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CHHMA NEWS

CHHMA - EYE ON OUR INDUSTRY
Volume 14, Issue 37, October 2, 2014

Inside This Issue:

• Register Now for Information Session on Canadian Data Synchronization 
• Congratulations to Vaughn Crofford for 20 Years at the CHHMA
• Sears to Sell Most of its Sears Canada Stake through Rights Offering
• Sears Canada CEO Resigns After One Year
• XS Cargo Fails to Restructure, Starts Liquidating Stores 
• Muji Plans 7 or 8 Canadian Stores Over the Next 5 Years
• Sears Store Dealers Denounce Changes that Leave Them ‘Doomed to Financial Ruin’
• Canadians Little Affected by Home Depot Data Breach
• Canadian Economy Stalls in July
• Retail Sales in Canada Gaining Strength (Despite What You May Have Heard) 
• Latest U.S. Economic News 


Association News



Register Now for Information Session on Canadian Data Synchronization     
 
Data synchronization is rapidly becoming the product content solution of choice for retailers and distributors in Canada and globally. Data synchronization enables a supplier to populate their product catalogue items into a standard data structure and as they add new items and update existing items the changes are automatically transmitted into the data recipient’s environment within 24 hours – this keeps them and their trading partners on the same page.

Many vendors have been getting pressure from customers to comply with data synchronization and it will only increase in the coming years. There has been a lot of confusion and misinformation about data synchronization and the inter-operability of various networks. The CHHMA has been lobbying retailers to keep an open and competitive environment and not limit the marketplace to one exclusive service provider for data synchronization in Canada. Costs for setting up your products can be significant, so it is important that you are aware of your various options.

Therefore, the CHHMA will be conducting an information session on Thursday, October 30, 2014, at a Toronto Airport Area location (TBA) to help clarify the situation.  Read More >>


    
Congratulations to Vaughn Crofford for 20 Years at the CHHMA Recipients   

On behalf of the Board of Directors, Staff and Members, Steve Barker, Chairman of the Board, would like to congratulate and thank Vaughn Crofford for 20 years of service to the CHHMA.

Vaughn joined the Association in August 1994 after a successful career in retail. His experience in the industry has steered the CHHMA through many hurdles and today we are a widely respected Association.

We thank Vaughn for his dedication and commitment over the past 20 years. 



Industry News
 
Sears to Sell Most of its Sears Canada Stake through Rights Offering  
 
Struggling Sears Holdings Corp. said Thursday it would raise up to $380-million by selling most of its stake in Sears Canada Inc. through a rights issue, generating liquidity ahead of the crucial holiday shopping season.  Sears Holdings, which holds a 51% stake in its beleaguered Canadian unit, will sell 40 million shares of Sears Canada, leaving it with a stake of about 12%.

Sears Holdings put its stake in Sears Canada on the block in May as a part of the Illinois-based company’s efforts to turn around its business after years of declining sales.   Read More >>


     
Sears Canada CEO Resigns After One Year     

Troubled Sears Canada Inc. is looking for its fourth CEO in three years after the exit of Douglas Campbell from the top office one year into the job.  Mr. Campbell, a former U.S. Marine pilot and corporate turnaround specialist, has said he will leave the department store chain for “family reasons” by the end of the year, Toronto-based Sears said in a statement last Thursday.  Mr. Campbell intends to continue as the CEO until Sears Canada names a replacement, but no later than January 1, 2015.   Read More >>



XS Cargo Fails to Restructure, Starts Liquidating Stores 

In a sign of the fragile, crowded retail landscape, a cross-country discount chain has succumbed to its difficulties and is closing all its stores.  XS Cargo Co. of Mississauga, Ontario, last weekend started to liquidate all of its 50 stores after filing for protection from creditors in the summer with the goal of restructuring and emerging as a going concern.  It follows the demise of Big Lots, which operated 78 stores across the country, including 73 under the liquidation world banner.  Read More >>


 
Muji Plans 7 or 8 Canadian Stores Over the Next 5 Years 

Japanese retailer Muji aims to build a network of seven or eight stores across Canada over the next five years, part of a broader plan to generate more revenue outside its home market, a senior executive told Reuters.  Muji, which expects to open its first Canadian store in November in Toronto, wants to have more stores overseas than in Japan within the next two years.

Muji, short for Mujirushi Ryohin, literally means “no-brand quality products.” The chain offers a wide variety of household items, from kitchen appliances to sofas, as well as consumer products and basic apparel.  The retailer has been looking abroad as Japan’s aging population weighs on sales. It has also had to contend with a sales tax increase there in April.  Read More >>



Sears Store Dealers Denounce Changes that Leave Them ‘Doomed to Financial Ruin’
(Article by Hollie Shaw, The Financial Post)

David Halsey didn’t envision spending his retirement years working as a sales associate at Canadian Tire.  But it’s where the former Sears Hometown store dealer has ended up after walking away from his unprofitable Lindsay, Ontario store a year and a half ago.  Mr. Halsey and his wife Darlene are among hundreds of Sears Hometown store dealers represented in a $100-million class action lawsuit against Sears Canada that was certified this month. The dealers allege Sears Canada systematically depleted their livelihoods by changing commission structures and diverting sales away from dealers and towards its online site, Sears.ca.  Read More >>



Canadians Little Affected by Home Depot Data Breach
(Article by Richard Blackwell, The Globe and Mail)

The massive security breach at retailer Home Depot Inc., which affected as many as 56 million debit and credit cards across North America, has not resulted in a substantial boost in fraud in Canada.  Canadian financial institutions say they have so far seen little or no increase in fraud cases involving payment card as a result of the breach, which began in April.   Read More >>



Economic News
 
Canadian Economy Stalls in July   

The Canadian economy stalled in July, after six consecutive monthly gains, as growth in manufacturing and the public sector was offset by declines in energy and utilities output — pointing to no change in interest rates any time soon. The flat reading in GDP was the weakest performance since December 2013, when the economy fell by 0.4%, Statistics Canada said Tuesday.

Economists had expected a month-over-month rise of 0.3%, driven largely by strong data coming from the manufacturing sector. But Statistics Canada reported that while manufacturing did post a strong 1.0% rise in the month and the public sector contributed a solid 0.5% gain, the country’s big energy sector slumped 2.0%, amid lower production.

On a year-over-year basis, GDP was up 2.5%, below the consensus expectation of 2.8%.  Read More >>



Retail Sales in Canada Gaining Strength (Despite What You May Have Heard)      
(Article by Ed Strapagiel, Consultant)

The latest reports are that retail sales in Canada declined 0.1% in July 2014 versus June, but this could be misleading. The result is based on Statistics Canada's seasonally adjusted data, but the seasonal adjustment factors are estimates. For July, the adjustment factor applied was 5.9%, and even a modest misestimate here could significantly change the end result.

Another way of looking at it is the year-over-year change. July 2014 total retail sales on a not seasonally basis were in fact up 6.6% over July 2013, the highest single month gain in 2½ years. More broadly, for the 3 months ending July total retail was up 5.3% year-over-year, another 2½ year high. Furthermore, the 3-month trend continues to track above the 12-month trend, indicating increasing retail sales.   Read More >>


 
Latest U.S. Economic News
 
U.S. single-family home prices rose in July on a year-over-year basis but fell short of expectations, a closely watched survey said on Tuesday.  The S&P/Case Shiller composite index of 20 metropolitan areas gained 6.7% in July year over year, shy of expectations for a 7.5% rise. On a seasonally adjusted monthly basis, prices in the 20 cities fell 0.5 per cent in July. A Reuters poll of economists had forecast a flat reading.  

U.S. consumer confidence fell in September for the first time in five month.  The Conference Board, an industry group, said its index of consumer attitudes fell to 86.0 in September from a upwardly revised 93.4 the month before. Economists had expected a reading of 92.5, according to a Reuters poll.

American consumers spent more in August, a positive sign for the U.S. economy which appears to have shifted into a higher gear.  The Commerce Department said on Monday consumer spending rose 0.5% last month after being unchanged in July. The growth in August was just above the median forecast in a Reuters poll of a 0.4% gain.  

Contracts to purchase previously owned U.S. homes
fell more than expected in August, pointing to a still shaky housing sector. The National Association of Realtors (NAR) said on Monday its Pending Home Sales Index, based on contracts signed last month, fell 1.0% to 104.7. Economists polled by Reuters had expected a decline of just 0.1%.

The U.S. economy grew at its fastest pace in 2-1/2 years in the second quarter and activity was broad-based, in a bullish signal for the remainder of the year.The Commerce Department last Friday raised its estimate of GDP to show the U.S. economy expanded at a 4.6% annual rate. The best performance since the fourth quarter of 2011 reflected a faster pace of business spending and sturdier export growth than previously estimated.  Read More >>
 

 Upcoming CHHMA Events 


Canadian Data Synchronization Information Session
Thursday, October 30, 2014
Toronto Airport Area Location (TBA), Mississauga, Ontario

Industry Cocktail
Thursday, December 11, 2014
Casino de Montreal, Montreal, Quebec

Canada Night
Held in Conjunction with the International Home+Housewares Show
Sunday, March 8, 2015
InterContinental Hotel, Chicago, Illinois

CHHMA Spring Conference & AGM
Wednesday, April 8, 2015
International Centre (Conference Facility), Mississauga, Ontario

CHHMA Maple Leaf Night
Held in Conjunction with the National Hardware Show
Tuesday, May 5, 2015
The Mirage Hotel & Casino, Las Vegas, Nevada

CHHMA Ontario Golf Tournament
Tuesday, May 26, 2015
Angus Glen Golf Club, Markham, Ontario

CHHMA Industry Calendar

To register for all events visit our website at www.chhma.ca or call Pam Winter at (416) 282-0022 ext.21.


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"Eye On Our Industry" is published by the CHHMA as an information resource for our members. Member input regarding content and format is welcomed. Please contact Michael Jorgenson by email: mjorgenson@chhma.ca, or call at (416) 282-0022, ext. 34. CHHMA is located at 1335 Morningside Ave., Suite 101, Scarborough, ON, M1B 5M4 www.chhma.ca

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Canadian Hardware & Housewares Manufacturers Association | 1335 Morningside Ave., Suite 101, Scarborough, ON M1B 5M4
Telephone: (416) 282-0022   Email: pwinter@chhma.ca