HBSD-0622

JUNE 2022 Volume 48 No. 6

Rising Retailers WATCH THESE STORES GROW. P 20

Make These YOUR Brands Orgill’s exclusive brands offer exceptional value and competitive features.

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Pick Your Profit: 10 Brands, Thousands of Items.

Lighting, Faucets, Bath & Home Fashion

Heaters, Fans, Cords & Electrical Locksets, Hardware & More

Hand Tools, PTA & More

Watering, Pruning & Lawn Care Products Christmas & Holidays Raingear & Footwear

Grills & Grilling Accessories

Housewares & Other Home Essentials Patio

06.22

HBSDEALER HARDWARE + BUILDING SUPPLY

INDEPENDENT PROFILE

16

Stanton’s celebrates 100 years with friends, family and faithful customers.

ORGILL REPORT

26

Embracing synergies in Germantown.

TOP WOMEN IN HARDWARE & BUILDING SUPPLY

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20

Kimberly DeJesso, New York Region pro sales manager for The Home Depot

COVER STORY:

20 Rising Retailers Northern Tool + Equipment, Floor & Decor, CNRG, Nation’s Best, Westlake Ace: Watch these stores grow.

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HERE’S WHAT’S ONLINE

NEWS & ANALYSIS

IN EVERY ISSUE

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10

10 14 33 34

Facebook, One-on-One videos, Inflation poll results.

FROM THE EDITOR

8

Smoot-Hawley, Ben Stein, the NRF and the case for free trade.

Home Depot talks home improvement today.

12

Made in the USA manufacturing keeps growth going.

12

Lowe’s opens Pro Fulfillment center.

Product Knowledge News Map People in the news Quikrete Industry Dashboard

Hardware + Building Supply Dealer (ISSN 2376-5852) is published monthly, except for July/August and November/December, which are double issues, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631. Subscription rate in the United States: $110 one year; $200 two year; $14 single issue copy; Canada and Mexico: $130 one year; $235 two year; $16 single issue copy; Foreign: $150 one year; $285 two year; $16 single issue copy; in all other countries (air mail only). Digital Subscription: $75 one year; $140 two year. Periodical postage paid at Chicago, IL., and additional mailing offices. POSTMASTER: Please send address changes to HBSD, Circulation Fulfillment Director, 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631. Copyright © 2022 by EnsembleIQ. All rights reserved.

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

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FastenMaster® is a division of OMG Inc., Copyright © 2022 OMG, Inc. All rights reserved.

Here's What's Online See more and share more when you follow us on Facebook.

The HBSDealer One-on-One Video Series HBSDealer editors are talking to some of the most interesting people in hardware and building supply.

Follow along at HBSDealer.com, and subscribe to Youtube.com/HBSDealer.

Bonus coverage: The People Edition, plus the Saturday Edition The Daily Newsletter drops Monday through Friday, but that’s not all. HBSDealer publishes the Saturday Edition every weekend, and a new People Edition tracks the comings, goings and achievements of the industry newsmakers. Subscribe at HBSDealer.com.

The votes continue to pile up Poll questions and poll results are a regular feature on HBSDealer’s daily e-newsletter, tackling a variety of topics, including this one:

Q

Which segment is most susceptible to the business pains of inflation?

3% 4%

Large prodealer

3% Large home center

Distributor

10% Small prodealer

46% All the same

14% Manufacturer

21% Small hardware store Source: HBSDealer poll question.

Connect with us @HBSDealer

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

Poll questions and results appear every week at HBSDealer.com.

HBSDealer.com

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HBSDEALER HARDWARE + BUILDING SUPPLY

From the Editor

Hardware + Building Supply Dealer An EnsembleIQ Publication 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631 hbsdealer.com HBSDealer On The Web • HBSDealer Info Services

Smoot-Hawley rides again!

SENIOR VICE PRESIDENT (HBSDealer, Drug Store News, Chain Store Age) John Kenlon, jkenlon@ensembleiq.com, 212-756-5238

Ken Clark Editor in Chief

B

efore he graced television screens as a mild-mannered political pundit with a conservative bent, and before he was a game show star (“Win Ben Stein’s Money”), Ben Stein was an actor whose high mark was his portrayal of a high school teacher in the film “Ferris Bueller’s Day Off.” In the movie, the teacher famously and annoyingly drones on about — Anyone? Anyone? — the Smoot-Hawley Tariff Act of 1930.

His lesson: Expanding tariffs on foreign imports “did not work, and the United States sank deeper into the Great Depression.”

Inspired perhaps by the civics lesson from Ferris Bueller’s fictional high school, the National Retail Federation in recent days entered a new phase of a “seven-figure” advocacy campaign to repeal tariffs.

Without getting into the use of the vague phrase “seven figures” for the vast gulf between $1 million and $10 milliion, it is the opinion of this editorial writer that the NRF is to be commended for this effort.

The campaign released a commercial/video, which is simple and straightforward. (But it's not nearly as entertaining as the easy-to-find scene from Ben Stein’s performance in “Ferris Bueller.”)

Additionally, here’s NRF President Matthew Shay’s message.

“We encourage the administration to work with our trading partners, particularly China, to roll back tariffs that contribute to the high cost of goods and services and provide much-needed relief for American consumers,” Shay said. “Tariffs are among the many costs out of retailers’ control that drive up prices paid by consumers. But unlike other costs, the administration can eliminate tariffs

EDITOR IN CHIEF Ken Clark kclark@ensembleiq.com, 212-756-5139 LBM EDITOR Andy Carlo acarlo@ensembleiq.com, 845-891-5108

with the stroke of a pen.

“While change takes time, repealing and lowering tariffs will help relieve pressure on American consumers,” Shay said. “We know this is only one of the solutions under consideration to rein in skyrocketing prices but we urge the administration to prioritize the repeal of tariffs.”

But what about the unfairness of foreign subsidies or price dumping on domestic markets? For that, we turn to the great free-trade philosopher Adam Smith, who pointed to the folly of inflationary tariffs: “… It seems a bad method of compensating the injury done to certain classes of our people, to do another injury ourselves, not only to those classes, but to almost all the other classes of them," Smith wrote.

[Note to protectionist readers: You’re right, that’s not the entire passage, but it’s a good introduction to the wisdom of Smith's “Wealth of Nations.”]

The NRF’s grassroots movement, “Lower Inflation Now," has a lot more to it. The group is calling on the Biden Administration to also pass the Ocean Shipping Reform Act to ease the supply chain crisis; to enact immigration reform to address the labor shortage; and to foster competion that will lower payment transaction costs.

That’s quite a cast of initiatives.

Will they work? Anyone? Anyone?

Share with us your thoughts at news@hbsdealer.com.

HARDWARE EDITOR Tim Burke tburke@ensembleiq.com, 773-216-7880 ADVERTISING SALES

Midwest & Southeastern States ASSOCIATE PUBLISHER Amy Platter Grant agrant@ensembleiq.com, 773-294-8598 Northeast and Great Lakes States REGIONAL MANAGER Greg Cole gcole@ensembleiq.com, 317-775-2206 AUDIENCE

LIST RENTAL MeritDirect Marie Briganti 914-309-3378 SUBSCRIBER SERVICES/CUSTOMER CARE TOLL-FREE: 1-877-687-7321 FAX: 1-888-520-3608 contact@hbsdealer.com PRODUCTION/ART

DIRECTOR OF PRODUCTION Michael Kimpton mkimpton@ensembleiq.com, 647-557-5075 CREATIVE DIRECTOR Colette Magliaro cmagliaro@ensembleiq.com ART DIRECTOR Bill Antkowiak bantkowiak@ensembleiq.com TOP WOMEN IN HARDWARE & BUILDING SUPPLY NOV. 8-9 2022, CHICAGO, ILL. WWW.HBSDTOPWOMEN.COM/2022 CONTACT: AMY PLATTER GRANT agrant@ensembleiq.com, ASSOCIATE PUBLISHER EDITORIAL ADVISORY BOARD Levi Smith, CEO, Franklin Building Supply Cally Fromme, VP of communication and culture, Kodiak Building Partners Steve Sallah, CEO, LBM Advantage Wendy Whiteash, EVP of culture, US LBM Holdings Tom Cost, owner, Killingworth True Value Brad McDaniel, owner, McDaniel’s Do it Center Joe Kallen, CEO, Busy Beaver Building Centers Permissions: No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. For reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295.

CORPORATE OFFICERS CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF HUMAN RESOURCES OFFICER Ann Jadown EXECUTIVE VICE PRESIDENT, CONTENT Joe Territo EXECUTIVE VICE PRESIDENT, OPERATIONS Derek Estey

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

SAVE THE DATE!

November 8-9, 2022 Fairmont Hotel, Chicago CHECK OUT OUR 2022 AGENDA TUESDAY, 11/8 4:00pm: Afternoon Tea: Mix, Mingle & Mentorship 5:30pm: Welcome Cocktail Reception 7:00pm: Dinner 7:30pm: Awards Ceremony WEDNESDAY, 11/9 7:30am: Breakfast 8:00am: Keynote Speaker 9:00am: SWOT Panel 9:45am: NextUp with Sarah Alter 10:45am: Allies & Advancement Panel 11:30am: Rising Stars Panel

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News + Analysis

What headwinds? Depot raises guidance Should orange-vested executives be worried? Are people warming to the idea of spending on vacations, movies, clothes, cars —anything other than the home after a pandemic-induced national spree of indoor and outdoor projects? What about inflationary pressures, rising interest rates and home improvement fatigue?

Product Knowledge Product: V20 Soldering Iron

—Richard McPhail,

Manufacturer: Craftsman

CFO, EVP, Home Depot

Knowledge: Expanding the Craftsman V20 battery platform family, the Soldering Iron is part of launch for makers and hobbyists. Designed with an adjustable temperature dial to easily select between 400-degrees to 900-degrees, the tool is deal for woodburning, intricate electrical projects, jewelry and stain glass crafting. The tool includes a 4-foot cord for mobility and a sponge holder on the base (sponge included). Tool only MSRP is $49.99.

That was a question, in so many words, brought to Home Depot by analysts at the company’s Q1 earnings call.

Richard McPhail, CFO and executive vice president, gave perhaps the most detailed response, describing the health of the company’s customer as “strong.”

Adding to the optimism, McPhail explained that the company’s customers are essentially homeowners. Sales to pro customers are almost always on behalf of a homeowner, and 90 percent of DIY customers are homeowners, too.

“Over our history, we’ve seen that home price appreciation is the primary driver of home improvement demand,” he said. “When your home appreciates in value, you view it as a smart investment and you spend more on it.”

Home appreciation has risen more than 30 percent over the last two years, he said, and home equity values have increased by 40 percent over that same period.

“In surveys, our customers tell us that their homes have never been more important, and their intent to do projects of all sizes has never been higher,” McPhail said. “And our pros say the same thing about their backlogs.”

What about interest rates?

Fun fact: A research firm estimated the global “Arts and Crafts” market is projected to reach $59.5 billion by 2027, growing at a CAGR of 5.6 percent from 2021.

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“Over our history, we’ve seen that home price appreciation is the primary driver of home improvement demand. When your home appreciates in value, you view it as a smart investment and you spend more on it.”

June 2022 HARDWARE + BUILDING SUPPLY DEALER

McPhail again did the math: Of 130 million housing units in the United States, only about 4 to 5 percent are sold in a typical year.

“That means that over 95% of our customers are staying in place,” he said. “They’re not shopping for a mortgage. Nearly 40% of those homes are owned outright. Of those who have mortgages, about 93% of those mortgages are fixed rate. So when you think about our addressable market, the vast majority aren’t really paying attention to mortgage rates.”

Moreover, he said, for those home homeowners who may be considering a move, high interest rates might encourage them to remain in a low-interest loan and remodel their existing home.

The company backed up its optimism by raising its guidance for sales growth (to 3.0 percent) and operating margin (to 15.4 percent), among other factors.

“While a number of uncertainties remain, we feel confident that we will be able to continue to manage through a dynamic environment while growing faster than our market and delivering exceptional shareholder value,” McPhail said.

HBSDealer.com

We designed every inch of our innovative SpeedGrip™ Tongue & Groove Pliers for the trades men and women who keep our country running. Made in the USA from high carbon U.S. Steel, with a push button to make fast and easy non-slip adjustments and laserhardened crosshatch teeth that grip stronger and last longer.

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News + Analysis

Advances for the Made-in-USA movement Last month, an HBSDealer poll found 52 percent of reader respondents described U.S. manufacturing as “growing slowly,” compared to only 6 percent who described it as “declining” Since then, at least two big brands have checked the box for factory growth in the U.S.

“We are dedicated to continuing to expand our capabilities and equipment product lines to empower our customers, and this new location will be an important part of this success.”

—Mike Ballweber, president, Doosan Bobcat North America

Bobcat Company, a maker of compact equipment, announced plans for a new assembly plant in Rogers, Minnesota, northwest of Minneapolis. The 225,000 sq. ft. plant should be fully operational by the fourth quarter, with more than 100 new full time positions.

“We are dedicated to continuing to expand our capabilities and equipment product lines to empower our customers, and this new location will be an important

STAT OF THE MONTH

E-Commerce will account for 30.5 percent of total retail sales by 2026, up from 24.6 percent in 2021.

Source: Edge by Ascential’s 2022 United States Retail Landscape report

12

A Bobcat compact tractor.

part of this success,” said Mike Ballweber, president of Doosan Bobcat North America.

Meanwhile Milwaukee Tool continues to

ramp up its manufacturing efforts in the United States. The company started construction of its newest facility in Grenada County, Miss. to accommodate its power tool and accessories business. It will also serve as a centralized repair facility.

More than 800 new jobs will be created with the facility set to open in mid-2023.

“We’re thrilled to, once again, expand our footprint in the state of Mississippi, where we’ve been able to recruit some of the best talent in the country,” said Steve Richman, Milwaukee Tool group president.

Milwaukee Tool said that it is investing more than $60 million into advanced technology and manufacturing equipment at the 563,000-square-foot location.

Lowe’s opens first Pro Fulfillment center Lowe’s professional customers stand to gain from the opening of the retailer’s first Pro Fulfillment Center.

Dedicated to serving pro customers and contractors, the 200,000-squarefoot Pro Fulfillment Center, located in Charlotte, N.C., began serving pros in the market in early May, offering area pros next-day delivery of the products they use the most in “quantities they need to succeed.”

According to Lowe’s, the center allows pros to stay on the job uninterrupted for periods of time with deliveries directly to the jobsite.

The center stocks more than 1,000 products that are considered critical for pros including lumber, building materials, roofing, shingles, drywall, windows and doors, and larger, bulk items.

Part of the center’s strategy is freeing up store deliveries while allowing pro associates to focus on professional customers.

Lowe’s said the center is a key next step in Lowe’s “Total Home” strategy

June 2022 HARDWARE + BUILDING SUPPLY DEALER

Lowe’s says pros are relyinig more heavily on suppliers and retailers.

designed to serve and attract Pro customers who shop at a higher frequency and value speed and convenience.

The Pro Fulfillment Center arrives at a time when 76% of pros said they rely on their suppliers and retailers more than before, according to Lowe’s State of the Pro report released earlier this year.

Built to be a modern, zero-emission facility with features such as battery-powered forklifts, the facility has about 40 employees.

HBSDealer.com

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News Map: Openings, Closings & Acquisitions Illustration of retailers and dealers in various stages of coming and going. For more retail news, visit HBSDealer.com.

OPENING

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CLOSING

ACQUISITION

ARIZONA

WISCONSIN

NEW YORK

Tombstone

Kenosha

Eastchester

Husband-and-wife owners Jared and Sarah Redding learned the business from the ground up at Ace Hardware stores in Phoenix and Tempe. They opened the new 2,000 sq. ft. business this spring in a space once used as a high school cafeteria.

JC Licht Ace’s grand opening event this spring raised $2,000 for the Wisconsin Children’s Hospital. The store was formerly Parkside True Value, which was acquired by the Illinois-based paint and hardware retailer JC Licht in 2021.

John Fix III, Mary Beth (Fix) Wellington, and Thomas Fix, the third-generation owners and operators of Cornell’s Hardware are selling the business to The Aubuchon Company — becoming Aubuchon’s 108th location.

TENNESSEE

TEXAS

SOUTH CAROLINA

Clarksville

Spicewood

Georgetown County

Ambassador Supply acquired Orgain Building Supply, which has served the Nashville area for a century. Ambassador, based in Fort Wayne, Ind., is a member of the Do it Best Corp. co-op.

McCoy’s Building Supply has opened its newest location in Spicewood, Texas. The new store— McCoy’s 90th— features 15,000 square feet of inside retail space and a paved, drive-thru lumberyard.

The Building Center, Inc. has acquired a 130,000 square-foot facility on 72 acres in Georgetown County, S.C. The plant will serve as a manufacturing facility, and lumber and distribution center for builders in North and South Carolina.

June 2022 HARDWARE + BUILDING SUPPLY DEALER

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Independent Profile George Stanton was also praised for having one of the finest Hereford cattle herds in Texas, said the firm; he won the prestigious title of “Grand Champion Carload of Steers” at The Houston Fat Stock Show twice, in 1934 and 1947.

Keeping the tradition alive, George’s son Warren worked on the family ranch from 1945–1956, showing cattle and winning many championships around the country before joining his father in running the store. The family featured cuts from their own herd in the grocery store, a tradition that has continued through the generations.

Today, Stanton’s Shopping Center consists of three branches run by three brothers: Neal, who started in 1985, operates the feed store; Paul, who started in 1986, manages the hardware store; and Allen, who started in 1983, oversees the grocery store and meat market.

The next generation of the Stanton family has expressed interest in continuing the legacy.

“I think my great-grandfather, grandfather, and father would all be proud of where we are now, but we know it wouldn’t be possible without the support of the Alvin community,” said Paul Stanton.

“We’re grateful for their loyalty over the years and we look forward to another hundred years of service.”

Stanton’s Shopping Center celebrates 100 years recently with their extended family, friends and the local community of Alvin, Texas.

Stanton’s reunion for the ages E X TENDED FAMILY AND FAITHFUL CUSTOMERS SHARE IN A CENTURY OF SUCCESS. By Tim Burke

T

ake a family reunion, bring in the mayor and a bluegrass band, sprinkle in some giveaways from Channellock and Rust-Oleum, and you have the makings of a one-of-a-kind 100-year celebration.

That was the story last month at Stanton’s Shopping Center, a Do it Best member owner, in Alvin, Texas, just south of Houston.

“It has been our family’s privilege to serve this community for the past 100 years,” said owner Paul Stanton. “It was wonderful to see our extended family and our faithful customers mingling and celebrating Stanton’s amazing heritage together.”

The event was held in conjunction with a Stanton family reunion, which drew more than 200 members of the Stanton family. Festivities kicked off at 11 a.m. with a bluegrass band performing live in the Stanton’s parking lot.

Throughout the 100 th anniversary celebration, select shoppers received giveaways from vendors including Channellock and Rust-Oleum, and a tool kit from Milwaukee was raffled off. Sausage rolls and catered fare rounded out the day’s offerings.

The family business was established in 1922 by E. J. Stanton and his son, George, who together sold coal and wood. George Stanton soon added a 2,000 square foot expansion to stock animal feed for local farmers. (As part of the celebration, Stanton Meats also “turned back the clock on inflation” by offering their 30-pound freezer value meat package for $60 for a limited time.)

In the first half of the 20th century, the retailer’s building and its services expanded time after time, growing to include grocery sales, then hardware.

George Stanton was called the “Merchant Prince of Brazoria County” and admired for his “six big stores in one.”

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

Stanton’s Shopping Center’s three owners, from left, brothers Allen, Neal and Paul Stanton, holding photos of their father, grandfather and great-grandfather, celebrate 100 years of service with their community.

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We look forward to serving you in 2022 and beyond.

THE FIRST STAIN

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COVER F E ATURE

RISING RETAILERS

NORTHERN TOOL + EQUIPMENT SEES ROOM TO RUN

With 125 stores in 23 states, Northern Tool + Equipment has a big opportunity for expansion, says CEO Suresh Krishna.

while expanding into new markets.

An edge that Northern Tool + Equipment brings to the work bench is its manufacturTHE MINNESOTA RE TAILER THAT MAKES MANY ing capabilities in addition to its vast product OF ITS OWN TOOLS HAS AMBITIOUS PL ANS selection across more than 60 categories. The TO BUILD MORE STORES. By Andy Carlo company’s NorthStar private label brand of tools and equipment is designed and built in Faribault, Minn. Offerings from NorthStar inorthern Tool + Equipment has built its retail clude pressure washers, generators, log splitters, reputation on three pillars: a deep assortment air compressors, and much more. of quality tools, a fully functioning parts and Pros account for roughly 40% of total sales, service department, and store associates with with the balance being serious DIYers. The repractical, real-world expertise. tailer’s pro customers include everything from a On that foundation, the company serves professional cusone-man operation — such as a handyman — to tomers and DIYers through a fleet of 125 stores across 22 multi-million-dollar commercial companies includstates. And today, the company sees an opportunity to more ing landscapers, automotive repair shops, contracthan double its store count over the next 10 years. tors and light manufacturers, electrical and HVAC “Northern Tool sees tremendous value in growing our reinstallers and more. tail footprint and is excited to add new stores in many new “There aren’t many “We have a saying communities over the next decade,” CEO Suresh Krishna retailers who carry the that Northern Tool was says. “While other companies have pulled back from openbroad and unique assort‘omnichannel’ before ing new stores, we have doubled down by demonstrating ment of tools and equipthat we are a big believer in brick-and-mortar, with plans to ment that we carry, plus that term even existed, have over 300 stores by the next decade.” we are one of a very few through our unique Located in both the Midwest and the Southeast, who also manufacture mix of retail locations Northern Tool + Equipment’s offerings include more our own tools,” Krishna than 100,000 tools and a broad range of equipand mail order catalogs notes. “So, we’re in a ment. The retail’s in-store experience unique position to take that date back to our allows it to showcase customer-cendirect customer feedback company’s inception.” tric values to the pros in the skilled and turn it into highly —Suresh Krishna, trades and serious DIYers, offering an productive tools.”

CEO, Northern Tool + Equipment “excellent retail experience,” Krishna Beyond NorthStar, told HBSDealer. house brands include The retailer opened its 120th store Ironton, Klutch, Powerhorse, and Ultra Tow. Nain Humble, Texas in 2021 tional brands are also carried such as Milwaukee, with five new locations Stihl, Honda and Lincoln Electric Welders. added since.

Northern Tool is also heavily wired for e-commerce.

Part of the accelerat“We have a saying that Northern Tool was ing growth plan calls ‘omnichannel’ before that term even existed, for the company to through our unique mix of retail locations and build up its presence mail order catalogs that date back to our comin key legacy markets pany’s inception,” Krishna says.

N

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

Northern Tool + Equipment’s Top 10 online sales categories: When online sales became an option in the 1990s, Northern Tool quickly embraced e-commerce.

“We excel at making our online experience reflect the expertise and helpful project know-how our customers find in our stores: organized so it’s easy to shop and highly informative with suggestions for accessories so customers can get the right tools for their projects – no matter how unique or challenging they may be,” Krishna says.

Regarding the in-store experience, store associates bring strong knowledge and experience to Northern Tool stores while being trained to properly support each customers’ unique question or need.

“This means we can be an expert resource spanning across several skilled trades professionals such as landscapers, automotive mechanics, contractors and light manufacturers, electrical and HVAC installers, welders/metal fabricators and more,” says Krishna.

Additionally, all 125 stores include a small engine repair shop and parts department. This service was taken to new heights after Northern Tool acquired Jacks Small Engines in April 2021.

Another strategy implemented by Northern Tool is creating easier and speedier access to its unique assortment of products by establishing stores as micro distribution centers. This enables added and faster reach to regions outside its current retail spaces.

The CEO says innovation will continue. “Don Kotula started the company by creating a first-of-its-kind log splitter,” Krishna says. “That innovative engine still drives us today, and we are constantly working to conceptualize and build products that our customers want.”

Krishna grew up in Jamshedpur, a blue-collar town in the eastern part of India. He began his education in a Jesuit school and obtained a mechanical engineering degree. Initially, Krishna’s career was in the automotive industry for two decades. The top executive worked in India, the Middle East, Europe, and eventually the United States.

Prior to becoming CEO of Northern Tool + Equipment, Krishna served on the company’s advisory board 2014-2019.

Part of Northern Tool + Equipment's formula for success is the company's in-house manufacturing capabilities and private-label brands.

HBSDealer.com

Power Tools

Pumps

Generators

Air compressors

Heaters

Logging

Material Handling

Welders

Pressure Washers

Lifts and Jacks

He also held senior executive positions at Polaris Industries and Sleep Number.

In late 2019, Northern Tool was looking for a new CEO. The search committee that was composed of the second-generation owners, Ryan Kotula and Wade Kotula, and some board members asked me if I would be interested in the role.

“After much consideration, I decided I couldn’t pass up an opportunity to lead and help build a company that they could pass on to their family’s next generation,” Krishna says.

Today, Krishna along with Northern Tool + Equipment, have their sites set on assisting skilled trades gap. “Our company has been supporting pros and the professional trades for over 40 years, so we clearly recognize the significance of this issue,” he says.

The business has elevated its commitment to supporting future skilled trades professionals through its Tool for the Trades program along with the Texas High School Welding Series. Tools for the Trades partners with high school career and technical education programs by donating much needed tools and equipment to provide instructors with the right tools they need to teach the classes. It also allows students the opportunity to work with professional-grade tools. Through its leadership in the Texas High School Welding Series, Northern Tool partner with other Texas companies to host welding events where students can earn their welding certifications.

“These programs are the on-ramp to encouraging and empowering students to pursue a career in the trades. We are dedicated to ensuring students have that opportunity and are supported every step of the way to entering a professional trade,” Krishna says.

Northern Tool + Equipment remains a family-owned company with a rich tradition dating back more than 40 years.

“Our founder, Don Kotula, got his start in the Iron Range of Minnesota on his family’s scrap yard. That hard-working, blue-collar mentality and ‘get it done’ spirit has reverberated across the company over the decades to propel our growth,” Krishna explains. “The growth from our first store in Burnsville, Minn., to 125 stores today demonstrates the company’s hustle and underdog fight, and we’ve got plenty of runway to build on what we’ve accomplished.”

HARDWARE + BUILDING SUPPLY DEALER June 2022

21

COVER F E ATURE

RISING RETAILERS

PUTTING THE PEDAL TO THE FLOOR FLOOR & DECOR R APIDLY GROWS ITS STORE COUNT WHILE PULLING IN BIG SALES. By Andy Carlo

F

loor & Decor has kept its word when it comes to store openings in 2022 and beyond.

The company raced past its 150-store milestone last year with a new location South Austin, Texas.

And in the past two months, the home improvement and specialty flooring retailer has opened new warehouse-format stores in California, Georgia, Louisiana, Illinois, Maryland, North Carolina and Ohio.

With this latest surge of store openings, Floor & Decor now operates more than 170 stores and 5 design centers in 34 states.

The rapidly-expanding retailer has set sights on opening 9 stores in the second quarter of 2022 and many as 32 locations in total this year. Long-term projections call for the Atlanta, Ga.-based retailer to open up to 500 new locations over the next 8 to 10 years.

Sales at Floor & Decor have been better than solid. It reported that its first quarter 2022 sales jumped nearly 32 percent to $1.03 billion from sales of $782.5 million in the prior first quarter while comparable store sales increased 14.3 percent for the period. Looking back at its 2021 fullyear performance, Floor & Decor sales jumped 41.5 percent to $3.43 billion from sales of $2.43 billion in 2020.

“We just completed our most successful year on record in 2021, and we are incredibly proud of what we have

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

achieved over the last decade, but we still believe our best days are yet in the future,” Tom Taylor, CEO of Floor & Decor said earlier this year.

Taylor, who achieved retail distinction as being the youngest person (at the age of 22) to manage a Home Depot location, was a fast-rising executive at the home improvement giant. He worked his way up through various manager, district manager, vice president, president, and senior vice president roles to eventually serve as the Executive Vice President of Operations with responsibility for all 2,200 Home Depot stores and then the Executive Vice President of Merchandising and Marketing.

Taylor joined Floor & Decor in December 2012 as CEO and board member.

When taking into account the rapid expansion and strong sales growth at Floor & Decor, strategies implemented by the retailer have been paying off royally.

For example, as many parts of the industry faced supply chain challenges, Floor & Decor managed to avoid that hurdle. According to Chief Financial Officer Trevor Lang, the company made

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Three companies built for growth

The sky’s the limit for Floor & Decor, seen here in Elizabeth, N.J.

the decision to increase its in-stock inventory for six quarters in a row.

The move paid off with inventory always be available for sales. And with so many new store openings, any excess inventory can be shared with another location.

“Our stock levels have been a competitive advantage during pandemic and beyond,” Lang said during a presentation in June at the Baird 2022 Global Consumer, Technology & Services Conference. “We feel comfortable with where we are at this point and in better shape than we’ve been in the last 18 months.”

Another advantage Floor & Decor has, according to Lang, is its seasonal adjustments. Although the retailer keeps up with trends and changes in flooring, it’s not having to completely overhaul its inventory selection seasonally or quarterly.

Pros are also a big part of the equation. Each location has a dedicated pro services desk along with sales personnel focused on bringing in more dollars from contractor sales.

Floor & Decor is targeting commercial sales as well, including architects, design firms, and hotels, with sales staff dedicated to big projects.

Each store’s design center provides another boost to sales.

“That’s driving our ticket as we have the ability to upsell the whole project,” Lang says.

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They are active. They are ambitious. And they are acquisitive. They are a relatively new breed of retail companies —often called consolidators, with varying degrees of accuracy — and they are making deals with hardware stores and lumberyards while making headlines in industry trade publications.

With a tight connection to a distribution company, Westlake Ace Hardware; Central Network Retail Group and Nation’s Best Holdings are designed in part, to keep the wholesale sales strong for, respectively, Oak Brook, Ill.-based Ace Hardware; Memphis-based Orgill and Fort Wayne, Ind.-based Do it Best Corp.

Of course, they’re stores are built mainly to serve customers through high-quality retailing.

Here’s the latest from the trio:

Central Network Retailing Group

Now with 141 stores flying 18 retail banners, CNRG (rhymes with “synergy”) got its start in 2011, and his picked up at least one new brand every year since.

Its most recent acquisition is HomeFront Home Improvement Centers in Greenwood and Winona, Miss. The brand will be consolidated with CNRG’s Home Hardware Center brand.

“CNRG continues to look for growth opportunities, both in new markets and, as is the case here, where we can add stores complementary to our existing brands. We are very optimistic about the long-term prospects for this partnership with HomeFront,” said John Sieggreen, CNRG president. “Home Hardware Center is our oldest and one of our top-performing brands and we look forward to bringing the experience and dedication of our HHC team to these new stores.” (See more on CNRG on page 26.)

Nation’s Best Holdings

Formed in 2019, Dallas-based Nation’s Best Holdings is one of the new players in the home improvement landscape, and the company has wasted little time expanding its ranks. The portfolio includes 16 banners, from BTU Do it Center to Woodland Building Center.

It’s most recent move, the acquisition of Calaveras Lumber and Sonora Lumber in central California, expands the network to 10 states and 35 locations.

As part of the strategy established by Nation’s Best, Calaveras Lumber and Sonora Lumber will maintain operations under their existing names with its key leadership team overseeing company operations alongside Nation’s Best.

The two California brands “are well-run building material and hardware stores that are positioned for growth as they serve their communities,” said Chris Miller, CEO of Nation’s Best.

Westlake Ace

Along with Great Lakes Ace Hardware, Westlake Ace forms the Ace Retail Holdings division of Ace Hardware Corp. The brands together operate 210 stores – of those, Westlake owns and operates 151 stores in 12 states.

In May, Westlake Ace Hardware signed a lease agreement to open a new store in Porter Ranch (San Fernando Valley), California. Westlake Ace currently owns and operates 12 locations throughout California.

“We are thrilled to open a store in Porter Ranch and show our new customers and neighbors how we live the Ace Helpful Promise every day through reliable service, helpful advice, and the products they need to get their projects done right,” said Joe Jeffries, president and CEO of Westlake Ace. The California move followed the addition of two more stores in the Carolinas, news that was announced in April. Westlake has been part of the Ace Hardware Cooperative since 1959 and a wholly owned Ace subsidiary since 2012.

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Orgill Report

Above: Ribbon cutting in Germantown. That’s John Sieggreen with the scissors.

Right: At Orgill’s dealer market in Orlando, a replica Town & Country store was staffed by actual Town & Country employees.

Building on Retail WITH THE GERMANTOWN PROJECT, ORGILL STEPS UP THE SYNERGIES

T

he grand reopening of Germantown Hardware, in the shadow (almost) of Collierville, Tenn.-based Orgill’s headquarters, marked a big step forward for the community just outside of Memphis.

The store added 50 percent more sales floor and 12,000 more products.

Customer reactions when touring the newly remodeled store included appreciation for the expanded product and category selection—along with astonishment that this was the same neighborhood store they had shopped previously.

But the story expands outside of Germantown, and well beyond the borders of Tennessee, as the idea of building business on retail synergies is playing out across Orgill nation.

The grand reopening not only marked a milestone for the growth of the store, but it was also the culmination of a major retail enhancement project for Orgill, Central Network Retail Group (CNRG) and Tyndale Advisors, a management, consulting and marketing firm that primarily serves Orgill dealers.

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

“We had always thought that it would be ideal to have a CNRG location in the Memphis area, and Germantown Hardware offered us this opportunity,” says John Sieggreen, CNRG president and executive vice president of retail at Orgill. “The store had a great reputation with local customers and was a staple of the local community and being in close proximity to Orgill’s headquarters and our concept center, it allows us much better access to the site. This also makes it easier for us to use it as a showcase for when we want to illustrate our range of programs and services to visitors.”

It’s not the first time Orgill has trumpeted the synergies with its CNRG division stores. (CNRG is a wholly owned subsidiary of Orgill.)

That mission was on display at the latest Orgill Dealer Market in Orlando earlier this year, with Town & Country Hardware of North Carolina played a starring role.

Orgill and CNRG executives took a deep dive

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into the development and growth of the brand, which was one of the first retailers to join CNRG, and has shown more than a decade of sustained growth. In addition to the executive presentation — shared live and via livestream — the show floor also featured a replica Town & Country store, staffed by actual Town & Country employees.

Back in Tennessee, the relaunch of Germantown Hardware is described as a more permanent example of a showplace and model store, as well as a very real experiment in high-level retailing.

“Everyone could easily visit and lend their expertise on how to mold it into this model of what a community hardware store could be,” said Phillip Walker, president of Tyndale Advisors. “It’s a great representation of what both Tyndale Advisors and Orgill have to offer to our customer base. When customers or prospects come to Orgill, we can now take them to a local store and show them our retail recommendations in action.”

Located within miles of Orgill’s headquarters, the store presented an opportunity to bring all of Orgill and Tyndale Advisors’ resources and people together on one project.

“This store is proof that we’re not just suggesting these changes,” Walker added. “We are putting them into action in a real-world retail environment because they work.”

CNRG says it has made the most of programs offered through Orgill when revamping the store’s retail technology. Orgill services that were integrated into the relaunch of Germantown Hardware include its Integrated eCommerce, FanBuilder and BrandBase programs.

The Germantown Hardware store website was reconfigured using Orgill’s Integrated eCommerce solution, which integrates with the store’s POS system and offers real-time item information, store prices and on-hand quantities. The technology made it possible for Germantown Hardware to offer customers options to buy online and pick up in store and expand the number of products the store could offer by utilizing Orgill’s online product database.

Germantown Hardware also uses a customized version of Orgill’s FanBuilder platform to drive its new customer loyalty program, Germantown Hardware Rewards. Described as “more than just a loyalty program,” the platform offers mar-

Patio furniture stakes out a relaxed area in the Germantown store’s 42,000 sq. ft. of selling space.

Before and after at Germantown Hardware John, Marcia, and Justin Wagner, the former owners and operators of Germantown Hardware, agreed to sell their business and operating assets in 2020 to Central Network Retail Group, LLC (CNRG), a wholly-owned subsidiary of Orgill and a multi-format, multi-brand retailer currently operating 140 hardware stores, home centers and lumberyards in 16 states.

The Wagners had purchased the former Ace Hardware location in 2001. Under their ownership, Germantown Hardware offered a full assortment of hardware, plumbing, electrical, outdoor power equipment and outdoor living products and lawn and garden supplies. It also featured a small engine repair shop.

After CNRG acquired Germantown Hardware, the store underwent a remodel and expansion project overseen by team members of Orgill, CNRG and Tyndale Advisors that began in April 2021. The store’s footprint was expanded to almost 42,000 square feet, which is 75% larger than before the remodel.

Germantown Hardware’s sales floor size also increased by more than 50% to 23,000 square feet, and 12,000 new products were added to the store’s offerings.

Two departments, the nursery and small engine repair shop, both doubled in size. The nursery now takes up 10,000 square feet with an outdoor checkout area added for better customer ease of service.

The investment in the store remodel and expansion was not only an investment in Germantown Hardware, but also in the community.

“There’s so much to be said about the welcome arms from the community,” says Chris Clark, Germantown Hardware store manager.

“We want Germantown Hardware to continue to feel and look like their neighborhood store—just new and improved.”

keting tools and helps to drive customer engagement and traffic to the store’s website.

Orgill’s proprietary BrandBase marketing software is also used for producing Germantown Hardware ads and marketing assets.

“This is a perfect example of how our CNRG brand stores can serve as a living retail laboratory where we can implement real-world Orgill programs and then provide in-depth feedback and test options with them to help improve the program for all Orgill’s customers,” Sieggreen said. “That will definitely be the case with what we are doing at Germantown Hardware.”

HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER June 2022

27

Products

Domestic Bliss in the aisles THE MADE IN USA MOVEMENT MADE A SPL ASH IN L AS VEGAS.

T

he National Hardware Show’s 2022 event returned to Las Vegas and returned to a recurring theme of growing importance to home owners and retailers who sell to them: “Made in USA.” Cheering on the movement was Kevin O’Connor, host of the long-running television series “This Old House.” He took to the stage to showcase his picks for honoring Made in USA products at NHS 2022.

Attention-catching examples of just some of those Made in USA products included wood pellet patio heaters from Timber Stoves; Rescue! pest control solutions including a brand-new fly trap from Sterling International; and Southwestern New Mexico ranch-raised elk and buffalo jerky from Pearson Ranch Jerky.

The products gathered on these pages represent a small slice of Made in USA innovation. There’s more where that came from.

Rapid Repair Pod The Rapid Repair Pod Sun & Shade Lawn Spot repair pods are the easy buttons for bare spot repairs in any lawn. These single serving pods expand with water in seconds to fill in damaged areas. No tools needed! Just drop these easy-touse pods on the spot, water to expand and continue to keep moist. Results sprout in 7-10 days. Amturf.com

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

Kent Nutrition Home Fresh Home Fresh products are made from fresh, premium-quality ingredients in a fixed component formula based on research-driven nutrition to provide a consistent, balanced, easy-tofeed diet in every bag. The company offers a complete line of feeds to meet animals’ specific needs at each life stage. blueseal.com

Naturulz CBD Ugli Butter day or night (Shown here is night.)

Ugli Butter (night) is a nighttime product that is designed to help you unwind from your day by reducing anxiety, tension, fatigue and stress, both physical and mental, so you can relax, release, get restful sleep and restore.

Ugli Butter night is a full spectrum, hemp-based remedy, carried in coconut oil, that provides relief where your body needs it most. Naturulz.com

The Rotoshovel Described as the world’s first automatic handheld shovel with an auger, the product is ideal for homeowners, DIY gardeners and professionals. In addition to speed (claims of 3x faster holes), the 5 lb. shovel includes a safety shutoff that automatically stops the motor when the digger hits a rock or a root. Rotoshovel.com

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Pearson Ranch Jerky Since 1959, family-owned Pearson Ranch has raised elk, buffalo and cattle in the southwestern mountains of New Mexico. The exotic based meat snacks are made of only natural ingredients, contain no added nitrites, have no MSG, are gluten free, and come conveniently packaged to compliment even the most active lifestyles.

Pearsonranchjerky.com

The Caulking Finger This made-in-Dothan, Alabama product asks the question: Why get your finger messy, when you can use this patent-pending anatomical substitute? The packaging makes the case for a smooth, professional finish and tool that will save fingers not only from sticky messes, but from “splinters and soreness.”

Thecaulkingfinger.com Root Quencher As the name suggests, this Made in USA product gets down below the surface of the earth to efficiently quench the thirst of plant roots.

Dig a hole, connect to a water source and the gardener will save water while improving the health (and productivity) of plants and trees.

Rootquencher.com

Rescue!

Fly Trap MAX The largest fly trap in the Rescue! lineup will begin shipping to retailers, co-ops and distributors Nov. 1. From Spokane, Wash.-based Sterling International, the big-bodied Fly Trap Max lures flies with a safe attractant that drowns the pests, en masse.

Rescue.com Timber Griddle Hand-made in Oregon, the Timber Griddle from Wood Pellet Products is a combination heater and outdoor stove top. More than 400 sq. inches of cooking area over a heater provide wood fire ambiance for maximum outdoor enjoyment.

Woodpellet products.com

HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER June 2022

29

Market Insights

Biden addresses housing affordability A HOUSING SUPPLY ACTION PL AN TARGE TS THE THRE AT OF HIGH COSTS

T

he Biden administration has released the “Housing Supply Action Plan” to ease high housing costs by increasing the supply of quality housing throughout the nation over the next five years.

The White House’s plan includes steps that the administration can take through the federal agencies to help address a host of affordability challenges and improve financing options, as well as legislative proposals that must be enacted by Congress.

The National Association of Home

Builders said it supports the plan and has warned that housing affordability is threatening to “derail” the industry.

“We commend the White House for joining the fight to put the issue of housing affordability in the forefront of the national economic agenda after NAHB had been urging the administration to move on this vital national concern for the past several months,” said NAHB Chairman Jerry Konter.

As interest rates and construction costs have increased, the housing market is showing significant signs of weakening, increasing the recession risk for the overall economy.

Increasing the nation’s supply of affordable housing will help to combat the inflation crisis and keep the economy moving forward, the NAHB said.

Builders across the country have faced a 35% increase in the price of lumber and other building materials since the start of the pandemic.

The NAHB has been urging the White House to act on the common-sense

Expensive load: The housing affordability crisis has the attention of the White House.

solutions that address the current lumber crisis. This includes ending tariffs on Canadian lumber shipments into the United States that are exacerbating unprecedented lumber price volatility.

Other solutions the NAHB has offered include increasing the domestic supply of timber from federal lands in an environmentally responsible manner and calling on domestic sawmills to boost output.

In a statement issued by the agency, the NAHB said will continue to work with the administration to resolve supply chain disruptions for building materials, which must be addressed immediately.

The administration acknowledged that

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

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NLBMDA invites you to invite your representative long-term headwinds, like supply chain bottlenecks and chronic construction labor shortages, have been repeatedly identified by NAHB members as holding back housing production.

Though the plan also properly identifies that state and local governments must address the policies and regulations that prohibit housing, NAHB is calling on the administration to acknowledge the need to reform federal regulations that raise the cost of producing single-family and multifamily housing.

The NAHB also said that it agrees with the White House that the key to resolving our nation’s housing affordability challenges is to build more homes.

The home building industry said that it is willing help solve the affordability crisis that will enable builders to construct more affordable entry-level housing, raise first-time, first-generation, and minority homeownership rates, provide quality rental housing, and shore up the national economy.

HBSDealer.com

The National Lumber and Building Material Dealers Association (NLBMDA) is reminding its membership that scheduling yard tours with members of Congress can be a vital grassroots tool.

Here’s what the NLBMDA has to say about the subject: “As the calendar turns to the summer months, NLBMDA encourages members to reach out to their elected officials in Congress and invite them to visit your lumber yard. Summer is often the best time of year for face-to-face interaction with your Members of Congress and yard tours are a great way for lawmakers to meet you and your employees, hear about your company’s success and see first-hand how their votes impact your business.

“Grassroots advocacy by NLBMDA members is crucial to ensuring that the LBM industry’s priorities are reflected in legislation passed

by Congress. NLBMDA staff are happy to support you in providing the tools you need to engage your elected officials through a yard tour. This includes assistance with scheduling a tour, background information and issue briefs on NLBMDA’s legislative priorities, and tips on hosting a successful yard tour.”

Dealers interested in hosting members of Congress for a lumber yard can visit Dealer.org for its page that offers assistance in arranging August recess federal district visits and lumber yard tours.

HARDWARE + BUILDING SUPPLY DEALER June 2022

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SAVE THE DATE: HBSDealer’s Top Women in Hardware & Building Supply gala is slated for Nov. 8-9 in Chicago.

Top Women Profile Series KIMBERLY DEJESSO, HOME DEPOT’S NE W YORK ME TRO PRO SALES MANAGER

K

Growing diversity In talking with HBSDealer about the role of women in the home improvement industry, Kimberly DeJesso quickly highlighted a list of women in leadership roles at Home Depot.

Included were Ann Marie Campbell, executive vice president of U.S. Stores; Crystal Hanlon, president of the northern division; Kelly Mayhall, president of the Southern Division.

“These are phenomenal women,” she said, including in that description numerous other leaders and regional vice presidents. “Our company as a whole is definitely well balanced when it comes to women in executive roles.“ Of course, there is opportunity for the industry to realize more gains in diversity, especially in the pro side. And she added that it’s not just diversity in gender that builds better teams.

“With diversity comes diversity of thought, and diversity of perspective,” she said.

Looking back over the years, DeJesso added an optimistic assessment on the growth of diversity in the hardware and building supply industry: “We have come a long way.”

imberly DeJesso was recruited by the U.S. Air Force after receiving a certification in automotive science from Somerset County Vocational and Technical Institute in New Jersey.

One month before she was set to leave for basic military training, Kimberly broke her left wrist and needed surgery.

The injury shattered DeJesso’s hope of pursuing a military career and left her questioning her next move at the age of 18.

“With a wrist cast on, my father told me that I needed to get a job, because he wasn’t paying my way in life,” said DeJesso.

“He told me that The Home Depot in South Plainfield, New Jersey, was hiring, and that I should go apply.”

DeJesso joined the company in 1998 working in her store’s paint department. From there, she continued to grow her career, holding titles of increasing responsibility like pro account representative and national account manager.

Today, she’s the regional pro sales manager for the New York metro region. In this role, she’s responsible for leading and supporting a team of pro account representatives with the goal of step up does not go unnoticed,” said Rodriguez. driving outside sales and profitability growth, said the retailer.

“She sees every new challenge as a learning DeJesso credits her success to the many mentors she’s had opportunity. I’m so proud of her accomplishments in both her personal life and her career. and excited to see her continue to develop and She denotes one of the biggest influences as her father, who grow,” said Rodriguez. sadly passed away from brain cancer when she was 25 years old.

“My father taught me so much about work “My father taught me ethic and life,” said DeJesso. “He was up so much about work at 4 a.m. every day, and I cannot remember ethic and life. He was a single day where he didn’t go to work. up at 4 a.m. every day, Although he never got to see all my life’s and I cannot remember accomplishments or meet my son, I know he would be so proud.” a single day where Another key influence in DeJesso’s he didn’t go to work.

Home Depot career is regional vice presiAlthough he never dent of the New York metro region, Ro Rogot to see all my life’s driguez, said Home Depot. They’ve worked accomplishments or together for several years supporting two different regions. meet my son, I know he “Ro has shown me what a great leader would be so proud.” looks like,” said DeJesso. “When the —Kimberly DeJesso, COVID-19 pandemic hit, Ro was the backPro Sales Manager, The Home Depot bone of our region. She stayed strong as our leader and taught me how to persevere through adversity.”

Rodriguez credits DeJesso as an integral part of their team’s success. “Kimberly’s positive attitude and willingness to always

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June 2022 HARDWARE + BUILDING SUPPLY DEALER

People In The News McCoy’s Building Supply announced that Meagan McCoy Jones has been named president and CEO. The LBM and farm and ranch dealer’s new top executive McCoy Jones takes over her new position on June 1. Jones has served as president and chief operating officer of the San Marcos, Texas-based company since 2018. Jones succeeds her father, Brian McCoy, who is retiring after a 50-year career with McCoy’s Building Supply. Brian McCoy has served as CEO of McCoy’s since 2001.

Associated Materials LLC, the integrated building products and installed services provider, has appointed James Drexinger as its new CEO. Drexinger Drexinger succeeds Brian Strauss, who has served as president and CEO of Associated Materials since 2014. Most recently, Drexinger served as CEO for private equity-backed American Construction Source (ACS), a leading national building materials distribution platform and manufacturer of value-add products for new residential builders and repair and remodel contractors. Under Drexinger’s stewardship, ACS achieved $1 billion in revenue while undergoing significant growth, both organically and through multiple, strategic acquisitions.

Stanley Black & Decker announced that its board of directors has named Donald Allan, Jr., currently president and CFO, the company’s next chief executive ofAllan Jr. ficer, effective July 1, 2022.Allan will succeed James M. Loree, who has served as CEO since 2016. Upon assuming his new role,

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Allan will join the board of directors and retain his title as president. Allan is a seasoned leader and 23-year veteran of Stanley Black & Decker who has played a key role in the company’s evolution to become the world’s leading tool company, said the company.

Briggs & Stratton announced that Kristina Cerniglia has joined the company as senior vice president and chief financial officer. Cerniglia Cerniglia joins Briggs & Stratton after serving eight years at Hillenbrand, Inc. as senior vice president and chief financial officer.

Prior to Hillenbrand, Inc., she spent 23 years in the financial organizations at Stanley Black & Decker and United Technologies Corporation.

Apex Tool Group announced the appointment of William A. Burke III to SVP, and president of North American Hand Tools (NAHT). As a member of the Burke III executive leadership team, Burke will report directly to Jim Roberts, CEO of Apex Tool Group.

Chris Keffer has been named vice president sales and marketing of STIHL Inc. He will be responsible for sales for the domestic and export markets, Keffer sales planning, e-commerce, new product development, all marketing programs, and branch operations throughout the U.S., said the company. Keffer joins STIHL Inc. after a successful career with Stanley Black & Decker where he served in a variety of sales and marketing leadership roles, most recently

as the president, product management for the power tools group.

Do it Best Corp. named seasoned veteran Jason Hanegan its new national sales manager. Hanegan, who most recently served as the senior vice president Hanegan of national sales for Emery-Jensen, has over 25 years of experience in staff development and training, in-store merchandising, store operations, wholesale distribution, new business development, people leadership, strategic planning, and customer care, said the company. In this position, Hanegan will lead a team of retail sales-driven experts committed to growing members’ businesses.

Jeld-Wen promoted John Krause to senior vice president and general manager, North America. Krause will report JeldWen Chair and Krause CEO Gary Michel The new senior vice president was Jeld-Wen’s vice president and general manager for the North America windows business. He succeeds Daniel Castillo who is leaving the company, Jeld-Wen said.

House-Hasson Hardware, the independent regional hardware distributor, named Jason Rasmussen as vice president of merchandising. He took over Rasmussen House-Hasson’s merchandising responsibilities upon the resignation of Jason Monroe, who’d held the position since 2018. Rasmussen joined House-Hasson last year as senior product manager for tools and lawn and garden products.

HARDWARE + BUILDING SUPPLY DEALER June 2022

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Residential Construction/Sales

Monthly Retail Sales, not adjusted

13 months of housing starts and existing-home sales

home centers and pro dealers (NAICS 444) and hardware stores (NAICS 44413)

Total starts

NAICS 444

(in thousands, SAAR) Apr.: 1,724,000

NAICS 44413

(sales in $ billions)

50

1800

4

1700

1500

3 2.73

2.58

29.3

1300

3.19

33.5

30

1400

46.0

46.5

44.5

43.0

40

1600

(sales in $ billions)

2.41

3.25

2.63

2

20

1200 1100

1

10

1000

0

900

A

M

J

J

A

S

O

N

D

J

F

M

A

SOURCE: COMMERCE DEPARTMENT

FEBRUARY 2021

Single-family starts

MARCH

0

APRIL

JANUARY 2021

2022

FEBRUARY

MARCH

2022

SOURCE: MONTHLY RETAIL TRADE REPORT FROM THE U.S. CENSUS BUREAU

(in thousands, SAAR) April: 1,100 1400

HBSDealer Stock Roundup

1300

the percent-change performance of stocks based on Jun. 9 prices

1200 1100 1000

50

900

40

800

30

600

A

M

J

J

A

S

O

N

D

J

F

M

ANNUAL CHANGE

700

A

SOURCE: COMMERCE DEPARTMENT

Existing-home sales (in millions, SAAR) Apr.: 5,610,000 7

BLDR

20

BECN

WY

10

LOW

DE

0

TSCO HD DJI

-10

SHW

-20

6.5

-30

6

-40

5.5

SWK

-50 -6

5

-5

-4

-3

-2

-1

0

1

2

3

4.5

MONTHLY CHANGE

4 3.5

BECN (BEACON); BLDR (BUILDERS FIRSTSOURCE); BMCH (BMC STOCK HOLDINGS); DE (DEERE & CO.);

A

M

J

J

A

S

O

N

D

J

F

M

A

HD (HOME DEPOT); LOW (LOWE’S); SHW (SHERWIN-WILLIAMS); SWK (STANLEY); TSCO (TRACTOR SUPPLY);

SOURCE: NATIONAL ASSOCIATION OF REALTORS

WY (WEYERHAEUSER); DJIA (DOW JONES INDUSTRIAL AVERAGE)

Consumer Watch Unemployment rate

Consumer confidence

Gas prices

for the entire United States

indexed to a value of 100 in 1985

average price per gallon (regular)

8.0

10.0

12.0

4.0

80

34

Current Prior month

120

Prior year

16.0

3.6%

18.0

May 0.0

$4.00 $3.00

14.0

6.0

2.0

100

20.0

60

106.4

$4.97

May

Jun. 9

June 2022 HARDWARE + BUILDING SUPPLY DEALER

140

$2.00

$5.00

SOURCES: LABOR DEPARTMENT, THE CONFERENCE BOARD, AAA

HBSDealer.com

21 MAY 20

No. 5 Vol. 47

.7 l. 47 No 21 Vo JULY 20

No. 10 Vol. 47 R 2021

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ER/DEC

NOVEMB

TOP N E M O E& R W A DW PPLY R A H U IN 021

THE 2 OF CLASS

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