February 22, 2012
Sales Up In 2011
Retailers sold $454.1 billion worth of goods and services in 2011, up 3.6 per cent from 2010, says Statistics Canada. However, building material and garden equipment and supplies dealers posted a 2.6 per cent decline in 2011, more than offsetting the sales increase registered in 2010. In December, retail sales edged down 0.2 per cent to $38.6 billion. This followed four consecutive monthly increases. Declines were reported in seven of 11 subsectors, representing 61 per cent of retail sales. For the month, sales at building material and garden equipment and supplies dealers were up 2.4 per cent over November and 5.4 per cent compared to December 2010.
Home Depot Sales Increase
The Home Depot had sales of $16 billion for the fourth quarter of fiscal 2011, a 5.9 per cent increase from the fourth quarter of fiscal 2010. Comparable store sales for the fourth quarter of fiscal 2011 were positive 5.7 per cent. Net earnings for the fourth quarter were $774 million, compared with net earnings of $587 million in the same period of fiscal 2010. Sales for fiscal 2011 were $70.4 billion, an increase of 3.5 per cent from fiscal 2010. Total company comparable store sales for the year increased 3.4 per cent.
Quebec Companies Get Grants
Ultima Fenestration inc., of Saint-Georges-de-Beauce; and Gestion P.R.N. Vigneault inc., of Havre St-Pierre; are two of 11 Quebec companies sharing in $12.6 million in grants from Capital régional et coopératif Desjardins and the Caisse de dépôt et placement du Québec. Ultima Fenestration manufactures PVC doors and windows for distributors, factory-built home manufacturers, contractors, and individuals. Gestion P.R.N. Vigneault inc. is a management company made up of subsidiaries operating under the Unimat banner and focused mainly on providing hardware products and services.
Wal-Mart Post Second Consecutive Gain
Wal-Mart posted its second consecutive quarterly gain in revenue at stores opened at least a year in the fourth quarter. Revenue at these stores in the U.S. rose 1.5 per cent in the quarter. Overall, its U.S. business had a 2.1 per cent increase in revenue at stores opened at least a year, including a 5.4 per cent rise at Sam's Clubs. Net sales rose 5.9 per cent to $122.28 billion. Net income was $5.16 billion in the three months ended January. 31. That compares with $6.05 billion in the year ago period.
Store Brands Get Attention
“Store brands are at a unique time” as forces are converging to push their continuing growth, says James Russo, the Nielsen Company’s vice-president for global insights. Appearing on the February edition of PLMA Live, he said that as a result of the recession, “everyone is giving their attention to store brands” and the jump in private label penetration is not a momentary shift. The forces at work, he said, include retailers’ increased support for promoting their own brands and the fact that consumers now perceive store brands as on par with national brands. Store brands last year moved from 19.1 per cent dollar share to 19.5 per cent. Overall store brands grew by five per cent in dollar volume and outpaced national brands growth by two to one.
Lowe’s Plans Downsizing
The downsizing at Lowe’s will involve customer service employees and corporate staff, says a report in the Charlotte, NC, Observer. It reports a letter sent to Lowe’s employees earlier this month said the retailer wants to streamline processes and identify cost-savings opportunities. Buyout notices were given to eligible employees and employees who take the buyout will receive a lump-sum payment based on how long they've been with the company. If enough people do not take the ‘voluntary separation agreement,’ layoffs could follow. It is not known how many staff the company wants to eliminate.
Training Offered On Basement Moisture
A free online training course from CertainTeed Corporation on basement design and moisture management best practices has been approved by the U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) professional credentialing program. ‘A Systems Approach to Effective Basement Design’ examines moisture management and insulation in the context of a sustainable building foundation and includes material that informs LEED professionals about specific LEED system requirements.
Home Show Combines With Garden Festival
Canada’s largest and longest running consumer show will soon open its doors to an expected 200,000 guests. Co-locating to create North America’s largest home and garden experience, the National Home Show and Canada Blooms ‒ the flower and garden festival ‒ will take place March 16 to 25. The 10-day event brings home and garden specialists ‒ including top designers, celebrities, retailers, and knowledgeable experts ‒ to one location, the Direct Energy Centre at Exhibition Place in Toronto, ON. For more information, visit www.nationalhomeshow.com
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February 21, 2012
Leading Index Up In January
The composite leading index increased 0.7 per cent in January, following an identical gain in the previous month, says Statistics Canada. This was the seventh consecutive increase in the index. The increase was concentrated in manufacturing, housing, and services employment and was offset by declines in durable goods sales and equity prices. Furniture and appliance sales fell; their fifth straight decline. Spending on other durable goods also declined after posting gains since May.
Kitchen Sink Now An App
Designers and consumers can now identify the right granite sink and colour-co-ordinated countertop for their kitchen using their Apple iPhone, iPad, or iPod touch. The BLANCO Silgranit Sink Selector allows consumers to select from more than 150 models of sinks using a range of criteria including size of sink, kitchen cabinetry dimensions, and various sink style options. The App also includes images of top-selling quartz, granite, and laminate countertops so that users can select a countertop and see how their sink of choice looks with it. The App also allows users to snap and upload a picture of their existing countertop material to see how it looks with the sink.
Kingfisher Profits Expected To Rise
Profits at B&Q owner Kingfisher are set to rise 20 per cent despite the DIY chain suffering a drop in sales of home improvement and heating products. The group, which has 360 B&Q stores in the UK and Ireland, says like-for-like sales at the chain fell 2.5 per cent in the 13 weeks to January 28. The mild autumn weather meant a 50 per cent surge in sales of lawnmowers and barbecues, but this was offset by lower demand for heating products and a five per cent fall in sales across its indoor range. It benefited from the closure of rival Focus DIY earlier in the year, having bought 29 of its stores. Sales in France were up 3.7 per cent on a like-for-like basis at £4.5 billion across the year, compared with a 1.4 per cent drop to £4.4 billion in the UK and Ireland.
Sales Up At Builders FirstSource
Builders FirstSource had sales of $192.7 million for its fourth fiscal quarter, an increase of 31 per cent from sales of $147.1 million in the fourth quarter a year ago. The company estimated that sales increased approximately 29 per cent due to increased sales volume and two per cent due to price. Net loss for the quarter, which ended December 31, was $16.7 million, compared with $24.6 million in the corresponding period a year ago.
Neuromarketing Improves Sales
‘Neuromarketing ‒ a revolutionary approach to improving sales and marketing’ will be examined at the ‘2012 ICSC Western Canada Business Forum.’ Bob Bailly, founder of Brandcops, will explain how by applying information gleaned from the sciences of the brain to communicate and sell. It takes place March 19 to 21 at Delta Lodge at Kananaskis, AB. For more information, visit http://www.icsc.org/apps/meeting_display.php?meeting=2012WC&mailid=12WC2_1L
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February 17, 2012
Orgill Reveals Canadian Store
More than 120 Castle members from across Canada were on hand to experience the first ever Orgill Canadian hardware store. The 4,000 square foot Canadian compliant store displayed more than 12,000 skus and boasted a complete hardware solution with Canadian compliant bilingual packaging and merchandising. Castle has worked with Orgill over the past 18 months to create a turn-key, fully Canadian compliant program that effectively meets the needs of Castle members nationwide. James Jones, vice-president of national marketing, Castle Building Centres Group, says “we now have more than 50,000 Canadian compliant products available to our members. This really is our Canadian hardware vision coming to life for Castle members in Canada” The Castle-Orgill partnership began more than five years ago when Castle recognized that the Canadian hardware industry was evolving and current distribution models were no longer satisfying the needs of today’s’ independent.
Retail Sales Up In Quebec
With retail sales of $101.4 billion in Quebec, representing a 2.5 per cent increase over 2010, the Quebec retail sector has managed to hold its own, says a study from the Conseil québécois du commerce de détail (CQCD). It did not achieve the predicted three per cent increase for 2011 and experienced its smallest growth since 2005, with the exception of 2009 when it registered negative growth of -1.1 per cent. However, renovation, hardware, building and gardening centres suffered a -3.3 per cent decline in sales. The CQCD predicts that retail sales in Quebec will see an increase of two per cent to 2.2 per cent in 2012.
Sears Cuts Prices
Sears Canada is cutting prices on 15 to 20 per cent of its items by up to 20 to 30 per cent. The price reductions, which are permanent, will be on everything from coffee makers to drills. In addition to the broad value-based pricing strategy, it will introduce a new weekly price-cutting program and in-store merchandising will align more directly to what is being promoted in the flyers. The move comes as the retailer faces increasing pressure to boost sales as part of a strategy to compete in a retail market preparing for the arrival of Target next year.
Consumer Confidence Slips
After a very encouraging surge of consumer confidence in January, Canadians have reverted to a more jaded view of the economy and their own prospects, says a consumer confidence survey by TNS Canada. After a dramatic rise to 98.6 in January, its ‘Canada Consumer Confidence Index’ dropped back to a more 'normal' level of 95.1 in February. The ‘Present Situation Index,’ which measures how people feel about the economy right now, dropped 5.5 points, from 97.9 in January to 92.4 in February, losing any gains which were made in January. Unfortunately, this indicates that any New Year's optimism reported last month has since dissipated and that Canadians are feeling considerably worse about their situation right now compared to a month ago.
Canadian Tire Looks For Innovative Items
Canadian Tire has kicked off its second annual ‘Unwrap the Ultimate Auto Gifts’ search, a two-day event designed to discover the latest and most innovative must-have holiday items for auto enthusiasts in Canada. The program gives existing and new vendors, manufacturers, distributors, and entrepreneurs an opportunity to pitch their products to a panel of judges comprised of Canadian Tire automotive business managers and executives. Those selected may see their products on Canadian Tire shelves in time for the 2012 holiday season. At the 2011 search, Canadian Tire introduced 155 new products which generated a 2.7 per cent increase in automotive sales for the year.
Tool Documents Products
Through the introduction of EcoDocs, architects, contractors and other building professionals now have an online tool for documenting CertainTeed insulation, ceilings, and gypsum products used in LEED projects. EcoDocs provides custom documentation letters designed for specific LEED rating programs and is available 24/7 to help meet the sustainability criteria for specified CertainTeed products. It includes detailed information on hundreds of insulation, gypsum, and ceilings products ‒ including various sizes, colours, and finishes ‒ ensuring accurate and detailed specifications on every project.
Akzo Nobel Reports Loss
Akzo Nobel NV, the world's largest maker of paints and coatings, had a €68 million ($89 million) loss for the fourth quarter due to rising commodity costs and a one-time charge. The loss compares to profit of €162 million in the fourth quarter of 2010. Sales rose 4.7 per cent to €3.79 billion. Its paint arm, which supplies Walmart, was badly hit by rising costs of titanium dioxide, a key paint pigment. The company's coatings and chemicals arms saw relatively mild declines in operating profit, also due to rising raw materials costs.
Homebuilder Confidence Increases
Homebuilder confidence in the U.S. increased for the fifth consecutive month in February, says the National Association of Home Builders, with the index of homebuilder confidence jumping to its highest level in more than four years. The report showed that the ‘NAHB/Wells Fargo Housing Market Index’ surged up to a reading of 29 in February from a reading of 25 in January. With the much bigger than expected increase, the index rose to its highest level since coming in at a reading of 30 in May of 2007.
Caisse Invests In Novatech
The Caisse de dépôt et placement du Québec has invested $16.7 million in Novatech Group Inc., one of the largest Canadian manufacturers of doorglass components. The founder of the company is disposing of a portion of its interest in the Caisse in connection with a program to progressively transfer ownership to its successors. “A number of Québec entrepreneurs will soon have to plan the transfer of their companies to the next generation of leaders. The Caisse expects to continue to be a key player contributing to these companies’ growth while generating returns for its depositors,” says Normand Provost, executive vice-president, private equity and chief operations officer at the Caisse.
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February 16, 2012
Canadian Tire Tries New ‘Money’ Program
Canadian Tire is upgrading its iconic loyalty program. February 24, it will launch a pilot program, initially available only in Nova Scotia's 21 Canadian Tire stores, the Canadian Tire 'Money' Advantage program. It offers members the option to collect Canadian Tire 'Money' Advantage points electronically with a loyalty card or key chain fob. Alternatively, customers not participating in the program can still collect Canadian Tire 'Money' in paper form as it has existed for 54 years. Rewards can be redeemed for more than 90,000 products at Canadian Tire stores or donated to Canadian Tire Jumpstart or other eligible community groups.
Resale Activity Retreats
National resale housing activity retreated in January 2012 from the strong finish reported for December 2011, says the Canadian Real Estate Association (CREA). Sales activity recorded through the MLS systems of real estate boards and associations in Canada fell 4.5 per cent from December 2011 to January 2012. This marks the first monthly decline in national activity since August 2011 and the biggest monthly decline since July 2010. The monthly decline reversed a string of monthly increases over the closing months of last year and returned national activity to where it stood at the end of the third quarter of 2011. Activity was down in over half of all local markets in January from the previous month. Led by declines in Greater Toronto, ON, and Montréal, QC, demand also softened in a number of other major urban centres including Calgary and Edmonton, AB; Winnipeg, MB; Ottawa, ON; and Greater Vancouver, BC.
Small Businesses Get Tools
Ceridian Canada Ltd. has launched an online service that gives small business owners the tools necessary to pay and manage their people in one convenient location. Ceridian for Small Business (www.ceridiansmallbusiness.ca) provides employee-related solutions which can result in up to a nine per cent reduction in labour costs for organizations with less than 50 employees. It provides a single-source provision of employee-related services by allowing employers to simply go online to arrange the monthly service plan that best suits their needs. Upon registering, they can access Ceridian's range of payroll services and, when the need arises, on matters such as employment law advice, recruiting, background checking, and training.
Wal-Mart Using Quintiq
Wal-Mart Stores, Inc. will use Quintiq, Inc. to provide a next-generation load assignment and dispatch system designed to lower the total miles driven and improve the efficiency of the retailer's U.S. fleet. Its software, configured for the retail and distribution industry, is used to support the logistics load managers at Wal-Mart with assigning loads to driver-truck combinations to create optimal sets of trips. Based on real-time updates from the driver's on-board computer, its engine continuously re-optimizes the sequence of trips and provides recommendations to logistics load managers through its user interface.
Owens Corning Reports Profit
Owens Corning posted a $50 million fourth-quarter profit on higher sales and lower costs, reversing a loss in the same quarter last year. Revenue rose two per cent to $1.2 billion from $1.17 billion as it got a boost from its building materials business where revenue rose 7.5 per cent to $771 million.
Creditors Accept Plan
Hart Stores Inc. creditors have accepted an amended Plan of Compromise and Arrangement filed by Hart Stores pursuant to the Companies' Creditors Arrangement Act (Canada). It is expected that Hart Stores will present the amended plan to the Québec Superior Court for ratification on February 27. If ratified, the plan will become binding on all affected creditors. The plan provides that Hart Stores will make payments totaling $6 million over three years for distribution to its unsecured creditors.
Valspar Sales Up
Paint manufacturer Valspar had first-quarter sales of $885.6 million, a 5.1 per cent increase from the first quarter of 2011. Net income for the first quarter, which ended January 27, was $55.8 million, compared with net income of $33.4 million in the same quarter a year ago.
Choinière-Codaire Joins OGC
Antoine Choinière-Codaire is regional development manager for Quebec and the Atlantic provinces at OGC. His role will be to devise solutions that can help retailers increase their day-to-day competitiveness.
February 16 Product Spotlight
• The ARROW hook from UMBRA is great for tight spaces and entrance ways. Functional and decorative, it provides the ability to hang items on the hook or place items through it.
• DELTAPower Equipment Corporation 1½ HP Portable Cyclone Dust Collector, Model 50-905, is designed with cyclonic action to separate and force large particles into the chip barrel (32 gallon capacity) while small dust particles are trapped in the one micron canister filter and lower bag. The chip barrel system simplifies the emptying of the bag.
• Milwaukee Tool’s M18 FUEL ½″ Drill/Driver (2603-20/22) and M18 FUEL ½″ Hammer Drill/Driver (2604-20/22) combine its POWERSTATE brushless motor, REDLITHIUM battery pack, and REDLINK PLUS intelligence to provide up to 725″-lbs of torque with reduced noise and rapid cooling. REDLINK PLUS Intelligence i integrates full-circle communication between the tool, battery, and charger and constantly monitors this internal network to maintain ideal conditions.
• Royal International’s SecureLine Cordage packaging uses a colour swatching system and application images to simplify the purchasing process for the consumer, enabling them to choose the best rope for their need. It has launched 13 rope and cord innovations under two categories. Visiflect is a high visibility reflective rope available in two sizes and safety colours. Camouflage literally ‘disappears’ in the environment. It comes in three sizes and designs.
• Gear Keeper’s RT3-5601 retractable tether for tools up to two pounds is particularly valuable when working in close quarters or climbing. Available in high visibility orange, the retractable tether’s ultra low profile keeps tools close to the body when stored while still allowing complete accessibility in all directions when in use.
• freedomRail offers functional storage solutions for any area of the home without compromising style. The only part of the system that gets installed in the wall is the rail. Everything else can be adjusted up, down, left or right at any time without tools.
• Fiskars has expanded its reel mower family for 2012. The StaySharp family consists of three reel mowers ‒ the 18" StaySharp Max (formerly the Momentum), the 17" StaySharp Plus, and the 17" StaySharp. The cutting systems keep blades sharp and make the mowers easier to push and allow them to cut all common types of residential grasses.
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