HARDLINES™ Five years serving Canada's home improvement industry September 5, 2000 - Volume vi, #33 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: * Home Depot moves into Montréal; Réno-Dépôt fights back * Sears opens new formats with more hardlines * Rona sales up 30% in first half * Housing starts jump 22.6% in June * * * * * *   My apologies for all the extra copies you received lately. I'm having a big screw up with my email software but it's being fixed as we speak. Keep the faith: we'll be back to normal very soon! - Michael NETWORKING AT OUR MARKETING CONFERENCE - This year's Hardlines Marketing Conference will conclude with a mix-and-mingle cocktail reception, thanks to the sponsorship of Cologne International Trade Shows. What a great way to meet more than 200 fellow delegates and speakers - and have a drink and a bite on us! SPECIAL RATE HOTEL ROOMS RUNNING OUT FOR THE CONFERENCE - We blocked off a number of rooms at a special low rate at the Marriott Eaton Centre Hotel for our Hardlines Marketing Conference on September 14. But I think the rooms are almost all gone, so If you want to book one, I urge you to call right away: 1-800-905-0667. - MM SPONSOR UPDATE: I'm pleased to add the following companies as sponsors of our upcoming Conference: Black Eagle Consulting, Georgetown, ON; Power Packaging, Vancouver, BC.  
QUÉBEC: THE NEXT BIG BOX BATTLEGROUND   Home Depot Canada opened its first store in the Québec market last week, in the Montréal suburb of Laval. Home Depot intends to have at least 10 stores in the Montréal area, with up to 20 stores throughout Québec province eventually. This marks Home Depot's 59th store in Canada. Georges Badras is manager of the new store. The next two will open in Lachenais and Gatineau in spring 2001. Not to be outdone, Réno-Dépôt announced the opening of two more of its stores in spring 2001. The announcement was made the day before the Home Depot opening. The new stores will be built at a combined cost of $42 million and employ at least 600 people. The first one will be in Laval, making it the second for Réno-Dépôt in this market, and the third in total with the arrival of Home Depot. It will be at the corner of Highway 13 exit and Samson Boulevard, with construction beginning this fall. The second store will be erected in Beauport at 225 Jacques-Casavant, at the intersection of Seigneurial and Highway 40. Réno-Dépôt already has 11 big box stores throughout Quebec, mainly in and around Montréal. With the battle heating up in Montréal, Revy Home and Garden could not afford to sit on the sidelines and has been scouting out four or five sites of its own there. With Home Depot taking aim at Réno-Dépôt's turf, the Montréal-based retailer is trying to establish itself in the Southern Ontario market. It has announced it will open as many as 15-20 stores in that province over the next five years. Three stores are already planned for this year under the Building Box name. The first will be in Cambridge, followed by Brampton and Scar-borough. Home Depot's expansion eastward will not end in Québec. The first two will stores in Atlantic Canada will open simultaneously in Halifax and Dartmouth, NS in November, followed by Moncton, NB in July 2001. There are now more than 100 big home improvement boxes in Canada. Expansion continues throughout the Americas. On the same day as the Montréal opening, Home Depot opened its first of eight stores in Argentina. It will also add three more stores in Chile next year for a total of seven in that country. * * * * * * NEW CONCEPT SEARS FEATURES EXPANDED HARDLINES Sears Canada launched two new-concept, larger scale Sears department stores in Toronto on August 17. Located in Scarborough Town Centre and Sherway Gardens, the new outlets average 150,000 sq.ft. each and feature expanded areas for hardlines. In fact, an entire floor in each store has been dedicated to home products - with the emphasis on home fashion. Hardware, major appliances, home improvement services and catalogue shopping round out the merchandise assortment. The expansion also marks the first time Sears has featured hard goods and catalogue shopping at its Sherway Gardens location. The stores feature two other new concepts: the Sears Catalogue Café, a combination catalogue store and café, and Sears Travel Superstore, a travel agency and travel goods store. Both locations were formerly Eaton's stores.  
COMPANIES IN THE NEWS   For the six months ended June 30, Rona Inc. recorded net earnings of $7.4 million, an increase of 28.1% over a year earlier. Net sales totalled $657.8 million, up 30.3% over the first half of the previous year. Sales at retail for the period were $ 1.1 billion. Not including the acquisition of Cashway, which added about $311 million in sales, Rona's net sales increased 7.7%, due primarily to sales by its large-surface stores. Home Depot has opened its third Villager's Hardware store. At just over 36,000 sq.ft. in size, it features about 40,000 SKUs of hardware and garden products. All three stores are in New Jersey, where they are being tested at least until the end of this year before being rolled out to other markets (including Canada eventually). Profitmaster Canada has launched an online tool rental program called OpenRentalDesk. The service enables potential users to shop the cost and availability of rental tools from a number of retailers. It then expedites the transaction electronically on the retailer's behalf. Newell Rubbermaid Inc. has entered into a definitive agreement to acquire Gillette Co.'s stationery products business, subject to regulatory approvals. Stationery Products includes Paper Mate, Parker and Waterman writing instruments and Liquid Paper. Sales in 1999 were US$743 million. Rona Inc. has announced it will sponsor cyclist Geneviève Jeanson. The double junior world champion in 1999 will participate in the upcoming Olympic Games in Sydney, Australia. Rona will supply Jeanson with financial support in addition to showcasing her on its website. She in turn will participate in promotional activities and corporate events and attend store openings. The renewable sponsorship agreement is for 18 months. TechTronic Industries Co. has completed its acquisition of Ryobi's power-tool operations. The purchase includes Ryobi Technologies in Cambridge, ON, Ryobi Technologies in Anderson, SC, and OWT Technologies in Pickens, SC. TechTronic bought Ryobi's copyrights and will continue to manufacture power tools under the Ryobi name.
  CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 22.40
Canfor 19.80 10.10 11.30
Goodfellow 12.55 8.75 9.95
Home Depot 70.00 35.75 48 9/16
Hudsons Bay 23.85 12.50 15.70
Lowe's Cos. 67.25 40.37 46 13/16
Sears Canada 42.50 29.00 34.80
Taiga Forest 14.75 7.00 8.25
West Fraser 41.00 27.50 29.50
    "Prejudice is the reason of fools." - Voltaire (1694 - 1778)
PEOPLE ON THE MOVE   The following changes have been made at the D.H. Howden Division of Sodisco-Howden Group: Richard Mitton has been appointed regional sales manager - Atlantic Canada; Dave Dingwell has been put in charge of new business development in the Atlantic region … In Ontario, Peter Ulmer has been named regional sales manager. All Ontario account managers will report to Ulmer … Glen Duczek has been named to national accounts and Pro banner manager. (519-686-2200) At Noral Marketing Ltd., Dave Leslie has been appointed manager, sales & merchandising. (519-439-6800) Michael G. Shurety has been appointed CEO at Inline Fiberglass. He joins with 25 years of senior management experience in integrated manufacturing. (416-679-1171)  
MARKET INDICATORS   Housing starts in July increased 22.6% from June, according to CMHC. The annual rate of housing starts reached 165,500 units seasonally adjusted, compared with 135,000 a month earlier. Urban single starts were up 57.1% to 68,200 units, while multiples grew 5.1% to 76,300 units. In Ontario, starts rose 41.1%, due largely to a 92.6% jump in multiples following a strike by concrete truck drivers earlier in the summer. Québec urban starts were up 29.7% to 21,400 units seasonally adjusted. In Atlantic Canada, urban starts were up 37%, while the Prairies were down 4.4%. British Columbia was down 6.6%, due to a 14.8% drop in multiple starts. Retail sales grew in June to $22.9 billion, up 0.8% over May. June's retail sales were up 6.3% over June 1999. Excluding automotive sales, retail increased 0.4% in June. The value of building permits jumped 7.2% from May to June, says Stats Canada. Residential permits increased 4.8% to $1.7 billion, thanks mainly to growth in multi-family dwellings.  
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 5, 2000 - Volume vi, #33 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: * Home Depot moves into Montréal; Réno-Dépôt fights back * Sears opens new formats with more hardlines * Rona sales up 30% in first half * Housing starts jump 22.6% in June * * * * * *   My apologies for all the extra copies you received lately. I'm having a big screw up with my email software but it's being fixed as we speak. Keep the faith: we'll be back to normal very soon! - Michael NETWORKING AT OUR MARKETING CONFERENCE - This year's Hardlines Marketing Conference will conclude with a mix-and-mingle cocktail reception, thanks to the sponsorship of Cologne International Trade Shows. What a great way to meet more than 200 fellow delegates and speakers - and have a drink and a bite on us! SPECIAL RATE HOTEL ROOMS RUNNING OUT FOR THE CONFERENCE - We blocked off a number of rooms at a special low rate at the Marriott Eaton Centre Hotel for our Hardlines Marketing Conference on September 14. But I think the rooms are almost all gone, so If you want to book one, I urge you to call right away: 1-800-905-0667. - MM SPONSOR UPDATE: I'm pleased to add the following companies as sponsors of our upcoming Conference: Black Eagle Consulting, Georgetown, ON; Power Packaging, Vancouver, BC.  
QUÉBEC: THE NEXT BIG BOX BATTLEGROUND   Home Depot Canada opened its first store in the Québec market last week, in the Montréal suburb of Laval. Home Depot intends to have at least 10 stores in the Montréal area, with up to 20 stores throughout Québec province eventually. This marks Home Depot's 59th store in Canada. Georges Badras is manager of the new store. The next two will open in Lachenais and Gatineau in spring 2001. Not to be outdone, Réno-Dépôt announced the opening of two more of its stores in spring 2001. The announcement was made the day before the Home Depot opening. The new stores will be built at a combined cost of $42 million and employ at least 600 people. The first one will be in Laval, making it the second for Réno-Dépôt in this market, and the third in total with the arrival of Home Depot. It will be at the corner of Highway 13 exit and Samson Boulevard, with construction beginning this fall. The second store will be erected in Beauport at 225 Jacques-Casavant, at the intersection of Seigneurial and Highway 40. Réno-Dépôt already has 11 big box stores throughout Quebec, mainly in and around Montréal. With the battle heating up in Montréal, Revy Home and Garden could not afford to sit on the sidelines and has been scouting out four or five sites of its own there. With Home Depot taking aim at Réno-Dépôt's turf, the Montréal-based retailer is trying to establish itself in the Southern Ontario market. It has announced it will open as many as 15-20 stores in that province over the next five years. Three stores are already planned for this year under the Building Box name. The first will be in Cambridge, followed by Brampton and Scar-borough. Home Depot's expansion eastward will not end in Québec. The first two will stores in Atlantic Canada will open simultaneously in Halifax and Dartmouth, NS in November, followed by Moncton, NB in July 2001. There are now more than 100 big home improvement boxes in Canada. Expansion continues throughout the Americas. On the same day as the Montréal opening, Home Depot opened its first of eight stores in Argentina. It will also add three more stores in Chile next year for a total of seven in that country. * * * * * * NEW CONCEPT SEARS FEATURES EXPANDED HARDLINES Sears Canada launched two new-concept, larger scale Sears department stores in Toronto on August 17. Located in Scarborough Town Centre and Sherway Gardens, the new outlets average 150,000 sq.ft. each and feature expanded areas for hardlines. In fact, an entire floor in each store has been dedicated to home products - with the emphasis on home fashion. Hardware, major appliances, home improvement services and catalogue shopping round out the merchandise assortment. The expansion also marks the first time Sears has featured hard goods and catalogue shopping at its Sherway Gardens location. The stores feature two other new concepts: the Sears Catalogue Café, a combination catalogue store and café, and Sears Travel Superstore, a travel agency and travel goods store. Both locations were formerly Eaton's stores.  
COMPANIES IN THE NEWS   For the six months ended June 30, Rona Inc. recorded net earnings of $7.4 million, an increase of 28.1% over a year earlier. Net sales totalled $657.8 million, up 30.3% over the first half of the previous year. Sales at retail for the period were $ 1.1 billion. Not including the acquisition of Cashway, which added about $311 million in sales, Rona's net sales increased 7.7%, due primarily to sales by its large-surface stores. Home Depot has opened its third Villager's Hardware store. At just over 36,000 sq.ft. in size, it features about 40,000 SKUs of hardware and garden products. All three stores are in New Jersey, where they are being tested at least until the end of this year before being rolled out to other markets (including Canada eventually). Profitmaster Canada has launched an online tool rental program called OpenRentalDesk. The service enables potential users to shop the cost and availability of rental tools from a number of retailers. It then expedites the transaction electronically on the retailer's behalf. Newell Rubbermaid Inc. has entered into a definitive agreement to acquire Gillette Co.'s stationery products business, subject to regulatory approvals. Stationery Products includes Paper Mate, Parker and Waterman writing instruments and Liquid Paper. Sales in 1999 were US$743 million. Rona Inc. has announced it will sponsor cyclist Geneviève Jeanson. The double junior world champion in 1999 will participate in the upcoming Olympic Games in Sydney, Australia. Rona will supply Jeanson with financial support in addition to showcasing her on its website. She in turn will participate in promotional activities and corporate events and attend store openings. The renewable sponsorship agreement is for 18 months. TechTronic Industries Co. has completed its acquisition of Ryobi's power-tool operations. The purchase includes Ryobi Technologies in Cambridge, ON, Ryobi Technologies in Anderson, SC, and OWT Technologies in Pickens, SC. TechTronic bought Ryobi's copyrights and will continue to manufacture power tools under the Ryobi name.
  CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
       
Canadian Tire 43.40 18.40 22.40
Canfor 19.80 10.10 11.30
Goodfellow 12.55 8.75 9.95
Home Depot 70.00 35.75 48 9/16
Hudsons Bay 23.85 12.50 15.70
Lowe's Cos. 67.25 40.37 46 13/16
Sears Canada 42.50 29.00 34.80
Taiga Forest 14.75 7.00 8.25
West Fraser 41.00 27.50 29.50
    "Prejudice is the reason of fools." - Voltaire (1694 - 1778)
PEOPLE ON THE MOVE   The following changes have been made at the D.H. Howden Division of Sodisco-Howden Group: Richard Mitton has been appointed regional sales manager - Atlantic Canada; Dave Dingwell has been put in charge of new business development in the Atlantic region … In Ontario, Peter Ulmer has been named regional sales manager. All Ontario account managers will report to Ulmer … Glen Duczek has been named to national accounts and Pro banner manager. (519-686-2200) At Noral Marketing Ltd., Dave Leslie has been appointed manager, sales & merchandising. (519-439-6800) Michael G. Shurety has been appointed CEO at Inline Fiberglass. He joins with 25 years of senior management experience in integrated manufacturing. (416-679-1171)  
MARKET INDICATORS   Housing starts in July increased 22.6% from June, according to CMHC. The annual rate of housing starts reached 165,500 units seasonally adjusted, compared with 135,000 a month earlier. Urban single starts were up 57.1% to 68,200 units, while multiples grew 5.1% to 76,300 units. In Ontario, starts rose 41.1%, due largely to a 92.6% jump in multiples following a strike by concrete truck drivers earlier in the summer. Québec urban starts were up 29.7% to 21,400 units seasonally adjusted. In Atlantic Canada, urban starts were up 37%, while the Prairies were down 4.4%. British Columbia was down 6.6%, due to a 14.8% drop in multiple starts. Retail sales grew in June to $22.9 billion, up 0.8% over May. June's retail sales were up 6.3% over June 1999. Excluding automotive sales, retail increased 0.4% in June. The value of building permits jumped 7.2% from May to June, says Stats Canada. Residential permits increased 4.8% to $1.7 billion, thanks mainly to growth in multi-family dwellings.  
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.)