a stadium, you’re surrounded by DIYers.”

But the privilege didn’t come cheap. Rona bid aggressively to get the sponsorship from Home Depot, in a deal valued at $68 million. However, Brossard says it was worth it, not only for the exposure it gives RONA, reinforcing its position as an all-Canadian company, but for the message it sends to RONA’s own dealers and staff across the country. After growing aggressively, largely through acquisition, over the past five years, RONA represents a disparate workforce that includes Cashway, Lansing Buildall and Revy. Brossard sees the Olympic sponsorship as a unifying force – something every member of the RONA team can be proud of.

“This is really going to be the glue that links our company together,” he notes.

HOME DEPOT TO BUY WATER-TRANSMISSION
PRODUCTS DISTRIBUTOR
ATLANTA — Home Depot added to its supply network for commercial accounts this week by agreeing to acquire National Waterworks, the largest distributor in the United States of products used to build, repair and maintain water and wastewater transmission systems. The deal firmly secures Home Depot’s position in an $11 billion market, of which National Waterworks controls 14%. The products it distributes include pipes, fittings, valves, meters, fire hydrants, as well as service and repair components.In a prepared statement, Depot said that Waco, Tex.-based National Waterworks has more than 130 branches in 36 states, which sell directly to municipalities and contractors. For the fiscal year ended December 31, 2004, the company had net sales of $1.5 billion. National is principally owned by JPMorgan Partners and Thomas H. Lee Partners L.P., which bought the company three years ago. Terms of the acquisition were not disclosed.

Home Depot will operate National Waterworks through its Home Depot Supply division, to which it recently added through acquisitions on both sides of the border. In the U.S. it bought Utility Supply of America – USABlueBook – is a national catalogue distributor of maintenance, repair and operations supplies to the water and wastewater treatment industry. In addition, just two weeks ago, it announced the purchase of Brafasco, an industrial supplier of fasteners to the manufacturing and construction markets, which has 21 branches in Southern Ontario and three in the United States.

IS HOUSING ‘BUBBLE’ ABOUT TO BURST IN AMERICA?
SPECIAL REPORT Last week, the U.S. Commerce Department announced that single-family home starts fell by 2.5% in June, to an annualized rate of 1.667 million units. Some shrugged this off as a temporary interval while builders sold off of their backlogs, which rose to a 26-year high in June. But the dip provided more evidence for those industry watchers who say the housing boom, which has lasted for more than a decade, is finally subsiding.The National Association of Realtors estimates that home sales will increase 2.8% to 6.97 million units in 2005. But this sector continues to send out confusing, even contradictory signals. Newsday reported last week that, while the median price of a home on Long Island, N.Y., rose by 13% to $429,000 in June, the number of unsold homes on the island increased 22% to 19,120 units.

Nationwide, prices rose, on average, 12.5% during the year ended March 2005, according to an index calculated by the Office of Federal Housing Enterprise Oversight. The Federal Deposit Insurance Corp. found that, over the past three years, 55 markets had inflation-adjusted price appreciation of 30% or more. And prices are still rising in many markets, especially in California, where fewer than one in nine households could afford a median priced home – the price tag of which exceeded $522,000 in June. NAR said recently that home prices would probably rise 9.4% this year, the fastest pace in a quarter century. The group said it expects the median price of an existing home to rise to $202,600 this year from $185,200 in 2004.

Most economists and analysts see a “bubblish” market, in which prices are especially volatile where development is constrained by zoning or environmental laws. Prices in some markets are being pumped up artificially by speculators “flipping” homes for profit within a few months of their purchase. But Mark Vitner, senior economist for Wachovia’s Economics Group, explains that the housing boom is almost always a function of larger market fundamentals. He notes that over the past two decades, the U.S. population increased by 57 million people, three-quarters of whom reside in the 15 states under the greatest price appreciation pressure. Vitner also notes that “there’s absolutely no supply out there,” and estimates that of the 440,000 homes on the market nationwide in April 2005, 22.7% hadn’t been completed and 20% hadn’t been started.

Builders say they are already see a leveling off of price appreciation in overheated markets like San Diego, where home prices in May rose by 7.5%, the first time in six years that market’s prices increased by only single digits. Other industry watchers also think some markets — like Miami, where an estimated 18,565 condominiums will be added this year alone — have finally gotten too far ahead of reasonable demand expectations.

Of greater concern has been FDIC’s finding that, in 38 of 50 states, income growth hasn’t kept pace with home price escalation. Consequently, buyers are turning in greater numbers to mortgage instruments that require little or no down payments and are far more flexible in their equity terms and payout schedules. Adjustable-rate mortgages accounted for 46% of new mortgages and 37% of applications last year, vs. 29% and 19%, respectively, in 2003.

POWER TOOL DEMAND TO RISE STEADILY
CLEVELAND — The worldwide demand for power tools is projected to increase annually by 5% through 2009, according to estimates by The Freedonia Group, a market research firm based here. That growth would bring worldwide shipments to $29 billion, and the growth rate would represent a considerable improvement over the 1999-2004 period.Freedonia views China as providing the greatest potential for tool makers. The Chinese market quadrupled its purchases of power tools between 1994 and 2004, during which it surpassed the shipments sent to Germany or Japan. Freedonia estimates that tool shipments to China will surpass those sent to the United States by 2010.

Cordless electric tool shipments are expected to grow, on average, by 8.7% annually through 2009, and gains in consumer demand should slightly outpace those of professional users.

STANLEY OFFERS TO ACQUIRE FRANCE’S FACOM TOOLS
NEW BRITAIN, Conn. — Stanley Works has made a cash offer to purchase Paris, France-based Facom Tools, a leading supplier of industrial hand tools in Europe, from its parent Fimalac for 410 million euros (US$494 million). Fimalac, in turn, has granted Stanley exclusivity to complete this deal through April 30, 2006. Fimalac’s board agreed that this deal would allow it to concentrate its efforts on the development of its ratings business, the American-based firm Fitch Ratings, and on the measurement of corporate risk, Algorithmics, while securing Facom’s long-term position. Under the terms of the proposed transaction, Thierry Paternot, Facom’s director general, would stay to lead the new combined European Stanley business, with support from Mark Osmolski, currently Stanley Europe’s COO, and two senior management teams that will provide leadership and expertise across Europe.

COMING HARDLINES EVENTS:
See the countdown in Noted below for the Conference Early Bird Special and Hardlines vacation dates.
Hardlines Conference Series, Sept. 12-13;
Outstanding Retailer Awards at the Hardlines Gala Dinner Sept. 12
COMPANIES IN THE NEWS
TORONTO In its second quarter, Sears Canada Inc. had total revenues of $1.52 billion, up 2.3% from $1.49 billion for the same period in 2004. Revenues for 2005 include those of the buying group Cantrex Group Inc., since its acquisition by Sears Canada in late April, 2005. Net earnings for the quarter, including non-comparable items, were $10.9 million, up from $4.6 million in the same period last year. Total revenues for the 26-week period ended July 2, 2005 were $2.84 billion, compared with $2.82 billion for the same period last year, an increase of 0.9%.MOORESVILLE, N.C. Lowe’s Cos. has announced it will expand its distribution center in Statesville, N.C., adding another 50 jobs to the 800-strong workforce there. The expansion will add 324,000 sq.ft. to the 1.15 million-sq.ft. facility, and it’s expected to be completed by spring 2006. One of 11 regional DCs, it supplies products to 140 Lowe’s stores in the Carolinas, Tennessee, Virginia, Alabama, Mississippi, Missouri and Virginia.

LONDON Troubled DIY chain B&Q, the subject of bid rumours, is looking at scores of job cuts across its 28,000 workforce. New CEO Ian Cheshire, who has been in the post for only seven weeks, is conducting a thorough review of the business. The slow housing market in the U.K. has adversely affected the retailer, forcing it to stall expansion of its big box stores. In addition, parent company Kingfisher has become the subject of further takeover rumours, this time by Wolseley, an U.K. -based company which owns industrial distributors worldwide, as well as Stock Building Supply in the U.S.

ST. PAUL, Minn. & MERIDEN, Conn. 3M Co. has received regulatory approvals to proceed with the acquisition of CUNO Inc. The cash transaction is valued at $72 dollars per share. CUNO is a maker of filtration products for the separation, clarification, and purification of fluids and gasses. Its proprietary products include uses in the healthcare, industrial, and drinking water markets. CUNO operates manufacturing facilities in the United States, Brazil, Mexico, France, Japan, Australia and China, and has sales offices throughout the world.

LAS VEGAS For the first time next year, the National Hardware Show will be at one location within the Las Vegas Convention Center. There, the show will fill three halls with nearly two million sq.ft. of total space. Early space registration is already underway for 2006, and more than 358,200 sq.ft. of exhibit space has been booked. For 2006, each of the three halls will be dedicated to specific product categories, providing expanded registration space, more meeting areas and more room on the show floors. The line-up for each hall is: South Hall – Lawn & Garden World; Central Hall – hardware, tools, paint, décor, and the Global Hardware Expo; North Hall – plumbing, electrical, HVAC, housewares and the Las Vegas Gourmet Housewares Show. The show will be held May 9-12, 2006.

MONTREAL METRO Inc., a leading Quebec supermarket chain, has reached a definitive agreement with The Great Atlantic & Pacific Tea Co. Inc. and its subsidiary, A&P Luxembourg S.à.r.l., to acquire all common shares of A&P Canada. The deal is worth $1.7 billion, consisting of $1.2 billion in cash and $500 million in the form of treasury class A subordinate shares of METRO. A&P Canada operates 236 food stores throughout Ontario under the A&P, Dominion, Food Basics, The Barn and Ultra Food & Drug banners, with annual sales of $4.4 billion and more than 32,000 employees. Upon completion, METRO will have a network of 579 food stores, including 283 outlets in Ontario with annual sales approaching $11 billion.

BENTONVILLE, Ark. Wal-Mart is setting up its own bank – in Utah. Other retailers, such as Target in the U.S. and Canadian Tire in Canada have already done this, giving them breaks on their ability to provide customer credit cards. In the U.S., these so-called industrial banks, which are only allowed in Utah and a few other states, will allow the company to also process credit-card transactions instead of turning them over to a third party.

BRENTWOOD, Tenn. Tractor Supply Co. saw net sales increase in its second quarter by 16.6% to $613.2 million, up from $525.9 million. Same-store sales increased 5.9% versus last year’s 10.0% gain. Net income for the quarter increased 15.3% to $35.8 million, compared with $31.0 million for the comparable quarter in 2004. Tractor Supply opened 19 new stores and relocated two others during the quarter.

PEOPLE ON THE MOVE
Sherwin-Williams Co. has named retired Ace Hardware president and CEO David Hodnik to its board, expanding the number of directors to 11. Hodnik, 57, also was elected to the board’s audit committee. His appointment boosts the number of Sherwin-Williams’ independent directors to 10. Kmart, now a wholly-owned subsidiary of Sears Holdings Corp., has promoted Peter Whitsett to the role of senior vice-president and Kmart merchandising officer. In his new position, Whitsett oversees all merchandise categories for Kmart stores and reports directly to Aylwin Lewis, president of Sears Holdings and CEO of Kmart and Sears Retail. Whitsett was formerly senior vice-president and general merchandise manager for Kmart’s hardlines, food and consumables, drug store and pharmacy merchandise divisions.
MARKET INDICATORS
Hardware and lawn and garden products were among the categories that saw a drop in May, as sales by major department stores fell 0.3%, reports Statistics Canada. May’s drop was the first decline in sales at large retailers this year. The sharpest decline was in the sales of clothing, footwear and accessories, which were off 2.4%. Wholesale sales rose for the fourth consecutive month in May, edging up 0.2%, says Stats Canada. Most of the growth was attributable to increased demand for “other products,” but the increase was partly dampened by lower wholesale sales of building materials, which were down by 3.0%. In constant dollars, wholesale sales rose 0.2% in May.
U.S. MARKET INDICATORS
Housing starts in June reached 2.004 million, unchanged from May but up 9.7% from June 2004, says the Commerce Department. Building permits were 2.111 million, up 2.4% from May and up 4.8% from one year ago.
NOTED…
Hardlines will not be published next week, August 2, Aug. 8 or Aug. 22. We’ll be busy at the World Headquarters, however, getting ready for the Hardlines Conference and Awards Gala, which takes place Sept. 12-13. Don’t forget the Early Bird Special expires July 29 – sign up now! Click here or contact Isabel Bisong, isabel@hardlines.ca
— Michael

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

NATIONAL SALES MANAGER

Kempston is a leading Canadian supplier of Router Bits and Saw Blades.

Responsibilities:
• Represent Kempston in sales presentations to a large customer base in North America, travel required.
• Establish US sales networks. Work with existing sales agents in Canada to manage and direct their sales activities.
• Budget sales by customer and SKU annually and complete weekly customer activity/ progress reports.
Organize and attend trade shows.

Qualifications:
• Minimum 2 years experience in tool/hardware.
• US experience is necessary.
• Demonstrated ability and drive to grow sales in the Power Tool Accessory market.
• Excellent communication (written and oral) and presentation skills.
• Computer-literate; Excel, Word, Outlook and PowerPoint.
Email resumes to sales@kempston.ca.
(07.25_08.29)
 

**********************************************************************************  
PRODUCT MANAGER

McKenzie Seeds, Canada’s leading supplier of packaged seeds and related gardening products, is seeking a Product Manger to join our dynamic team in our head office, located in Brandon, Manitoba.

The Product Manager will provide valuable oversight and expertise to ensure positive business results for specific product areas. This position will analyze market information and recommend initiatives to senior management for approval. Specific responsibilities include management of the development of new products that compliment our existing products, managing existing products for maximum profit and efficiency, analyzing market/product trends, costing, pricing, developing marketing material and display formats, maintain inventory control and participate in team decisions.

The successful candidate will have marketing experience in a retail environment with knowledge of margins/shelf impact/creative design. The successful candidate will also have a Bachelor’s Degree in Business Administration or related discipline, or equivalent experience. Demonstrated experience with analysis of market/products is required as is strong communication and interpersonal skills. Excellent project management skills and the ability to work with tight turnaround times; the ability to make effective decisions with multiple priorities and strong negotiation skills are critical to this position. Strong computer-based skills with an understanding of current technological tools including Microsoft office are required. The successful candidate must have the ability to travel to serve local and national clients at their sites

Experience with industry software is considered an asset, as is interest in horticulture.

McKenzie Seeds offers a competitive salary and exceptional benefits package. If you are interested in contributing to the continued growth of a progressive national company, please forward your resume, including 3 references, in confidence to:

Kathy Johnson, searchbrandon@mnp.ca by Friday, August 5, 2005
(07.18_08.02)

**********************************************************************************


SALES OPPORTUNITIES

Exchange-A-Blade Ltd., is a leading Canadian distributor and manufacturer of power tools accessories with sales agents and independent distributors throughout North America.

Exchange-A-Blade is looking for candidates in Ontario who have several years of sales experience in the hardware or building materials industry, who are customer relationship focused and who are well organized.

Opportunities include a salary and commission based sales representative package or business investment opportunities for individuals interested in investing in their own distributorship.

For further information, please see our web site at www.exchangeablade.com. Interested candidates should send a resume and covering letter to Andy Moncrieff, Regional Sales Manager, by fax to 519-679-4917 or by email to amoncrieff@exchangeablade.com
(07.11_07.25)

**********************************************************************************
SALES AGENT: MARITIMES AND NEWFOUNDLAND

Kempston Canada Limited, a leading Canadian supplier of Router Bits and Saw Blades is looking for an established sales agency to expand our market share in the Maritime Provinces including Newfoundland.
Only agents with successful experience and contacts in the Power Tool and Accessories markets need apply.
If your company has the above experience and the ability to pioneer a high quality, competitively priced product please e-mail resumes to: sales@kempston.ca

(07.11_07.25)
**********************************************************************************

SERVICES OFFERED

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

MARKETPLACE

 


(08.01.05_08.31.06)

**********************************************************************************

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

Jul. 18, 2005

 


John Caulfield, Contributing Editor
vol. xi, #29, July 18, 2005

IN THIS ISSUE:
• TruServ Canada supplies general merchandise to grocers
• Rona completes expansion of HQ
• Executive shuffle at Delroc
• Home improvement stays strong in Quebec
• Changes at Cologne Fair lure back power tool makers
• NRHA incorporates Canadian arm
• Universal Forest posts strong results
• Japanese home improvement companies merge
* * * * * *


“We would all like a reputation for generosity and we’d all like to buy it cheap.”
Mignon McLaughlin (U.S. writer and humorist)
TRUSERV CANADA MAKES SUPPLY DEAL WITH GROCERY GROUP
WINNIPEG TruServ Canada has struck a wholesale supply agreement with Triple 4 Advertising Ltd., a Moose Jaw, Sask.-based buying group supplying a group of independent grocery stores in Western Canada. Under the agreement, TruServ Canada will provide Triple 4 affiliated locations with general merchandise products and programs. More than 400 stores in Saskatchewan, Alberta, Manitoba, and Northwestern Ontario, using the “Fine Foods” banner, are members of the Triple 4 group. Stores range from $250,000 to $14.5 million dollars in sales. TruServ is testing a similar program in Big Way Foods, a grocery retailer in Tuelon, Man. In addition, 12 of TruServ’s V&S stores in Alberta are carrying groceries, which has given TruServ a good opportunity to test its general merchandise assortments in a grocery environment.

“We are very excited to leverage our general merchandise offerings to a quality organization such as Triple 4,” says Dave Leonzio, national growth manager for TruServ Canada. “We have the opportunity to service over 400 locations, providing general merchandise and hardware offerings, which fits well with our current infrastructure.” Leonzio adds that 10 Triple 4 locations have already signed on and more are being added each month.

According to Leonzio, TruServ is actively pursuing other retailers outside of the hardware industry, to provide for their general merchandise needs. “We are in the process of working with a number of companies that we expect to announce in the next few months that also have a similar void for general merchandise.”

RONA COMPLETES EXPANSION OF HEAD OFFICE
BOUCHERVILLE, Que. Rona inc. recently completed the expansion of the office space at its headquarters and distribution centre, located here. With the addition of 58,000 sq.ft. on two levels, the total area of the offices and meeting areas has swelled to 138,205 sq.ft. The expansion included adding a new 5,500-sq.ft. employee training centre and increasing the company’s day care facilities from 32 to 50 spots. The building’s total surface area, including the distribution centre, now tops 788,205 sq.ft. Rona’s president and CEO, Robert Dutton, was on hand July 8 during an official opening of the newly expanded facilities.
QUEBECERS REMAIN AVID DIYERS
MONTREAL More than three-quarters of Quebecers are active DIYers, indicating a level of renovation activity that’s increased even since the beginning of this year. This is just one of the findings of a survey by the Quebec association of building materials dealers, ADMACQ. Its latest quarterly Rénovex Index reveals that 76% of Québec households state they are regularly involved in renovation or do-it-yourself projects. This figure, which represents a 3% increase over the previous month and a 6% rise over January, is also having a positive impact on the association’s independent home improvement dealers.“Never have we felt so much interest in home renovation and do-it-yourself projects,” says Donald O’Hara, President and General Manager of ADMACQ. “At ADMACQ, we’ve always maintained that Quebecers practically have it in their genes to handle the hammer. The proliferation and popularity of home renovation and do-it-yourself TV shows and the results of our Rénovex Index, published quarterly now over the past year, show just how accurate our intuition was.”Fixing up the home also includes decorating. According to the June Rénovex Index, more than half (52%) of the Quebec households surveyed indicate that they have done some interior decorating over the past 12 months. Another 49% intend to do so in the near future. One-fifth of respondents indicated they have done some painting this spring.

With the arrival of warm summer weather, Quebecers are getting outside to enjoy the pleasures of outdoor work. In this regard, 68% of the Rénovex Survey respondents indicated that they have invested in the purchase of flowers and/or plants this spring, and a third of them have also purchased gardening tools.

For more information about the Renovex study, contact, Donald O’Hara at ADMACQ: 450-646-5842, info@admacq.qc.ca.

NRHA INCORPORATES ITS CANADIAN OPERATION
TORONTO On the eve of its annual convention, the North American Retail Hardware Association continues to look for opportunities north of the border as it seeks more recruits for membership – and for its educational programs.Formerly the National Hardware Association, the group renamed itself – and expanded its mandate north of the border – following the demise late last year of the 99-year-old Canadian Retail Hardware Association. NRHA had always had an affiliation with its Canadian sister organization, one that included the sharing of several programs, including NRHA’s in-store training modules. In an effort to continue providing these programs – and expand NRHA’s reach – a Canadian representative was hired on. Scott Hoy, a former publisher for the trade magazine, Hardware & Home Centre, is managing director of NRHA, representing the organization to Canadian hardware groups. NRHA’s first member in Canada was Home Hardware Stores Ltd., which represents some 1,000 dealers across the country. It joined early this year, shortly after the demise of the CRHA. More recently, a group of Western Canadian hardware/home improvement dealers, members of Federated Co-operatives, have signed on. But further recruitment negotiations are afoot. “We are in serious chats with three other groups right now,” says Hoy. Although he declines to name them, he says they are “very accepting” of NRHA’s educational programs.

Hoy says that ties in well with NRHA’s mandate. “Membership is our biggest drive and a lot of that is based on education.” In fact, he anticipates that NRHA’s presence in Canada can exceed even the membership levels of the former CRHA, which were estimated at around 1,500 dealers at the time of its demise.

To establish more firmly operations north of the border, the NRHA has just completed incorporation of NRHA Canada. Although it will be governed by the Indianapolis-based association’s U.S. board, John Hammond, managing director of the NRHA, says the move will keep Canadian money up in Canada.

NRHA is currently testing a new online training program. “We’re not trying to re-invent the wheel. We’re just trying to educate the retailers,” regardless of any existing banner affiliation they may have, Hoy says. The program will begin rolling out in earnest in August.

Hammond says the program offers a comprehensive, multi-relational online tool. “It takes everything you need to know about a product and co-locates it with that product,” he says. “You can pull up streaming video and FAQs, tips on add-on sales and merchandising, and even safety tips related to that product or project.

“We have driven a large number of individual memberships down here based on this program,” Hammond continues. “I think it’s going to be a great deal for all independents.” He expects the new program to be “Canadianized” in time, as well, to take into consideration differences such as metric measurement.

NRHA’s annual convention and AGM starts today in Vail, Colo.

RENOVATED COLOGNE FAIR ATTRACTING POWER TOOL FIRMS
COLOGNE, Germany The home of the world’s largest hardware show, the International Hardware Fair/Practical World, has been undergoing a major renovation and expansion, one that is luring back major power tool suppliers that have been absent from the hardware show in recent years.Koelnmesse, the organization that owns both the shows and the fairgrounds they are hosted on, utilizes a vast site that sits alongside the Rhine, directly across the river from downtown Cologne. The original halls, closest to the river, called the Rhine Halls, have been sold to a giant media company, RTL. The remaining structures, called the East Halls, are being renovated. According to Martin Brüggemann, project manager at Koelnmesse for Practical World’s sister shows, gafa and Spoga, the new structure will better accommodate trade fair exhibitors, by reducing the buildings to one level with 11 metre-high ceilings. Without a second floor to hold up, the many columns that formerly hindered sight lines and booth space on the main will be eliminated.

The new layout will be especially effective in accommodating shows that feature larger equipment or require larger exhibits, says Brüggemann.

A furniture show being held in January 2006 will be the first event to be held in the newly renovated halls. The International Hardware Fair/Practical World, March 5-8, 2006, is already more than two-thirds sold, and exhibiting companies include 150-plus power tool suppliers, many of whom are returning to the show following an absence of several years.

Brüggemann admits that the big guys – Bosch and Black & Decker – have yet to sign on. However, he says, as these companies look to expand their presence in the fast-growing Asian market, the international scope of the show will offer strong incentives for supplier involvement.
(For more information on Practical World or Spoga and gafa, contact: Barbara Hills, b.hills@koelnmessenafta.com; 416-598-3343.)

COMING HARDLINES EVENTS:
Hardlines Conference Series, Sept. 12-13;
Outstanding Retailer Awards at the Hardlines Gala Dinner Sept. 12
COMPANIES IN THE NEWS
SAINT JOHN, N.B. – J.D. Irving Ltd. is planning a major redevelopment of the former Saint John Shipyard that will include a new gypsum wallboard plant. The company has submitted two environmental registrations to the Province of New Brunswick for a “green” industrial park. The park will be anchored by a biomass energy plant that will be fueled by wood residues, capable of generating 15 mega-watts of power and more than 200,000 pounds per hour of steam. The fuel will be used to power a proposed gypsum wallboard plant that will employ up to 85 people. In addition, excess “green” steam from the biomass energy plant will be utilized by the Irving Paper plant across the road. The use of green steam will reduce heavy oil consumption by 200,000 barrels a year and reduce greenhouse gas emissions by at least 110,000 tonnes per year.ATLANTA Home Depot is bolstering its partnership with national nonprofit organization KaBOOM!, a national nonprofit group that specializes in building playgrounds in
underprivileged communities, by investing in the creation and refurbishing of 1,000 play spaces in 1,000 days throughout North America. Over the next three years, The Home Depot will invest $25 million and nearly one million volunteer hours in support of this program. Home Depot says the program is expected to benefit 1.5 million parents and children. The program will likely affect up to 20 sites per year in Canada.TORONTO Sears Canada is entertaining offers from potential purchasers of its credit-card business. The deal, which could reportedly net the department store retailer as much as $1 billion, is expected to close by the end of the year.

WOODBRIDGE, Ont. Continuing losses and poor sales as a result of unseasonable weather have further hurt Royal Group Technologies, even as it seeks a buyer for some of its real estate assets. It may also trim manufacturing costs, as it faces another quarter of losses. Its 2Q results will be released Aug. 12.

SHANGHAI Wal-Mart will open its first store here on July 28, adding to the 47 stores it already has in China. However, Shanghai is already well served by French retailer Carrefour, which has eight stores there, and by Germany’s Metro AG.

MONTREAL MAAX Corp. reported net sales for the first quarter ended May 31 of $140.8 million, up 3.4% from $136.1 million for the first quarter of 2005. Operating income for the first quarter decreased by $3.6 million or 31.5% from $11.4 million to $7.8 million. Profits fell from $1.77 million to a loss of $2.34 million.

TOKYO Three of Japan’s leading home improvement retailers have agreed to merge their operations under a single holding company by Sept. 1, 2006. The three dealers — Homac Corp., Kahma Cop., and Daiki Co. — operate 369 stores in 37 of the country’s 47 prefectures. Their combined annual sales for the year ended March 31 were 420 billion yen (the equivalent of US$3.78 billion, using current currency exchanges). That total represents about 10% of Japan’s retail home improvement sales and exceeds the revenue generated by Japan’s leading dealer Cainz Corp.

PEOPLE ON THE MOVE
Terry A. Elliott has announced that he will retire as President of Dryco Building Supplies and Delroc Industries effective March 31, 2006. Elliott joined the Dryco group in 1997, and since then has successfully overseen the growth of the company from a three-branch operation to a nine branch, multi-province organization. He also served as president of Delroc and co-president of the Reliance Buying Group … Jim Ritchie, vice-president, has been appointed executive vice-president of Dryco, effective immediately and will succeed Elliott as president on April 1, 2006. Ritchie will continue as vice-president of Delroc and has been elected to the board of Reliance Buying Group … Darren Joyce, General Manager Sales – Canada, has been appointed vice-president of Dryco, effective immediately. He will report directly to Jim Ritchie.James Farrell, chairman and CEO of Illinois Tool Works Inc., will step down as CEO on Aug. 5 – several months earlier than expected. Originally, he had been scheduled to retire in May 2006, but shareholders were informed last week by post of the new timetable for his departure. However, he will continue his duties as chairman until the May ’06 date, and continue to receive his current level of pay for the rest of the year, including US$1.2 million in salary.
MARKET INDICATORS
Housing starts jumped in June, says CMHC, rising 7.2% from May, as the seasonally adjusted annual rate reached 237,200 units, up from 221,300 units in May. The seasonally adjusted annual rate of urban starts rose 8.3% to 207,200 units in June, due mainly to an increase in multiple starts. Single starts increased 0.1% to 98,400 units, while multiple starts rebounded to 108,800 units in June, up 17.0% compared to May. The New Housing Price Index rose 0.5% in May, reports Statistics Canada, down slightly from April’s increase of 0.6%. On a 12-month basis, the rate of change for this index of contractors’ selling prices was the lowest, at 4.6%, since June 2003.Investment in non-residential building construction hit a record high between April and June, says Stats Canada, due largely to strong conditions in the Western provinces. Total investment for all three sectors (commercial, institutional and industrial) hit an all-time high of $7.6 billion, up 2.6% from the first quarter. The biggest contributor was record spending in British Columbia and Alberta.

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

PRODUCT MANAGER

McKenzie Seeds, Canada’s leading supplier of packaged seeds and related gardening products, is seeking a Product Manger to join our dynamic team in our head office, located in Brandon, Manitoba.

The Product Manager will provide valuable oversight and expertise to ensure positive business results for specific product areas. This position will analyze market information and recommend initiatives to senior management for approval. Specific responsibilities include management of the development of new products that compliment our existing products, managing existing products for maximum profit and efficiency, analyzing market/product trends, costing, pricing, developing marketing material and display formats, maintain inventory control and participate in team decisions.

The successful candidate will have marketing experience in a retail environment with knowledge of margins/shelf impact/creative design. The successful candidate will also have a Bachelor’s Degree in Business Administration or related discipline, or equivalent experience. Demonstrated experience with analysis of market/products is required as is strong communication and interpersonal skills. Excellent project management skills and the ability to work with tight turnaround times; the ability to make effective decisions with multiple priorities and strong negotiation skills are critical to this position. Strong computer-based skills with an understanding of current technological tools including Microsoft office are required. The successful candidate must have the ability to travel to serve local and national clients at their sites

Experience with industry software is considered an asset, as is interest in horticulture.

McKenzie Seeds offers a competitive salary and exceptional benefits package. If you are interested in contributing to the continued growth of a progressive national company, please forward your resume, including 3 references, in confidence to:

Kathy Johnson, searchbrandon@mnp.ca by Friday, August 5, 2005
(07.18_08.02)
 

********************************************************************************** 


SALES OPPORTUNITIES

Exchange-A-Blade Ltd., is a leading Canadian distributor and manufacturer of power tools accessories with sales agents and independent distributors throughout North America.

Exchange-A-Blade is looking for candidates in Ontario who have several years of sales experience in the hardware or building materials industry, who are customer relationship focused and who are well organized.

Opportunities include a salary and commission based sales representative package or business investment opportunities for individuals interested in investing in their own distributorship.

For further information, please see our web site at www.exchangeablade.com. Interested candidates should send a resume and covering letter to Andy Moncrieff, Regional Sales Manager, by fax to 519-679-4917 or by email to amoncrieff@exchangeablade.com
(07.11_07.25)

**********************************************************************************
SALES AGENT: MARITIMES AND NEWFOUNDLAND

Kempston Canada Limited, a leading Canadian supplier of Router Bits and Saw Blades is looking for an established sales agency to expand our market share in the Maritime Provinces including Newfoundland.
Only agents with successful experience and contacts in the Power Tool and Accessories markets need apply.
If your company has the above experience and the ability to pioneer a high quality, competitively priced product please e-mail resumes to: sales@kempston.ca

(07.11_07.25)
**********************************************************************************

SERVICES OFFERED  

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

 MARKETPLACE

 

 

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

Jul. 11, 2005

 


John Caulfield, Contributing Editor
vol. xi, #28, July 11, 2005

IN THIS ISSUE:
• Home Depot buys fastener supplier
• BMR back in business following warehouse fire
• Women spend big bucks at building centres
• Big boxes attract outdoor living shoppers
• Koelnmesse tightens link with China show
• Taiga rethinks conversion strategy
• Pro dealers still tops with builders
* * * * * *


“An honest man’s the noblest work of God.”
— Alexander Pope (1688-1744)
FIRE DESTROYS BMR WAREHOUSE
LONGUEUIL, Que. A fire that broke out last Tuesday has destroyed Groupe BMR’s warehouse here. But the privately owned wholesale buying group is already back up and running from makeshift offices nearby. The blaze, which started at around 5 p.m. on July 5, burned into the early hours of the morning, resulted in two injuries and forced about 100 people from homes surrounding the building. The injuries were minor, notes Dunc Wilson, director of hardware for BMR. Both people are back on the job, having suffered only superficial burns. Members of the BMR board met the following day at a Montreal hotel to map out a strategy for coping with the fire.

The hardware distribution centre and head offices were razed by the fire, while the company’s building materials distribution facility, at the back of the property, and its fleet of trucks, were untouched. That hardware warehouse and offices were a recent addition to BMR’s infrastructure, representing a $3.2 million expansion in early 2003, and a serious investment in BMR’s own hardware wholesaling operations. That investment resulted in the formation of Quincaillerie Matreco Hardware, which ships hardlines to dealers beyond BMR’s own membership of 125 stores.

While the cause of the fire remains unknown, a number of people onsite say that a chlorine tank, which fell off a skid while being moved by a lift truck, may have been the culprit. As of today, however, BMR has relocated its offices to a space near the existing warehouse, and product is being shipped through a combination of methods. Another warehouse, in nearby Boucherville, will provide some backup distribution, while a number of suppliers will operate on a direct ship basis with many of BMR’s customers in the interim.

“We’ve recovered pretty well with our team and our supplier partners,” says Wilson, “so we’ll be back in business [today].”

HOME DEPOT ADDS FASTENER SUPPLIER TO SUPPLY DIVISION
TORONTO Home Depot has signed an agreement to acquire Brafasco, an industrial supplier of fasteners to the manufacturing and construction markets. Based in Brampton, Ont., it has 21 branches in Southern Ontario and three in the United States – in Michigan and Illinois. Brafasco will become part of Home Depot Supply, under Ron Turk, president of Home Depot Supply Canada, and be connected to Home Depot’s U.S. Retail Trade division, a unit of Home Depot Supply.Brafasco joins the growing ranks of acquisitions by Home Depot on both sides of the border that are aimed at bolstering its growing professional customer business. Back in January, Home Depot’s Canadian division purchased Litemor, a commercial lighting supplier based in Montreal. The Brafasco acquisition gives Home Depot Supply an expanded product line – and an estimated $25 million in sales – and will leverage Home Depot’s sourcing capabilities.

Terms were not disclosed and completion of the transaction is subject to customary conditions. The deal is expected to close in a matter of weeks.

WOMEN SPEND BIG AT BUILDING CENTRES
SPECIAL REPORT While big boxes remain the destination of choice for moderately sized purchases, women who shop for home improvement products tend to spend the most at building centres and lumber yards.According to the latest “Women in Home Improvement” an ACNielsen report in Hardlines’ sister publication, Hardlines Quarterly Report, when it comes to small purchases of between $11 and $20, women prefer big boxes and building centres almost equally (16% and 15% respectively). For moderately sized expenditures of $21-$50, 42% of respondents chose a big box to shop at, versus 37% who chose building centres. However, on purchases of $51-$100, the gap narrows again, as 27% of women chose a big box, and 25% chose a building centre. For big-ticket items ($101+), women chose building centres most, with fully 20% shopping there, versus 14% for big boxes and 7% at the neighbourhood hardware store.

Canadian Tire proves it really is the store women prefer to “start with,” rather than end up at for big purchases, as 27% of women polled spent $11-$20 there. However, when it comes to spending more than $100, only 5% of respondents chose Canadian Tire, compared with 14% for big boxes and 20% for building centres.

“Women in Home Improvement” is an exclusive survey of 7,800 women across Canada by ACNielsen. It appears in the latest issue of Hardlines Quarterly Report. For more information, <click here> or contact Isabel Bisong: Isabel@hardlines.ca; 416-489-3396.

TAIGA CONVERSION PLAN WITHDRAWS UNIT OFFERING
BURNABY, B.C. Once the domain of real estate and energy sectors, income trusts are catching on with other sectors, as well. The building materials industry is just the latest to jump on the bandwagon, with the recent successful conversion of CanWel Building Materials Income Fund raising $125 million in an IPO. Taiga Forest Products Ltd., a major competitor to CanWel, has itself been pursuing a corporate structure as an income fund, but market conditions have forced the company to alter its conversion strategy somewhat. The principal elements of the original conversion transaction previously included the exchange of all outstanding Taiga common shares for stapled units of Taiga Building Products (“New” Taiga) and the concurrent treasury offering of stapled units by New Taiga and secondary offering of stapled units by Taiga’s two key shareholders. The company will go ahead with its plan to convert to an income fund-like trust, but based on current market conditions, the board has withdrawn its planned treasury offering of stapled units by the new company, to prevent “an unacceptable dilution to existing shareholders,” according to a prepared release.

The secondary offering, by Taiga’s two major shareholders, has also been put on hold. One of those investors, 3Cs Investments Ltd., has withdrawn completely from the secondary offering. Taiga is continuing discussions with the other investor, Berjaya Group (Cayman) Ltd., regarding its desire to proceed with the secondary offering of stapled units.

Based on Taiga’s financial results for its fiscal year ended March 31, the transaction without a treasury offering would give New Taiga available cash of $36.3 million for distribution. After a holdback of $4.0 million (89% payout ratio), that distributable cash would total approximately $32.3 million and represent approximately $1 per New Taiga stapled unit.

The proposed changes to the transaction are subject to regulatory and court approvals. If the secondary offering of stapled units proceeds, New Taiga intends to file an amendment to its preliminary prospectus dated June 2, 2005 as soon as practicable.

KOELNMESSE INTENSIFIES PARTNERSHIP WITH SHANGHAI SHOW
COLOGNE, Germany Starting in 2006, the China International Hardware Show will be operated by Practical World, the hardware and building materials show owned by international trade fair organization Koelnmesse GmbH. The two trade fairs recently signed a new contract pledging to intensify their cooperation in the future. Practical World Asia is the Asian spinoff of the world’s largest hardware show, International Hardware Fair/Practical World. It has operated in conjunction with CIHS in recent years. But starting in 2006, Koelnmesse will officially have equal rights as the joint owner of the event, which will be re-named “China International Hardware Show powered by Practical World.”

“Combining the decades of experience gathered by the global market leader with CIHS’s outstanding knowledge of the market has made Practical World Asia/CIHS a major player in the world’s most dynamic market and lent it a highly international character,” said Oliver P. Kuhrt, executive vice-president of Koelnmesse. “By strengthening this cooperation, we are laying the foundation for further increases of exhibitors, visitors and exhibition space. That will bring major benefits for our customers in this booming economic region.”

This year, Practical World Asia will be held in Shanghai from October 11-13, in tandem with CIHS for the third time. More than 1,500 companies are expected to exhibit, occupying almost 58,000 square metres of exhibition space – a 20% increase over last year’s show – in five trade fair halls at the Shanghai New International Expo Center. An estimated 38,000 visitors will flock to the two trade fairs over the three-day period. While most will be from China, about 15% will come from abroad, representing around 100 countries.

In addition, the 49th World Hardware Convention, the international conference of the International Federation of Hardware and Housewares Association (IHA), will be taking place in Shanghai prior to PWA / CIHS. The IHA is an international organization for the global hardware industries. It currently has around 31,000 members from 17 countries.

Visitors can register online for both shows free of charge at www.practicalworld-asia.com.

U.S. BUILDERS STILL FAVOR PRO DEALERS AS SOURCES
NATIONAL REPORT — Custom homebuilders in the United States, which specialize in meeting the individual needs of buyers, expect the same treatment from suppliers. Catering to those individual needs, says a national survey, appears to be the best way that dealers catering to builders and contractors can compete.The survey, whose full results will appear in the September issue of ProSales magazine, polled 500 custom builders around America about their buying preferences. The survey found that more than 70% rated pro dealers “good” or “very good” for delivery, and two-thirds gave these dealers the same high rating for product knowledge and “overall service.”However, while pro dealers continue to get the bulk of these builders’ purchases in such commodities as lumber, drywall, housewrap and roofing, it is just as likely for these builders to diversify their sourcing with a wider range of suppliers, particularly for interior products like lighting, carpeting, tile and appliances. Pro dealers with showrooms definitely have a competitive leg up, as more than 70% of the builders polled said they regularly send their clients to suppliers’ showrooms.

There is no doubt that pricing plays a role in any builder’s choice of supplier. But 71% of those polled said that service trumps price every time in their selection.

Surprisingly, 80% of the builders polled said they don’t rely on pro dealers for installation services. But nearly half say they are likely to in the future, a response that no doubt reflects current labor volatility. And many custom builders adamantly resist buying from or sending clients to warehouse home centers. In fact, big boxes were named by at least one-quarter of the builders polled as places where they shop in only five of 36 product categories: tools and fasteners, lighting, locksets, caulks and adhesives, and shelving and storage.

OUTDOOR LIVING ATTRACTS BIG BOX LUXURY SPENDING
STEVENS, PA Big boxes remain the destination of choice for outdoor living expenditures, says a new study from Unity Marketing. With sales of $65.8 billion in 2004, the outdoor living market for goods ($43.2 billion) and services ($22.6 billion) is huge and growing rapidly, says Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses as well as the Classes. The big box retailers are turning their marketing might to capturing a greater share of consumers’ expenditures on the garden and outdoor living. With strategies tied to improved quality and diversity of garden plants, along with better trained sales staff and a wide selection of garden tools and accessories, the big boxes are challenging the independent specialty garden centers that depend upon the loyalty of their traditional shoppers for their livelihood.

While garden centers retained their market share leadership in terms of overall sales of garden goods and services in 2004, (43% market share in outdoor living goods vs. 32% market share among the big boxes), when shoppers are asked where they made outdoor living purchases in the past year, some 80% reported shopping for plants at big boxes, as compared with only 52% who bought plants in garden centers.

The independent garden centers are losing their edge in the outdoor living market as shoppers turn more frequently to home center stores for their outdoor living needs. Garden centers must become more sophisticated and more knowledgeable about their core shoppers in order to maintain their loyalty and support in the coming years, Danziger explains.

The consumer insights study, Outdoor Living Market, 2005: Understanding and Predicting Consumers’ Passion for the Outdoor Living Lifestyle, provides details of a survey among 1,000 home owners with incomes of $25,000 and above. The Outdoor Living Market, 2005 report can be ordered at www.unitymarketingonline.com.

COMING HARDLINES EVENTS:
Hardlines Conference Series, Sept. 12-13;
Outstanding Retailer Awards at the Hardlines Gala Dinner Sept. 12
COMPANIES IN THE NEWS
COLUMBUS Ohio Home Depot has been forced to stop using the term “lowest” to describe its prices, thanks to the National Advertising Division of the Better Business Bureau. According to AdAge, the ruling counters Home Depot’s claims of “Lowest Prices, Guaranteed.” Those prices are achieved, not necessarily by offering the best price off the shelf, but by Home Depot’s policy of matching another retailer’s price and beating it by 10% if the Home Depot price is not, in fact, already lower. The claim, therefore, says the NAD, would discourage price comparison shopping.MOORESVILLE, N.C. Lowe’s plans to build a 1.4-million-sq.ft. $80 million distribution center on 238 acres in Rockford, Ill., that would employ an estimated 500 people. As of last week, the deal was in the final stages of municipal approval.

NEW YORK Building Materials Holding Corporation has managed to increase its credit limits with a group of lenders. The amended credit agreement increases BMHC’s revolving credit facility to $300 million and adds two years to the maturity date. The amended agreement also provides a new term note of $75 million. In addition, the rate of interest on an existing $125 million term note was reduced by 0.25%.

MONTREAL Second quarter sales for Richelieu Hardware jumped by more than 9% to $7.4 million, pushed by increased sales in the U.S. and Canada. Consolidated sales reached $92.6 million, up 13.8% million over the same period last year.

BOCA RATON, Fla. Eljer Plumbingware Inc. has been purchased by a division of Sun Capital Partners, Inc., a private investment firm that specializes in leveraged buyouts and investments. Dallas, Tex.-based Eljer, which makes kitchen, bath, and plumbing products for the residential and commercial markets, was bought from Jacuzzi Brands.

LAKE FOREST, Ill. Even George Forman can’t seem to help Salton Inc., which received a warning from the New York Stock Exchange last week that its shares may be delisted because of low market capitalization. Fearing it may slip into bankruptcy, investors have been wary of the small-appliance maker in recent months. And last month, Salton missed an interest payment, causing further concern about its solvency.

BENTONVILLE, Ark. Wal-Mart will raise its stake in the Japanese affiliate Seiyuto by 50% this year, further boosting its presence in the Japanese market. Japan’s fourth-largest retailer will become a subsidiary as Wal-Mart increases its share of the company, which has lost money for three years running, from its current 42.4%, as it continues to expand in the Asian market.

PEOPLE ON THE MOVE
Lowe’s Cos. has named a 12-year company veteran, William Edwards, to become its senior vice-president store operations for its North-Central Division, The promotion fills a slot left vacant by Nick Carter, whom Lowe’s recently named its executive vp-store operations for the entire chain. Edwards, 45, has 23 years’ experience in retailing. Most recently, he served as Lowe’s regional vp of the company’s Richmond. Va.-based Mid-Atlantic Division. His career with Lowe’s has been primarily on the operations side.Amar Doman, chairman of CanWel Building Materials Ltd., has been nominated as a Pacific region finalist in the Ernst & Young Entrepreneur of The Year 2005 Awards. As a finalist for “best-in-class,” he was chosen for his “business leadership skills, determination and vision.” Now in its 12th year, the program considers nominees in a number of business categories before selecting finalists. Judging will take place October 3 to determine regional finalists for the Awards contest.

At Do it Best Corp., Robert Schmelz has joined as e-commerce manager. He will manage all business-to-consumer online retail e-commerce programs and be responsible for the doitbest.com website. Schmelz will oversee online order fulfillment, site design and development, and online marketing, merchandising and new program development. He will also assist Do it Best Corp. members with the development of their online retail operations. He was most recently with Innotek Inc.

MARKET INDICATORS
Housing starts dropped 5% in May, reports Canada Mortgage and Housing Corp. The seasonally adjusted annual rate of urban starts, which was affected by a decrease in multiple starts, fell to 188,800 units in May. Single starts edged up 0.2% to 96,200 units, building on a gain in April. The rising value of housing in Canada slowed in the second quarter in all major cities across the country, reports real estate company Royal LePage. The average price of a detached bungalow reached $262,845 – an increase of 7.1% over the second quarter of 2004. The value of a standard condominium was up 6.5% to $183,397. The value of a typical two-storey home rose 5.9% year-over-year to $318,290.
U.S. MARKET INDICATORS
Wholesale inventories in May were $350.1 billion, up 0.1% from April and up 10.4% from one year ago, says the Commerce Department. Sales were $295.5 billion, virtually unchanged from April, but up 7.3% from May 2004. Unemployment fell from 5.1% to 5% as employers added 146,000 workers to their payrolls in June, says the Labor Department. However, the gain was less than forecast, due to cuts in factory jobs. The June increase follows a gain in May of 104,000 jobs. The June jobless rate was the lowest since 9/11.
NOTED…
Why should you subscribe to our sister publication, Hardlines Quarterly Report? The answer is simple: to keep up on the latest industry statistics, like the size of the industry, how fast the big boxes are growing, and how the market breaks out by region and by store type. Next issue, we begin releasing our results of our industry wide survey of home improvement retailers in Canada. PLUS: the Amazing Buying Group Org Chart™.
CORRECTION
When we wrote last week about the possible sale of GSW, the stated sales and profits were for the company’s first quarter, and not for the year. My apologies.— MM

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED



SALES OPPORTUNITIES

Exchange-A-Blade Ltd., is a leading Canadian distributor and manufacturer of power tools accessories with sales agents and independent distributors throughout North America.

Exchange-A-Blade is looking for candidates in Ontario who have several years of sales experience in the hardware or building materials industry, who are customer relationship focused and who are well organized.

Opportunities include a salary and commission based sales representative package or business investment opportunities for individuals interested in investing in their own distributorship.

For further information, please see our web site at www.exchangeablade.com. Interested candidates should send a resume and covering letter to Andy Moncrieff, Regional Sales Manager, by fax to 519-679-4917 or by email to amoncrieff@exchangeablade.com
(07.11_07.25)

**********************************************************************************
SALES AGENT: MARITIMES AND NEWFOUNDLAND

Kempston Canada Limited, a leading Canadian supplier of Router Bits and shaper cutters is looking for an established sales agency to expand our market share in the Maritime Provinces including Newfoundland.
Only agents with successful experience and contacts in the Power Tool and Accessories markets need apply.
If your company has the above experience and the ability to pioneer a high quality, competitively priced product please e-mail resumes to: sales@kempston.ca

(07.11_07.25)
**********************************************************************************
LINES WANTED

GUERTIN MARKETING INC.

Want to increase your business and accelerate your listings with major customers based in the province of Quebec? Want national distribution for your Products? Will guide you through head offices. Could be agent or consultant. My 25 years of experience in this market (national and regionall) will be a great asset for your corporation. To obtain fast results, contact Guertin Marketing Inc. Email: gilles.guertin@videotron.ca Telephone: 450-664-2223
(06.20_07.11)
**********************************************************************************

SERVICES OFFERED  

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

 MARKETPLACE

 

 

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

 

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

Jul. 4, 2005

 


John Caulfield, Contributing Editor
vol. xi, #27, July 04, 2005

IN THIS ISSUE:
• Home Depot noodles with convenience concept
• Hudson’s Bay has turnaround plan
• Rona continues western growth
• Taiga furthers corporate conversion plans
• GSW may get sold
• Lowe’s continues expansion
• U.S. investor picks up German stores
• Ace wants to harmonize dealer assortments
* * * * * *


“How wonderful it is that nobody need wait a single moment before starting to improve the world.”
Anne Frank
HOME DEPOT TO TEST CONVENIENCE OUTLETS
ATLANTA Home Depot has announced plans to try out a convenience-store concept that will include a gas station and deli. The concept will involve putting convenience stores and gas stations right in the parking lots of four Home Depot stores on a test basis in Nashville, Tenn., beginning in December of this year. Two of the locations will have car washes attached to them. The concept takes the convenience offerings currently inside the store, such as McDonald’s and donut shop, and enhances them outside the store, making for a convenience destination for anyone looking to pick up a jug of milk and a couple of two-by-fours.This test would represent the latest attempt by Home Depot to introduce the sale of food at its warehouse home centers. In the early 1990s, the company experimented with mini food courts in a few stores around Atlanta, and has also tested smaller versions of McDonald’s and Dunkin’ Donuts within its stores.

Canadian Tire announced a similar, but more refined, convenience model earlier in the spring. Called “Q,” it’s a convenience gas-and-groceries format that involves Canadian Tire gas stations, along with a scaled down Sobeys store, called “Sobeys Express,” which carries everything from fresh flowers to deli. The concept is rounded out with a Starbuck’s and a Richtree restaurant. Two trials are up and running in Ontario so far – in Milton and Windsor.

HUDSON’S BAY HAS A PLAN TO IMPROVE RESULTS
TORONTO Poor results continue to dog the world’s oldest retailer, and key investors, including U.S. businessman Jerry Zucker, are losing patience. However, the company has a three-pronged strategy to turn it around, one that focuses on power buys and large ticket sales.Pressure is coming from shareholders – especially millionaire investor Jerry Zucker, who owns almost 30% of Hbc stock – following a 1.4% drop in sales that resulted in a $41 million loss in its first-quarter. Sales declined in the Bay and Zellers, but were partly offset by an increase in the company’s Home Outfitters, which sells housewares, kitchenwares, bath décor and seasonal products. Same-store sales in the first quarter decreased by 2.1% at the Bay (including Home Outfitters), but increased slightly – by 0.4% – at Zellers. “The re-engineering of the company to our strategic plan, while arduous and multi-faceted, was essential to building the ‘One Hbc’ of the 21st century,” said Hbc CEO George Heller in a prepared release. “We are confident that the improved internal and external environment is such that we can grow sales by two to three percent in the medium term.”

Like other Canadian retailers, such as Canadian Tire, Hbc is taking a page from Target’s book. For the Bay, that strategy includes ongoing upgrades of its existing stores, plus focus on higher end brands that deliver a value proposition at a slightly higher price. Those brands will often be purchased through “power buys” or in an off-price situation that finds them ending up in a new stand-alone format called “Designer Depot.” The company’s “Big Ticket Initiative” puts added emphasis on sales of home electronics, furniture and major appliances, all of which figure prominently in the Bay’s latest flyer promotions.

At Zellers, the discount department store chain, the focus is on upgrading and revamping existing stores to make them brighter, and adding focus to lines such as clothing, some grocery items and packaged foods.

FRESH IDEAS, NEW CONCEPTS RULE AT CONFERENCE SERIES
TORONTO How can you meet Rona, Home Depot, Home Hardware, Castle Building Centres, Canadian Tire, TruServ and Tim-BR-Marts all in one day? In one room? Easy. They’ll all be at this year’s Hardlines Conference Series and Awards Gala. The two-day summit, Sept. 12-13, is the gathering place for our industry’s leading retailers and suppliers. There, they’ll get first-hand insight into the latest retail trends, information and intelligence that will guide this industry – from some of retail’s leading experts.How will the cooling housing market affect your business? What impact will the age of housing stock have on the repair and renovation market? We’ll have our usual lineup of experts to explain the market. What are the hot retail concepts? How do you have to adapt your business to today’s changing customer?

“Taking our business to the customer: the power of B2C”: Albert Plant, retail consultant and RBC Retail Industry Advisor, is will launch the Conference on Day One as our keynote. What are the top issues facing retailers today? And how can you cope with those issues – and better yet – profit from them? Plant, our numero uno retail guru, has wowed Conference audiences in the past – don’t miss him this year!

“Growth Mining: the new imperative for retailers”: Al Meyers, Senior Vice-President with Retail Forward, will continue our program on Day One with information that will make you re-think how you do business. (I’m not exaggerating here – both these guys will give you profitable, business-building insights! Michael)


Finally, Michael McLarney, your very own Hardlines Editor, will offer the latest data on the size of the industry, and identify which retail formats are growing fastest – and why.

For more info on the Hardlines Conference Series, Sept. 12-13, <click here> or call Isabel Bisong at 416-489-3396; isabel@hardlines.ca.

RONA EXPANDS WESTERN PRESENCE WITH VERNON STORE
Vernon, B.C. Rona continues to expand its presence in Western Canada with the opening today of a Rona Home Centre in this community at the north end of the Okanogan Valley. A $10-million-plus investment, the new store weighs in at 52,000 sq.ft., with a two-acre lumber yard. It replaces an existing Rona store there, and adds to Rona’s presence in the West, where growth has relied on dealer conversions, and in one high-profile instance, an acquisition, with the takeover of Calgary-based Totem Building Supplies, which has 16 stores in Alberta representing $260 million in sales.The Vernon store, while not as large an operation, will nevertheless further Rona’s plans to create corporately owned traditional-style operations across the country. The importance of the opening was evinced by the presence of Rona president and CEO Robert Dutton for traditional the “beam-cutting” ceremony. The new Home Centre creates 35 new jobs on top of the 45 existing staff being transferred from the former location.
ACE WANTS MORE CONTROL OF DEALERS’ INVENTORIES
OAK BROOK, Ill. In an effort to strengthen the company through greater dealer loyalty at the supply level, Ace Hardware Corp. continues to exercise greater control of products and brands in dealer inventories. The move may reflect new CEO Ray Griffith’s experience at the erstwhile Coast to Coast, where head office selected products and brands so that advertising and assortments were common among all Coast to Coast stores. Individually, Coast dealers could supplement and diversify their selections by buying from other wholesalers, but there was far more uniformity in inventories than among any other group of hardware stores.However, a number of dealers have developed some very powerful brands, and those dealers have built up strong sales promoting those brands. It would seem that Ace would not want to interfere with those distribution agreements.Griffith, whose career ranges from his Coast to Coast experience to a stint with ServiStar Coast to Coast when ServiStar acquired Coast, wants to avoid the kind of upheaval that decimated the former number-one wholesaler, Cotter & Co., when it merged with ServiStar Coast to Coast and became TruServ. In the process, it suffered severe financial and operational problems, losing a large number of retailers – many to Ace.

To avoid upsetting younger, aggressive dealer-members, Griffith has formed a “progressive Ace leader” advisory council of dealers 40 and under. It is this next generation of owners that Ace realizes it must satisfy as it seeks to grow.

N.Y.-BASED FIRM INVESTS IN GERMAN RETAILER
DORTMUND, Germany — A New York-based firm that specializes in sale-leaseback arrangements has agreed to purchase 16 stores from the home improvement retailer Hellweg Die Profi-Baumärkte GmbH & Co. KG for US$154 million. In exchange, Hellweg will lease back those stores, located in 16 different cities, through a 25-year agreement. This would represent the largest single investment in Europe to be made by the investor, WP Carey & Co., which last year struck a $31 million deal in Finland with a company called Plantasjen ASA. “We anticipate an increase in our investment volume in the months ahead as more European companies realize the benefits [of sale-leaseback transactions],” WP Carey’s president Ed LaPuma stated. All told, WP Carey has invested about US$540 million in Europe over the past 16 months. Hellweg operates 73 stores across Germany and seven in Austria. 

COMPANIES IN THE NEWS
BURNABY, B.C. Taiga Forest Products Ltd. has taken further steps in its conversion to an income fund type of structure under the name Taiga Building Products Ltd. At the company’s annual meeting held last week, shareholders passed a resolution in support of the previously announced proposed arrangement, under which the company will be converted through the exchange of shares of the Taiga Forest for stapled units of Taiga Building Products. Completion of the arrangement is subject to a number of conditions, including the completion of the previously announced initial public offering and secondary offering of stapled units of New Taiga and the final approval of the Supreme Court of British Columbia.OAKVILLE, Ont. The two major shareholders of GSW Inc. are in discussions for a possible sale to A.O. Smith Corp., a Wisconsin-based manufacturer of electrical motors and water heaters. GSW is a manufacturer of durable consumer products through two divisions, Water Products and Building Products. It also owns 20% of appliance maker Camco. GSW’s roots date back to the McCleary Manufacturing Co., which made heavy appliances (our first hand-me-down fridge when I was a junior Hardliner growing up in Scarborough, Ont., was a McCleary nostalgic Mike) since 1847. The company now employs 600 in Canada and 1,000 in the U.S, with profits in 2004 of $4.5 million on sales of $144.9 million.ST. JACOBS, Ont. To celebrate Canada’s 138th birthday, Home Hardware dealers, together with the Tree Canada Foundation, planted hundreds of trees across the country this past weekend. In total, 41 communities participated in the nationwide tree planting initiative. Home Hardware has worked with the Tree Canada Foundation for the past six years, with the planting by dealers of thousands of native evergreen trees, and donations from head office of more than $300,000.

MOORESVILLE, N.C. — Lowe’s has announced it will add even more space to its ever-growing headquarters facilities here. The Charlotte Observer reports that the industry’s second-largest dealer will begin construction early next year on the expansion that will allow Lowe’s to accommodate 2,000 more employees, including 500 information technology associates who will relocate from another Lowe’s facility in Wilkes County, N.C. The construction should be completed by 2008. Fifteen months ago, Lowe’s announced it would add to the Mooresville campus to handle another 600 employees. That construction should be completed this fall. Ultimately, the Mooresville site will have the capacity to hold 8,000 associates.

ATLANTA Home Depot has finalized the acquisition of a pro-oriented lumber yard chain, Williams Brothers Lumber. The company has 16 outlets, selling exclusively to residential and commercial builders. It will operate within Home Depot’s pro supply division, Home Depot Supply. The acquisition adds sales of US$444 million to Home Depot.

SUMNER, Wash. Ace Hardware has announced it will open a warehouse in this area near Tacoma, to handle imported products from the Orient. Ace spokeswoman Natalie Danaher told the Tacoma News Tribune that Ace will bring imports into the 427,000-sq.ft. warehouse for distribution to its 15 regional distribution centers, or on a direct-ship basis to its stores. Ace opened a buying office in Hong Kong last year to facilitate exports from the Far East, mainly China.

PEOPLE ON THE MOVE
At its recent annual meeting, the TORBSA Group, the Ontario-based LBM buying group, elected its 2005 board of directors: Joe Driscoll of Byron Building Supplies Ltd. North Bay, has been elected as president of TORBSA … The other members are: Mike Mayhew of Select Acoustic Supply Inc., Concord, past president; Martin Lieberman of Blair Building Materials Inc., Maple, vice-president operations; Claude Morin of Morin Bros. Building Supplies Inc. Ottawa, secretary; Blake Oldershaw of Oldershaw Building Supply Co. Ltd., Chatham, treasurer; and Ed Caklos, Chauncey Builders’ Supply Inc., Toronto; vice-president.
MARKET INDICATORS
Consumer spending and business investment drove first-quarter growth, according to an assessment of current economic conditions by Stats Canada. Its June edition of the Canadian Economic Observer reports that these gains were offset in part by a drop in housing and a slowdown in inventories, while the growth of imports continued to outstrip exports. Business investment rose 8% in volume year-over-year.

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

Wow, what took you so long? Well, maybe you’ve been waiting for the perfect opportunity. Like this one.

You know what it takes to keep a business strong and so do we. UFA is a dynamic, agricultural retailer that delivers products and services to meet the needs of progressive farmers, rural customers and businesses. We think you’ll feel right at home on our Private Label Development team. With the introduction of this exciting new Private Label initiative to our already vibrant Farm Supply mix, UFA has three new positions one of which might just be the opportunity you’ve been waiting for.

Based in our Calgary support office and reporting directly to the Manager of Corporate Brand and Procurement, you can look forward to having a cross-functional relationship with our Marketing, Merchandising, Brand Management and Supply Chain department.

PRIVATE LABEL PRODUCT DEVELOPER
Your key accountabilities include: developing the product mix under UFA’s corporate labels; sourcing products internationally for private label development to increase margin, including costing, product development, competitive analysis, logistical tracking and vendor development; monitoring and building detailed specifications for products including packaging and materials; obtaining the closest scouring contact possible and managing all aspects of the procurement process.

For this position you need a degree/diploma with a Business or Purchasing designation and 3-5 years experience in private label development or equivalent. You have the ability to bring innovative and creative approaches to sourcing in addition to your proven track record of international procurement and private label development. You thrive in a multi-task environment with multiple projects in cross-functional teams. You are willing and able to travel internationally.

Interested? Please apply via email or fax your resume to:

UFA
1016 – 68th Avenue SW
Calgary, AB T2V 4J2
FAX: (403) 258-7630
EMAIL: resumes@ufa.com
www.ufa.net

Thank you for taking the time to find out more about UFA.
(06.20_07.04)


**********************************************************************************
LINES WANTED

GUERTIN MARKETING INC.

Want to increase your business and accelerate your listings with major customers based in the province of Quebec? Want national distribution for your Products? Will guide you through head offices. Could be agent or consultant. My 25 years of experience in this market (national and regionall) will be a great asset for your corporation. To obtain fast results, contact Guertin Marketing Inc. Email: gilles.guertin@videotron.ca Telephone: 450-664-2223
(06.20_07.11)
**********************************************************************************

SERVICES OFFERED  

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

 MARKETPLACE

 

 

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

 

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

June 27, 2005

 


John Caulfield, Contributing Editor
vol. xi, #26, June 27, 2005

IN THIS ISSUE:
• Another U.S. dealer sniffs around Canada
• Home dealer grows with furniture sales
• IRLY warehouse goes high-tech
• 20/20 hindsight: Canadian Tire’s newest program
• Will Home Depot buy Chinese chain?
• German Praktiker chain may go on block
* * * * * *

“A bashful beggar has an empty purse.” Hungarian proverb
84 LUMBER CONSIDERS CANADIAN EXPANSION
EIGHTY FOUR, PA – 84 Lumber, the second-largest pro dealer in the United States, has confirmed that it has begun the process for an eventual move into Canada, which could occur as early as 2007. Company spokesman Jeff Nobers said that 84 has already looked into the legal requirements to establish a business in Canada, although the dealer has not done any investigation into possible sites yet, or any demographic analysis. However, he said, “the intent is to do this,” and quoted senior-level officials at 84 to add that the time frame before the company either builds its first stores or acquires a company could be “two to three years.”

In 2004, 84 Lumber generated US$3.46 billion in sales from 463 stores. Those stores average 20,000 sq.ft. of inside selling space on several acres of land. Earlier this year, company officials revealed plans to open a minimum of 52 stores in 2005, which will include 84’s 500th unit. Nobers said that, over the next few years, the company intends to open between 150 and 175 stores, the majority of which will be in the Western U.S.

“Once we reach that point where we have some critical mass in the west, Canada will be another way for us to grow.”

84 Lumber is looking north at a time when another major American-based retailer, Lowe’s, has disclosed that it will open as many as 10 stores in Toronto by 2007.

HOME DEALER FINDS GROWTH IN FURNITURE
MONCTON, N.B. – Alvin Leger didn’t look to building materials or hardware when he wanted to expand his retail business. With a Home Hardware Building Centre already in the Moncton neighbourhood of Elmwood, and a second store in Dieppe, Leger, who owns the business with his wife Rachel, wanted to add a new dimension to their third store, which was going up in a former bowling alley in Magnetic Hill. Alvin and Rachel opted for a Home Furniture store, which was installed right inside the new Building Centre. The grand opening for the furniture business was held on June 9, as construction of a new LBM warehouse delayed that side of the operation. (The warehouse was filled this past weekend and the building supply business is fully functional as of today.)

About 12,000 sq.ft. of the 40,000-sq.ft. store have been devoted to the Home Furniture business, and even though both operations share a common entrance, once inside, the two stores offer a distinct retail environment.

“I tried to keep it separate from the building supplies,” says Leger. “It’s a different shopping experience. The Home Furniture creates for us a shopping destination.” He adds that people will drive a considerable distance to shop the Furniture store, so that business has to deliver an atmosphere of quality at a reasonable price. A Home Furniture store’s typical product mix includes major appliances and home electronics.

According to Bill Ferguson, dealer support manager for Home Hardware in St. Jacobs, Ont., more and more Home dealers are adopting the Home Furniture program, driving the dealer-owned co-op’s organic growth through its existing dealers. “The biggest growth for Home is coming from within the dealer ranks themselves,” says Ferguson. “They see the synergy between building a house, and decorating a house, and filling it with furniture and appliances.”

Leger says he’s seen a real improvement in Home’s management of the Furniture program. It’s expanded its catalogue, pursued a quality offering, and backed it all up with effective marketing, he says.

CANADIAN TIRE PREZ PREDICTS FUTURE OF 20/20 STORES
TORONTO – Mark Foote, president of Canadian Tire Retail, says the company’s current 20/20 concept will get re-evaluated – and possibly reinvented – again in another five or six years. Speaking at the recent annual convention of the Retail Council of Canada held here, he pointed out how the 20/20 concept, introduced in the fall of 2004, has marked a “successful renewal” of Canadian Tire’s merchandising, one that depended on three things: clarity of strategy, a belief that “the store is everything,” and a recognition of the fact that “renewal is a process.”That renewal takes money, he admitted, but the payoff is evident. “Eighty-five% of our sales come out of stores that are 12 years old or less.” And the 20/20 stores themselves are turning in 19% better results than traditional stores. The next evolution for the stores will be around 2010, he notes, “when the current 20/20 stores can be evaluated and evolved.”

Foote expects these efforts to drive the retail division from its sales of $6.5 billion to more than $8 billion in a few short years.

IRLY TESTS NEW WIRELESS TECHNOLOGY AT DC
SURREY, B.C. – IRLY Distributors Ltd. has entered into an agreement with Q.Data Inc. for the supply of Symbol Barcoding and Wireless infrastructure equipment at IRLY’s distribution centre here. The handheld computer equipment is being integrated with the existing Warehouse Management software, with the goal of being able to render all warehouse functions, such as receiving, putaway and picking orders, completely paperless. By utilizing scanning of UPC barcodes on products in each step, IRLY hopes to achieve greater inventory accuracy, efficiency and – most importantly – extremely accurate order shipments to dealer members who operate under the IRLY Building Center banner, and to non-affiliated retail customers through IRLY’s Western Hardware business. The pilot program started June 1 and a complete rollout should be completed by this fall.
TOP RETAILERS WILL SPEAK AT INDUSTRY CONFERENCE
TORONTO – Wal-Mart, Home Depot, and now Lowe’s. The threat faced by the independent in Canada is a serious one, yet those independents continue to endure. How they’re doing it will be just one of the topics presented at this year’s Hardlines Conference Series and Awards Gala, September 12-13, 2005. To celebrate our 10th anniversary, we are lining up the most amazing Hardlines Conference Series ever. Once again, you can count on a gathering of top retail experts from around the world to join us September 12-13, 2005 at the swank Hilton Suites Hotel, Markham, Ont. Speakers will include the evp of the world’s largest home improvement chain, plus the man who brought DIY big boxes to Canada in the first place, the head of Canada’s largest hardlines retailer, and one of the smartest independent building centre dealers in the country.If you want to hear a truly amazing retail mind at work, don’t miss Bill Morrison, President and CEO of TruServ Canada, as he offers his amazing insights into the realities facing independents today. With a career that includes Foot Locker and Home Outfitters, Morrison is well suited to offer a thoughtful understanding of the demands of today’s consumer – and how best to meet those demands to build your business.

From the other end of the DIY spectrum, delegates at this year’s conference will get a rare bird’s eye view of the industry. As the number-two guy at the number-one home improvement retailer, John Costello, Executive Vice-President of Merchandising and Marketing for Home Depot will join us from Home Depot’s headquarters in Atlanta to make a rare appearance in Canada.

Other speakers include Stephen Bebis, President and CEO of Golf Town. But he’s best remembered in this industry as the man who brought the home improvement big box to Canada. He founded Aikenhead’s on behalf of Molson more than a decade ago. It was taken over in turn by Home Depot.

Your customers, colleagues and competitors will all be at this year’s Hardlines Conference Series and Awards Gala, September 12-13. Don’t miss it. For more info, <click here> or contact Isabel Bisong here at the World Headquarters: isabel@hardlines.ca; 416-489-3396.

GERMANY’S METRO PONDERS SALES OF PRAKTIKER CHAIN
DUSSELDORF, Germany – Retail giant Metro has disclosed that it is considering ways to sell its ownership of Praktiker, its 339-unit home improvement chain. The company, which is the world’s third-largest retailer in revenue, said that it might offer Praktiker for sale to the public through stock, or attempt to sell the chain outright. Dr. Hans-Joachim Korber, Metro’s CEO, explained in a prepared statement that Praktiker is now “excellently positioned for further growth, either within Metro Group or on a stand-alone basis.” Praktiker has recently undergone a corporate and operational restructuring that, last year, helped double its operating income to the equivalent of US$74.1 million on sales of US$3.6 billion. Praktiker operates stores in nine countries, and generated more than one-fifth of its sales from Eastern Europe, which reportedly is an area of growth concentration for Metro.

Praktiker’s core market in Germany, though, has suffered through a prolonged period of stagnant job growth and competitive over-saturation within the retail home improvement sector.

COMPANIES IN THE NEWS
SHANGHAI – Home Depot Inc., which has buying offices in China but no stores yet, is reportedly in talks with Orient Group Inc. to invest in that company’s DIY division, Orient Home, which has 27 outlets in China. A deal could be finalized by the end of this month. According to Reuters, Orient Home did confirm they are “in discussions” with Home Depot, but wouldn’t provide any more details. ST. JACOBS, Ont. – More than 550 Home Hardware Dealers, staff, suppliers and friends gathered last week at four courses for the Home Hardware Annual Charity Golf Tournament in support of the Hospice of Waterloo Region. The tournament, which featured a silent auction and prizes donated by Home Hardware and its suppliers, was expected to raise more than $20,000. Over the past ten years, the Home Hardware Annual Charity Golf Tournament has raised more than $220,000 for various local charities.

PALATINE, Ill. – Sears Essentials, a new convenience format from Sears, with some Kmart DNA thrown in, has been the fate of some two dozen Kmart stores since April, with plans for a total of 400 of the 1,500 Kmarts to make the switch by 2007. Sears Essentials is part of the company’s “off-mall” strategy, this one to showcase leading Sears and Kmart brands such as Kenmore appliances, Craftsman tools, and Land’s End clothing.

JOHANNESBURG, South Africa – Mica South Africa, the retail home improvement business of Super Group, has formed a supply deal with Ace Hardware Corp., based in Oak Brook, Ill. Ace, which is now in 70 countries, has recently made a similar deal with Mitre 10, a leading dealer-owned co-op in New Zealand.

DALLAS – Builders FirstSource Inc. has completed its IPO, raising US$196 million. The shares were priced at US$16, and actually opened at US$16.52 and the number of shares was increased from 11.25 million. UBS Securities and Deutsche Bank Securities Inc. managed the sale of the offering. The IPO drew the attention of Wall Street based on the continued hot real estate market in the U.S. to which Builders FirstSource supplies products and services.

DENVER, Col. – Johns Manville has entered the next phase of the expansion of its formaldehyde-free fiberglass insulation capacity with the production of a new loose-fill line at its Canadian manufacturing plant in Innisfail, Alta. Construction has begun and the new line will be operational in early 2006. This new line, when combined with recent technology investments across JM facilities, will increase North American loose-fill capacity by 50%, or by up to 200 million pounds. The expansion supports the accelerating demand for JM’s Formaldehyde-free insulation products. The capacity increase coincides with tougher requirements by Environment Canada for thermal insulation that carries the “EcoLogo” mark.

MARYSVILLE, Ohio — Scotts Miracle Gro, North America’s largest supplier of lawn care products, last week cut its senior-level management team by 15%. The move – which included directors and executive vice-presidents – is expected to eventually save the company US$7.5 million annually. Scotts also plans to offer early-retirement packages to between 120 and 150 employees, and hinted that further layoffs could be in the offing.

NEWTON, Iowa – Maytag Corp. has received a preliminary non-binding proposal from Bain Capital Partners LLC, Blackstone Capital Partners IV L.P. and Haier America Trading, L.L.C. to acquire all outstanding shares of Maytag for US$16 per share cash, even though it has already agreed to a takeover offer by another investor group. On May 19, 2005, Maytag agreed to be acquired by an investor group led by Ripplewood Holdings LLC for $14 per share cash. According to the preliminary non-binding proposal, completion of due diligence is expected to take 6-8 weeks, and the Bain proposal is conditional and may not necessarily result in a definitive agreement.

PEOPLE ON THE MOVE
Craig Neeser has been named to head up Weyerhaeuser Canada. He assumes the role of CEO effective July 18. In his new role, he will report directly to Steven R. Rogel, chairman, president and CEO. Neeser, who joined Weyerhaeuser in 1999 when the company was acquired MacMillan Bloedel, will chair the company’s Canadian Leadership Team and focus on enhancing strategic stakeholder relationships in Canada … Neeser replaces Sandy McDade, who has joined the Weyerhaeuser head office in Federal Way, Wash., as senior vice-president, industrial wood products and international business groups. In his new role, McDade will report directly to Richard E. Hanson, executive vice-president and COO. He will be responsible for Weyerhaeuser Asia, Weyerhaeuser Forestlands International and European Wood Products, Northwest Hardwoods and Composites … McDade succeeds William R. Corbin, who will retire at year’s end. Corbin joined Weyerhaeuser in 1992 as executive vice-president, Wood Products, eventually moving up to a position as executive vice-president, Wood Products, before assuming his current role in 2004.James Lopez has been named to replace Frank Dottori as president and CEO of Tembec, the Montreal-based forest products company. The move becomes effective upon Dottori’s retirement, after 32 years, on January 26, 2006. Lopez is currently executive vice-president and president of the Tembec Forest Products Group. During his 16 years with the company, he has been accountable for a number of Tembec’s business units and has been an integral part of Tembec’s growth strategy.
MARKET INDICATORS
Retail sales reached a record $30.86 billion in April, up 1.5% over the previous month, reports Stats Canada. Compared with the same period last year, that’s up 8.2% over April 2004. Sales of hardware, home improvement and garden products were especially hot, rising 4.5%.
NOTED…
Online retail sales in the U.S. are expected to grow by 23% this year, cracking the $100 billion mark for the first time and garnering a bigger share of shopping dollars – despite Internet security threats. According to a study by Forrester Research Inc. on behalf of the National Retail Federation, online sales in 2005, excluding travel, are expected to reach US$109.6 billion, up from US$89 billion in 2004 and US$71.8 billion in 2003. Although they are growing at a faster rate than retail overall, online sales only accounted for 4.6% of retail sales in 2004, although that is expected to grow to 5.5% in 2005, says the study. Retailers responding to the survey reported that the web influenced 20% of sales in stores. Even if sales are not completed online, customers are using retailer websites to gather product information and make price comparisons.

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

Wow, what took you so long? Well, maybe you’ve been waiting for the perfect opportunity. Like this one.

You know what it takes to keep a business strong and so do we. UFA is a dynamic, agricultural retailer that delivers products and services to meet the needs of progressive farmers, rural customers and businesses. We think you’ll feel right at home on our Private Label Development team. With the introduction of this exciting new Private Label initiative to our already vibrant Farm Supply mix, UFA has three new positions one of which might just be the opportunity you’ve been waiting for.

Based in our Calgary support office and reporting directly to the Manager of Corporate Brand and Procurement, you can look forward to having a cross-functional relationship with our Marketing, Merchandising, Brand Management and Supply Chain department.

PRIVATE LABEL PRODUCT DEVELOPER
Your key accountabilities include: developing the product mix under UFA’s corporate labels; sourcing products internationally for private label development to increase margin, including costing, product development, competitive analysis, logistical tracking and vendor development; monitoring and building detailed specifications for products including packaging and materials; obtaining the closest scouring contact possible and managing all aspects of the procurement process.

For this position you need a degree/diploma with a Business or Purchasing designation and 3-5 years experience in private label development or equivalent. You have the ability to bring innovative and creative approaches to sourcing in addition to your proven track record of international procurement and private label development. You thrive in a multi-task environment with multiple projects in cross-functional teams. You are willing and able to travel internationally.

Interested? Please apply via email or fax your resume to:

UFA
1016 – 68th Avenue SW
Calgary, AB T2V 4J2
FAX: (403) 258-7630
EMAIL: resumes@ufa.com
www.ufa.net

Thank you for taking the time to find out more about UFA.
(06.20_07.04)


**********************************************************************************
LINES WANTED

GUERTIN MARKETING INC.

Want to increase your business and accelerate your listings with major customers based in the province of Quebec? Want national distribution for your Products? Will guide you through head offices. Could be agent or consultant. My 25 years of experience in this market (national and regionall) will be a great asset for your corporation. To obtain fast results, contact Guertin Marketing Inc. Email: gilles.guertin@videotron.ca Telephone: 450-664-2223
(06.20_07.11)
**********************************************************************************
POSITION WANTED

RETAIL SALES REP/MERCHANDISER FT/PT

Looking for employment in Kelowna/OK Valley and/or West Kootenays BC. 18 years experience in Power Tool and Accessory sales calling on Nationals, Chains, Box Stores and Independents. Skills: Product Knowledge, Quality/Customer Focus, Organization, Client Relationships, Promotions, Reporting, Attention to Detail, Territory Management, Competetive Analysis. Let’s talk! 250 808-8170 shortymale@hotmail.com
(06.13_27)

**********************************************************************************

SERVICES OFFERED  

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

 MARKETPLACE

 

 

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

 

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.

June 20, 2005

 


John Caulfield, Contributing Editor
vol. xi, #25, June 20, 2005

IN THIS ISSUE:
• Castle dealers eager for new look
• The Bay adds power tools
• Shake-up at CanWel: Royce gone
• Debbie Travis: too hot to handle?
• Home Depot buys two smaller companies
• Ace dealers: loyalty first
• Home Depot managers can file class-action suit
* * * * * *

“I praise loudly. I blame softly.”
Catherine the Great (Empress of Russia, 1729-96)
CASTLE PUSHES BRAND
UNDER NEW STORE IDENTIFICATION PROGRAM
MISSISSAUGA, Ont. – A comprehensive new program for store identification and merchandising being offered to Castle Building Centres members is gaining momentum. A prototype design is now fully operational at one store, Windsor Building Centre in Windsor, Ont., while a number of other Castle stores are in various stages of planning and development.That store, which was developed even as the program itself was still being fine-tuned, came in under budget and on time, says Mike Frame, business development manager at Castle. The program recognizes the need for a strong, unified brand to assist the group’s 250 member stores to promote and identify themselves amidst the incursion of other major retail brands. Companies like Home Depot and Rona are both making inroads into the small-town markets of English Canada that have long been the domain of independent groups such as Castle, and its chief competitor, Tim-BR-Marts Ltd. The Windsor store, which now features beige and burgundy limning the traditional gold colour of the Castle logo, has become a destination for Castle members to see the new look first-hand. “That’s generated interest in all regions across Canada for the program,” says Frame, with up to 10 stores expected to be ready for implementation by this fall. “We’re in a go-forward position.”

And even though the program was still in the development stage, the owners of the Windsor store wanted to make the switch right away. A Home Depot store opened in town recently, and a major Home Hardware dealer had updated their store. Nevertheless, the 6,000-sq.ft. operation has become an effective ambassador for the new look of Castle. “What it does is give us the platform to demonstrate the full capacity of all the marketing components of the offering,” says Frame.

The program was designed by Burlington Merchandising & Fixtures of Burlington, Ont., fronted by Rob Wilbrink, Phil Dwyer and Mike Serecin, all ex- of Rona and Lansing. Just last week, Castle’s board approved the final draft of a store development program manual that outlines in detail all aspects of the program, covering everything from store layout and interior signage to exterior fascia, signage, and ancillary branding, such as truck signage and even uniforms. “The purpose is to create a brand entity for Castle,” says Wilbrink. “This is the best looking program in the industry. When the Castle dealers see it, they say ‘wow’,” he adds.

The new Castle program remains focused on Castle’s core categories of lumber and building materials, while offering complementary hardlines merchandising that helps expand the front end of the store and caters more directly to the consumer. However, since Castle has a philosophy of offering its members greater independence and latitude than other groups, it will neither mandate the new design, nor offer a cookie-cutter solution to all, explains Frame.

THE BAY RE-JIGS FATHER’S DAY ASSORTMENTS
WITH POWER TOOLS
TORONTO – In an effort to beef up its hardlines assortments in its flagship chain, Hudson’s Bay Co. has rolled out a small selection of power tools in the Bay. The launch, which picks up momentum just in time for Father’s Day, was designed to offer Hbc customers the convenience of one-stop shopping, says Mariana Di Rezze, a spokesperson for Hbc. The tools, already available at Zellers stores across Canada, were tried out in the Bay as part of a pilot project, with Hbc bringing in a few items from the wider assortment of tools available at Zellers discount department stores. In most parts of Canada, customers will find the Black & Decker tools – 3/8-inch 18-volt Drill Kit, golf organizer storage unit, and Power Smith Rotary tool. They are merchandised alongside a wider assortment of poker accessories that are also being positioned as Father’s Day gift ideas. In addition, the tools are featured on “gift-giving gondolas” through out the store and follow the treasure hunt strategy approach where customers can find them in random spots within the store. Due to consumer demand, says Di Rezze, Bay stores in Alberta currently offer a slightly larger assortment of power tools than the rest of Canada – including a Black & Decker electric measuring tape, stud finder and laser level, and a 14.4-volt four-piece combo kit.

If the pilot project is successful, Hbc will continue to offer a selection of tools at the Bay and will perhaps widen the assortment that’s currently available, says Di Rezze.

IS DEBBIE TRAVIS TOO HOT FOR CANADIAN TIRE?
TORONTO – A reception featuring décor maven Debbie Travis was held at Canadian Tire’s mid-town store at Yonge and Davenport last week. The event gave some radio contest winners the opportunity to meet Travis in person. But it was also a great opportunity see Travis “uncut,” as she demonstrated a more unrestrained wit and humour than she typically reveals on TV – and offered some insights into the evolution of the Debbie Travis paint line.Travis explained the process she used to develop the eponymously named Canadian Tire line and establish colours for each mood. “What we did was lock ourselves in a room with 20 bottles of wine, and then sent [Canadian Tire] all the colours in the morning.”In her attempt to find youthful, hip colours, she said, “Some of the colours were, of course, too hot for Canadian Tire. The ones with names like “Slutty Susan” came back,” she told the small crowd, appreciative of her humour. In fact, the retailer nixed at least half a dozen names because they were deemed inappropriate.

Travis also noted the power of styles and trends in driving home renovations. People will consider changing the colour on a wall within as short a time as six months, she said. Furniture is no longer purchased with a lifetime of use in mind. “Why buy a sofa for 30 years?” she quipped. “The marriage is only going to last for two years!”

HOME DEPOT, BMHC MAKE ACQUISITIONS
NATIONAL REPORT — Two of the industry’s largest dealers — Home Depot and Building Materials Holding Corp. — last week strengthened their respective subsidiaries’ programs through acquisitions. San Francisco-based BMHC acquired, through its BMC Construction division, a 51% stake in BPP Cos., an Arizona-based provider of concrete foundation services for local homebuilders. Terms of the deal weren’t revealed, but BMHC said that BPP generated more than US$100 million in revenue last year. In April, BMHC acquired another Arizona-area installer, Riggs Supply, which specializes in plumbing.Atlanta-based Home Depot said it would acquire two companies — Hawaii-based Wire Products, a dealer specializing in concrete fortification products; and Illinois-based Utility Supply of America, a catalogue distributor of water and wastewater parts.

The acquisition of Wire Products, which Home Depot will manage under its White Cap Industries division, is expected to close in August. The purchase gives the company a presence in Hawaii with three locations. The dealer expects to close its purchase of Utility Supply by July. Utility Supply sells under the name USA Bluebook to municipalities, non-municipal government facilities, and industrial and private water and wastewater facilities and labs.

ACE DEALERS RESIST STANDARDIZATION AT THEIR PERIL
OAK BROOK, Ill. – Ace Hardware’s plans to add 1,100 stores to its network by 2008 will depend largely on how willing some 3,800 independent retailers will be to give up some of their independence. Those 3,800 retailers currently operate more than 4,800 stores.Ray Griffith, who became Ace’s CEO the first of April, says turning Ace into a powerhouse national chain that looks the same everywhere is key to competing with the big boxes. He says Walgreen, America’s largest drug chain, is growing rapidly by internal expansion, not by acquisition, and thinks Ace can do the same. Walgreen, however, is a corporate chain with top-down managerial power, not a co-operative comprised of 3,800 individual owners with their own ideas of how to succeed in their local markets.Griffith spearheaded Ace’s earlier effort to “standardize” and improve Ace’s public face. In 2000 he gathered dealer groups at its annual meeting/trade show for brainstorming sessions, asking what it would take to get dealers to sign onto a plan to modernize and unify Ace stores.The resulting plan, labeled Vision 21, met with remarkable success. With it, Ace converted 2,500 of its 4,800 stores to upgrades, which Ace helped by providing the merchandise credits as well as working out bank agreements to provide attractive terms for new store loans and remodels. It also presented achievement awards to compliant stores.

However, 1,600 stores so far have resisted the modernization/ standardization efforts. And Ace also discovered that nearly 550 of its units did not even want to identify themselves as Ace stores by using the name in any way. Those dealers who choose not to use the Ace name can no longer enjoy all the financial benefits received by Ace-identified stores.

Griffith says all new stores are to be at least 12,000 sq. ft. in size, considerably larger than the average Ace store of 9,000 sq. ft. today. In fact, there are many older Ace member-dealers operating stores of 5,000 sq. ft. or less, particularly in urban areas and very small towns.

Griffith says dealers who signed up for Vision 21 are enjoying greater sales gains than the average Ace dealer – 4% in 2004 compared with a 1.5% increase for those not participating.

COMPANIES IN THE NEWS
ATLANTA – Home Depot reports that the value of gift cards that never got redeemed over the years totaled US$43 million. The unused value of the cards, called “breakage,” was tallied from 1998, when Home Depot introduced the cards, until 2001, and the income was recognized on the company’s latest quarterly filing to the U.S. Securities and Exchange Commission. Home Depot will continue to report the gains on an ongoing basis in future filings. Unlike some other retailers, it does not impose an expiration date on the value of its cards.MEMPHIS – One of the key areas of growth for hardlines distributor Orgill is with its pro dealer customers. These dealers are being well serviced both by the regional supply capacity of Orgill’s network – and by the broad hardware ranges that many pro dealers are expanding into, as well as Orgill’s full LBM offering. Orgill’s pro dealer sales are expanding with the independent dealers served by Orgill’s national network of distribution centers. Pro Source, a program developed about two years ago specifically for those pro dealers, has been a factor in the growth, especially among larger chains such as Marvin’s and even 84 Lumber.

RIVERSIDE, Calif. — A Superior Court judge here has ruled that assistant managers at Home Depot can sue the retail giant as a class of plaintiffs for unpaid overtime. Managers in California are typically exempt from overtime rules. But the lawsuit contends that assistant managers regularly perform the same duties as their hourly coworkers. Those tasks include stocking shelves, operating cash registers and picking up merchandise at other stores. As many as 2,000 assistant managers, who worked for Home Depot in California from July 1997 to the present could be included in the class action, whose total damages could reach more than $100 million.

MINNEAPOLIS – The Valspar Corp. has completed its acquisition of stain and finish company Samuel Cabot Inc., for an undisclosed amount. The deal, which was originally announced on May 10, adds approximately $60 million in sales to Valspar’s operations.

TEMISCAMING, Que. – Tembec has recently begun offering FSC-certified Softwood Kraft and Temcell High Yield pulps to the market. FSC certification is a third-party endorsement for environmentally and socially responsible forestry practices and the only system that tracks market pulp from the forest to the final product, according to a release by Tembec. Three operations being audited by FSC produce approximately 770,000 metric tonnes of pulps annually, and use FSC wood fiber from a combined area totaling 10 million acres.

LAKE FOREST, Ill. – Salton Inc. may face Chapter 11 as early as this fall, based on its inability to make a US$6.7 million interest payment due last week on US$125 million in debt. Salton, well known for brands such as the George Foreman grill and other home appliances, has until September to come up with a plan for restructuring its bonds, which are due in December.

DALLAS – Kimberly-Clark Corp. will begin formal testing of “Generation 2” Radio Frequency Identification hardware this summer. The Generation 2 hardware provides a universal solution to RFID technology on a global basis, replacing numerous and incompatible systems with one system used worldwide. The tests, scheduled to begin July 6th at Kimberly-Clark’s dedicated RFID research lab in Neenah, Wis., will allow the company to determine which hardware is the most compatible with its conveyor, packing, logistics and shipping systems.

PEOPLE ON THE MOVE
VANCOUVER – CanWel Building Materials Income Fund has made the following changes to the executive team of its wholly owned subsidiary, CanWel Building Materials Ltd.: Andrew Allen has been named national director of sales and product management for CanWel’s Distribution Division. Formerly director, supply management at CanWel, this 10-year veteran of the company will be responsible for managing national account relationships, in addition to product management leadership … As a result of this reorganization, Rick Royce, vice-president, sales has left the company … Martin Hope has been named CFO. Hope is a chartered accountant who brings 20 years of experience to the job, with companies including Slocan Forest Products, Versatile Mobile Systems, and Duke Seabridge … Also at CanWel, Gordon Buttolph has been appointed director, information technology. He will be responsible for the overall management and direction of all systems activities for CanWel. Most recently, he was project manager for SAP implementation with International Paper Ltd., and before that he worked at Weldwood. Irly Distributors has elected its board of directors for the coming year (all located in British Columbia): Brian Hancock, Parkland Building Supplies in Sicamous, has been named president; Gus MacLellan of Mara Lumber, Kelowna, is vice-president; Jeff Davie, of Kaslo Building Supplies in Kaslo, is now secretary … Appointed as directors are: Carole Hamanishi of Wilway Lumber Sales in Abbotsford; Shaf Shivji of Dunbar Lumber Supply in Vancouver; and Trevor Stephenson of Woodstop Building Supplies in North Vancouver. Peter Clarke has joined Acton, Ont.-based TVM Building Products as vice-president sales – Canada. Formerly, Clarke served as director of sales with American Tool Co. (519.853.5330, ext. 242 or peter.clarke@tvmi.com)
MARKET INDICATORS
Wholesale trade grew by 0.9% to $39.4 billion in April, marking the third consecutive monthly increase, reports Stats Canada. In constant dollars, wholesale sales were up 1.1% for the month.

****HARDLINES MARKETPLACE****
Don’t miss the products and services on the Hardlines web Marketplace:
https://hardlines.ca/html/marketplace.html
And check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp

HELP WANTED

Wow, what took you so long? Well, maybe you’ve been waiting for the perfect opportunity. Like this one.

You know what it takes to keep a business strong and so do we. UFA is a dynamic, agricultural retailer that delivers products and services to meet the needs of progressive farmers, rural customers and businesses. We think you’ll feel right at home on our Private Label Development team. With the introduction of this exciting new Private Label initiative to our already vibrant Farm Supply mix, UFA has three new positions one of which might just be the opportunity you’ve been waiting for.

Based in our Calgary support office and reporting directly to the Manager of Corporate Brand and Procurement, you can look forward to having a cross-functional relationship with our Marketing, Merchandising, Brand Management and Supply Chain department.

PRIVATE LABEL PRODUCT DEVELOPER
Your key accountabilities include: developing the product mix under UFA’s corporate labels; sourcing products internationally for private label development to increase margin, including costing, product development, competitive analysis, logistical tracking and vendor development; monitoring and building detailed specifications for products including packaging and materials; obtaining the closest scouring contact possible and managing all aspects of the procurement process.

For this position you need a degree/diploma with a Business or Purchasing designation and 3-5 years experience in private label development or equivalent. You have the ability to bring innovative and creative approaches to sourcing in addition to your proven track record of international procurement and private label development. You thrive in a multi-task environment with multiple projects in cross-functional teams. You are willing and able to travel internationally.

Interested? Please apply via email or fax your resume to:

UFA
1016 – 68th Avenue SW
Calgary, AB T2V 4J2
FAX: (403) 258-7630
EMAIL: resumes@ufa.com
www.ufa.net

Thank you for taking the time to find out more about UFA.
(06.20_o7.04)

**********************************************************************************

NATIONAL SALES MANAGER
Kempston is a leading Canadian supplier of Router Bits and Shaper Cutters.

Responsibilities:
• Represent Kempston in sales presentations to a large customer base in North America, travel required.
• Establish US sales networks. Work with existing sales agents in Canada to manage and direct their sales activities.
• Budget sales by customer and SKU annually and complete weekly customer activity/ progress reports.
• Organize and attend trade shows.

Qualifications:
• Minimum 4 years experience in tool/hardware.
• US experience is necessary.
• Demonstrated ability and drive to grow sales in the Power Tool Accessory market.
• Excellent communication (written and oral) and presentation skills.
• Computer-literate; Excel, Word, Outlook and PowerPoint.
Email resumes to sales@kempston.ca.
(06/06.20/06)
**********************************************************************************
POSITION WANTED

RETAIL SALES REP/MERCHANDISER FT/PT

Looking for employment in Kelowna/OK Valley and/or West Kootenays BC. 18 years experience in Power Tool and Accessory sales calling on Nationals, Chains, Box Stores and Independents. Skills: Product Knowledge, Quality/Customer Focus, Organization, Client Relationships, Promotions, Reporting, Attention to Detail, Territory Management, Competetive Analysis. Let’s talk! 250 808-8170 shortymale@hotmail.com
(06.13_27)

**********************************************************************************

SERVICES OFFERED  

RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America’s leading manufacturers, managing their lines for Canada’s top hardware retailers, big boxes and mass merchandisers.

Contact Dave Leslie at 905-702-9443, to find out how Noral can boost your sales in Canada. http://www.noralmarketing.com
(01/05)


**********************************************************************************

 

 MARKETPLACE

 

Manchester Tank
NORTH AMERICA’S “PREMIER MANUFACTURER”

of Propane Cylinders

NOW available in Canada

 

(5 lb. through 420 lb.
propane cylinders available)

. Recognized Market Leader .
. Unsurpassed Quality .
. Reliable Delivery .
. Outstanding Customer Service .

Contact us today for more Information
www.Mantank.com


**********************************************************************************
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 $2.60 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR
EMAIL: isabel@hardlines.ca

Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2005 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Beverly Allen, Director of Sales & Marketing: bev@hardlines.ca
Isabel Bisong, Circulation Manager: isabel@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!
______________________________________________
Subscription: $241 (Canadian subscribers add $16.87 GST = $257.87 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $38 (Canadian subscribers add $2.66 GST = $40.66). Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to Hardlines/McLarneyCom.