IRLY becomes first group to join new NRHA Canada

SURREY, B.C. - IRLY Distributors, the B.C.-based buying group and wholesale distributor, has become the first new member to join the North American Retail Hardware Association Canada since that organization's operations were taken over by Hardlines Inc. IRLY's board of directors was keen to access NRHA Canada's unique product knowledge training programs for each of its 43 member dealers. So keen, in fact, that IRLY's general manager, Garry Anderson, called Hardlines right away. "We felt strongly that this training was an important tool for the independent dealer," Anderson said. "A couple of our dealers had already tried it and insisted we make it available to all our members. It's effective because each dealer can monitor the progress of their staff as they go through all the courses." The NRHA Canada program is also a valuable recruitment tool for IRLY. "It's become an important added benefit for any prospective dealer who may wish to join IRLY. It's one more thing we can do for them." The centrepiece of NRHA Canada's programs is the Basic Training Course in Hardware Retailing. It contains everything hardware and home improvement retailers need to train employees to improve their skills, including interactive modules that cover product knowledge, selling tips and merchandising techniques. The course also includes testing and grading functions to ensure employees retain this information. All training programs have been customized for Canadian dealers. "We like that the course is completely adapted for Canadian dealers - that was a real selling point for us," Anderson added. When Hardlines assumed the operations of NRHA Canada in April 2007, it created a mandate to deliver product knowledge training to every independent retailer in the country. For more information on NRHA Canada, click here

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Ace uncovers $154 million accounting error

OAK BROOK, IL - Ace Hardware Corp., the dealer-owned buying group that has announced its plans to convert to a for-profit corporation, has uncovered a "significant accounting error" on its books, which has caused the co-op to temporarily put its conversion plans on hold. The Chicago Tribune, quoting Ace officials, reports that the company found a $154 million error while preparing its financial statements to become a for-profit entity. Its president and CEO, Ray Griffith, told the newspaper that Ace has hired an auditing firm to straighten out the problem, which relates to a shortfall in Ace's accounting for its inventory and apparently dates back to 2002. Griffith said that Ace's financial statements for the past five years might need to be restated. "There is no missing money, there is no missing inventory, there is no evidence of theft," Griffith told the newspaper. However, it remains to be seen how Ace's membership responds to this faux pas, and what effect it has on their confidence in the company's ability to manage its finances as a corporation.

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Hardlines Conference celebrates business innovation

TORONTO - Jack Bingleman left his position as president of Beaver Lumber in 1990 to found Business Depot. After growing it into a successful 40-store operation, he sold the business to Staples. His adventures in retailing have given Bingleman a unique perspective on the role of risk and reward, one he'll share with attendees at the 12th annual Hardlines Conference. Innovation and opportunity will also be the focus of a presentation by Jim Thompson, senior vice-president merchandising for Wal-Mart Canada. He'll share inspiration and insight into how to integrate new ideas into an existing business model. Marketing "green" products to consumers demands a fresh approach. As manager of program delivery for the Ontario Power Agency, Raegan Bunker will offer tips about how to exploit the retail opportunities in energy programs being offered by various levels of government. After having spent many years working on renewable energy options for government bodies, consultant/contractor Lorin Busaan understands what makes a pro choose green products over conventional materials. He'll reveal how to leverage the growing interest in eco-friendly building materials and services with pro customers. For secure online registration to the 12th annual Hardlines Conference, click here.

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Home Depot chief sees continued challenge in the market

NEW YORK - Frank Blake, Home Depot's CEO, does not think the U.S. housing market is going to recover until next year, and even then he expects his company to be facing "headwinds" against which it will be pushing to operate its business profitably. He told analysts at Goldman Sachs' Retailing Conference here last week that California and Florida, at one time two of the most overheated housing markets in the country, accounted for much of his company's sales weakness through the first half of 2007, during which Home Depot reported a 2.9% decline to $40.7 billion. Conversely, the retailer has seen some life from its stores in Texas, the Southeast and the Midwest, despite the fact that the Midwest - and particularly Ohio and Michigan - are viewed as limp housing markets right now. Blake hinted that Home Depot's plan to repurchase $22.5 billion worth of its common stock could be hindered by the credit crunch that the subprime mortgage crisis has created. In late August, Home Depot completed a tender offer for $10.7 billion worth of it stock. "It's going to be a longer path than what I initially envisioned," he told analysts. He also indicated that the credit crunch is impacting the sale of big-ticket items at Home Depot's stores.

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CT Financial product combines mortgage and bank accounts

TORONTO - Canadian Tire Financial Services Ltd. is piloting a new banking product in Kitchener-Waterloo and London, ON, and Calgary. The One-and-Only account allows consumers to combine mortgage, chequing and savings accounts, loans and credit card balances, into one account, which has no set-up or transaction fees. Users will also earn Canadian Tire "money". The new account will help Canadians pay off mortgage debt more quickly, according to the retailer. Whenever money is deposited into the account, it immediately goes towards paying down the mortgage. Cash taken out to pay other bills goes right back onto the debt load, but even the interest saved between the time the two transactions take place reduces interest fees. "We know from our consumer and market research that as the size of the average mortgage continues to grow, so does every Canadian's desire to pay off that debt as quickly as possible," said Marco Marrone, president, Canadian Tire Financial Services, in a prepared statement. To help consumers understand the program, the company has set up a website.

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

WASHINGTON - The number of homeowners that couldn't make their mortgage payments hit a record level in the second quarter, according to estimates by the Mortgage Bankers Association. In its quarterly survey, which covers 44 million mortgages, MBA estimates that 0.65% of loans, for one- to four-unit homes, or 268,000 mortgages, entered the foreclosure process. MarketWatch reports that's the highest level in the association's 55-year history. California, Nevada, Florida and Arizona were especially susceptible to foreclosure activity. However, Doug Duncan, MBA-s chief economist, notes that 34 states saw declines in their foreclosure rates during the last quarter. He also notes a significant "divergence" between the performance of fixed-rate loans (whose foreclosure rates have either levelled off or declined) and adjustable-rate loans, where foreclosure activity has been far more volatile.

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