The Hardware Journal December 2012

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THE

DECEMBER 2012

Hardware JOURNAL

THE VOICE OF THE IRISH HARDWARE INDUSTRY

View From Abroad Ten things Walmart would rather you did not know, by a former Walmart Director

HAI Trade Show 2013 Retail owners, managers and buyers cannot afford to miss this opportunity in February 2013 at Citywest

Paint Trends If paint were a creature, it would be an octopus. Sean Browne offers advice to help you sell paint

The Gadget Guy

A new image for a new beginning

TV3’s Gadget Guy, Colin Baker, explains the latest in speech recognition software for your computer

HAI Better Business Maximise your store’s potential with the correct layout

Hardware A4 ad/2013:Layout 1

AN

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EVENT

Visit us at

Sun 17 February 10am - 6pm Mon 18 February 10am - 5pm Citywest Exhibition Centre Saggart, Co. Dublin www.citywesthotel.com

Why you should attend Do business with over 500 market-leading brands in: • • • • • • • • • • • • •

Adhesives Bathroom Building Materials Décor DIY Electrical Energy Fasteners & Fixings Flooring Garden Care Garden Chemicals Garden Equipment Garden Tools & Accessories

• • • • • • • • • • • • •

Giftware Grow your own Hand & Power Tools Hardware Housewares Ironmongery Outdoor Clothing & Footwear Outdoor Living Pet products Plumbing/Heating Retail Solutions Security Shelving/Storage

www.hardwareshowireland.com The Show is organised on behalf of the Hardware Association Ireland by Business Exhibitions Ltd. 6 Sandyford Office Park, Foxrock, Dublin 18.

PRODUCTS AWARDS See 1000s of products from over 500 leading brands.

Also visit the New Product of the Show Awards display area.

ART FREEDMAN - THE ART OF SELLING Learn how to turn sales into profits from Ace Hardware guru Art Freedman.

FREE SEMINARS AND WORKSHOPS Tap in to the wealth of information and advice available from the many seminars and workshops.

NETWORK AT THE PRESIDENT’S BALL

The HAI President's Ball (Black Tie) on the eve of the opening day CITYWEST is a phenomenal LUXURY networking STAY-OVER opportunity.

Citywest is one of Europe's premier hotel resorts.

For special rates call Tel: +353 (0)1 401 0500 or visit www.citywesthotel.com

Tel: +353 (0)1 295 7418 Fax: +353 (0)1 295 7417 email: maureen@bizex.ie

REGISTER NOW and get Free Entry Free Car Parking Free Show Guide

PRE-REGISTER ON-LINE AT www.hardwareshowireland.com All those who pre-register will also receive a Pre-registration Badge and a FULL LIST of exhibitors.

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IN THIS ISSUE Dear Reader New products and innovative ideas are the lifeblood of every industry but none more so than the hardware sector. At the Hardware/DIY Home Garden 2013 show over 500 marketleading brands represented by leading companies will showcase everything from traditional hardware/diy and building materials products through to housewares, garden, workwear and pet care products.

Hardware Show preview 32

A new image for a new beginning

28

Brendan Maher, HAI President, explains the rationale behind the new name for the Association, and COVER STORY the new strategy going forward.

F E AT U R E S 12 Latest trends in the paint market in Ireland Sean Browne tells retailers to capitalise on the excellent marketing initiatives being implemented by leading paint manufacturers to boost sales.

34 Octabuild 2013 The Octabuild 2013 Awards have been reinvigorated and now include a new Awards structure.

36 HAI Better Business Declan Carolan advises on store layout and maximising sales.

12

38

31 HAI Golf Society News Gus Mullarkey reports on the President’s outing and gives details of next year’s events.

38 View from abroad Michael Bergdhal, former Walmart Director of People, on retailing and how to learn from, and compete with, the Walmart model.

42 Gadgets for business TV3’s Colin Baker waxes lyrical about new and emerging trends in speech-recognition software.

W

elcome to the first edition of The Hardware Journal, the Hardware Association’s new bi-monthly publication. The Association already provides a vast array of services but there has never been a greater need for a communication and information forum to reflect this, and to deliver additional expert advice to both members and the industry at large. The Hardware Journal will fulfill that role.

News and new product information will comprise a very important strand of the editorial content. However, the main thrust will be “independent” editorial featuring informative articles dealing with issues such as employment legislation, financial management, trading legislation, market trends, retailing and supply chain matters.

This first edition of The Hardware Journal will be mailed directly, and personally addressed, to all HAI members, in addition to senior purchasing managers, and ownermanagers, across the entire industry.

The Hardware Journal will also be available in soft-copy format on the dedicated The Hardware Journal website (www.thehardwarejournal.ie).

More than anything else The Hardware Journal is by the industry, for the industry. We welcome your comments, views and suggestions and look forward to reflecting them in future issues.

42

REGULARS 2 News and products 44 HAI Clipboard A bulletin board for HAI members.

December 2012/January 2013

❙ THE HARDWARE JOURNAL 1

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News

Editor Pat Lehane t: 01 288 5001 m: 086 255 7363 e: pat@thehardwarejournal.ie

PRODUCTS

HAI supports WEEE initiative

Editorial Board Brendan Maher, President HAI David Baker Kieran Burke Jim Copeland Heather Graham Charlie Hamilton Paddy Kelly Senan Monaghan John Murphy Hugh O’Donnell John O’Dwyer John Phelan Alex Taylor

RTE’s Room to Improve presenter Dermot Bannon (right) visited the new TJ O’ Mahony Builders Merchants in Ballymount recently to announce WEEE Ireland’s renewed sponsorship of the series, and its partnership with Hardware Association Ireland (HAI) to encourage local hardware retailers to become centres for WEEE recycling in the community.

Conor Leonard, Collections and Projects Manager of WEEE Ireland, said: “WEEE Ireland is delighted with both of these partnerships. The hardware store in any town is a pivotal part of the community and we welcome their support in this drive”.

Jim Copeland, Chief Executive and Director, HAI added: “We have more than 600 members nationwide who, in addition to advising on renovation and DIY work, also encourage customers A recent report in the Irish to recycle old appliances for free right in store.”

Independent stated that “almost Contact: Jim Copeland, HAI. Tel: 01 - 298 0969. €1 of every €12 spent by Irish Email: jim@hardwareassociation.ie consumers goes to overseas internet retailers”. It then proceeded to outline a doomsday scenario for traditional retailing with quotes and figures from all manner of sources.

Isover Optima, the high-performance insulation solution Internet purchases are obviously developed to improve thermal and acoustic performance competition to traditional retailing where outer facade but, if €1 out of every €12 spent or cavity wall at retail level is going to internet insulation is not an suppliers, that means that a option, has been staggering €11 out of every €12 awarded NSAI still goes the established route. certification.

Nor is it the case that internet It is the first dryretailing is some new phenomenon. lining system accredited by the NSAI and has been tested It is now a well-established element and approved not only to improve the thermal and acoustic of the retailing picture yet, despite performance, but also to reduce thermal bridging. that, traditional retailing in Ireland Photo shows Brian Dolan, Managing Director Gyproc still attracts €29bn of the estimated and Isover Ireland with Sean Balfe, Director, Irish Agrément €35bn total retail spend in the Board, NSAI. country.

Of course traditional retailers should be conscious of the internet The second Global DIY Summit will take place in Italy on competition, and indeed would do 6/7 June 2013. Hosted once again by EDRA and fediyma (the European Federation of DIY Manufacturers), the Global Summit well to establish their own internet presence. However, the facts of the will take place at the Sheraton Roma Hotel and Conference Irish Independent story point to Centre in Rome. traditional retailing standing very Entitled “A Digital World: The challenges of home firm in the face of internet retailing. improvement in the multi-channel era”, the event is expected Don’t be misled by the negative to attract over 500 delegates from across the globe. spin put on them.

Contact: www.fediyma.com

Retailers get €11 out of every €12 spent

Advertisement Manager Joe Warren t: 01 288 5001 m: 086 253 7115 e: joe@thehardwarejournal.ie

Isover Optima gets NSAI certification

Origination and design Pressline Ltd. t: 01 288 5001 Subscription One Year – €50 Official journal of

Published by The Hardware Journal Ltd Elmville Upper Kilmacud Road Dublin 14 t: 01 298 0969 e: jim@hardwareassociation.ie w: www.hardwareassociation.ie

Global DIY Summit 2013

© All editorial contents and all advertisements prepared by the publishers, The Hardware Journal Ltd.

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More people trust Tegral slates than any other.

Doesn’t that just say it all?

A combination of quality, reliability and technical back up means more people choose Tegral first. For more than 75 years now Architects, Builders, Merchants and Home-owners trust Irish-made Tegral slates over any other.

For them all, when it comes to slates, Tegral always comes out on top.

Find out more at www.tegral.com

Tegral. Be Proud of What You Build.

Tegral Building Products Ltd, Athy, Co Kildare.

Tel: 00 353 (59) 863 1316 email: info@tegral.com

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News PRODUCTS

Expert Hardware RTE coup At a time when small and medium-sized hardware stores are under extreme pressure, Expert Hardware has pulled off an amazing coup with RTE that, even at this early stage, has already underpinned and strengthened its members’ standing in the minds of the public.

DIY is a major element of RTE’s new flagship afternoon Today Show and Expert Hardware is the officially-appointed resident DIY expert adviser on the programme. The show is hosted by Dathai O’Shea, Maura Derrane and Norah Casey and its airing at peak viewing attracts an average audience of 150,000.

The first of the five shows aired on 5 November and the theme dealt with by the Expert Hardware adviser was “Have hot water for the rest of your life at no cost”.

Themes for the subsequent shows are: • There’s a mouse in the house; • The magic toolbox; • Stop that draught; • Light up your life.

David Baker, Chairman Expert Hardware told The Hardware Journal as we went to press: “At last the local hardware store is now seen as the first port of call by people who want good sound advice and the right products for the job. Let's face it, that’s what everybody wants and at Expert Hardware we deliver that”.

Alan Grant, Expert Hardware Contact: David Baker, Expert Hardware.

Marketing Director, who presents Tel: 01 – 524 0686; email: david.baker@experthardware.ie the slot on RTE’s Today Show.

Sanbra Fyffe and Plasson join forces The Plasson range of mechanical fittings suitable for both Irish and metric pipe is now available from Sanbra Fyffe. Robust in the extreme, Plasson is made from virgin polypropylene. This gives it immense impact strength and stress resistance, and it can operate securely to +/- 40ºC. It is also quality approved by European and global agencies.

Plasson has a proven track record based on continuous use for over 45 years. It is designed for connection to many pipe types and materials, providing backwards compatibility with existing systems.

Thanks to the captive ‘O’ ring seal, it provides lifetime protection against leakage. It requires no nut-tightening to achieve a seal.

Plasson comprises a vast range of types, sizes and patterns of fitting with many unique solutions to everyday problems. There is also a complementary range of valves, accessories and threaded products to provide a total solution, no matter what the application.

Also from Sanbra Fyffe is Plass4, a pipe-repair coupler to connect to many pipe materials. The Plass4 coupler and elbow will make an immediate repair whether the existing pipe is copper, lead, galvanised steel, PVCu, polyethylene, alkathene or Poly York. With couplings available to cover the O/D size range 15mm to 50mm and elbows to cover the O/D range 15mm to 35mm, Plass4 is the answer for every emergency.

Finally there is PlasShield, a range of fittings to suit barrier pipes for contaminated ground. Two display types are available – a 1-meter and an 0.5-meter version.

Contact: Kevin or Ultan in Sanbra Fyffe Santry office. Tel: 01- 842 6255 (or your local representative). Email: sales@sanbra-fyffe.ie Web: sanbrafyffe.ie

4 THE HARDWARE JOURNAL

❙ December 2012/January 2013

Allied Merchants €100 million buying power Having just celebrated its first birthday, Allied Merchants Buying Association now comprises seven members – Ganlys; Home Project Centre (HPC); Morris Builders Providers; Stakelums; Joyces; Maurice Grahams; and Drinagh Co-op.

Between them they represent 24 stores and account for a combined purchasing turnover of over €100 million. Industry sectors served include building supplies, agricultural, plumbing, hardware, garden and homeware supplies.

Allied Merchants CEO John Murphy stated: “With shifts in the economic landscape there have been huge changes in retailing and supplying. However, by working together to achieve the same goals we are delighted with our first year as a new buying group.

“A huge positive has been the communication and information sharing between members on topics such as product selection, store layout and promotions. We have a board meeting once a month where members have their say and we vote on any decisions the group has to take. Every member has an equal say and an equal vote”.

Allied Merchants’ CEO John Murphy

Looking to the future, John said that all members joining in the first two years will be shareholders but that the number of members will be limited to something like 20.

The fundamental aim of Allied Merchant is a low-cost, highly-professional group, with strategically placed members that work with nominated suppliers.

Contact: info@alliedmerchants.ie

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Designed, Developed and Manufactured in Waterford

Everything we know about stoves, in your fireplace.

Over 300,000 Irish homes have chosen a Stanley stove, here are some of the reasons why...

3 Cut

your fuel bill

3 Prepared

A Stanley stove simply produces more heat from less fuel helping you stretch your fuel budget further.

3 Room

and central heating options available

The Cara Insert central heating model is now available to heat up to 4 standard radiators.

for any weather

Come hail, rain or shine, your Stanley Stove will be there for you; providing controllable, efficient heat when you need it.

3 Easy

to install

The Cara Insert stove fits easily into a 16” or 18” wide x 22” high fireplace opening.

Find out more about our other amazing offers:

Call us

Visit your

1850 302 502

local Stanley Centre

Online

www.waterfordstanley.com www.facebook.com/WaterfordStanley

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News PRODUCTS

Stanley – Irish brand with long tradition

Curust extends portfolio

Stanley has been bringing warmth and comfort to homes for generations, stretching back to when the first range cooker was made in Waterford in 1934.

New to Curust industries is the Douglas At Waterford Stanley the design team’s objective is to create stoves that bring control, professional range of high-strength comfort and warmth to the home. The design ethos is simple – connecting the past to the cleaning products. These are aimed future and combining classic style with excellent performance. specifically at the hardware/DIY store A tyical example from the range is the Cara Insert Stove which retains the appearance of and are recommended for professional use. an open fire while bringing all the benefits of a stove. It is also said to be three times more One of the advantages here is that it gives efficient than an open fire. hardware/DIY stores the chance to The Cara Insert takes up minimal hearth space, The Reginald differentiate themselves from the local making it the perfect solution where space is at a supermarket in this product category. premium. It will also shortly be available in a highMeanwhile Vitcas has appointed Curust output boiler model which will heat 9/10 standard Industries its distributor for Ireland for its radiators. stove accessories range of heat-resistant Meanwhile, the Reginald – inspired by the famous products. In addition to premium fire Reginald’s Tower in Waterford – sets a new standard cement, the range includes high heatfor stove design and performance. Behind the resistant aerosol paints, cleaners and sculpted curves, chrome detailing and elegant styling fire ropes, and seals. lies a next-generation stove designed to comfortably Finally, Tessi has introduced a new heat the entire home, while also meeting hot water “snap-safe” europrofile cylinder. When the needs. burglar attacks the cylinder it snaps at a Other models in the range include the Lismore pre-determined point while keeping the boiler and non-boiler stove and the new Ardmore door securely locked. The key-holder can stove which is coming soon. still use the key to open the door and In total, over 300,000 Irish households replace the cylinder later. have already said yes to the control, Contact: Richard Brocklesby, Curust.

CCEC Distributors has added two efficiency and comfort that comes as Tel: 01 – 276 0800; email: info@curust.ie major international housewares brands to standard with a Stanley Stove. its portfolio – Rayen and Tescoma.

Contact: Locall 1850 302 502; Rayen comprises a comprehensive range www.waterfordstanley.com of laundry, clothes storage and cleaning products such as ironing board covers, cooker hood filters, bags for wardrobes and multi-use Irish Cement Ltd, CEM II cements were first vacuum introduced by Irish Cement in 2007 to reduce the bags. carbon footprint and improve the sustainability of the As for company’s product range. In keeping with the drive Tescoma, to improve sustainability, Irish Cement recently this is a invested in modern energy-efficient manufacturing worldfacilities and last year further reduced its renowned dependence on imported fossil fuels by introducing alternative name in kitchenware products. It includes fuels as a heat source in the kiln at Platin Works. everything from kitchen gadgets through to Following several years of commitment and investment, Irish Cement’s CEM II Ecokitchen utensils, cookware and tabletop. efficient cements became the first products in Ireland to be independently certified to the Manufactured to a high quality, all products BRE Environmental and Sustainability Standard BES 6001. Irish Cement has now introduced carry a minimum 3-year guarantee. a revised bag design to mark this achievement and to communicate to customers the Contact: Declan Byrne, CCEC Distributors. sustainability benefits of its cement.

Tel: 01- 457 1075; email: ccec@imagine.ie Further information is available on the Irish Cement website www.irishcement.ie

CCEC new brands

New Irish Cement bag design

6 THE HARDWARE JOURNAL

❙ December 2012/January 2013

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One contact. One order.

Greater efficiency.

For a full range of concrete building materials look no further than Ireland’s largest independent manufacturer of concrete products, Kilsaran International.

DECORATIVE STONE Decorative Stone is perfect when creating informal garden paths, separated landscaped areas or simply adding colour. Our ranges include all the most popular decorative aggregates on the market and are available in 25kg plastic bags or bulk bags.

PRE-MIXED DRY PRODUCTS Our pre-mixed dry products are pre-mixed in our state-of-the-art manufacturing facility in County Kildare. This ensures accuracy, consistency and less waste. These products only require the addition of water and come in a range of convenient bag sizes in either plastic or paper bags.

QUALITY BAGGED AGGREGATES Our quality bagged aggregates are clean, washed and specially graded to comply with the relevant EN standards for supply to the building trades. Our large network of quarries enables us to deliver a quality product to our customers.

PAVING Our product range represents the very best of design and craftsmanship. We employ the most modern techniques at our world class manufacturing facility. All products come in a range of finishes and colours to suit everyone’s taste.

KERBS & ACCESSORIES Our extensive range of kerb blocks and kerb setts complement our entire range of paving flags and blocks. Special corner blocks allow right-angle designs and our channel blocks allow water to drain away.

STONESCAPE PACKS This premium quality range of paving packs uses moulds to recreate the look and feel of natural stone. Using raw materials from our own quarries and produced in our modern manufacturing facility, you can be sure our products meet the highest quality standards.

STONESCAPE CIRCLE PACKS If you love the look of the circle but prefer or need your patio space to be square, then you can use our Squaring Kits in Old Priory or Cambridge to complete your project.

Please note squaring kits are not sold separately.

SAND & SEALERS JOINTING SAND Kilsaran’s jointing sand comes in two shades co-ordinating with our entire product range. This Kiln dried sand is ideal for use with both block and flag paving. The Silver Granite Jointing Sand MUST be used with all Kilsaran products in Silver Granite, Yellow Granite and Pembroke – Eco ranges to avoid possibility of unsightly staining from the buff coloured jointing sand.

PERMAJOINT & SEALERS Kilsaran’s premium grade paving sealer range provides comprehensive product protection with a long term sealing effect which does not need to be applied on an annual basis. Kilsaran’s PermaJoint 200 is a jointing compound, designed for wide joint paved areas. The self-hardening properties of this product provides a long term durable joint with an attractive sand joint appearance.

For more information click www.kilsaran.ie or call us for a catalogue on 01 8026300

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News PRODUCTS

Merger creates Tucks O’Brien

Tegral ‘Win a Roof’ winner The Sinnott family from Ballinhassig in County Cork were the winners of the first of two draws in the Tegral “Win A Roof Competition”. Tadhg Donohoe, National Sales Manager, Tegral, recently presented them with their prize at a special ceremony held in the premises of Cork Builders’ Providers, where they purchased their ThrutonePlus slates.

Also in attendance were Michael Brosnan, Tegral’s Technical Sales Representative for the region, Dan Twomey, Managing Director of Cork Builders’ Providers and David Heavin, a senior manager at the firm.

The slates were used in an ambitious home renovation project utilising a combination of wind-generated energy, a biomass boiler, solar heating panels and the highest levels of insulation.

Commenting on the competition Dan Twomey said: “We are very proud to be associated with Tegral who are an Irish manufacturer and the leader in roof slates – two great names, one great product. In the current climate it is important to support our own and at Cork Builders Providers we are recognised for our support of Irish products”.

Tadhg Donohoe added: “This is the first competition of its kind and it has proven extremely popular. I would encourage anyone who purchases Tegral slates from their builders’ merchant to complete an entry form and enter the next draw of our “Win A Roof Competition” which takes place on the 20 December 2012”.

Tegral’s “Win A Roof Competition” is open to anyone who purchases Tegral ThrutonePlus, Supercem or Graphite Blue Slates from their builders merchant. Terms and conditions apply which are available on www.tegral.com.

Contact: www.tegral.com/findyourlocalrepresentative

Laing joins DS Supplies Derrick Laing has joined DS Supplies Ltd, bringing over 12 years experience from within the wood products industry. He is especially knowledgeable on wood profiles and DIY products and will deal directly with hardware and builders merchants nationwide.

DS Supplies distributes a wide range of floor accessories under the Trojan brand and Eureka Fasteners and Fixings.

See www.dssupplies.com 8 THE HARDWARE JOURNAL

The directors of sister companies PE O’Brien Ltd and Tucks Ltd have re-structured their business model and merged the two operations into a new entity called Tucks O’Brien.

The new venture will formally commence trading on 7 January 2013 with Tom Nolan as Managing Director, Bob Boxwell as Commercial Director and Donal Moulton as Product and Marketing Director.

It will trade from the 40,000 sq ft distribution centre currently occupied by PE O’Brien in Magna Business Park, Citywest, where substantial stocks of hand tools, power tools and related products will be held.

A team of 15 field sales staff and eight internal stales staff will service the large and expanding customer base.

Contact: Tom Nolan, Managing Director. Tel: 01 - 467 7000; www.peob.ie

David Heavin, Senior Manager and Dan Twomey, Managing Director, Cork Builders Providers with competition winners Peter and Kathryn Sinnott, Tadhg Donohoe, National Sales Manager, Tegral and Michael Brosnan, Technical Sales Representative, Tegral.

Reisser power tool accessories Reisser Ireland supplies high-quality, high-performance woodscrews and power tool accessories aimed specifically at the professional trade.

The extensive range includes the Reisser R2 and the revolutionary Reisser Cutter woodscrew. Handy system cases contain both the R2 and Cutter woodscrews in assorted sizes and quantities, designed to make life easier for the professional.

Reisser’s displays and merchandising are informative, eyecatching, maximise stock space and, as a result can increase turnover.

As distributor for Wera, Wilco and Forgefix, Reisser Ireland offers a varied range of products and fixings for every need.

Contact: James Wild, Reisser Ireland. Tel: 057 – 933 3314; email: sales@reisser.ie

❙ December 2012/January 2013

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ROME WASN’T BUILT IN A DAY. It would’ve been if this was around.

SEALS AND BONDS EVEN IN THE WET EVO-STIK 007 eliminates the need for any other type of sealant or adhesive and can be used in more than 7 specialist construction fields such as Carpentry, Plumbing, Electrical, Glazing, Metal Fabrication, Tiling, and Decorating.

EVO-STIK 007 is specially designed to replace at least 7 individual products including: Panel/Grab Adhesive Decorator’s Caulk Wood Glue All Weather Silicone

General Purpose Sealant Specialist PU Adhesive Sanitary Silicone

Bostik Industries Ltd. Newtown, Swords, Co. Dublin, Ireland t 01 862 4900 f 01 840 2186 w www.bostik.ie

December 2012/January 2013

❙ THE HARDWARE JOURNAL 9

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News PRODUCTS

Kilsaran offers full range from single source Merchants wishing to stock a full range of concrete building materials need look no further than Ireland’s largest independent manufacturer of concrete products, Kilsaran International.

Since the 1960s, the Kilsaran brand has been most strongly associated with ready-mix concrete and blocks. Over the past decade or more the company has diversified its portfolio and is now the market leader in hard-landscaping products such as paving blocks, slabs, circle packs, kerbing, decorative aggregates and walling products. Complementary paving accessories such as sealers, jointing sand and jointing compound are also available.

Kilsaran has invested in a state-of-the-art plant for the manufacture and bagging of premixed products such as mortar, render, 3:1 sand and cement mix, patio bedding mix, DIY repair products and many more. Depending on the product, the company’s pre-mixed range is available in plastic or paper bags and in a variety of sizes from 25kg down to 10kg handy packs. Direct from Kilsaran’s own quarries, bagged aggregates are clean, washed and specially graded to comply with the relevant EN standards for supply to the building trades.

Choosing Kilsaran as a building materials partner guarantees a complete and superior quality range from a single supplier, and also an unrivalled customer service experience. The company’s Quality Monitoring System is designed to ensure that input from its customers is captured and acted upon. Kilsaran is committed to best-in-class product training for its customers which can be conducted on-site or at the company’s state-of-the-art facilities in Co Meath.

A strong focus on sustainability means that stocking the Kilsaran range won’t cost the earth. its long-established goal is to minimise the environmental impact of its business and, where possible, provide environmental benefits to all its stakeholders by recycling, reusing and creating new innovative systems, products and sales routes.

With attention-grabbing packaging and point of sale, significant cross-selling opportunities, high profile media campaigns and a sales support system second to none, distribution partners know that stocking Kilsaran’s range will deliver the highest return.

Contact: Kilsaran International. Tel: 01 – 802 6300; www.kilsaran.ie

Tight on Water

United against retail crime

Sanbra Fyffe now distributes the vast portfolio of Plasson mechanical fittings suitable for both Irish and Metric pipe Sanbra Fyffe Limited, Conex Works, Santry Avenue, Santry, Dublin 9.

Tel: 01 - 842 6255 Email: sales@sanbra-fyffe.ie www.sanbrafyffe.ie/

10 THE HARDWARE JOURNAL

❙ December 2012/January 2013

Retailers Against Crime, the successful initiative in the fight against orgainsed retail crime in the UK, has now opened an Irish operation called Retailers Against Crime Ireland (RACI). According to a recent report published by Retail Ireland, trade crime is costing the Irish exchequer €861million per year with retail theft alone costing €110 million.

Information on crime and acts of violence in the workplace are submitted to RAC by its members, providing analysed and intelligence bulletins, with up-to-date information to help counteract organised retail criminals.

The launch was extremely successful and brought a lot of positive feedback and interest to the RACI. Contact: Donie O’Callaghan, RACI. Tel: 01 – 291 6174; Mobile: 086 – 043 2224; email: donie@retailersagainstcrime.ie

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The Hardware Journal …

… just a click does the trick

ie

l. a n r u o j are w d r a h e www.th

In addition to the printed edition, The Hardware

Journal is also available electronically. It can be accessed in page-turner format for on-screen persual, or as a pdf which can be printed out in full, or part, depending on the particular article(s) you are interested in.

DECEMBER 2012

THE

Hardware JOURNAL

THE VOICE OF THE IRISH HARDWARE INDUSTRY

View From Abroad Ten things Walmart would rather you did not know, by a former Walmart Director

HAI Trade Show 2013

The Hardware Journal is the official publication of Hardware Association Ireland. The printed edition is mailed directly, and personally addressed, to all HAI members, in addition to senior purchasing managers, and owner managers, across the entire industry. If you are involved in the sector and wish to receive your own personal copy, email your full details to pat@thehardwarejournal.ie

Retail owners, managers and buyers cannot afford to miss this opportunity in February 2013 at Citywest

Paint Trends If paint were a creature, it would be an octopus. Sean Browne offers advice to help you sell paint

The Gadget Guy

A new image for a new beginning

TV3’s Gadget Guy, Colin Baker, explains the latest in speech recognition software for your computer

HAI Better Business Maximise your store’s potential with the correct layout

HAI HAI CLIPBOARD CLIPBOARD Smart Cards for Fuel Allowance Scheme Hardware Association Ireland (HAI) has written to the Government to say that the exchequer could recover an estimated €9.25 million in VAT and business taxes if the Department of Social Protection made better use of available technology to pay the Winter fuel allowance to individuals and families.

HAI suggests that the Government should introduce an officially-endorsed fuel voucher system where recipients would have to use dedicated fuel vouchers or smart cards to purchase fuel products from registered retail fuel outlets. This would allow the Government to recoup some of its expenditure on Winter Fuel Allowance through legitimate retail outlet tax returns.

“We have concerns that, as

the allowance is currently paid in cash and used to purchase fuel from any source of supply, there is no traceability or recovery for the State.” says Jim Copeland, HAI Chief Executive.

There is sufficient competition among legitimate retail outlets to ensure that recipients of the allowance have a wide choice of suppliers. It would also be a more efficient way to reduce the damage the shadow-economy or black market traders are causing to legitimate businesses in every sector.

With the increased cost of fuel hitting householders hard, HAI has also urged the Government against a further carbon tax on solid fuel in the forthcoming budget. “Not only will such a tax add undue pressure for many thousands of households, it will result in lost revenue to Government and as many as 1200 jobs because of the growing unregulated market in solid fuel”, says Jim Copeland.

Recast Prompt Payment Directive welcomed HAI welcomes the thrust and objectives of the recast Prompt Payment Directive 2011/7/EU of the European Parliament due to be introduced into Irish legislation in March 2013. However, HAI insists that the problem is not with the legislation, but with its enforcement and the fact that the number of companies that charge penalty interest to their business partners is reportedly very low.

HAI contends that late payments are disastrous for Irish business, and have been made financially attractive to debtors in Ireland by low or no-interest rates being charged on late payments and/or slow procedures for redress.

In a submission to the recent consultation on the EU Directive, HAI said that there needs to be a decisive shift to a culture of prompt payment, including one in which the exclusion of the right to charge interest should always be considered to be a grossly unfair contractual term or practice.

Such a shift should also include the introduction of specific provisions on payment periods, and on the compensation of creditors for the costs incurred. The exclusion of the right to compensation for recovery costs should also be presumed to be grossly unfair.

Accordingly, provision should be made for business-to-business contractual payment periods to be limited, as a general rule, to 60 calendar days.

HAI is ready to contribute to any initiative that will substantially address the area of prompt payments. The adoption of this Directive into Irish legislation would be a positive outcome to this consultation.

HAI opposes statutory sick pay scheme HAI says that the introduction of a statutory sick pay scheme in Budget 2013 would have hugelydamaging consequences for employment and growth next year.

In a recent IBEC survey, almost half of the respondents with an occupational sick pay scheme said such a move would affect their company's ability to recruit new employees. A similar number said it would affect their ability to retain existing staff and a majority said it would affect the sustainability of their business in Ireland.

In addition, companies would be forced to change the existing benefits offered to their employees.

HAI believes that employers would revise and reduce existing sick pay and benefit entitlement to staff.

This shifting of costs onto employers is an extra tax on employment at a time when employment should be the priority. This proposed measure will increase labour costs, reduce the opportunity for companies to create and maintain jobs, and damage our competitiveness. Government should be finding ways to reduce costs so employers can create jobs and stimulate economic growth The OECD says that an increase in taxes on labour of 1pc reduces an economy's employment rate by about 0.4%. Based on this, any Government's proposal for an extra tax on jobs through a statutory sick pay scheme could cost at least 3,500 jobs, both directly and indirectly.

Jim Copeland, Chief Executive and Director, HAI 44 THE HARDWARE JOURNAL

S December 2012/January 2013

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If paint were a creature, it would be an Octopus. It loves its natural habitat and it uses its eight tentacles to guarantee not only its own survival, but also that of its preferred environment.

12 THE HARDWARE JOURNAL

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The paint-octopus makes the painting process simpler – and that makes the job look better and last longer once finished – it's one job now that just about anyone can tackle. This has led to radical change in the painting industry at every level, from the independent paint store, to paint manufacturers and product designers.

Retailers – you must capitalise on excellent new manufacturer marketing initiatives hen placed outside its comfort zone, paint does not flourish. It has a habit of disappointing the opportunistic retailer who tries to place the octopus within easy reach of things it does not like. Oranges, tents, ski vests, 100-piece screwdriver sets and digital memory drives are not its friends.

Witness the forlorn appearance of the product four times a year in certain food stores, then spare a thought for the most consistent performer of your retailing

W

business in the last 50 years. Paint is a predictable income earner. It has its seasons and each one contrives to keep demand on a stable trajectory for its store.

Coloured paint, in the octopus world, is a high roller. The unitary transaction value is quite high. Single package transactions, e.g. a 2.5 litre of tinted wall paint, range around €30. Multiple purchases for even a small project can be very significant.

The octopus at work again. Hmmmm, a wall, a ceiling, a door, a window, a brush, a roller, a tray, some sandpaper maybe? Oh

Sean Browne is an industrial engineer and holds an MBA. He is CEO of RefleX Plastics Technology and MD of Vista Management Consultants.

Sean’s experience in paint and paint retailing is unparalleled, and he has worked on paint projects over a span of 27 years in over 30 different countries for the Akzo Nobel Corporation. He is also an SME mentor for DIT and Enterprise Ireland programmes. He can be contacted directly at vistamgt@gmail.com

This edition In this, the first of a two-part series on paint, Sean examines the radical changes taking place in the paint sector with specific reference to technical and product trends; colour trends; ranging options; giving expert advice; stock control.

Next edition In the next edition of The Hardware Journal Sean will look at: – Colour mixing/tinting – Display and choosing colour – Selling related products – Staff training – Making friends with your suppliers

December 2012/January 2013

❙ THE HARDWARE JOURNAL 13

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People find the task of choosing a color from a 1000-color fan deck a daunting and frustrating task. That is why they like pictures of colour schemes.

and masking tape and a dust sheet. Now, what else do I need?... enough said.

Trends – technical and product The momentum for the elimination of volatile organic compounds [VOCs] increases in line with EU Directives.

What that means to us is that paints will have virtually no white spirit in their composition. But don’t panic! You will still be able to buy as much white spirit as you like … and use it as you like. But your paint manufacturer is discouraged from putting it in there. Maybe that’s because they know consumers will be putting it in there anyway. Funny world …

But will your paint still be as good?

Well, yes and no. Emulsion paints have almost no organic solvent in them nowadays – no horrible oily stuff that we put in our cars every day – and they still work well.

However, the binder or “glue” (PVA) in wall paints that holds the coloured pigments together is oil-derived. It is a plastic. When it is applied, the miniscule amount of solvent that is in there evaporates and 16 THE HARDWARE JOURNAL

immediately goes off to the North Pole to melt icebergs. Or so it is alleged.

Ireland survived well for centuries on whitewash, a mixture of water and calcium hydroxide which, when exposed to oxygen, hardened and provided excellent water protection for the tigín bán. Witness the white cliffs of Dover which, unlike the North Pole icebergs, will not melt just because you give a room a quick lick of magnolia.

But to be objective, the new paints are great and congratulations to our paint manufacturers who have borne the very onerous task of making them comply with well-intentioned legislation.

Oil-rich paints such as gloss and satinfinish are rapidly being replaced by waterborne, resin-based alternatives and these paints are becoming very sophisticated in both their ease of application and durability. They are often marketed as “quick drying”.

I will summarise by saying that paint is older than Newgrange and is a very simple product. It will probably go back to more natural materials, and there is no harm in that. Manufacturers

❙ December 2012/January 2013

will continue to seek efficiencies and this will be managed seamlessly by them, hopefully with little effect on paints.

In the 1970s and 1980s the marketing focus was on paint performance and longevity. Thankfully that’s gone the way of double-breasted Yves St Laurent suits with turn-ups on the trousers and a silk hankie drooping from the breast pocket.

Right for the time but ghastly now.

Fashion and frequency of change are now the driving vectors of paint sales and let’s keep it that way. But don’t just leave it to the manufacturers – seize their marketing initiatives and capitalise on them. They have spent the money on your behalf.

The octopus has been around for a long time and remains intent on riding the tide.

Trends in colour “Our primary inspiration is nature, specifically the sensations of luminosity that are produced by the interaction of light, particulate matter in the atmosphere, and the stuff of the landscape … ground, water, trees, rocks”. This quote by Donald Kaufman essentially says that what you

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see on holidays often looks awful at home.

You know that’s true. It applies to clothes, music, “things” and even people.

However, we are very lucky to be located where our creator decided to place the pointy end of his compass when he decided on there being a landmass called Europe. European fashion and design set the pace for our colour preferences and the rise and fall in popularity of colours and colour schemes.

Colours become popular and then start to wane for a host of reasons. The trend for bold colour usage continues – red and its derivatives was king last year. However, they are now in the “subtle bold” zone and are generally accompanied by whites/off-whites etc.

Colour is where the margin lies in paint, and it’s a healthy margin. Price-fighting on white paint is so old-fashioned and pointless. The real battle is to create consistent margin opportunities in-store by being clever with your colour marketing proposition.

Display properly and give expert advice Here in Ireland, I see a real polarity between good and poor colour marketing in stores. Some people have given up and others are racing ahead.

The last five years has seen paint shift dramatically from the male zone to the female … and it’s the better for it.

Colour marketing for retail paints is firmly aimed at the female home-maker and the stodgy image of paint has all but disappeared. Paint and colour are exciting and interesting – a good paint store will capture this fair wind.

Historically, recessions mute the color palette of consumers, but there is no sign of that at the moment. This is good news for paint retailers and I see some very impressive marketing of colour from paint producers. The in-store presence of colour and colour swatches etc is really coming along in leaps and 18 THE HARDWARE JOURNAL

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bounds. If you want to sell colour in store, display it properly.

Most stores have at least one tinting machine and color displays so consumers are spoiled for choice. Or are they? Let’s not kid ourselves, retailers.

People find the task of choosing a color from a 1000-color fan deck a daunting and frustrating task. That is why they like pictures of colour schemes. It is well known that colours which appear in a room set in a colour card are guaranteed to sell well. Computerised colour manipulation is getting better every year as software and screens improve.

There are hundreds of colour software

“

projects under way as you read this article, and not just for decorative paint. Cars, kitchens, appliances, clothing etc all need accurate pictorial representation on your i-pad screen. I have seen some prototypes and many are unbelievable. So come on, help your customers to make confident colour decisions. Also ensure that at least one of your staff has colour training.

In short, consumers don’t buy a can of paint. They buy a new room. But a new room needs a lot more items than paint and there are many other things in your store that the octopus can reach out to.

The challenge for the retailer is to link purchases. But you know that already.

To be objective, the new paints are great and congratulations to our paint manufacturers who have borne the very onerous task of making them comply with well-intentioned legislation.

❙ December 2012/January 2013

”

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The in-store presence of colour and colour swatches etc is really coming along in leaps and bounds. If you want to sell colour in store, display it properly.

Guess it’s time to do something about it.

I will address this area in more depth in a future edition of The Hardware Journal.

Ranging options I’ve worked on paint projects in 32 countries, from Russia down to Papua New Guinea. The UK and Ireland are the only countries where a person can walk into a small paint/hardware store and see three or sometimes four different ranges of ready-mixed paints. What is that about? To make matters worse, drive for five minutes and you will probably encounter another store stocking two of the same brands.

In a world where mergers are rife so that manufacturers can effect economies of scale and selling/distribution savings we, in many instances, are doing the exact opposite. Fragmenting purchasing power, incurring unnecessary admin costs and diluting economies of scale. Maybe there is a bit of a benefit of spreading credit, but that is a ghost in the machine.

Why can’t a store in any given town be the ultimate brand store for a particular manufacturer, with full ranging of the brand and good support from that manufacturer?

Difficult times mean difficult decisions.

But really, are they that difficult? Look around your store and ask yourself these simple questions.

– Are you using and leveraging your purchasing power wisely?

– Is the cost-of-credit balancing act correct for your business?

– Are you a creature of habit, locked in an inertia, created by business challenges?

– Are you talking real business with your top suppliers or just discussing sport and recession tales with their sales people?

– Are you differentiating your store with your product offer?

– Are you differentiating your store with your customer service proposition?

– Do you have a plan to change things in your business … or are you just going to let other people and things change your business?

Only you can tell of course, so think it over.

Stock Control Last year I visited many paint and hardware stores throughout Ireland. In one store I was amazed that the owner had a huge display and stock of the same product filling one shelf. Not unusual for

What do you think?

The Hardware Journal welcomes comment and feedback. If you have and opinion on this article, or what Sean proposes to cover in the next edition, please email your view(s)/question(s) to pat@thehardwarejournal.ie

20 THE HARDWARE JOURNAL

❙ December 2012/January 2013

a fast seller, but this display was of a specialist primer. Good earner, but not a fly-off. Great deal, special price summarises the ensuing conversation.

I left a €20 note on top of one of the cans. Within a few moments as we left the area I was reminded that I had left it and it could disappear. My response was that, if the owner didn’t mind leaving €1800 lying around the store, my €20 was nothing to worry about.

Now, I challenge you to look for all the €20 notes lying around your store(s).

Go on, spend 30 minutes chasing twenties and you will make yourself more money in managing stocks than you will in retailing them. Send me some comments on your success and we can share these on the The Hardware Journal’s website.

I would like members to send in ideas for a “keep fit” campaign on stocks and we might convene a workshop.

For years, hardware and paint stores did well from the concept of the ”spring clean”. Why don’t you gather up all the old dust-encrusted slow movers, discount them and turn a liability into a cash-flow management project? Stock is money. After a month or so, it becomes either your money or your liability. Either way, it’s yours and you’ve got to manage it.

Stock is of course the lifeblood of business opportunity, but if it is misaligned with demand trends, over-stocked or obsolete, it becomes an accelerant to business decline and financial instability.

Ready-mixed paints are fashion-driven.

Do you have any of the following?

– Obsolete colours from 3/4 years ago?

– Bashed up cans?

– Returned tinted paint?

– Old can design stock?

– Past shelf-life items?

Liquidate them … take the hit and generate cash. You will also please some bargain hunters.

• In the next edition of The Hardware Journal Sean will look at colour mixing/ tinting; display and choosing colour; selling related products; staff training; making friends with your suppliers.

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L CIA UE I F OF LOG A CAT

Hardware/DIY Home Garden Trade Show Ireland’s Only National Showcase

The next issue of The Hardware Journal will feature a major preview of the Hardware/DIY Home Garden Show 2013, including the Official Show Catalogue.

This is an excellent opportunity for manufacturers, distributors and agents to gain maximum exposure to a vast audience by way of advertising in the Official Catalogue.

Contact

Joe Warren Advertisement Manager The Hardware Journal Tel: 01 – 288 5001 Mobile: 086 – 253 7115 Email: joe@thehardwarejournal.ie

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Developed for the Independent by the Independent, Johnstone’s offers fantastic margin potential and excellent return on investment.

This superb colour range is sold exclusively through our network of independent retailers.

For further information and to take advantage of our new stockist deals contact us now on 01924 354600 or visit our website at www.johnstonespaint.com/becomea_stockist.asp

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December 2012/January 2013

❙ THE HARDWARE JOURNAL 21

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Ronseal driving retailer footfall This year was Ireland’s worst summer since 1986 and, not surprisingly, it resulted in a drop in retail footfall. Despite this, Ronseal continued to support the brand on TV, online and in store across Ireland.

“After such heavy rain there’s going to be serious upkeep needed in the garden”, says Denis Murphy, Brand Manager Ronseal Ireland. “We’re reminding customers of this through our investment in media and getting them to think of Ronseal when approaching their projects.

“The current recession means consumers are looking for value so next year we will continue to support the market with some great deals. Our added value packs across key fence treatments and decking products are good examples. For instance, we are launching One Coat Fencelife in a 4L Plus 25% pack, and Decking Stain 2L with 25% extra free for a limited time.

“The biggest category within garden woodcare is still fence treatments, which is also the category most affected by the poor weather. Brush-applied fence treatments still make up the bulk of this market. Our One Coat Fencelife and 5-Year Weather Defence Fencelife give the choice of convenience and performance. We’re re-launching 22 THE HARDWARE JOURNAL

our brush offer too – the Ronseal Fencelife Brush makes it easy for retailers to make linked sales and maximise profit margins.

“The slowdown in sprayable fence treatments is unsurprising during a recession. We We still fully support the category and

it remains, without doubt, the quickest and easiest way to protect a fence, so we expect to see a return in growth.

“The decrease in new decking being put down has led to a growth in decking maintenance products. This year we introduced a Decking Stripper that uses unique technology to enable decking to be stripped in a morning and then protected with a Ronseal coating the same day.

“Colour in the garden is another trend we can’t ignore.

Garden Colour is the fastest-

Denis Murphy, Brand Manager, Ronseal (Ireland)

growing category in exterior woodcare. Our Woodland Colours range offers a selection of 12 colours inspired by ancient woodland. Included are neutral tones like White Ash or Willow, and bolder choices like Bramble or Bluebell.

“Looking forward to 2013, we will continue to support the brand, reminding consumers to tackle the projects they put off in 2012. We’ve also got an excellent package of support for retailers from POS to consumer promotions.

Contact: Denis Murphy, Brand Manager, Ronseal (Ireland).

Tel: 01 – 294 4009; Mobile: 087 – 256 0601; email: dmurphy@ronseal.ie; web: www.ronseal.ie

IS Varian synonymous with quality Established in 1798, Varian is one of Ireland’s oldest companies and is still Irish-owned after almost 214 years. Today, the company is based in Walkinstown, Dublin 12, where its warehouse, administrative and sales operations are situated. A lot has changed in Ireland since Isaac Varian started the company but it is still carrying on the business of brush and paint accessory distribution in Ireland.

IS Varian’s comprehensive paint accessory products include paint brushes; roller sleeves; roller frames; paint roller sets; paint trays and buckets; extension handles; dust sheets; painters’ tools; sandpaper and masking tape.

IS Varian & Co is one of the leading suppliers of paint accessories in Ireland today. Marketing a comprehensive range, Varian’s paint accessory products cater for the professional tradesperson, as well as the growing DIY trade.

Varian products are brand leaders in the paint and DIY sectors and are available from leading hardware stores in Ireland. They The Varian Pro Painter range are synonymous with quality, a tradition in keeping with the ethos put in place by Isaac Varian 214 years ago.

Contact: Alan Walker, IS Varian & Company.

Tel: 01 – 450 1150; email: awalker@isvarian.ie

❙ December 2012/January 2013

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Crown on-trend shades for 2013 Spring/Summer colour Crown Paints has unveiled its renowned Colour Influences collection for Spring/Summer 2013, featuring inspired shades that will shape future specification projects. Focused on three new distinctive palettes, the launch reinforces Crown Paints’ continued leadership in colour forecasting and offers an on-trend, personalised look for your walls.

The three trends have been developed by the Crown Paints Colour Influences panel, a team of distinguished professionals and stylists assembled for the annual project.

The first palette, “Equilbrium”, offers a bold and contemporary focus, with a masculine edge. The palette is influenced by the colour confidence of early 20th century design movements. It features grownup primary colours, which inject vibrancy to a base of black, white and coolly-modern greys. In addition, graphic lines and angular arrangements give a gallery-like feel where colour and structure combine to create the perfect visual balance.

A more feminine palette is found in the second trend, “Mannequin”. Pretty but powerful, this gives equal balance to sweet

and strong colours. Taking inspiration from the catwalk, it sees flesh hues and soft pinks combine with pale greys and a touch of metallic silver to complete a beautifully-elegant picture.

The final palette, “Optimism”, brings together the uplifting energy of bubblegum pink, sunshine yellow and deep blue, and displays them against crisp white touches or backgrounds. Perfect for indoor and outdoor use, this palette suggests an upbeat sensibility.

Neville Knott, Crown’s Colour Consultant and presenter of TV3’s Neville’s Doorstep Challenge said: “The Influences for 2013 are thought-provoking and inspiring, with wonderful vibrant palettes that are both interesting and flexible.”

Contact: Crown Paints. Tel: 01 - 816 4400; email: info@crownpaints.ie www.crownpaints.ie; or Crown Ireland Facebook page.

Paint is our thing If you’re looking for a special colour, we can match it. If you’re looking for snazzy retro patterns or timeless contemporary wallcoverings we have them. If you’re looking for finishing touches, we have a wide range of soft furnishings. And if you’re looking for ideas, we can advise you. Albany is the home decor specialist in paint, wallcoverings, fabrics, blinds, soft furnishings and lightiing. We stock all the major brands and more – all at affordable prices. What’s more, we have home decor and decorating consultants available to help you create exactly what you want, and we’ll even throw in a few tips of the trade!

So to create an impression in your home, visit Albany today. With branches throughout Ireland, there’s bound to be a store close to you. Check our website for more info.

Albany Home Decor Specialists For Quality, Value and Service

Paints Lighting

Wallcoverings Curtains/Blinds Soft Furnishings

Thinking home decor… then think Albany Visit our website www.albany.ie

Nobody does decor better

• Athlone • Bailieborough • Balbriggan • Ballina • Ballyjamesduff • Belmullet • Castlebar • Cavan • Claremorris • Ennis • Limerick • Mallow • Monaghon • Mitchelstown • Navan • Nenagh • Portlaoise • Roscommon • Roscrea • Shannon • Sligo • Tralee • Tuam • Westport

December 2012/January 2013

❙ THE HARDWARE JOURNAL 23

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Fleetwood Bio-Tec beats bacteria Bio-Tec from Fleetwood is a range of specialist, cutting-edge coatings developed for use in areas where hygiene protection is needed. The advanced coating has been proven to significantly reduce the spread of disease and infection – from MRSA through to Salmonella and E.coli – alongside regular cleaning procedures.

Key to the effectiveness of Bio-Tec is silver ion technology.

The coating contains antimicrobial agents, including elemental silver, producing silver ions (Ag+). These silver ions rise to the surface of the painted area, attaching themselves to microbes and inhibiting growth.

Aside from its core purpose of bacterial control, Bio-Tec also delivers added maintenance benefits. Thanks to an acrylic resin, Bio-Tec is a scrubable,

Bio-Tec coatings from the Fleetwood range

durable coating, with excellent abrasion resistance that can withstand repeated cleaning cycles. It is also available in a 2-pack, water-based, epoxy for extra durability and chemical resistance.

It has already been successfully deployed in some of the most demanding of applications. These include St James’ Hospital in Dublin where it was applied in care units, main corridors, kitchens and sluice rooms, and the National

Maternity Hospital where it was used in the intensive care unit, hallways, day-rooms and wards.

Other recently-completed projects include applications in the Beacon Hospital, Galway Clinic, Castlerea Prison, Boston Scientific, Elan, Allergan Pharmaceutical and the Department of Defence.

Aside from Bio-Tec’s unique hygiene and maintenancerelated qualities, there are additional benefits to using Fleetwood products in painting.

Introducing Tec7 filler Contech Building Products specialise in supplying high-quality construction products for professionals with the aim of simplifying the work of all tradesmen. Its flagship range, Tec7, has become a household name in recent years, renowned for its ease of use, flexibility and multiple applications.

Just recently the range has been further extended with the addition of the innovative Tec7 Filler, the all-in-one filler and finishing plaster for indoor and outdoor use.

As you would expect with the renowned products in the Tec7 family, the new Tec7 Filler is a high-quality product that can be used for many applications, indoor or outdoor. It has outstanding adhesion to all porous materials, fills gaps up to 30mm, dries without shrinking or cracking, is lightweight and snow white.

Tec7 Filler is also flexible, quick drying and has a claimed shelf life of 24 months, even when opened. It is available in four sizes including a 300ml cartridge that is ideal for use with any application gun.

Contact: Andrew d’Arcy, Contech Building Products. Tel: 01 – 629 2963; email: andrew@contechbuildings.ie; www.tec7.ie

24 THE HARDWARE JOURNAL

❙ December 2012/January 2013

One of these is the sheer breadth of the company’s colour range.

The Fleetwood colour mixing system offers over 30,000 shades, ensuring that the perfect colour is available for every space within a project.

Fleetwood has also implemented a robust environmental management policy with new manufacturing processes to minimise adverse environmental effects being introduced daily. In addition, new techniques in manufacturing and distribution systems help produce less waste. In recognition of these achievements, Fleetwood was the first company to be awarded the EU’s premier environmental accreditation for paint, the Eco Label.

Aside from its own history, Fleetwood has a long-standing partnership with Sherwin Williams, a world leader in paint coatings, dating back to 1978.

Together, the two companies have successfully supplied chemical coatings and industrial maintenance paints with combined technology to some of the largest companies around the world.

“With a proud history of quality – and a game-changing innovation in Bio-Tec – Fleetwood paints has distinguished itself as a key provider for this challenging sector”, says spokesman Tom O’Connell.

Contact: Tom McConnell, Fleetwood Paints.

Tel: 01 – 455 2411; email: tom@fleetwood.ie; web: www.fleetwood.ie

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Albany – ‘nobody does décor better’ Albany Home Décor has been at the forefront of the paint business in Ireland for over 20 years while many of its members have been leading independent paint and décor specialists for generations. This experience and know-how has stood Albany member stores in stead through the worst economic downturn that almost anyone can recall.

In particular, Albany’s nonreliance on a single segment of the décor market, coupled with a typically low financial gearing,

has helped to keep turnover relatively healthy and costs manageable. Just as importantly Albany stores continue to offer choice, value and advice to customers depending on budget and project specification.

Albany has also worked closely with suppliers to get best value and relevant product promotions and has also embraced developments in the paint sector to help offer the customer more. Some of the noticeable trends and developments in the sector in

Albany stocks all the major brands, and more, at affordable prices.

recent years on the supply side have been innovations in product specification and formulation to meet new EU VOC environmental standards like acrylic gloss and

Dulux ‘Home Factory’ interiors trend As the largest paint manufacturer in Ireland, Dulux keeps its fingers very firmly on the pulse of emerging colour trends. Each year its experts from its Aesthetic Centre meet with an international group of creative experts from the fields of design, architecture and fashion to determine the key colour trends for the forthcoming year. One of the latest trends identified for Winter 2012/2013 is called Home Factory, and is said to “facilitate the industrious soul buried deep within all of us … harnessing the time we spend in the home”.

Home Factory is the look for Winter 2012/2013, and brings creativity to the fore in the home. It is all about home manufacturing, creating things in the home, on a tiny and personal scale. The style of the interior should be a reflection of how you occupy the space. Bold dark statement wall colours such as Dulux Moon Waves 1 fill the space, contrasting with elements against the surface that pop and snap against it. Awe-inspiring soft teals such as Dulux Sea Urchin 2 go brilliantly with richer petrol-like blues and all types of natural greens, whether yellow or blue toned.

Home Factory encourages everyone to re-think the way they live and re-purpose everyday items to make a space more engaging and interesting. Reconnecting with what makes you happy is the perfect antidote to consumerism and creates a new style that is human centered.

To stay on trend, draw inspiration and decide on colour, log on to www.dulux.ie.

Contact: marketing@dulux.ie

December 2012/January 2013

undercoats to replace traditional oil-based paints.

Also, manufacturers have pushed the product differentiation model and upped the performance and application scope of products such as scrubable matt finishes and highly-durable anti-mold exterior paints.

Many manufacturers have also responded to demands for less abrasive or harmful effects by making anti-allergy paints for hospitals and nursing care facilities, and energy efficient insulating coating to compliment sustainable living demands.

Another notable feature has been the gradual proliferation in designer colour ranges with high-quality chip paint cards for true colour representation.

Customers can buy sample colour sheets and mini-designer tester pots, often resembling a cosmetics jar more than a traditional paint pot! This designer movement is based on extensive tinting options for the customer and is presented in fabulous Colour Walls and Display Cabinets.

These unlimited colour options and quality displays have helped Albany and other quality specialist décor independents to offer a full in-store or on-site Colour Consultancy service as, despite the extensive colour aids, most customers still want advice when choosing colour.

Contact: Padraic McGuinness, Albany Group Development Manager. Tel: 094 - 902 1821; Mobile: 087 - 418 7451; email padraic@albany.ie; www.albany.ie

❙ THE HARDWARE JOURNAL 25

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United Hardware forges ahead Over 100 exhibitors participated in the United Hardware trade show which took place at the Citywest Convention Centre recently. part from product displays, there were also a number of informative seminars. These included presentations on St Gobain’s new G3 Soft Touch Insulation, the Aqualux range from Dulux, Maximising Bostic Adhesive sales, Ronseal new product demonstration and how to up-sell flues by MI Flues.

The New Product Area generated a great deal of interest with 120 new lines on offer.

Winner of the best new product award was St Gobain for its new Isover G3 mineral insulation roll. The attendance was very good with over 80% of the membership who came along actually doing business.

Other United Hardware news concerns new store fit-outs and revamps taking place nationwide. These include Grange Homevalue, Baldoyle, where a major store extension involving the addition of a mezzanine floor serviced by two escalators has been completed. Bandon ARRO had an official opening on the October Bank Holiday Weekend of its new 12,000 sq ft retail store with Eoin Cadogan performing the honours.

Promotional campaigns continue to enjoy significant support among the membership with over three million ARRO and Homevalue leaflets distributed throughout the country from the start of the year.

Meanwhile, the Associated Hardware directors have appointed Paul Thompson as Interim CEO of Associated Hardware.

Previously he was the Financial Director of the KAL Group and the Mulvey Group.

All of this comes on the back of the very

A

Tony Anderson, Berger Paints with Mike Kelly, Richard Cummins, Cummins Homevalue and Clarke Blair, Berger Paints.

Grange Homevalue, Baldoyle has completed a major extension.

David Farrell, Commercial Manager, United Hardware (right) presents the United Hardware Best New Product Award to David Rossiter and James Dunne of Isover Ireland.

26 THE HARDWARE JOURNAL

❙ December 2012/January 2013

successful industry conference held in Croke Park earlier this year which attracted 300 owners and managers. “This”, says David Farrell, Commercial Manager of United Hardware, “along with initiatives in buying, New ARRO end cap operational signage. support and marketing, continues to ensure that United Hardware performs strongly in all its members’ interests.”

Contact: John Stone, CEO National Hardware. Email: john@arro.ie; Paul Thompson, Interim CEO, Associated Hardware. Email: pthompson@ahl.ie.

Tel: 01 – 461 1800 (for both).

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It all happens at The HAI President’s Ball Come celebrate all that is excellent in the

RELAX …

hardware industry and avail of a unique opportunity to network with your colleagues and the industry’s most influential suppliers and buyers.

BOOK NOW Contact Valerie at Tel: 01 – 298 0969 NETWORK …

Email: valerie@hardwareassociation.ie

STAY OVER …

Citywest Hotel, Saggart, Co Dublin • February 16 2013 Sponsors:

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The Interview: BRENDAN MAHER PRESIDENT, HARDWARE ASSOCIATION IRELAND

‘CAN-DO’ ATTITUDE SET TO MAXIMISE INDUSTRY POTENTIAL Given the dramatically-changed nature of the hardware sector in recent years, the IHBMA has spent the last 18 months or so doing a thorough examination and appraisal of how it engages with its members. In particular it looked at the services it provides, and assessed from survey feedback just what it is members require going forward.

Most of this analysis has taken place under the stewardship of current President Brendan Maher who, with the massive support of his fellow Board members, has formulated a dynamic strategy that will secure members’ current and future interests in the face of the most challenging trading environment the industry has ever experienced.

“Taking on the role of President with the industry and national economy at such a low ebb may have seemed like accepting the proverbial poisoned chalice to some”, says Brendan, “but the reality was very different. On assuming office I discovered a Board of Directors and supporting Executive who were totally committed to members’ interests.

“In addition to a strong and driven 28 THE HARDWARE JOURNAL

Let us celebrate the 75th anniversary milestone of the Association by supporting, and participating in, the new initiatives being rolled out by the HAI Executive

❙ December 2012/January 2013

desire to transform the Association into a modern-day, dynamic organisation, the wealth of business acumen and experience represented on the Board meant that we had the means to deliver to that high ideal.

Challenging times call for strong leadership and a confidence to take bold-decisions.

Thankfully my Board colleagues did not shirk from this responsibility.”

It might seem ironic to mark the impending 75th anniversary of the Association by changing its name but that is precisely what Brendan and his fellowdirectors have done. “This is not a cosmetic exercise”, says Brendan, “but a declaration of intent to current members, and potential new members, that we are an organisation for the present and future.

Our aims and objectives are progressive and we now have a strategy and structure in place to implement and realise them. We wanted to reflect that in a new identity.

“The name Hardware Association Ireland (HAI) reflects the core base of the industry, but we have also reclaimed the word hardware to encompass the expanded and all-embracing nature of the business as it stands today. In addition to traditional hardware and building materials, it now also includes DIY, housewares, garden, workwear and pet products.

“While we should all be proud of the history and past achievements of the IHBMA, the best way to celebrate that success is to use it as a platform to kickstart a new era of growth and development that will see the HAI emerge as a bigger and stronger association, better able to serve not only the membership, but the industry at large.

“HAI is unique in that the membership represents a broad mix of retailers,

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The name Hardware Association Ireland (HAI) reflects the core base of the industry, but we have also reclaimed the word hardware to encompass the expanded and all-embracing nature of the business as it stands today.

December 2012/January 2013

â?™ THE HARDWARE JOURNAL 29

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agents, distributors and manufacturers.

It is made up of family-run single and multi-branch outlets, through to national chains and publicly-quoted conglomerates.

A network of almost 800 nationwide outlets provide employment for over 12,000 people who in turn deliver excellent products by way of professional service to their local communities.

“HAI is now the first point of contact for information, advice, networking, training and support for the membership.

Our objective is to capitalise on this strength and to ensure that it is recognised and respected as the true voice of the industry. Over the next year we intend to communicate the strength of what we represent to Government, other trade organisations and relevant professional bodies in a manner that will benefit the membership and promote our collective interests.

“In this respect communication is of

“

major importance. Hence the decision to establish our own industry trade publication, called The Hardware Journal.

This will provide the perfect conduit for all involved within the industry to communicate with one another, and for the HAI to promote and project the best interests of the sector to a much wider audience. In addition to a printed edition, The Hardware Journal will also be available in a soft-copy version online.

“My message going forward is clear.

Despite the current difficult trading environment, we in the hardware sector have a history and tradition to be proud of. It represents a ‘can-do’ attitude that we can harness to be creative and inventive, to identify new opportunities, and to devise strategies to maximise the potential they offer. The blueprint for that is now in place so, let’s celebrate the 75th anniversary milestone of the Association by supporting, and participating in, the new initiatives being rolled out by the HAI Executive.”

Our aims and objectives are progressive and we now have a strategy and structure in place to implement and realise them.

Membership benefits

”

Hardware Association Ireland provides a range of training, education and advisory services to members, in addition to an extensive programme of networking opportunities. HAI is also a nominating body for the Seanad and regularly meets with, and lobbies, Government Ministers, TDs and Senators on Irish and EU legislation affecting the sector. Finally, there is the HAI flagship event, the biannual Hardware/DIY Home & Garden Show (see www.irishhardwareshow.com).

Services • Seminars, workshops and training events • Legal and human resources advice • Health and safety advice • E-business/EDI electronic trading • Shop design/layout advice • Credit best practice procedures • Health insurance discounts • Complimentary trade journal • HAI Benevolent Fund • Affinity deals on utilities, card payments and insurance

30 THE HARDWARE JOURNAL

❙ December 2012/January 2013

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HARDWARE ASSOCIATION IRELAND

GOLF SOCIETY NEWS Society President Willie Dixon, and Captains Eddie Kelly and Marian Kelly, wish all members and friends a very Happy Christmas and hopefully a successful New Year.

Report: Gus Mullarkey, PRO As you are already aware, Willie Dixon played his last golf outing as President at his own club, Naas, on Friday 17 August. We had a tremendous turnout for this outing which was our last for 2012. The day turned out very nice and we had a most enjoyable day’s golf.

I must say Naas Golf Club pulled out all the stops to make us so welcome, and served up an excellent dinner in the evening.

The sponsor (as always for our President’s Prize) was PE O’Brien & Sons/Stanley Black &

• HAI President Paddy Kelly’s Prize Venue: The Heritage Golf Club Date: Friday 26 April Sponsor: Crown Paints

Decker. Niall Byrne, PE O’Brien Sales Director, was our host on the day. After dinner President Willie thanked Niall for his great sponsorship and his magnificent selection of prizes. Captain Eddie Kelly also thanked the sponsor, and all members and friends, for their continued support. Niall then replied and thanked Willie for having PE O’Brien as the sponsor, and stated that the company would continue to do so into the future. Niall and Willie then presented the prizes to the winners.

Top: Mens overall winner Jim Copeland with President, Willie Dixon. Centre: Runner-up Liam Barrett, with sponsor Niall Byrne. Bottom: Ladies Captain Marian Kelly with sponsor Niall Byrne and Ladies winner Josephine Glennon.

Results from President’s Outing, Naas

• Denis Burke Memorial Cup Venue: Mount Wolseley Date: Friday, 31 May Sponsor: Bostik/Evode

Ladies First: Josephine Glennon; Second: Sandra Barrett; Third: Aine Parks; Fourth: Marian Kelly.

• Captain Joe Wallace’s Prize Venue: Rosslare Golf Club Date: Friday 28 June Sponsor: Irish Abrasives

Class 1 First: Basil Glennon (14) 34pts; Second: Tim Lodge (12) 34pts.

• President Jim Cuddy’s Prize Venue: Carton House Golf Club Date: Friday 6 September Sponsor: PE O’Brien/Stanley Black & Decker • Overseas Trip The overseas trip to Portugal will take place from 1-8 October 2013.

Details to follow.

Mens First: Jim Copeland (18) 39 pts; Second: Liam Barrett (12) 36pts; Third: Niall Barry (7) 36pts.

Class II First: Ray Colman (18) 35pts; Second: Liam O’Gorman (17) 33pts.

Class III First: David Bolger (20) 33pts; Second: Paddy O’Leary (21) 32pts.

Front Nine Joe Wallace (13) 18pts Back Nine Kieran Burke (13) 19pts Visitors First: P Morrissey (13) 37pts; Second: Colm Madden (12) 32pts.

December 2012/January 2013

❙ THE HARDWARE JOURNAL 31

Hardware e-zine Nov 2012:Layout 1

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Over 500 brands exhibiting

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Expert Hardware Paprika Design

PE O'Brien & Sons

Olympic Fixings Irl

Crown Paints

Crestwood Gardens

Contech Building Products

M Donnelly & Co

Liffey Distributors

Kilsaran Group

Kamco Supplies

John Stafford & Sons

Wood Mouldings

Wogan Distributors

Westland Horticulture

Westaro Hosing

Wes-Chem Products

WEEE Ireland

Varian & Co

United Hardware

Tucks Fasteners & Fixings

True Temper

Tippland Horticulture

The Toolbank Group

The Specialist Group

The Chanelle Group

Tegral Building Products

Targetdry

TI Midwood & Co

Stax Trade Centres Plc

Sprayquip

Snickers Workwear

SHS Sales & Marketing

Scully.ie

Sasta Hardware

Sanbra Fyffe

Rothwell Industries

RNH Solutions

Rhino Industrial

Reisser (Irl)

Rawlplug Ireland

Premier Homewares

Polypal

Peterson of Dublin

Flair International

IQ Supplies

Intact Software

Home Trends

Hi-Tec Sports UK

Henkel Ireland

Hardware Association Ireland

Hamble Distribution

Gyproc and Isover Ireland

Gorilla Glue Europe

French Trade Commission

Fleetwood Paints

There will be thousands of individual products from over 500 market-leading brands represented by leading companies such as: Agility Software Amalgamated Hardware Aquasource Distributors Arc Building Products Ashtown Trading B&G Limited Bord Na Móna Horticulture Bostik Industries Burke Bros Son & Co C-Tec Ireland Castle Paints CCEC Distributors Central Key & Hardware Co Irish Wire Products

Curust Industries

Margin Master

J B Key Co

Centurion Europe

Delph Centre

Marsan Industrial SA

Jefferson Tools

Dosco

Charles Bentley

Draper Tools

MAX6MUM SECURITY

CJ Sheeran

DS Supplies

McLoughlinsRS

John Dargan & Sons

Dulux Paints Ireland

McQuillan Wholesale

Clarke TW

Dycon

Need s Sign

Classic Hardware

EPT (Irl)

Nilfisk

John Murphy (Castlerea)

Everbuild Building Products

Ohra Regalanlagen GMBH

N & C Enterprises

Eveready Excel Industries Excellence

Show to premier Association name change Hardware Association Ireland (HAI) is the new name for the Association and the show will be the first significant industry event at which the new identity will be showcased.

Over the last 18 months the Association has undertaken a major review of its aims and objectives, the services provided, and the expectations of the membership. As a consequence, it devised a dynamic new strategy to take the Associaton forward, and to better represent members’ interests in the face of today’s dramatically-changed trading landscape.

With a programme of new and revitalised services to roll out over the course of 2013, the Executive decided to reflect these initiatives in a new name and logo.

It is appropriate that in celebrating its 75th anniversary, the Association is looking to the future, and putting strategies in place that will secure its growth and development over the next 75 years.

Retailers have broadened their horizons to complement traditional hardware/diy and building materials lines with housewares, garden, workwear and pet care products

Art Freedman Once again Ace Hardware retailing guru Art Freedman will identify key challenges facing the industry and, in his usual laidback but incisive style, tell you how to combat them.

New products extravaganza

Hundreds of new products from leading brands will feature at the show. They will be profiled on exhibitors’ own stands but many will also feature on the dedicated New Product of the Show Awards display area. This is an ideal location from which to start your visit.

Free seminars and workshops

Seminars and interactive workshops are an essential and very popular element of the Show programme. Quite a number will take place over the two days of the show – check out the details to maximize your visit.

For stand enquiries contact: Maureen Ledwith at Business Exhibitions. Tel: +353 (0)1 291 3700; email: maureen@bizex.ie

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New judging process and awards Following detailed research among builders merchants, the 2013 Octabuild Awards see major changes with a revamped judging process, new criteria and a new awards structure.

34 THE HARDWARE JOURNAL

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Judging process In a significant change from the previous formula, the judging of next year’s awards will be carried out by James Burke, an independent expert in retailing. James has almost 30 years retailing experience, ranging from shopfloor to boardroom level, and is the retail adviser to the TV series Retail Therapy, hosted by Feargal Quinn.

James is one of the few people in Ireland with an MBA in Retailing and Wholesaling, and he has been involved in auditing internal store competitions for a number of major retail chains. He also regularly hosts management development programmes for retailers.

Every entrant for the Octabuild Builders Merchant Awards 2013 will be visited between January and March 2013.

John O'Dwyer, Kilrush Co Clare is the current holder of the National Octabuild Builders Merchant Award. Pictured at the awards ceremony last year are Kieran O’Boyle, Bernard O’Dwyer, Pauline Cahill and Fergal Galvin.

❙ December 2012/January 2013

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Awards categories

The Round Room at the Mansion House Dublin, venue for the 2013 Octabuild Builders Merchant Awards.

About the Awards

While the number of awards will be reduced, more merchants will be acknowledged for the quality of their business through a nomination process. A shortlist of merchants will be nominated for the following award categories: – Overall Award – Dublin City and County – Leinster – Cork City and County – Connaught/Ulster – Family Business – Independent Merchant – Group Branch – Innovation The Octabuild Builders Merchant Awards has been honouring the best in the builders merchant trade since 1986.

“Builders merchants who have entered the awards have seen great benefits in terms of staff motivation and the incentive to improve standards and customer service”, said Octabuild Chairman Michael O’Donohue.

• The Octabuild Awards are the longest-established and most prestigious awards for builders merchants; • The judging process, criteria and range of awards is in line with requests from merchants; • Every entrant receives pre-judging advice; • Following the judging every entrant receives a report; • All nominees are invited as Octabuild guests to the gala Awards night; • The Awards are supported by Hardware Association Ireland (HAI) and Retail Excellence Ireland.

Expert panel An expert judging panel made up of James Burke and representatives from HAI, Retail Excellence Ireland and Octabuild will assess and ratify all the marks and reports from the judging process.

Michael O'Donohoe, Chairman, Octabuild.

Presentations and venue The Octabuild Builders Merchant Awards will be presented at an awards ceremony in the magnificent Round Room of the Mansion House in Dublin on Thursday, 19 May 2013. All merchants nominated for the 10 awards categories will be invited as guests of Octabuild. During the awards ceremony Octabuild will also present an award for Outstanding Achievement.

Criteria Another radical change to next year’s awards is that the bulk of the marks will be awarded for Business Management and Customer Service. This will provide a better balance of marks between these qualities and visual identity/ merchandising/housekeeping.

Exterior of John O'Dwyer outlet in KIlrush.

See www.octabuild.ie/awards.

December 2012/January 2013

❙ THE HARDWARE JOURNAL 35

Better Business:Layout 1

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THE HARDWARE JOURNAL

BETTER

By Declan Carolan,

General Manager, ECR Ireland.

business

Declan was formerly Director of Professional Services at GS1 Ireland, and Supply Chain Manager at Superquinn.

Contact: declancarolan@ecrireland.ie.

WHAT GOES WHERE? A process to lay out a store to ensure every category is allocated the correct space Every time I visit a retail store I view it from two perspectives – as a retailer and as a customer.

With my retailer hat on first impressions are vital. The appearance, cleanliness and level of product availability are tell-tale signs as to how well the store is being managed. However, as a shopper, I am always intrigued as to why the store is laid out the way it is. What goes where? What products are being featured? Which categories are being allocated the most space ... and why?

These observations can give an indication of what is trending. In an age where we are bombarded by constant advertising stimuli, particularly the online dynamic, shoppers are more and more relying on their in-store experience for product research and final purchase decision-making. Consequently, this has

“

given rise to the explosion in the effectiveness of “shopper marketing” in recent years.

Of course, I will only use a retailer as a source of inspiration as long as I feel that the outlet in question is representing the latest trends. For me, a vital component in this involves changing the store layout according to changing consumer demand, and even according to anticipated future demand.

Irish consumers have significantly changed their purchase behaviour since 2008. We all know this. For instance, certain home improvements have soared in popularity while others have bombed.

Accordingly, every hardware retailer worth his/her salt has considered the space-tosales ratio of their product categories and re-organised the store layout to accommodate these changes.

Most store owners and managers have so many shortterm tasks to deal with that embarking on a project to consider the optimum store layout tends to get put on the “long finger”.

36 THE HARDWARE JOURNAL

❙ December 2012/January 2013

”

Right? … maybe not!

The reality is twofold. Most store owners and managers have so many short-term tasks to deal with that embarking on a project to consider the optimum store layout tends to get put on the “long finger”. Secondly, such a project can often appear too daunting and complex with retailers not knowing where to start, never mind how to go about it.

However, it need not be so. Help is available from many sources. For instance, ECR Ireland recognised these characteristics and has developed a process (see Figure 1) that should be instantly understandable.

This process is explained in a free guide entitled “How to layout a retail store – a practical guide to macro space planning”.

Central to it is the 3-stage “ECR Ireland Macro Store Planning Process”. By following this process and adhering to the practical tips contained throughout the Guide, store owners should be able to complete their very own macro space plan.

In addition, case studies of projects that adopted the process during 2012 are included. They show that the capital and

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Figure 1: ECR Ireland Macro Store Planning Process

labour cost incurred by following the Guide and implementing the recommended changes were low and affordable.

Significantly, both case studies recorded positive results with one showing a 1.5% increase in cash margin and the other recording a 3% increase in sales. These are enormous increases by today’s retail standards.

In assessing whether this Guide is of use to your business, consider the following: – Do you know how to lay out your store to maximise the space to sales ratio of every category?

– Is the store layout representative of the needs of today’s shoppers?

– Does your store layout satisfy shopper missions?

If answering negatively, I am certain that conducting a macro space analysis of your store every two years or so will generate merchandising opportunities and drive

Free ECR Guide The ECR Ireland “How to lay out a retail store – A practical guide to macro space planning” can be downloaded free of charge at www.ecrireland.ie. ECR Ireland also runs regular training courses that show retailers how to use their own sales data to prepare a macro space plan.

sales growth. The analysis should consist of three stages.

Stage 1 – Business planning (Steps 1 – 3) • Get ready • Internal and external environment • Retailer/store objectives This stage should be seen as an information building exercise designed to create a current picture of the store/stores, and an understanding of the retailer’s store objectives, budgets and focus. It is a crucial step to understanding and agreeing the extent of the process while considering dynamics unique to the store.

Stage 2 – Information and insight (Steps 4 – 6) • Data gathering • Data analysis • Prioritise opportunities

Whether data rich or poor, all available information sources are collated, reviewed and broken down to the lowest level, to understand the market and store performance and dynamics.

Managing and comparing differing information sources means aligning data to ensure they are comparable, thus allowing greater benchmarking. The principle of benchmarking is integral to the process as this will show whether particular categories are over or under trading – both of which will require remedy in the store plan.

Stage 3 – Store solution (Steps 7-9) • Store map • Implementation • Review The macro store plans are developed either through store planning software or a manual approach. Implementation is key to success, therefore a plan is put in place with time designated to review the store solution. The output should be a store plan that reconfigures shelves and aisles and category adjacencies to optimise basket size for the total shopping trip.

However, there’s more to this than relative gains in yield per square foot.

Retailers intuitively realise that the space declines will come primarily in “commodity” categories that contribute little or nothing to their store’s equity and uniqueness versus the competition. They recognise that any freed-up extra space can be given to products and categories that can provide real distinctiveness.

For me, as a shopper, this distinctiveness will set the store apart and be the strongest indicator that it is representing current trends.

This is what we call macro category management or macro space planning.

In the US they call this process Total Store Optimization and it is all the rage at present.

These are exciting, rapidly-changing and highly-competitive times. Retailers need to use all the new tools to help them survive and thrive – maximising your store layout is essential.

December 2012/January 2013

❙ THE HARDWARE JOURNAL 37

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View from

Michael Bergdahl

Former WalMart Director of People

10 things Walmart doesn’t want you to know Retailers can compete, survive and thrive in a big-box world Michael Bergdahl is a professional international business speaker, author and industry consultant.

Bergdahl worked in Bentonville, Ark., for Walmart, as the director of “people” for the headquarters office, where he worked with Sam Walton.

He is considered an authority on Walmart competition and has appeared on CNN, CNBC, CNN FN, MSNBC, CNN International, CBS National Radio and Bloomberg TV. He has participated in internationally televised news debates on “Power Lunch,” “On the Money,” “Morning Call” and “Closing Bell.” He maintains a Walmart competition blog on his website.

Bergdahl is also the author of three books about Walmart and Sam Walton and has delivered keynote speeches and full-day master classes in cities on six continents.

Contact: Michael Bergdahl at mbergdahl@aol.com or visit his website www.michaelbergdahl.net.

38 THE HARDWARE JOURNAL

THE HALLMARK OF great hardware merchants is, and always has been, providing great service. That’s the main reason most of your customers cross your threshold in the first place.

T

hey’ve come to rely on your team’s product knowledge, sage advice and project expertise.

However, if your team doesn’t provide “knock-your-socks-off” service all the time, your customers may as well shop at the self-service big-box stores. By committing your team to providing great service, one customer at a time, you will positively affect customer loyalty.

It’s true – great service can effectively neutralise the big-box discounter price

❙ December 2012/January 2013

advantage and level the competitive playing field for you. Don’t ever forget the most important lesson your hardware merchant forefathers knew instinctively: “Great service trumps low prices.”

Hardware store owners must take advantage of the fact that shopping at big-box discount behemoths isn’t convenient for customers, especially with service, which is sporadic or even nonexistent. You can leverage your store’s stellar service and tailored product

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assortment to create a hometown competitive advantage.

When your team discovers that providing great service to your customers minimises the pressure on product pricing, it can be tantamount to the discovery of fire!

To help you to focus your team, here are ten service lessons you can use to turn great service into a competitive advantage: are not a discounter, don’t 1: Iftryyouto act like a discounter By their very nature retail merchants are highly competitive people who relish the opportunity to take on aggressive competitors. Unfortunately, when it comes to category killers, hardware store operators need to avoid the temptation of getting into price wars.

By playing the discounters’ game you are playing right into their hands. It’s a trap they’ve set for you, and a competitive battle they’d love for you to wage. It’s a battle they must win, and they will win at any cost. Once they suck you into pricebased competition, your business will begin to spiral downward (expenses will rise as sales volume falls), and there is no turning back.

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Additionally, by sending the message to your customers that you are a discounter you will have changed their expectations – forever. Always remember “everyday low prices” is a volume-based discounter’s strategy; it is not yours. Control your own destiny by designing your niche strategy with products targeted at local tastes and preferences and back them up with great service. customer service starts before 2: Great a customer ever enters the store It’s the little things that matter. Are your floors, windows, shelves, aisles, parking lot and bathrooms clean? If you think about it, customers either overtly or subliminally may assume that dirty facilities equal poorquality, over-priced products.

Are your shelves always well stocked?

Simply being able to find the products they want and need gives customers the feeling there is no reason to shop anywhere else.

Is your staff in place and ready to serve?

Are your cashiers at their registers?

Customers can shop in your store for an hour, but when it’s time to check out they want to check out now! Customers hate to wait, so train your staff accordingly.

loyalty programs are a 3: Customer way for hardware stores to show they are loyal to their customers – not the other way around The strategy behind loyalty programs is brilliant: You reward customers for continuing to shop at your store by providing products and services only available to cardholders. Retailers have found customer loyalty programs to be highly effective, not only in retaining existing customers but also in gaining new customers. A loyalty program is both a highly effective customer retention program and one of the most effective tools you can use to combat the pressure of discounters moving into your market area.

One of the best ways you can build customer loyalty is by branding your store by participating in a cooperative merchandising, buying and promotional program with your symbol group or wholesaler. Another great way to reward your customers is with exclusive promotional product offers you can create by partnering with your branded product manufacturers.

Walton, the founder of 4: Sam Walmart, taught his employees to ask unhappy customers the question, “What would you like us to do?” His employees were then empowered to fix the problem.

Those of us who work in retailing know the old adage, “the customer is always

December 2012/January 2013

❙ THE HARDWARE JOURNAL 39

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right,” isn’t literally true, but when it comes to our customers we must act as if it were.

Your employees must always project a positive attitude and respect for your customers’ point of view. It is never appropriate to argue with your customers; if you do, you’ll find the outcome is negative for your business. You may win the argument sometimes, but you will more often than not lose a customer.

What is one customer who shops in your store several times a year worth? If you treat customers right you can likely count on future business and even good word-of-mouth advertising. Argue with and

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poorly they’ll vote with their feet by doing business with your competitors. Adopt the attitude that your customers are always right and you’re on your way to establishing customer relationships that may last a lifetime.

5: Out of stock is out of business

Walk through your own store as if you were a customer. What do you see as you peruse your own aisles and shelves? Are there unmerchandised products in boxes on the floors? Are you able to navigate the aisles easily with a shopping cart? Are there holes in your inventory where products are missing?

Great execution of store operations strategies requires a commitment to

Your knowledgeable staff providing great customer service is the single most important competitive advantage you have in the marketplace

If products aren’t there, do you think your customers simply forego purchasing that item until you get it back in stock, or do they simply go to your competitor to make the purchase? Why give your customers a reason to even think about shopping at your competitor’s store?

It may sound funny – and is as basic as it sounds – but those who are able to keep their shelves consistently in stock are creating a sustainable competitive advantage in the marketplace.

Operationally, nothing is more important to your store’s success than to be in stock consistently.

6: Stack it high and let it fly

When you advertise promotional products, make certain to buy enough to ensure advertised products are available throughout the promotion. There is nothing wrong with being promotionally oriented as long as you take the risk of buying sufficient inventory to back up your promotions. Few things are more annoying to customers than to go out of their way to shop at a store for a specific product advertised at a great price and then find once they arrive at the store that it is out of stock. This is one of the fastest ways to destroy your store’s reputation and drive customers away. Never build an expectation and then fail to deliver on it. an outside-in approach to 7: Use selecting products and services

debate with your customers and ultimately prove a customer wasn’t right, and you are likely to lose that customer for life. That former customer will also tell everyone he or she knows about their bad experience in your store. That’s the customer service version of “winning the battle, but losing the war.”

Remember: Your employees can’t afford to have a “bad” day, because if it weren’t for your customers, your store would be out of business. If you treat your customers 40 THE HARDWARE JOURNAL

training your entire staff to re-merchandise shelves aggressively throughout the day.

Being in stock is the ball game in retailing, and those who execute their merchandising strategies the best will increase sales and improve profitability. Visit the discounters and you will see how they are failing to keep products in stock throughout the day.

This creates a competitive opportunity for you. Customers expect to find the products they want to buy on the shelves each and every time they shop your store.

❙ December 2012/January 2013

Selecting the right products for his stores and his customers was one of Sam Walton’s great secrets to success. He used an outside-in approach to picking products.

He visited his stores and simply asked his own customers every day what they liked or disliked in the product mix and what products were missing that they wished he’d carry in his stores. This approach is still in use today by the company’s product buyers who travel out to stores each week.

Hardware store operators can seek product and service ideas from customers who are already shopping in your store.

Regardless of the method you use, it is vital

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to gain product insights directly from your own customers. are the boss and they can 8: Customers fire you by simply deciding to spend their money elsewhere Do you know who pays the bills at your business? I am talking about rent, lights, gas, electric and even your pay and benefits. The answer is of course your customers, because they choose to spend their hard-earned money on your products.

But they can change their buying habits, and they do it all the time. Don’t ever forget they can choose to walk away from your store in favor of spending their money at your competitor’s store.

What are you doing to make your customers want to continue doing business with you? Are any of your employees taking your customers for granted? There are plenty of alternative sources for hardware products, so be sure to explain to your employees that the customer is “the boss” and the importance of providing great service. hop your competitors’ stores and 9: Sstudy their pricing, products and promotional activity and look for ideas you can copy Hardware store owners and operators need to make it a practice to study their local competition. Study your competitor’s pricing structure, products and promotional activity. Don’t limit yourself to other hardware stores, either. Visit specialty stores for ideas for merchandising, graphics and signage.

Let’s face it: There is no business more transparent than retailing. You can shop your competitor’s stores and they can shop yours. Sam Walton believed in “stealing ideas shamelessly” from his competitors’ stores by simply walking into their stores and observing their operations. He always told us that there are no extra points for original thinking. He believed that if you can copy an existing idea already in use by another retailer it is much cheaper than designing a solution from scratch yourself.

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Pay particular attention to ideas you can bring back and use immediately to improve service to your customers.

Walton intentionally put his 10: Sam return desk at the front of his stores so all the customers in the checkout line could see how customer problems were handled When customers make a purchase it is quite easy to smile and thank them for their purchase. However, how do your employees react when that same customer tries to return that purchase for a refund or a replacement?

Your cashiers are well trained to ring up purchases and collect money, but less time is typically spent on teaching them the importance of service after the sale. Your customers will learn more about your store from the way you deal with a product they want to return to you than they will from the way you handled their original purchase. Do you provide service with a smile? Are you just as glad to see the customer making a return as one who is making a purchase?

The reality is that you should handle both transactions in the same positive manner. Some companies have restrictive return/service policies which create bad feelings for their customers. If you treat your customers well when they have a problem they will reward you by returning again and again to make future purchases.

If you mistrust your customers and make them feel like naughty children when they try to return a product, they’ll leave you and spend their money elsewhere.

Show your loyalty to your customers by taking care of them when they have a problem; they will reciprocate by being loyal to your store.

A good rule of thumb to follow is this: Take care of your customers the same way you would personally want to be treated if the same thing happened to you.

Nothing rivals great service Always remember your hardware store team has knowledge and expertise that simply is not available elsewhere in your community. Where else can customers find someone they can trust with the knowledge to help them with their DIY project? The answer is that your store is the place to go for one-stop shopping for all your customers’ home and garden project needs. From small renovations to major construction, you have what your local customers need and you have the knowledge to help them complete their project and stay on budget.

In my estimation your knowledgeable staff providing great customer service is the single most important competitive advantage you have in the local marketplace. But to leverage your team properly requires staffing great people, training them properly, teaching them features and benefits of your products, empowering them to serve and retraining them periodically. It also helps to have a store culture that values service over everything else. Your competitive advantage is your hardware store team.

By doing all in your power to focus your staff on listening and responding to your customers’ needs, you can compete effectively with the big-box discounters.

Remember to avoid the temptation to compete on price and never forget: “Great service trumps low price competition.”

December 2012/January 2013

Win Michael’s book Have you found this article beneficial? Has it helped you in your business? Email your comments to pat@ thehardwarejournal.ie – a copy of Michaels’ book will go to the three most interesting responses.

❙ THE HARDWARE JOURNAL 41

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The

Gadget guy

Colin Baker Are you a single finger typist? Have you the secretarial skills of a crack smoking pigeon?

Colin Baker, TV3’s own Gadget Guy, waxes lyrical about the latest in speech-recognition software for your computer and how you can make composing long emails and documents a whole lot easier.

42 THE HARDWARE JOURNAL

He’s started talking to his Computer!

I will admit – here and now and without a shadow of shame or fear of bullies – I was a Trekkie. A SciFi fan. The pull of the ridiculously perfect and optimistic view of the future and the technology we would enjoy was simply too much for me to avoid, regardless of its social implications in my rugbytrophy adorned school. Of

❙ December 2012/January 2013

all that was promised for our distant future, just behind teleportation and light speed travel, my favourite concept was the idea that we could speak normally to a computer and have it do our bidding.

Over the last few years this technology, slowly but very promisingly, has become a reality. Ten years ago we had the first glimmer of computer software that would listen vaguely to

our banter – assuming you had the diction of Brian Dobson and spoke slowly enough to distinguish and separate each word.

Fast forward to the latest offering from world leaders in speech recognition and we have Apple’s Siri voice app … NUANCE. Dragon Naturally Speaking is now on to its 12th incarnation and is pretty damn impressive. Yes, you can speak almost normally into the bundled headset and not only dictate letters and emails, you can even edit and correct your text through voice; jump to your browser to seek out your favourite moments in Father Ted; or back-up all your documents to a USB flash drive … all by simply speaking your requests.

But how easy is it really?

At times people expect the software to jump out of the box and start lapping up your every word straight away. Realistically, you need to set two hours aside to install it. The software is so incredibly extensive it

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takes nearly 40 minutes to shoe-horn itself onto your computer.

After a brief “audio test” it will proceed to bring up some text for you to read out loud as it recognises and adjusts for your accent or tonality. Yes, it has no problem understanding stronger accents, although my friend Paudi from Tralee just couldn’t seem to convince it to respond.

Maybe it’s anti-Kerry.

Whatever, after a little over an hour of reading prescribed text from the screen Dragon Naturally Speaking is ready. Now it’s time for the user to get used to the software. Early on, you will find it great for blocks of text, but as you use it and hopefully delve into the very decent tips and help menus, you will discover some really clever features, like its ability to create what are called “Macros”. If you have particular messages you

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use regularly, you can have a paragraph of response compressed into a couple of words. So you might ask Dragon to insert a comprehensive response to a common question on say “paints to suit a damp bathroom environment” every time you say the words “damp wall paint response”.

You will also find the mobile dictation handy.

This has the ability to

record your ramblings on a dictaphone or a smartphone and then import your recording into Dragon when you get back to your computer to have it turned it into text later on.

With the likes of Dragon Naturally Speaking 12, our computers can understand almost every word we utter.

The next stage will really be exciting … tying all this together with the “artificial intelligence” to truly

respond and carry out tasks. Like being able to casually mutter into our devices… “Did that paint delivery arrive in today?” or “Have a look at our garden furniture stock levels and get back to me after dinner”.

Computers can only pretend to have this near human-like savvy as yet, but we are getting closer.

With technology like Dragon 12 now on the shelves, at least some of the technology we’ve seen in science fiction is within our reach. Daily tasks like emails and lengthy documents are made that bit easier and speedier.

As for teleportation? … that might just take a while longer.

Dragon Naturally Speaking is available from www.BackFromTheFuture.ie and all good computer stores and prices start at €99, including a headset.

WIN A FREE COPY OF DRAGON NATURALLYSPEAKING SPEECH AND RECOGNITION SOFTWARE

The Hardware Journal offers you the chance to win your very own copy of Dragon NaturallySpeaking speech and recognition software. All you have to do is email the name of The Gadget Guy to pat@thehardwarejournal.ie and your name will go into a draw with all the other correct answers. Editor Pat Lehane will draw the winning ticket and inform the winner on Friday, 28 December.

December 2012/January 2013

❙ THE HARDWARE JOURNAL 43

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HAI HAI CLIPBOARD CLIPBOARD Smart Cards for Fuel Allowance Scheme Hardware Association Ireland (HAI) has written to the Government to say that the exchequer could recover an estimated €9.25 million in VAT and business taxes if the Department of Social Protection made better use of available technology to pay the Winter fuel allowance to individuals and families.

HAI suggests that the Government should introduce an officially-endorsed fuel voucher system where recipients would have to use dedicated fuel vouchers or smart cards to purchase fuel products from registered retail fuel outlets. This would allow the Government to recoup some of its expenditure on Winter Fuel Allowance through legitimate retail outlet tax returns.

“We have concerns that, as

the allowance is currently paid in cash and used to purchase fuel from any source of supply, there is no traceability or recovery for the State.” says Jim Copeland, HAI Chief Executive.

There is sufficient competition among legitimate retail outlets to ensure that recipients of the allowance have a wide choice of suppliers. It would also be a more efficient way to reduce the damage the shadow-economy or black market traders are causing to legitimate businesses in every sector.

With the increased cost of fuel hitting householders hard, HAI has also urged the Government against a further carbon tax on solid fuel in the forthcoming budget. “Not only will such a tax add undue pressure for many thousands of households, it will result in lost revenue to Government and as many as 1200 jobs because of the growing unregulated market in solid fuel”, says Jim Copeland.

Recast Prompt Payment Directive welcomed HAI welcomes the thrust and objectives of the recast Prompt Payment Directive 2011/7/EU of the European Parliament due to be introduced into Irish legislation in March 2013. However, HAI insists that the problem is not with the legislation, but with its enforcement and the fact that the number of companies that charge penalty interest to their business partners is reportedly very low.

HAI contends that late payments are disastrous for Irish business, and have been made financially attractive to debtors in Ireland by low or no-interest rates being charged on late payments and/or slow procedures for redress.

In a submission to the recent consultation on the EU Directive, HAI said that there needs to be a decisive shift to a culture of prompt payment, including one in which the exclusion of the right to charge interest should always be considered to be a grossly unfair contractual term or practice.

Such a shift should also include the introduction of specific provisions on payment periods, and on the compensation of creditors for the costs incurred. The exclusion of the right to compensation for recovery costs should also be presumed to be grossly unfair.

Accordingly, provision should be made for business-to-business contractual payment periods to be limited, as a general rule, to 60 calendar days.

HAI is ready to contribute to any initiative that will substantially address the area of prompt payments. The adoption of this Directive into Irish legislation would be a positive outcome to this consultation.

HAI opposes statutory sick pay scheme HAI says that the introduction of a statutory sick pay scheme in Budget 2013 would have hugelydamaging consequences for employment and growth next year.

In a recent IBEC survey, almost half of the respondents with an occupational sick pay scheme said such a move would affect their company's ability to recruit new employees. A similar number said it would affect their ability to retain existing staff and a majority said it would affect the sustainability of their business in Ireland.

In addition, companies would be forced to change the existing benefits offered to their employees.

HAI believes that employers would revise and reduce existing sick pay and benefit entitlement to staff.

This shifting of costs onto employers is an extra tax on employment at a time when employment should be the priority. This proposed measure will increase labour costs, reduce the opportunity for companies to create and maintain jobs, and damage our competitiveness. Government should be finding ways to reduce costs so employers can create jobs and stimulate economic growth The OECD says that an increase in taxes on labour of 1pc reduces an economy's employment rate by about 0.4%. Based on this, any Government's proposal for an extra tax on jobs through a statutory sick pay scheme could cost at least 3,500 jobs, both directly and indirectly.

Jim Copeland, Chief Executive and Director, HAI 44 THE HARDWARE JOURNAL

❙ December 2012/January 2013

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