HARDLINES™ Five years serving Canada's home improvement industry September 11, 2000 - Volume vi, #34 Michael McLarney, Editor & Publisher Ph: 416-489-3396 Fx: 416-489-6154 E-mail: buzz@hardlinesfax.com  
Check out our incredible Classifieds section!
* * * * * * * IN THIS ISSUE: * Sodisco-Howden strikes supply deal with Co-op Atlantic * Head of Wal-Mart Canada will take over European operations * AWARD dealers mix education with rebates * Home Depot picks up two more plum Toronto sites * Building permits remain flat in July * * * * * *   RECORD ATTENDANCE AT THIS YEAR'S CONFERENCE: I am absolutely blown away by the response we're getting to this year's conference on September 14. We have almost 200 people coming! And don't forget, this year's Hardlines Marketing Conference will conclude with a mix-and-mingle cocktail reception, thanks to the sponsorship of Cologne International Trade Shows. So stick around and have a drink and some jumbo shrimp on us! MY THANKS UP FRONT TO ALL OUR SPONSORS FOR THE CONFERENCE, INCLUDING A BRAND NEW ONE - ONLINE DIRECT: Black Eagle Consulting Cologne International Trade Shows Hardware Merchandising/Canadian Contractor JDA Intactix LBMX Online Direct Power Packaging RONA Inc. Sterling Commerce Union Gas The Watt Group Wolf Gugler & Associates * * * * * * HARDLINES ON THE ROAD: We've been getting out and talking to dealers across the country lately. Beverly Allen, our tireless marketing manager, went up to Barrie, Ont., to Can-Save's amazing annual customer appreciation day. She made a presentation to dealers on competing alongside the big boxes. Yours truly headed off the following week to Moncton and Terra Nova Nfld., to talk to AWARD dealers about what the arrival of big boxes will mean to their markets. We had a blast! - Michael * * * * * * HARDLINES WHO'S WHO 2000-2001 EDITION: Guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops, with more than 100 listings featuring buyers etc. Order online or call us at 416-489-3396.  
SODISCO-HOWDEN TO SUPPLY CO-OP ATLANTIC   Sodisco-Howden Group continues to consolidate its position in Atlantic Canada with a new deal to supply hardware to Co-op Atlantic. The Moncton based wholesaler supplies 125 co-ops in all four Atlantic provinces, half of them in New Brunswick. But it decided to focus on grocery and soft goods, leaving the hard-lines to an outside supplier. Tony Molluso, president and CEO of Sodisco-Howden, expects the deal to be worth at least $5 million in sales to his company at the outset, with the focus on plumbing, electrical, tools, HVAC and building materials. Depending on the location of the Co-op customers, they will will be serviced from either the Sodisco division in Victoriaville, Qué., or the Howden division in London, Ont. The deal continues Sodisco-Howden's efforts to fill in the gap left by Thornes when that wholesaler stopped supplying retailers a year ago. Another company to move into that market was Weber Supply, which was later purchased by Sodisco-Howden. Weber had its own four-man sales force down east, including former Thornes people. The sales team was picked up by Sodisco- Howden in its acqusition of Weber's retail assets. * * * * * * AWARD DEALERS MIX NEW PROGRAMS WITH REBATES Summer meetings of the Atlantic buying group AWARD added education and new program introductions to the ritual of handing out rebate cheques. Held in Moncton and Newfoundland, the meetings were a forum for the distribution of rebates "based on increased levels of loyalty," the result of the group's push to engender greater unity in buying from preferred suppliers, says Tom Smith, president of AWARD. Among the programs introduced was a new installed sales program that includes financing by TD Financial Services, which supports instore financing. Dealers were also subjected to a presentation on the impact of big boxes by Michael McLarney, editor and publisher, etc., etc.  
COMPANIES IN THE NEWS   As real estate wars continue among the big boxes, Home Depot Canada has secured a prime piece of Toronto real estate with its acquisition of a commercial parcel in Leaside, in the city's east end. The store is scheduled to open in late spring of next year. Another site, at Caledonia and Castlefield, is scheduled to open at about the same time. Canadian Tire customers can now earn Canadian Tire money electronically on their Canadian Tire credit cards. They'll also get 20% more money than if they paid by cash, debit card or cheque. Users of the Canadian Tire MasterCard will also be able to accumulate Canadian Tire money on that card at other stores around the world. Ipex Homerite Products received first prize at the AHMA's Merchandising Awards Expo last month at the National Hardware Show. The prize was awarded in the packaging category. PartSource, Canadian Tire's stand-alone automotive parts concept, has announced plans to open five stores in Edmonton. The first one opened on September 5 and the second one opens tomorrow. Two of the stores will replace Auto Village stores, part of the Auto Village/Drivers chain that was bought up by Canadian Tire earlier this year. The staff from those stores have been moved into the new PartSource locations. This will give the chain a total of 17 stores, with seven remaining Auto Source and Drivers stores, which will all be brought under the PartSource name over time. Restoration Hardware is looking for additional sources of credit and financing. It has also hired an investment bank to provide advice on strategic alternatives. Its upscale lifestyle niche was watched with keen interest when it first gained prominence. But its sales and profitability have been less than stellar over the past year.
  CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 37.35 18.40 19.80
Canfor 19.80 10.35 10.95
Goodfellow 12.55 8.75 9.60
Home Depot 70.00 39.37 52 15/16
Hudsons Bay 21.65 12.50 15.75
Lowe's Cos. 67.25 40.37 51 7/8
Sears Canada 42.50 30.75 32.50
Taiga Forest 14.20 6.80 9.00
West Fraser 39.50 27.00 28.90
    "Writing, like life itself, is a voyage of discovery." - Henry Miller
PEOPLE ON THE MOVE   Rick Bobroske has joined Power Packaging as a partner in the company and vice-president of sales. He was most recently at National Manufacturing in a sales management capacity. (604-523- 1804) Dave Ferguson, formerly head of Wal-Mart Canada, has been named president & CEO of Wal-Mart's European operations. He replaces Allan Leighton, who is stepping down after spearheading the integration of Wal-Mart and Asda in Europe. Ferguson, 51, spent 4* years at Wal-Mart Canada and was recently named distinguished retailer of the year by the Retail Council of Canada … Mario Pilozzi has been promoted to COO of Wal-Mart Canada. He most recently served as senior vice-president, merchandise and sales … Hani Zayadi has been promoted to senior vice president of merchandising, replacing Pilozzi. (905-821-2111)  
NOTED...   "In the past, big retailers didn't go into appliance sales because customers expected the large products to be delivered and installed. This was a major expenditure in equipment and manpower. But first Home Depot, and now Wal-Mart, are selling majors without in-house delivery services." - Rob Philips, a spokesperson for Wal-Mart in the U.S., on that company's entry into white goods sales.  
MARKET INDICATORS   The value of building permits remained flat from June to July, says Stats Canada, at $3.1 billion. (However, this follows a jump of 7.2% from May to June.) Residential permits decreased 1.6% to $1.7 billion, thanks mainly to a decline in plans for multi-family dwellings. Year to date, housing intentions were up 6.2 % over the same period in 1999. Canadian department store sales increased 2.6% from June to July, says Stats Canada. They totalled $1.58 billion seasonally adjusted. Advances in June and July pushed sales to just 0.4% below the level in August 1999, when the industry felt the impact of Eaton's closing.  
WHY HARDLINES SUPPORTS THE WOMEN'S CONSUMER PRODUCTS NETWORK   Given the growing number of women in this industry, we are delighted there is finally a forum for them to meet and exchange ideas and insights. Anyone in hardware/housewares/packaged goods or related industries would benefit from checking out this organization. September 21: "Fully Alive From 9 to 5!" Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com For more information, please call: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, website:www.wcpncanada.org (Hardlines is proud to be a sponsor of the WCPN)  
Hardlines Classifieds   Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America's key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details. * * * * * * * HARDLINES™ the electronic newsletter. www.hardlinesfax.com phone: 416-489-3396; fax: 416-489-6154. E-mail: buzz@hardlinesfax.com Michael McLarney, Editor & Publisher (extension 1): mike@hardlinesfax.com Beverly Allen, Marketing Manager (extension 2): bev@hardlinesfax.com Nancy Wright, Administrative Assistant: nancy@hardlinesfax.com Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2000 by Michael McLarney. Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. Call for information on a site license for your company. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST = $212.75) per year (GST #13987 0398 RT). (Please make cheque payable to McLarneyCom.)  
  HARDLINES™ Five years serving Canada's home improvement industry September 11, 2000 - Volume vi, #34 Michael McLarney, Editor & Publisher Ph: 416-489-3396 Fx: 416-489-6154 E-mail: buzz@hardlinesfax.com  
Check out our incredible Classifieds section!
* * * * * * * IN THIS ISSUE: * Sodisco-Howden strikes supply deal with Co-op Atlantic * Head of Wal-Mart Canada will take over European operations * AWARD dealers mix education with rebates * Home Depot picks up two more plum Toronto sites * Building permits remain flat in July * * * * * *   RECORD ATTENDANCE AT THIS YEAR'S CONFERENCE: I am absolutely blown away by the response we're getting to this year's conference on September 14. We have almost 200 people coming! And don't forget, this year's Hardlines Marketing Conference will conclude with a mix-and-mingle cocktail reception, thanks to the sponsorship of Cologne International Trade Shows. So stick around and have a drink and some jumbo shrimp on us! MY THANKS UP FRONT TO ALL OUR SPONSORS FOR THE CONFERENCE, INCLUDING A BRAND NEW ONE - ONLINE DIRECT: Black Eagle Consulting Cologne International Trade Shows Hardware Merchandising/Canadian Contractor JDA Intactix LBMX Online Direct Power Packaging RONA Inc. Sterling Commerce Union Gas The Watt Group Wolf Gugler & Associates * * * * * * HARDLINES ON THE ROAD: We've been getting out and talking to dealers across the country lately. Beverly Allen, our tireless marketing manager, went up to Barrie, Ont., to Can-Save's amazing annual customer appreciation day. She made a presentation to dealers on competing alongside the big boxes. Yours truly headed off the following week to Moncton and Terra Nova Nfld., to talk to AWARD dealers about what the arrival of big boxes will mean to their markets. We had a blast! - Michael * * * * * * HARDLINES WHO'S WHO 2000-2001 EDITION: Guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops, with more than 100 listings featuring buyers etc. Order online or call us at 416-489-3396.  
SODISCO-HOWDEN TO SUPPLY CO-OP ATLANTIC   Sodisco-Howden Group continues to consolidate its position in Atlantic Canada with a new deal to supply hardware to Co-op Atlantic. The Moncton based wholesaler supplies 125 co-ops in all four Atlantic provinces, half of them in New Brunswick. But it decided to focus on grocery and soft goods, leaving the hard-lines to an outside supplier. Tony Molluso, president and CEO of Sodisco-Howden, expects the deal to be worth at least $5 million in sales to his company at the outset, with the focus on plumbing, electrical, tools, HVAC and building materials. Depending on the location of the Co-op customers, they will will be serviced from either the Sodisco division in Victoriaville, Qué., or the Howden division in London, Ont. The deal continues Sodisco-Howden's efforts to fill in the gap left by Thornes when that wholesaler stopped supplying retailers a year ago. Another company to move into that market was Weber Supply, which was later purchased by Sodisco-Howden. Weber had its own four-man sales force down east, including former Thornes people. The sales team was picked up by Sodisco- Howden in its acqusition of Weber's retail assets. * * * * * * AWARD DEALERS MIX NEW PROGRAMS WITH REBATES Summer meetings of the Atlantic buying group AWARD added education and new program introductions to the ritual of handing out rebate cheques. Held in Moncton and Newfoundland, the meetings were a forum for the distribution of rebates "based on increased levels of loyalty," the result of the group's push to engender greater unity in buying from preferred suppliers, says Tom Smith, president of AWARD. Among the programs introduced was a new installed sales program that includes financing by TD Financial Services, which supports instore financing. Dealers were also subjected to a presentation on the impact of big boxes by Michael McLarney, editor and publisher, etc., etc.  
COMPANIES IN THE NEWS   As real estate wars continue among the big boxes, Home Depot Canada has secured a prime piece of Toronto real estate with its acquisition of a commercial parcel in Leaside, in the city's east end. The store is scheduled to open in late spring of next year. Another site, at Caledonia and Castlefield, is scheduled to open at about the same time. Canadian Tire customers can now earn Canadian Tire money electronically on their Canadian Tire credit cards. They'll also get 20% more money than if they paid by cash, debit card or cheque. Users of the Canadian Tire MasterCard will also be able to accumulate Canadian Tire money on that card at other stores around the world. Ipex Homerite Products received first prize at the AHMA's Merchandising Awards Expo last month at the National Hardware Show. The prize was awarded in the packaging category. PartSource, Canadian Tire's stand-alone automotive parts concept, has announced plans to open five stores in Edmonton. The first one opened on September 5 and the second one opens tomorrow. Two of the stores will replace Auto Village stores, part of the Auto Village/Drivers chain that was bought up by Canadian Tire earlier this year. The staff from those stores have been moved into the new PartSource locations. This will give the chain a total of 17 stores, with seven remaining Auto Source and Drivers stores, which will all be brought under the PartSource name over time. Restoration Hardware is looking for additional sources of credit and financing. It has also hired an investment bank to provide advice on strategic alternatives. Its upscale lifestyle niche was watched with keen interest when it first gained prominence. But its sales and profitability have been less than stellar over the past year.
  CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 37.35 18.40 19.80
Canfor 19.80 10.35 10.95
Goodfellow 12.55 8.75 9.60
Home Depot 70.00 39.37 52 15/16
Hudsons Bay 21.65 12.50 15.75
Lowe's Cos. 67.25 40.37 51 7/8
Sears Canada 42.50 30.75 32.50
Taiga Forest 14.20 6.80 9.00
West Fraser 39.50 27.00 28.90
    "Writing, like life itself, is a voyage of discovery." - Henry Miller
PEOPLE ON THE MOVE   Rick Bobroske has joined Power Packaging as a partner in the company and vice-president of sales. He was most recently at National Manufacturing in a sales management capacity. (604-523- 1804) Dave Ferguson, formerly head of Wal-Mart Canada, has been named president & CEO of Wal-Mart's European operations. He replaces Allan Leighton, who is stepping down after spearheading the integration of Wal-Mart and Asda in Europe. Ferguson, 51, spent 4* years at Wal-Mart Canada and was recently named distinguished retailer of the year by the Retail Council of Canada … Mario Pilozzi has been promoted to COO of Wal-Mart Canada. He most recently served as senior vice-president, merchandise and sales … Hani Zayadi has been promoted to senior vice president of merchandising, replacing Pilozzi. (905-821-2111)  
NOTED...   "In the past, big retailers didn't go into appliance sales because customers expected the large products to be delivered and installed. This was a major expenditure in equipment and manpower. But first Home Depot, and now Wal-Mart, are selling majors without in-house delivery services." - Rob Philips, a spokesperson for Wal-Mart in the U.S., on that company's entry into white goods sales.  
MARKET INDICATORS   The value of building permits remained flat from June to July, says Stats Canada, at $3.1 billion. (However, this follows a jump of 7.2% from May to June.) Residential permits decreased 1.6% to $1.7 billion, thanks mainly to a decline in plans for multi-family dwellings. Year to date, housing intentions were up 6.2 % over the same period in 1999. Canadian department store sales increased 2.6% from June to July, says Stats Canada. They totalled $1.58 billion seasonally adjusted. Advances in June and July pushed sales to just 0.4% below the level in August 1999, when the industry felt the impact of Eaton's closing.  
WHY HARDLINES SUPPORTS THE WOMEN'S CONSUMER PRODUCTS NETWORK   Given the growing number of women in this industry, we are delighted there is finally a forum for them to meet and exchange ideas and insights. Anyone in hardware/housewares/packaged goods or related industries would benefit from checking out this organization. September 21: "Fully Alive From 9 to 5!" Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com For more information, please call: (905) 212-3826; fax: (905) 274-7646; email:wcpn99@yahoo.com, website:www.wcpncanada.org (Hardlines is proud to be a sponsor of the WCPN)  
Hardlines Classifieds   Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America's key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details. * * * * * * * HARDLINES™ the electronic newsletter. www.hardlinesfax.com phone: 416-489-3396; fax: 416-489-6154. E-mail: buzz@hardlinesfax.com Michael McLarney, Editor & Publisher (extension 1): mike@hardlinesfax.com Beverly Allen, Marketing Manager (extension 2): bev@hardlinesfax.com Nancy Wright, Administrative Assistant: nancy@hardlinesfax.com Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2000 by Michael McLarney. Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. Call for information on a site license for your company. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST = $212.75) per year (GST #13987 0398 RT). (Please make cheque payable to McLarneyCom.)