Feb. 28, 2005

John Caulfield, Contributing Editor

vol. xi, #9, February 28, 2005

IN THIS ISSUE:
• CanWel seeks strategy for Sodisco banners
• Home Depot, Lowe’s post record results
• Hardlines celebrates 10^th anniversary with killer Conference line-up
• New hardware show gets off to slow start
• TruServ CEO: consumers are fickle
• Is Rona eyeing the U.S.?
* * * * * *

“To me, there’s no greater act of courage than being the one who kisses first.”
— Janeane Garofalo (American comedian)

“JURY IS OUT” ON FUTURE OF NEW HARDWARE SHOW

TORONTO — Despite offering a forum for a number of new and innovative products, the first edition of a newly re-created hardware show for Canada, called H²X, received attendance from buyers that disappointed many exhibitors.As is so often the case at trade shows, the exhibitors most likely to get any interest from buyers were brand new, smaller companies with new products to offer. However, for most exhibitors Hardlines spoke with, not only were purchases few and far between, but so were the buyers themselves.Show organizers admitted disappointment, as well. Roland Bleinroth, president of Messe Frankfurt North America, which owns and manages the show, says frankly, it “didn’t meet expectations,” either in terms of exhibitors or attendance. “The show overall was much smaller than we had hoped it would be, especially on the hardware side.”

H²X was held in conjunction with a trade show for paint and decorating retailers called D²X. Of 154 exhibitors, about half were listed within the hardware side of the show. And of that number, almost 20% were Asian, or Asian-based, importers.

The show struggled with some logistics problems, as well. Two keynote speakers were lined up for consecutive mornings, Rona CEO Robert Dutton on Monday, and Bill Morrison, head of TruServ Canada, on Tuesday. However, times were posted as 8:30 a.m. in some materials, but 9:00 a.m. on the show’s website. As a result, many missed both speakers, and those who came in time were shut out of the show itself — and the coffee — for another hour, until the show opened at 10 a.m.

The show suffered another blow when Dutton was a no-show, replaced at the last minute by his executive vice-president traditional stores, Claude Bernier. The handful of people who were present heard an update on Rona’ expansion plans, underscored with a strong recruitment message for dealers. And only about two dozen people were fortunate enough to be on hand the next morning, when TruServ’s Morrison shared some thought-provoking comments on the changing customer, and retail’s need to adapt to those changes (see story in this issue).

Bleinroth of Messe Frankfurt says he is talking with a number of groups within the industry to determine the fate of the show, including evaluating whether Canada can sustain a national show at all. “But a number of very important players said ‘yes, we need a show’,” he says.

With that in mind, Messe Frankfurt is evaluating a range of options, which may include anything from a change of timing to another venue — or even a move to another city. Bleinroth is confident, however, that some kind of event for the industry will take place, “but what that will be — the jury is still out.”

CANWEL FOCUSES SODISCO-HOWDEN ON SUPPLYING INDEPENDENTS

VANCOUVER — CanWel Building Materials is reinforcing its commitment to consolidate — and execute — at the distribution level in Canada. Its acquisition of hardware wholesaler Sodisco-Howden Group, which closed at the end of 2004, effectively turns CanWel, itself one of Canada’s major distributors of lumber and building materials, into a more than $1 billion company.Because Sodisco-Howden also supports two major retail banners, Ace and Pro, it is in a position effectively to compete with CanWel’s own retail customers, namely the likes of Home Hardware Stores Ltd. and Rona inc. As a result, CanWel is winding down Sodisco-Howden’s retail function, to zero in on the company’s core strengths as a wholesale distributor.So what becomes of the Ace and Pro banners, both of which are licensed by Sodisco-Howden in Canada? CanWel will remain a partner with Ace, but strictly at the wholesale level, says CanWel chairman Amar Doman, rather than developing bannered points of sale. “Ace wants to sell product,” he says.

“Ace has great value to our customers from a procurement point of view,” adds Tom Donaldson, president and CEO of CanWel. “But it’s not a banner strategy.”

As such, the dealer development function within Sodisco-Howden is being wound down, with the sole emphasis on increasing product sales. “Our job is not to convert a dealer from one banner to another,” says Donaldson. Instead, Sodisco-Howden will target independent dealers, especially in the LBM buying groups, for hardware sales.

“The old Sodisco-Howden was really focused on Pro and Ace. We’re really focused on the independents,” Doman says. “Banners aren’t our business.”

He says the company is currently working on strategies for Pro and Ace, “to see what makes sense to the Canadian market,” and expects said strategies to materialize before year’s end. However, he would not provide further details.

Will the separation of the two businesses be a tangible one in the eyes of the industry and — more importantly — CanWel customers? Both Doman and Donaldson are confident it will be. The two businesses will not be combined in any way. Sales forces, distribution centres and product lines will remain distinct. CanWel’s focus for its new business unit is managing inventory, increasing fill rates, developing new products, and lowering costs for its customers through better procurement strategies.

So far, the Sodisco-Howden acquisition has had no appreciable impact on CanWel’s relationship with its existing customers. “We never take anybody’s business for granted,” Donaldson says. “But we haven’t seen any dramatic shifts in business in the last five months.”

HOME DEPOT, LOWE’S REPORT STRONG GAINS FOR ’04

MOORESVILLE, N.C. & ATLANTA — Blame Canada. That, apparently, is one of the reasons why some analysts and investors greeted Home Depot’s release of its financial data for the fourth quarter and fiscal year of 2004 lukewarmly. Home Depot stated that 29 of the 175 stores that it plans to open in 2005 will be in Canada and Mexico, and that it is preparing to open its first store in China. Some analysts inferred from that news that Home Depot is looking outside of the U.S. for growth and may be reaching a saturation point in its domestic store expansion. The retailer also reported quarterly earnings per share gains of 9.5% that were its lowest in two years and significantly below analysts’ expectations.Home Depot’s performance, as always, is gauged against its chief rival, Lowe’s, which enjoyed another banner year (see chart), and whose earnings per share for the quarter and the year exceeded analysts’ predictions. It’s worth noting, however, that Home Depot’s earnings in 2004, as a percentage of revenue, were almost a percentage point higher than Lowe’s: 6.84% vs. 5.97%.

Officials at Home Depot attribute the company’s sales growth, in part, to a 7.3% increase, to $54.89, in its average customer transaction; and to a 27.9% gain in its installed sales business. The retailer also shelled out $3.7 billion in capital expenditures to upgrade its stores and operational systems. Home Depot projects that its sales in 2005 will expand by between 9 and 12% and its earnings per share will increase by between 10 and 14%.

In 2004, Lowe’s completed the rollout of its revamped installed sales program, and continued to expand its special order business. The company spent $400 million on improving and renovating the appearance of its stores. Lowe’s plans to open 150 stores in 2005, and expects its revenue to increase by 17%.

Home Depot	Fiscal 2004	Lowe’s
73,094	Revenue (in $millions)	36,464
12.8	% chg. vs. ’03	18.2
5.4	Same store sales growth (%)	6.6
5,001	Net income (in $millions)	2,176
16.2	% chg. vs. ’03	15.9
1,890	Store count (units)	1,087

TRUSERV CEO: RETAILERS NEED STRATEGY VS. CYNICAL CUSTOMERS

TORONTO — If you’re spending all your time wooing the aging baby boom generation, you may be missing the boat. According to Bill Morrison, president and CEO of TruServ Canada, retailers must pay attention to the “Y Generation,” to young people, and especially to young families. This important target demographic can actually spend many times more than older boomer families.Morrison spoke to a small but rapt audience at last week’s new hardware show, H²X.Kids represent a $60 billion market annually, he went on to say. Decision making within that group comes both from children themselves and from the parents buying for them. So make your stores kid friendly. Offer a “safe haven” that gives enough of a comfort level to parents to enable them to spend time shopping in the store.

Society is spending money more wisely, he noted. He called Canadians “a tough, cynical audience.” As a result, it’s important to have the right strategy to provide the consumer what they are looking for when they do choose your store, “because loyalty is a myth and shoppers are constantly adjusting their shopping patterns.”

Morrison also stressed the importance of keeping the retail concept fresh and updated. “Independents are in the fashion industry. Your store must be fashionable. ‘Think inside the box’,” he urged. Too often, a disconnect exists between what retailers think customers want and what they actually want.

Morrison also touted the importance of putting one’s business on the Internet. “If you’re not net, you’re not real.”

WESTERN RETAILERS “MAKE COMEBACK”

VANCOUVER — Retail sales growth in British Columbia more than doubled in 2004 with a record-breaking $47.1 billion in total sales, according to a report released last week by Statistics Canada.“Without question, British Columbia was Canada’s comeback kid in terms of retail sales last year,” said Kevin Evans, Western Canada vice-president for Retail Council of Canada. “Overall, B.C. exceeded our expectations, reflecting a strong economy and solid consumer confidence.”Total retail sales in B.C. grew by 7% in 2004, compared with 2.6% in 2003, leading the country, along with Alberta.

December holiday spending in British Columbia was up 8.6% over December of last year. The province was one of only two that saw an increase in sales from November to December, at 0.7%.

“Across Canada, December sales increases were lower than anticipated, with much of that due to a decline in car sales,” Evans said. “When you remove that category, December holiday sales in B.C. were actually up 29.9% over November.”

HURRICANE DAMAGE DROVE BUILDING PRODUCT SALES IN ’04

TAMPA, Fla. — Sales of home improvement-related products rose to a record $271.4 billion in 2004, a 13% increase over the previous year, according to estimates by the Home Improvement Research Institute here. Damages caused by four consecutive hurricanes that hit the southern U.S. in the last six weeks of the year drove those sales, in large measure, by creating demand that led to fourth-quarter shortages in building products such as roofing and lumber.Indeed, HIRI estimates that the lumber and building materials category saw its sales rise 19% last year. Yet, last June, the Institute said it expected that increase to be only 10% for the year. HIRI projects that hurricane-related repairs will amount to $2.5 billion in product spending in 2004, and another $1.5 billion in 2005.

Another key factor in product sales has been the ongoing pace of new home construction, although HIRI expects that to slow a bit in the next few years. In fact, the Institute expects the sales growth rate for home improvement products to average 4% annually through to 2009. In 2005, it projects that sales will expand 3.8%.

HIRI projection of LBM market in U.S.
2005	$280.9 billion
2006	$288.1 billion
2007	$299.2 billion
2008	$313.4 billion
2009	$329.1 billion

HARDLINES CELEBRATES 10^TH YEAR WITH KILLER CONFERENCE LINEUP

WORLD HEADQUARTERS, TORONTO — Since starting out in a basement office in January 1995, Hardlines has grown from a small industry newsletter to … well, a little bigger industry newsletter. But man, are we proud to still be here, providing our loyal readers with the latest industry news and information every single week.To celebrate our 10^th anniversary, we are planning all kinds of amazing events. These include our Meet the Buyers Seminars (Toronto, April 26 and Montreal, April 28), and our International Conference program in Las Vegas (May 17 & 18).

But best of all, we are lining up the most amazing Hardlines Conference ever. Once again, you can count on a gathering of top retail experts from around the world to join us September 12-13, 2005. Some of the speakers this year:

John Costello, executive vice-president of merchandising and marketing, Home Depot in Atlanta
Bill Morrison, president and CEO of TruServ Canada
Mark Foote, president of Canadian Tire Retail
Al Meyers, senior vice-president with Retail Forward
Albert Plant, retail consultant and former RBC Royal Bank executive

With more surprises to be announced!

Be sure and set aside Sept. 12-13, 2005 right now. We want you to be part of our birthday bash!

COMPANIES IN THE NEWS

TORONTO — Rona in the U.S.? Maybe. Or maybe not. Rona evp Claude Bernier, speaking at last week’s inaugural H²X hardware show in Toronto, suggested such a move might enable the company to sustain growth. But he wouldn’t identify if or when Canada’s second-largest retail home improvement group might make the move. In the meantime, they’re keeping busy adding dealers in Canada, and especially in the West. Since mid-December, three retailers in British Columbia, two in Alberta, four in Ontario and four in Quebec have joined Rona’s ranks, adding another $35 million to the company’s annual retail sales.CHICAGO — Despite flat sales, the True Value Company reported 2004 net margin of $43.2 million, up 104% from 2003 earnings of $21.2 million. The full-year impact of the refinancing that took place in August 2003 was considered the primary driver of the earnings improvement. The co-op also reported 2004 revenue of $2.0239 billion, flat with 2003 revenue of $2.0243 billion. True Value reported net margin of $10.8 million for the quarter ended December 31, 2004, up 5.9% compared to net margin of $10.2 million for the same period a year ago. The co-op also reported $474.7 million in revenue for the fourth quarter, down 8.7% from $520.2 million for the same period a year ago.BOUCHERVILLE, Que. – In the fourth quarter of 2004, Rona inc. posted net earnings of $29.8 million, up 41.0% over the same period last year. Consolidated net sales for the quarter advanced 18.0% over 2003 to $932.7 million. Net earnings for fiscal 2004 were $138.2 million, up 77.3%. Consolidated sales for the year (which comprises sales generated by its distribution centres and corporate stores, as well as the company’s share of franchised store sales and royalties from franchised sales) reached $3.68 billion, a gain of 35.8% over last year.

TAYLOR, Mich. — Masco Corp., one of the largest suppliers of home improvement products in North America, reported net sales from continuing operations of $12.1 billion for the year ended Dec. 31, 2004. That represented a 14.2% increase over 2003 revenue. The company’s net income in 2004 rose 10.8% to $893 million. In the fourth quarter, Masco’s earnings increase 14% to $105 million on sales $3.03 billion that grew 10% over the same period a year ago. The company said its growth was impeded last year because of rising commodities prices, increased energy and freight costs, as well as costs associated with Sarbanes Oxley legislation, which has forced companies to report certain assets differently on their balance sheets.RISHON LEZION, Israel — Home Center, Israel’s largest home improvement dealer, is investigating the purchase of the country’s number-two chain, Ace Hardware. According to the Israeli newspaper Haaretz, the 40-unit Home Center, based here, last year generated estimated sales of 1 billion in New Israeli Shekels (about US$230 million). Ace, which operates 25 homes centers and 12 auto parts stores in Israel, did NIS570 million (US$131 million). Any merger would have to be approved by Israel’s Antitrust Authority, and that approval is problematic, given the dearth of other large competitors in this country’s market.

PEOPLE ON THE MOVE

BURNABY, B.C. — Bill Kushlick has been appointed president and COO of Taiga Forest Products Ltd., effective March 1, 2005. He will also be appointed to the company’s board of directors. Kushlick comes to Taiga with more than 35 years of sales and marketing, distribution channel, and business development experience in North America and Internationally. He was most recently president of Weiser Inc., a Tucson, Ariz.-based lock maker, before its takeover by Black & Decker. Taiga is a wholesale distributor of building products with 2004 sales of nearly $1.1 billion.At Liquidation World Inc., Jonathan Hill has assumed the position of president and CEO and Darren Gillespie has been appointed president of Liquidation World’s subsidiary, Liquidation World U.S.A. Inc., as well as senior executive vice-president, Liquidation World Inc. The changes are intended to allow the company to coordinate more effectively the implementation of its strategic plans and improve management focus and accountability in both the U.S. and Canada. The company offers retail liquidation of consumer merchandise through 104 outlets across North America, as well as auctions and store-closure management.Abbas Khan has been promoted at OSRAM Sylvania to the position of vice-president of sales and marketing for retail. He was formerly general manager of OSRAM Sylvania’s lighting services division.

At Home Depot, Tom Ridge, former Secretary of the Department of Homeland Security and former Governor of Pennsylvania, has been appointed to the company’s board of directors.

Greg Paliouras has been appointed publisher of Hardware and Home Centre magazine. Prior to joining Centre, Paliouras was associate publisher of Canadian Architect magazine. His background includes extensive sales and marketing experience, as well as a strong knowledge of the construction industry. (416-510-6808)

OVERHEARD…

“Service is a neat notion. We as Canadians play lip service to it, then go shop Wal-Mart.” — Bill Morrison, president and CEO of TruServ Canada, sharing his marvellous insights into retailing and the customer experience, but alas, to only a very small group at last week’s H²X hardware show in Toronto.

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Feb. 21, 2005

John Caulfield, Contributing Editor

vol. xi, #8, February 21, 2005

IN THIS ISSUE:
• Home Depot’s Expo format facing big changes
• CanWel will focus Sodisco-Howden unit on distribution
• U.S. hardware association comes to Canada
• Top buyers will share tips
• Home Depot allies with Hispanics, mature workers
• National brands under siege: a new report
* * * * * *

“Yield thou not to adversity, but press on the more bravely.”
— Virgil

CANWEL’S SODISCO-HOWDEN ACQUISITION TAKES AIM AT INDEPENDENTS

TORONTO — Sodisco-Howden Group was de-listed last Wednesday from the Toronto Stock Exchange. The move was just the latest by its new owners, CanWel Building Materials, to re-position the hardware distribution company’s focus on supplying product. Tom and Amar

Effective today, Sodisco-Howden becomes a wholly owned subsidiary of CanWel, with CanWel’s president Tom Donaldson serving as acting president and CEO. Amar Doman, chairman of CanWel, is also chairman of Sodisco-Howden. (For more executive appointments at Sodisco-Howden, see “People on the move” in this issue—MM)In an exclusive interview with HARDLINES, Doman and Donaldson both stressed that Sodisco-Howden will not be in the retail business. It will not develop either of its existing banners, in favour of the distribution business. “That is our target for Sodisco-Howden Group,” says Donaldson. “We are serving the independent dealer.”

There will no longer be any dealer development in Sodisco-Howden, he continues. “Our job is not to convert a dealer from one banner to another.”

“Banners aren’t our business,” says Doman. He wants to stress the distinction, because it’s an important one for CanWel’s strategy. Growing its retail banner programs has historically put Sodisco-Howden in direct competition with other retail groups that are existing customers for CanWel’s building materials distribution business. Sodisco-Howden currently has two active banners, both licensed from groups in the U.S.: Ace and Pro. But by staying true to its wholesale roots, Sodisco-Howden can co-exist with other groups, such as Home Hardware and Rona inc., two of CanWel’s largest customers. “Sodisco-Howden Group is safe waters now,” says Donaldson.

“When it comes to the Sodisco-Howden Group business, that is a rifle shot at the independent,” he adds.

NEW DISPLAY STYLES PLANNED FOR HOME DEPOT’S EXPO

ATLANTA — We recently reported that Home Depot’s plans for its 54-unit Expo Design Centers remain up in the air. HARDLINES has since learned that this division plans to unveil a number of new twists in the spring, and that Expo’s merchandising and design teams continue to work on upgrading the stores’ physical appearance and product mix.Jean Osta, Expo’s public relations manager, confirms that Home Depot wouldn’t open any Expos in 2005. “We’re working with the stores we have this year,” she states. Much of the emphasis of that work is being placed on improving those stores’ back-end systems, reflecting a strategy that has been chain wide.She noted, however, that other changes are afoot. Taylor Hastie, a former Williams-Sonoma and Martha Stewart Home executive, was hired last June as Expo’s director of trends and analysis. He has assembled this division’s first “visual” team, which Osta says is resetting the stores with an eye toward “making them cleaner, overall.”

In April, Expo will introduce the first of four “style initiatives,” vignettes that will group different home décor products to present appealing room settings. The first will be called “Mediterranean,” which will reflect ideas Osta said Hastie gleaned from recent travels throughout Europe. Subsequent vignettes, which will rolled out in Expo’s stores over the next several months, will be called “Asian Fusion,” “Modern Elegance,” and “Scandinavian Country.”

Hastie’s team is also working with Bruce Nelson, the former Marshall Field executive whom Expo hired as its vp-merchandising last May, to align the stores’ product assortments closer to its target customers’ tastes and pocket books. Expo president Annette Verschuren had stated in a previous interview her displeasure with the way the product mix at Expo was being positioned with its target customer.

Osta says Home Depot hasn’t shut the door to the possibility that, if these changes produce the intended results, it might consider opening new Expos at some future date. However, Osta was careful to point out that expansion currently is not on the front burner.

U.S. ASSOCIATION ESTABLISHES CANADIAN ARM

INDIANAPOLIS, Ind. — The National Retail Hardware Association has renamed itself set its sights on Canada. Now the North American Retail Hardware Association, it’s offering Canadian home improvement retailers membership in the expanded organization through a newly formed operation, NRHA Canada.Upon hearing that the Canadian Retail Hardware went bust just before Christmas, just short of hitting a century of service, the NRHA quickly determined that the Canadian dealers could benefit from its programs. John Hammond, managing director of the NRHA, and publisher of the association’s trade magazine, Do-It-Yourself Retailing, hired Scott Hoy, himself the former publisher of a trade magazine in Canada, Hardware and Home Centre.Renaming itself the North American Retail Hardware Association but keeping the same acronym — NRHA — the association is offering Canadian home improvement retailers membership in the expanded organization through its newly formed Canadian operation, NRHA Canada, with Hoy at the helm.

“Following the announcement that CRHA was closing, we felt retailers in Canada needed representation, as well as the services we provide,” said the NRHA’s Hammond in a prepared release. “NRHA bylaws allowed us to expand our organization to provide these services and create an entity to meet the needs of those retailers.”

Membership costs dealers $250 annually, and that price includes full access to the NRHA’s “E-Access Education and Training” website, which offers an online dossier of NRHA education and training tools, with training courses for staff.

Now these education and business management tools are available to Canadian dealers. “We are delighted to have a man of Scott’s caliber bringing association programs and services like this online education and training package to Canadian retailers,” said Hammond.

Hoy will also be calling on the major retail and buying groups in Canada offering electronic membership packages. One such package has been developed already for Home Hardware Stores Ltd., headquartered in St. Jacobs, Ont. Included in the Home Hardware Education and Training website are the NRHA Advanced Course in Hardware Retailing and the Building Materials Product Knowledge employee training courses. Both have been tailored to the Canadian market.

In addition to his association responsibilities, Hoy now represents Do-It-Yourself Retailing magazine in Canada, selling trade advertising in Canada.

TIM-BR-MARTS ANTICIPATES FURTHER CONSOLIDATION

MISSISSAUGA, Ont. — The merger of two buying groups, Calgary based Tim-BR-Marts Ltd. and Tim-BR-Mart Ontario, may have created combined purchasing power in excess of $1 billion — but that’s just the beginning, says one of the combined group’s executives.“Their dealers are very similar to our dealers,” says Don Nash, executive vice-president of Tim-BR-Marts. “They are very excited about this merger, and they’re waiting to see what the next step is going to be. There’s lots of momentum there.”Nash believes this move will create pressure within the industry to see more consolidation, even within the next 12 months. “I think this is going to be a watershed year,” Nash says.

“We’re growing and we think there’s an opportunity for others to look our way.”

ASIAN SOURCING TURNS CUSTOMERS INTO COMPETITORS

WORLD HEADQUARTERS, TORONTO — The Far East has long been a key source of supply for manufacturers seeking low-cost sources of supply. But guess what, the very retail customers these manufacturers sell to are now establishing offices of their own there.According to a new report, “The End of Brands,” which appears in the latest edition of HARDLINES Quarterly Report, vendors will face their biggest competitive challenge in coming years from the very customers they sell to.Today, almost every major hardlines retailer in North America has a beach head in the Orient. Hong Kong, Taipei, and now Shanghai are home to buying offices for Home Depot, Ace Hardware, Canadian Tire. Last year alone, Canadian Tire and Ace Hardware opened offices in Hong Kong, Home Depot added offices in Shanghai, while giant hardware wholesaler Orgill opened its first there. And of course, Wal-Mart has been in the Orient with numerous offices for years, and accounted for a whopping $15 billion in imports from the Far East in 2004 alone.

Now retailers such as Rona, Canadian Tire and Home Hardware are investing heavily in their own brands. Sometimes it’s with the help of existing manufacturers, but more and more, they’re doing the sourcing themselves. The result has been massive consolidation among vendors, as brand names get bought up by an ever-shrinking handful of major companies, such as Newell Rubbermaid and Black & Decker.

According to the HQR study, vendors can defend the value proposition of their own national brands, but this will require working more closely than ever with the companies they sell to. (“The End of Brands” appears in the latest issue of HARDLINES Quarterly Report, our newsletter of research and analysis on the retail home improvement industry. For more information, call me at 416-489-3396, or click here .—Michael)

HOME DEPOT PARTNERS WITH HISPANICS, SENIORS’ GROUPS

ATLANTA & TORONTO — Home Depot has announced hiring partnerships on both sides of the border. In the U.S., the giant retailer has teamed with four national Hispanic groups, the ASPIRA Association, Hispanic Association of Colleges and Universities (HACU), National Council of La Raza (NCLR), and SER — Jobs for Progress National. Home Depot will work with these organizations and their strong network of local offices and contacts to help recruit candidates for full-time and part-time positions across the country.At the same time, the Canadian division has formed a hiring partnership with an association representing people over 50. Home Depot Canada will tap into the mature workforce represented by the Canadian Association of Retired Persons (CARP) to provide a pool of experienced workers. The move is expected to help Home Depot expand its workforce, while providing an experienced and stable pool of employees.The Hispanic community will constitute an estimated 25% of the national workforce by 2050, says a release from Home Depot. This community is the fastest-growing consumer segment in the nation and already represents 14% of the U.S. population. By 2008, Hispanics will have an estimated annual purchasing power of approximately US$1 trillion, or 9.6% of the U.S. GDP.

ACE HARDWARE’S PROFITS HIT RECORD LEVELS IN 2004

OAK BROOK, Ill. — Ace Hardware Corp. ended its 80^th year of business with record profits for the second year running. Net earnings in 2004 for the dealer owned co-op reached US$101.9 million, up 1.0% over 2003. Consolidated wholesale sales hit US$3.289 billion, up by US$129.4 million, or 4.1%, from the previous year. Excluding the impact of the 53^rd week in 2003, 2004 sales increased 5.2%.Dealers were rewarded at year end with a return totalling US$174.5 million. The 2004 rebate included US$100.3 million in patronage dividends and US$60.1 million in upfront dividends. For the first time, Ace will also pay out “rewards” given to retailers who successfully adopted the company’s Vision 21 program. Nearly 1,900 high-performing retailers who achieved all of the program’s brand, merchandising and customer service initiatives receive incentive awards based on 1% of their handled purchases. This year, that rebate totals US$14.1 million.During the year, Ace managed to open 133 new stores. Of those, 75 were branch openings by existing Ace retailers, 39 were conversions from other co-ops, and 19 were opened by new investors. More than 1.6 million square feet of retail space was added in the process. A one-million square-foot distribution center was opened near Sacramento, Calif., double the size of the former facility in the region. The new DC serves about 350 retailers in California and Nevada. And a buying office was opened in Hong Kong, for Ace’s new division, AGD Asia Ltd., to source a wide array of products for Ace retailers around the world.

Ace Hardware Corp. is the largest retailer-owned hardware co-operative in the U.S. Annual retail sales for Ace’s 4,800 hardware and building center dealers worldwide total approximately US$13 billion.

CANADA’S TOP BUYERS TO SHARE TIPS AT HARDLINES SEMINAR

Still trying to get that appointment with Home Depot? Can’t get in the door at Canadian Tire? Take heart. Vendors now have the opportunity to learn how to sell Canada’s top retailers — directly from the buyers themselves.The Fourth Annual HARDLINES Meet the Buyers Seminar is an information-packed morning — this year being held in both Toronto and Montreal. That way, we can ensure representation from the key players in this industry. Be there for selling insights from the buyers themselves!In Toronto, April 26, 2005, meet:

John DeFranco, Merchant for Outdoor & Barbecues, Home Depot;
Bill Wilson, Merchandise Director, TSC Stores Ltd., also representing Mutual Hardware;
Décor Merchant TBA, Canadian Tire Corp.;
Scott Urie, National Merchandise Manager: Craftsman, Home & Electronics, Sears Canada.

In Montreal, April 28, meet:

Normand Dumont, Exec. VP Merchandising, RONA;
Roger Plamondon, Home Depot’s Regional Development Director, Eastern Canada.

(Note: *Representatives of each company subject to change)

We’ve kept pricing down for another year: HARDLINES subscribers pay only $179.00 plus taxes. Non-Subscribers pay only $285.00 plus taxes. For more information on these business-building events, contact Isabel Bisong at the World Headquarters: 416-489-3396 or isabel@hardlines.ca

COMPANIES IN THE NEWS

VANCOUVER — West Fraser Timber had fourth-quarter earnings of $41 million on sales of $552 million. Earnings were up, from $34 million, against slightly lower sales of $467 million. For the year, earnings were $212 million on sales of $2.40 billion. This compares to earnings of $43 million on sales of $192 billion in 2003. Lumber EBITDA for the quarter, after accounting for duties, was $55 million or 17% of sales, up from $41 million or 14% of sales in the fourth quarter of 2003.EAU CLAIRE, Wis. — Menards, the third-largest home improvement dealer in North America, says it will relocate a plant that makes store fixtures to Belgrade, Minn. The retailer claims that the state of Wisconsin has refused to issue building permits requested by Menards to consolidate its existing plant at its headquarters complex. Menard’s reportedly found Wisconsin’s Department of Natural Resources difficult to negotiate with. The DNR had refused to grant the permits. DNR spokesperson Dave Weitz said he’s familiar with only one permit Menards requested recently, which involves a warehouse to be built in a wetland.ATMORE, Ala. — Marvin’s Building Materials, one of the 100 largest home improvement dealers in the U.S., has opened its newest store at the site of a former Kmart here. The 35,000-square-foot store, Marvin’s 23^rd, includes an attached garden centre and a drive-through lumberyard. Unlike other lumberyards in the area, the Marvin’s outlet is geared primarily to serve DIYers. Leeds, Ala.-based Marvin’s generated US$100.6 million in sales in 2004.

ATLANTA — Newell Rubbermaid Inc. has entered into an agreement to sell off its Curver business to Jardin International Holding BV. Curver, the company’s European indoor organization and home storage division, contributed approximately $140 million of revenue in 2004. The sale reflects Newell Rubbermaid’s intention to divest itself of non-strategic businesses and concentrate on leveraging brand strength and product innovation in its core portfolio of businesses. The transaction is expected to close in first quarter 2005, subject to regulatory approvals. This transaction will not impact 2004 results.

LONDON, U.K. — In its fourth quarter, Kingfisher plc had a 7.1% sales increase to £1.76 billion, from £1.65 billion in 4Q 2004. Same-store sales were up 0.6%. For the year, sales were up 8.7% to £7.65 billion, up from £7.04 billion, while same-store sales rose by 3.9%.

PEOPLE ON THE MOVE

Denis Lanoë has moved from CanWel Distribution, where he served as general manager for Atlantic Canada, to take over as general manager of Sodisco-Howden Group for Quebec and Atlantic Canada. He will work out of Sodisco-Howden’s Victoriaville offices … Mark Fortin has been appointed director of finance at Sodisco-Howden. He was formerly assistant comptroller … Pierre-Claude Bourke has been named director of HR … They both join Serge Tremblay, recently appointed vice-president of marketing, in Sodisco-Howden’s Montreal offices.At Newell Rubbermaid Inc., Ray Johnson has been promoted to president global manufacturing and supply chain. In this newly created position, Johnson will oversee the continued global implementation of the company’s productivity program, Newell Operational Excellence, as well as manufacturing, purchasing, distribution and transportation … Nathaniel Milburn has been hired as vice-president global licensing, responsible for identifying strategic licensing opportunities for the company’s brands to further develop the company’s pipeline of innovative new products. Both men report to Joe Galli, CEO of Newell Rubbermaid.

U.S. HOUSING STARTS STAY SURPRISINGLY ROBUST

WASHINGTON — The housing industry in the United States continues to churn out new homes at a record pace. The U.S. Commerce Department reported that housing starts in January were at their highest estimated annualized rate in 21 years. The seasonally adjusted rate rose 11.6% over January 2004 to 2,159,000 starts. Single-family start jumped 12.5% to 1,760,000 units. Building permits, a harbinger of future construction activity, grew by 6.8% to 2,105,000.

MARKET INDICATORS

The composite price index for non-residential building construction reached 130.1 in the fourth quarter, up 1.3% from the third quarter and 8.6% higher compared with the fourth quarter of 2003. This year-to-year percentage increase was mainly due to higher prices for construction materials and was the highest measured since the 10.2% advance in the second quarter of 1982.

REGIONAL SALES REPRESENTATIVE

We are a leader in the manufacturing, supply and distribution of brand name hardware & tools in the Canadian marketplace. We require a dynamic sales professional to join our team.

If you are aspiring to work for an industry leader and to take your career to the next level you are invited to submit your resume in confidence to: confident@allstream.net
(2.14.21.28/05)

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

SERVICES OFFERED

LINES AVAILABLE; SEALANTS AND ADHESIVES

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

WHETHER OR NOT IT GETS PAINFUL IS UP TO YOU.

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

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

NORTH AMERICA’S “PREMIER MANUFACTURER”
of Propane Cylinders

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(5 lb. through 420 lb.
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TO PLACE YOUR AD, CALL ISABEL BISONG AT 416-489-3396 OR EMAIL: isabel@hardlines.ca

Feb. 14, 2005

John Caulfield, Contributing Editor

vol. xi, #7, February 14, 2005

IN THIS ISSUE:
• Home improvement survival guide
• Canadian Tire posts strong results
• Home Hardware unveils expansion plans
• Regional shows offer deals
• Rona opens another big box
• True Value Co. strengthens Asian connection
• Wal-Mart to close unionized store

* * * * * *

“Love does not consist in gazing at each other but in looking outward together in the same direction.”
— Antoine de Saint Exupéry (pilot, poet and author, 1900-1944)

HOME HARDWARE ANNOUNCES AGGRESSIVE GROWTH PLANS

St. Jacobs, Ont. — As one of Canada’s three largest retail home improvement groups, (with Rona inc., it vies for number-two spot after Home Depot Canada), Home Hardware Stores Ltd. has historically been content to also be the quietest. But as the war for consumer awareness gets waged more and more in the media, the dealer-owned co-op has announced expansion plans of its own for the year ahead.With more than 1,000 locations, Home has revealed that retail sales from those stores reached $4.2 billion last year. With $77 million earmarked for growth, it’s got plans to expand its retail network, distribution system and manufacturing facilities. Thirteen new stores are expected to open, while expansion plans are under way for 55 existing dealer locations. Growth is expected across all four retail banners — Home Hardware, Home Building Centre, Home Hardware Building Centre and Home Furniture — in each region across Canada.”Home Hardware is committed to ensuring its dealers maintain their strong position in the Canadian retail landscape,” says Paul Straus, vice-president and CEO of Home Hardware in a prepared statement. “Our entire organization is dedicated to helping our dealers create stronger businesses, and ensuring that we have state-of-the-art systems, services and facilities to back them up.”

Growth plans also extend to Home’s distribution centers in Ontario and Alberta and its paint manufacturing facility in nearby Burford, Ont. A $10.1 million expansion at its Wetaskiwin, Alta., distribution centre is under way and will be completed over the next two years. The project will add 212,000 sq.ft., bringing the facility to more than 750,000 sq.ft.. The facility services 309 stores throughout western Canada.

A $16 million expansion project is currently in progress at the company’s St. Jacobs, Ont., distribution centre and corporate office. That project, which is scheduled for completion in 2005, will add 360,000 sq.ft., bringing the facility to 1.5 million sq.ft.. This distribution centre supplies 523 stores throughout central Ontario and western Quebec.

The company recently completed a $4.2 million expansion project at its Debert, N.S., distribution centre. The 409,000 square foot facility supplies 180 stores in five provinces in eastern Canada.

Home’s Burford, Ont., paint manufacturing facility, which produces the company’s private label Beauti-Tone paint and related products, will also undergo an expansion in 2005. The $2 million project will add 15,000 sq.ft. of research and development, production and storage space to accommodate the introduction of a new paint production line.

CANADIAN TIRE POSTS STRONG YEAR-END

TORONTO — Canadian Tire Corp., Canada’s largest retailer of hard goods, enjoyed strong profits in both its fourth quarter and year end. Quarterly net earnings increased 16.6% to $100.4 million, and sales for the quarter were up 6.1% to $2.5 billion.Profits for the year reached $291.5 million, an increase of 20.8% from $241.2 million in 2003, while sales grew to $8.4 billion from $7.9 billion in 2003.Canadian Tire Retail, which consists of 457 Canadian Tire stores, enjoyed a 34.1% increase in pre-tax earnings. Sales also accelerated in the fourth quarter, led by strong holiday sales across the home, leisure and auto categories. Especially strong results were shown by Christmas décor, toys, gift items, tools, car care and car accessories. Fourth-quarter retail sales reached $1.93 billion, a 3.7% increase compared to $1.86 billion for the same period last year. For the year, sales for the division hit $6.52 billion, up 4.4% from $6.25 billion a year earlier.

Same-store sales grew by 1.1% for the quarter and by 1.8% for the year.

Canadian Tire’s 2004 fiscal year had one less week than 2003. Therefore, calculating their results on a more comparable basis of a 13-week quarter and 52-week year, Canadian Tire Retail’s retail sales grew by 9.3% for the quarter and 6.0% for the year.

On the same basis, same-store sales rose 6.5% for the quarter and 3.4% for the year.

During the year, Canadian Tire expanded its Concept 20/20 store format, with a total of 19 new and six retrofitted 20/20 stores conforming to the new format. Based on the success of 20/20, Canadian Tire plans to make 19 of its 20 store openings planned for 2005 under the 20/20 format. Another 15 existing stores will be retrofitted in 2005 to the Concept 20/20 format.

REGIONAL SHOWS REMAIN STRONG

WINNIPEG & LONDON, Ont. — While national shows lose traction both here and abroad, regional shows aimed at LBM dealers remain healthy. Two shows held recently, the WRLA Prairie Showcase and the LBMAO Winter Buying Show, both enjoyed strong attendance and a considerable level of purchases. The WRLA’s show, held in Saskatoon, featured 214 exhibiting companies in 522 booth spaces — its biggest and most successful yet, reports Gary Hamilton, executive director of the WRLA. These numbers represent 36 new exhibitors and 46 additional booth spaces for 2005 — attracting more than 1,000 dealers. Even the BSDA of B.C.’s show, held January 7-8, managed to draw 152 dealers and staff, despite snow storms that closed highways and airports in the province’s lower mainland. “We were quite busy,” says George Tracy, president of the BSDA. “The discouraging part was the weather, but there’s nothing you can do about that.”Nonetheless, the regional shows face challenges of their own, and they’re trying to learn from the shows that have not survived. Despite their successes, none of these events offers the kind of sheer traffic that was once the trademark of Canada’s erstwhile national show, the Canadian Hardware and Building Materials Show. However, they are still buying shows, as dealers come in search of show specials, as well as the chance to talk face-to-face with some key suppliers. That’s something CHS lost, and attendance declined over the past decade, causing the demise not only of the show itself, but the Canadian Retail Hardware Association, which owned the show. (That show has been replaced by a new one, H²X, which will be held in Toronto February 20-22.) A hardware show launched last year in Chicago by the American Hardware Manufacturers Association closed its doors after only one disastrous year.Don Sherwood, head of dealer association that mounts the Atlantic Building Supply Show in Moncton, being held this year March 17-19, watches the performance of the shows held by his sister associations with keen interest. Even though attendance for other shows remains strong (poor weather notwithstanding), he knows the danger of resting on one’s laurels — and the importance of maintaining a buying environment. “It’s important that the deals stay in the show,” he says.

He also knows the danger of his dealer base eroding. “If any key exhibitors were to switch banners,” he says, “it could have a serious impact, not just on the show, but the association itself.”

Other attempts to fine tune a show can also be fraught with peril. This year, his show is being moved to being on a Thursday. “We’re on the bubble for the change of days,” he notes. “For example, the dealers from Newfoundland think it’s wonderful, because they can be on a plane back home Saturday afternoon. But there are others who don’t like it. We’re trying to find a common ground for everyone.”

WAL-MART TO CLOSE UNIONIZED STORE

JONQUIERE, Que. — Wal-Mart Canada will close a store in Canada that has been successfully organized by the union. According to Wal-Mart Canada, the store was not profitable, and the expectation of additional costs to accommodate the unionized workers prevents the store from being viable, Wal-Mart says. The United Food and Commercial Workers union intends to file charges of unfair labour practices; the store will be closed in the spring.Another store, in St-Hyacinthe, Que., was certified a couple of weeks ago, while a Labour Board decision on behalf of workers at a Wal-Mart store in Weyburn, Sask., is currently on hold as Wal-Mart appeals that decision.According Kevin Groh, a spokesperson for Wal-Mart Canada, the announcement of the Jonquiere store’s lack of profitability was an intentional head’s up to the union and the Quebec Labour Relations Board. “That was our sense,” says Groh. He would not comment, however, on how many other Wal-Mart stores in Canada might also be unprofitable.

Wal-Mart opened about 30 stores in Canada in 2004, and a similar number of openings are planned for 2005.

SEARS LAUNCHES NEW ‘ESSENTIAL’ FORMAT

HOFFMAN ESTATES, Ill. — In its first major move since agreeing to merge with Kmart, Sears, Roebuck & Co. plans to launch a new store format, called Sears Essentials, that company officials say will leverage the merchandising strengths of both retail giants.Sears has identified 25 locations from the 50 Kmarts and six Wal-Marts it acquired for $575.9 million last fall to be converted by this spring to the Sears Essentials format. Six of those stores are in California, five in Florida, three in Illinois, two each in New Jersey and Maryland, and one each in Arizona, Kentucky, Michigan, New Hampshire, Pennsylvania, Tennessee and Virginia.Alan Lacy, Sears’ chairman and CEO, said Sears Essentials represents the first foray into what he characterizes as “the most aggressive growth initiative in the company’s history.”

These mid-size, off-mall stores will range in size from 80,000 to 100,000 sq.ft. They’ll feature many of the product assortments found in the larger Sears Grand format — appliances, lawn and garden, tools, electronics, apparel, and home fashions — and Sears’ better-known brands such as Kenmore, Craftsman and Apostrophe. The stores, to be laid out racetrack style, will also feature those products that are considered Kmart’s strengths, such as pantry, health and beauty, household goods, and pharmacy.

“Sears Essentials will be a one-stop shopping destination for home and family needs, for everything from back-to-school, backyard living and birthdays to appliances, apparel and soft drink,” is how the company describes the concept in a prepared statement. News reports add that the stores will also have automotive services.

TRUE VALUE PLANS MORE DIRECT SOURCING, PRIVATE LABEL

CHICAGO — With a new buying team in place, the True Value Company is placing more emphasis than ever on direct sourcing from Asian suppliers. In fact, Jim Richardson, vice-president of global sourcing, got back recently from an extended trip to China with four of his global sourcing merchants.The dealer-owned co-op’s current involvement in the Far East is a portent of an even greater connection to come; it’s currently setting up offices of its own there. In fact, one location has been confirmed for Hong Kong, while another office will be set up eventually in Shanghai.However, True Value’s buyers are going right into Chinese factories now. “It’s got legs already,” says Steve Mahurin, senior vice-president and chief merchandising officer, of the Asian connection. “But,” he adds, “we’ve got to become a much bigger importer than we are today.”

The ability to spec and source directly will let True Value feed products into its private label programs. But Mahurin says national brands remain important. “I want national brands whenever we can. We want to be a brand name store.” He expects private label products to fill in a category that has no national brand representation, or for filling “a gap in the price point or the assortment.”

SEVEN ISSUES THAT WILL ROCK RETAIL HOME IMPROVEMENT IN 2005

WORLD HEADQUARTERS, TORONTO — Can you spell data synchronization? Shanghai? What about reverse urban migration? Or succession planning? You’d better be able to, because these are the issues to watch in the retail home improvement industry for the year ahead.According to a new report, “Seven Things You Must Know to Survive in 2005,” technology, consolidation and an ever-evolving customer are going to have a dramatic impact on retailers and vendors alike. The report appears in the latest issue of Hardlines Quarterly Report.Consolidation: In 1999, Canada’s top four home improvement retailers accounted for almost one-third of the overall industry. By 2003, that figure had grown to almost half. From 1996 to 2000, sales by big boxes grew a staggering 277%. Now this retail sector, represented primarily by just two companies, makes up more than 20% of the industry’s sales.

Blurred channels and changing customers: Retailers are no longer settling for their own little piece of the pie. Companies such as TruServ Canada are moving more strategically into upscale rural markets that are being driven by reverse migration from urban centres. At the same time, Home Depot is looking for ways to enter urban markets more effectively with new store concepts of its own.

Other issues that will challenge this industry in the year — and years — ahead include the rapid rate of change of technology, considerations of ethical sourcing and environmentally sound production practices, and rising opposition to the seemingly unrestrained rate of growth of large-format retailers such as Wal-Mart and Home Depot.

“Seven Things You Must Know to Survive in 2005” appears in the latest issue of our sister publication, Hardlines Quarterly Report. Click here for more info.

COMPANIES IN THE NEWS

HULL, Que. — Rona inc. has opened its 66^th big box store, this one across the river from the nation’s capitol. The 130,000-sq.ft. Rona L’entrepôt, which carries 45,000 SKUs, has been grouped into three distinct areas: a seasonal and gardening zone, a home renovation and decoration zone, and a construction materials and basic products zone. The store also houses a 4,000-sq.ft. greenhouse and 19,150-sq.ft. outdoor garden centre with two covered sections. Martin Lacasse, the dealer-owner and president, is part of a group that owns another L’entrepôt big box in Gatineau, as well as a satellite store in Aylmer, Que., a construction materials division that will support the two L’entrepôt big boxes in the region.BRENTWOOD, Tenn., — Tractor Supply Co, the largest retail farm and ranch store chain in the United States, had net sales for the fourth quarter of $456.0 million, up 17.4% from $388.5 million last year. Same-store sales increased 7.7% during the quarter, compared with a 9.6% increase in the same quarter a year earlier. Gross profit increased 18.6% to $145.4 million and gross margin was 31.9%, compared with 31.5% in 4Q 2003.LONDON, U.K. — The opening of an Ikea store in North London attracted so many people and caused so much pandemonium that the store had to be closed down. It opened at midnight last Thursday on the heels of huge hype in the London area, with promises of big savings during the first day. Besides traffic jams, an estimated 4,000 people lined up to get in. But just half an hour after opening the doors, 20 people had collapsed from heat exhaustion or suffered at least minor injuries, causing doors to be closed and emergency services to be called in. The clamour for a $100 sofa even ended up in one stabbing.

OAK BROOK, Ill. — The global expansion plans of Ace Hardware Corp. got some added muscle with the signing of a new account in Ireland. McMahon’s, a family run chain of building centres that caters mainly to pros, is “very interested in growing its DIY business,” says Rob Collins, Ace’s director, international sales and retail development. McMahon’s is a 200-year-old operation headquartered in Limerick, but its 11 stores are located throughout Ireland and Northern Ireland. Two of them have already been converted to the Ace banner, and more will likely be converted over time. In addition, the retailer wants to add new stores carrying the Ace name.

SAN FRANCISCO — Building Materials Holding Corp., one of North America’s largest pro dealers, last year exceeded $2 billion in sales for the first time in its history. The company reported a 47.7% increase in revenue, to $2.091 billion, for the 12 months ended Dec. 31, 2004. Net income for BMHC rose 171% to $53.9 million.

ST. LOUIS, Mo. — Emerson Storage Solutions, a division of Emerson, has announced it will purchase Do-Able Products Inc., a maker of ready-to-assemble wood and steel home and garage organization and storage products. The acquisition will become part of Emerson’s ClosetMaid division. Terms of the deal weren’t disclosed. Do-Able is based in Chino, Calif., and had sales of 150 million dollars in 2004.

HERNDON, Va. — Lafarge North America, a leading supplier of construction materials in the U.S. and Canada, reported net income from continuing operations in the fourth quarter of $98.7 million, up from $68.2 million.

PERTH, Australia — While net profit declined overall by 2% for giant holding company Wesfarmers, its hardware division, Bunnings, enjoyed an increase in its first six months, as profits were up 11% to AU$230.4 million. Sales were up 7% to AU$2.1 billion. Same-store sales increased 7% during the period.

PEOPLE ON THE MOVE

Michael Gentile has joined Philips Lighting as vice-president, general manager of lighting in Canada. He was formerly at OSRAM Sylvania, most recently as vice-president of sales, responsible for the I/C, retail, automotive and OEM sales organizations. (905-201-4100)

MARKET INDICATORS

Although down from the previous month, housing starts in January were up compared with the same month a year earlier, reports CMHC. The level of starts reached 203,700 seasonally adjusted in January, down from 236,300 in December. The housing market is expected to exceed 215,000 units this year, following a 17-year high of 233,431 units last year. The seasonally adjusted annual rate of urban starts fell 14.9% to 175,300 units seasonally adjusted. Multiple starts fell 21.5% in January to 81,400; single starts dropped 8.1% to 93,900 on a seasonally adjusted annual basis.

NOTED…

The Canadian Hardware and Housewares Manufacturers Association will hold its Maple Leaf Night reception again in Las Vegas during the National Hardware Show: Tuesday, May 17, 2005. For more info, contact Maureen Hizaka at 416-282-0022, ext. 23; or mhizaka@chhma.ca.

REGIONAL SALES REPRESENTATIVE

We are a leader in the manufacturing, supply and distribution of brand name hardware & tools in the Canadian marketplace. We require a dynamic sales professional to join our team.

If you are aspiring to work for an industry leader and to take your career to the next level you are invited to submit your resume in confidence to: confident@allstream.net
(2.14.21.28/05)

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

KEY ACCOUNT MANAGER

The Canadian branch of a leading USA worldwide manufacturer and importer of Hand Tools, Striking Tools, Lawn and Garden Tools, Automotive Tools and Abrasives, with offices all around the world, is expanding the sales team for the province of Ontario.

We are looking for a Key Account Manager. This team player will report directly to the sales management and will represent us to large customers in Ontario. His/her key role will be to; develop and implement sales and marketing strategies to increase our customer base and increase product listings for his/her accounts; provide forecasts to our purchasing team, provide feedback, store shop and competitiveness report to our product development team, budget customers and give weekly calls and project progress report.

Mandatory qualifications and experience:
You must have a minimum of 5 years in key account representation, in the retail hardware industry, with proven track record. Strong analytical skills, highly developed communications and inter-relation skills and excellent in presentations and line review. Experience in merchandising is a must. The candidate must be computer-literate; Excel, Word, Outlook, willing to travel, have a car with valid drivers license.

We thank in advance all candidates and wish to inform that we will contact only the individuals retained for an interview.

Please submit a resume by email, stating qualifications and income expectations to resumes_at_hr@yahoo.ca.
(01.31:02.07.14/05)

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

SERVICES OFFERED

LINES AVAILABLE; SEALANTS AND ADHESIVES

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

WHETHER OR NOT IT GETS PAINFUL IS UP TO YOU.

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

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

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 .

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

Feb. 7, 2005

John Caulfield, Contributing Editor

vol. xi, #6, February 7, 2005

IN THIS ISSUE:
• What future for Expo?
• Bargain Building celebrates anniversary with growth
• Home Depot announces more Canadian openings
• Ace anticipates growth under CanWel deal
• Canadian Tire CEO wins PR award
• Rona rolls out private label tool program
• CHHMA to replace gala

* * * * * *

“Rudeness is the weak man’s imitation of strength.”
— Eric Hoffer (American longshoreman and philosopher, 1902-83)

NEW CANADIAN SHOW SEEKS INDUSTRY COLLABORATION

ATLANTA — The newly reformed trade show for home improvement retailers in Canada is getting closer to its “launch” date under a new name and owner. Now called H²X, it’s being held in conjunction with a show for the paint and décor industry, called D2X, that’s being put on by the Paint and Decorating Retailers Association. The new combined event will be held at the Toronto Congress Centre near Pearson International Airport from February 20-22, 2005. According to Messe Frankfurt, the German trade show organization that owns H²X, 149 exhibitors are registered, many of them displaying under the PDRA’s aegis.In fact, one décor company alone has about 30 booths. James Mumby & Associates will represent 14 companies, including its own Dynamic Paint Products line. Geoff Fleming, Dynamic brand manager, says the company has a lot of new products to showcase, in what it calls its line of “paintware,” accessories and sundries for all aspects of paint preparation and application. “We determined that we were positioned with good quality and a decent price in the Dynamic line, with a lot of innovative products.” The upcoming show will be a good venue for featuring a range of new or recently launched products, he says.Although other exhibitors have had misgivings, resulting in some cancellations, the current number of 149 exhibitors is up from 142 a month ago. Still more are waiting until the last minute, says Daniel MacKinnon, director of North American Trade Shows for Messe Frankfurt, which is based in Atlanta. “We’re feeling really positive,” he notes.

“We would have liked to have more hardware people exhibiting at the show, but we think they’re sitting on the sidelines, taking a ‘wait-and-see’ attitude.” MacKinnon says, admitting he can’t blame their reticence. “I hope they will see a need for this show and take part in 2006. We have to prove ourselves, and we hope that we will.”

Pre-registration has so far reached 723 retail and designer guests. These include contractors and home builders, who have not been excluded from attending. But the show’s change of date (the former Hardware Show always began on the first Sunday of February) has affected other groups, such as the Independent Lumber Dealers Co-operative. The giant buying group typically holds its winter buying meetings at the same time as the show. This year, says ILDC general manager Andrew Battagliotti, the group couldn’t change its dates. Therefore, a formal contingent of Canada’s largest independent retail groups can’t be counted on to attend.

However, the show’s organizers also hope to beef up the event with a full seminar program on February 19, the day before the show opens. In addition, heavyweight breakfast speakers have been lined up. Robert Dutton, president and CEO of Rona inc., will speak on February 21, and Bill Morrison, chief officer of TruServ Canada, will get up on the podium the following morning. There’s been a lot of positive response to the seminars, MacKinnon adds, especially the paint and window seminars.

MacKinnon says Messe Frankfurt is keen to collaborate with other groups, and cites the success of PDRA’s support. “We’re going to sit down with exhibitors and get a round table of the most influential people in the industry and ask them what they want. Do they want us to do this show, do they need this show?” Those are the questions, he says, Messe Frankfurt needs answers to if it’s going to grow the show.

CHHMA FOLDS SHOW GALA, BEEFS UP OWN AGM

SCARBOROUGH — In anticipation of its own upcoming annual general meeting, the annual gala dinner presented by the Canadian Hardware and Housewares Manufacturers Association will not be held this year. Traditionally held during the time of the former Canadian Hardware and Building Materials Show, the event brought together industry leaders while raising money for Easter Seals. Since that show has folded, CHMMA has chosen not to mount another gala during the time of the new show, H²X. Instead, the association will hold a dinner after its own AGM on April 6, 2005. The dinner will feature David Chilton, author of “The Wealthy Barber.”According to Steve Johns, communications manager for CHMMA, a number of other topics will be covered during the day, as well. Donald Drummond, senior economist for TD Bank, will return to offer an overview of economic conditions in the country. Joel Marks, director of merchandising for hardlines at Home Hardware Stores Ltd., will be the featured retail speaker. A series of breakout sessions will address topics ranging from sales and marketing to effective hiring practices.

WHAT’S THE FUTURE FOR HOME DEPOT’S EXPO?

ATLANTA — When Home Depot officials recently gave investors and analysts a sneak peek at the company’s financial targets for 2005, no mention was made of Expo Design Center, the 52-unit home décor chain initiated in 1991, whose future continues to be evaluated by company officials.Information about the Expo stores is still posted on Home Depot’s website, and Expo still has a significant presence in California (where it operates 14 stores), Texas, Illinois and New York (where it has five in each state). But this concept remains in expansion limbo. The Cincinnati Business Courier reported last week that an Expo that was scheduled to open in that market this spring in the suburb of Oakley, Ohio, remains a vacant lot.Nobody from Home Depot or its Expo division was available for comment. However, last October, Verschuren told the Atlanta Journal-Constitution that Home Depot was committed to serving customers whom Expo targets. In addition, elements of Expo have been finding their way into Home Depot’s urban neighborhood stores, a trend that is likely to continue, according to Bob Nardelli, Depot’s chairman and CEO.

During that interview, Verschuren noted that the retailer has been making improvements in Expo’s service levels, primarily by using call centers to track fulfillment of orders. Some stores have experimented with new merchandise assortments that include bedding, mattresses and furniture. The company claims that its Expo division is profitable (although it does not break out sales and operating profits), but it still seems to be retooling this concept’s operations and product selection.

RONA DEVELOPS PRIVATE LABEL POWER TOOL PROGRAM

BOUCHERVILLE, Que. — With input from the buying expertise of buyers from its Réno-Dépôt division, Rona inc. will ramp up its private label offerings in power tools.The first big push takes place this spring, with the introduction of 13 SKUs of power tools, tailored for both trade and DIY customers. The line, bearing the “Rona” name, replaces an existing Rona private label program. “But it wasn’t well-positioned,” says Jean Lamarche, Rona’s merchandise director for hardware, paint and décor, who was part of the Réno-Dépôt buying team when the chain was bought by Rona. “They saw what I had developed for Réno-Dépôt and said, ‘we want that for Rona — get going!” This time, the line is being sourced by Rona directly from the Orient.Rona’s Réno-Dépôt division has its own power-tool line, called McAllister. Originally a brand found at Kingfisher stores in the U.K., it reflects Réno-Dépôt’s connection with its former owners. The brand will continue for now, says Lamarche.

Rona’s mix of private label products was up to about 11% of its inventory in 2004, up from about 9-10% the year before. The company wants to get that level up to 15% within two years.

BARGAIN BUILDING CELEBRATES ANNIVERSARY WITH 20^TH LOCATION

RIVIÈRE-AU-RENARD, Que. — Bargain Building Materials has marked its 20^th year in business with the recruitment of its latest dealer. Marcel Dumaresq, a building center operation in Quebec’s Gaspesie region, becomes the fifth authorized Bargain retailer, under a kind of franchise agreement that gives the dealers a banner and private label merchandise program.Bargain also has a chain of 15 corporately owned stores.The newest dealer, located in Quebec’s Gaspesie region, brings Bargain’s total number of stores under its banner to 20. For Armand Dumaresq, vice-president of Marcel Dumaresq, the attraction to Bargain’s program included the growing regional awareness of the banner, improved purchasing power, and a greater selection of product.

“We … are marketing five lines of products that are in high demand by do-it-yourselfers and contractors: recycled paint and accessories, MDF mouldings, electrical and cordless tools, imported hardware and floor coverings, which include floating floors, wood floors and self-adhesive tiles,” says Dumaresq, in a prepared release.

The family owned, one-store operation is now in its fourth generation.

Bargain has big plans to continue expansion, not just in Québec (under the banner, “Matériaux à bas prix”). It has two stores in Ontario. It added four stores last year in Quebec, and signed its first dealer in Atlantic Canada, in Summerside, P.E.I.

“We hope to add from four to five each year,” says Christian Richer, president of Bargain Building Materials. He adds that growth will focus on Eastern Canada, at least for now. “It’s not time to go west yet,” says Richer.

ACE IN TALKS WITH CANWEL TO GROW CANADIAN PRESENCE

CHICAGO — Representatives from Ace Hardware Corp. have maintained involvement with Sodisco-Howden Group following the Canadian hardware distributor’s sale to CanWel.Rob Collins, director, international sales and retail development for Ace, says the strategic alliance established with Sodisco-Howden to license the Ace name remains in place. He met with executives from Sodisco-Howden in Montreal last week.Sodisco-Howden got the Ace name in Canada when it purchased the operations of Ace Hardware Canada two years ago. There are approximately 230 dealers in Canada flying the Ace banner. About 100 of those are Sodisco-Howden dealers who switched banners after the Ace acquisition. Under a strategy to eliminate some of its own banners, Sodisco-Howden converted a number of its dealers to Ace, reducing the number of its banners from five to just two, Pro and Ace.

Collins says Ace and Sodisco-Howden will work to grow the Ace banner on a couple of fronts. Ace will provide necessary retail programs to support dealer growth, while offering its expertise in merchandising, and its clout in sourcing, especially overseas. “We’re putting the pieces in place for our two organizations to work together,” he adds.

LONDON DIY SHOW GETS SUPPORT FROM NORTH AMERICAN EXPORTERS

LONDON, U.K. — As trade shows in Europe (like the big one, Practical World, in Cologne) shift to every-other-year schedules, the smaller DIY & Garden Show, held in London Jan. 16-18, grew substantially this year, and even added a new section “Totally Tools,” which included power tool giants such as Black & Decker and Ryobi.Among the several hundred exhibitors were more than 34 members of the Worldwide DIY Council, which this year involved 20 members in its own pavilion, plus approximately 14 more who exhibited on their own or with local agents/distributors. In fact, Council members represented almost 10% of the total exhibitors.Pre-registrations for the show were considerably stronger than the year before, especially from other countries, reflecting the fact that this year there is no Cologne Hardware Fair. Traffic at the show remained steady right up to the final day.

Members of the Worldwide DIY Council reported holding interested discussions with potential distributors and agents, from countries that included France, Germany, Ireland, Spain, Sweden, Belgium, Scotland, Greece, Denmark, Wales and Slovenia.

With the dollar at such a low point against the pound and euro, both American and Canadian members found their products very attractively priced for European and U.K. customers.

Next year’s DIY & Garden Show/Totally Tools again will be held at Earl’s Court in London in mid-January. More details can be found at: www.diyandgardenshow.com.

CANADIAN TIRE CEO WINS PR AWARD

TORONTO — Canadian Tire got recognized recently for how well it communicates, both to the community and to its own people. The recognition came in the form of an award to Canadian Tire president and CEO Wayne Sales, who won an award for communications effectiveness.The award recognized Canadian Tire’s — and Sales’ — effectiveness creating and communicating a vision of what the company stands for, not only with the industry, but within the company to its own people.He got high marks for outstanding skills communicating to his team, with initiatives that included “Coffee with the CEO,” ongoing informal meetings with random teams within the CT organization, plus 12-16 “state of the Tire” meetings over the course of a year.

Other considerations were Tire’s charitable and community involvement, such as environmental stewardship and “Foundation for Families.”

Sales’ contract with Canadian Tire was renewed at the end of last year, and extended to June 30, 2007.

COMPANIES IN THE NEWS

TORONTO — Home Depot Canada has informed Hardlines of some of the 19 openings that are scheduled for fiscal 2005. Here are the ones we know about so far: St-Jerome, Que., March; St. John’s, Nfld., April; Toronto (Dufferin & Steeles — and not an urban store), April; Vaudreuil, Que., July; and Spruce Grove, Alta., in July. According to Home Depot, another 14 stores are slated to open in 2005, plus one relocation.BRAMPTON, Ont. — Henkel Canada, Consumer Adhesives will begin downsizing operations following the announcement recently that it will close its 225,000-sq.ft. manufacturing facility here by the end of 2005. The closure comes as a result of a global restructuring program. The Brampton facility manufactures adhesives and sealants primarily under the 128-year-old LePage brand. Its closure will impact approximately 140 employees. However, the company will continue to maintain sales, marketing, regulatory, and distribution offices in Canada. Its production will be integrated within other Henkel facilities. Henkel Canada is part of the Henkel Group, a German-based vendor of home care, personal care, adhesives, sealants and surface treatments with 50,000 employees worldwide, and 2003 sales of 9.4 billion euros.TORONTO — Wal-Mart Canada will start carrying a plant food made from organic waste that has been (ahem) treated by earthworms. TerraCycle Inc. claims to be the first company to make and package a product entirely out of waste, has received its first major retail order from Wal-Mart Canada. TerraCycle’s plant food is produced by feeding organic waste to millions of earthworms, which transform the waste. The worm poop is liquefied and bottled in used soda bottles, many collected by elementary school students across North America.

MISSISSAUGA, Ont. — Fireco, the housewares and accessories supplier, has voluntarily filed for protection under the Companies Creditors Arrangement Act in the Ontario Supreme Court. The move comes on the heels of the loss of the Sobey’s account after 40 years. Under the CCAA protection, the company is attempting to develop a restructuring plan. In the meantime, Fireco reports it will conduct “business as usual” for customers throughout the restructuring, although payments have been frozen to all existing Fireco creditors.

LONDON, U.K. — Kidde, the maker of fire safety products, is being taken over by United Technologies Corp., a U.S. industrial conglomerate. The deal is worth US$2.8 billion, and is expected to close around the end of March 2005. Until then, business will continue as normal, both here and abroad. UTC’s portfolio includes Otis elevators, Carrier HVAC systems and Chubb electronic security.

CLEVELAND — The Sherwin-Williams Co. had consolidated net sales in the fourth quarter of $1.50 billion, up 16.7% from $1.28 billion in the previous year’s fourth quarter. For the year, sales were up 13.1% to $6.11 billion. Net income increased 16.5% in the fourth quarter to $82.5 million. For the year, profits were up 18.4% to $393.3 million, from $332.1 million. The Paint Stores segment had a 4Q net sales increase of 22.8% to $1.02 billion, and 14.6% increase for the year to $3.98 billion.

ATLANTA — Home Depot has signed a deal with the producers of reality shows such as “Survivor” and “The Apprentice” to position the Home Depot name on its programs. Television company Mark Burnett Productions will ensure that Home Depot products and services get integrated into its programs. The terms of the deal, which spans a number of programs over several years, were not disclosed. Among the shows that will be included in the promotion strategy are “The Apprentice III” and a new program, “The Contender.”

BRENTWOOD, Tenn., — Tractor Supply Co., the giant retail farm and ranch chain, had fourth-quarter net sales of $456.0 million, up 17.4% from $388.5 million in the previous year’s fourth quarter. Same-store sales increased 7.7%, up from last year’s 9.6% gain. Gross profit increased 18.6% to $145.4 million, while net income increased 32.0% to $22.3 million. During the fourth quarter, the Company opened 15 new stores and relocated another seven stores compared to two new and six relocated stores in the fourth quarter of 2003.

BENTONVILLE, Ark. — Sales at Wal-Mart grew by 9% in January, but same-store sales were a bit lower than expected, due mainly to performance by its Sam’s Club stores. Total sales, including new stores, for the four-week period ended Jan. 28 rose 9% to $19.8 billion from $18.1 billion. Same-store sales grew 2.5%.

HOFFMAN ESTATES, Ill. — Sears, Roebuck and Co. had total domestic store revenues of $1.61 billion for January, up 1.7%. Same-store sales during the period were up 0.8%. Lawn, garden and reported increased sales, and so did tools and automotive. Specialty retail sales also strong in January, as the company reported sales increases for Sears Hardware, Orchard Supply and The Great Indoors.

HOLLAND, Mich. — Tomkins plc, through its Air Systems Components business, has acquired Milcor Inc. from Gibralter Industries. Terms of the sale were not disclosed. Milcor is a multi-brand manufacturer of building materials, selling to the U.S. residential and commercial construction markets. It operates two manufacturing facilities, in Lima, Ohio, and two in Bensenville, Ill., and employs about 350. It will be integrated into Tomkins’ residential air systems business, Hart & Cooley.

PEOPLE ON THE MOVE

Serge Tremblay has joined Sodisco-Howden Group as vice-president marketing. He brings with him 23 years experience at Hudson’s Bay Co., including eight years as Eastern Canada officer. He then spent time at Eaton’s before that department store chain folded. Most recently, he was at Loblaw’s, where he served as vp merchandising and marketing. (514-286-8986)Following the announced licensing of the Sunbeam brand for its own line of storage and organization products, Prime Way Corp. has hired Gail Jaseliunas as Canadian sales manager. She was formerly Canadian sales and marketing manager for Contact Brand shelf paper … Bob McBride has been appointed director of the Sunbeam license, adding to his current duties as national sales manager. (905-732-5445)Scott Hoy, formerly publisher of Hardware and Home Centre magazine, a trade magazine serving the retail home improvement industry, has left the publication. No replacement has been named at this time. (416-442-5600)

Habitat for Humanity International, the faith-based organization that is one of North America’s largest builders of affordable housing, has fired its founder, Millard Fuller, primarily because he was uncooperative during the several months the builder investigated allegations of his inappropriate conduct towards a female staff member.

MARKET INDICATORS

CMHC forecasts that new housing construction in Canada will likely slow this year and in 2006, but is expected to remain above 200,000 units during that time, says CMHC. Housing starts are expected to reach 216,300 starts, down from 2004’s 17-year high of 233,431 units. It’s forecast to dip further, to 201,100 units, in 2006.

KEY ACCOUNT MANAGER

We thank in advance all candidates and wish to inform that we will contact only the individuals retained for an interview.

Please submit a resume by email, stating qualifications and income expectations to resumes_at_hr@yahoo.ca.
(01.31:02.07.14/05)

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

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Jan. 31, 2005

John Caulfield, Contributing Editor

vol. xi, #5, January 31, 2005

IN THIS ISSUE:
• IRLY offers new store package
• Tim-BR-Marts counts on growth
• ILDC looks west for members
• Building stays hot in U.S.
• True Value sharpens buying focus

* * * * * *

“Life is a succession of moments. To live each one is to succeed.”
— Corita Kent (artist, teacher and a Sister of the Immaculate Heart of Mary)

IRLY DEALERS TO GET NEW LOOK

SURREY, B.C. — IRLY Distributors, the Western-based wholesaler and buying group, has unveiled a new store design program. It’s part of a move by the group to get more aggressive in both its recruitment and retention efforts.Designed for both new and existing dealers, the program has been developed in-house by Brad Dixon, dealer development manager for IRLY, along with Catherine Brownlow, advertising manager. “The new look maximizes the existing strengths of our program, while giving it a fresh look, to keep costs down for our dealers,” says Dixon.But despite the sensitivity to a dealer’s pocketbook, the new program is a comprehensive one. It includes interior and exterior signage, store layouts, yard layouts, merchandising and racking, truck identification and staff uniforms. And it’s being supported by a new marketing program with a new slogan: “Big enough to serve you, small enough to know you.”

The new initiatives mark a major response by IRLY to intensifying competition. A year ago, the 54 IRLY dealer members rejected a proposal to merge with Rona inc. Even though a couple of dealers decided on their own to join Rona, most stayed put — but recognized the need for more. “Dealers understand that it’s time for change,” says Dixon. “They’ve looked at the Rona program, but decided to stay with us.” The solution being offered is what Dixon calls “a store in a box,” with all the elements needed for a dealer to update their business.

Three stores have already committed to the new program, and Dixon says the entire membership is keen to get involved.

ILDC LOOKS FOR WESTERN TOTEM REPLACEMENT

AJAX, Ont. — One of Canada’s largest buying groups may have lost one of its newest members, but increased sales from its remaining member companies continues to drive the group’s growth.Independent Lumber Dealers Co-operative lost more than $260 million in retail sales with the sell-off of Totem Building Supplies to Rona inc. last month, but ILDC general manager Andrew Battagliotti says the group will be choosy about filling the hole. “It becomes obvious that we will want to replace some of that lost volume in the west,” he says. “But our own members have grown, and will continue to grow.”Although there are only 24 members in ILDC, that membership represents almost 140 stores generating approximately $2 billion in sales at retail. This “elite” cadre, most of them privately held companies, is very picky about who can join. “It’s more than just membership,” says Battagliotti. “There’s a sense of camaraderie, generated by like needs among similar businesses. And as a co-op, everyone contributes to operations” — including buying decisions and the sharing of best practices.

But with no members in British Columbia or Alberta, ILDC nevertheless wants to beef up its ranks there. “Obviously, we’re looking for people,” Battagliotti notes. “We’re looking for people of a like ilk. They have to fit.”

TIM-BR-MARTS EXPECTS GROWTH WITH NEW HIRE

CALGARY — The addition of Steve Stremecki to the ranks of Tim-BR-Marts Ltd. underlines this member-owned buying group’s emphasis on growing its ranks. Stremecki assumes the title of director of business development for Ontario and Western Canada. Formerly with BPB Westroc, where he served for many years, most recently he managed the U.S. Division for Kenroc in Minneapolis.In fact, before joining Tim-BR-Marts, Stremecki was expected to move to another Kenroc company, Sexton Group, which is also a competitor to Tim-BR-Marts.Tim Urquhart, president of Tim-BR-Marts, explains what the hire means to the group. “What keeps me awake at night is realizing there are so many opportunities out there in Canada for our dealers, and not having enough time to get after them all before the competition does,” he says.

“Steve’s going to help us go after those opportunities.”

Growing the member ranks is certainly one of those opportunities, and Tim-BR-Marts has added four new members recently.

ANOTHER BANNER YEAR FOR U.S. HOMEBUILDING

WASHINGTON — What bubble? Predictions that homebuilding in the United States would tail off in 2004 proved premature, as the number of homes started for the full year rose 5.7% to 2,004,000 units, according to the Commerce Department. Single-family starts grew by 7.3% to an annualized rate of 1,678,000 units. All areas of the country showed gains except the Midwest, which was pulled down by a sharp decline in multi-family building activity.Evidence of a robust industry can be found in the quarterly reports of several of the industry’s leading builders. D.R. Horton, the country’s largest builder, reported a 31% increase in sales, to $2.7 billion, or 9,901 homes, for the three months ended Dec. 31, 2004, which represents Horton’s first quarter in fiscal 2005. The Centex Homes division of Dallas-based Centex Corp., the country’s fourth-largest builder, reported a 17% increase in quarterly domestic home sales, to $2.24 billion. “It is our view Centex will continue to achieve strong results in fiscal 2006 [its coming fiscal year] even in an environment of incrementally higher mortgage rates,” says Centex’s CEO Tim Eller.Despite these results, however, some industry watchers still anticipate a downturn in the housing market in 2005. Margaret Whelan, a housing analyst with New York-based UBS Investment, observes that the industry’s “third soft landing is unfolding” (the other two being in 1994-1995 and 1998-2000), and that “further declines” in homebuilding activity would occur over the next 12 months. Like many analysts, Whelan expects the industry’s largest builders to continue to gobble up a bigger share of the market, of which the 10 largest companies now control more than 20%.

TRUE VALUE RESHAPES BUYING TEAM, STRATEGIES

CHICAGO — The co-op channel has been paying too much for product, asserts Steve Mahurin. He’s the senior vice-president and chief merchandising officer for the True Value Company.The member-owned co-op was renamed from TruServ, effective the beginning of the year. But the name is just one of many ways it’s reinventing itself — a new mindset is emerging that reflects the influx of talent from other major retail segments. “All the co-ops need to evolve, if they want to compete,” says Mahurin, in an exclusive interview with Hardlines. “And they have to continue to evolve to stay competitive.”The evolution of the buying team has resulted in a much-publicized purge, as the department was reorganized to include the global product merchants, the product merchants and the merchandising assistants.

“We’ve organized this to have fewer decision makers and more support staff, which will free the merchants up to develop new products and new programs, and make decisions faster.”

The change is aimed at giving the lead merchants more time to focus on product development, less encumbered by administrative duties. It reflects the new blood on the team, which includes Jim Richardson, formerly with Home Depot, now division vice-president of imports in charge of global sourcing; Lee Pell, now division vice-president of merchandising, who came over from was Rep-Tech, a consulting group; John Bonnot, who came over from Lowe’s to serve as division vp of merchandising; and Laura McInnes, who brings her experience at Radio Shack to her role as division vice-president of inventory management.

COMPANIES IN THE NEWS

WINNIPEG, Ont. — TruServ Canada has added the following new members: Alberta Hardware & Variety Ltd., Fort McLeod, Alta.; Swarbrick Enterprises, Frontier, Sask.; Ponass Lake Building Supplies, Rose Valley, Sask.; Border View Lumber, Cartwright, Man.; Acme Farm & Building Centre, Acme, Alta.; Hopedale Hardware, Oakville, Ont.; Onoway Lumber and Building Supplies, Onoway, Alta.; Marshall’s Town and Country Supply, Strathroy, Ont.CALGARY, Alta. — Rona inc. has opened a new store here, at 3005 Ogden Road S.E. The 12,000-sq.ft. outlet, replaces a smaller one there. Operating as a Rona Building Centre, it features a contractor showroom and a technical centre that designs and sells roof and floor trusses manufactured by Rona Timbertec Truss. It sits atop a 10-acre lumberyard, carries 12,000-plus SKUs, and employs more than 100.ABBOTSFORD, B.C. — At the recent Westcoast 2005 Trade Show and Convention, the Building Supply Dealers Association of B.C., gave out its dealer awards. The winners are… Best in Class (under 5,000 sq. ft.): Sunbury Cedar, Delta; Best in Class (5,000-10,000 sq. ft.): Westside Building Centre, Kelowna; Best in Class (over 10,000 sq. ft.): Dick’s Lumber & Building Supplies, Burnaby and Surrey.

BARRIE, Ont. — Can-Save, the LBM distributor, will feature Canadian rock legend David Wilcox at its next Buying Expo. It will be held June 16, 2005 at the Barrie Curling Club. For more info, contact: 705-722-7283.

WELLAND, Ont. — Prime Way Corp., a product development company, has struck a licensing deal with Sunbeam to use that brand name for Prime Way’s line of storage and organization products for kitchen, laundry, bath, and home. Prime Way will convert its existing line of 50-plus wire storage products to the Sunbeam brand and plans to unveil many new items at the March International Home & Housewares Show in Chicago.

EAU CLAIRE, Wis. — The U.S. Internal Revenue Service has ruled that Menard’s, the third-largest home improvement retailer in North America, owes nearly $6 million in back taxes, asserting that the company wrote off more of its owner’s salary seven years ago than it was entitled to. The IRS ruling comes after a judge decided in September that the company overpaid owner John Menard — the richest person in Wisconsin, according to the Milwaukee Journal-Sentinel — by $13 million in 1998.

TOWSON, Md. — Black & Decker Corp. enjoyed a 29% sales increase in the fourth quarter, rising to $1.73 billion from $1.34 billion. In addition, profits rose 36%, due mainly to strong sales of its DeWalt and Black & Decker brands. Profits reached $135.3 million for the quarter, up from compared with $99.5 million.

TORONTO — Sears Canada reported operating income of $140 million for the fourth quarter, compared with $109 million in the fourth quarter of 2003. Revenues increased 4.0% to $1.6 billion. Sales declines across most major merchandise categories were offset by favorable foreign currency exchange rates. Same-store sales decreased 1.7%.

FEDERAL WAY, Wash. — Weyerhaeuser reported earnings of $1.3 billion for 2004, on net sales of $22.7 billion. That’s up from $277 million on net sales of $19.9 billion for 2003. Fourth-quarter 2004 earnings were $199 million on net sales of $5.9 billion. Last year, Weyerhaeuser reported fourth-quarter net earnings of $92 million on net sales of $5.1 billion.

PEOPLE ON THE MOVE

Jacques Déry has left Bargain Building Supplies, where he had served as general manager. No replacement has been named for him. His duties are now being covered by others at this St-Antonin, Que.-based retailer.At Lowe’s Cos., Robert Niblock has assumed the additional roles of chairman and CEO. Niblock, 42, has served as president for the past two years, and served as chairman and CEO-elect and a member of the board of directors since April 5, 2004. He succeeds retiring chairman and CEO Robert Tillman, who spent 42 years with Lowe’s.Aurelio Perrella has joined First Alert/ BRK Brands, a division of Sunbeam as vice-president, new business development. This post will find Perrella relocating to the Chicago area.

MARKET INDICATORS

Retail sales in Canada dipped slightly by 0.1% in November, to $29.5 billion, says Statistics Canada. Sales in general merchandise stores were off by 2.3%, while sales in furniture, home furnishings and electronics stores dipped by 1.9%. Shoppers spent 1.4% more in building supplies stores.

NOTED…

The western trade show, the Prairie Showcase, put on by the Western Retail Lumber Association, managed to withstand only a slight drop in attendance due to bad weather last week. Despite the snow, 213 exhibitors filled 422 booths — and wrote business — at the two-day show, which was held in Saskatoon. This was the WRLA’s 12^th annual show.

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We thank in advance all candidates and wish to inform that we will contact only the individuals retained for an interview.

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(01.31:02.07.14/05)

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Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7
© 2004 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: $229 (Canadian subscribers add $16.03 GST = $245.03 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $36 (Canadian subscribers add $2.52 GST = $38.52). 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.

Jan. 24, 2005

John Caulfield, Contributing Editor

vol. xi, #4, January 24, 2005

IN THIS ISSUE:
• Builders FirstSource: independent goes public
• Industry helps tsunami victims
• TIM-BR Mart looks to bright future
• LBMAO Show positioned as buying event
• Huttig completes purchase
• Restoration founder resigns
• Ace dealer gets embezzled

* * * * * *
NOTE: Dollar amounts are stated in the currency of the country from which the story originates.
— Michael McLarney, Editor & Publisher

* * * * * *

“It’s curious how much more interest can be evoked by a mixture of gossip, romance and mystery than by facts.”
—Eleanor Roosevelt (and no cracks about the content of certain e-newsletters!)

BUILDERS FIRSTSOURCE WILL GO PUBLIC

DALLAS — The management and owners of Builders FirstSource disclosed last week that they plan to take the national pro dealer public, and have apparently scuttled their plans, revealed last fall, to sell the company.In a prepared statement, Builders FirstSource said that next month it would register its initial public offering with the U.S. Securities and Exchange Commission, and expected to complete the IPO by the summer. Prior to the offering, the company plans to refinance its existing debt, pay a dividend to its stockholders and make a cash payment to its option holders in lieu of a dividend.Floyd Sherman, Builders FirstSource’s CEO, said that the “strides in performance” that his company has achieved in recent years have “positioned” Builders FirstSource “to access the public capital markets.” Paul Levy, founder of JLL Partners, the investment firm that owns Builders FirstSource, added that his company would continue to be a large stockholder in the retailer after the IPO. Company officials did not reveal what their price target was for the stock offering.

Interestingly, Levy told Hardlines last September that JLL at the time was against taking BFS public because JLL would have to hold onto the company’s stock for at least three to four years (so as not to scare off other investors). That’s not something JLL wanted to do, because, as a mid-size equity investor, it needs to maintain certain levels of liquidity. Last fall, JLL retained two investment firms — Deutsche Bank AG and UBS — to auction off BFS’s assets. It was not clear at press time what changed JLL’s mind.

Kevin O’Meara, Builders FirstSource’s COO, said he was restricted from commenting about the offering because his company was in a “quiet period” prior to its S.E.C. filing. However, when asked what changes to the company’s operations or competitive strategy might result from its going public, he responded that in “anything that matters to the customer, the answer is none.”

Builders FirstSource operates 42 manufacturing facilities and 63 yards in 11 states. Its sales last year increased nearly 7% to $1.7 billion.

TIM-BR-MART MERGER COMBINES MARKETING SAVVY WITH BUYING CLOUT

CALGARY —The merger of TIM-BR Mart Ontario (aka Homecare) with its larger sister organization, Tim-BR-Marts Ltd., at the end of last year, marks a major, substantive move by a buying group to effect consolidation.According to Tim Urquhart, president of the new group, the deal only made sense. “When you look at the buying groups, we are the employees,” he says of himself and his executive vice-president, Don Nash. “Our job is to serve the dealers in the best way we can.” Nash was formerly president of the Ontario operation. The merger required the paring down of that operation, and centralizing the business into Tim-BR-Marts’ Calgary head office, to serve the entire dealer base.Those dealers range from the eastern-most borders of Ontario to the Western shores of British Columbia. They number 340 stores, and their combined sales at retail will total about $1.8 billion. Tim-BR-Marts in the west accounts for about $1.2 billion of that.

Despite similarities, including joint membership in a larger umbrella buying group, Matreco, the two groups both bring different strengths to the union, says Urquhart. “The west is good on the purchasing side,” he points out, “bringing the volumes and working with preferred suppliers. The Ontario TIM-BR Mart brings the marketing skill.”

He’s impressed by TIM-BR Mart Ontario’s success at developing the TIM-BR Mart brand among its members. Of LBM 130 dealers (the Ontario group also has some commercial dealers), fully 110 of them carry the TIM-BR Mart banner, supported by strong standards for carrying that banner. “That’s something we did not have in Western Canada.”

Sixty-four of the 170 Western dealers currently fly the TIM-BR Mart banner, but the program is not as rigorous or extensive as the one developed in the East. Nash expects to raise that number to 90, says Urquhart.

TRUSERV RENEWS CURLING SUPPORT

WINNIPEG — True Value Hardware has renewed its support of the sport of curling, both nationally and in communities across the country. True Value has been an official sponsor with the Canadian Curling Association’s Season of Champions for six years. The Season of Champions is a combination of seven televised national and international curling events.At the local level, many True Value Hardware owners sponsor curling bonspiels in their communities. True Value is a banner of the Canadian co-operative, TruServ Canada.

HUTTIG COMPLETES PURCHASE OF TEXAS DISTRIBUTOR

ST. LOUIS, Mo. — Huttig Building Products, based here, has expanded its distribution network by completing its acquisition of Dallas-based Texas Wholesale Building Materials. Hutttig will pay $15 million in cash and assume Texas Wholesale’s liabilities.This deal gives Huttig — which operates 44 branches serving 47 states — its first full-line distribution operation in Texas. In a prepared statement, Huttig estimated that sales from Texas Wholesale would fall between $90 million and $100 million in 2005. Texas Wholesale, one of the Southwest’s largest regional distributors of millwork and building products, operates through a 260,000-square-foot distribution center in Dallas and a branch in Tulsa, Okla. (In October, Huttig had signed a letter of intent to acquire Texas Wholesale for $16.5 million in cash.)”The Texas market is a key part of Huttig’s strategic growth,” said Mike Lupo, Huttig’s CEO. “Our entry into this market allows us to increase its residential market opportunity by over 150,000 annual housing starts and increase our coverage to over 80% of the U.S. housing market.”

In related news, Huttig has signed a definitive agreement to sell its four remaining one-step operations in Tennessee and Alabama in a transaction expected to close in the current quarter. Huttig sold its other one-step operations in Merriam, Kan., and Baltimore, Md. in August and December, respectively.

ONTARIO LUMBER GROUP READIES FOR SECOND SHOW

MISSISSAUGA, ONT. — The Lumber and Building Materials Association of Ontario is about to put on its second show. The 2005 Winter Buying Show will be held Feb. 5-6, 2005, again in London, Ont., at the Progress Building, Western Fair Grounds.The show targets more than 2,000 retailers and 150 vendors in the hardware, lumber and building materials industry. “We are very excited about this year’s show,” says Dave Campbell, President of the LBMAO. “To date, we have signed up more exhibitors, and pre-registration for both the show and the social events is up over last year.”The social events include a Friday night Welcome Reception at the Sheraton Four Points hotel with a Las Vegas theme, while on Saturday night the LBMAO will host its annual Gala dinner, “An Evening with the Stars,” also at the Sheraton Four Points.

Registration for attendance to the show or any of the social events can be made on-line by visiting www.lbmaowinterbuyingshow.com or by calling 866-535-0520.

HABITAT STEPS IN TO HOUSE TSUNAMI VICTIMS

AMERICUS, Ga., & MOORESVILLE, N.C. — Habitat for Humanity International said that over the next two years it intends to build an estimated 25,000 transitional housing units for victims of the underwater earthquake that has devastated several countries bordering the Indian Ocean.The cost of that effort, which Habitat estimated at US$25 million, will be partly defrayed by a US$1 million pledge from Lowe’s Cos., the second-largest home improvement retailer in North America. The retailer also hopes to raise an equal amount of money through customer donations. Those funds will go towards helping Habitat build 200 or more homes in Sri Lanka.Lowe’s 1,050 stores are serving as cash donation sites for Habitat’s tsunami relief program. Donations can also be made through Lowe’s website. The retailer will accept donations through Feb. 21.

“Every gift is important, every gift will make a difference,” said Paul Leonard, CEO, Habitat for Humanity, which has an active presence in six of the countries impacted by the tsunami including Indonesia, Sri Lanka, India, Thailand, Malaysia and Bangladesh.

RESTORATION HARDWARE FOUNDER RESIGNS

CORDE MADERA, Calif. — Stephen Gordon, the founder of Restoration Hardware, the specialty hardware and home décor chain, has resigned. Gordon, who was also the company’s chairman, said he is leaving to pursue other interests, but gave no specifics.Gary Friedman, the company’s president and CEO, has been appointed by the board as interim chairman for the 102-unit chain.Gordon’s resignation comes only days after Restoration Hardware reported that its holiday sales for the nine-week period ended Jan. 1, 2005 were up 11%, to $142.8 million over the same period a year ago, while same-store sales for that period increased 3.2%. Friedman projected that the company’s sales for all of 2004 would be up more than 19% to $520 million. However, the company’s profitability remains problematic, as the chain lost $9.1 million for the nine months ended Oct. 30, 2004. That was on top of a $10.8 million loss for the same period in fiscal 2003.

NOTED…

The recent Westcoast 2005 Trade Show and Convention, held by the Building Supply Dealers Association of B.C., managed to fill the aisles with dealers from all over the province, despite fluke snowstorms that closed airports and highways throughout the lower mainland.There were 242 booths at the trade show, enlivened by a series of show specials and opportunities to view new products. Despite the lower attendance, many suppliers reported significant increases in orders over 2004. Congratulations to BSDA president George Tracy and his team for delivering the goods despite the odds! (Next week, we’ll announce some of the winners of the association’s dealer awards.)

COMPANIES IN THE NEWS

TORONTO — Home Depot Canada will in fact open 25 stores over the next 14 months, as promised, points out Nick Cowling, their PR Manager. Although Home Depot chairman and CEO Bob Nardelli announced 19 store openings for Canada in the coming fiscal year, that number does not take into account another six opening before the 2004 year end on January 31.FORT WAYNE, Ind. — Masters Ltd., a Bermuda-based Do it Best Corp. member, recently received two honors for its commitment to customer service. Masters received a “Best of Bermuda Gold” award in the Shopping & Services category. The 14^th annual Best of Bermuda Gold awards were chosen by a panel of judges enlisted by The Bermudian, Bermuda’s premier magazine, to celebrate the island’s treasures. This was Masters’ fourth receipt of a Best of Bermuda Gold honor. With annual sales approaching $3 billion, Do it Best Corp. is the second largest co-op in the U.S., and serves 4,100 member-retailers in the United States and in 45 foreign countries.MOORESVILLE, N.C. — Lowe’s Cos. says it will put a new data center in Winston-Salem. The data center is the hub for the company’s computer processing and information technology operations and will include redundant power and telecommunication sources, plus capacity to expand as the company’s tech needs grow.

RHINELANDER, Wisc. — A Vilas County woman was convicted of embezzling almost $470,000 from Nelson’s Ace Hardware of Eagle. The 57-year-old woman, Judith Wolff, ended up getting sentences to seven years behind bars, plus eight years of probation and extended supervision. Considered a career criminal, Wolff stole the money to support her gambling addiction. The money, which began being siphoned into an account in her husband’s name, was stolen over a four-year period.

LONDON, U.K. — In yet another case of retail lines becoming blurred, grocery giant Tesco plans to open a number of stores this year that sell only non-food items. The first outlet, which will feature an array of products, including clothes, electrical goods, CDs and DVDs, is expected to open within months.

MONTREAL — Forestry company Tembec reported consolidated sales for the first quarter ended December 25, 2004 of $888.8 million, up from $766.3 million from the same period last year. Tembec generated a net loss of $0.7 million, a swing from net earnings of $52.1 in the first quarter of last year.

PRINCESS ANNE, Md. — Wal-Mart, struggling away to grow its little business, has applied for a federal grant worth up to $1.3 million, to help offset the construction of its newest planned distribution center here. It’s received approval by Somerset County Commissioners this month. Most of the grant would be used to help fund Wal-Mart’s purchase of land for the proposed center, while the remaining $500,000 would help fund street improvements.

LONDON, U.K. — Kesa, the electricals chain spun off by Kingfisher last year, saw sales rise in the latest quarter by 6.2%. Sales were especially strong in multimedia and digital products. Sales for its French Darty chain were up 9.2%, while same-store sales rose 7.2%. In the U.K., the Comet chain enjoyed sales growth of 3.8%.

ATLANTA — Georgia-Pacific Corp. says it expects to report between a loss of 1-4 cents per diluted share for the fourth quarter 2004, based on preliminary unaudited results. Unusual items are expected to include pre-tax asbestos-related charges of $159 million.

NEWTON, Iowa — Maytag Corp. says it will no longer sell Maytag-branded appliances to specialty retailer Best Buy, although Maytag’s Hoover brand of floor care products will continue to be sold there. According to Ralph Hake, chairman and CEO of Maytag, sales of its major appliances through Best Buy have declined “significantly over the years” and last year represented only about 1% of Maytag’s consolidated revenue.

PEOPLE ON THE MOVE

At Bélanger.UPT, the plumbing manufacturer and distributor, Dominic Prégent has joined as executive vice-president/general manager. He will be responsible for planning and organizing the company’s strategic activities as well as overseeing the sales, marketing, finance, and administration departments.Mike Hladysh has been named director of engineering at Selkirk Canada. He has been with Selkirk, and before that, GSW Heating Products, which was purchased by Selkirk in 1999, for 18 years and previously held the position of engineering manager … Jim Vargyas has been appointed director of logistics. A 16-year veteran of the Selkirk and GSW, he served most recently as logistics manager. In addition to their current roles, both men will take on responsibility for Selkirk Canada’s new Energy Vent Division.At Western Forest Products Inc., the second largest coastal woodland operator in British Columbia, Paul Ireland has been appointed CFO, effective today, January 24. He comes over from Diavik Diamond Mines Inc. where he spent two years as vice-president, finance. Ireland succeeds Phil Hosier, who will be retiring, effective January 31, but continue to work with the company in a consulting role.

U.S. MARKET INDICATORS

Housing starts in December 2004 were 2,004 thousand, up 10.9% from November 2004 but down 3.0% from one year ago, according to the Commerce Department. Building permits were 2,021 thousand, down 0.3% from November but up 2.1% from December 2003.The latest survey of business conditions by the Federal Reserve has some good news for the economy. Consumer spending increased in most of the 12 districts surveyed. Retail sales were good, especially for electronics, jewellery and home entertainment products.

CANADIAN MARKET INDICATORS

The composite index advanced 0.2% in December, says Stats Canada, as six of the 10 components in the index were up. They included manufacturing and services, which were reinforced the steady growth of household demand. In fact, household demand posted its strongest and most widespread gains in over two years, led by the booming housing market as well as steadily falling import prices and rising incomes. Furniture and appliance sales grew 0.9%, its largest monthly gain in six months, raising annual growth to 10.0%. Sales of other durable goods advanced 1.1%, driven by autos.Investment in non-residential building construction remained unchanged at $6.6 billion in the fourth quarter, compared with the previous quarter, says Stats Canada, but the year overall closed higher, up 1.4% over 2003. Commercial and industrial investment reached $4.6 billion for 2004.

TSC STORES LTD. is a Canadian owned company with 25 retail stores in Ontario and a distribution center located in London, Ontario. We have been in the hardware, automotive and farm supply retail sector for over 35 years in Canada and have an aggressive plan for future growth.

We are currently looking for a Chief Financial Officer at our Corporate Office in London, Ontario.

The Chief Financial Officer is responsible for accurate and timely financial reporting, budgeting, investment management and debt management. Responsible for all areas of finance within a chain of retail stores that are corporately owned. The Chief Financial Officer holds full collaborative authority and accountability for all decisions made and is accountable for the complete execution of company policies, practices and plans. The CFO would be the liaison with external auditors and banking institutions, and would negotiate and execute contracts, drafts and loan agreements. This person would provide direction and leadership to an accounting department of six.

The ideal candidate must possess 8 to 10 years management experience with an extensive, multi-unit progressive retailer. Must have CA designation. Must have superior communication and presentation skills and the ability to effectively communicate with all levels of management and across all functional areas. Must possess strong computer skills (MS Office – Excel, Word).

We offer a competitive salary and benefit package. Please apply by January 17th to:

TSC Stores Ltd.
1950 Oxford Street E.
London, Ontario
N5V 2Z8
Fax: 519-451-1235
e-mail: humanresources@tscstores.com
(01.10.17.24/05)

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MARKETPLACE

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 .

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
ï¿½ 2004 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
Nancy Wright, Circulation Manager: nancy@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: $229 (Canadian subscribers add $16.03 GST = $245.03 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $36 (Canadian subscribers add $2.52 GST = $38.52). 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.

Jan. 17, 2005

John Caulfield, Contributing Editor

vol. xi, #3, January 17, 2005

IN THIS ISSUE:
• Home Depot projects double-digit growth
• Loblaw to relocate hardlines buyers
• Milwaukee, with Vancouver firm, introduce new technology
• Era of strong U.S. independents coming to an end
• Banks close in on Canada’s second-oldest retailer
• Concealed weapons concern for some retailers

* * * * * *
NOTE: Dollar amounts are stated in the currency of the country from which the story originates.
— Michael McLarney, Editor & Publisher

* * * * * *

“If everyone demanded peace instead of another television set, then there’d be peace.”
— John Lennon (1940-1980)

HOME DEPOT EXPECTS HEALTHY SALES GROWTH FOR YEAR

ATLANTA — Home Depot held an investors’ conference last week, in anticipation of the company’s year end on January 31, 2005. Home Depot executives shared company projections for the year ahead, as well, with expected fiscal year 2005 sales growth of between 9% and 12% and earnings growth of 10%-14%. Same-store sales are expected to increase 4%-7%. The company also plans to update existing stores and add 175 new ones for a capital investment of $3.7 billion.However, the stated number of new stores for Canada was only 19, lower than the 25 already promised by Home Depot Canada president Annette Verschuren.During the conference, Home Depot also mapped out plans to expand its auto-replenishment programs, which promises to take more costs out of the supply chain. Currently some 10% of SKUs are on the program; by year’s end, that percentage is expected to double.

The company also offered some expected results for fiscal 2004: sales growth of 12.5% to $72.9 billion; earnings per share of $2.26, an increase of 20%; same-store sales increase of 5%; and gross margin expansion of approximately 160-180 basis points.

LOBLAW TO RELOCATE GENERAL MERCHANDISE BUYING TO TORONTO

CALGARY — Grocery giant Loblaw is centralizing its operations to a new facility Southern Ontario, which means the company’s general merchandise buying teams will relocate from here, where they currently operate within the company’s West Fair offices.The Canadian grocery giant has been aggressively expanding its ranges of hard goods, including patio furniture, barbecues, kitchenwares and décor items, especially in its new Supercentres.Centralization of the Loblaw operations will take place at the new Weston Centre, in Brampton, about an hour north of Toronto, starting in June 2005. I don’t know how many will actually make the move, but they are being offered a package to relocate. However, many had relocated just a few years ago, many from Toronto in the first place. During that time, housing prices in Toronto have skyrocketed, making the notion of moving back a fiscally challenged one. As a result, a number are reportedly not planning to take up the offer.

Besides Calgary, Loblaw’s team in mid-town Toronto (Yonge and St. Clair) must decide whether to move to suburban Brampton or commute there for up to two hours daily.

MILWAUKEE TOOL ADDS POWER TO CORDLESS LINE

BROOKFIELD, Wis. — Milwaukee Electric Tool is adding considerably more juice to its line of cordless power tools for professional customers — with help from a Vancouver company.The company, based here, announced this week that it is rolling out a new line of cordless tools that company officials say will be the first to be powered by 28-volt batteries, which reportedly will have twice the life of more conventionally used 18-volt batteries. The line will be introduced in April and will include a band saw, circular saw, reciprocating saw, impact wrench, hammer-drill and work light. A cordless rotary hammer and two-way radio will follow in 2006.Milwaukee, which was recently acquired by Techtronic Industries, spent more than $10 million developing its battery technology in partnership with E-One Moli Energy of Vancouver, B.C. The lithium-manganese batteries deliver high power and longer-lasting charges, and the circuitry is as much of a breakthrough as the use of lithium batteries, explains Gary Meyer, Milwaukee’s research and development manager. “Essentially, it optimizes battery performance by regulating the charging and discharging of the battery,” he says. Each battery comes with a “fuel gauge” so that users know how much power remains.

“I would say it’s the biggest breakthrough in the 81-year history of the company because it involves an entire platform of tools,” said Joseph Smith, vp-marketing at Milwaukee Electric Tool, in an interview with the Milwaukee Journal-Sentinel. Smith cited statistics which show that demand for power and hand tools in the U.S. would increase 4.7% this year, to $14.2 billion. “Basically, all of the growth in the power tool category has come from cordless tools,” Smith said.

The 28-volt tools will cost about 40% more than 18-volt, professional-grade tools, Smith said. Most of the 28-volt tools will be made at the company’s plants in Arkansas and Mississippi.

SCOTTY’S LIQUIDATION ENDS AN ERA

WINTER HAVEN, Fla. — The decision by Scotty’s, once one of the dominant home improvement dealers in the United States, to liquidate its remaining 40 stores removes from the market perhaps the last major regional retail chain to have withered under the competitive onslaught of Home Depot and Lowe’s.After filing for protection under Chapter 11 of the U.S. Bankruptcy Code last September, and stating that it had liabilities of nearly $46 million — including $12.3 million in long-term debt — to more than 200 creditors, Scotty’s was unable to negotiate new financing for its operations. Its managers filed documents on Dec. 17 citing their decision to close down the company.At the end of 2004, the company operated 53 stores that generated $32.5 million. When it started closing its stores in early January 2005, it had 470 employees.

Scotty’s saga over the past 25 years represented a case study of how warehouse retailing has disrupted and transformed home improvement retailing in North America. A small lumberyard retailer that began operations in 1924, Scotty’s grew to become Florida’s largest retailer of hardlines and building products, with 164 stores. In the late 1970s and early 1980s, it had what was generally thought to be one of the industry’s strongest merchandising teams. Its gregarious president, Ray Cooney, was a high-profile presence at industry functions and trade shows. And the company was ahead of its time by operating a separate wholesale division that supported its stores and its commercial/industrial account business.

However, when Home Depot opened its first Florida stores, in Orlando and Tampa, it specifically targeted Scotty’s, whose prices Home Depot portrayed as being exorbitant and whose product mix the rapidly growing big box operator depicted as being anemic. Apparently, Floridians agreed: as Home Depot deepened its penetration into Florida, and opened a regional headquarters in Tampa, Scotty’s seemed to feel the brunt of that competition more than any other dealer.

Its response — to open warehouse stores of its own — proved disastrous. In 1988, the Belgium-based GIB Group, which had owned a piece of Scotty’s since 1979, bought the company outright, and owned it for a decade until its current president, Tom Morris, assumed control in a management-led $100 million buyout.

Morris did what he could to revive the company by scaling back its store count and store size, and converting the company to more of a hardware-store operator. But for at least the past four years, Scotty’s has been on life support.

The liquidation of its stores, equipment and inventory is expected to run through March 31.

CANADA’S SECOND-OLDEST RETAILER FACES BANKRUPTCY

BARACHOIS, Que. — A Canadian retail tradition is getting pressure from the banks to close its doors once and for all. Robin Jones & Whitman began in 1766 selling fishing supplies in this community in Northern Quebec. (Only Hudson’s Bay Co., founded in 1670, is older.) Lawrence Legros, the owner of Robin Jones & Whitman, is a direct descendant of the stores’ founders, who emigrated from England.But now the venerable retailer is under court protection from creditors, mainly the Bank of Montreal and the Business Development Bank, but that protection expires in mid-February.The store here, atop the Gaspé peninsula, has been in business since 1909, and it’s the only one out of the six stores in the $10-million chain that sells lumber. Its manager, Carl Bond, has been there for 38 years. He says his store was, until two years ago, a BMR member, though not a bannered dealer. Another BMR dealer was already nearby, so Bond’s store relied on BMR, a Quebec City-based wholesaler and buying group, for product only.

Because of his remote location, BMR encouraged him to order direct from the suppliers, he said. Servimat, the LBM distribution arm of Sodisco-Howden Group, became a key supplier, as a result. Then, in the summer of 2003, BMR held its annual golf tournament up on the peninsula. “They saw Servimat products in the yard,” says Bond. After that, BMR stopped supplying the store.

Bond regrets that they didn’t have a banner affiliation. He thinks that might have helped their buying position. Competition is starting to heat up: while the nearest Canadian Tire is 130 kilometres away, a new Home Hardware store is reportedly going up nearby.

HARDWARE RETAILER YIELDS TO GUN TOTERS

FAIRFIELD, Ohio — The power that the gun lobby exerts in the United States extends even to retail policies. Consider Handyman Ace Hardware, a seven-unit dealer based here, that recently agreed to remove signs which stated that customers bearing concealed firearms could not shop in its stores.In a recent letter sent to the political action committee “Ohioans for Concealed Carry,” Handyman’s president David Grimes wrote that the signage was not meant “to offend anyone, but rather to try to make all of our customers feel comfortable.” He said that his stores had removed the signage, and requested that Handyman be removed from OFCC’s “list of retail stores to boycott by your members.”On its website, OFCC stated that several other local retailers, including Home Depot and the supermarket chain Kroger, had “responded to questions about why these businesses were posting signs” which the group characterized as discriminatory. It stated that Handyman had made “a responsible decision that is in the best interests of its customers.”

A listing of Ohio retailers that have removed signs banning concealed-weapon holders from their stores includes Wal-Mart, True Value Hardware, Beechwold Ace Hardware, and all of Carter Lumber’s stores in the state.

COMPANIES IN THE NEWS

LEBANON, Ore. — Lowe’s intends to build a 1.4-million-sq.ft. regional distribution center here that, when completed in two years, would support its stores in six western states. The Albany (Ore.) Democrat Herald, quoting local government officials, reported that this DC, on 204 acres, would employ between 400 and 750 workers, and could be expanded to nearly 2.2 million sq.ft. if market demands warrant. At press time, however, the city of Lebanon and Lowe’s had not signed a definitive agreement and reportedly were still working out the details of the pact. If consummated, construction on the DC could begin in September. If Lowe’s does decide to build this DC, it would be adding to a distribution network that includes 11 large regional distribution centers and 12 flatbed distribution centers for the handling of lumber, building materials and other long-length items.DURHAM, N.C. — A jury here has awarded $500,000 to a family whose eight-year-old son sustained brain damage when a 154-pound, eight-foot-high door fell on him inside a Home Depot store in March 2001. The jury deliberated for four days before deciding that Home Depot had negligently created or allowed a dangerous condition to exist in the store, and that the injuries suffered by the boy, Will Baker, were severe and permanent. Home Depot’s attorneys presented evidence that the boy had been playing with the door displays in the store, and also tried to prove that Baker had learning disabilities before the accident occurred. The parents of the boy, James and Martha Baker, had sought $20 million in damages for physical pain and mental anguish. Their attorney presented evidence that the door had not been properly attached to its display for 40 months before the Baker boy was injured.VANCOUVER — CanWel Building Materials confirmed last week the successful purchase of fully 90.2% of the common shares of Sodisco-Howden Group, enabling the new parent of this national hardware wholesaler to take Sodisco-Howden private.

CHICAGO — Grainger, a North American supplier of facilities maintenance products, today announced its Lab Safety Supply subsidiary has signed a definitive agreement to acquire AW Direct Inc., a direct marketer of products to the service vehicle accessories market. AW Direct sells general towing and work truck equipment and accessories to customers in the auto service, utilities, government, and construction markets. The deal is expected to close in the first quarter of 2005.

NEW YORK — Facing a lot of bad press of late (everything from store overdevelopment and low wages for staff to union bashing), Wal-Mart is going on the offensive to shore up its bruised rep. The campaign includes a full-page ad that ran last week in more than a hundred U.S. newspapers, describing the employment opportunities and benefit packages awaiting would-be workers.

PEOPLE ON THE MOVE

At Georgia-Pacific Corp., Tyler Woolson will rejoin the company as senior vice-president of finance and strategy, effective Jan. 24, 2005. He will assume the additional title of treasurer upon the retirement of Phillip Johnson, the company’s vice president and treasurer, at the end of February. Woolson will report to Danny Huff, Georgia-Pacific’s executive vice-president of finance and CFO. Currently CFO of Consolidated Container Co., Woolson previously worked for Georgia-Pacific from 1995-2001.

U.S. MARKET INDICATORS

Retail sales for December 2004 were $349.4 billion, up 1.2% from the previous month and up 8.7% from December 2003, reports the Commerce Department. Excluding automobiles, retail sales were $266.7 billion. Total sales for 2004 were up 8.0% from 2003.Wholesale inventories in November 2004 were $326.8 billion, up 1.1% from October and up 11.5% from one year ago. According to the Commerce Department, sales were $283.7 billion, up 0.7% from October and up 14% from November 2003.

CANADIAN MARKET INDICATORS

Housing starts reached a seasonally adjusted annual rate 234,400 in December, down from 242,600 in November, according to CMHC. For the year, however, new home construction posted a 17-year high in 2004 reached an estimated 233,000 starts, up 6.7% over 2003 — and a 17-year high. Residential construction in December fell 3.8% to a seasonally adjusted annual rate of 205,900 units, although urban single detached starts inched higher (+0.9%), while urban multiple starts declined 8.1%. December is expected to mark the beginning of a trend, as housing starts are forecast to decrease 9.8% to reach 210,200 units in 2005.The price of new homes in Canada rose 5.3% in November compared with the same month in 2003, according to Stats Canada’s New Housing Price Index.

OVERHEARD…

“We are staying on our strategy of enhancing the core, extending the business and expanding the market.” — Bob Nardelli, president, chairman and CEO of Home Depot, during a conference in Atlanta last week for the investment community.

We are currently looking for a Chief Financial Officer at our Corporate Office in London, Ontario.

We offer a competitive salary and benefit package. Please apply by January 17th to:

TSC Stores Ltd.
1950 Oxford Street E.
London, Ontario
N5V 2Z8
Fax: 519-451-1235
e-mail: humanresources@tscstores.com

DIRECTOR, INDUSTRIAL SALES

DIRECTOR, SALES & MARKETING—HOME DEPOT

DIRECTOR , RETAIL SALES

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DIRECT MARKETING MANAGER-Harrisburg, PA

This well-established home improvements company has built their success on top quality service for window, door and siding products and recently added the Owens-Corning basement finishing system to their portfolio. Business growth requires the addition of a Marketing Manager to complement their existing management team. Reporting to the President, he/she will operate and manage all marketing staff and programs to obtain leads for their inside and outside sales forces. Consumer marketing areas include marketing collateral development, direct mail programs, media buys, referral programs development, community relations, trade show involvement and market trend analysis.

Currently a US-based Manager, others would typify you as the “lead generation guru” in a home improvement firm that knows how to get the most out of your staff. Open and forthright, you’re good at developing two-way communication channels throughout your company and managing by example. Home improvement company experience is essential.

Located in central Pennsylvania with Baltimore, Washington and Philadelphia all in relative proximity, Harrisburg is a family-friendly community that recently ranked as America’s #2 least-stressful city.

To inquire further about this opportunity, please contact Wolf Gugler in strict confidence, quoting Direct Marketing Manager-PA.

Wolf Gugler & Associates Limited, 1000 West Wilshire, Oklahoma City, OK 73116. (405) 848-3006 email: resumes@wolfgugler.com Web site: www.wolfgugler.com

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U.S. REGIONAL SALES DIRECTOR

A highly successful Canadian firm is taking advantage of their extensive product line and business success in an up economy by spearheading their new US efforts. To assist in this, a Regional Sales Director for the Northeastern US is sought. Reporting to the VP, Sales, the Director will communicate the company’s strategic direction, goals and values to sales staff in NY, NJ, NH, MA, PA and Ohio.

Currently a US-based Manager, you can demonstrate the proven ability to optimize retail Customer & market mixes, maximize sales returns (margins) within a region, and are able to get the most out of your staff through open, consistent communications, motivation and follow-up processes.

To inquire further about this opportunity, please contact Wolf Gugler in strict confidence, quoting Regional Sales Director-US.

Wolf Gugler & Associates Limited, 1000 West Wilshire, Oklahoma City, OK 73116. (405) 848-3006 email: resumes@wolfgugler.com

Web site: www.wolfgugler.com

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SERVICES OFFERED

EXPERIENCED REP AGENCY SEEKS ESTABLISHED LINES

For details, please contact Shawn Hamill, at Indusport Agencies, (519)239-3534, or indusport@primus.ca.

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WHETHER OR NOT IT GETS PAINFUL IS UP TO YOU.

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Your products deserve the best representation they can get. NORAL MARKETING knows the Canadian retail customer. Don’t settle for anything less!

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

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Hardlines is published weekly (except monthly in December and August)
by McLARNEYCOM
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ï¿½ 2004 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
Nancy Wright, Circulation Manager: nancy@hardlines.ca
Phyllis Nowell, Sales Manager: phyllis@hardlines.ca
______________________________________________
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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!
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Jan. 10, 2005

John Caulfield, Contributing Editor

vol. xi, #2, January 10, 2005

IN THIS ISSUE:
•Home Depot expands supply side in Canada
•Western Tool’s Canadian takeover goes smoothly
•Lowe’s opens new DC
•Wintermans gone from Sodisco-Howden
•New Canadian hardware show heavy on décor
•Vet gets leg up from True Value dealer
•Lowe’s targeted by crooks
•Sears acquires appliance buying group

* * * * * *
NOTE: Dollar amounts are stated in the currency of the country from which the story originates.
— Michael McLarney, Editor & Publisher

* * * * * *

“It’s better to burn out, than it is to rust.”
— Neil Young (from “Rust Never Sleeps”)

HOME DEPOT ACQUISITION MAKES PLAY FOR CANADIAN C/I BUSINESS

MONTREAL — With the recently announced acquisition of a national commercial lighting distributor, Home Depot Canada is aggressively moving its sights to the huge commercial and institutional market in Canada, considered a natural extension of its growing business with contractors.Montreal-based Litemor, which has 11 distribution centers in Canada and two in the U.S. (Boston and New York), was acquired last week by Canada’s largest home improvement retailer, and will become part of Home Depot Supply Canada. The company expects the Litemor deal to be just one of many more to come, says Home Depot Canada prez Annette Verschuren. Leading the division here is a veteran of Home Depot Supply in the States, Ron Turk. In Quebec, the division is called Home Depot Commercial Direct.Commercial, institutional and property management customers can order from Home Depot by phone, fax or email, through a centralized call center located in the U.S. “But we’re looking into that up here in Canada,” says Turk.

“It’s the beginning of a strategy to expand Home Depot Supply in Canada,” says Verschuren. The potential is huge, she adds, for all sectors of C/I service. The commercial lighting side alone offers a $10 billion opportunity in the near term, she says

Home Depot Supply in the U.S. has been expanding aggressively through a series of acquisitions in recent years, and now it’s Canada’s turn. “We’re a little behind, frankly, and we want to catch up,” says Verschuren.

That catch-up should happen fast, suggests Turk. Thanks to the expertise acquired in the U.S., he says growth here will be accelerated.

Verschuren wouldn’t disclose how much the Litemor acquisition will add to Home Depot Canada’s sales, nor would she reveal Home Depot’s sales in Canada, but we estimate them to come in at least $5 billion in 2004.

HOUSE OF TOOLS FINDS TRANSITION SMOOTH FOLLOWING BUYOUT

CALGARY — Western Tool Supply’s plan for blending its corporate culture with that of House of Tools, which it acquired in May of 2004, is progressing well, according to Steve Hunter, CFO for House of Tools and Western Tools.Hunter is part of the transition team overseeing the consolidation between Western Tool and the nine-store chain House of Tools, which has enjoyed great success selling power tools through its on-line presence and in its retail locations in British Columbia, Alberta, and Saskatchewan.The transition so far, he says, has been very smooth. “I think that’s partly because we recognize that when you enter into a situation where there is a cultural change, the first thing you do is to build trust,” says Hunter, “We are spending time doing that.”

One of the changes that Hunter hopes will become apparent to customers is better pricing. With increased buying power from Western Tools, which has 51 stores stateside, customers should begin to notice even more competitive pricing, especially if the Canadian dollar remains strong.

LOWE’S OPENS CONNECTICUT DISTRIBUTION CENTER

PLAINFIELD, Conn. — Lowe’s Cos. opened its 1.36 million-sq.ft. distribution center here on January 3, with about 400 of the 700 employees who will eventually staff this facility when it’s fully operational in March.The $90 million DC, built to serve Lowe’s stores in New England and New York, will eventually receive product through 250 loading bays. The complex has parking for 732 18-wheel trucks, according to Eric Reed, the facility’s human resource manager, who was quoted in The Day of Greenwich, Conn.The construction of this DC embroiled Lowe’s in some controversy last year because the retailer received $20 million in tax abatements from the city to place the warehouse in Plainfield. To assuage local residents who opposed this project and have complained about noise from the construction and trucks, Lowe’s has pledged to help pay for a barrier to separate the DC from surrounding homes.

CANWEL CHANGES GUARD AT SODISCO-HOWDEN

MONTREAL — Changes are already afoot at Sodisco-Howden Group, following the purchase of 83% of its common shares in a friendly takeover by CanWel Building Materials. Tom Donaldson, president and CEO of CanWel Building Materials Ltd., is now president of Sodisco-Howden Group. Amar Doman, chairman of CanWel, is also chairman of Sodisco-Howden.Gone is former president and CEO Jos Wintermans, who cannily maintained Sodisco-Howden’s fortunes amidst a fiercely competitive business environment and an ever-narrowing customer base. Also gone is CFO James Shannon.While a purge was expected, the new organization is at odds with Donaldson’s previous assertion to Hardlines that the two businesses will be run separately. That separation is being watched carefully by many existing CanWel customers that are competitors to Sodisco-Howden. Both Home Hardware and Rona, which together account for at least $200 million of CanWel’s $540 million in sales, have said they will take a wait-and-see approach to the takeover before making any decisions about its LBM sourcing.

Calls to CanWel were not returned, but I’ll let you know more as details are forthcoming.

NEW CANADIAN HARDWARE SHOW COUNTS ON DÉCOR

ATLANTA — The newly reformed Canadian Hardware Show is getting closer to its “launch” date under a new name and owner. Now called H²X, it’s being held in conjunction with the Paint and Decorating Retailers Association’s own convention and show, now called D²X. It will be held February 19-22 at the Congress Centre, near the Toronto Airport.The combined event, owned and organized by Messe Frankfurt, the international trade show company with North American headquarters here in Atlanta, so far has 142 exhibitors representing more than 200 companies. About 125 of those exhibitors represent paint and décor related companies.Only two months ago, PDRA had only 26 exhibitors signed up. According to Kathy Witmeyer, director of membership, education and trade shows at the PDRA, the boost in exhibitors came within the past few weeks, with “lots of last-minute calling” and promotions.

Daniel McKinnon, director of North American trade shows for Messe Frankfurt, admits that getting this one off the ground has been “challenging.” But despite the exhibitor numbers, he remains optimistic. “A lot of bigger [companies] we were counting on to support the show are still in, including Rona and Home Hardware, which both have large booths,” says McKinnon.

Messe Frankfurt’s goal was to reach 200 exhibitors; McKinnon is confident the final tally will be close, estimating a total of 180-plus when the show doors open. In a separate interview, Roland Bleinroth, president of Messe Frankfurt North America, insisted his company is prepared to make an investment in the Canadian show, even if it means taking a loss on it in the first year.

The show will maintain a seminar program. Although they’re mainly certificate courses geared for the paint and décor delegates within the PDRA, eight seminars will be offered that have wider appeal for hardlines delegates. Topics include competing against big boxes, succession planning, and effective PR.

The show will feature two keynote speakers. On Monday, Robert Dutton, president and CEO of Rona inc., will speak, and on Tuesday, Bill Morrison, president and CEO of TruServ Canada, will take the podium.

VET GETS HOME MAKEOVER COURTESY OF TRUE VALUE

KEYSTONE HEIGHTS, Fla. — Keystone Building Center, a member of the True Value hardware co-op (formerly TruServ), joined forces with A&E’s “At Home With the Brave” program to give a surprise home makeover to local hero, Sergeant First Class Scott Hall. “At Home With the Brave” is a one-hour special on A&E that aired last month, celebrating small-town heroes returning from Iraq and reuniting with their families for the holidays.Sergeant Hall has served in the military for 14 years including operations Just Cause (Panama), Desert Storm, and now Operation Iraqi Freedom. He also plans on serving in Afghanistan next year. His wife Pam volunteers at Camp Blanding for Family Readiness, which helps military families prepare for separation. She also home schools their son, who suffers from Tourette Syndrome, while also documenting missed moments for her husband of their two-year-old daughter’s “firsts.” The Hall family was struck with devastation when Scott was hit with shrapnel from a bomb that struck his face in Iraq. While back in Florida, the Hall’s home was ravaged by Hurricanes Frances and Jeanne.A&E’s “At Home With the Brave” selected the Hall family and requested assistance from local merchants. Keystone Building Center donated approximately $10,000 in product donations such as wood, concrete and tools.

SEARS CANADA ACQUIRES FURNITURE, APPLIANCES GROUP

TORONTO — Sears Canada Inc. has agreed to acquire Cantrex Group Inc. from a Canadian subsidiary of General Electric Capital Corp. Cantrex is Canada’s largest buying group representing independent merchants of furniture, appliances, electronics, photography equipment and floor coverings. The acquisition also includes Corbeil Electrique, a wholly owned Cantrex subsidiary based in Montreal with 27 appliance stores mainly in Quebec.Cantrex has 1,300 independent retailers, with names like Mattress World and Furniture Plus, that sell furniture, electronics and appliances. The deal will give Sears Canada more points of sale throughout the country, and allow it to beef up its volumes through the Sears distribution and logistics system, which is already adept at shipping products to just about anywhere in the country. Cantrex will operate as a wholly owned subsidiary of Sears.Sears Canada already works with more than 200 independent retailers, including Sears Dealer stores and Floor Covering Centres, plus more than 2,200 catalogue agents. “Our experience in these businesses has helped us to understand the unique and important role that local owner/managers bring to their customers, said Brent Hollister, president and CEO of Sears Canada, in a prepared statement. “Acquiring Cantrex provides these merchants with the advantages of a major retailer.”

FROM THE HARDLINES POLICE BLOTTER: CRIME INVADES LOWE’S

SPECIAL REPORT — Home improvement and hardlines dealers unfortunately fall victim to shoplifters and scam artists every day. But over the past few weeks, Lowe’s Cos., the industry’s second-largest retailer, has been mentioned prominently in news reports about criminal activities that involved several of its stores:• In Jackson County, Mich., investigators for Lowe’s and Blackmun Township in Michigan nabbed a suspect who allegedly ran up over $50,000 in fraudulent credit card purchases in four counties. The Jackson County Citizen-Patriot reported that the suspect was detained when he arrived at a Lowe’s store to pick up a refrigerator/freezer and range valued at $1,500.• A U.S. district judge in Charlotte, N.C., sentenced one of three Michigan men who tried to hack into Lowe’s information technology system to a nine-year prison sentence. This term is reportedly the longest sentence ever handed out for a hacking offence in U.S. history. Another co-conspirator was sentenced to 26 months in federal prison. The accused had pleaded guilty to the crimes in August.

• A man sitting in his car near the loading dock of Lowe’s store in Winchester, Ky., was fatally shot on Dec. 27. The police have no suspects, and the victim had not been identified by authorities at press time.

COMPANIES IN THE NEWS

TOANO, Va. — Lumber Liquidators, the largest hardware flooring specialty dealer in the U.S., has negotiated $35 million in new financing through an investment made in the company by TA Associates, one of the country’s largest private equity and buyout firms. The company says the financing will be used to expand the company, which currently operates 60 stores. As for Boston-based TA, it is investing in what its managing director, Richard Tadler, called “the stand-alone leader in hardwood flooring,” a market that grew by 6% to $2 billion in 2003. Lumber Liquidators operates a 360,000-sq.ft. distribution center in Virginia, and operates stores in 34 states and the District of Columbia.BOLTON, Ont. — TORBSA Ltd., the LBM buying group serving specialty dealers in Ontario, has added two new members: Hewson Brothers Supply Ltd. and Pro Con Building Supplies Ltd., both of Brampton, Ont. Both companies have been supplying the GSD trade for more than two decades, serving primarily new residential construction. Along with the addition of Ottawa-based Morin Bros. Building Supplies, which joined TORBSA in September 2004, total membership in the group is now 28.ST. JACOBS, Ont. — Home Hardware Stores presented a cheque for a whopping $250,000 to the relief efforts coordinated by the Red Cross for areas severely hit by the earthquake and tsunami in South East Asia. Funds were raised from donations that poured in from Home hardware dealers across Canada to provide immediate relief and basic assistance to the people affected by the tropical disaster. Home Hardware’s corporate goal is to raise a total of $500,000.

MONTREAL — Sodisco-Howden Group refinanced its line of credit last week, in its new status as a subsidiary of CanWel Building Materials Ltd. It renewed and increased its stand-alone credit facilities to a maximum of $75,000,000, with Congress Financial Corp. (Canada). The facilities’ rates are floating based on prime, and are for a term ending September 30, 2007. Congress is the lead bank of Sodisco-Howden’s parent, CanWel. CanWel owns 83% of Sodisco-Howden’s common shares.

TORONTO — Just in case you missed this, Home Depot Canada has moved its head office from the Ellesmere store in Scarborough to: 1 Concorde Gate, Suite 900, Toronto, Ont. M3C 4H9. Easy to find — it’s only about 10 minutes east of the World Headquarters of Hardlines. Phone numbers stay the same.

FORT WAYNE, Ind. — Do it Best Corp. recently expanded its online order fulfillment capabilities so that products are now shipped from six of its retail service centers across the U.S. The co-op expects that this change will result in faster delivery to online customers, as well as overall improved efficiencies. Prior to September 2004, all online orders originated from the co-op’s RSC in Cape Girardeau, Mo. Now, online orders wil also be shipped from its RSCs in Montgomery, N.Y., Dixon, Ill., Woodburn, Ore., Lexington, S.C. and Waco, Tex. Two more RSCs will be added by the first quarter of 2006.

NEW YORK — Rayovac Corp. is going to buy United Industries Corp., a St. Louis, Mo.-based maker of lawn and garden products. The number-three battery maker is looking to diversify beyond its core business, and will pay about $476 million in cash and stock, and assume about $880 million in debt for a cash tax benefit of about $140 million. United’s brand names include Spectracide and Cutter.

NORWALK, Conn. — City of Hope, a world-renowned cancer center and popular home improvement industry charity, will host its annual Spirit of Life Award event this year in conjunction with the 2005 National Hardware Show in Las Vegas. City of Hope is an innovative biomedical research, treatment and educational institution. Located near Los Angeles, City of Hope is dedicated to the prevention and cure of cancer, HIV/AIDS, diabetes, and other life-threatening diseases. Each year, it honors industry leaders for notable contributions to both their community and profession. The 2005 award dinner will take place May 18, 2005. This year, Paul Hylbert, president and CEO of Lanoga Corp., will be honored for his outstanding business and philanthropic leadership.

HONG KONG — Techtronic Industries Co. Ltd. was ranked among the top three best-managed companies in Asia, and came in second as best-managed company in Hong Kong. The list was compiled by Asiamoney, a financial magazine covering corporate Asia, based on votes submitted by fund-management firms and brokerages in the Asia-Pacific region. Founded in 1985, TTI employs more than 20,000 worldwide and represents a global brand portfolio that includes Ryobi, Milwaukee and AEG.

CHICAGO — As baby boomers get older, they are less inclined to do it themselves. That’s why big boxes are counting on installed sales for big growth. Lowe’s expects installed sales to reach $2 billion at the end of the current year, up from $1.5 billion, accounting for about 5% of revenue.

MISSISSAUGA, Ont. — Wal-Mart Canada has been ranked the country’s best retailer to work for in Canada. This according to the annual “50 Best Employers in Canada” list just published by Report on Business magazine. It’s the third time in four years that Wal-Mart has been named the best place to work in the Canadian retail industry. It was also ranked the eighth-best company overall to work for in Canada, up from its ranking last year as number 14 overall.

PEOPLE ON THE MOVE

Jay Gregg has joined Supplierpipeline Inc. as Director of Sales for Supplierpipeline Inc., a company that owns LITE ladder, and sells Jackall jacks and Jacmorr brackets and work stands. He was formerly with Loglac Industries as director of sales and marketing. (1-800-567-0864)

NOTED…

TORONTO — Canadians are turning to internet shopping in a big way and retailers such as Canadian Tire are making big gains, says the latest comScore survey. Traffic at Canadian Tire’s website was up 37% over the previous year and Chapters-Indigo was up 52%. In addition, Ikea was up 56%; Rona, up 43%; Sears, up 6%; and Hudson’s Bay Co. had a 17% increase.

We are currently looking for a Chief Financial Officer at our Corporate Office in London, Ontario.

We offer a competitive salary and benefit package. Please apply by January 17th to:

TSC Stores Ltd.
1950 Oxford Street E.
London, Ontario
N5V 2Z8
Fax: 519-451-1235
e-mail: humanresources@tscstores.com
(01.10.17.24/05)

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DIRECT MARKETING MANAGER-Harrisburg, PA

To inquire further about this opportunity, please contact Wolf Gugler in strict confidence, quoting Direct Marketing Manager-PA.

Wolf Gugler & Associates Limited, 1000 West Wilshire, Oklahoma City, OK 73116. (405) 848-3006 email: resumes@wolfgugler.com Web site: www.wolfgugler.com

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NATIONAL ACCOUNT MANAGER

Our client a tier one supplier to the “Big Box Stores” is expanding again. Working from the client’s Toronto GTA office the National Account Manager will be responsible for consumer hardware head office accounts. The idea candidate will have a proven record a proven record of sales to head offices like Home Depot and Rona. You will be computer literate and have a record of achievement. Please apply in confidence to Rick Harrison at A.E. Harrison & Partners Inc. (www.aeharrison.com) by email address resumes@aeharrison.com

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NATIONAL ACCOUNTS MANAGER

Reporting to the GM, a leading manufacturer is seeking a National Account Manager in Mississauga. You will be responsible for major accounts in Ontario and eastern Canada (Wal-Mart experience essential).

A hands-on and innovative professional who interacts at all levels; you will prepare proposals, quotations, promotional offerings, plan, budget, and organize promotional advertising, participate in trade shows, demos, and forecast sales volumes.

Customer focused and an excellent communicator, you have 5 years’ related experience and a Business/Economics degree. You are computer literate and bilingual (French & English) and are able to travel as required.

The Company offers a competitive salary and benefits program along with a good working environment. Please submit your confidential resume outlining accomplishments, objectives, and salary expectations along with a cover letter describing how your background fits the position to buzz@hardlines.ca P.O. Box 335.

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AGENTS AND FULL TIME SALES REPS

ARE YOU A TOOL FOOL? We are looking for agents in BC, Alberta, and the Maritimes to sell a line of quality tools. Experience in tools an absolute necessity. Also seeking a full time sales rep to do the same in Ontario. Company is a mid-sized tool importer selling to the retail, industrial and electrical markets. Send resume and/or line card to buzz@hardlines.ca, P.O. Box 435.

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SERVICES OFFERED

EXPERIENCED REP AGENCY SEEKS ESTABLISHED LINES

For details, please contact Shawn Hamill, at Indusport Agencies, (519)239-3534, or indusport@primus.ca.
(01.10.17.24/05)
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WHETHER OR NOT IT GETS PAINFUL IS UP TO YOU.

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

Your products deserve the best representation they can get. NORAL MARKETING knows the Canadian retail customer. Don’t settle for anything less!

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

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

MAKE THE VERY BEST OF IMPRESSIONS!

For all your gifting needs contact myself, Ty Ottey:
by email at ty@howyouexpress.com or by telephone at 905.209.0079 ext. 2

www.HowYouExpress.com

Expressions by Ty is a division of Integrated OmniMedia.

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

MARKETPLACE

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 .

ONLY $2.50 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL PHYLLIS NOWELL AT 416-489-3396 OR EMAIL: phyllis@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
ï¿½ 2004 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
Nancy Wright, Circulation Manager: nancy@hardlines.ca
Phyllis Nowell, Sales Manager: phyllis@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: $229 (Canadian subscribers add $16.03 GST = $245.03 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $36 (Canadian subscribers add $2.52 GST = $38.52). 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.

Jan. 3, 2005

John Caulfield, Contributing Editor

vol. xi, #1, January 3, 2005

IN THIS ISSUE:
• Why Totem sold to Rona
• Premdor sold to U.S. investor
• CanWel closes Sodisco-Howden purchase
• Retailers help tsunami relief
• Ace CEO Hodnik to retire April 1
• Home Depot boosts expansion for 2005
• Tim-BR-Marts gets serious with latest hire

* * * * * *
NOTE: Dollar amounts are stated in the currency of the country from which the story originates.
— Michael McLarney, Editor & Publisher

* * * * * *

“The universe is transformation; our life is what our thoughts make it.”
— Marcus Aurelius, (121-180 AD)“But I am just a pilgrim on this road, boys/ Until I see you, fare thee well.”
— Steve Earle (American musician, 1955-)

FACING TOUGH COMPETITION, TOTEM SELLS TO RONA

CALGARY — Rona’s done it again. This time it’s added Alberta’s top home improvement retailer, Totem Building Supplies, to its growing list of acquisitions.Totem president and major owner Jim Thorogood sold the 16-outlet chain, which dominates the Alberta market, for $100 million. Although the financial aspects of the deal are very favourable for Thorogood, he admits that from an emotional standpoint, “This was a very, very tough deal for me.” He refers to the well-run operation he leaves behind — and the 900 people behind that operation.Nonetheless, he found the task of remaining competitive into the future just too daunting. “In this business, you need every cent out of the business just to half keep up with the big guys,” Thorogood says. He adds that his company’s size, big as it is, makes it even more vulnerable. “We’re somewhere between being the little guy that’s going to be okay, and a big guy that’s not big enough.

“It’s really the issue of, long-term, how do you compete?”

Thorogood will remain in charge of the operation until the Competition Bureau approves the deal, which expected to happen by March, 2005.

SALE OF THE CENTURY: WHY TOTEM SOLD TO RONA

SPECIAL REPORT — When Rona announced right before Christmas the acquisition of Calgary-based Totem Building Supplies, it marked the conclusion of a legacy begun with a single store in Calgary in 1970. Now, after Totem president Jim Thorogood carefully rounded up control of the company, and as he approaches retirement age (he’s 59), this deal makes good sense for both sides. The $100-million cash deal provides a great succession strategy for Thorogood, who owns 80% of the company, and his son Ryan, who owns 20%.It also adds serious weight to Rona’s focus on growing its presence in Western Canada. That mandate has seen it establish a distribution centre in Calgary last spring, tied with active recruitment of independent dealers in the West.The deal also plays well to Bay Street, which is watching Rona’s growth with keen interest. (Rona’s share price jumped $1.15 on the news of the deal.) The Totem takeover will give Rona added presence in Alberta, where it previously had only 18 stores. With one fell swoop, that number will almost double, and revenue from Totem, which Thorogood says will top $260 million in 2004, will be added to Rona’s ledger for that year. In addition, Totem has two other locations under development, one being built in Lloydminister, Alta., and another that’s been secured in Okotoks.

As with the acquisition of Réno-Dépôt in 2003, the new stores will help Rona boost its presence — and credibility — with contractors. Although pros account for only 25-30% of Totem’s sales currently, these sales are an important competitive edge over Home Depot. Like Réno-Dépôt, the Totem stores are expected to operate under their own banner — for now.

U.S. INVESTOR TO ACQUIRE MASONITE

TORONTO — Masonite International, one of the largest door suppliers in North America, has agreed to be acquired by the New York-based investment firm Kohlberg Kravis & Roberts, which specializes in leveraged management buyouts. The selling price is $40.20 per share, or around US$3.1 billion.Masonite, which operated under the Premdor name before taking over Masonite in July 2001 from International Paper Co., makes and sells steel and wood doors and windows. It has 75 factories in 16 countries. It employs about 14,000 people and sells its products to customers in over 50 countries. Through nine months ended Sept. 30, 2004, Masonite’s sales were up 23.3% to C1.63 billion dollars, and its net income rose 28.2% to C$100.6 million.The company’s current management will stay on to run Masonite, and will be required to acquire a 5% stake in the company at the completion of this deal.

Masonite reportedly agreed to be acquired to help fund its international expansion, which has been quite active in recent months. Last March, Masonite acquired Stanley Works’ door business for $160 million. In May, it announced a deal for Kronodoor, which distributes into Central and Eastern Europe through manufacturing facilities in the Czech Republic and Poland. It also recently paid $25 million to acquire a 50% stake in a subsidiary of Samling Strategic Corp., which makes molded door facings at a factory in Malaysia.

Masonite expected to mail a proxy statement relating to this deal to its shareholders of record as of Jan. 17, 2005 by the third week of January, for a meeting that will be held on Feb. 18.

CANWEL COMPLETES PURCHASE OF SODISCO-HOWDEN

VANCOUVER — Just two days before Christmas, CanWel Building Materials Ltd. confirmed the takeover of all outstanding common shares of Montreal-based Sodisco-Howden Group Inc. CanWel, one of Canada’s leading building materials distributors, tendered the takeover bid through its subsidiary, CanWel Acquisition Inc., to buy what amounted to approximately 17.3 million, or 83%, of Sodisco-Howden’s total common shares.The deal went through on December 31, when CanWel Acquisition purchased the shares for $3.25 cash per share, which represents a 25% premium over the stock’s trading price at the time the deal was announced in early November. CanWel has also extended its bid to 12:00 midnight (EST) on Jan. 11, 2005 to allow any Sodisco-Howden shareholders who have not yet tendered their shares sufficient time to do so.With sales of approximately $542 million in 2003, and 13 distribution centres across Canada, CanWel hopes to broaden its role as a distributor to offer not just building materials and related products, but a full range of hardware. The new acquisition will create a $1 billion company. While Sodisco-Howden has significant LBM distribution in Quebec, for most of the rest of Canada, it supplies hardware. In fact, Sodisco-Howden is the only remaining full-line general hardware wholesaler left in the country that’s not owned primarily by its dealers.

“This is a significant milestone for this transaction, and for CanWel,” said Tom Donaldson, president of CanWel, in a prepared release. “We are excited about closing this transaction on Dec. 31, and look forward to having Sodisco-Howden join the CanWel organization.”

What’s not clear is how CanWel will position Sodisco-Howden alongside its existing business, which already sells LBM to many of Sodisco’s top competitors, primarily Rona and Home Hardware, both which are estimated to do at least $100 million apiece with CanWel. Donaldson told Hardlines in an earlier interview that both companies will be run separately, but he couldn’t be reached as of press time for further clarification. Watch in future issues as we track how this new distribution powerhouse will sort out its role in the industry.

RETAIL RALLIES TO HELP TSUNAMI VICTIMS

SPECIAL REPORT — As news of mounting casualties continues to flood the airwaves, retailers across the country are rallying to raise money for relief for victims of the devastating earthquakes and floods in Indonesia last week.St. Jacobs, Ont.-based Home Hardware Stores Limited will donate $250,000 to the relief efforts coordinated by the Red Cross. Dealers across Canada are sending in funds raised at their stores. Sears Canada has pledged $75,000 and is accepting donations, also on behalf of the Canadian Red Cross’s Asia Earthquake and Tsunami Relief Fund.Canadian Tire Corp., through its Canadian Tire Foundation for Families, donated $125,000 to the Relief Fund. It’s also launched a nation-wide campaign to collect additional relief funds. This is very cool: Martha Billes, controlling shareholder of Canadian Tire Corporation and chair of the Canadian Tire Foundation for Families, and her son Owen Billes, are matching the Foundation’s contribution, directing their donation to a variety of agencies providing relief in the region.

Wal-Mart Canada announced the launch of Project Tsunami Relief, a nationwide campaign accepting donations through all 242 Wal-Mart stores across Canada. A portion of the money raised will be matched through the company’s Local Matching Grant Program.

HOME DEPOT DOUBLES 2005 EXPANSION PLANS

TORONTO — Home Depot Canada will open 25 stores over the next 14 months, a big jump from the 13-15 outlets it has erected annually over the past three years.The stores, however, will include a number of smaller sized units, and even perhaps another “urban” neighborhood store like the ones that opened in North Vancouver in September 2004 and in Toronto’s east end in mid-December. The net increase, in terms of retail square footage, will be about 50% greater than in 2004.The next openings will be an 80,000-sq.ft.-plus store in Calgary North Hills in January, followed by three smaller, 60,000-sq.ft. stores: in Spruce Grove, a community near Edmonton; Chatham, Ont.; and Squamish, B.C.

CONSOLIDATION IN U.K. ATTRACTS HOME DEPOT’S INTEREST

LONDON — Did Home Depot try and buy the Wickes chain? Focus Wickes, the second-largest DIY retailer in the U.K., was recently split up and the Wickes business was sold to Travis Perkins, a British building materials supplier, for £950 million. The 250-store Focus chain, which is more DIY friendly than the pro-oriented Wickes banner, the country’s number-four chain, will remain in the hands of management and a private equity firm.But Home Depot was reportedly on the short list for the auction sale. The world’s largest home improvement retailer may have taken a pass at the number-two player in order to leave its options open for Europe’s largest DIY retailer, Kingfisher, which operates B&Q and Castorama. However, any past expressions of interest — expressed by Home Depot boss Bob Nardelli himself — have been obviated by the weak U.S. dollar versus the euro.The sale of Wickes to Travis Perkins will add 172 more outlets to TP’s own 740-store operation, which, like Wickes, primarily serves trade customers. The sale is conditional upon shareholder approval and government approvals. The deal will give TP a 10% share in the U.K. building materials market.

Meanwhile, consolidation continues apace on the world scene. Even as Home Depot keeps busy in North and Central America, it has opened offices in China, in anticipation of announced expansion there. And rumours have been percolating that it might be interested in Australia’s largest home improvement retailer, Bunnings.

ACE’S HODNIK TO DEPART APRIL 1

OAK BROOK, Ill. — Ace Hardware president and CEO David Hodnik has announced his plans to retire from the hardware co-op on April 1, 2005, ending a 33-year career with Ace.Ten of those years were spent as the head of Ace. During that time, the company realized a $1.3 billion increase in its wholesale hardlines sales, to a projected $3.3 billion in 2004. Ace also launched a number of key retail initiatives during that time, including the Helpful Hardware Club customer loyalty program and Discovery category management; the construction of five new state-of-the-art retail support distribution centers totaling some 3.5 million sq.ft.; and implementation of the Vision 21 strategic plan for Ace retailers.Ace’s board of directors has selected Ray Griffith, executive vice-president and COO, to replace Hodnik. Griffith, 51, joined Ace in 1994 as director of retail operations for Ace’s Western Division. He was named vice-president of retail development and marketing in 1997, vice-president of merchandising in 1998 and executive vice-president, retail in 2000. In April 2004, he was promoted to his current position of executive vp and COO.

Prior to joining Ace, Griffith was president of the former hardware cooperative Coast-to-Coast and held managerial positions with Osco Drug.

COMPANIES IN THE NEWS

HALIFAX — AWARD/TIM-BR Mart Atlantic, the LBM buying co-operative serving independent dealers in Atlantic Canada under the TIM-BR Mart banner, has received the CIBC “Spirit of Leadership” Community Award. This prestigious award recognized TIM-BR Mart’s community spirit and corporate giving programs through their timbrkids Children’s Foundation Inc. As part of the recognition, CIBC Commercial Banking donated $5,000 to the Pregnancy Care Centre in Yarmouth, on behalf of AWARD/TIM-BR Mart.ATLANTA — Home Depot has added heavy appliances to its online shopping catalogue. About 1,800 items will be added on its website to complement the appliance showrooms that first appeared in its stores in 2001. In the third quarter, Home Depot’s share of the major appliance market reportedly rose to 8.6%, from 6.2% a year earlier, based on units sold.LONDON — Europe’s largest DIY retailer, Kingfisher, had 3Q sales of £1.94 billion, up 8.2% from £1.79 billion from the same period a year earlier. Retail profit increased 6.7% to £190.0 million from £178.1 million. Year-to-date sales were up 9.2% to £5.89 billion, from £5.39 billion in 2003.

MISSISSAUGA, Ont. — Torlys Inc., a Canadian manufacturer of hardwood, cork, laminate and linoleum flooring, has signed an agreement with Big Coat Productions of Toronto to be the preferred flooring supplier for “My Parents’ House,” a new makeover program being produced for HGTV Canada. The focus of My Parents’ House is room makeovers for empty-nester parents done with professional design help by adult children who have moved away. The program is hosted by two designers, New Brunswick-born Emmanuel Belliveau and Andrika Lawren of Toronto.

OSHAWA, Ont. — Just before Christmas, Sears Canada Inc. opened Sears Appliances & Mattresses stores in Oshawa and Burlington, Ont., followed by the opening of a Sears Home store in Red Deer, Alta.

ATLANTA — Home Depot is reorganizing its store divisions, following similar moves last year. While the Western Division will remain intact, both the Central and East Divisions are being divided into North and South, in an effort to create further efficiencies, says the company. Last year, Home Depot rolled its Northwest Division into its West division.

VANCOUVER — West Fraser Timber Co. Ltd. received the go-ahead from the Canadian Competition Bureau on Dec. 17, 2004 to complete its acquisition of Weldwood of Canada from International Paper Co. The deal closed on December 31, 2004. One of the outstanding issues related to the sale was the price, which ended up being lowered by $30 million.

PEOPLE ON THE MOVE

Calgary-based Tim-BR-Marts Ltd. has hired Steve Stremecki as director of business development for Ontario and Western Canada. Steve comes over from BPB Westroc, where he served for many years, including as vice-president of marketing — North America. Most recently he managed the U.S. Division for Kenroc in Minneapolis. Stremecki will move to Calgary and he commences his duties on Jan. 10.Malcolm Orr has joined IKO Industries as Ontario sales manager. A 20-year veteran of Duchesne et Fils ltée, he is now be responsible for all of IKO’s Ontario sales representatives, and is involved in the customer service department. He reports directly to Art Stanfield, director of sales — Eastern Canada.Tom Taylor, 38, has been appointed to the newly-created position of executive vice-president — Home Depot Stores. The post gives him responsibility for execution across all of the company’s U.S. and Mexico stores. Taylor has been with Home Depot for 21 years, and since February 2003, he has been division president of the Eastern Division.

At Do it Best Corp., Timothy Miller has been promoted to the position of retail marketing manager, where he’s responsible for the group’s retail marketing division, which includes all advertising programs. Miller also oversees the co-op’s advertising and graphics management teams and manages the overall branding strategies for 6,000 private label products. Miller joined Do it Best in 1993, and served most recently as retail logistics manager.

Sears Canada Inc. has appointed David Merkley as interim CFO, effective Jan. 1, until a permanent CFO is appointed. In his current role as vice-president and corporate comptroller, Merkley has worked for a number of years with retiring CFO John Butcher.

U.S. MARKET INDICATORS

Housing starts in the U.S. suffered a whopping drop in November, says the Commerce Department, the biggest since January 2004. Starts on new homes and apartments were down 13.2% to a seasonally adjusted annual rate of 1.77 million from a 2.04 million pace in October. Construction intentions, as measured by building permits, were down 1.5% in November to an annual rate of 1.99 million.

CANADIAN MARKET INDICATORS

Wholesale sales rose by 0.2% in October, after tumbling 1.8% in September, reports Stats Canada. Wholesalers sold goods and services worth $37.7 billion in October. The weakness in wholesale sales in the past two months coincided with the slowing down of international trade and the manufacturing sector. The wholesale building materials category’s sales were up 2.7%, one of only two sectors to show an increase.

OVERHEARD…

“There’s nothing wrong with retirement, as long as it doesn’t interfere with one’s work.” — Les Groves, aka “Mr. Hardware,” former vice-president of sales and marketing for Stanley Canada, Fellow of the Door and Hardware Institute, and former columnist for Hardware Merchandising, enters 2005 celebrating his 70th year in the hardware industry. Congratulations, Les!

DIRECT MARKETING MANAGER-Harrisburg, PA

To inquire further about this opportunity, please contact Wolf Gugler in strict confidence, quoting Direct Marketing Manager-PA.

Wolf Gugler & Associates Limited, 1000 West Wilshire, Oklahoma City, OK 73116. (405) 848-3006 email: resumes@wolfgugler.com Web site: www.wolfgugler.com

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NATIONAL ACCOUNT MANAGER

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

WANTED: ADMINISTRATION ASSISTANT

We seek a dynamic support person to work in a small, mid-town publishing company. A dedicated self-starter, you’re not afraid to wrestle our new database to the ground one minute, and pick up the phone to deal with an ad customer the next.

Your role:
update and maintain our new database (Filemaker Pro)
develop promotional mailing lists and perform mail merge
Answer and screen calls when needed
Assist the Sales & Marketing Director to follow up and manage classified ad sales; and prepare ad proposals and promotional schedules.

Your skills:
detail oriented, deadline driven, flexible
software proficiency: Word, Excel, Outlook
Functionality: Dreamweaver preferred,but not essential
Bilingual English/French a plus!

Reply in confidence to Beverly Allen at 416-489-3396 or email bev@hardlines.ca

We thank all applicants for their interest; however, only those under consideration will be contacted.

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U.S. REGIONAL SALES DIRECTOR

To inquire further about this opportunity, please contact Wolf Gugler in strict confidence, quoting Regional Sales Director-US.

Wolf Gugler & Associates Limited, 1000 West Wilshire, Oklahoma City, OK 73116. (405) 848-3006 email: resumes@wolfgugler.com

Web site: www.wolfgugler.com

**********************************************************************************
NATIONAL ACCOUNTS MANAGER

**********************************************************************************
AGENTS AND FULL TIME SALES REPS

**********************************************************************************
SERVICES OFFERED

WHETHER OR NOT IT GETS PAINFUL IS UP TO YOU.

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

Your products deserve the best representation they can get. NORAL MARKETING knows the Canadian retail customer. Don’t settle for anything less!

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

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

MAKE THE VERY BEST OF IMPRESSIONS!

For all your gifting needs contact myself, Ty Ottey:
by email at ty@howyouexpress.com or by telephone at 905.209.0079 ext. 2

www.HowYouExpress.com

Expressions by Ty is a division of Integrated OmniMedia.

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

MARKETPLACE



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	800.245.9265 www.zircon.com

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 .

ONLY $2.50 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS.
TO PLACE YOUR AD, CALL PHYLLIS NOWELL AT 416-489-3396 OR EMAIL: phyllis@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
ï¿½ 2004 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
Nancy Wright, Circulation Manager: nancy@hardlines.ca
Phyllis Nowell, Sales Manager: phyllis@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: $229 (Canadian subscribers add $16.03 GST = $245.03 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $36 (Canadian subscribers add $2.52 GST = $38.52). 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.

Dec. 13, 2004

John Caulfield, Contributing Editor

vol. x, #50, December 13, 2004

IN THIS ISSUE:
• BMR anticipates big growth in Atlantic Canada
• Totem veteran will retire at year’s end
• Quebec consumer renovation habits revealed
• Forest City pays dividend on forestry sale
• Bosch faces product recall
• Cologne’s newest show gains support
• Quebec co-op anticipates strong 2005

* * * * * *
HAVE A SAFE AND HAPPY — AND RESTFUL — HOLIDAY! This is our last issue until Jan. 3, but the World Headquarters remains open until Dec. 22. We will be closed Dec. 23-28. — Michael

* * * * * *
NOTE: Dollar amounts are stated in the currency of the country from which the story originates.
— Michael McLarney, Editor & Publisher

* * * * * *

“You may say I’m a dreamer, but I’m not the only one.”
— John Lennon (who was murdered, at the age of 40, exactly 23 years ago last week)

BMR ANTICIPATES STRONG FUTURE FOR MATRECO SUPPLY DEAL

QUEBEC CITY — Sales of hardware products by Le Groupe BMR reached new heights this fall, as the provincial wholesaler and LBM buying group took record levels of hardlines orders at its recent dealer market here.During the market, held here at the end of November, BMR dealers placed orders for $30 million worth of hardlines, up from $21 million in 2003. BMR president Yves Gagnon sees these sales to his own members as only one part of the overall picture for BMR. The company has also been selling hardlines to fellow Matreco members TIM-BR Mart Ontario (now part of Tim-BR-Marts Ltd.) and AWARD in Atlantic Canada, under a partnership arrangement called Quincaillerie Matreco Hardware. Gagnon expects big growth from QMH.In fact, he anticipates upwards of $190 million in sales through the fledgling hardware distribution business for 2004. And over the next three years, he expects that to grow to between $210 million and $240 million in annual shipments.

“Honestly, I think we can go to $300 million, but my personal goals are very high,” says Gagnon. “We’ve budgeted for $250 million.”

Given the success of hardware sales among BMR’s own dealers in francophone Canada, Gagnon anticipates strong potential for QMH in Atlantic Canada, where AWARD has installed a distribution centre of its own (ADL). “I think Atlantic Canada will grow, but it’s hard to tell you how much, because it’s just started. But it will grow,” he adds confidently.

RECALLS HIT GARDEN CART AND SAW CATEGORIES

WASHINGTON — Leading suppliers of garden carts and table saws have agreed to voluntarily recall products that were sold in stores operated by the three largest dealers in the U.S.The Consumer Product Safety Commission, based here, disclosed last week that Robert Bosch Tool Corp. would recall about 120,000 table saws because of potential problems that could expose users to injury or electric shock. CPSC also reported that LG Sourcing Inc. and Lowe’s are jointly recalling about 200,000 garden carts because metal tire rims could break when tires are over-inflated, causing metal pieces to strike their users.There have been four reported incidents of the tire over-inflating and causing the metal rim of the GardenPlus Industrial Garden Cart to break. Three injuries were reported, including a fractured wrist, fractured fingers, and bruised hands.

The commission has received 11 reports of loose or broken motors from Bosch’s Skil Table Saw Model 3400 saws, and while no injuries or property damaged have been reported, CPSC said the drive mechanism on the table saw may loosen, possibly causing laceration, or the motor could separate from the tool, potentially striking the user or posing a hazard of electric shock.

The table saws, made in Taiwan, were sold at Home Depot, Lowe’s, Menards and other independent hardware retailers nationwide from July 2002 through October 2004 for $149-$199. The Garden Carts are made in China and sold for about $70.

TOTEM VETERAN RETIRES AT YEAR END

CALGARY — After more than 30 years with the company, Colin Robertson will leave his post as vice-president marketing at Totem Building Supplies for retirement.Robertson started out working in the yard at Totem’s flagship store in Calgary, where he did everything from cut boards to build trusses. He was later moved to sales, which led to the manager’s job at Totem’s Edmonton store. He returned to head office in 1981.From that time, Robertson has seen Totem grow from a $12-million operation with five stores to one of the country’s top 10 retailers, with sales in 2004 of $233 million. The company added its 14th store back in the spring.

“The most satisfying part of the job for me was the last 10 or so years, when we took on the big boxes,” says Robertson. “And we’re still thriving. We’re still doing well. They’re still thriving,” he adds, “but we’re co-existing very well.”

In recent years, besides the marketing function, Robertson had been charged with overseeing the flyer programs for Totem, as well as its growing range of package sales, which include garages, fences, decks and sheds. He intends to spend the initial months of his retirement relocating personally to Canmore, Alta.

QUEBEC ASSOCIATION LAUNCHES CONSUMER SPENDING REPORT

MONTREAL — The Quebec association for building materials dealers, ADMACQ, has unveiled a very cool research report that tracks the home improvement spending habits of Quebecers. And the results show that they’re hard-line DIYers.In fact, 51% of households surveyed admitted to having done some kind of renovation work in their homes during 2004 — and 89% of those respondents said they did the work themselves. Surprisingly, work done actually exceeded reno intentions, the survey revealed. Over half the renovations undertaken were the result of emergency situations, and therefore not planned.The report, “Les Quebecois et la renovation,” features the results of a poll of 3,700 Quebec households that queries them on their renovation spending intentions for building materials. The ongoing study is done in conjunction with the marketing research firm L’Observateur. The project was unveiled at a special lunch reception here last week, hosted by ADMACQ president and general manager Donald O’Hara, who also conceived the project.

For more info on purchasing the full report, Contact Donald at info@admacq.qc.ca; or 450-646-5842.

FOREST CITY PAYS DIVIDEND ON SALE OF FORESTRY DIVISION

CLEVELAND — Forest City Enterprises, the real estate conglomerate based here, last week declared a special cash dividend of 20 cents per share in recognition of its sale last month of its lumber distribution division. That unit, the Portland-Ore.-based Forest City Trading Group, was sold to its employees for an estimated $39 million. Of that total, $35 million was paid in cash, and Forest City expected to report a $22 million pre-tax gain from that transaction.Forest City Trading, the largest lumber wholesaler in North America, is an umbrella organization consisting of 11 different businesses that operate under several names, including American International Forest Products, Buckeye Pacific, Chesapeake Trading Group, Vancouver-based Olympia Industries, and Seaboard International Forest Products. The wholesaler has customers in all 50 states and in Canada. Annually, Forest City’s trading companies are responsible for just over $3 billion in sales, representing shipments of 115,000 trucks and 56,000 railcars of lumber.Forest City Enterprises said it sold the forestry company because it is no longer a strategic fit with its business model, which focuses on real estate development.

SUPPORT GROWS FOR NEW ASIAN SOURCING SHOW

COLOGNE, Germany — Registrations are on the rise for the first-ever Asia-Pacific Sourcing show, with more than 500 manufacturers distributors from the Far East booked to showcase their wares here February 27 to March 1, 2005.Asia-Pacific Sourcing is an alternative to two of its shows, Practical World — the International Hardware Fair — and Gafa, the lawn and garden show. These shows are now biennial, and in the off-years (commencing 2005), Asia-Pacific Sourcing will feature products, innovations and trends from the home improvement, garden and leisure sectors.About 20 groups will be part of the show, including exhibits from growth markets such as China, Hong Kong, Taiwan, Singapore, and Thailand. A number of visitors and buyers from North America and Europe have already registered for the fair, as well, including representatives of Hornbach and Wal-Mart USA.

Information on the show can be found at www.asiapacificsourcing.de, where you can avoid the 50-euros entrance fee if you register by February 25, 2005.

SALES UP 15% AT COOP FÉDÉRÉE’S LATEST MARKET

Trois-Rivières, Que. — La Coop fédérée held its annual trade fair for its Hardware and Building Materials Department. Hardware outlets affiliated with the provincial co-op, operating under the CO-OP and Unimat banners, have the opportunity to hook up with suppliers. Orders signed at the show reflect the health of the stores in this sector: sales were up more than 15%, indicating optimism for the year ahead. Sales have, on the whole, increased by nearly 60% over the past six years for La Coop fédérée’s hardware and home improvement dealers.Throughout both days of the “Coopérama,” representatives of 155 CO-OP, eight Unimat and 26 independent stores took advantage of the event to place their orders for the upcoming year.Exhibitors filled 220 booths at this year’s show, which was held under the theme, “The meeting of champions.” A big push was made on décor, including a large vignette (27 ft. by 43 ft.) allowed buyers to view and experience the sales potential provided by interior design items.

La Coop fédérée, with its network of affiliated cooperatives, is the fourth largest enterprise in Quebec with sales of $4.2 billion and is ranked eighth among Quebec’s employers, with more than 13,000 employees.

COMPANIES IN THE NEWS

SANTIAGO, Chile — The Worldwide DIY Council, an association of active U.S. and Canadian exporters, held its annual meeting here recently (see also People on the Move). Several dozen Council members exhibited their products at a table-top show in conjunction with the meeting. Buyers from throughout Chile attended the show and buyer reception, including multiple representatives from the three largest buying groups in that country. Council members also participated in a store tour during one afternoon of the program. Information about the Council can be found at: www.wdiyc.org.ISSAQUAH, Wash. — Costco Wholesale posted a 21% increase in profits in the first quarter ended Nov. 21, rising to $193.2 million, from $160.2 million a year earlier. Quarterly sales increased 10% to $11.34 billion. Same-store sales rose 7%.OAK BROOK, Ill. — Ace Hardware Corp. has sold its headquarters located here to a real estate investment trust in a $40 million sale/leaseback deal. The hardware co-op will use the money from the sale to grow its business. The deal involves a 10-year lease with a first-year net rent of $2.9 million, excluding taxes, on the 206,000-sq.ft. facility. The deal was brokered by CB Richard Ellis Inc., which also represented another company, Zurich Financial Services AG.

VANCOUVER — West Fraser Timber Co. has made some concessions with Canada’s Competition Commissioner concerning its planned purchase of Weldwood of Canada from International Paper Co. Under the agreement, West Fraser has agreed to unload a 90% interest in sawmills located in Burns Lake and Decker Lake, B.C. West Fraser will also agree to a temporary reduction of its annual allowable cut in the Williams Lake area by 75,000 cubic metres for a 10-year period. The acquisition is expected to close on or before Dec. 31, 2004.

FORT WORTH, Tex. — Wal-Mart used newspaper advertising for the first time in November, in an effort to shore up disappointing sales. (Same-store sales were up only 0.7%, versus an anticipated 2-4%.) Full-page ads ran in major U.S. markets and in 35 secondary markets.

TORONTO — A gingerbread house sponsored by Home Hardware Stores and created by Oshawa Central Collegiate culinary arts students was presented to the Hospital for Sick Children last week. An oversized gingerbread cheque for $120,000, raised through fundraising efforts at Home Hardware stores, was also part of the contribution. The gingerbread structure was actually an entire city, measuring nine metres (30 ft.) by one metre (4 ft.) and weighing 300 kilograms (675 lb.), in recognition of Home Hardware’s 40^th anniversary.

PEOPLE ON THE MOVE

Canadian Tire Corp. has renewed the employment agreement with its president and CEO, Wayne Sales. The agreement extends his contract to June 30, 2007 and replaces a previous contract that would have expired in August, 2005. According to a prepared release, the terms and conditions of the new agreement are substantially the same as his former contract.The Worldwide DIY Council appointed its new board at its recent AGM: Jim Ness, vice-president of Meter-Man in Winnebago, Minn., is the new chairperson … He succeeds Betty Perez-Koukounaras, sales and marketing manager—international, for H.D. Hudson Manufacturing Co. of Chicago. She becomes ex-officio director for one year … Vice-chair is Ken Wallace, Latin American sales manager for Fluidmaster, based in Miami … Ian Wallace of Better Living Products, former chairman and ex officio director, also retired from the board.Tom Coughlin will retire as vice-chairman of Wal-Mart Stores Inc. after 25 years with the world’s largest retailer. His retirement will be effective Monday, Jan. 24, 2005, but he’ll continue as a director of the company until June 3, 2005, when Wal-Mart holds its AGM.

U.S. MARKET INDICATORS

Wholesale inventories in October 2004 were $323.1 billion, up 1.1% from September and up 10.6% from one year ago. Sales were $282 billion, up 1.6% from September and up 14.3% from one year ago.

CANADIAN MARKET INDICATORS

Housing starts remained strong in November, rising to a seasonally adjusted annual rate of 238,200. That’s up from 225,000 in October, according to CMHC, and the 18^th consecutive month that housing starts came in above the 200,000 level. Starts in urban centres increased 6.7% to a seasonally adjusted annual rate of 209,700 units. Urban single detached starts fell by 2.8% to 99,300 units in November while urban multiple starts increased 17.1% to 110,400. The estimated number of seasonally adjusted annualized starts in Canada’s rural areas was 28,500 units.The price of new homes increased by 5.6% over the same month last year, according to the New Housing Price Index, which measures the change in contractors’ selling prices. This was down slightly from the 5.8% annual increase registered in September. The annual rate of increase has been slowing since the 6.2% peak in June 2004, which was the biggest 12-month gain since February 1990.Construction intentions increased for the first time in four months in October, says Stats Canada. Municipalities issued $4.6 billion in building permits, up 2.0% from September. Last year’s November average was $4.2 billion.

DIRECT MARKETING MANAGER-Harrisburg, PA

To inquire further about this opportunity, please contact Wolf Gugler in strict confidence, quoting Direct Marketing Manager-PA.

Wolf Gugler & Associates Limited, 1000 West Wilshire, Oklahoma City, OK 73116. (405) 848-3006 email: resumes@wolfgugler.com Web site: www.wolfgugler.com

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NATIONAL ACCOUNT MANAGER

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WANTED: ADMINISTRATION ASSISTANT

Your skills:
detail oriented, deadline driven, flexible
software proficiency: Word, Excel, Outlook
Functionality: Dreamweaver preferred,but not essential
Bilingual English/French a plus!

Reply in confidence to Beverly Allen at 416-489-3396 or email bev@hardlines.ca

We thank all applicants for their interest; however, only those under consideration will be contacted.

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NORTHERN ONTARIO

Well established sales agent sourcing major line to represent to building supply retailers, Northern Ontario.

Must have brand recognition and existing sales with opportunity to grow. Reliable support including distribution, product knowledge and customer priority are essential.

Reply in confidence to Dale Harvey,
Harvey Northern Sales
866 200 1560
harveynorthernsales@sympatico.ca

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MARKETING MANAGER

With over 150 years in business, Stanley is one of the world’s most recognized and trusted brand names for tools, hardware, and security systems. The Stanley Works is currently hiring a Marketing Manager for our Canadian Headquarters, located in Oakville.

Responsibilities:
-Develop and execute growth strategies
-Ensure fill rate targets are achieved
-Actively participate in product development process
-Line reviews and competitive analysis
-Manager P&L
-Maintain competitive price comparisons
-Conduct field research
-Customer presentations
-Provide product knowledge, training and technical support
-Travel regularly within Canada and the U.S. Occasional travel to Asia and Europe may
be necessary.

Requirements:
-Bachelor’s Degree (prefer marketing or business)
-5+ years relevant experience
-Solid knowledge of: Big Box, Mass Merchants, 2Step, and Independents
-High customer orientation
-High Financial Aptitude
-Project development and Management, planning and organizational skills
-Previous experience in a matrix environment strongly preferred
-Solid knowledge of PowerPoint, Excel, and Outlook
-Knowledge of SAP and J.D. Edwards an asset

At Stanley, we offer an outstanding array of benefits and a competitive salary that upholds our commitment to excellent employee care. Forward your resume to: dsutlovic@stanleyworks.com

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U.S. REGIONAL SALES DIRECTOR

To inquire further about this opportunity, please contact Wolf Gugler in strict confidence, quoting Regional Sales Director-US.

Wolf Gugler & Associates Limited, 1000 West Wilshire, Oklahoma City, OK 73116. (405) 848-3006 email: resumes@wolfgugler.com

Web site: www.wolfgugler.com

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NATIONAL ACCOUNTS MANAGER

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AGENTS AND FULL TIME SALES REPS

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SERVICES OFFERED

WHETHER OR NOT IT GETS PAINFUL IS UP TO YOU.

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Your products deserve the best representation they can get. NORAL MARKETING knows the Canadian retail customer. Don’t settle for anything less!

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

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MARKETPLACE



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HARDLINES™ the electronic newsletter hardlines.ca
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