Industry News

CGC Inc. Celebrates 100 Years In Canada

CGC Inc. is celebrating 100 years in Canada. First known as Canadian Gypsum Company, CGC began in Nova Scotia, in 1907. At that time, operations largely concerned quarrying and exporting gypsum rock to the United States. Today, after decades of product development and market expansion, CGC is recognized as a key player in Canada's building materials industry providing drywall, ceiling, flooring, roofing, and specialty building materials to residential, commercial, and institutional sectors.

Construction Intentions Cool

Construction intentions cooled down in July as the value of building permits declined, halting two months of record-setting performances, says Statistics Canada. Municipalities issued building permits worth $6.2 billion, down 11.3 per cent from $6.9 billion in June. Still, July was one of only a handful of months in which permits exceeded the $6-billion mark. At $6.9 billion in both May and June, the total value of permits was at its highest level on record.
 
Sears Opens In Wasaga Beach

Sears Canada Inc. has opened a new Sears dealer store in Wasaga Beach, ON. The 2,650 square foot store is owned and operated by Stan McEwan. It will house a wide selection of major appliances, electronics, vacuums, lawn and garden products, and Sears exclusive brands Kenmore and Craftsman.

U.S. Housing Slump To Continue

Frank Blake, chairman and chief executive of the Home Depot Inc., expects the slumping housing market in the U.S. to dampen business further into 2008. Speaking at a Goldman Sachs investment conference, he said 2007 is “going to continue to be a tough year” and it expects this to continue for much of 2008. The company had hoped to see the housing industry to start recovering later this year, but troubles in the mortgage industry has set that back.
 
 
Lose Weight At Self-checkout

The average American woman could lose 4.1 pounds a year simply from resisting the urge to purchase impulse items such as chocolate candies, chips, and soda once they are in the checkout line, says a study from IHL Consulting Group. Self-checkout systems have a dramatic impact on the purchase of impulse items at checkout. Impulse purchases among women drop 32.1 per cent and men 16.7 per cent when self-checkout is used instead of a staffed checkout. The primary reason is that self-checkout devices are not as merchandised as staffed lanes in most retailers. Additionally, there is usually a shorter line at each unit, removing the captive audience with the tempting impulse items in front of them.

New Record For Residential Construction

Residential construction investment achieved a new record in the second quarter of 2007, reaching $22.8 billion, an increase of seven per cent over the same quarter in 2006, says Statistics Canada. Increases in the values of both renovations and new housing made strong contributions to this growth. Investment in new residential construction climbed 6.1 per cent to $11 billion over the second quarter of 2006. Renovation spending grew 9.1 per cent to $9.9 billion, the highest quarterly level on record. This accounted for 43.5 per cent of total residential investment. 

Homeowners Paid To Showcase Dream Renovations

Homeowners frustrated with renovations that never quite look the way they imagined are about to get a big boost both visually and financially with Home Hardware’s first annual ‘Picture the Difference’ contest. The contest, which runs to January 26, 2008, allows homeowners to create a dream renovation with HomeWorks, Home Hardware’s pre-visualization software, and then submit the finished project to contest judges online.
 
Show Open To Public

Kolenmesse’s ‘Open to the Public’ concept for the International Hardware Fair/Practical World 2008 is beginning to take shape. In addition to European vendors such as ABUS, Burg Wachter, and GAH Alberts who have signed up to exhibit at the fair, leading retailers who traditionally attend the show as buyers will exhibit in the ‘Open to the Public’ halls. Toom Baumarkt, OBI, and BayWa are among the retail chains that will take advantage of this opportunity to reach do-it-yourselfers and tradesmen directly. It takes place March 9 to 12, 2008, in Cologne, Germany. For more information, visit www.hardwarefair.com.
 
Home Depot Opens Chinese Stores

Home Depot’s entry into China is now official with the grand opening at rebranded stores in six locations. The former Home Way units, purchased in December 2006, were remodeled and remerchandised. Altogether, Home Depot will operate 12 stores in six cities.

Fraser Shuts Down Mill

Fraser Papers will close a Juniper, NB, mill that manufactures pulp-based supplies and lumber products for home builders. It will shut down the mill for up to 11 months starting October 5. Fraser cited a weak housing market in the United States, continued oversupply of lumber, and a strong Canadian dollar for contributing to operating losses at the mill.
 
Future Of Independent Discussed

The future of the independent LBM owner/operator from a Castle perspective will be one of the areas covered when James Jones, vice-president, marketing, at Castle Building Centres Group Ltd. speaks at the next CHHMA breakfast seminar. Jones will also discuss its plans and expectations for the future. It takes place September 11 in Richmond Hill, ON. For more information, visit www.chhma.ca.
 

Wal-Mart Purchases Reach $1.75 Billion

Wal-Mart’s first report on its ‘Purchased in Quebec’ program shows it has purchased goods from 1,669 Quebec companies worth $1.75 billion. The program, which came into effect in June 2006, had two goals. One was to purchase more goods from Quebec suppliers and to encourage its clients to buy Quebec products. As well, it wanted to reinforce the business relationship it has established with suppliers in Quebec. At the first Green Fair for Quebec suppliers offering organic, ecological, or fair trade products, held jointly by Wal-Mart and the Fédération des chambres de Commerce du Québec, it also announced it intends to reduce waste produced in Canada by 65 per cent and greenhouse gas emissions by 25 per cent over five years.

Home Repair Sales Dropping

U.S. sales of home repair and remodeling products should drop 1.3 per cent to $308.9 billion this year and the picture is not expected to improve until mid-2008, says the Home Improvement Research Institute. The decline would be the first since 1991 and only the third since it began tracking industry figures in 1977.
 
Home Depot Agrees To Revised Terms Of Sale

The Home Depot has amended the purchase and sale agreement for HD Supply to an acquisition corporation formed by affiliates of Bain Capital Partners; The Carlyle Group; and Clayton, Dubilier & Rice. The terms of the purchase and sale agreement were amended to a purchase price of $8.5 billion. As well, The Home Depot will purchase a 12.5 per cent equity interest.

Composite Index Advances

The composite leading index advanced 0.4 per cent in July, says Statistics Canada. Of the 10 components, six expanded – one more than in June – while two were unchanged and two declined. Household spending remained the main source of growth, while manufacturing continued to lag.

Homebuilder Expo Returns

The 11th annual HomeBuilder & Renovator Expo will be held November 28 to 30 in Toronto, ON. It will be held in conjunction with Construct Canada, PM Expo, DesignTrends, and Concrete Canada. For more information, visit www.homebuilderexpo.com.

Performance And Value Theme Of Festival

‘Building Performance, Building Value’ will be the theme of the third annual Toronto Regional Green Building Festival. It will feature more than 70 exhibitors representing the forefront of Canada’s sustainable building industry. It takes place October 24 and 25 in Toronto, ON. For more information, visit www.greenbuildingfest.com.

Consumers Take Break  

Consumers took a shopping break in June following the largest monthly sales increase in almost a decade in May, says Statistics Canada. Total retail sales fell 0.9 per cent to an estimated $34.6 billion in June after advancing 2.6 per cent in May. Building and outdoor home supplies stores fell moderately, 0.3 per cent, in June after rebounding in May from April's sales declines while sales at home centres and hardware stores slipped 0.5 per cent.

RONA Works On Sustainable Development Plan

RONA Inc. will reveal its strategic plan for sustainable development at the end of October. Announced in early 2007, RONA is currently conducting an exhaustive review of its sustainable development practices. Sustainable development has long been a priority at RONA and it has a responsible purchasing policy that applies to all of its products. As well, RONA is a Canadian pioneer in the recycling of paint, having participated in the establishment of the first such program 10 years ago.

Lowe’s Has Record Earnings

Lowe’s had second quarter earnings of $1.02 billion, up nine per cent from $935 million last year, a record, according to the company. Sales for the quarter were up 5.8 per cent to $14.2 billion from $13.4 billion last year. Lowe’s opened 26 new stores in the United States during the quarter, bringing the company’s total store count to 1,424 stores in 49 states. The company expects to open 40 new stores in the third quarter.
 
Canadian Home Sales To Rise

Even as the U.S. housing market continues to unravel, record home buying activity in Canada has prompted even higher sale targets and further projected price increases. Sales of existing homes are expected to reach 523,100 units this year, an 8.1 per cent increase over last year, says a Canadian Real Estate Association forecast. That is up from a previous target of 500,995 units and 3.6 per cent growth. Not only are sales expected to set records in most provinces this year, prices are forecast to reach new highs in every province both this year and in 2008, although the pace of price increases will ease next year. Nationally, the average price is seen rising 10.4 per cent to $305,900 this year and adding another 5.5 per cent to $322,700 in 2008.

Home Depot Earnings Drop

The Home Depot’s earnings for the 2007 second quarter dropped to $1.5 billion from $1.7 billion in the same period in fiscal 2006. Sales for the second quarter totaled $22.2 billion, a 1.8 per cent decrease from the second quarter of fiscal 2006, reflecting negative comparable store sales of 5.2 per cent, offset in part by sales from new stores.
 
Wal-Mart Has Record Sales

Wal-Mart had second quarter sales of $91.99 billion, up 8.8 per cent over last year. Net income rose 49 per cent to $3.1 billion compared with $2.18 billion last year. In the company’s Wal-Mart Stores division, sales rose 6.5 per cent to $59.01 billion from $55.39 billion last year. Sales at Sam’s Club stores rose 8.6 per cent to $11.38 billion from $10.47 billion in the previous year. International sales showed the most growth at 15.7 per cent, to $21.6 billion from $18.66 billion last year.

Robinson Leaves Lowe’s

Don Stallings has replaced Doug Robinson as president of Lowe’s Canada. Stallings joined Lowe’s in 1994 and has served as district manager, merchandising vice-president, and, most recently, as regional vice-president – operations for Lowe’s south central division. Lowe’s says it is still on track to open six stores in Canada by the end of the 2007 fiscal year. Robinson resigned for personal reasons.

Home Depot Renegotiating HD Supply Sale Price

The Home Depot is in discussions with affiliates of Bain Capital Partners, The Carlyle Group, and Clayton, Dubilier & Rice to restructure the previously announced agreement for the sale of HD Supply. These discussions could result in material changes to the terms and financing of the transaction, including a reduction in the $10.325 billion purchase price.

Canadian Tire Earnings Rise

Canadian Tire Corp.’s second quarter earnings rose 18.4 per cent to $122.3 million, boosted in part by seasonal gains. Retail sales rose 5.1 per cent at the company's more than 1,100 locations, to $2.84 billion from $2.70 billion.
 
Weyerhaeuser Selling Kamloops Mill

Weyerhaeuser will sell its Kamloops, BC-based sawmill to International Forest Products (Interfor). In British Columbia, Weyerhaeuser will continue to retain sawmills in Princeton and Okanagan Falls, a hardwood sawmill, and an engineered wood plant in the Lower Mainland area.

RONA Profit Up

Home improvement retailer RONA Inc. is in acquisition mode after its second quarter profit rose 7.7 per cent to $86.2 million from a year-ago $80 million. Sales increased 9.1 per cent. The increase in sales is being attributed to acquisitions made in the last 12 months and additional measures taken at the beginning of the quarter to stimulate sales and earnings growth. CEO Robert Dutton says the current period “is very conducive to consolidation and we have our eye on transactions that will allow us to improve our position and expand our product and service offering to consumers.”
 
Wolseley Makes Acquisitions  

Wolseley, the United Kingdom-based parent of Stock Building Supply and Ferguson, has made acquisitions in North America and Europe. Its Ferguson division acquired Fire Fab, a distributor and fabricator of fire safety and suppression systems. It had revenue of $12.4 million last year. Its Nordic region subsidiary, DT Group, acquired Save Tra Forsaljnings, a builders’ merchant with two branches in Sweden. The company had revenue of $16.5 million last year.

Home Hardware Has Two-sided Receipts

Home Hardware Stores Limited is now using two-sided thermal receipt printing (2ST) at 55 of its stores. This new technology from NCR Corporation allows for customized promotional messages, minimizes environmental impact, and improves operational efficiency. The process allows for simultaneous printing on both sides of a receipt, cutting paper usage by up to 45 per cent. It also improves checkout efficiency by requiring fewer paper roll changes.
 
Remodeling Activity Slows

Remodeling activity in the U.S. may be following the pattern set by slowed housing starts, says the National Association of Home Builders. Its national survey that measures remodelers’ perceptions of market demand for current and future remodeling projects shows activity is up only in the Northeast. The rest of the U.S. is experiencing a slowdown. The same pattern of decline or flat activity is expected for the future.

Black & Decker Earnings Drop

Black & Decker recorded second quarter net earnings of $118 million, down 22.4 per cent from $152.2 million in the same period last year. Sales were flat compared with last year at $1.7 billion. While the power tools and accessories segment decreased two per cent, its Price Pfister faucet business gained market share and grew sales at a double-digit rate.

Nardelli Heads Chrysler

The former CEO at Home Depot is Chrysler's new CEO. Bob Nardelli will also sit on the company's board of directors. Nardelli was chosen for his background in operations, experience expected to help as the company tries to turn around its financial situation. Chrysler was recently purchased by Cerebrus Capital Management, a private equity firm. Nardelli served as Home Depot's CEO starting in 2000 and resigned from his position in January of this year. During his tenure at Home Depot, sales doubled from $45.7 billion in 2000 to $81.5 billion in 2005.

Strong Showing For Building Permits

Construction intentions maintained their sizzling pace this spring, as the value of building permits issued followed a record-breaking month in May with another strong showing in June, says Statistics Canada. In total, municipalities issued $6.9 billion worth of building permits in June, down only 0.4 per cent from May. The figure for June was the second-highest on record, surpassed only by the peak in May. In the residential sector, intentions climbed 7.4 per cent to more than $4.1 billion. This is only the second time residential permits have surpassed the $4 billion mark, the first time having occurred in December 2005.

Weyerhaeuser Profit Down Sharply

Weyerhaeuser Co.’s second quarter profit dropped sharply due hefty charges and weakness in the housing construction markets. Net income fell to $32 million in the three months ended June 30 from $298 million a year ago. Revenue fell to $4.33 billion from $4.87 billion a year ago. The company earned $104 million in the latest quarter, compared with $273 million in the year-earlier period.
 
Trex Earnings Down

Trex’s net earnings for the second quarter were $2.6 million, down 65.3 per cent from $7.5 million a year earlier. Sales were $118.8 million, down 2.3 per cent from sales of $121.6 million in last year's second quarter. The company's sales have suffered from weakness in the home building sector and declining lumber prices. 

NHS Returns To Las Vegas

The 63rd National Hardware Show returns to Las Vegas, NV, May 6 to 8, 2008. The show also features Lawn & Garden World, Homewares, and New Product World, giving home channel retailers of all sizes a preview of the entire home enhancement marketplace from hardlines to small appliances. In 2007, there were more than 700 new companies participating with nearly 28,000 industry professionals attending. For more information, visit www.nationalhardwareshow.com.

Business Groups Take Internal Trade Concerns To Premiers

A coalition of leading Canadian business groups is taking its concerns on internal trade to the upcoming Premiers' meeting in Moncton, NB. The group wants the Council of the Federation to fix the Agreement on Internal Trade's (AIT) dispute resolution procedures to ensure governments fully comply with panel rulings. Based on its experience, the coalition has concluded that the AIT is limited, complex, and inaccessible to businesses and others who have real trade issues. Its worst flaw is the absence of any consequences if governments fail to comply with their obligations and with trade panels' findings in a timely way.

Tembec Sales Decline

Tembec’s consolidated sales for the third quarter ended June 30, 2007, were $783 million, down from $862 million in the comparable period last year. The company generated a net loss of $164 million compared to a net loss of $6 million in the corresponding quarter ended June 24, 2006.
 
Technology Forum Heads To Memphis  

The American Hardware Manufacturers Association’s (AHMA) technology conference will move to Memphis, TN, in 2008. The AHMA Hardlines Technology Forum brings together IT, logistics, merchandising, executive, and finance professionals from the hardware/home improvement industry to discuss leading technology issues affecting the industry including supply chain management, RFID, data sync, bar coding, ASNs, and EDI. It will take place April 20 to 24, 2008. For more information, visit www.ahma.org/htf.

CHHMA Session Features Jones

James Jones, vice-president, marketing, for Castle Building Centres Group Ltd., will be the featured speaker at a CHHMA Breakfast September 11 in Richmond Hill, ON. Jones will speak on the ‘Future of the Independent LBM Owner/Operator: A Castle Perspective.’ For more information, visit www.chhma.ca/1024/index.php.

Consumers Prefer Outdoor Entertaining

Eight out of 10 consumers prefer outdoor entertaining to indoor entertaining, says an NPD survey. The finding bodes well for categories such as gazebos and outdoor fireplaces. Respondents displayed a preference for outdoor entertaining products, with 23 per cent saying they owned a fire pit or outdoor fireplace and 14 per cent saying they plan to purchase one. Additionally, nearly one-third of consumers reported owning or planning to buy a gazebo or canopy, while another 14 per cent either own or plan to buy an outdoor refrigerator.
 
Masco Sales Lower

Masco, parent of Delta Faucet and Behr paint, had lower sales in the second quarter. The company saw sales fall six per cent to $3.1 billion from $3.4 billion last year. North American sales declined 10 per cent while international sales increased 14 per cent. The North American market was hampered by less consumer interest in ‘big ticket’ home improvement items, as well as a less favorable product mix and increased commodity cost.
 
True Value Revenue Decreases

True Value’s revenue of $594.4 million for the quarter ending June 30 was down 0.4 per cent from $597 million for the same period a year ago. For the six months ending June 30, True Value had revenue of $1.08 billion, a decrease of 0.9 per cent from $1.09 billion for the same period in 2006.   

Right To Import Supported

The Retail Council of Canada (RCC) is applauding the Supreme Court of Canada's decision in the Kraft vs Euro Excellence case. The case saw a small Quebec importer battle Kraft Canada over the right to import genuine Toblerone and Côte d' Or chocolate bars directly from Europe. Kraft claimed Canadian copyright law prevented importation of the genuine products other than through their own exclusive distribution channels. RCC urged the court not to allow copyright law to be used in this manner. Retailers were concerned that if Kraft were to prevail, copyright law could become a tool to restrict competitive parallel importation of an enormous variety of genuine consumer goods ranging from cameras to clothing to computers.

Castle ‘Open To Buy’ At NHSC

Vendors not currently supplying Castle Building Centres can preview their products to one of Canada ’s leading retailers at this year’s National Hardware Show Canada (NHSC). Castle Building Centres has agreed to participate in an ‘Open to Buy Day’ October 16 in Toronto, ON. This opportunity is exclusive for 2007 NHSC exhibiting vendors only. In addition, Castle will also hold an opening day reception in New Product World, open to all exhibiting vendors, as part of its program at NHSC which runs October 16 and 17 in Toronto. For more information, visit www.nationalhardwareshowcanada.ca.

Black & Decker Sales Flat  

The Black & Decker Corporation’s net earnings for the second quarter of 2007 were $118 million. Net earnings were $152.2 million for the second quarter of 2006. Sales were $1.7 billion, flat to the second quarter of 2006. Sales in the hardware and home improvement segment decreased three per cent for the quarter. The lockset business, which is significantly tied to residential construction, reported a double-digit rate of sales decline in the U.S.

Kingfisher Sales Growth Slows

Kingfisher Plc's sales growth slowed in the second quarter after record UK rainfall discouraged people from buying barbeques and garden furniture at the B&Q chain. Revenue rose 7.2 per cent in the 10 weeks ended July 14, compared with a 14 per cent gain in the first quarter. The company opened 48 stores outside France and the UK during the period. Kingfisher now has 760 stores in 10 countries.

Newell Rubbermaid Profit Jumps

Newell Rubbermaid Inc.’s second quarter profit jumped 19 per cent. It earned $142.2 million for the three months ending June 30, compared to a profit of $119.5 million for the same period a year earlier. Revenue rose 3.6 per cent to $1.69 billion, compared to $1.63 billion recorded a year earlier.
 

Sears Canada Doubles Earnings

Sears Canada Inc.’s total revenues for the 13-week period ended June 30 were $1.444 billion compared to $1.428 billion for the 13 weeks ended July 1, 2006, an increase of 1.1 per cent. Net earnings for the second quarter were $47.7 million compared to $18.1 million in the same quarter last year. Total revenues for the 26-week period ended June 30 were $2.7 billion compared to $2.7 billion for the same period last year
 

3M Posts Record Sales

3M posted record sales and earnings in the second quarter. Earnings for the second quarter were $917 million, up four per cent from $882 million last year. Sales rose eight per cent to $6.14 billion from $5.68 billion last year. Strongest growth was in the DIY, office supplies, and home care businesses. Sales in the safety and security division rose 20.7 per cent to $799 million.

Building Centres Dominate Sector

Canada's housing boom kept things busy for retailers of building materials in 2006, says a Statistics Canada 'Analysis in Brief' study. In 2006, sales of hardware, lawn, and garden products, including lumber and other building materials, posted the fastest growth rate of all commodity groupings. Sales for this group surged 9.9 per cent to $27.3 billion, representing an average of $836 on a per capita basis. Building and outdoor home suppliers have always dominated in terms of market share in the hardware, lawn and garden products sector. They accounted for more than 70 per cent of the market share during the entire period under study despite competition from other retailers. Between 1998 and 2006, the market share of building and outdoor home suppliers rose from 72.3 per cent to 74.5 per cent. However, the 2006 market share remained virtually unchanged, dropping a tenth of a percentage point from 2005.

IKEA Charging For Bags

Canadians take home an estimated 55 million plastic carry out bags a week and IKEA Canada is stepping up to the plate to help reduce plastic bag use in Canada. To reduce plastic bag consumption at its stores by 50 per cent in the next year, starting October 22, it will begin charging five cents for plastic bags with all proceeds from the sale of plastic bags donated to Tree Canada who will use the funds to plant trees throughout Canada to help offset CO(2) (carbon dioxide) emissions. To help alter customer behaviour and endorse environmentally responsible habits, IKEA will continue to sell its reusable 'Blue Bag' for $1. IKEA Canada currently goes through 25 million plastic bags each year.
 

RONA Opens Leamington Store

RONA Inc. has opened its store in Leamington, ON. The first of its kind in Ontario, the RONA Leamington store joins the national network of eight stores that offer the latest concept in RONA proximity stores specializing in home construction and renovation. The store combines building materials with finishing products such as paint, lighting, kitchen and bathroom cabinetry, moldings, doors and windows, and more. Other specialty services include kitchen and bath design, flooring, and computer paint chip matching, as well as lumber cutting and delivery.


L-P Takes Loss

Louisiana-Pacific (LP) had a second quarter net loss of $23 million, compared with net earnings of $55 million in the second quarter of 2006. Net sales for the quarter were $461.2 million, down 28 per cent from $636.6 million in the same period last year. It says the results reflect the continuing weakness in the housing sector.

Largest Sales Increase In Decade

Retail sales advanced in almost all sectors in May, marking the largest monthly sales increase in almost a decade, says Statistics Canada. Total retail sales rose 2.8 per cent to an estimated $35 billion in May. Gains in seven of eight retail sectors boosted sales, making May the fourth monthly increase in a row for Canadian retailers. Sales in the building and outdoor home supplies stores sector soared six per cent, the largest increase since August 2003.
 

Atlantic Experience Shows Benefits Of Harmonized Sales Tax

Evidence from provinces that switched to a Harmonized Sales Tax (HST) suggests that other provinces should also harmonize their sales taxes with the federal goods and services tax (GST), says a C.D. Howe Institute study. ‘Lessons in Harmony : What Experience in the Atlantic Provinces Shows About the Benefits of a Harmonized Sales Tax’ says this change would lessen the tax burden on business investment – spurring increased investment and productivity in the economy – without leading to an increase in consumer prices.

Stanley Earnings Rise

Stanley Works’ second quarter earnings rose 14 per cent, helped by revenue from its industrial segment. Net income rose to $85.3 million from $74.7 million during the same period last year. Revenue rose 10 per cent to $1.12 billion, from $1.02 billion last year. Excluding sales of its recently acquired HSM Electronic Protection Services Inc., sales grew five per cent, including a two per cent benefit from a weaker dollar. 


American Standard Sells Bath And Kitchen Business  

American Standard is selling its bath and kitchen business to Bain Capital Partners, a global private investment firm. Upon completion of the sale, Bain Capital will acquire all of American Standard's bath and kitchen business, which had 2006 sales of $2.4 billion. The business manufactures and markets products under brand names including American Standard, Ideal Standard, Armitage Shanks, Porcher, and Jado.

Cherry To Deliver Rayovac Message

Don Cherry, one of Canada's top 10 most influential people of all time and the most-watched personality on Canadian television, has signed a two-year partnership with Rayovac Batteries to be the personality behind the Canadian re-launch of the brand. Cherry will help Rayovac tell its message to consumers, that the brand ‘Lasts as Long’ as other leading brands. Cherry will be featured in all aspects of the Rayovac re-launch, including packaging, displays, promotions, online, advertising, and other communications geared towards educating consumers on the value and endurance of the brand. Rayovac will begin using Cherry immediately.
 

Home Show Eco-conscious

The 22nd International Home Show will offer homeowners convenient and constructive ways to create an eco-conscious lifestyle. This year, experts and exhibitors aim to have homeowners thinking small, eating locally, and consuming more conscientiously.  Running on Thanksgiving weekend, October 5 to 8 in Toronto, ON, the International Home Show presents hundreds of green products, services, and ideas to revamp the home, proving that sustainability and reducing environmental impact won’t break the bank. The show will host more than 400 exhibitors with the newest essentials for every room of the house.  For more information, visit http://www.internationalhomeshow.ca.

Composite Index Rises

The composite index rose 0.2 per cent in June. Only five of the 10 components were up, the fewest since last autumn's slowdown, while two were unchanged and three decreased. Manufacturing accounted for most of the slack, while consumer spending remained the bulwark of growth. Consumer demand for furniture and appliances accelerated to a 0.7 per cent increase, its largest gain so far in 2007.

TIM-BR MART Opens Six Stores

TIM-BR MART has opened six stores across Canada since mid-April. It started April 11 with the Standard Building Supplies grand opening in North Vancouver, BC. The store features an enclosed drive-thru warehouse operation. May 18 saw the opening of Washago TIM-BR MART, in Washago, ON. This store features a designated meeting room where contractors can plan projects with their clients. Westport TIM-BR MART, in Westport, ON, opened May 25. It has updated its look to fully incorporate the TIM-BR MART brand inside and out. On the same weekend, Woodland TIM-BR MART stores in Grand Prairie, AB, and Fairview, AB, celebrated grand re-openings. The Woodland stores are the flagship sites of TIM-BR MART’s new format store design. Early in June, King St. TIM-BR MART, in Shelburne, NS, opened. The location features décor and window treatment departments.

Canadian Tire Most Shopped

Canadian Tire is the most shopped Canadian retailer overall in terms of total numbers, followed by Shoppers Drug, says Kubas Consultants’ ‘Major Market Retail Report.’ In general, there was little change in who are the top non-food retailers in Canada in 2007 compared to last year. London Drugs has the highest drawing power, the ability to bring in customers from the trade areas it serves, and Chapters is the highest rated retailer in terms of overall consumer performance perceptions.

Kingfisher Outlines Russian Expansion

Kingfisher plans to open 50 stores under the Castorama banner within 10 years as it plans to expand in Russia, one of the fastest-growing markets for home improvement and renovation. The Russian DIY and home furnishing market is growing by 12 per cent a year. The company currently has four stores in Russia, with the latest opening in Moscow last month. 

Owens Corning To Sell Siding Business

Owens Corning has agreed to sell its siding business to French building materials company Saint-Gobain. The sale includes its Norandex/Reynolds distribution business with 153 distribution centres in 38 U.S. states. Included in the sale are three vinyl siding manufacturing facilities in North America.

TruServ Plans Fall Market

TruServ Canada Inc. will hold its Fall National Merchandise & Planning Market October 20 to 22 in Winnipeg, MB. It features the launch of a new Rewards Program. More than 700 independent retailers have the opportunity to attend this market to plan their business for the next six months and to co-ordinate their spring and summer product purchase. The market will close a day earlier than it has traditionally, “a result of feedback from stores who are able to prepare before coming to Winnipeg through advance bookings or on-line,” says Terry Derraugh, vice-president of merchandising. For more information, visit www.truserv.ca. The dates for the Spring 2008 Market are April 20 to 22 in Winnipeg.

Spending At Self-Service Kiosks To Reach $525 Billion
 
North American consumers are on pace to spend more than $525 billion at self-checkout lanes, ticketing kiosks, and other self-service machines in 2007, an increase from $438 billion in 2006, says research by IHL Consulting Group. The revenue generated by self-service transactions should continue this pace of growth in the coming years, rising by about 20 per cent this year and another 18 per cent in 2008. Demand for self-checkout systems and other kiosks should push the dollar value of transactions to nearly $1.3 trillion by 2011.
 

Retailer Sales Up Moderately

Retailers sold $87.4 billion of goods and services in retail stores between January and March 2007, up 6.3 per cent from the same three months in 2006, says Statistics Canada. Spending in the housing market moderated slightly, while sales of hardware and lawn and garden products increased 7.8 per cent from a year earlier, to a total of $4.9 billion. Sales of lumber and other building materials rose seven per cent, the slowest pace since the first quarter of 2005. There was a 7.2 per cent gain in sales of furniture and home furnishing products, which increased to $8.2 billion. Sales of indoor furniture, which represents 24 per cent of this commodity grouping, rose 6.8 per cent.
 

TORBSA Adds Member

TORBSA Limited has added a new member. It is Master Building Materials of
Woodbridge, ON.

Retail Healthy, But There Are Imbalances

A strong economy and high consumer confidence in recent years have made shoppers less interested in discount retail, says Kubas Consultants’ ‘Major Market Retail Report.’ However, this could change quickly if the economy weakens. Its current forecast is $411 billion for total Canadian retail sales in 2007, up 5.1 per cent from last year. About $200 billion of this will be spent in Canada's six largest markets (Vancouver, Edmonton, Calgary, Toronto, Ottawa-Gatineau, and Montreal). The Western provinces are expected to show strong gains, while retail sales growth in Ontario and Quebec is projected to be below average.


Directors Elected

Mike Mayhew, of Select Acoustic Supply Ltd. (Concord, ON) has been elected as the president of TORBSA Limited for the year 2007. The 2007 board also includes Jim Holmes, of Builders’ Supply Limited (Brampton, ON) – vice-president; Martin Lieberman, of Blair Building Materials Inc. (Maple, ON) – past-president; Dave Hewson, of Hewson Brothers Supply Limited (Brantford, ON) – secretary; Doug Portiss, of Sarnia Drywall Supply Ltd. (Sarnia, ON) – vice-president operations; and Blake Oldershaw, of Oldershaw Building Supply Co. Ltd. (Chatham, ON) – treasurer.

Interest In Wal-Mart Softens

Kubas Consultants’ ‘Major Market Retail Report’ for 2007 says that after years of steady gains, consumer interest in Wal-Mart is softening. In fact, the proportion of consumers who say they are ‘very’ or ‘somewhat’ interested in shopping at Wal-Mart peaked in 2003 and has declined slowly, but steadily since. The study is based on consumer research of non-food shopping habits and store preferences in Canada's six largest markets (Vancouver, Edmonton, Calgary, Toronto, Ottawa-Gatineau, and Montreal). The six account for almost half of retail sales in Canada.
 
 
Consumers Not Satisfied With Installers

Home improvement retailers may need to vamp up their installation services because consumers are less satisfied with contractors arranged through retailers than with those they’ve used before or who were referred to them. A survey by Consumer Specialists says consumers who used a contractor with whom they had previous personal experience were the most satisfied – significantly besting all other methods of finding a contractor.  Referrals from family, friends, and neighbours placed second in satisfaction.

La Coop Fédérée Joining Spancan

La Coop Fédérée will be joining Spancan, effective January 1, 2008. La Coop Fédérée, with its head office in Montreal, QC, has estimated hardware/home improvement sales of $270 million and a total of 158 building supply and hardware stores. Its 210,000 square foot distribution centre in Trois-Rivières, QC, carries 23,000 SKUs. 
 

Groupe Bocenor Changes Name

Groupe Bocenor Inc., manufacturer of Bonneville windows and doors, has changed its name to GBO Inc. following the launch of new products and product improvements earlier this year. “Within the last two years, we have literally rebuilt the company on more solid bases including its balance sheet, management team, business model, operating practices, marketing strategies, and even its corporate culture,” says Dennis Wood, interim president and CEO. “This name change is the logical follow-up to these initiatives.”  
 

Households Slowly Going Green

Canadian households have responded to a number of environmental concerns, but still engage in many practices that can have a negative impact on the environment, says the Households and the Environment Survey by Statistics Canada. Close to six in 10 households now use compact fluorescent bulbs and more than four in 10 have a programmable thermostat, up considerably in recent years. More households composted and more also had water-saving shower heads and toilets. However, the use of chemical pesticides in 2006 was down only slightly from 1994 levels. The sole exception was Quebec, where the share of households applying lawn and garden pesticides plunged by one-half over this period.


World Home Improvement Products Market To Grow

The world home improvement products market is projected to grow at a healthy pace to $828 billion by 2010, says Global Industry Analysts, Inc. The U.S. represents the largest market for home improvement products market, accounting for about 34 per cent of the total global demand in 2006. Europe represents the fastest and the second largest market. The lumber and building materials market, the largest segment in the world home improvement products market, is projected to reach $276 billion by 2010. The finishing materials market, the fastest growing, is forecast to exceed $250 billion by 2010.

Rising Dollar Puts Economy At Risk

The Forest Products Association of Canada (FPAC) has called on the Bank of Canada to more fully consider broad economic and regional factors, including the rapid rise of the Canadian dollar, in its decision-making. In reaction to the bank’s decision to increase the interest rate, Avrim Lazar, president and CEO of FPAC, says the governments in Canada have been slow to adjust economic policies to take into account the rising dollar and increased global competition. “It is industry’s job to adjust so that we can compete with low cost countries, but government must move much more quickly to create world class competitiveness conditions. Taxes that penalize investment, out-of-date merger policies, and uncompetitive transportation, fibre, and energy policies which were simply disadvantageous when the dollar was lower, have become damaging to Canadian jobs with the high dollar.”
 

RONA Opens NB Store

RONA Inc. has opened a store in Edmundston, NB. The store, owned by RONA and Paul and Ron Cormier, is the 21st RONA point-of-sale in Atlantic Canada. The store is its first 35,000-square foot store. It offers a 50,000 square-foot outdoor lumberyard and a 12,000 square-foot outdoor garden centre.

Home Depot Cuts Earnings Outlook

Citing weakness in the U.S. housing market, Home Depot has cut its earnings outlook for 2007. It expects 2007 total retail sales to decline by one per cent to two per cent and same-store sales to fall by mid-single digits. As a result, it anticipates that 2007 earnings per share will fall 15 per cent to 18 per cent from a year earlier. Previously, Home Depot had forecast total sales growth of zero per cent to two per cent.

Alliance Creates Industry Powerhouse

The International Centre and the Canadian Gift and Tableware Association (CGTA) has formed a strategic alliance that will have far reaching effects on Canada’s furniture, gift and accessory industry. For the first time since Canada’s Furniture Mart opened in 1972 the mart will be accepting tenants in the gift and accessory categories who are members of the CGTA. The International Centre will be offering CGTA members the exclusive opportunity to lease permanent showroom space in Canada’s Furniture Mart. CGTA members who take advantage of this opportunity will automatically benefit from the exposure and sales opportunities available at CGTA’s Spring and Summer Gift Shows, the largest gift shows in Canada and the Canadian Home Furnishings Market, Canada’s national furniture show.
 

Building Permit Activity Surges In West

Construction sites in Western Canada will be humming this summer as the value of building permits surged to its highest monthly level ever in May, says Statistics Canada. Municipalities issued a total of $6.8 billion worth of permits, up 21.4 per cent from April and 8.5 per cent higher than the previous high set in October 2006. The Calgary and Vancouver metropolitan areas were responsible for nearly 75 per cent of the overall gain (in dollars) in May. Excluding these two areas, the total value of permits would have increased by only seven per cent instead of 21.4 per cent.
 

Richelieu Sales Increase

Sales at Richelieu Hardware increased by 13.4 per cent to $116.3 million over the second quarter of the previous year, bringing sales for the first six months ended May 31 to $210.8 million. The acquisitions of past 12 months accounted for most of this improvement, along with the contribution of internal growth, sustained by the major investments made in Richelieu's sales and marketing programs over the past two years. In the United States, sales almost doubled to reach $22.3 million for the second quarter and $40.9 million for the first six months of the financial year, accounting for approximately 20 per cent of total revenues.

RONA Opens Home Renovation And Gardening Centre

RONA Inc. has opened a big box store in Pierrefonds, QC. It's the 367th RONA store in the province. It is the first store that uses only the name RONA with no additional designation like Home & Garden or L'Entrepot. To gradually standardize the names of its stores, the company is planning to use this approach – which is already being implemented for its proximity stores – in naming new stores as they are built and renaming existing stores as they are renovated.


Castle Adds Members

Castle Building Centres Group Ltd. has signed two new members. They are Conne River Building Supplies, Conne River, NL; and Hay River Building Supplies, Hay River, NWT.

TIM-BR-MARTS Exclusive Distributor Of Supress

TIM-BR MARTS Ltd. is the exclusive Canadian distributor of Supress Sound-Engineered Drywall. Used to provide exceptional sound absorption in both commercial and residential applications, the drywall is now available at participating TIM-BR MART commercial locations across Canada. With this agreement, these dealers will have the products to service the increasing demand for acoustic performance from the building industry.
 

Millar Western Acquires Mostowich

Millar Western Forest Products is acquiring Mostowich Lumber, a lumber operation based in Fox Creek, AB. The lumber mill has a capacity of 50 million board feet per year. Millar Western operates lumber facilities in Whitecourt and Boyle, as well as a pulp mill in Whitecourt, all in Alberta.
 

Organizations Partner

The Presidents Council, devoted to the development of the home improvement/building materials industry, has partnered with Koelnmesse Inc. to promote its international DIY trade fairs. The two will promote the upcoming fairs – the China International Hardware Show in Shangai, China, October 23 – 25, 2007; and the International Hardware Fair in Cologne, Germany, March 9 – 12, 2008. As well, they will develop additional relationship building and educational events in conjunction with these events.

Average Renovation $11,000

Approximately 1.5 million Canadian households completed renovations in 2006, costing an average of more than $11,000, says Canada Mortgage and Housing Corporation’s ‘Renovation and Home Purchase Survey.’ As well, 46 per cent of homeowners intend to spend $1,000 or more on renovations this year. Close to half (47 per cent) of households reported that the cost of renovations was in line with what they had budgeted. More than a third of households went over their planned budget for the renovation. Twenty-four per cent of households that undertook a renovation project were do-it-yourselfers who hired a contractor for a portion of the work. Slightly more households contracted out the renovation work (40 per cent) as opposed to doing the work themselves (34 per cent).


NPD Group Providing Consumer Data

Wal-Mart Stores will use NPD Group to provide Wal-Mart and Sam’s Club units with a variety of consumer data. Research will include customized reports for Wal-Mart in the areas of home improvement, lawn and garden, small appliances, home textiles, consumer technology, and fashion. It will measure areas such as market share, price points, consumer demographics, and channel trends.

Weyerhaeuser Permanently Closes Claresholm Plant

Weyerhaeuser Company will permanently close its iLevel Trus Joist TJI joists plant in Claresholm, AB. The decline in housing starts in the North American market prompted the decision.
 

Demographics, Lifestyle To Influence Market

Demographics and lifestyle will be the major factors to influence the U.S. home improvement market, says Fred Miller, managing director of the Home Improvement Research Institute (HIRI). Speaking at HIRI’s ‘Future of Home Improvement’ webinar, Miller said single households, the growth of Hispanic population, and aging baby boomers are the three main demographic drivers and consumer empowerment, affluent attitude, and social connection are the main lifestyle drivers. HIRI forecasts there will be a small gain in home improvement product sales for 2007, but that sales will recover in 2008. Total market growth between 2008 and 2011 is projected to average 5.4 per cent in current prices. 

EMCO Dropped From Name

EMCO Building Products Corp., a manufacturer and distributor of quality home building and home renovation products, has changed its name to Building Products of Canada Corp. This name change represents a return to roots, and evokes a rich history. The company was first incorporated as Building Products Limited and, in 1964, became Building Products of Canada Limited. The company then joined the EMCO organization and underwent a subsequent renaming in 1987.
 

Wal-Mart Looks At Packaging

Wal-Mart Canada Corp. will partly base what products to sell on the efforts made by suppliers to improve their packaging. Companies will have to fill out a complex survey about the ecological impact and recycled content of their packaging. Those that have not worked to make it less wasteful will have a harder time getting shelf space. Wal-Mart has already made changes to some of its packaging that has cut down on waste, shipping costs, and shelf space.  

CGC Partners With Habitat For Humanity Canada

CGC is partnering with Habitat for Humanity Canada as the exclusive supplier of wallboard and related products for the building of up to 200 homes in Canada in 2007 – making this the single largest product donation for new builds in Canadian Habitat history. Since 1996, CGC has supported this organization’s mission to eliminate substandard and poverty housing by building homes in partnership with low-income families.

Leading Index Steady

The growth of the composite leading index was steady at 0.5 per cent in May with eight of the 10 components rising, the same as in April. The components related to household spending improved markedly, while export demand for manufacturers remained the weakest sector. 

RONA Recycles Paint

RONA Inc. is extending its paint recycling recovery network in Quebec to its 15 big box Réno-Dépôt stores. With some 200 collection points already in operation throughout Quebec, the RONA network recovered more than 800,000 containers of leftover paint in 2006. On its own, RONA now collects one-third of all the old paint recovered in Quebec.

Home Hardware Holds First Health And Wellness Fair

Home Hardware Stores Limited has held its first health and wellness fair to promote healthy living among its 1,200 current and retired staff members and their immediate families. ‘Health is Close to Home’ was held at the company’s distribution centre in St. Jacobs, ON, and featured more than 20 exhibitors. Exhibitors included the Heart and Stroke Foundation which provided insight on the effects of stress and the benefits of healthy eating and GoodLife Fitness which discussed the importance of incorporating exercise into everyday living.

Home Depot Supply Sold

The Home Depot has sold its wholesale distribution business. Home Depot Supply was purchased by three private equity firms – Bain Capital Partners, The Carlyle Group, and Clayton, Dubilier & Rice. Home Depot Supply – which serves contractors, homebuilders and other business customers – was sold so Home Depot could focus on its more than 2,000 retail stores.

 

Home Hardware Holds Charity Auction

Daniel P. Logel (centre), commodity tax manager and market chairman with Home Hardware Stores Limited, was the golf chairman of Home's Annual Golf Tournament & Charity Auction held at four golf courses in the Waterloo region. He is flanked by Tammie Piel (left), dealer event co-ordinator for Home, and Ken Silvester, broadcaster for waterloo radio station CKWR. They are holding a check from Home Hardware for the Kids Ability Foundation in the amount of $20,000. 

Canfor Curtails Operations

Canfor is curtailing operations at several of its sawmills, its PolarBoard oriented strand board (OSB) mill, and Tackama plywood plant, citing poor market conditions. The curtailments represent about 66.2 million board feet of lumber production, 14 million square feet of OSB, and 8.5 million square feet of plywood.

Robichaud Environmental Efforts Recognized

Marc Robichaud, of U.J. Robichaud TIM-BR MART in Meteghan Centre, NS, has been honoured by the Dalhousie Eco-Efficiency Centre as a Nova Scotia business leader for his efforts to improve environmental and economic performance and reduce the store’s ecological footprint. The store has made a number of operational changes to improve energy efficiency; most notably changing 100 incandescent light bulbs to compact fluorescent bulbs (CFL), a move that resulted in $1,400 per year savings on energy costs. Other modifications included adding wall insulation, installing skylights for natural light in dimly lit areas, and using fuel additives.
 

National Nail Finds Chinese Partner

National Nail has signed a partnership agreement with Shandong Oriental Cherry Hardware Group, one of its primary suppliers. The two firms will enter into several joint ventures, including the sourcing of raw materials and the opening of a new distribution centre. Oriental Cherry is one of China’s largest manufacturers of nails and hardware. In addition to making products that sell under the National Nail brand, Oriental Cherry supplies other companies in the United States and Canada. Almost half of its products are exported, with the remainder sold in China.

RCC Celebrates Excellence In Retailing

Mario Pilozzi challenges all Canadian retailers to be the forerunners of energy sustainability. Giving his acceptance speech for the Retail Council of Canada's (RCC) Distinguished Canadian Retailer of the Year award at an awards reception at STORE 2007, the president and CEO of Wal-Mart Canada Corp. says, as the frontline to Canadian consumers, retailers can – and will – make a difference. Other RCC award recipients include Walter Hachborn, founder of Home Hardware Stores Limited – Lifetime Achievement Award; The Home Depot Canada – Retail Store Design, Large-size; Sears Canada Inc. – Online Retailing; and Easyhome Ltd. – Retail Marketing/Advertising, Mid-size.
 

All Comes Together

The home enhancement marketplace generates more than $400 billion annually in the U.S. and it all came together under one roof at the National Hardware Show, May 8 to 10 in Orlando, FL. The 62nd annual NHS featured hundreds of thousands of new products from more than 3,400 manufacturers in nearly 850,000 square feet of floor space, including the co-located Gourmet Housewares Show and Global HomeTextiles. There were more than 700 new companies participating in this year’s event with approximately 35,000 industry professionals estimated to attend. The NHS will return to Las Vegas, NV, May 6 to 8, 2008. For more information, visit www.nationalhardwareshow.com.

Same-store Sales Rise

Wal-Mart’s same-store sales rose 1.1 per cent in May, primarily driven by sales at Sam’s Club stores. Same-store sales rose a full 5.4 per cent at Sam’s Club stores, while at Wal-Mart stores, same-store sales edged up slightly at 0.3 per cent. Overall sales for the month grew 7.7 per cent to $28.26 billion from $26.23 billion last year. Sales at Wal-Mart stores were driven by groceries rather than merchandise, with home channel sales and apparel sales showing weakness.

Mutual Adds Member        

Canac-Marquis Grenier Ltee. is the newest member of Mutual Hardware. A retail distributor of hardware products in Quebec, it does more than $200 million in annual sales. It has 15 stores with a 16th currently under construction in Sherbrooke. In addition, it recently opened a 240,000 square foot full line distribution centre.
 

Building Permit Value Declines

The total value of building permits declined in April as construction intentions fell in both the residential and non-residential sectors as well as in nine provinces, says Statistics Canada. Contractors took out permits worth $5.6 billion, down 8.4 per cent from March.

However, the value of permits in the multi-family component surged in April, as the number of units approved by municipalities reached its highest level in 16 months. Contractors took out multi-family permits worth $1.4 billion, up 4.8 per cent from March, their highest value in five months. 

Lowe's Canada Developing Customer Experience  

Lowe's Canada has spent the last two years adapting and adopting processes and developing business practices, says Doug Robinson, president. Speaking at STORE 2007, Robinson says the retailer has been doing a lot of research to understand the experience the Canadian customer wants and it is preparing to deliver that experience. This includes having the right product selection, well-planned product adjacencies, passionate staff, and community programs. Lowe's will have 'help buttons' in its stores in strategic locations so customers can get help immediately without having to search for an associate. In turn, the company can track the use of the buttons to better staff its departments.

Construction Investment Increases

Investment in residential construction reached $18.3 billion in the first quarter of 2007, up 6.1 per cent from the same quarter in 2006, says Statistics Canada. Whereas new housing remained strong and posted some gains, the increase in investment in renovations made the largest contribution to this growth. Renovation spending reached $7.8 billion, an increase of 10.2 per cent over the first quarter of 2006. This represented 42.5 per cent of the total investment on residential construction.
 

Housing Market Cooling

Short-term cyclical factors are consistent with a gradual cooling off in Canada's housing market over the next several years, says Scotia Economics’ Real Estate Trends. At the same time, long-term fundamentals, including slower population growth, are expected to dampen the demand for housing. The expected moderation in underlying housing demand comes at a time when affordability is at a cycle low, supply conditions are becoming better balanced, and pent-up demand has largely been satisfied, potentially reinforcing the industry's more subdued prospects.
 

Retail Council Launches eTill

The Retail Council of Canada (RCC) and a group of technology, financial, and software partners have launched eTill – a comprehensive point-of-sale (POS) and operations system designed to help Canada’s small, independent retailers compete in today’s complex marketplace. The system contains products and services created specifically for the small retailer to manage their core business operations. While it is bundled with core products and services, the system can be customized and is designed to be scalable as an independent retailer’s needs change.
 

Weyerhaeuser Completes Sale

Weyerhaeuser Company has completed the sale and transfer of its Canadian building materials distribution assets to Platinum Equity of Los Angeles, CA. The sale includes all of its distribution centres in Canada – Brampton, ON; Calgary, AB; Dartmouth, NS; Edmonton, AB; Kelowna, BC; Montreal, QC; Ottawa, ON; Quebec City, QC; Regina, SK; Saskatoon, SK; Sudbury, ON; Timmins, ON; Winnipeg, MB; St. John's, NL; Sussex, NB; and Langley, BC. Weyerhaeuser will maintain a significant presence in Canada producing and distributing softwood and hardwood lumber, engineered wood, oriented strand board, plywood, and pulp-across the country.

Wal-Mart Trims Growth

Wal-Mart, under pressure by investors to improve its sales, is trimming its store growth as it balances its traditional focus on low prices. Wal-Mart says its new internal mantra is to help customers live better by saving money. It will scale back the number of planned U.S. supercentre store openings this year by more than 25 per cent. It will open between 190 and 200 new supercentres in the U.S. during its current 2008 fiscal year, with an average of 170 supercentres each year for the coming three years.
 

ACE Scores Highest

Ace Hardware, Menards, and Lowe’s finished one, two, three in satisfaction in J.D. Power and Associates’ 2007 satisfaction survey on home improvement retailers. Ace performed best in the areas of sales staff, store facility, and checkout. Menards earned higher ratings for price competitiveness and sales/promotions. Lowe’s scored well in the merchandise category.

STORE Features Retail Leaders

Robert Willett, CEO of Best Buy International; and John Stanton, president and founder of Running Room Canada Inc.; will head a line-up of presenters at STORE 2007, Canada's annual retail conference. It takes place June 4 and 5 in Toronto, ON. Sessions offered include Mark Foote, president and chief merchandising officer, and Dalton Philips, COO, of Loblaw Companies Ltd.; speaking on the customer experience and Jim Balsillie, co-CEO of Research In Motion, who will present a ‘A True Homegrown Success Story.’ For more information, visit www.storeconference.ca. 

CIL Offers Large Colour Chips

Shaun E. Noble, brand manager for CIL Paints, shows the company's newest display with large colour chips at Home Depot Canada's fall new product showcase. The display offers 11-inch by 17-inch colour chips in 60 colours, divided into three distinctive collections – designer, historical, and trends. The unit is portable and the chips make it easier to test colours in different areas of a room.
 

Masonite Expected To Close Facilities

Due to its scaled back relationship with Home Depot and a weak housing market, Masonite International Inc. expects to close four facilities including its Mississauga, ON-based door producer. The company faces a $300 million loss in annualized sales.
 

Kingfisher Sales Increase

Group sales were up 14.8 per cent and retail profit rose 29.9 per cent as Kingfisher plc benefited from favourable spring weather across Europe for its first quarter. B&Q UK sales rose 11.9 per cent as a result of strong sales of outdoor products and kitchens. French sales increased 11 per cent with outdoor and decorative products performing well. For the rest of Europe, sales were up 37 per cent and sales in Asia increased 9.2 per cent.

Verschuren Top Communicator

The Toronto Chapter of the International Association of Business Communicators  has presented Annette Verschuren, division president of The Home Depot’s Canadian operations, the 2007 CNW Group Communicator of the Year award. The annual award is given to a leader in the Greater Toronto Area who demonstrates effective leadership communications. Verschuren was selected for the award because of her understanding of the importance of effective communications. 
 

Alberta Props Up Canadian Retail Sales

While total location-based retail was up 6.7 per cent nationally in the first quarter, Alberta’s 12 per cent growth propped up the rest of the country, says Kubas Consultants’ Retail Sales Outlook. Excluding Alberta, the overall gain was 4.7 per cent. Ontario was up 3.9 per cent and Quebec four per cent. They account for 57 per cent of total Canadian retail sales. Based on some cooling in Alberta combined with no significant rebound in Ontario and Quebec, the report predicts a 5.1 per cent increase for the year, an outlook it calls “very precarious.”
 

Retailers To Spend More Than $120 Billion On IT

Retailers are heavily investing in IT and communications technologies worldwide, says Retail WorldView, an IT Sizing service offered by IHL Consulting Group. It says they will spend more than $120 billion this year. North America represents about 45 per cent of the overall total in technology spend in retail, with Europe/Middle East/Africa representing another 28 per cent of the market. While the Asia/Pacific market represents only 15 per cent of the worldwide IT spend in retail, the region's collective retail IT spend is increasing at a rate of more than 20 per cent annually.

Markham Development Underway

Breaking ground in downtown Markham on North America's largest environmentally sustainable mixed-use LEED (Leadership in Energy and Environmental Design) project are Joseph Virgilio, Markham councillor (left); Frank Scarpitti, mayor of Markham; Rudolph Bratty, chairman and president, The Remington Group; David Caplan, minister of public infrastructure renewal; Michael Chan, minister of revenue and Markham MPP; and Luis Rodrigues, vice-president, energy solutions, Honeywell Canada. Downtown Markham is a 20-year project with a long-term vision of promoting sustainability, encouraging car-free, pedestrian-friendly urban living.
 

Lowe's Confident About Future

Lowe's Companies, Inc. remains confident about the future in spite of challenges impacting the home improvement industry. Robert A. Niblock, chairman and CEO, told shareholders the "long-term demographic trends are favorable. Plus, increasing real disposable income and a solid employment market provide near-term support. These are favorable signs that consumers can and will continue to spend on needed repairs and maintenance of their homes."


Sales Of New Homes Rise

Sales in the U.S. of new single family homes increased 16.2 per cent in April compared with March, an unexpected upturn says the National Association of Home Builders (NAHB). New home sales, as reported by the U.S. Commerce Department, increased to a seasonally adjusted annual rate of 981,000 units. April sales still were down 10.6 per cent when compared with last year’s sales pace. However, existing home sales fell 2.6 per cent to 5.99 million units in April from 6.15 million in March. This number also represents a 10.7 per cent decrease from the 6.71 million unit pace in April 2006.

Canadian Tire Participates In Chip Card Pilot

Canadian Tire will participate in an industry-wide pilot program to test market-readiness for the introduction of chip cards in Canada by 2010. The pilot will be launched in March of 2008 at the five Canadian Tire stores in the Kitchener-Waterloo area, leading the way for all 468 Canadian Tire stores across Canada to accept chip cards later in the year. The pilot will test the cards, as well as the chip-reading terminals (readers) and the network required for processing chip card transactions.
 

Canfor Closing Sawmill

Canfor will close a sawmill in Mackenzie, BC, as part of a cost management program currently underway at the company. The closure is expected to take effect in mid-August. The Vancouver-based forest products company has been taking downtime at the Mackenzie mill since March 19. The sawmill has a capacity of 500 million board feet.
 

Leading Indicator Rises

The leading indicator rose 0.4 per cent in April, matching its increase in March as well as its average gain in 2006, says Statistics Canada. Household spending slowed from its recent torrid pace, while manufacturing continued to recover from a prolonged slump. For the second straight month, none of the three manufacturing components fell. Housing levelled off, largely because housing starts returned to more normal levels after receiving a boost from the unseasonably warm start to the year.

Retail Sales Up 1.9 Per Cent

Retail sales surged in March, resulting in a strong first quarter, says Statistics Canada. March's gains were widespread with seven of eight retail sectors posting sales increases. After two months of little change in sales growth, total retail sales rose 1.9 per cent in March to an estimated $34 billion. The latest monthly increase helped retail sales in the first quarter of 2007 rise by two per cent, marking a return to strong quarterly growth after a lacklustre fourth quarter of 2006.
 

Housing Starts To Ease

Housing starts will ease this year to 213,425 units after reaching 227,395 units in 2006, says Canada Mortgage and Housing Corporation’s second quarter Housing Market Outlook. Residential construction will continue to decline in 2008 to 200,175 units. However, this means housing starts will have exceeded 200,000 units for seven consecutive years. The lower demand for homeownership will be mainly due to the rise in mortgage carrying costs and the erosion of the pent-up demand that built up during the 1990s.

Lowe's Profit Falls

Profit at Lowe's Cos. fell 12.1 per cent in the first quarter. The company says mixed weather and a continued housing slump hurt sales. Lowe's had net income of $739 million for the three months ended May 4, down from $841 million a year earlier. Revenue rose to $12.2 billion from $11.9 billion a year earlier.

Home Depot Announces Results

The Home Depot had first quarter net earnings of $1 billion, compared with $1.5 billion in the same period in fiscal 2006. Sales for the first quarter totaled $21.6 billion, a 0.6 per cent increase from the first quarter of fiscal 2006. Total sales in the retail segment declined 4.3 per cent to $18.5 billion.
 

Pilozzi Retailer Of Year

Mario Pilozzi, president and CEO of Wal-Mart Canada, is the Retail Council of Canada’s 2007 Distinguished Canadian Retailer of the Year. Pilozzi's career spans 45 years, starting at Woolworth Canada. He joined Wal-Mart Canada in 1994 as vice-president of hardline merchandise and in January 2002 he was appointed president and CEO. The award will be presented June 4 at STORE 2007 - Canada's Retail Conference in Toronto, ON.
 

Tembec Closes Kirkland Lake Plant

Tembec is shutting down its Kirkland Lake Engineered Wood Products facility for at least two months. The closing, effective May 21, will be reviewed in early July. The company pointed to challenging market conditions for lumber products as reason for the downtime. 

Wal-Mart Income Up

Wal-Mart Stores had net income from continuing operations of $2.8 billion for the first quarter ended April 30, up 8.1 per cent from $2.6 billion in the same period last year. Net sales for the first quarter were $85.4 billion, an increase of 8.3 per cent over last year’s first quarter. The company’s international division grew fastest with an 18.5 per cent sales increase to $19.3 billion.

Castle Adds Members

Castle Building Centres Group Ltd. has added three new members over the past 30 days. They are Contractor Direct Building Materials Ltd., Plamondon, AB; Quincaillerie Ray Hardware Inc., St. Leonard, NB; and St. Laurent Building Centre Ltd., St. Laurent, MB.
 

Ace Revenues Increase

Ace Hardware had total revenues of $902.7 million for the first quarter ended March 31, representing a 2.4 per cent increase over revenues of $881.6 million for the same period last year. Net earnings for the period were $13.8 million, compared with $14.7 million in 2006. The increase came from gains in the plumbing, lawn and garden, and paint/cleaning supplies categories and the addition of 37 new stores in the quarter.

Sico Opens Warehouse In The West

Akzo Nobel, a coatings manufacturer and parent company of Sico Paints, has opened the first corporate Sico Paints warehouse in the western provinces. Based in Calgary, AB, the 29,000 square-foot facility will serve Sico’s customers from Manitoba to British Columbia, distributing in excess of three million litres of paint annually.
 

Canadian Tire Earnings Up

Canadian Tire Corporation, Limited had first quarter net earnings of $64.5 million, an increase of 35.5 per cent compared to $47.6 million in the same period of 2006. Retail sales for the first quarter were $1.81 billion, a 5.6 per cent increase from the same quarter last year. Tom Gauld, president and CEO, says the company’s performance benefited from strong revenue growth, enhanced margins, and tight expense controls.
 

CanWel Sales Decline

CanWel Building Materials Income Fund reported first quarter sales of $190 million compared to $217 million for the comparable period in 2006. “While the lumber and panel products pricing environment remains under pressure and challenging, we are pleased with our success in improving gross margin as we continue to grow the hardware and specialty product categories,” says Tom Donaldson, president and CEO. “Hardware and specialty products now represent 61 per cent of our total quarterly sales, up from 58 per cent a year ago.”

 
Boise Has Profitable Quarter

Boise Cascade Holdings, L.L.C. reported net income of $10.5 million for the first quarter of 2007, compared with net income of $2 million for both the first quarter 2006 and the fourth quarter 2006. Income from operations for the first quarter 2007 was $33.3 million, compared to $32.4 million in the same period of 2006 and $28.7 million for the fourth quarter 2006. “Our building materials distribution and wood products segments were both profitable despite the challenging housing market,” says Tom Stephens, chairman and chief executive officer.

New Items Featured At K/BIS

Roughly 40,000 people came to see 900 vendors show the latest trends in kitchens and baths at the 26th annual Kitchen/Bath Industry Show & Conference (K/BIS), on now at the Las Vegas Convention Center. New and unique items featured this year include automatic hidden fan controls that sense when you’re cooking and turn on the fan for you; prefab backsplashes that take minutes to install instead of days; a remote-controlled toilet with variable bidet water temperatures and a heated seat with a quiet close feature; and a dryer with a steaming feature that saves dry-cleaning costs, energy, and water. Next year, K/BIS will be held April 11 to13 at McCormick Place in Chicago, IL.


Wal-Mart Wants To Conserve

Wal-Mart has begun measuring 60,000 worldwide suppliers on their ability to develop packaging and conserve natural resources. The objective is to reduce packaging across its global supply chain by five per cent by 2013. The ‘Wal-Mart Packaging Scorecard’ will be introduced to the retailer’s Canadian suppliers and packaging community on June 21 at the ‘Wal-Mart Sustainable Packaging Exposition’ at the Toronto Congress Centre in Toronto, ON. The scorecard is a measurement tool that allows suppliers to evaluate themselves relative to other suppliers, based on specific metrics. For more information, visit http://www.pac.ca/ePromos/ON07_Sustain_Wal_mart
_Exh_R102.pdf.
 

Ontario To Reduce Plastic Bag Use

The Ontario government wants to cut plastic bag use in half over the next five years, says Laurel Broten, minister of the environment. She says that would get one billion bags a year out of the system, “and that’s a critical amount.” The province has partnered with the Recycling Council of Ontario and retail associations to implement a consumer incentives program that could include loyalty points or cash rewards. The program would be voluntary. However, if it doesn’t get results, the province may enforce mandatory charges or bans.
 

U.S. Remodeling Spending To Increase

Americans will spend nearly $233 on home remodeling this year, says the National Association of Home Builders' 2007 industry forecast. That represents a 1.9 per cent increase from the record $228 billion spent in 2006. Driving the remodeling market are the size and characteristics of the housing stock. With an average age of 33 years and rising, older homes require more remodeling – both in terms of upgrading features to compete with new construction as well as maintaining their physical quality. Though remodeling is somewhat cyclical with new construction, homeowners cannot put off a major repair like a leaky roof as they can discretionary upgrades, and that stabilizes the industry during slower housing markets.

RONA Still On Track

RONA inc. had net earnings of $9 million for the first quarter of 2007 compared to $16.4 million for the same period in 2006. However, sales were up 10 per cent for the first quarter. The reduction in earnings comes from increases in fixed costs, seasonal effects from unfavourable weather conditions, and a slowdown in economic growth, says Claude Guévin, executive vice-president and chief financial officer. Speaking at RONA’s annual general meeting, Guévin said the retailer is still on track for its 7-07 program, a two-year objective to achieve $7 billion of annualized retail sales by the end of 2007 (it's close to $6 billion now). Going forward, the company will focus on private label products, customer loyalty, cost reduction, and improved efficiencies, he said.  Also, this fall, RONA will announce its new plan for 2008 to 2011. The new plan will create long-term value by using the same four vectors of growth used in the 7-07 plan – same stores sales, construction of new stores, recruitment of new affiliates, and acquisitions. 
 

Robinson To Speak At STORE

Doug Robinson, president of Lowe’s Canada, will be one of the speakers at The Retail Council of Canada’s ‘STORE 2007, Canada’s Retail Conference.’ The conference takes place June 4 and 5 at the Toronto Congress Centre in Toronto, ON. The goal of the conference is to challenge retail leaders to rethink, enhance, and improve ‘the customer experience.’ For more information, visit http://www.storeconference.ca/.
 

True Value Sales Dip

True Value had wholesale sales of $488.5 million for its first quarter, ending March 31, 2007. Sales dipped 1.6 per cent compared with quarterly sales of $496.6 million for the same period a year ago. The co-op explained the dip in sales by citing mild winter weather and falling commodity prices. 

NHS Opens In Orlando

The 62nd annual National Hardware Show in Orlando, FL, has more than 3,500 exhibitors, a 30 per cent increase from last year. This show marks the first year for the Homewares Show, featuring storage supplies, cleaning products, and small appliances.

Building Permits Rise Sharply

The value of building permits increased sharply in March, rebounding with a double-digit gain following a particularly sluggish performance in February. Contractors took out building permits worth $6.1 billion, a 27.4 per cent increase from February, says Statistics Canada. Both residential and non-residential sectors recorded comparable gains. In the residential sector, both single- and multi-family components were on the rebound, pushing the value of permits up 25.6 per cent over February to $3.7 billion. This was the highest level during the last five months. The total value for permits in March was 0.9 per cent higher than the monthly average during the last three months of 2006, the strongest on record for the value of building permits.
 

Weyerhaeuser Swings To Profit

Weyerhaeuser swung to a net profit of $755 million from a loss of $576 million in last year’s first quarter. The company’s timberlands and wood products segments produced lower results in the first quarter. Timberlands net profit fell 11.5 per cent to $175 million from $198 million last year. Weyerhauser’s wood products segment recorded a loss of $167 million in the first quarter, compared with a profit of $117 million last year.
 

Older Consumers Favour Remodeling

Older consumers and those with a higher income are favoring remodeling over ‘trading up’ to new homes more than in past years, says a study on home buying and remodeling by NPD Group. Consumers in the $100,000 per year or higher income bracket are less likely to buy a new home and more likely to remodel, 25 per cent compared with 41 per cent. Consumers aged 55 and over showed similar results. Mark Delaney, director of home improvement, says “This bodes extremely well for the remodeling market in the near future, especially if retailers keep an eye on the high end and items that improve one’s lifestyle.”
 

Canfor Reports Loss  

Canfor had a net loss of $42.7 million dollars for the first quarter, compared with net income of $18.9 million for the first quarter of 2006. First quarter sales totaled $850.6 million, an 11.6 per cent decrease from sales of $962.7 million in the first quarter of 2006.

Re-tooled Stores Open

Canadian Tire has opened 15 newly retooled concept stores to mark the beginning of a plan to ‘renew’ its network of 1,100 retail stores. The 15 stores, located in the north and south shore areas of Montreal, represent the “largest single conversion of stores in the company’s history,” says Canadian Tire. Changes to the stores include an expansion of the company’s core product assortment, a new store design, new floor layout, and added product categories. The goal is to increase retail sales by 20 per cent on average.
 

Cappiello Leaves NHS

Rob Cappiello, industry vice-president of the National Hardware Show (NHS), has left his position. Cappiello has managed the National Hardware Show with Reed Exhibitions for the past four years. He will serve as head of conferences and special events for ICD. Dennis MacDonald, senior vice-president with Reed Exhibitions, will serve as show manager at this year’s event.

Consumers Want Ethical Practices

Going forward, retailers will need to keep track of three bottom lines – profit, people, and planet, says Dan Stanek, executive vice-president of Retail Forward. Speaking at Retail Forward’s ‘Retailing 2015: New Frontiers,’ Stanek said consumers care about social responsibility and environmental practices and will choose to do business with companies that represent these issues in a positive way. In fact, 89 per cent of consumers said they would switch brands if they feel the other brand is associated with ethical practices in these areas. This is a trend that will continue to grow, he says.
 

Industry Professionals At Show

More than 3,500 industry professionals are expected to take part in this year’s National Hardware Show Canada. It will feature exclusive ‘open to buy days’ with top retailers. It takes place October 16 and 17 in Toronto, ON. For more information, visit www.nationalhardwareshowcanada.ca. 

Jenkins Heads Castle 

Ken Jenkins is now president of Castle Building Centres Group Ltd. In his new role, he will lead Castle as it positions itself for the future. He joined Castle in April 2006 as vice-president.

Swanson’s Top Home Hardware Store in Canada

Swanson’s Home Hardware Building Centre in Kitchener, ON, has earned Home Hardware’s top honour, the Walter J. Hachborn Store of the Year Award. Swanson’s Home Hardware Building Centre was selected from among more than 1,000 locations across Canada for achieving the highest standards in retailing, merchandising, staff performance, and overall quality of store. “Winning this award is truly a sign of team collaboration,” says Brad Swanson, who with his mother Adele has been dealer-owner of the building centre for nearly six years. “Our staff works hard to provide the community with great products, selection, and expertise as well as a welcoming neighbourhood shopping environment.”
 

Luxury Recreational Properties Set To Soar

Luxury recreational property sales are set to soar in coming months as affluent baby boomers drive demand for upscale product from coast-to-coast, says the 2007 RE/MAX Recreational Property Report. It found the top-end of the market stands to gain most from the aging baby boom demographic. Teardowns, custom-builds, and renovation continue unabated, changing the shoreline of lakes and rivers in 34 of the 39 markets surveyed across the country. Upper-end sales have also affected recreational property values placing upward pressure on prices, particularly in Western Canada.

Canada Will Ban Incandescent Bulbs

The Canadian government will ban the sale of incandescent light bulbs by 2012, as part of a plan to cut greenhouse gas emissions in half by 2015 and help residents save on energy bills. “Making the switch to more efficient lighting is one of the easiest and most effective things we can do to reduce energy use and harmful emissions,” says Natural Resources Minister Gary Lunn. “By banning inefficient lighting, we can reduce our greenhouse gas emissions by more than six million tons per year.” Home Depot Canada has seen massive growth in the sale of compact fluorescent light (CFL) bulbs, with sales surging 350 per cent from 2004 to 2006. It will stop selling inefficient light bulbs by 2011.
 

Leisure Time Spent In Line-ups

Leisure time has become line-up time for many Canadians as they juggle increasingly busy lifestyles, says an NCR Corporation study. It found Canadians are becoming less patient about lining up and their frustration about queuing is the highest, followed by France, Australia, Spain, Italy, Germany, and the United Kingdom. What frustrates them about waiting in line is a lack of staff to assist them, the waste of time, and being unable to serve themselves. Canadians estimate that in a typical week, they waste anywhere from 30 minutes to more than four hours in line-ups.
 

Sears Canada Earnings Up

Sears Canada Inc.’s net earnings for the first quarter were $17.2 million compared to a loss of $11.8 million last year. Total revenues for the period were $1.219 billion compared to $1.222 billion for the 13 weeks ended April 1, 2006, a decrease of 0.2 per cent.
 

Stanley Works Profits Jump

Stanley Works’ first quarter 2007 net sales were $1.062 billion, up 10 per cent over the 2006 first quarter net sales of $968.7 million. The construction and DIY segment sales rose three per cent to $424 million, with organic sales growth in Europe and Asia off-setting a decline in the Americas.
 

Rubbermaid Profit Down

Newell Rubbermaid Inc. posted a 10 per cent drop in first quarter profit. Its net profit was $49.3 million for the three months ending March 31, compared to a profit of $54.8 million for the same period a year earlier. Revenue in the January/March period rose 3.1 per cent to $1.38 billion, compared to $1.34 billion recorded in the same period a year ago.

ADMACQ 2007 Association Of The Year

The Building Materials Retailers Association of Quebec (ADMACQ) has won the 2007 CSAE's Association of the year Award. This award recognizes healthy management and development work done by ADMACQ in the last year. ADMACQ has more than member-dealers and member-vendors.
 

Gardening Expert Crossing Country

This spring gardeners from across the country will have the chance to see gardening expert and television personality Mark Cullen. In partnership with Home Hardware, Cullen will showcase lawn and garden products and delivering helpful suggestions and solutions to consumers. "When it comes to gardening the possibilities are endless, which can make it both exciting and overwhelming at times," says Cullen. "While everyone has a vision of what they want, most of us need a little advice to pull it all together.” The tour, which runs from April to June, started in St. Paul, AB, and travels to Trail, BC, April 26; London, ON, May 9; Peterborough, ON, May 10; Mount Pearl, NL, June 5; and Charlottetown, PEI, June 6.

Black & Decker Posts Record Sales

Black & Decker had record first quarter sales of $1.6 billion, compared to sales of $1.53 billion in the first quarter of 2006. Sales in power tools and accessories increased two per cent for the quarter, but sales in the company’s hardware and home improvement segment decreased two per cent as lockset sales declined at a mid-single-digit rate, as a result of a large drop in new construction. Earnings fell 4.4 per cent for the quarter to $108.1 million from $113.1 million in the first quarter last year.

Few Firms Ready For Pandemic

Although media coverage of Avian Flu has diminished, public health experts continue to warn that a pandemic is an ongoing threat that could significantly disrupt day-to-day activities including business, government, and education, says International SOS. A survey of North American businesses about their state of preparedness and what plans they have in place for the onset of pandemic found while 65 per cent of organizations are in the process of implementing a pandemic preparedness plan, only seven per cent have implemented plans completely. 

Workaholic Label Losing Lustre

Bragging rights about being a workaholic may be coming to an end and being replaced by a focus on the family, says a Desjardins Financial Security study. The study found that more than 20 per cent of Canadians now consider themselves to be a workaholic. Despite hectic work schedules, Canadians are working hard to put these family values into practice. Approximately 72 per cent of Canadians plan vacations and 72 per cent are having regular meals with their families and friends. However, Canadians are not convinced that the priority they are placing on family is being fully supported by their workplaces. While many companies are implementing programs to promote work/life balance for their employees, the study results show that 65 per cent of Canadians feel that the values at their workplace are not in tune with their personal values.

Composite Index Gains

The composite index advanced 0.4 per cent in March, reinforcing its 0.7 per cent gain the month before. Household spending remained the driving force of growth, boosted by a robust labour market. Financial market conditions also remained buoyant, with the stock market hitting a new record. Manufacturing continued to recover slowly, as sluggish U.S. demand was compounded by the rail strike.

Sexton Adds Member

Raymond Pro Hardware & Building Supplies is the newest member of the Sexton Group Ltd. It is located in Raymond, AB.                                   

Investment In Employee Training Pays Off

Business leaders might be best off investing in their employees – rather than in machines, computers, or software, says a Canadian Council on Learning (CCL) report. ‘Connecting the Dots … Linking Training Investment to Business Outcomes and the Economy’ indicates that investment in training often helps businesses increase productivity and grow the economy more than upgrading equipment. However, there have been few measures to demonstrate the return on investment in employee training to employers.
 

Few Take Action On Older Workers

Only 17 per cent of employers in Canada have strategies in place to recruit older workers and only 24 per cent have implemented retention strategies to keep them participating in the workforce, says a Manpower Canada survey. “Many employers are not considering the percentage of their workforce that is set to retire in the next five to 10 years and the potential loss of productivity and intellectual capital that will occur when those people leave their company,” says Lori Rogers, vice-president, operations. “If employers don’t act soon, they will fail to win the war for talent, as older adults will be relied upon as one of the most important sources of talent for the future workforce.”

West Fraser Has Loss

West Fraser Timber Co. Ltd. had a first quarter loss of $5 million on sales of $759 million compared to earnings of $296 million on sales of $727 million in the fourth quarter of 2006. It had earnings of $6 million on sales of $902 million in the first quarter of last year.

Retail Sales Flat

Retail sales were essentially flat in February, masking underlying differences in movements among retail trade groups, says Statistics Canada. Weak sales at new car dealers were offset by strong sales growth in other major retail sectors in February.

Total retail sales edged up 0.1 per cent in February to an estimated $33.3 billion. Five of the eight retail sectors experienced varying degrees of sales declines in February including building and outdoor home supplies stores (-0.5 per cent). This slight sales decline may have reflected a February drop in housing starts after unusually strong construction activity in January, resulting from the unseasonably warm weather in the first half of January. 

Home Improvements To Slow Down

After three years of double-digit growth, home improvement spending by U.S. homeowners is projected to grow in the low single-digit range in 2007 says the Harvard’s Joint Center for Housing Studies. The centre’s new Leading Indicator for Remodeling Activity (LIRA), which builds on the Remodeling Activity Indicator that the Joint Center has been releasing since 1998, says homeowner spending will ease for most of 2007. Overall growth in spending for 2007 is projected to be 3.6 per cent. The easing should not be nearly as severe as that anticipated for the home building industry.

RONA Plans Three Big Boxes

RONA will build three new big box stores in the greater-Montreal area. They include an 80,000-square-foot Rona L’entrepôt in Pierrefonds and a 100,000-square-foot Reno Depot and a 120,000 square-foot Rona L’entrepôt in the South Shore area of Montreal. It plans to open all three stores between this summer and the spring of 2008. Rona already operates 73 big-box stores in Canada, including 40 in Quebec.

Small Store Debuts

The Home Depot has opened its smallest format in Concord, CA. The store is a laboratory of sorts which squeezes the big box into a miniature footprint by offering entire projects, much like its Expo Design Center chain. The small store format is being tested in four other cities in the San Francisco Bay area.

Arbitrator Affirms Prohibition Against Random Drug Testing

The Ontario Court of Appeal's 2001 decision in Entrop v. Imperial Oil Ltd. is considered the leading case with respect to whether random and unannounced drug testing is permissible in the workplace, says a Fasken Martineau Dumoulin LLP Bulletin.  Recent arbitral jurisprudence not only confirms the Court of Appeal's 2001 decision, but also casts doubt on whether random drug testing will ever be permissible in Ontario, notwithstanding technological advancements in testing methods. Employers seeking to defend drug testing in the workplace will bear the burden of demonstrating a real risk to safety in the workplace.


Consumers Paying Online

For the first time ever, U.S. consumers are paying more bills online than by paper checks. The 2007 Consumer Payment Trend Survey reports that online payments make up 39 per cent of the total volume of bill payments from the estimated 82.5 million households connected to the Internet.

Home Depot Continue Self-checkout Rollout

Home Depot Canada will continue to install self-checkout aisles, provided by NCR FastLane. The retailer first introduced self-checkout aisles in 2005 in an effort to improve front-end operations while providing more options for shoppers. Today, 136 of Home Depot Canada’s 155 stores have self-checkout aisles. About 35 per cent of all Home Depot transactions are taking place at self-checkout lanes. 
 

Midwest Represents Selkirk

Selkirk Canada will use Midwest Engineering Ltd. as the commercial/industrial representative for Selkirk product lines in Manitoba and Northwestern Ontario . Midwest Engineering Ltd. is manufacturers' agents for commercial and industrial heating, ventilating, and air conditioning products.

SKU Matching Underway

Home Hardware has started a Supplier Direct SKU Matching/Conversion for ‘Classic’ Home Stores. Speaking at its 2007 Spring Market, Bob Henderson, of the SKU Conversion Team, said the conversion allows the member stores to receive electronic item maintenance. As well, it gives stores a standard product hierarchy and concise and consistent product descriptions.
 

Nardelli Granted $134.5 Million

Bob Nardelli, the former chief executive of The Home Depot Inc., was granted $134.5 million in compensation last year. Nardelli, who resigned in early January after six years with the company, received a salary of $2.3 million, a bonus of $3 million, non-equity incentive plan compensation of $3 million and other compensation of $100.2 million. He also received stock and option awards last year that had an estimated value of $25.9 million on the days they were granted. When he resigned, he received a severance package valued at $210 million, and a sizable portion of that package is included in his reported compensation for last year.

Lowe’s Head Takes Home Nearly $8.5 Million

Robert Niblock, Lowe’s chairman and CEO, received nearly $8.5 million in compensation in 2006. He received $950,000 in salary, more than $1 million in non-equity incentive plan compensation, and almost $6.4 million in stock and option awards.

He also received $97,495 in other compensation, including $43,516 for personal use of the company aircraft and $2,149 for a company-required physical exam.

Nail Gun Injuries Rising

A U.S. study says the annual rate of nail gun injuries to consumers treated in U.S. hospital emergency rooms has soared in the past 15 years. The Centers for Disease Control and Prevention report found that the victims were consumers in 40 per cent of the 37,000 nail gun injuries that occur annually on average. In fact, injuries to consumers have increased almost 200 per cent since 1991, while injuries to workers remained stable. Injuries to upper extremities, primarily the hands and fingers, were the most common, accounting for 75 per cent of injuries to consumers and 66 per cent to professional workers. 

Consolidation Increases Purchasing Power

Consolidation has its benefits in the lumber and building materials, home improvement retailing sector. Tom Donaldson, president and CEO of CanWel Building Materials Income Fund, told the annual meeting of Castle Building Centres, that companies are looking to consolidate to achieve economics of scale, get easier access to low-cost capital, and have greater leverage over their suppliers. They’re looking for increased purchasing power at a reduced administration cost. As well, it enables independents to compete better with big companies, he said.
 

Consumer Spending Buoyant

Consumer spending in the nation's retail stores in 2006 was at very buoyant levels, thanks to strong increases in most commodity groupings, says Statistics Canada. Canadians spent $392.4 billion in retail stores last year, up 6.4 per cent from 2005. Proportionately, of every $100 in consumer spending in retail stores last year, consumers spent about $21 on food and beverages, $22 on motor vehicles, parts and services, $10 on automotive fuels oils and additives, $9 on furniture and home furnishing, $9 on health and personal care, $8 on clothing footwear and accessories, $7 on hardware, lawn and garden materials, $3 on sporting and leisure goods, and $2 on non-electric housewares. The remainder, about $9, was spent on all other goods and services such as tobacco and pet food.
 

Wal-Mart Sales Surge

Wal-Mart reported total sales of $34.26 billion for the five week period ending April 6, a 9.6 per cent climb from sales of $30.68 billion during the same span last year. For the nine week period ending April 7, overall sales grew 10.1 per cent to $61.05 billion from $55.45 billion in 2006.

TIM-BR MART Launches EnerGrade Initiative

Some TIM-BR MART retailers will now be equipped with resource and training tools to assist homeowners contemplating an energy efficiency upgrade. Its EnerGrade initiative ensures employees at select TIM-BR MART affiliates are able to help homeowners understand the types of renovation projects that will upgrade their home’s energy efficiency and help homeowners navigate the ecoENERGY Retrofit program and various provincial energy efficiency rebate and incentive programs, including introducing homeowners to NRCan-licensed energy advisors.
 

Lowe’s Picks Belleville For Fifth Location

Lowe’s will open a store in Belleville, ON, in 2008. Other Lowe’s Canadian locations, all expected to open in Ontario during the second half of 2007, include stores in Hamilton, Brantford, South Brampton, and Toronto.

Building Permits Pace Stops

Canada's record-setting pace of construction intentions came to an abrupt halt in February, as the value of building permits plunged to its lowest level in a year, says Statistics Canada. Municipalities issued $4.9 billion in building permits in February, down 22.4 per cent from the second highest level on record in January. The level was 12 per cent below last year's monthly average, and the lowest since February 2006. The decline, the fastest in 13 months, occurred due to across-the-board decreases in both residential and non-residential sectors.

 
Outlook Positive For Small Business

Canada's economic and financial forecast bodes well for small business owners in 2007/08, but tight labour market conditions will remain a key challenge for many firms, says TD Economics. It expects the Canadian economy to grow by an annual average of 2.4 per cent in 2007, and further strengthen to 2.9 per cent in 2008. While this year's pace of expansion is sub-par, it is the result of a ‘poor handoff’ created by extremely weak economic performance in the fourth quarter of 2006. Domestic demand – which encompasses spending and investment by households, businesses, and governments – is expected to experience a robust 3.3 per cent increase in 2007/08. This is slower, however, than the unsustainable 4.7 per cent gain experienced in 2006.
 

RONA Closes Acquisition

RONA inc. has received all required regulatory approvals to complete the acquisition of the assets of Noble Trade Inc., one of the largest plumbing and heating supply wholesalers in Ontario, serving a commercial and professional customer base. Noble Trade is a private company created in 1998 by the merger of Trade Plumbing Supplies and Noble Plumbing Supplies, founded in 1992 and 1993 respectively. With sales of about $150 million in the last 12 months, the company has posted average annual sales increase of 27 per cent since 1998.

RONA Opens Home & Garden Store

Less than nine months after turning the first sod, RONA inc. has opened its new Home & Garden store in Scarborough, ON. The 100,000 square-foot store has a garden centre of close to 34,000 square feet, and an indoor, drive-through lumber yard. Approximately 60 per cent of the store’s staff is Asian and in-store signage has been translated for the benefit of the predominantly Asian community.

Exhibitors Wanted

The National Hardware Show Canada is looking for exhibitors for its show this fall. It expects to feature almost 600 exhibitors at this year’s event which runs October 16 and 17 in Toronto, ON. For more information, visit www.nationalhardwareshowcanada.ca.

Home Depot Openings Down

Home Depot Inc. opened 113 stores in 2006, a slowdown from 2005, but in line with the company's long-term growth plan. It opened 86 new stores in the U.S., 20 new stores in Canada, and seven new stores in Mexico. This is 27 stores fewer than the 140 it opened in 2005. Home Depot expects to open 300 to 400 new stores by 2010 including 115 in 2007.

West Fraser Acquires U.S. Lumber Business

West Fraser Timber Co. Ltd. has completed its acquisition of 13 sawmills located in the southern United States from International Paper Company. The business will be operated by a wholly-owned U.S. subsidiary of West Fraser. 

Sexton Adds Two

The Sexton Group has two new members. They are 2 By 4 Lumber Sales Ltd, of Moncton, NB; and Discount Lumber & Windows, of Brudenell, PEI.
 

Image Design Renamed Revolve

Image Design as changed its name to Revolve. The name change reflects the company’s growth from a small graphic design firm founded in 1986 to a full-service branding agency. The company’s list of clients includes TIM-BR MARTS Ltd. and Peter Kohler Windows.

Paulin Sales Down

H. Paulin & Co., Limited’s sales for 2006 were $149.6 million, down from $150.2 million in 2005. It says Home Depot’s acquisition of its primary fastener supplier in the U.S. in 2005 has resulted in changes to its supply relationship with Paulin which will have an adverse impact on revenues and profits in 2007.

Home Depot Wants To Transform Markets

The most important factor in Home Depot’s strategy is on what’s going on at the store level and how consumers react to products, says Gino DiGioacchino, vice-president of merchandising for Home Depot Canada. Speaking at a Canadian Hardware & Housewares Manufacturers Association presentation, DiGioacchino said Home Depot’s focus is on mega trends such as outdoor living, smart home technology, eco concerns, and convenience. The retailer expects vendors to partner with it to transform these markets through communication, innovation, product excitement, and taking risks, he says.
 

Richelieu Has Record Growth

For its first quarter ended February 28, Richelieu achieved record sales growth. Consolidated sales totalled $94.5 million, representing a first quarter record. They grew by 14.1 per cent, of which 4.3 per cent came from internal growth and 9.8 per cent from the acquisition of Nystrom Group (Ontario), Kiika International (Pennsylvania), Specialty Supplies Inc. (Florida), and L.B. Brass (New York). The period's internal growth is particularly satisfactory since the first quarter is generally the weakest period of the year.

Wasaya Links With TruServ

TruServ Canada Inc. has announced a new wholesale agreement with Wasaya Group Inc. of Thunder Bay, ON. The Wasaya represent 10 First Nations communities in Northern Ontario and are committed to acquiring significant interest in viable businesses. Both companies have developed not only a supply program, but a program that links TruServ Canada to the individual Wasaya communities. It is the group's intention, in concert with TruServ Canada, to provide the community-run stores with sophisticated retail training programs. The first three communities to sign under the new agreement are Ochikan Store – Muskrat Dam; Tasona Atawekamik Store Inc. – Big Trout Lake; and Nuibinamik Community Store – Summer Beaver.
 

Women Making Power Equipment Decisions

Women are influencing 44 per cent of all outdoor power equipment purchases, says a survey by Troy-Bilt, an outdoor power equipment supplier. As well, the survey found that 21 per cent of all outdoor power equipment purchases are made by women and 23 per cent are made by men and women together. This equipment ranges from trimmers to chain saws and blowers.

3.5 Million Plan To Renovate

Over one in four (27 per cent) of all Canadian households say they plan to do some home renovation and/or remodeling work during 2007, says a Synovate survey. This means that up to 3.5 million Canadian households could be upgrading their homes this year. These improvements could include anything from putting up new bathroom fixtures to upgrading the kitchen or creating additional living space by finishing the basement.
 

Retail Sales Up

Consumers shelled out more money at gas pumps and home furnishings stores in 2005, pushing annual retail sales to their fastest growth rate since 2002, says Statistics Canada. The nation's retailers reported operating revenues of $403.6 billion in 2005, up 5.4 per cent from the previous year. The gain was well above the average annual growth rate of 4.7 per cent between 2000 and 2005.

Brick-and-mortar stores, selling to walk-in customers at physical locations, experienced revenue growth of 5.3 per cent. On the other hand, non-store retailers such as those selling exclusively through e-commerce, mail order, or catalogues posted growth of 7.5 per cent. Brick-and-mortar stores accounted for the vast majority of operating revenues, some 97 per cent in 2005. Non-store retailing represented only three per cent of total retailing activity.

Home Depot To Test New Store Formats

Home Depot will test two new store formats – a super-sized store and a mini-store. The retailer is building its biggest store ever, at 225,000 square feet, in Union, NJ. The store will carry a combination of new merchandise and expanded selections of existing products. The mini-store – roughly half the size of a typical store – will be built in California. These stores will be geared toward small markets, such as vacation areas, that can't support a full-size store.
 

Six Arrested For Using Winners Information

Florida police have arrested six people accused of using credit card information stolen from TJX Cos., the U.S. parent company of Canadian retail chains Winners and HomeSense. TJX revealed early this year that hackers had broken into its network and stolen customer data relating to credit card numbers. Estimates are that around two million Canadians may have been affected. Those arrested used stolen credit card information to purchase large quantities of gift cards, which they then redeemed at Wal-Mart and Sam's Club stores to buy things such as computers, gaming devices, and big-screen televisions. More than $8 million worth of big-ticket items were purchased with the gift cards.

 
Suppliers To Join Data Pool

Lowe’s will require all of its suppliers to become part of the ‘Big Hammer Hardlines Marketing Data Pool Program.’ Lowe's has partnered with Big Hammer Data, part of Edgenet, which will collect the product marketing content. Suppliers are expected to be enrolled in the marketing data pool between May and July, depending on their product category. Lowe’s says suppliers will see benefits from the program such as fewer data requests from Lowe's for print advertising and increased opportunities to have their product included in Lowe's marketing materials, both online and in-store.  

Powers Sues Over Wall Dog Anchor

Powers Fasteners, Inc., Brewster, NY, has filed suit against Metallics Inc. and Avanti Screw Inc. for patent infringement on the Powers Wall Dog anchor. The Wall Dog anchor is a one-piece fastener for anchoring into wallboard. Introduced in 2004, it features high profile, deep penetrating threads and leaves a much smaller hole when removed than toggles or other two-piece anchors. Typical applications include lightweight fixtures, mirrors, picture frames, bathroom accessories, shelving, drapery supports and electrical, telephone and cable accessories.

Sales Fall Back Slightly

Despite a downturn in sales of automobiles and gasoline in January, especially in Ontario, retail sales fell back only slightly from the previous month's high, says Statistics Canada. Total retail sales fell 0.2 per cent in January to an estimated $33.4 billion, mainly due to the 2.4 per cent sales decline in the automotive sector. Excluding the automotive sector, retail sales rose by 0.9 per cent. Partially offsetting the January decline in the automotive sector were widespread gains in all other sectors. Sales at building and outdoor home supplies stores, for example, were up one per cent.
 

CHHMA Hosts Maple Leaf Night 2007

The Canadian Hardware & Housewares Manufacturers Association will hold its annual Maple Leaf Night May 8. A fixture at the National Hardware Show, it will take place at the Rosen Plaza Hotel in Orlando, FL. For more information, visit www.chhma.ca.
 

Composite Up In February

The composite index rose 0.7 per cent in February, topping its 0.5 per cent gain at the start of the year, says Statistics Canada. Growth was led by a pickup in new orders for manufactured goods and continued strong consumer spending and financial markets. Only one of the 10 components fell in both January and February.

Retail Council Pleased With Tax Relief

The Retail Council of Canada (RCC) is pleased with the modest tax relief measures outlined in the 2007-2008 Federal Budget. These tax cuts will be positive news for both customers and retailers, says the RCC. Additional money in the wallets of taxpayers means that retailers have a larger potential market for which to compete. The Working Income Tax Benefit should help to reduce the disincentive for some individuals to leave welfare to find paid work. As an industry that represents a gateway to the world of work, retailers believe this measure should facilitate the entry of more people into jobs and careers in retail. The funding promised for labour skills training may also assist retailers in upgrading the skills of existing employees and helping to attract new talent.
 

AHMA Finalizes Technology Forum Program

The American Hardware Manufacturers Association (AHMA) has announced a full schedule of events for the 2007 AHMA Hardlines Technology Forum to be held April 22 to 25 in Orlando, FLA.  Highlights of the conference include keynote presentations from IBM and Microsoft Corporation; a retail panel that includes top retailers from around the USA, as well as one of New Zealand’s largest retailers for the hardware/home improvement industry; and more than 40 individual educational sessions covering topics including Bar Coding and Data Syncronization. For more information, visit www.ahma.org/htf.

Roxul Announces Major Expansion Plan For Canada

Rockwool International, the Denmark-based parent company of Canadian insulation manufacturer Roxul Inc., plans to build a second production line at the Roxul facility in Milton, ON. Construction is scheduled to begin in the summer of 2007, with completion expected in early 2009. The expansion will increase the total size of the Roxul facility to approximately 700,000 square feet, and will include a new production line and warehouse space adjacent to the existing facility and corporate head offices.
 

Home Show Returns

Canada’s largest home decorating and renovation show is returning to inspire and instruct everyone on the ‘good life.’ With more than 800 exhibitors offering every home product and service imaginable, it provides a shopping experience covering one million square feet. It takes place April 13 to 22 in Toronto, ON. For more information, visit www.nationalhomeshow.com.

EMCO Launches Integrated Marketing Campaign

With Canadians turning their focus inward and the trend towards ‘nesting’ or ‘cocooning’ continuing, EMCO Building Products Corp. is launching its first integrated consumer marketing campaign: The Comfort Zone. The Comfort Zone’s represents EMCO’s commitment to the three essential aspects of the building envelope – protection, energy efficiency, and a comfortable environment. It will use this theme on all promotional materials, from dealers’ in-store merchandising, builders’ showroom displays and trade show booths to its website and consumer and trade-focused collateral materials.

Bow Island Joins Sexton  

Bow Island Building Supplies Limited is the newest member of the Sexton Group. It is located in Bow Island, AB.
 

RONA Recruiting 3,500

RONA Inc. is launching its seasonal recruitment campaign in preparation for the renovation and gardening season ahead. Nearly 3,500 positions need to be filled in RONA’s Canada-wide network of stores. Positions available include salesperson, cashier, customer service assistant, and manager/assistant manager.

Blake Defends Nardelli

The chief executive of The Home Depot Inc., Frank Blake, defended predecessor Bob Nardelli against criticism he received over the company's lagging stock price and even referred to him as a mentor. Blake said Nardelli was good at setting a target and staying on strategy, no matter what. As for the Atlanta-based company's stock price, which has declined further since Nardelli left, Blake said Nardelli “got a lot of unfair criticism on this."
 

Back To Basics For Lowe’s

Lowe’s management is going to be asked to tackle retailing basics this year, says its CEO, Robert Niblock. Speaking to analysts at the Bank of America Consumer Conference, he said initiatives for 2007 include maintaining “great customer service,” improving store productivity, and keeping executive talent. It also plans to nurture its in-home selling model as part of an effort to simplify the shopping experience. The program is more convenient for customers because it brings sales and consulting into the customer’s home, avoiding several trips to the store.

Canadians Plan To Renovate

Over one in four of all Canadian households say they plan to do some home renovation and/or remodeling work during 2007, led by about a third of households in Atlantic and the Prairies, says a survey by global market research firm Synovate. This means that up to 3.5 million Canadian households could be upgrading their homes this year. These improvements could include anything from putting up new bathroom fixtures to upgrading the kitchen or creating additional living space by finishing the basement. Among Canadians who intend to renovate or remodel their homes during 2007, nearly half plan a bathroom project.
 

Mercier Adds Colour

Mercier Wood Flooring has broadened its GENERATIONS line, by adding its 15th  colour, Dijon. Introduced at Surfaces in Las Vegas, Dijon enhances the grain of each plank, showing a delicate golden reflection on more uniform grades, and enhancing the tone of the more authentic grades. Founded in 1980 in Montmagny, QC, Mercier is recognized as one of the most innovative leaders in the industry.

MIBRO Best Managed Company

The MIBRO Group is a winner of Canada’s 50 Best Managed Companies program for 2006, sponsored by Deloitte, CIBC Commercial Banking, National Post, and Queen’s School of Business. John Hughes, Deloitte; Leon Lapidus, MIBRO; Keith Kwan, Deloitte; Gail Walker, Bill Condie, and Anita Lapidus of MIBRO took part in the presentation of the award.  
 

Home Depot And Stanley Part Ways

Home Depot is replacing Stanley Works' builders hardware products with its own private label brands, says Stanley Works. Items such as Stanley’s padlocks and latches will be replaced by products from Crown Bolt, a manufacturer that Home Depot acquired last year.

Richelieu Acquires Cabinet Supplier

Richelieu Hardware Ltd. has acquired Village Square Cabinet Supply. The Tennessee distributor of decorative and functional hardware, kitchen accessories, and related products mainly serves a customer base of kitchen cabinet manufacturers. This acquisition adds annual sales of $7 million to Richelieu's revenues.
 

CHHMA Spring Conference Date Set

‘Building Your Business Through Clicks and Mortar: Ten years after the Internet’ is just one of the session at this year’s CHHMA Spring Conference and Annual General Meeting. It takes place April 3 and 4 in Toronto. For more information, visit www.chhma.ca.

Building Permits Reach New High

The value of building permits surged to their highest level ever in January, thanks to huge gains in the value of residential and non-residential permits, says Statistics Canada. It was the third time in four months that the $6 billion mark was surpassed. Builders took out a record $6.3 billion in building permits in January. January's level was 11.3 per cent higher than December 2006.
 

TruServ Moves To Mississauga

TruServ Canada Inc. has moved its Ontario office from Kitchener to Mississauga. However, the distribution centre will remain in Kitchener. The primary reason for relocating the office was to be more easily accessible to customers, potential customers, and vendors. 
 

Strome Handles 3M Sales

3M Canada's Construction and Home Improvement division has entered into a partnership with Strome Sales Ltd. giving sales responsibility to the Winnipeg-based sales agency for all paint, hardware, home center, and building supply accounts in western Canada.  Under the agreement, Strome Sales will operate within the 3M Canada sales and marketing structure as a strategic extension to the sales force in Western Canada.

Canadians Expect Housing Prices To Go Up

The possibility of mortgage rates rising in 2007 seems to be of much less concern across Canada, says RBC's 14th Annual Homeownership Survey. In fact, over half (57 per cent) of Canadians believe mortgage rates will drop or stay the same, compared to 31 per cent last year. At the same time, while over half of Canadians (59 per cent) believe housing prices will rise in 2007, home buying intentions are holding steady, with three in 10 Canadians (28 per cent) planning to buy a house over the next two years.

Construction Investment Rises

The total investment in residential construction increased 8.5 per cent to $79.8 billion in 2006 compared with a year earlier, says Statistics Canada. All three components of residential construction investment (new housing, renovation, and acquisition costs) posted gains. This was the eighth consecutive annual increase and a record high value. Investment in new housing was responsible for the biggest contribution, increasing 9.2 per cent to $40.7 billion. Renovation investments increased 8.7 per cent to $32 billion and accounted for 40.1 per cent of total residential construction investment in 2006. Acquisition costs accounted for 8.9 per cent of total investment or $7.1 billion, up 4.1 per cent from 2005.

Inductees Announced

Ray Gabel, vice-president, merchandise and marketing, for Home Hardware Stores; Michael Caplan, founder of Task Tools & Abrasives; and David Silverman, founder of Aqualine Plumbing, Albany Plumbing, and Polaris International; are the 2007 inductees into the Industry Hall of Fame. The Industry Hall of Fame was established in 1984 to recognize the achievements of industry leaders and pioneers. The Canadian Hardware & Housewares Manufacturers Association (CHHMA) serves as the custodians of the hall. The new inductees will be honoured April 3 at an Industry Gala Dinner. For more information, visit www.chhma.ca.
 

Triple G Joins Castle

A former member of Sexton is the newest addition to the Castle Building Centres group. Triple G Hardware Co. Ltd. is located in Atikokan, ON.

 
Eco-friendly Gardening Season Premiers At Show

Becoming less frivolous and more eco-friendly doesn't mean boring and gardening experts at the 15th Anniversary of the Successful Gardening Show agree the ‘Garden of the Future' will be sustainable, efficient and bursting with colour. Many gardening specialists also foresee a trend towards edible gardens (vegetable and herb), plants that use less water, underwater systems, water collection from roofs, and the reduction of fertilizers and pesticides along with the surprising use of artificial grass. The show runs March 15 to 18 in Toronto. For more information, visit www.internationalhomeshow.ca.
 

Organized Crime Costs $5 Billion A Year

For Canada's retail industry, retail organized crime is a serious problem and includes everything from shoplifting, container theft, counterfeiting, and refund fraud. The month as part of Fraud Prevention Month, the Retail Council of Canada will work with the Competition Bureau to help prevent Canadians from becoming victims of fraud. The Royal Canadian Mounted Police (RCMP) estimates that organized crime costs Canadians $5 billion a year.

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