September 20, 1999 - Volume v, #37
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

MY THANKS TO THE FOLLOWING CONFERENCE SPONSORS:

Paul Publow at LOGISTICS SOLUTIONS, for starting us off with the coffee and muffins; Wolf Gugler at WOLF GUGLER AND ASSOCIATES, for the cocktails before lunch; Edel Wichmann and Carol-Ann Itel representing THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY'TEC, for their loyal support; Rico Giovannini, Jo'anne D'Amico and Curtis Popovich at STERLING COMMERCE, for sticking by me through thick and thin; Micheal Ostoforoff, Dan Desmarais and Jim Prins at INTACTIX, for coming on board this year; Bruce Smith and Annalee Ulsud at THE WATT GROUP, for believing in us; Steve Payne at HARDWARE MERCHANDISING MAGAZINE, for the insults and um, new haircut. - M.M.

REVY OPENS FIRST BIG BOX IN GTA

More than a year after the merger of Lansing Buildall and Revy Home Centres Inc., Revy has opened its first Revy Home & Garden Warehouse in the Greater Toronto Area.

The 168,000-sq.ft. big box, just the first of 10 such stores planned for the GTA, intends to compete head to head there against Home Depot, which already has 18 stores in that market. The tag line "Canada's home improvement warehouse store" has been replaced on the new store with "Brought to you by Lansing Buildall."

However, the Canadian angle is not being ignored. In fact, it's central to the promotion of the Revy name, which, unlike Lansing, is largely unfamiliar to Torontonians. The grand opening on Saturday was unabashedly nationalistic, from the singing of the national anthem to the appearance of hockey commentator Don Cherry, hockey great Darryl Sittler and CASCAR Racing star Andy Farr.

Touted as an alternative to the "American retailers," the new store is "bigger, brighter, cleaner, neater," says Howard Kitchen, director of marketing at Lansing. Showcasing about 50,000 SKUs, it features a 30,000-sq.ft. drive-through outdoor lumber yard, 25,000 sq.ft. devoted to lawn and garden, a Stephenson's Rent-All and a Tim Horton's donut shop.

Revy may be the first to go up against Home Depot in Toronto, but just barely. RONA inc. has begun construction of a big box L'Entrépot store in Cambridge, Ont. (Like all its big boxes outside Québec, it will be called RONA Warehouse.) And Réno-Dépôt has made clear its intentions to invade Ontario, starting with the GTA.

The next Revy openings are in Woodbridge (Hwy. 400 and Hwy 7) in December, followed by Scarborough (Midland and Eglinton area) and the Stockyards (yes, it's true!) in 2001. Other sites being finalized include Oshawa and Kitchener.

RONA Inc. opened a RONA Le Rénovateur Régional in Granby, Qué., last Wednesday. The 90,00-sq.ft. store, RONA's eighth "mini-big box" regional centre, uses a warehouse layout with wide aisles and large racking and carries 40,000 SKUs. The store also features specialty boutiques for paint, decor, doors and windows, ovens and ranges and floor coverings. A 30,000-sq.ft. indoor lumberyard, a 3,000-sq.ft. greenhouse and a 17,000-sq.ft. garden centre are also integrated into the warehouse format. The facility represents a $10 million investment and will create over 95 jobs. The company claims it will be the largest retail outlet for hardware, home improvement and lawn & garden in the region.

Home Depot Canada opened its "Type Six" store in Brampton, northwest of Toronto, last Thursday, the VERY same day as the Hardlines Marketing Conference (But it's okay, really. I'm learning to deal with it! - M.M.) Store manager is Tony Riga.

Canadian Tire has launched new charitable foundation called "Foundation for Families," with a $1 million initial contribution. The Foundation, formally unveiled in Toronto at the organization's annual convention, will focus on assisting families and communities in times of natural disaster or crisis. In local communities, it will concentrate on raising funds in response to community needs. The Foundation's honourary chair is Martha Billes, daughter and niece of Canadian Tire's founders.

Ontario LBM buying group Torbsa Ltd. has added a new member: Village Building Supplies (1977) Ltd., Concord, Ont.

In response to a growing North American demand for glass fibre reinforced shingles, Owens Corning and IKO Industries have formed a joint venture to develop a glass fibre mat facility. The location has yet to be determined.

Last week, the board of directors of MacMillan Bloedel Ltd. set October 28, 1999, as the date for the special meeting of the common shareholders, option-holders and warrant-holders to approve the arrangement involving MacMillan Bloedel and Weyerhaeuser Company. MB's board unanimously supports the bid.

Rayovac Corp. plans to take a fourth-quarter pretax charge of US$6.3 million for costs of restructuring several areas of the company. Rayovac said the cash cost of the charge is $2.5 million. The company will also realize a $2.4 million after-tax charge for the writeoff of prior capitalized financing costs. The third-largest U.S. battery maker projects that it will save US$3.4 million annually before taxes from its restructuring efforts.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	36.10
Canfor	13.30	4.25	12.65
Goodfellow	11.50	6.00	11.80
Hudsons Bay	23.85	14.00	21.05
MacMillan Blo.	27.85	11.50	23.60
Sears Canada	33.75	15.25	34.20
Taiga Forest	14.75	8.65	13.65
West Fraser	41.00	19.05	37.50

"May you build a ladder to the stars/And climb on every rung/And may you stay forever young."
- Bob Dylan

PEOPLE ON THE MOVE

James C. MacKay has been promoted to the position of senior vice-president and general manager of CGC Inc. He was formerly vice-president sales and marketing. MacKay will be responsible for day to day operations of the company, with the senior management team (operations, manufacturing and finance) reporting directly to him. He in turn reports directly to Jack O'Brian, vice-president of USG Corp. On an interim basis, the existing sales and marketing staff will continue to report to MacKay, as well. (905-803-5600)

Doug Daer has been appointed general manager, Ontario region, at CanWel Distribution Ltd. - Bob James has been appointed dealers sales manager B.C. region. He will be located in the Langley, B.C., customer service centre. (604-888-8044)

The following appointments have been made at King Marketing: Mark Lohr is sales and service representative for the B.C. territory - Craig Friesan has joined King's Calgary team - Steve Guterres and Lee Greengrass have joined the Vancouver service team - Jack Appleby has been named Vancouver Island rep - Paul Krueger joins the company as communications and IT co-ordinator. (604-271-3455)

MAAX has announced the following appointments: André Heroux has been promoted from vice-president & general manager of operations to president - David Poulin moves to the position of corporate vice-president. (418-387-4155)

Lowe's Cos. will now operate three distinct operating regions: northern, southern and western. Charles W. (Nick) Canter has been appointed senior vice-president, store operations for the northern division. Canter, a 26-year Lowe's veteran, most recently served as senior vice president/general merchandise manager for the lumber/building materials group. - Greg Wessling will oversee the company's southern division - Bill Pelon will oversee the western division. (336-658-4000)

"The number-one growth category in electrical this year is ceiling fans."
- Jack Hayes, vice-president merchandising for Home Depot Canada, during a walk through the new "Type Six" store in Brampton, Ont

At a recent media junket hosted by "Home Improvement" star Tim Allen at his digs in California, our very own Canadian editor, Elena Opasini of Centre magazine, brazenly sported a Tool Time T-shirt of her own, proving she had the all credentials to earn, albeit briefly, Binford Tool Girl status, making us all proud!

Wholesale trade was up 0.4% in July from June, according to Stats Canada. However, the greatest gains were in computers and software, and in automotive. Lumber and building materials remained unchanged from month to month, while metals, hardware, plumbing, heating and electrical fell 3%.

* * * * * * * *

In August, consumers spent 2.1% more than in August 1998 for the goods and services in the Consumer Price Index, according to Stats Canada. August's rise follows annual increases of 1.6% in June and 1.8% in July, largely reflecting rising prices of gasoline and natural gas.

The Hardlines Who's Who (1999-2000 Edition) is a comprehensive guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers and their responsibilities.

The cost for the Hardlines Who's Who is only $105 for Hardlines subscribers and $135 for non-subscribers. Order your own copy of the Hardlines Who's Who today!

* * * * * * *

COLOGNE IN Y2K:Come to the Cologne International Hardware Fair/DIY'TEC with HARDLINES, March 12-15, 2000, in Cologne, Germany.

Travel to the International Hardware Fair in Cologne to position yourself as a key player in the 21st century. Find out where the growth opportunities lie, discover how the world's markets are changing and learn about the latest new products.

Hardlines has arranged special travel packages that will make your trip painless and affordable. Not only will we help you with your travel arrangements, but we'll also ensure your trip is beneficial to both you and your company.

Six good reasons to travel with Hardlines:

1. Escorted travel from Toronto to Cologne via Frankfurt &endash;let us help you make your voyage worry-free by taking care of the details.

2. "Canada Night" Reception in Cologne&endash; A night of networking with fellow Canadian retailers and vendors, and a presentation by key European buyers.

3. Pre-show seminar &endash; Hardlines and the Canadian office of the Cologne Trade Fairs will jointly present tips on how to maximize your presence at the Show.

4. Hardlines Handbook of the European market &endash; a helpful guide to European markets.

5. Store tours &endash; We'll take you on a tour of the European big-boxes and independents so you can take home the latest ideas for merchandising, packaging and store layout.

6. Spouses' program &endash; Join us to discover the sights and scenes of historic Cologne.

Affordable, comprehensive travel packages are available in two- and five-star accommodations. Just email us for more information. Our recommended Canadian travel agent will contact you to arrange your personalized travel package.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. 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.

September 20, 1999 - Volume v, #37
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

MY THANKS TO THE FOLLOWING CONFERENCE SPONSORS:

Paul Publow at LOGISTICS SOLUTIONS, for starting us off with the coffee and muffins; Wolf Gugler at WOLF GUGLER AND ASSOCIATES, for the cocktails before lunch; Edel Wichmann and Carol-Ann Itel representing THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY'TEC, for their loyal support; Rico Giovannini, Jo'anne D'Amico and Curtis Popovich at STERLING COMMERCE, for sticking by me through thick and thin; Micheal Ostoforoff, Dan Desmarais and Jim Prins at INTACTIX, for coming on board this year; Bruce Smith and Annalee Ulsud at THE WATT GROUP, for believing in us; Steve Payne at HARDWARE MERCHANDISING MAGAZINE, for the insults and um, new haircut. - M.M.

REVY OPENS FIRST BIG BOX IN GTA

More than a year after the merger of Lansing Buildall and Revy Home Centres Inc., Revy has opened its first Revy Home & Garden Warehouse in the Greater Toronto Area.

The 168,000-sq.ft. big box, just the first of 10 such stores planned for the GTA, intends to compete head to head there against Home Depot, which already has 18 stores in that market. The tag line "Canada's home improvement warehouse store" has been replaced on the new store with "Brought to you by Lansing Buildall."

However, the Canadian angle is not being ignored. In fact, it's central to the promotion of the Revy name, which, unlike Lansing, is largely unfamiliar to Torontonians. The grand opening on Saturday was unabashedly nationalistic, from the singing of the national anthem to the appearance of hockey commentator Don Cherry, hockey great Darryl Sittler and CASCAR Racing star Andy Farr.

Touted as an alternative to the "American retailers," the new store is "bigger, brighter, cleaner, neater," says Howard Kitchen, director of marketing at Lansing. Showcasing about 50,000 SKUs, it features a 30,000-sq.ft. drive-through outdoor lumber yard, 25,000 sq.ft. devoted to lawn and garden, a Stephenson's Rent-All and a Tim Horton's donut shop.

Revy may be the first to go up against Home Depot in Toronto, but just barely. RONA inc. has begun construction of a big box L'Entrépot store in Cambridge, Ont. (Like all its big boxes outside Québec, it will be called RONA Warehouse.) And Réno-Dépôt has made clear its intentions to invade Ontario, starting with the GTA.

The next Revy openings are in Woodbridge (Hwy. 400 and Hwy 7) in December, followed by Scarborough (Midland and Eglinton area) and the Stockyards (yes, it's true!) in 2001. Other sites being finalized include Oshawa and Kitchener.

RONA Inc. opened a RONA Le Rénovateur Régional in Granby, Qué., last Wednesday. The 90,00-sq.ft. store, RONA's eighth "mini-big box" regional centre, uses a warehouse layout with wide aisles and large racking and carries 40,000 SKUs. The store also features specialty boutiques for paint, decor, doors and windows, ovens and ranges and floor coverings. A 30,000-sq.ft. indoor lumberyard, a 3,000-sq.ft. greenhouse and a 17,000-sq.ft. garden centre are also integrated into the warehouse format. The facility represents a $10 million investment and will create over 95 jobs. The company claims it will be the largest retail outlet for hardware, home improvement and lawn & garden in the region.

Home Depot Canada opened its "Type Six" store in Brampton, northwest of Toronto, last Thursday, the VERY same day as the Hardlines Marketing Conference (But it's okay, really. I'm learning to deal with it! - M.M.) Store manager is Tony Riga.

Canadian Tire has launched new charitable foundation called "Foundation for Families," with a $1 million initial contribution. The Foundation, formally unveiled in Toronto at the organization's annual convention, will focus on assisting families and communities in times of natural disaster or crisis. In local communities, it will concentrate on raising funds in response to community needs. The Foundation's honourary chair is Martha Billes, daughter and niece of Canadian Tire's founders.

Ontario LBM buying group Torbsa Ltd. has added a new member: Village Building Supplies (1977) Ltd., Concord, Ont.

In response to a growing North American demand for glass fibre reinforced shingles, Owens Corning and IKO Industries have formed a joint venture to develop a glass fibre mat facility. The location has yet to be determined.

Last week, the board of directors of MacMillan Bloedel Ltd. set October 28, 1999, as the date for the special meeting of the common shareholders, option-holders and warrant-holders to approve the arrangement involving MacMillan Bloedel and Weyerhaeuser Company. MB's board unanimously supports the bid.

Rayovac Corp. plans to take a fourth-quarter pretax charge of US$6.3 million for costs of restructuring several areas of the company. Rayovac said the cash cost of the charge is $2.5 million. The company will also realize a $2.4 million after-tax charge for the writeoff of prior capitalized financing costs. The third-largest U.S. battery maker projects that it will save US$3.4 million annually before taxes from its restructuring efforts.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	36.10
Canfor	13.30	4.25	12.65
Goodfellow	11.50	6.00	11.80
Hudsons Bay	23.85	14.00	21.05
MacMillan Blo.	27.85	11.50	23.60
Sears Canada	33.75	15.25	34.20
Taiga Forest	14.75	8.65	13.65
West Fraser	41.00	19.05	37.50

"May you build a ladder to the stars/And climb on every rung/And may you stay forever young."
- Bob Dylan

PEOPLE ON THE MOVE

James C. MacKay has been promoted to the position of senior vice-president and general manager of CGC Inc. He was formerly vice-president sales and marketing. MacKay will be responsible for day to day operations of the company, with the senior management team (operations, manufacturing and finance) reporting directly to him. He in turn reports directly to Jack O'Brian, vice-president of USG Corp. On an interim basis, the existing sales and marketing staff will continue to report to MacKay, as well. (905-803-5600)

Doug Daer has been appointed general manager, Ontario region, at CanWel Distribution Ltd. - Bob James has been appointed dealers sales manager B.C. region. He will be located in the Langley, B.C., customer service centre. (604-888-8044)

The following appointments have been made at King Marketing: Mark Lohr is sales and service representative for the B.C. territory - Craig Friesan has joined King's Calgary team - Steve Guterres and Lee Greengrass have joined the Vancouver service team - Jack Appleby has been named Vancouver Island rep - Paul Krueger joins the company as communications and IT co-ordinator. (604-271-3455)

MAAX has announced the following appointments: André Heroux has been promoted from vice-president & general manager of operations to president - David Poulin moves to the position of corporate vice-president. (418-387-4155)

Lowe's Cos. will now operate three distinct operating regions: northern, southern and western. Charles W. (Nick) Canter has been appointed senior vice-president, store operations for the northern division. Canter, a 26-year Lowe's veteran, most recently served as senior vice president/general merchandise manager for the lumber/building materials group. - Greg Wessling will oversee the company's southern division - Bill Pelon will oversee the western division. (336-658-4000)

"The number-one growth category in electrical this year is ceiling fans."
- Jack Hayes, vice-president merchandising for Home Depot Canada, during a walk through the new "Type Six" store in Brampton, Ont

At a recent media junket hosted by "Home Improvement" star Tim Allen at his digs in California, our very own Canadian editor, Elena Opasini of Centre magazine, brazenly sported a Tool Time T-shirt of her own, proving she had the all credentials to earn, albeit briefly, Binford Tool Girl status, making us all proud!

Wholesale trade was up 0.4% in July from June, according to Stats Canada. However, the greatest gains were in computers and software, and in automotive. Lumber and building materials remained unchanged from month to month, while metals, hardware, plumbing, heating and electrical fell 3%.

* * * * * * * *

In August, consumers spent 2.1% more than in August 1998 for the goods and services in the Consumer Price Index, according to Stats Canada. August's rise follows annual increases of 1.6% in June and 1.8% in July, largely reflecting rising prices of gasoline and natural gas.

The Hardlines Who's Who (1999-2000 Edition) is a comprehensive guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers and their responsibilities.

The cost for the Hardlines Who's Who is only $105 for Hardlines subscribers and $135 for non-subscribers. Order your own copy of the Hardlines Who's Who today!

* * * * * * *

COLOGNE IN Y2K:Come to the Cologne International Hardware Fair/DIY'TEC with HARDLINES, March 12-15, 2000, in Cologne, Germany.

Travel to the International Hardware Fair in Cologne to position yourself as a key player in the 21st century. Find out where the growth opportunities lie, discover how the world's markets are changing and learn about the latest new products.

Hardlines has arranged special travel packages that will make your trip painless and affordable. Not only will we help you with your travel arrangements, but we'll also ensure your trip is beneficial to both you and your company.

Six good reasons to travel with Hardlines:

1. Escorted travel from Toronto to Cologne via Frankfurt &endash;let us help you make your voyage worry-free by taking care of the details.

2. "Canada Night" Reception in Cologne&endash; A night of networking with fellow Canadian retailers and vendors, and a presentation by key European buyers.

3. Pre-show seminar &endash; Hardlines and the Canadian office of the Cologne Trade Fairs will jointly present tips on how to maximize your presence at the Show.

4. Hardlines Handbook of the European market &endash; a helpful guide to European markets.

5. Store tours &endash; We'll take you on a tour of the European big-boxes and independents so you can take home the latest ideas for merchandising, packaging and store layout.

6. Spouses' program &endash; Join us to discover the sights and scenes of historic Cologne.

Affordable, comprehensive travel packages are available in two- and five-star accommodations. Just email us for more information. Our recommended Canadian travel agent will contact you to arrange your personalized travel package.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. 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.