| FREE INTERNATIONAL BUSINESS SEMINAR: |
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Want to build your overseas sales? Looking for new product and merchandising ideas? Then don't miss this FREE International Business Seminar, Thursday, September 12, 9-11:30 a.m. Learn how to tackle the huge overseas market, take advantage of government programs and meet key European buyers. Book NOW!!! (Part of the Hardlines Conference Series, September 12-13, at the Four Points Sheraton near the Toronto International Airport.)
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| BMR BEGINS EXPANSION OF HARDWARE DISTRIBUTION |
 Longueuil, QC - Construction is underway by Groupe BMR inc. to expand its distribution centre.
The $5 million investment will result in an increase of BMR's hardware distribution facilities to 120,000 sq.ft. and will accommodate 22,000 SKUs. The building materials warehousing will grow to a total of 65,000 sq.ft.
The construction is scheduled for completion by the beginning of 2003. It is expected to create 25 permanent jobs.
The expansion was made possible by the acquisition of an adjacent 360,000-sq.ft. property, bringing the total of BMR's existing distribution centre and head offices location to nearly one million sq.ft. The improvement was needed in order to maintain and improve service to the co-op wholesale buying group's 120 dealers throughout Québec, Eastern Ontario and Northern New Brunswick. BMR also has a warehouse in Saint-Augustin-de-Desmaures, near Québec City.
According to Yves Gagnon, president of BMR, the group wants to provide a full array of hardlines to its dealers. This expanded capacity, he says, will give them the autonomy to do so. "The dealers found it hard to be masters of their own destiny with someone else handling the hardlines supply," he says.
Last year, Groupe BMR processed $232 million in wholesale sales, while sales by all its dealers totalled $630 million. A member of the Matreco buying group, it is celebrating its 35th anniversary this year. |
| RONA'S SECOND-QUARTER PROFITS RISE 113% |
 Boucherville, QC - Rona inc. recorded its best quarterly performance ever in its second quarter, increasing net earnings by a record 113.1%. Consolidated net earnings for the quarter were $18.3 million, up from $8.6 million last year. For the six-month period ended June 30, 2002, net earnings reached $22.1 million, 93.8% higher than the $11.4 million recorded in the year-earlier period.
Rona's net consolidated sales, that is, the total sales at wholesale plus retail sales by its corporate stores and franchises, were $717.8 million in the second quarter, an increase of 50.1%.
Net sales for the six-month period reached $1.16 billion, a 58.7% increase over the previous year. This growth in sales is largely attributable to the acquisition in June, 2001 of Revy Home Centres Inc. in Ontario and Western Canada. However, same-store sales were up 9% over the same period in 2001, despite poor weather conditions, especially in May.
"Our results show that our recent acquisitions have produced the expected synergies," said Rona president and CEO Robert Dutton in a prepared statement. He remains "cautiously optimistic" about the rest of the year.
A number of internal initiatives have contributed to the growth, as well, says the company. These include the renovation of several corporate stores, particularly in Ontario, the expansion of the Rona Lansing in Markham, ON and the opening of its 40th big box outlet, a Rona Home & Garden in Ottawa.
Sales by Rona's big box stores in Québec have increased by more than 15% in the first six months of 2002. |
| HOME DEPOT UNVEILS NURSERY BANNER |
 Atlanta, GA - Home Depot has entered the commercial landscaping business with the opening of its first Landscape Supply store in the nearby community of Duluth.
According to the Atlanta Journal-Constitution, the 37,000-sq.ft. store, devoted solely to lawn and garden and landscaping products, is the latest retail concept from Home Depot, which is currently testing several alternative retail concepts, as same-store sales at its traditional stores begin to flag. The market for lawn and garden is estimated at US$34 billion.
Unlike a traditional Home Depot outlet, Landscape Supply will offer outdoor gardening supplies and materials only. While it will be open to the public, it is heavily geared toward contractors, builders and landscape architects. The store offers a greater variety and quantity of live goods at this new location than at a regular Home Depot store.
The 12,000-sq.ft. Landscape Supply store has an additional 25,000-sq.ft. of outside greenhouse on a seven-acre site. It features a separate entrance for contractors, with staff designated to deal exclusively with the trades.
Two more openings, in Woodstock and Kennesaw, GA, are scheduled for September 12, while another two are planned for the Dallas-Forth Worth, TX area. The company has not disclosed any other locations it has in mind. |
| IN MEMORIAM |
| One of the industry's outstanding retailers passed away on August 23. Terry Yates was a founder of McMunn and Yates, a chain of home centres based in Dauphin, MB that includes six Do-it centres, a truss plant and a lumber yard. Age 61, he was president of the company at the time of his death.
Terry stood out in the industry as a smart, thoughtful retailer whose company continued to expand amidst the emergence of big box retailers in communities such as Winnipeg. In 1992, the Western Retail Lumberman's Association named him "Mr. Lumberman of the Year." He was also a strong supporter and friend of Hardlines.
His community activities included the Parkland Regional Health Authority, the Dauphin Lions Club and the Dauphin Men's Curling Club, of which he was a life member. Terry leaves behind his wife Hazel, son Jason and his wife Laura, and daughter Rhea and her husband Paul Chard, plus three grandchildren. |
| COMPANY |
52-WEEK HIGH |
52-WEEK LOW |
CLOSE (FRI.) |
| Canadian Tire |
33.15 |
18.50 |
30.11 |
| Canfor |
11.70 |
8.08 |
9.51 |
| Emco |
12.77 |
3.71 |
10.99 |
| Goodfellow |
13.99 |
8.00 |
12.00 |
| Home Depot |
52.60 |
26.10 |
32.93 |
| Hudson's Bay |
19.40 |
6.45 |
7.73 |
| Lowe's Cos. |
49.99 |
24.99 |
41.38 |
| Sears Canada |
25.10 |
12.50 |
17.50 |
| Sodisco-Howden |
2.20 |
0.75 |
1.55 |
| Taiga Forest |
7.00 |
3.75 |
6.25 |
| West Fraser |
44.42 |
26.14 |
35.92 |
| NOTED … |
| "Anything 'Mary-Kate and Ashley' - $4.93-$29.93." A recent release from Wal-Mart Canada advises fretful moms of what is hot in back-to-school accessories. Who knew… |
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| COMPANIES IN THE NEWS |
| Last week, White Rose Home and Garden Centres held a special relaunch of its newly reformed company. At the same time, it paid homage to decades of tradition that the former company represented before falling into bankruptcy. Earlier last month, the new company, formed by White Rose management, purchase 24 White Rose locations from the receiver, PricewaterhouseCoopers Inc. Seven other stores will be closed. Under the direction of Fern Reeves, White Rose will attempt to position itself to offer "a unique, ever-changing assortment."
Profits for Hudson's Bay Co. in its second quarter were $4.7 million, down from the same period last year. Sales were $1.69 billion, down slightly from last year's $1.7 billion. Sales at Zellers were up 0.5% year-over-year, while sales at the Bay stores decreased by 2%. Same-store sales increased 0.4% at Zellers and decreased 5.5% at the Bay, but margins narrowed for Zellers, hurting the company's bottom line.
Home Depot's at-home services are taking off, as 2Q revenues for this division grew from US$395 million to US$500 million year-over-year. The company estimates that the "do-it-for-me" market is worth US$180 billion. Home Depot offers installed sales for everything from ceiling fans and windows to kitchen cabinets.
Sears Canada has relaunched six former eatons stores as urban Sears stores. It also opened two stores last week: Maisonville department store in London, ON was reopened after a 12,000-sq.ft. expansion, while a brand new store was unveiled at the Rosemere Shopping Centre in Rosemere, Québec.
Waters Instruments Inc. had 4Q net sales of $8.5 million, up 55% over the same period a year earlier. Sales for the year reached $25.3 million, a 66% increase. Profit for the year increased by 49% to $1.28 million, from $863,000 in fiscal 2001. Sales at the company's Zareba Systems division, which now represent 77.6% of the company's overall sales, more than doubled in fiscal 2002.
Richelieu Hardware Ltd. has signed an agreement in principle to acquire 75% of the shares of Menuiserie des Pins (L.F.) Ltée. The company specializes in products designed for window and door manufacturers currently supplied by Richelieu. Founded in 1946, it has annual sales of $8 million, mostly in Québec. Set to close in mid-September 2002, the transaction is subject to a due diligence. |
| PEOPLE ON THE MOVE |
| After three years as executive assistant to Home Depot Canada president Annette Verschuren, Erblin Rexha has been promoted to a position as financial analyst for the retailer … Erblin has been replaced in Annette's office by Andra Matusevicz. (416-609-0852)
Rob MacDonald has joined Ace Hardware Canada in charge of store planning and design. His background includes Zellers and Home Depot Canada; he was most recently at The Building Box. (905-475-1188)
Pierre Racette has joined National Manufacturing of Canada as vice-president of national accounts and sales. A veteran of both the manufacturing and retail sides of the hardware business, Racette will operate out of National's facilities in Cobourg, ON and report to Bill Medland, president of National. (905-372-9623)
At Grant Brothers Sales Ltd., Debbie Lambert has been appointed national accounts manager, Hardware Division, based in Grant Brothers' head office in Mississauga. She will be responsible for leading GBS's sales program to the major retailers and distributors across Canada. (905-852-9930)
Bernie Owens has been appointed vice-president of sales for Canada at BPC Westroc, effective September 1. Reporting to Don Moses, senior vice-president, sales and marketing, he will be responsible for Westroc's wallboard and ceiling sales in Canada. (905-823-9881)
Dean Albonese has been named national sales manager for Better Living Products of Canada, effective immediately. In his new position, Dean will be responsible for the day-to-day sales management of the Canadian Division with a primary focus on the retail segment of the business. Dean joins the company from GSW Thermoplastics. (905-264-7100)
Michael Bennett has joined Reckitt-Benckiser as the regional manager, calling on the likes of Costco, Canadian Tire and Shoppers Drug Mart. (416-201-7480) |
| MARKET INDICATORS |
| Housing starts in Canada are expected to reach a 13-year high of 182,200 units this year. According to CMHC's second-quarter Housing Outlook report, a strong job market, combined with relatively stable mortgage rates, will fuel the rise. Retail sales rose a healthy 1.8% in June to $25.6 billion, following a decline in May of 1.1%. All sectors except drugs and furniture enjoyed an increase. All provinces posted sales gains in June, except Prince Edward Island (-5.6%) and Nova Scotia (-0.2%). Retail sales advances ranged from 0.5% in Newfoundland and Labrador to 3.2% in Ontario.
A new study conducted for the Greater Toronto Home Builders Association reveals that 60.6% of all households in Toronto owned their own homes in 1996. That number has grown to 63.8% today, an increase of about 150,000 homes.
Low interest rates helped push sales of new homes in the U.S. in July. Single-family dwelling were up 6.7% to a seasonally adjusted rate of 1.017 million last month. July was the first time new-home sales in the U.S. passed the one million mark. |
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****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp
POSITIONS SOUGHT
SALES EXECUTIVE AVAILABLE
Sales executive available full time or on a contract basis. Plugged into retailers in Canada and the U.S.
Contacts in the electrical, lighting and building materials categories. Excellent references. Results guaranteed. Email: integralsm@hotmail.com
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HELP WANTED
PRODUCT MANAGER
Are you a Merchant at heart? Due to their growing list of successes with Customers on both sides of the border, our Client, a long-established, yet entrepreneurial manufacturer needs to add a marketing performer to assist in continuing their transformation to a market and category driven leader. You’ll be responsible for sourcing, developing and bringing to market a continuous stream of new products to complement over 2000 current skus. This involves true category management including sku reviews, packaging and merchandising, ad agency liaison, and new product development involving travel to the company’s offshore manufacturing facilities. Achieving market penetration, profitability targets and classic consumer products product management are your goals in this excellent career opportunity.
You can demonstrate successes in new product development, speed-to-market turnaround and the ability to transform concepts into reality. You may be a Retailing Merchant looking to move “to the other side”, or currently be a consumer products Product Management wizard. Montreal-based; relocation assistance will be provided if required.
Please contact Wolf Gugler in complete confidence, quoting file number C-14.
Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite 300, Don Mills, Ontario M3B 3N7 Phone: (416) 386-1719. Email: resumes@wolfgugler.com Web site: www.wolfgugler.com
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NATIONAL ACCOUNT MANAGER
Maxtech Consumer Products Group, an innovative and expanding designer, manufacturer and distributor of power tool accessories and hand tools currently has an opening for a high-level Account Manager/Sales Executive to grow our product penetration and expand our customer base, largely in the U.S. We offer a solid customer base, a unique and innovative product line, and a very dynamic work environment.
The ideal candidate will be a self-starter with experience in the hardware/DIY tool market and a proven track record of growing sales and market share, a willingness to travel and be highly motivated.
If you are interested, please forward cover letter and resumé to jobs@maxtech-mfg.com or fax: 519-885-6066
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DISTRICT SALES MANAGER – NORTHERN ONTARIO
Porter-Cable Delta, a recognized leader of quality woodworking, portable electric, equipment and air tools products, currently requires an enthusiastic professional as: District Sales Manager—Northern Ontario
A resourceful individual able to organize and communicate successfully, you will based in Sudbury directing the operations for your territory and meeting strategic objectives. As a high achiever, you have a minimum of 3 years sales experience in the hardware, automotive and/or HVAC industry. You have a valid driver’s license, a post secondary degree/diploma preferably in Business and are computer literate. A background in power tool sales and bilingual communication skills are desirable.
If you are looking for a progressive organization and a competitive compensation package, please fax your resumé to Human Resources at 519-836-9352, or email: TMAJOR@PORTERCABLE-DELTA.COM or mail to 505 Southgate Drive, P.O. Box 848, Guelph, Ontario N1H 6M7. We thank all applicants; however only candidates selected for an interview will be contacted.
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INDUSTRIAL SALES AGENT WANTED
TradeMASTER Tools, a full line power tool distributor, is looking for an experienced agent to build industrial/automotive accounts in Ontario. Fax reply to Sales Manager at 519-622-4472 or email: sales@trademasterltd.com
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CANADIAN SALES MANAGER: LADDERS
Located in Richmond Hill, ON, and reporting to the U.S. Director of Sales, the Canadian Sales Manager plans and directs the Ladder Division's sales strategy including sales volume objectives, sales profitability objectives, key account management, & marketing/merchandising programs.
Qualifications include four year college or university degree - in sales marketing or equivalent; 3 plus years experience in the hardlines/building products industry; excellent verbal and written communication skills; well organized and good problem solver; high energy level and self motivated team player; bilingual (French and English) preferred.
Interested candidates may submit their résumé no later than Monday, August 19, 2002 to: Lee Bennett, William L Bonnell Co., 25 Bonnell Street, Newnan, Georgia 30263; fax 770-254-7708 or e-mail:clbennett@bonlalum.com
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SERVICES OFFERED
WIN AT DIVERSIFIED STRATEGIC GROWTH IN THE UNITED STATES
Are you a Canadian building product or home improvement product manufacturer? Are you already selling in the United States or are planning to but need more horsepower to get to the next level?
Based on 23 years experience in Big Box Retail, Wholesale Distribution, OEM, New Home Builder and Renovation Contractor channels, Del Ray Company has knowledge of winning strategies in the U.S. marketplace.
Del Ray Company specializes in turnkey game plans to determine how to diversify risk by diversifying your channels of distribution in the United States. Find out how a multi-channel strategy in the United States can be a formula for success. Contact: Dave Murray, Del Ray Company; dtm2002@sympatico.ca; Tel. 416-277-5925;
Fax. 905-820-1053.
Strategic Expertise For Canadian Manufacturers.
************************************************************************************
Brand building power-assist
· Corporate ID modernizing
· Product packaging revitalizing
· Marketing program development
· Marketing Audit … reality check
cjohnston@synmark.net or phone: 905 849 4850
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NORAL INSTORE:
Don’t leave your products’ display management
to chance! Let Noral Instore take care
of your instore merchandising.
Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201
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SELL YOUR COMPANY - OR BUY ONE - WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.
ONLY $18 PER LINE FOR THREE WEEKS!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR EMAIL: bev@hardlines.ca
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vol. viii, #32 September 2, 2002