STANLEY BUYS SECURITY FIRM The Stanley Works said it is acquiring HSM Electronic Protection Services, Inc. for $545 million. HSM is a provider of specialized commercial security systems. The company has established a new business unit combining HSM with its existing security operations. Tim Whall, president and COO of HSM will manage the new unit for Stanley. In a related move, Justin Boswell, who had been president of Stanley's security unit, will now lead a unit encompassing commercial locks, automatic doors and all hardware-related business activities. (Source: The Hard Fax)

CENSUS CALLS ARIZONA NATION'S FASTEST-GROWING STATE
Looking at the one-year period of July 1, 2005 to July 1, 2006, Texas saw its population grow by 579,275, the biggest increase in the nation; followed by Florida, 321,697; California, 303,402; Georgia, 231,388; and Arizona, 213,211, according to estimates released by the U.S. Census Bureau at the end of 2006. Arizona was the nation's fastest growing state, with a 3.6 percent surge in its population, nudging out Nevada, whose population grew by 3.5 percent, followed by Idaho, 2.6 percent; Georgia, 2.6 percent; and Texas 2.5 percent. The South and West continued to monopolize the list of fastest-growing states, according to the Census Bureau, with Utah, North Carolina, Colorado, Florida and South Carolina rounding out the top 10. Colorado and South Carolina replaced Delaware and Oregon on the list this year. According to the estimates, California remained the most populous state as of July 1, with a population of 36.5 million. This was followed by Texas, 23.5 million; New York, 19.3 million; Florida, 18.1 million; and Illinois, 12.8 million. Other highlights of the Census report:
     *  North Carolina replaced New Jersey as the 10th most populous
         state.
     *  The Northeast grew by only 62,000 people. In contrast, the
         South grew by 1.5 million and the West by 1 million. The Midwest
         added 281,000 people.
     *  The West was the fastest-growing region.
     *  The South now accounts for 36 percent of the nation's total
         population.
(Source: Nation's Building News)

NARDELLI RESIGNS AS HOME DEPOT CEO, BLAKE SUCCEEDS
Bob Nardelli resigned as chairman, president and CEO of Home Depot, following a mutual agreement between Nardelli and Home Depot's Board of Directors. Frank Blake, the company's current vice chairman and executive vice president succeeds Nardelli. Blake has also been elected chairman and is now a full voting member of the board. Nardelli doubled sales and profits during his tenure. According to the terms of the agreement between Nardelli and Home Depot, he was the recipient of an excessive pay package currently valued at approximately $210 million which became a target of shareholder criticism as the company's stock price fell nearly 9 percent during the period. Home Depot will now require two-thirds of its independent directors to approve any compensation granted to its CEO. In other news, Home Depot's CFO, Tomé, has been named executive vice president-corporate services. In other news, a group of investors is looking to put a stop to former Home Depot CEO Bob Nardelli's severance package of $210 million, according to a report by Reuters. In papers filed January 10 in the Superior Court of Fulton County in Atlanta, the shareholders requested an injunction against the package. Spokesman Jerry Shields said Home Depot has a policy of not commenting about ongoing litigation. Two high-ranking executives resigned from Home Depot following the departure of Nardelli. Harvey Seegers, president of Home Depot Direct, has been replaced by Steve Skinner, who will now oversee the retailer's online and catalog division. Skinner worked under Seegers as vice president-Home Depot Direct/Customer Relationship Management. John Campi, senior vice president-global sourcing and vendor management, has also resigned. Campi will be replaced by Brian Robbins. The changes were announced in an internal memo. Seegers and Campi are former GE executives brought to Home Depot by Nardelli. Sources inside Home Depot told Home Channel News that additional management changes are expected. Frank Blake, Home Depot's newly appointed chief executive, has issued a promise to reduce the levels of bureaucracy in the company and "increase the velocity of decision making," according to the source.

WAL-MART WELCOMES CUSTOMERS TO 70 NEW LOCATIONS
Wal-Mart Stores, Inc. is opening a record number of stores across the country this month in large cities to small towns that seek the products, services and jobs that the national retailer provides. There are 46 new stores and 22 expansions to Supercenters opening Jan. 19 and Jan. 22.
(Source: PR Newswire)

LOWE'S NAMES STONE NEW COO; MAKES ADMINISTRATIVE CHANGES
Larry Stone, a 37-year veteran of the number two home channel retailer Lowe's, has been named chief operating officer. Stone formerly served as senior executive vice president-merchandising and marketing. He joined the company in 1969 and has served in numerous leadership positions. Nick Canter, most recently executive vice president-store operations, will take the post of executive vice president-merchandising. Michael Brown, a 23-year Lowe's veteran, has been promoted to the executive vice president-store operations post. Dennis Knowles has been promoted to senior vice president-store operations for the company's south central division. The company announced several further administrative appointments: Michael Menser was named senior vice president-product development and global sourcing, Patricia Price was named senior vice president and general merchandise manager-outdoor living, Clinton Davis was named senior vice president and general merchandise manager-hardlines, Theresa Anderson will oversee operations in the company's home decor segment, and John Kasberger will oversee operations in the company's kitchen and bath segment.

NEW CHAIRMEN TAKE OVER AT DO IT BEST AND TRUE VALUE
Both Do it Best Corp. and True Value Co. have transitioned to new leadership on their board of directors. Stan Hardman, president of Hardman's in Spencer, West Virginia announced his retirement from Do it Best's Board of Directors at the co-op's October market in Indianapolis. Hardman served as chairman in 2005 and 2006 and has been a Do it Best board member since 1998. He is succeeded by Niel Crowson of E.C. Barton & Co. in Jonesboro, Arkansas. Bryan Ableidinger, co-owner of Parkrose Hardware in Portland, Oregon decided to step down from his role as True Value chairman. He was a board member for six years, serving as chairman since 2003. True Value's new chairman is Brian Webb, who operates Krueger's True Value in Neenah, Wisconsin and Grand Rental Station in Appleton, Wisconsin. Webb's family joined Cotter & Company in 1951 and he has served on the co-op's board since 2004.

BLACK & DECKER CUTS 160 JOBS AT JACKSON, TENNESSEE PLANT
Black & Decker cut about 160 jobs at its plants in Jackson, Tennessee through a combination of forced layoffs and voluntary retirement packages, according to a report by the Jackson Sun newspaper. The jobs were eliminated in manufacturing sections and are permanent cuts. Some employees were given severance packages and health insurance, depending on their length of time with the company. Roger Young, vice president-investor and media relations for the company, pointed to the slowing U.S. housing and construction markets as a catalyst for the reductions. Black & Decker, based in Towson, Md., purchased the plants in July for about $775 million when it acquired the Pentair Tools Group. The deal included Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw and Flex. Only the Porter-Cable and Delta brands remain in use. Two years ago, 350 employees were laid off when Black & Decker relocated the Porter-Cable power tools assembly division and reconditioning units to Reynosa, Mexico, and McAllen, Texas.

WAL-MART EXECUTIVE RESIGNS
Wal-Mart's president and CEO of global procurement, Lawrence Jackson, announced he will leave the company effective February 9 to spend more time with his family. Jeff Macho has been promoted to senior vice president and will assume Jackson's duties.

FORMER NRHA MANAGING DIRECTOR PASSES AWAY
Rick Lambert, who served as managing director for the National Retail Hardware Association (NRHA) from 1984 to 1987, passed away November 23, 2006. He was 81. After starting his hardware career as a sales rep and general sales manager for a manufacturer, Shirley Corp., Lambert joined the association in 1957 to work with manufacturers and wholesalers on the IRHA (Independent Retail Hardware Association) Hardware Week and Family Gift Center promotions and the annual Sales Planner. For full story visit: http://www.nrha.org/news.html

HOMEWARES SHOW™ OFFERS BROAD PRODUCT CATEGORIES FOR RETAILERS OF ALL SIZES
The new Homewares Show, co-located with the 2007 National Hardware Show®, is adding to the already growing list of product categories that will be at this year's event. The Homewares Show™ was created as a response to retailers' increasing sales in the housewares product category and will take place alongside the 2007 National Hardware Show, Lawn and Garden World® and The Gourmet Housewares Show™ in Orlando May 8-10. Some of these new product categories include: air purification; home storage and organization; floor coverings and floor care; cookware; kitchen accessories; gift items; decorative lighting and decor; small electrics. For more information on the 2007 National Hardware Show in Orlando, visit www.nationalhardwareshow.com.

HOME IMPROVEMENT RETAIL SALES ROSE 8.6 PERCENT IN 2006
Total sales of home improvement products through retail stores increased to $355.002 billion in 2006, up 8.6 percent from 2005. Sales declined 1.1 percent in December to $24.409 billion from $27.688 billion in November. December 2006 sales were also down 0.8 percent from December 2005. Total sales of all goods and services in the country increased 6 percent for the year and were up 5.4 percent for December 2006 compared with the year-ago month.

SEARS 4Q SALES DOWN, BUT INCOME EXPECTED TO RISE
Sears Holdings Corp. recently reported that same-store sales fell in November and December, but that it expects to top expectations for fourth quarter and full-year profits. Same-store sales for the first two months of the quarter are down 1.2 percent at Kmart stores and down 5.6 percent at Sears stores. But for the fourth quarter ending February 3, the retailer is forecasting net income will climb to between $750 million and $830 million from $648 million in the year-ago period. For the full year, the company is now projecting a profit of between $1.42 billion and $1.5 billion.

COSTCO 1Q PROFITS UP 10%, SEES 2Q OPTION CHARGE OF $45 MILLION
Costco Wholesale Corp. reported first fiscal quarter profits increased 10 percent to $236.9 million versus $215.8 million in the year-ago period. Revenue for the period grew 9 percent to $14.15 billion from last year's $12.03 billion. Same-store sales increased 4 percent for the quarter. The club retailer also said it will take a $45 million charge in the second fiscal quarter related to past stock option grants. (Courtesy: The Hard Fax)

WAL-MART DECEMBER SAME-STORE SALES UP 1.6 PERCENT
Wal-Mart Stores reports same-store sales for the month of December increased 1.6 percent over a year ago. Overall sales for the world's largest retailer increased 8.8 percent to $43.9 billion. International net sales did particularly well, increasing 30.5 percent to $10.34 billion. Same-store sales were up 1.3 percent at Wal-Mart stores and up 3.5 percent at Sam's Club. The company said overall sales for the month were hurt by soft sales in apparel, where a recent push into more trendy styles was not accepted by its customers.

NEW HOME SALES CLIMB IN NOVEMBER, PRICES ALSO UP
Sales of new single-family homes rose 3.4 percent in November to an annul rate of 1.047 million from 1.013 million in October. The numbers beat the expectations of most economists who had been predicting a rise of just 1.6 percent. Sales were still 15.3 percent lower than the boom-time sales of November 2005, but the results are encouraging in that they indicate the "housing bubble burst" may have bottomed out. The median price of a new single-family home rose to $251,700 in November from $243,800 in October and $237,900 in November 2005.

EXISTING HOME SALES DOWN 10.7 PERCENT COMPARED WITH 2005
Sales of existing homes, including single-family and condo units, were down 10.7 percent in November compared with the year-ago period, according to the National Association of Realtors (NAR). Total existing-home sales fell 10.7 percent to a seasonally adjusted annual rate of 6.28 million units in November, down from the 7.03 million-unit level in November 2005. Existing-home sales were up 0.6 percent from October, according to NAR. David Lereah, the NAR's chief economist, said modest gains are expected for home sales. "As the housing market recovers from its correction, existing-home sales should be rising gradually during 2007," Learah said. "We've entered a more sustainable period of home sales now, and we expect greater support for prices over time as inventory levels are eventually drawn down." Additionally, total housing inventory levels fell 1 percent at the end of November to 3.82 million existing homes available for sale, which represents a 7.3-month supply at the current sales pace.

NOVEMBER HOUSING STARTS RISE 6.7 PERCENT OVER OCTOBER
The U.S. Department of Commerce said that housing starts for the month of November rose 6.7 percent to a seasonally adjusted annual rate of 1.588 million from October's 1.488 million rate. Building permits, however, fell 3 percent to a 9-year low, according to the Commerce Department. Starts are down 25.5 percent in the past year and are down 12.5 percent in the first 11 months of 2006 compared with the same period in 2005. Building permits are down 31.3 percent in the past year and are down 14.1 percent in the first 11 months of 2006 compared with the same period in 2005. Regionally, starts rose 8.6 percent in the Northeast and rose 18.5 percent in the South. Starts fell 6.3 percent in the Midwest to the lowest level in 15 years. Starts fell 8.1 percent in the West to the lowest level in five years.

UPCOMING DISTRIBUTOR SHOW DATES & EVENTS
 

Bradley Caldwell, Inc.  Hershey 2007 2/6/2007  The Hershey Lodge & Convention Center  Hershey, PA  doreens@bradleycaldwell.com   Long-Lewis Hardware Company  The Great Southern Hardware Expo  2/24/2007 – 2/25/2007  Arthur R. Outlaw Mobile Convention Center  Mobile, AL  dbrown@long-lewis.com   Co-operative Feed Dealers, Inc.  Annual Stockholder's Meeting & Mini Trade Show  02/28/2007  Binghamton, NY  tacrooks@co-opfeed.com   McGregor Hardware, Inc.  Dealer Market  3/17/2007 – 3/18/2007  Springfield Fairgrounds E-Plex  Springfield, MO  rgarner@mcgregorhardware.com

Persinger Supply Company  Spring Dealer Market  3/10/2007 – 3/11/2007  Charleston Civic Center  Charleston, WV  bperry@persingersupply.com   Harrington & Company  Dealer Market  3/4/2007 – 3/5/07  Davis County Convention Center  Layton, UT  mbooth@iwon.com   Southern Hardware  Spring Road Show  3/1/2007 – 3/31/2007  Road Show through AR, MS, LA, MO and TN  mrogers@southernhardware.com

 

Doug Gilliatt (click to enlarge)		PROfiles: DOUG GILLIATT Doug joined PGM Integrated, an affiliate of PRO Group, Inc., as creative director in November 2006. After 20 years in brand development and design, Doug still gets excited when a new project crosses his desk. His passion is challenging clients to produce branding programs that are relevant, likable and unexpected. Prior to joining PGM Integrated, Doug was a principal in Gilliatt/Paris, an agency created with the idea that clients deserve world-class advertising without world-class bureaucracy. The transition to PGM Integrated was a very natural one. At Gilliatt/Paris, Doug worked on a variety of accounts including Phillips Consumer Communications, Verizon, Blockbuster, Overhead Doors, Air Vent, a Gibraltar company and Crosspan Network Access Technologies, a division of Raytheon. Before forming Gilliatt/Paris with Chuck Paris, Doug was creative director for Harrison Simmons, Dallas. He managed creative programs for clients such as CompUSA, PageNet, Halliburton, Pearle Vision, Marriott Hotels, The Associates and Don Pablo's Mexican Kitchen. He is a National Addy Winner, as well as a recipient of a Dallas Tops Gold, Fort Worth Addy's Gold and Fort Worth Addy's Best of Show. He also is a regular contributor to publications like Creativity, Adweek and Archive.

SUCCESS
"Obstacles are those frightful things you see when you take your eyes off your goal."

-Henry Ford