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TRUE VALUE LOSES LAWSUIT AGAINST ERNST & YOUNG
On July 28, 2005, an arbitration panel denied True Value Company's claims against Ernst & Young LLP in their entirety. The decision of the arbitration panel also requires True Value to reimburse Ernst & Young for its attorneys' fees and expenses related to this matter, which have yet to be ascertained. True Value believes that such amount may be material to its financial statements and results of operations. As True Value previously disclosed, the arbitration is subject to confidentiality requirements. In other company news, on September 2, 2005, True Value Company entered into an agreement with Blackhawk/Halsted LLC to sell its Chicago paint manufacturing facility for $10.125 million with a scheduled closing date in December 2005. The facility sale is part of its previously announced plan to close the Chicago paint manufacturing facility and move its operations to True Value's Cary, Illinois facility.
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BOSTWICK-BRAUN 2005 DEALER MARKET AND 150TH ANNIVERSARY BASH
This year's Bostwick-Braun Dealer Market September 22-24 in Toledo, Ohio was a 150th anniversary bash
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| with a Mardi Gras feel! When the company chose the Mardi Gras theme earlier in the year, nobody could have imagined what was in store for New Orleans and the surrounding area. The Bostwick-Braun Company's employee-owners were deeply saddened by the effects of Hurricane Katrina and honored those who survived the ravaging storm and remember those who did not. As Hurricane Rita closed in, the company set-up a Hurricane Relief Donation Booth where customers, vendors, and employees could make donations during the Market. They also sold strands of beads and bracelets, with proceeds going toward hurricane relief. All $5,000 raised is going to the American Red Cross' hurricane relief fund. Bostwick-Braun thanks all of the big-hearted donors, saying "Customers and vendors joined in our celebration by donning beads, festive masks, and hats throughout the Market." As winner of the best-decorated booth, The Tansey Group received $500, which they donated back to the American Red Cross. The Market drew a large crowd of customers representing nearly 300 stores. They kept busy by stopping at the 300 vendor booths offering some of the best deals of the year. One vendor commented, "I've never seen such a large crowd during the PRO Preview. There were customers actually lined up to get in the hall." Retail Consultant Tom Shay of Profits Plus delivered two informative seminars: "Characteristics of a Successful Business" and "Three Steps to Increasing Your Profit Margin." Scott Wright of the NRHA was also at this year's Market offering some vital training. Bostwick-Braun's Senior Programmer / Analyst Dan McCloskey operated the E-Information booth where customers could get hands-on e-catalog training. He also introduced their new iDropship Program, where customers can access dropship vendors' storefronts directly from an e-catalog. PRO Hardware President and COO, Steve Synnott, announced the 2004 Bostwick-Braun PRO Retailer of the Year winner -Todd Buckingham of Buckingham PRO Hardware & Great Outdoors. (Source: The Anvil)
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STANLEY TO ACQUIRE NATIONAL MANUFACTURING
The Stanley Works announced that it has entered into an
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| agreement to purchase National Manufacturing Co. for $170 million. This well-established hardware business with annual revenues of $200 million will be combined with Stanley's heritage builders' hardware business (annual revenues $100 million). Stanley's offer is for 100 percent of the shares of National Manufacturing and is payable in cash. Both companies' boards of directors have approved the transaction, which remains subject to approval by two-thirds of National's shareowners, regulatory approvals and other customary conditions. The deal is expected to close by year-end 2005 or shortly thereafter. |
CHASE-PITKIN TO CLOSE ALL STORES
Chase-Pitkin Home & Garden Centers, a division of grocery chain Wegman's Food Markets Inc., announced plans to exit the home improvement business. All 14 Chase-Pitkin stores will begin closing by early next year, according to a report in the Rochester Democrat and Chronicle, although no specific timetable has been set for their closing. Ten of the Fourteen stores are in the Rochester, New York market.
FORTUNE MAGAZINE HIGHLIGHTS TOP BRANDS
Landor Associates, a leading branding and design consultancy, in partnership with Brand Economics, a division of global consulting firm Stern Stewart & Co., announced the results of its 2005 Breakaway Brands Study. The study's findings appear in FORTUNE magazine's October 31st issue, available now at http://www.fortune.com and on newsstands October 21. The study identifies the ten brands in the United States that have made the greatest percentage gains in business value as a result of superb brand strategy and execution over the three-year period, from 2001-2004. While the study includes popular brands, like Google and iPod, it also recognizes newer brands, like LeapFrog and Sierra Mist, as well as old favorites, such as Eggo and Gerber that have successfully revitalized their franchises through well conceived and executed strategies. The study demonstrates that building strong brands is vital to virtually any organization, regardless of its size or industry. The study identifies the following ten Breakaway Brands:
- Google - Internet
- LeapFrog - Educational Toys
- Sony Cyber-shot - Digital Cameras
- Sierra Mist - Soft Drinks
- Subway - Quick Serve Restaurants
- BP - Oil & Petroleum
- DeWalt - Power Tools
- iPod - Consumer Electronics
- Eggo - Packaged Foods
- Gerber - Baby Foods
The research also identified several runner-up brands to watch: Cheer (laundry detergent), Caterpillar (industrial equipment), Firestone (tires), Borden (dairy products) and Olympus (digital cameras), based on brand valuation metrics and analysis.
SHIVELY PROMOTED TO VICE PRESIDENT AT BOSTWICK-BRAUN
The Bostwick-Braun Company's board of directors elected Jeff Shively as vice president, Transportation and Corporate Quality. He was formerly the director of transportation. Shively has been with the company since August 19, 2002, overseeing the logistic functions of Bostwick-Braun. His new responsibilities will include managing the company's ISO9001:2000 system and handling its internal and external ISO audits. Chairman and CEO of Bostwick-Braun, Bill Bollin said, "Jeff has done an outstanding job of managing our transportation function over the last three years. Under his leadership, we've totally upgraded our fleet and switched our drivers from 3PL contractors to employee-owners of The Bostwick-Braun Company. We're excited to have him take on the additional responsibilities of Corporate Quality and welcome him as our newest officer."
WAL-MART SHUFFLES EXECUTIVES
Wal-Mart Stores has switched the leaders of its U.S. and international operations in an effort to boost sales. John Menzer, who had headed Wal-Mart International, will take over major functions of the U.S. business, while Mike Duke, chief executive of the U.S. Wal-Mart Stores division, will run Wal-Mart International. In addition, both executives were promoted to the position of vice chairman. Previously, Tom Coughlin, who Wal-Mart accuses of misappropriating funds, had held that title. Eduardo Castro-Wright, chief operating officer of the U.S. Wal-Mart Stores unit, has also been named president and CEO of the division and will report to Menzer. Wal-Mart Stores divisional manager and senior vice president Pat Curran has been promoted to executive vice president-store operations. In the Sam's Club warehouse store division, Greg Spragg, formerly executive vice president for Sam's Club operations, has been named executive vice president for the division's merchandising and replenishment. Regional Sam's Club vice president Greg Johnston has been promoted to executive vice president for operations.
WAL-MART ANNOUNCES SUPPLIER DIVERSITY INITIATIVE
Wal-Mart Stores, Inc. announced that it will invest $25 million to establish a private equity fund that will directly issue equity investments in women and minority-owned business enterprises. Wal-Mart unveiled the new fund at the 2005 National Association of Investment Companies (NAIC) conference in San Diego.
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JOE GALLI RESIGNS AS CEO OF NEWELL RUBBERMAID
Newell Rubbermaid Inc. announced
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| that Joseph Galli, chief executive officer since 2001, has resigned his position as CEO and director by mutual agreement with the board of directors. Mark D. Ketchum, who joined the company's board earlier this year after retiring in late 2004 as a top executive at Proctor & Gamble, will serve as interim CEO while an external search for a permanent replacement is conducted. |
POLSTEINS HOME CENTER PARTNERS WITH AMAZON.COM
Polsteins.com recently partnered with Internet giant Amazon.com. Amazon customers will now gain access to home and garden products offered by Polsteins.com. "We are very excited about the opportunity to offer our newly expanded product selection to Amazon customers," said Joseph Cohen, CEO of New York-based Polsteins.com. "Online home shopping accounts for a significant fraction of Internet sales and this joint venture will enable Amazon.com and Polsteins.com to capitalize on this market." The companies did not disclose financial details of the agreement.
SEARS NAMES HEAD OF THE GREAT INDOORS
Sears named Teresa Byrd senior vice president and general manager of The Great Indoors (TGI). She will report to William Crowley, executive vice president, CFO and administrative officer of Sears Holdings Corp. Byrd most recently served as senior vice president and general merchandise manager for Sears Essentials and Sears Grand.
KMART NAMES TWO TOP EXECUTIVES
Kmart Holding Corp., a subsidiary of Sears Holdings Corp., named Donald J. Germano as senior vice president and general manager of Kmart stores and Dene L. Rogers as executive vice president for restructuring and business improvement.
HOME IMPROVEMENT RETAIL SALES UP 8.6 PERCENT IN SEPTEMBER
Sales of home improvement products through retail stores totaled $27.969 billion in September, up from $27.681 billion in August and up 8.6 percent from September a year ago, according to the latest Department of Commerce report released October 14, 2005.
For the first nine months of the year, home improvement product sales are up 9 percent over last year to $249.207 billion. Total retail sales in the country, excluding motor vehicles, is up 8.1 percent for the year to $2.767 trillion.
PENDING HOME SALES INDEX HITS RECORD
According to the National Association of Realtors, pending home sales have risen to a record level, defying some expectations of a cooling market. The Pending Home Sales Index, based on contracts signed in August, rose 3.2 percent to a reading of 129.5, and is 4.7 percent higher than August 2004. The previous record was 128.1 in October 2004. Regionally, the PHSI in the West rose 7.6 percent to 136.7 in August and was 8.7 percent higher than August 2004. The index in the Midwest increased 2.8 percent to a level of 119.4, and was 0.5 above a year ago. In the South, the index rose 2.2 percent to 142.1, and was 7.6 percent higher than August 2004. The Northeast index declined 0.5 percent to 108.5 in August, and was 2.2 percent lower than a year ago.
NATIONAL ASSOCIATION OF REALTORS HOME SALES FORECAST LOOKING STRONGER
The forecast for home sales has trended up as the year progressed, fueled lately by added demand resulting from the impact of recent hurricanes. Existing home sales are forecast to rise 4.2 percent to 7.07 million in 2005, while new-home sales are expected to increase 7.1 percent to 1.29 million. Total housing starts, single-family and multifamily, should be up 4.5 percent to 2.04 million units this year, the best showing since 1973. Single-family starts are seen at a record of 1.70 million. Long-term interest rates are rising at a faster clip. The 30-year fixed-rate mortgage is projected to reach 6.2 percent in the fourth quarter, and trend up to 6.7 percent by the end of next year. The national median existing-home price for all housing types is forecast to increase 12.5 percent in 2005 to $208,400, while the median new-home price should rise 3.9 percent to $229,700. (Source: National Association of Realtors)
THE MARKETS
The third quarter is now history and it was a respectable one as far as the stock market is concerned. For the quarter, the Dow Jones Industrial Average rose 2.9 percent, the S&P 500 rose 3.1 percent, and the NASDAQ Composite rose 4.6 percent, according to the Wall Street Journal. That performance is even more impressive when you consider the "headwinds" the market faced. During the quarter, we endured two devastating hurricanes, an 80 percent increase in natural-gas futures prices according to Marketwatch.com, a 13 percent rise in crude oil prices according to Marketwatch.com and two interest-rate hikes from the Federal Reserve. (Source: Yahoo! Finance, Barron's)
THE RICH GOT RICHER OVER THE PAST YEAR
According to the latest release of The Forbes 400 list of the Wealthiest Americans, the collective wealth of the 400 grew to $1.13 trillion, an increase of $120 million from last year. Only 26 millionaires made the list. The remaining 374 were billionaires led by Bill Gates at $51 billion, Warren Buffet at $40 billion, Paul Allen at $22.5 billion, and Michael Dell at $18 billion.
A BRIGHT SIDE TO HIGHER ENERGY PRICES
Over the past 12 months, do you think more bicycles or more cars have been sold? According to the U.S. Chamber of Commerce, as reported by the AFP news service, more bicycles have been sold. The industry association, Bikes Belong, says 19 million bikes were sold in 2004 and that 87 million Americans hopped on a bike in the past 12 months. The number one reason cited for the increase in bike sales was the cost of gas. Benefits to the environment and health improvements were additional reasons cited.
UPCOMING DISTRIBUTOR SHOW DATES
Vinson Clark
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PROfiles: VINSON CLARK
Vinson joined PGM, an affiliate of PRO Group, Inc., as account supervisor in June 2003. Meticulous attention to detail and an obsession with exceptional service is the best way to describe Vinson. He offers more than ten years experience
in account management and client services. As account supervisor, he focuses on strategic planning, operational development and stewarding all projects from inception to delivery. He also manages all account teams, and generates new
business opportunities. Prior to PGM, Vinson was vice president of Account Services for Forum 21, a Denver agency specializing in the technology
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| sector with more than 70 clients worldwide. He was responsible for account management, implementation of marketing programs and development of internal systems for clients in many different industries. Vinson also brings invaluable customer service and budgeting experience from managing several upscale restaurants. His keen insights into customer behavior also stem from his BA in Organizational Communication and Psychology from the University of Arizona, and an MBA in Marketing from the University of Phoenix. |
LIFE
"Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds of your sails. Explore. Dream. Discover."
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