Volume 19, Issue 8

August 12, 2008
 

Brendan Sullivan		Shari Kalbach

ACE CUTS LBM STAFF
Ace Hardware reduced the size of its LBM division and brought it under the direction of Sean Flynn, a longtime merchandise executive for the Oak Brook, Ill.-based cooperative.  Amy Pellerito, a 19-year Ace veteran and previously LBM manager, is no longer with the company. Ace hired Pellerito as a lumber trader in 1989. When Ace spun off its lumber division in 1999, she continued with Ace in store planning and design. When Ace resumed its LBM efforts with a focused division in 2003, the co-op put Pellerito in charge. In 2006, Pellerito had four territory managers in her department. Two LBM specialists -- Jeff McGuire and Beth Stewart -- remain with the LBM division, according to McGuire, who pointed to market conditions as a primary reason for the structural change.  Ace spokesman Christopher Boniface told Home Channel News the change is “more than a reaction to economic issues. From our standpoint, it’s a better alignment of our buying offices.”  Source: Home Channel News

NEWELL RUBBERMAID ANNOUNCES STRATEGIC INITIATIVES

Newell Rubbermaid announced strategic initiatives designed to reduce the company's exposure to volatile commodity markets, including a restructuring of the company's product portfolio and aggressive pricing mechanisms. "In recent weeks, input cost inflation has accelerated dramatically, especially in resin, which is the largest single component of our cost of goods," stated Mark Ketchum, president and chief executive officer of Newell Rubbermaid. "Unfortunately we don't see this situation reversing course. In categories where resin is a high percentage of cost of goods sold and the consumer's willingness to pay for innovation is low, the economics are no longer viable. In the face of these radically changed market conditions, we are taking a number of proactive steps to reduce our exposure to volatile commodity markets, protect our margins and profitability, and strengthen our portfolio." The company expects to rationalize its portfolio by divesting, downsizing or exiting approximately $500 million in sales of selected consumer product categories.  Click here to tead the full Press Release.

INTERNET COUPON TRENDS

Internet coupons are of increasing interest to consumers, according to a recent analysis by consumer and media measurement firm Scarborough Research. Eleven percent of households currently obtain coupons via the Internet, and this has increased 83 percent since 2005.  However, the Sunday newspaper remains the number one place for acquiring household coupons. Fifty-three percent of households get their coupons from the Sunday newspaper. Other leading places for acquiring coupons include the mail (35 percent of households usually obtain coupons via the mail), in-store coupons (33 percent), preferred customer/loyalty cards (22 percent), in-store circulars (22 percent), weekday newspapers (17 percent), product packages (17 percent) and magazines (15 percent). All of the coupon acquisition categories have experienced growth since 2005, however none at the level of Internet coupons (see table at end of release for details).  "With prices for consumer goods rising, we can only expect that a 'good deal' is of increasing importance to shoppers. Coupons are one of several economically-focused promotional tools that stores and product brands can use to get shoppers in the door and spending despite these uncertain economic times. And, the Internet provides an easy to use vehicle to search for coupons," said Alisa Joseph, vice president, advertiser marketing services, Scarborough Research.  Source: pr newswire

BUILDING PERMITS

Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,091,000.  This is 11.6 percent (±1.2%) above the revised May rate of 978,000, but is 23.9 percent (±1.3%) below the revised June 2007 estimate of 1,433,000.  Single-family authorizations in June were at a rate of 613,000; this is 3.5 percent (±1.4%) below the May figure of 635,000.  Authorizations of units in buildings with five units or more were at a rate of 446,000 in June. Click here read the full Press Release.

HOUSING STARTS

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,066,000. This is 9.1 percent (±10.3%)* above the revised May estimate of 977,000, but is 26.9 percent (±5.9%) below the revised June 2007 rate of 1,458,000.  Single-family housing starts in June were at a rate of 647,000; this is 5.3 percent (±9.6%)* below the May figure of 683,000. The June rate for units in buildings with five units or more was 400,000. Click here read the full Press Release.

HOUSING COMPLETIONS

Privately-owned housing completions in June were at a seasonally adjusted annual rate of 1,167,000. This is 1.2 percent (±11.9%)* above the revised May estimate of 1,153,000, but is 21.7 percent (±8.0%) below the revised June 2007 rate of 1,491,000.  Single-family housing completions in June were at a rate of 859,000; this is 2.9 percent (±10.9%)* below the May figure of 885,000.  The June rate for units in buildings with five units or more was 289,000. Click here read the full Press Release.

FIRST-TIME HOME BUYER TAX CREDIT WILL HELP STIMULATE HOUSING MARKET

The nation’s home builders are confident that a new temporary $7,500 tax credit for first-time home buyers included in a landmark housing bill enacted into law will get buyers back into the marketplace and help end the current cyclical downturn in the housing industry. “First-time home buyers make up about 40 percent of the entire market,” Sandy Dunn, president of the National Association of Home Builders (NAHB) and a home builder from Point Pleasant, W.Va., said during a news tele-conference held to highlight the provisions and benefits of the new housing stimulus legislation. Ed Brady, a home builder from Illinois who builds about 130 homes annually, said the biggest problem in his market is a backlog of inventory.  “The housing bill contains two key components that will help take inventory off the market and restore a more normal supply-and-demand balance,” said Brady.  Brady said the temporary, first-time home buyer tax, which expires on July 1, 2009, will provide prospective buyers a major financial incentive to get off the fence and jump back into the market.  While getting more first-time home buyers into the market will help to whittle down existing inventory, Brady also noted that the new law provides FHA insurance for a program geared to prevent families facing foreclosure from losing their homes.  “In turn, this will firm up prices and send a signal that we are either at the bottom or very near the bottom and that there isn’t a better time to buy than today’s market” Said Brady. NAHB tax economist Rob Dietz explained how the tax credit works and encouraged those interested and wondering if they qualify to consult NAHB’s new Web site, www.federalhousingtaxcredit.com. The Web site, which attracted more than 50,000 unique visitors during its first four days, contains consumer information about the tax credit, including eligibility requirements.   Click here to read the Full Press Release.

STANLEY WORKS BOARD ELECTS CORPORATE EXECUTIVE OFFICER

The Board of Directors of The Stanley Works announced that Brett

Bontrager, Vice President, Business Development and President, Stanley

Convergent Security Solutions, has been named an Executive Officer of the

Corporation.  John F. Lundgren, Chairman and Chief Executive Officer, commented: "The naming of Brett as an executive officer underscores the significance of his role and the contributions he has personally made towards the success of the Company as a leader of one of our key strategic growth businesses as well as our highly successful business development organization. Brett's management skills, business acumen, leadership and passion for excellence are true benchmarks for our organization. We congratulate him on this recognition of his achievements."  The Stanley Works, an S&P 500 company, is a diversified worldwide supplier of tools and engineered solutions for professional, industrial, construction and do-it-yourself use, and security solutions for commercial applications. More information about The Stanley Works can be found at http://www.stanleyworks.com.

PRO HARDWARE ANNOUNCES 2008 PAUL L. COSGRAVE MEMORIAL AWARD WINNER & 2007 PRO HARDWARE RETAILERS OF THE YEAR

Denver-based PRO Hardware has named Poultry Electric PRO Hardware of Winchester, Tenn. the winner of the 2008 Paul L. Cosgrave Memorial Award.  Poultry Electric is also the 2007 PRO Hardware Retailer of the Year for Wallace Hardware Company. The Paul L. Cosgrave Memorial Award, presented annually to a PRO Hardware retailer, recognizes superior commitment to the principles and ideals of effective hardware merchandising developed by PRO Hardware founder Paul L. Cosgrave. The 2008 Paul L. Cosgrave Award finalist is McClain PRO Hardware of Hanover, Michigan. McClain PRO Hardware is also PRO Hardware Retailer of the Year for The Bostwick-Braun Company, which is based in Toledo, Ohio.  The 2007 PRO Hardware Retailer of the Year for Horizon Distribution, Inc. is Welches Mountain Building Supply of Welches, Oregon.

The 2007 PRO Hardware Retailer of the Year for Long-Lewis Hardware Company is Danny's PRO Builder's Supply of Centre, Ala. PRO Hardware Retailers of the Year are selected based upon merchandising, inventory management, PRO key supplier support, advertising, store identification, sales and financial performance. Click here to read the full Press Release. 

UPCOMING DISTRIBUTOR SHOW DATES & EVENTS
 

LISTENING

“We listened to what our customers wanted and acted on what they said. Good things happen when you pay attention”.

--John F. Smith