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April 2019 Vol. 11, No. 3
THE INDUSTRY’S DIGITAL LEADER
SPECIAL REPORT:
How is
ALSO INSIDE:
Preview of 2019 National Hardware Show Unique Niche Categories
the New TrueValue Doing?
CONTENTS April 2019 n Vol. 11, No. 3
Editor’s Note: Chris Jensen Trend Watch: Craig Cope Digby’s Hardware cartoon: Scott Jensen Amazing But True Hardware Stories: From Tom’s Shop: Hardware Products Review Special Report: How is the New True Value Doing? Dealer Profile: Cornell’s True Value Discovering Unique Niche Categories National Hardware Show Preview: A World of New Products NHS Product Spotlight Technology Update: 5 Inventory Management Pitfalls and How to Avoid Them Category Report: Outdoor Power Equipment and Grills In the News Upcoming Events Retail Ideas Behind the Numbers
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DISCOVERING UNIQUE NICHE CATEGORIES
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SPECIAL REPORT: HOW IS THE NEW TRUE VALUE DOING?
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ADVERTISER’S INDEX Ace Hardware Corp. | www.myace.com . . . . . . . . . . . . . . . . . . . . . . . 15 A.O. Smith-Reliance Water Heaters | www.RelianceWaterHeaters.com . . 27, 43 Apex Tool Group | www.apextoolgroup.com . . . . . . . . . . . . . . . . .9, 13 Do it Best Corp. | www.independentsdoitbest.com . . . . . . . . . . . . .6, 7 ECi Software Solutions | www.ECiSolutions.com . . . . . . . . . . . . . .16, 17 Eco-Flo Products Inc. | www.ecofloproducts.com . . . . . . . . . . . . . . . . . 49 Epicor Software Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . 24, 42 Ettore Products | www.ettore.com . . . . . . . . . . . . . . . . . . . . . . . . 34, 47 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . . 33, 58 House-Hasson Hardware | www.househasson.com . . . . . . . . . . 26, 36 Hyde Tools | www.hydetools.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Jack Link’s | www.jacklinks.com . . . . . . . . . . . . . . . . . . . . . . . . . 35, 46 Kaba Ilco | www.ilco.us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23, 38 Mayhew Steel Products | www.mayhew.com . . . . . . . . . . . . . . . .41, 56 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2, 3 Spartan Power. | www.spartanpower.com . . . . . . . . . . . . . . . . . 40, 57 STIHL | www.stihlusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20, 21 Sunnyside Corporation | www.sunnysidecorp.com . . . . . . . . . . 32, 59 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . 11, 29 Werner Company | www.wernerco.com . . . . . . . . . . . . . . . . . . . 28, 55 Wooster Brush Company | www.woosterbrush.com . . . . . . . . . .19, 31
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91900 Overseas Highway | Tavernier, FL 33070 | www.thehardwareconnection.com Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666 Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864 Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126 Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
www.TheHardwareConnection.com
Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9264 Contributing Writers: Andy Curry, Doug Donaldson, Gary Pittsford The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2019 by the publisher. No editorial may be reproduced without the prior permission of the publisher.
THE HARDWARE Connection ■ April 2019 ■ 5
EDITOR’S NOTE
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By Chris Jensen
True Value’s History is Still Being Written
t has now been exactly one year since True Value Company closed on a deal to sell 70 percent of the company to ACON Investments, which ended True Value’s 70-year run as a dealer-owned cooperative. It was huge news and it was a bold move, with the entire industry scrambling to react. True Value retailers had to make an important decision quickly, while fending off aggressive courting by other wholesalers. We talked to dozens of True Value retailers at the time and the overwhelming response we got was uncertainty— they didn’t know what to make of this development and whether it was a positive thing for their business’ future. No one knew what the end game was for ACON, which has a history of buying and flipping companies for a profit. Long-time True Value retailers who had always been co-op members didn’t know how to react to their new-found freedom. Members who had been displeased with the co-op’s performance over the past decade viewed the deal as a sign it was time to jump ship. The majority of retailers remained— a group that collectively still owns 30 percent of the company—but they were curious and hopeful. They hoped someone had a plan to help them grow
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sales and profits, because Amazon and other competitors were not going to wait for them to catch up. It’s still too early to tell how the ACON deal will play out, but the True Value retailers who stayed loyal are finally seeing some light at the end of the tunnel. That’s a good thing for those retailers, and that bodes well for the two-step channel of distribution. Turn to page 30 for our special report: How is the New True Value Doing? It’s a follow-up to our special report on the True Value deal a year ago, which won an Eddies Digital Award from FOLIO magazine for Breaking News Coverage. Speaking of awards, we’re proud to announce we just received a 2019 FOLIO Digital Awards honorable mention for Best Digital Magazine. The Hardware Connection has now won six awards for editorial excellence in the past five years. Stay tuned, as we have something even bigger coming next month. The Hardware Connection is the hardware industry’s digital leader, because our issues cover the issues retailers care about, with in-depth, hard-hitting coverage that stems from our unmatched industry experience. n www.TheHardwareConnection.com
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TREND WATCH By Craig Cope
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Combine Business with Family Fun in Marco Island
s spring brings a muchneeded relief from the cold and dreary days of winter, our thoughts begin to wander toward summer. While many will think of time filled with family vacations, backyard barbecues and baseball games, our thoughts turn toward hosting the 31st annual Hardware Conference in Marco Island, Fla. The picturesque tropical island featuring miles of white sand beaches serves as the backdrop to the nation’s largest independent dealer conference regardless of wholesaler affiliation. The 5-star JW Marriott Marco Island Beach Resort serves as our host property. After a recent completion of a three-year, $320 million renovation project to achieve JW status, all property amenities will be available to Conference attendees. A few of the new amenities include an innovative gastropub and gaming emporium, exclusive adultonly section of the resort and a 24,000-square-foot spa retreat.
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The 2019 Hardware Conference will take place August 16-18 at the JW Marriott right on the beautiful sandy beach of Marco Island, Fla.
Traditionally taking place the weekend immediately following Labor Day Weekend, this year’s Conference has moved to August 16-18. Although this year’s date change is temporary, next year we return to our traditional time, it provides many families one last getaway before the beginning of the new school year. The Hardware Conference has been and will always remain a family-friendly, affordable industry event with hotel room rates of $189 per night plus tax. This is a savings of more than $150 per night from the hotel’s normal rate. In the event you would like to extend your stay, our special room rate extends from August 9 through August 21 based on availability. Click here to book your hotel reservation at our special room rate. This year’s event will follow our traditional agenda beginning www.TheHardwareConnection.com
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TREND WATCH Thursday, August 15 with the Technology Forum providing retailers with hands-on training to get the most out of their point-of-sale systems. Friday features wholesaler luncheons during the day and is capped off with the Beacon Awards cocktail reception and awards banquet honoring the “Best of the Best” retailers in the industry. Saturday begins with a breakfast on the outdoor terrace overlooking the pool and Gulf of Mexico. The Conference exhibit floor opens after breakfast, providing retailers oneon-one interactions with some of the top manufacturers and service providers in the industry. The most popular feature of the Conference, taking place both Saturday and Sunday mornings, is the “open dialogue” sessions. The sessions provide retailers and manufacturers with the opportunity to discuss key topics in the industry from their own unique perspective. The Conference gives all attendees the opportunity to unwind and enjoy the natural beauty of the island and surrounding areas. Included in the $109 registration fee is a half-day activity Saturday afternoon. Activity options include: 18 holes of golf at a top-rated course, exclusive beach access with activities, air-boat tours of the Everglades 12 ■ THE HARDWARE Connection ■ April 2019
and a shelling excursion exploring one of the many barrier islands. Dinner Saturday night is highlighted with a live auction of exhibiting manufacturers’ booths or other donated items. All proceeds raised benefit the Nicklaus Children’s Health Foundation (NCHF). Last year’s auction set a new record, raising $45,000 to add to our total of over $1.2 million raised throughout the years. Sunday provides retailers and manufacturers with additional opportunities to continue their conversations during the exhibit time and wrap-up session of the final open dialogue. The Conference concludes with one last chance to raise money for the NCHF with a live auction of popular consumer electronics. Without a doubt, The Hardware Conference is one of the most unique and rewarding events in the industry. Ask yourself when was the last time you stepped away from your store to reflect and think of ways you might be able to improve your business and talk with other store owners throughout the country? When was the last time you took off to recharge your batteries? The Hardware Conference on Marco Island is one place where you can do both and you simply won’t find a better deal! n www.TheHardwareConnection.com
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HARDWARE HUMOR
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THE HARDWARE Connection ■ April 2019 ■ 17
HARDWARE HUMOR
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se wife had a guy who 30 sent him to buy l wire. feet of electrica ncerned He was very co ing to get how he was go is truck it home, since h ht-foot only had an eig amazing bed. It really is ple make how some peo it through life. Matt Fabian Fultz Turner, Pierce & Ace Hardware s Navasota, Texa
Amazing but TRUE
HARDWARE
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was serving a customer in our plumbing department and explained to her that one of the parts for a toilet she had just purchased had a left-hand thread. “That’s okay,” she cheerfully replied. “I’ll send my son to pick it up—he’s left-handed.” Malcolm Wright The Home Depot Nanaimo, B.C.
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omeone returned a pack of Raid Fumigator cans, because when he purchased them he didn’t realize that they weren’t safe for pets. The box was unopened, so it’s good to know someone is reading the warnings and instructions on the package. Mike Maternoski Denmark Hardware Hank Denmark, Wis.
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e use social media for marketing purposes and have been able to build a good following at each of our stores. We had a lost dog found in our parking lot, and my daughter took it into her office and looked for tags or ID, which it didn’t have. She then took it to a vet clinic next to us to see if anyone lost a dog there, or whether it had an ID chip, but again no answers. She took a picture of the dog and posted it to our Face book page as being lost in our parking lot. The post garnered 16,942 people reached, 249 shares, 75 likes and 27 comments about how great our store was to care for a lost dog like this. The post was made at 11:30 a.m., and by 2:45 p.m. the dog was reunited with its owner. The best part is the ID was made by a person living in California, recognizing the picture of his mother’s dog that lived in Hartford, Wisconsin. Perry Hahn Hahn Ace | Hartford, Wis. [posted on Hardlines Digest] 18 ■ THE HARDWARE Connection ■ April 2019
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From
p o h S s Tom’ W
TS REVIE E PRODUC
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By Tom Chasteen
n February we reviewed Bosch’s new 12-volt power tools, and they truly are outstanding products. In this edition of Tom’s Shop we will be reviewing Bosch’s new 18-volt power tools, which our testers found equally impressive. With battery-powered tools it starts with the quality and life of the battery and how quickly the charger can recharge the battery. Bosch has
developed a new line of lithium-ion batteries named the Core 18V and they have some impressive qualities. They feature 80 percent more power with longer run times. We tested both the 4.0 AH and 6.3 AH batteries, as well as Bosch’s new fast-charging system. These batteries are interchangeable with all of the 18-volt tools we tested.
Our testers really liked the Core 18V battery system. They liked that the batteries lasted longer and everyone was impressed with how quickly they could be recharged. There is a small button the user can push on the battery to see how much battery life is left. They also remarked how they felt the battery maintained peak performance right up to the point it needed to be recharged. Bosch’s 18-volt Cordless Impact Driver Kit (GDX18V-1600B12) is a very unique tool. At first glance it looks like a 1/2” socket impact driver, but Bosch has also modified the ½” socket driver to receive ¼” standard screwdriver bits, which is a nice feature. This impact driver is a serious tool producing 1,600 pounds of torque as well as variable speed from 0–2,800
Bosch’s Core 18V Battery System
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m p o FrForom h S om’s
p o h S s T Tom’ WAR
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RODUCT RDWARE P
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rpm. It has an LED light and electronic motor protection. Our testers liked the ability to use a 4.0 AH battery when doing small jobs and switching over to a 6.3 AH battery when doing bigger jobs. Bosch’s 18 volt Cordless 4 ½” Angle Grinder Kit (GWS18V45PSCB14) is unlike any other cordless angle grinder. It has a user interface screen on the top of the tool that can be configured using Bluetooth technology, kickback control, safety protection switch, LED lighting and an
Bosch’s 18-volt Cordless Impact Driver Kit
easy-to-change blade feature. The balance of this tool is excellent as well, and it comes with a screw-on handle, making it easy to control. Bosch’s 18-volt Cordless Reciprocating Saw Kit (GSA18V125K14) is a completely redesigned reciprocating saw with features that clearly set it apart from other similar tools. It features longer grip areas, allowing the user to have better control of the saw at different angles. It’s more streamlined, allowing it to get into tighter places. The saw loop that the blade passes Click Here to View Our Profile
Bosch’s 18 volt Cordless 4 ½” Angle Grinder Kit
Bosch’s 18-volt Cordless Reciprocating Saw Kit
House-Hasson Hardware Has Been Focused on Its Dealers’ Success for 113 Years!
H A R D WA R E C O M PA N Y
Think
BIG!
“We have a great relationship with House-Hasson. They recognize that the better we do, the better they do. It’s nice having someone there who works hard for you. Our partnership with House-Hasson has grown tremendously.” —Dale Drew, Merrilees Trustworthy Supply, Cleves, OH; Bright and Milan, IN
Click to Learn What Dale Drew Loves Most About House-Hasson
House-Hasson Hardware can make a BIG difference in your profits! BIG Bonus Buys—unbeatable market deals on top-selling brand items at three annual dealer markets. BIG Savings—take advantage of industry’s most affordable circular program and no national advertising fees. BIG Rebates—all rebates paid in cash with no upfront investment in stock. BIG Buying Power—member of Distribution America buying group.
BIG Inventory—Over 55,000 name-brand items from two state-ofthe-art distribution centers plus a private-label line available.
For more information on how House-Hasson can increase your profits, contact Pat McCutcheon at 800-333-0520, ext. 212 or go to www.househasson.com.
through is adjustable to different depths. The user can adjust the orbital settings, it has a bright LED light, a brushless motor, is variable speed, has vibration control and the user doesn’t need tools to change the blade. Bosch’s 18-volt Cordless 6 ½” Circular Saw Kit (CCS180-B14) rounds out the tools we tested and it is equally impressive. This is a serious tool! Bosch has made an effort to make it lighter, weighing in at just 8.4 pounds with the battery. It has more than enough power to cut through ¾” plywood or 2x8’s. It tops out at 3,900 rpm and can cut up to a 50-degree bevel. It has a speed brake as well as a spindle lock, making it easy to change blades.
Bosch’s 18 volt Cordless 6 ½” Circular Saw Kit
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The saw foot is not flimsy at all and is wide enough to give the user a stable platform to use the saw. It is easy to set the depth of the saw cut and see the cutting line. Like the 12-volt power tool lineup we reviewed in February, our testers were equally impressed with this 18-volt power tools they tested. There were several comments that were pretty universal with all of our tester’s evaluations. They all like the battery performance of the 18V Core batteries and chargers, they were all impressed with the power of each of the tools and the unique features that added to the performance of the tools and how intuitive it was to learn how to use the unique features of each tool. If your business caters to professionals or serious d-i-yers, then I suggest taking a look at the Bosch line of power tools—these tools are definitely made to be used and will meet the demands of a serious user. Take a look at the videos below and see for yourself why our testers rated the 18-volt Bosch tools at 5 stars. • Core 18V Batteries • Bosch 18V Impact Driver • Bosch 18V Cordless 4 ½” Angle Grinder • Bosch’s 18-volt Cordless Reciprocating Saw • Bosch’s 18-volt Cordless 6 ½” Circular Saw Kit
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SPECIAL REPORT
By Chris Jensen, Editor/Founder/Principal
SPECIAL REPORT: How Is the New
True ValueDoing?
I
t has now been one year since True Value Company shocked the hardware industry by announcing a deal to sell 70 percent of the company to ACON Investments, a private equity firm. After 70 years as a dealer-owned cooperative True Value was now privately held, although retailers collectively retained 30 percent of the company. The first big shift came as True Value adjusted its marketing and advertising strategy away from national advertising to hyper-focused local advertising that is more targeted, customizable and digital. Omnichannel marketing is all the rage, and True Value was on board in a big way. Read on to learn about the next big change at True Value and discover what retailers have to say about the new True Value.
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This is a digital rendering of True Value’s new DC being built in Pennsylvania.
INVESTING BIG IN THE SUPPLY CHAIN In late February, True Value announced a strategic investment of $150 million in supply chain optimization including a new, 1 million-square-foot distribution hub in Hanover Township, Pa., to support the Northeast region. It represents the company’s first ground-up distribution center in more than 30 years. “True Value is excited to make this substantial investment to develop a world-class supply chain and distribution operation in Hanover Township,” says John Hartmann, president and CEO of True Value Company. “The new facility will help alleviate congestion in our other distribution centers, provide the highest in-stock rates and position our network to support our retailers’ growth with greater flexibility and service.” www.TheHardwareConnection.com
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SPECIAL REPORT James Harrington, divisional vice president of supply chain operations for True Value, points out the company gets 40 percent of its business from the Northeast and the new facility will serve about 1,000 retailers when it opens this fall. Harrington explains that the new DC fits into the company’s hub-andspoke distribution strategy they started with an expansion of their Harvard, Ill., warehouse late last year. The idea revolves around having centralized
hubs with a larger product selection and deeper stock of inventory, backed up by a series of distribution spokes that focus on fast-moving products. When there is a spike in demand for certain categories, the regional hubs can meet that demand efficiently. A normal DC stocks 55,000 to 60,000 SKUs, according to Harrington. “We stock 20,000 to 25,000 SKUs in smaller spokes. The new hubs will stock 85,000. Spokes will stock 25 percent of the fastest-moving SKUs. We will centralize items with uneven demand, which provides better service,” he says. Harrington adds, “The challenge from a cost perspective is our retail customers don’t like getting their main order and then waiting a few more days for a partial order. If they’re serviced by a hub, then they’re getting one complete delivery.” True Value is currently enjoying 99 percent fill rates with its new Midwest hub, up from historic rates of 97-98 percent, according to Harrington. They are looking to take the huband-spoke model next to the South and West. “We’re evaluating options in those regions right now. Ideally, we’ll do it with existing facilities, but we haven’t completed plans yet,” he says. A major part of the supply chain initiative is an investment
SPECIAL REPORT in planning and forecasting software from JDA Software Group, which will enable the company to better manage seasonal product demand that is impacted greatly by weather. “The new software uses advanced algorithms for planning and forecasting demand. The fulfillment piece looks at the most efficient and economical order quantities, which will affect all DCs on ordering,” Harrington says. The company is a firm believer that omnichannel is here to stay, so True Value provides multiple omnichannel options with online orders shipped to stores or to customers’ homes. “We also provide third-party logistics if you run your own e-commerce business. Ninety
percent of the country can get delivery for e-commerce orders in two days out of three DCs,” he notes. The new DC in PA will have e-commerce capability and True Value will likely build in e-commerce capability in the South and West. “We have a niche against Amazon and we want to protect that,” Harrington says. The company has also done work to reduce inbound shipment costs. “Last year we had a big focus on optimizing inbound from international. This year we focused more on domestic—shortest time and best cost to get to the DC, plus integrating backhaul with one system,” he says. “We believe our retail customers have a distinct advantage to use us as their
backroom,” Harrington adds. “They want to know when they order we’ll have what they need. This enables retailers to maximize cash flow.”
STAYING TRUE TO TRUE VALUE Cornell’s True Value joined Cotter & Company, the forerunner of True Value in 1962, when the co-op opened a warehouse in Philadelphia. Co-owner John Fix III recalls that John Cotter, True Value’s founder, often visited the store. Throughout the decades, True Value has helped expand the store’s business, according to Fix. After ACON acquired a controlling stake in True Value, Fix remains committed to the company and the retail brand and participates in
leadership committees, including True Value’s marketing advisory council. “True Value is in our DNA and they helped build our company,” Fix says. “I have a lot of confidence in the management team. I’ve met with John Hartmann and had many conversations with him. I also rely on the fact that True Value has board members from outside who can look at the company in a more business-like way.” Fix is enthusiastic about True Value’s direction, citing ongoing initiatives and modernization, such as a new distribution center being built in Pennsylvania, its evolving hub-and-spoke distribution model and continuing investments in e-commerce. “So much of wholesale and distribution has changed,” Fix says. “I’m excited
about where True Value is headed. They’re taking a bold step into a very different direction. From my perspective, I haven’t seen any downside and I love getting two deliveries per week.”
NOT MUCH HAS CHANGED Willis Qualheim of Qualheim’s True Value Hardware in Shawano, Wis., says he hasn’t noticed anything that different since ACON bought controlling interest in True Value. “It’s retail life as usual,” he says. Qualheim notes that there’s no longer national advertising to support the brand, but he is doing his own television advertising to support his store brand. “The co-op advertising dollars are no longer available,
but that’s not a big deal to me,” he says. Although some True Value retailers are bothered that they don’t see financial statements now and that they have to pay $150 a month Fix III of Cornell’s to retain the True Value John True Value likes the banner, Qualheim says direction True Value is those issues don’t con- going. cern him. “I don’t have a problem paying $150 a month to fly the True Value banner—it’s only $150 and that’s nothing,” he says. Qualheim was pleased to see the new distribution facility being built in the Northeast. “That will be a key hub so
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House-Hasson Hardware Has Been Focused on Its Dealers’ Success for 113 Years!
YES! H A R D WA R E C O M PA N Y
“We went shopping for a supplier over 15 years ago because we had mixed experiences with previous suppliers. We liked the fact that House-Hasson was a family-operated business, like us. They are the best supplier we have ever had. They listen to us. Our sales rep works with us at least once a week.” —Todd Eads, Eads Hardware, Paris, KY
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House-Hasson Hardware: Still a company that knows how to say YES! YES to lower cost of doing business. YES to merchandising programs that deliver a difference. YES to unbundled low prices with monthly promotions. YES to national brands in the warehouse (55,000 SKUs). YES to 100% cash rebates. YES to unbeatable Bonus Buy deals at three dealer markets. YES to smooth conversions to any other system.
YES to efficient, on-time delivery with 96% service level. YES to experienced sales representatives who are focused on relationships and serve as your personal consultant. YES to flexible programs that can be tailored to meet your needs.
For more information on how House-Hasson can increase your profits, contact Pat McCutcheon at 800-333-0520, ext. 212 or go to www.househasson.com.
sixth-largest LBM chain in the U.S. “We were delighted to welcome Carter Lumber to our Fall Reunion in Denver, to Willis Qualheim of share what we’re all Qualheim’s True about—our energy, Value says it’s been our innovation and our business as usual since ACON took vision for the future,” over. explains Hartmann. “This proved to be the catalyst to welcome their business into our family. I look forward to our GAUGING RETAIL MOMENTUM It is difficult to determine how much collaboration in enhancing both commomentum True Value has on the retail panies and continuing to transform side. There have been some multi-unit the industry.” Following True Value’s conversion to a True Value retailers that have defected post-cooperative structure in April 2018, to other wholesalers, while some smaller members left in the aftermath Carter Lumber expressed interest in doing business with the new company. “Though of the buyout as new minimum purthe former co-op model wasn’t relevant chase requirements took effect. to us, True Value’s new business model True Value reported record-setting intrigued us to explore their offering,” says growth in 2018 as they welcomed 300 Adam Lombard, vice president of prodnew customers to the company. In uct management for Carter Lumber. “We late February, True Value announced found that True Value offered a different that nearly 190 new customers had focus on growth, dedicated to our needs come on board so far this year. True Value operated 4,311 stores at the end and goals.” “True Value is bringing an impressive of 2017 and now reports serving over service and value-added program to the 4,500 stores. table,” notes Justin Drerup, director of True Value and Carter Lumber hardlines for Carter Lumber. “Their people announced a new business partnerare engaged and display a genuine exciteship in December. Based in Kent, ment in Carter Lumber. We’re anticipating Ohio, with 146 locations in 12 states the True Value partnership to be impactful throughout the Midwest, Southeast as we continue to grow.” n and Northeast, Carter Lumber is the all the spokes in that area can handle some of the congestion,” he says. “My fill rates for A, B, C and D items are at historic levels or better, so True Value’s service levels are fine.” He adds, “I would hate to see ACON sell it soon, but I’m not overly concerned about that. It’s in their best interest to grow the company. If they don’t grow the business, who would want to buy it, so I’m sure their primary concern is focused on growing it.”
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THE HARDWARE Connection ■ April 2019 ■ 37
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DEALER PROFILE
By Doug Donaldson
Cornell’s True Value: Tradition @ Innovation
A
John Fix III represents the third generation of his family to operate Cornell’s True Value Hardware in Eastchester, N.Y.
s John Fix III, owner of Cornell’s True Value Hardware, walks through the basement warehouse of the store in Eastchester, N.Y., he stops at the conveyor belt that slants down from the first floor and places a hand on the ancient contraption. “When I was a kid, we would ride down the belt all the time,” Fix recalled, as a small grin spreads across his face. “We don’t do that as much anymore.” www.TheHardwareConnection.com
Representing the third generation of the Fix family to operate the business, he began working in the store at 14 years old. Fix, now 60, has continually pushed the store to embrace technology and improve business practices. That drive has paid off: Cornell’s True Value, which is celebrating its 110th anniversary this year, was recently named one of True Value’s 2019 “Best Hardware Stores in Town” as well as Best Hardware Store for 2018 by Westchester Magazine. THE HARDWARE Connection ■ April 2019 ■ 39
In 1908, brothers Charlie and Bailey Cornell bought a hardware store in Tuckahoe, N.Y.; the following year, they incorporated as Cornell Brothers Inc. As Westchester County grew, so did the brothers’ business, and Cornell’s quickly became the go-to destination for hardware. With the burgeoning business, the brothers hired help, and in 1916, John Fix, the grandfather of current owner John Fix III, began working at the store after school and on weekends. He would end up buying the business during the Depression, saving it from closing. The Fix family has been in the Eastchester area since the family came to America in the 1880s. The store is deeply engrained in the Eastchester community, which is about 10 miles north of New York City.
Computer screens face customers as they check out, encouraging them to sign up for True Value Rewards.
Cornell’s supports the local Boy and Girl Scouts along with youth baseball. For Fix, though, the most rewarding thing about being a hardware retailer is getting to know the new generation of homeowners moving to the area. “We’re really proud of being in business continuously in the same community for so long. It’s rewarding to keep our roots here,” Fix says.
He attributes the store’s longevity to its connection to the community and to having family members being on the sales floor and talking to customers. “When customers come in, they expect to see one of the Fix family,” says Fix, whose father, John Fix Jr., still maintains an office in the store and occasionally strolls the floor. Store management now includes a third generation of Fixes, including John III, his sister Mary Beth (Fix) Wellington and his cousin, Thomas Fix. Mary Beth’s son, Jack Wellington, represents the fourth generation. Fix also has a daughter who may join the family business, but “it’s a little too early to tell.” However, he hopes that the store will continue with a family member at the helm and that the store continues to be an
Top: Grilling has emerged as a strong niche category with the addition of Big Green Egg. Bottom: For more than 110 years, Cornell’s has always gone out of its way to find what customers need.
integral part of the community and a place where neighbors can find what they need. “My grandfather and dad were always of the opinion that if you can get something for a customer, go out of your way to get it and look beyond the margin of one sale but look at the lifetime of a customer,” Fix says. For longtime senior citizen customers who aren’t online, Cornell’s will often custom order products. “We always tell our customers that whatever it is, we can get it for you,” he says. The store’s commitment to addressing customers’ needs has led to several niches. For example, both online and in the basement, Cornell’s True Value offers The Brewshop with an extensive selection of brewing supplies and accessories.
Top: A large selection of kitchen gadgets attracts female shoppers. Bottom: STIHL outdoor power equipment is displayed alongside rental equipment available for rent.
The Brewshop at Cornell’s carries everything needed to brew your own beer.
Fix has recently added a complete selection of Big Green Egg grills and accessories, which is on display in the basement alongside the Brewshop.
PUSHING THE TECHNOLOGY ENVELOPE After two years of college at MIT and two years at Boston University, Fix joined the business in 1981. Since then he has constantly pushed technology solutions. For example, the store became an early adopter of computer-managed inventory, and was one of the first hardware stores to sell online when Cornell’s introduced an e-commerce site in 1995. In addition to selling products online, Fix has also pushed the envelope with their POS vendor, Epicor. With capabilities extended through
Epicor, Cornell’s lists inventory on Google Ads and Google Product Listing Ads. “We’ve really been pushing Google Ads and that brings in people every day,” Fix says. “I know people drive by other hardware stores that have the same products, but they come here because of Google Ads.” Fix believes that other hardware stores and home centers may put up billboards or run TV ads, but they are not reaching
consumers as effectively as Google Ads, which he calls “the new Yellow Pages.” He also credits True Value with pushing retailers to utilize Google Ads. “You have to have your inventory online,” Fix claims. “I worry that even ship-to-store isn’t quick enough for consumers today. With Google Ads, independent retailers can show up in searches with even national brands.” He also offers a recommendation maxiThe conveyor belt in Cornell’s warehouse mizing the power of Google Ads: “Don’t now handles a brisk online business. spend money for keywords for hardware bulletin board. Hardlines Digest (www. store, but specific products. Very rarely hardlinesdigest.com) has since evolved do consumers search for a specific store. They’re looking for products,” Fix points out. into an online forum for the retail hardware industry. Subscribers can email questions, comments and ideas, and SHARING ADVICE THROUGH HARDLINES messages are distributed to about 2,500 DIGEST subscribers through Google Groups. Fix’s preoccupation with technology “I like to say it’s user driven,” Fix extends well beyond his store. He fresays. “Hardlines Digest helps dealquently encourages other retailers to push the technology envelope, too. Fix is ers exchange ideas about what works and what doesn’t work,” he says in his one of the founders of Hardlines Digest, office surrounded by monitors and the a grassroots online forum that allows hum of computers. Fix doesn’t make hardware retailers to share ideas about any money from Hardlines Digest— improving business. any money from sponsors is used to Hardlines Digest has roots that date pay server maintenance. back to a TRIAD POS user conference in Hardlines Digest has evolved into 1991. Fix realized that other store owners could use the information garnered from a social forum, where dealers have formed friendships with dealers from the conference. He obtained a mailing different parts of the country and from list of True Value TRIAD owners, asked some store owners to write articles, and different wholesalers. “I hope it helps retailers solve issues in a real-world printed and mailed the first newsletter situation, getting feedback from dealfor free, paying for it himself. ers who have walked in their shoes,” After four printed issues, Fix moved Fix says. n the publication online, creating a dial-in 44 ■ THE HARDWARE Connection ■ April 2019
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NICHES
Discovering Unique
Niche Categories
H
ardware and home improvement retailers can no longer sustain and grow business by just stocking the core categories like tools, plumbing and electrical. Highperformance retailers have learned how to develop and promote unique niche categories that build customer traffic, grow sales and turn their stores into destinations for certain product areas. What follows are some unique niche categories that have been successful for retailers around America. “Wood stoves, pellet stoves and gas stoves have been very strong for us for many years. From August through December, our stove business drives a lot of sales,” says Dan Diskin of Crocker’s Ace Hardware in Le Roy, N.Y. “Other stores sell these stoves, but we have a big advantage because of our employees. Of the four guys selling stoves here, the one with the least experience has 10 years of selling and installing stoves. Our stove business www.TheHardwareConnection.com
Pellet, gas and wood stoves drive sales at Crocker’s Ace Hardware.
brings in customers from as far as 50 miles away,” he adds. Steves Hardware & Housewares in St. Helena, Calif., has assembled a dominant selection in housewares. “We have a separate 3,000-square-foot building for our housewares, kitchen and gourmet products. It’s about 30 THE HARDWARE Connection ■ April 2019 ■ 45
Left: Steves Hardware & Housewares gets 30 percent of sales from housewares, kitchen and gourmet products. Right: Mitchell Webb shows off the beekeeping supplies at Wilton Springs True Value.
percent of our business,” says co-owner Ron Menegon. He adds, “We just got back from the Las Vegas gift show and also go to the Chicago gourmet extravaganza. We aggressively shop for our housewares. We also stay aware of what’s in other stores such as Williams-Sonoma. We do really well with fine knives and chef knives.” Chubby’s Hardware in Pound Ridge, N.Y., has a strong custom mailbox business. “Our average mailbox sale is
about $500,” says Owner Joe DiPietro Jr. “In the winter, we do custom fireplace doors and screens. We also sell our own custom grass seed called Chubby’s Special Mix. My father supervised the initial blend 30 years ago and it’s still a strong seller.” Beekeeping products have turned into a traffic-building niche for Wilton
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Left: Hanover True Value does a huge business in UPS package shipping. Right: The unique offering at Crouse Mills True Value in North Lima, Ohio, includes John Deere collectibles, model trains, puzzles, Ohio State memorabilia and craft sodas.
Springs True Value Hardware in Newport, Tenn., according to Owner Mitchell Webb. “We recently updated the store and added 20 feet of beekeeping accessories,” he says. Hanover True Value in Hanover, N.H., runs an in-store UPS shipping business. “We are the number two Package Express Center affiliate in the nation
and the number one drop-off center in the nation. We’ve been doing this for 20 years,” says President Sonya Campbell. The package center covers about 200 square feet of the store and accounts for more than 20 percent of gross sales. “Because of the package center, we’ve seen an awesome increase in foot traffic—per quarter about 1,500 to 2,000
NICHES people come in the store for the shipping. We do a coupon program and about 40 to 50 of those who come in for shipping each month use the coupons in the store,” she adds. Gold Country Ace Hardware & Hobbies in Cameron Park, Calif., has a full-line hobby department, which accounts for about 12 percent of sales. “The hobby area is about 1,300 square feet of the store, and we even sold off our rental department to carry more. We carry a lot of RC Hobbies, pinewood derby and model rockets,” says Owner Bob Blum. Blum, “Just like any niche, it would be impossible without trained staff members who have an interest in it. Hobby isn’t an industry that you can just get into. It can be very technical and requires an incredible amount of knowledge. The biggest downside to this niche is finding qualified employees. However, margins are typically a little better than some other niches, such as outdoor furniture.” Gray Cockman, assistant manager for Southern Pines Ace Hardware in Whispering Pines, N.C., says they have made their store stand out from other hardware retailers with a clothing and gift area that takes up about one-third of the 20,000-square-foot sales floor. Beautiful, handcrafted furniture
48 ■ THE HARDWARE Connection ■ April 2019
Southern Pines Ace Hardware sells handcrafted furniture from Bali.
from Bali grabs people’s attention as soon as they walk in the store. Tashman Home Center in West Hollywood, Calif., has identified niches that are specific to their trade area. “In West Hollywood, the code enforcement is really strict and rental
The clothing and gift area at Southern Pines Ace Hardware takes up one-third of the sales floor. www.TheHardwareConnection.com
NICHES companies have to maintain their properties’ screens, so we repair a ton of screens. We have a large installation staff, with six crews. In addition to regular aluminum windows, we also install soundproof windows and are an authorized dealer of CitiQuiet Soundproof Windows,” says Assistant Manager Rick Hohman. Meyer Do it Best Hardware in Golden, Colo., has established itself as a destination for housewares. “Housewares is very large for us. We devote about 5,000 square feet of space to that department. Because of our housewares, we pull in people from 15 miles away. We also have a large sporting good department, mainly camping and fishing,” says Owner Steve Schaefer. Fazzio’s Home & Farm in Gulfport, Miss., has become a destination for equine supplies with a large selection of saddles, tack, boots and riding gear. Other niches in the store include baby chicks, hunting supplies, jewelry, toys and pet supplies. n
Window screen repair is a huge business at Tashman Home Center.
Fazzio’s Home & Farm has turned into a destination for equine supplies.
A small boutique area at Fazzio’s Home & Farm showcases handbags and jewelry.
50 ■ THE HARDWARE Connection ■ April 2019
www.TheHardwareConnection.com
Rapid City Hardware Hank in South Dakota has a brew room that features yeast, hops, glass bottles, bottle-cleaning supplies and other brewmaking equipment.
D&E Hardware and Outdoors in Mims, Fla., features a full-service archery center with a large selection of bows.
NHS PREVIEW
National Hardware Show®
PREVIEW L
A WORLD OF NEW PRODUCTS
as Vegas will be hosting the 74th annual National Hardware Show® (NHS), which takes place May 7-9 at the Las Vegas Convention Center. The 2019 Show will feature a variety of new sections and categories, additional interactive experiences, enhanced programs and more. “There are so many new and exciting things happening at NHS 2019 that buyers and retailers can’t afford to miss it,” said Rich Russo, industry vice president for the National Hardware Show. “From new categories and sections that address the hottest trends in the industry, to brand new interactive experiences and programs to help attendees better plan their schedule, NHS 2019 will be something the industry continues to talk about well after the Show Floor closes.” True Value President and CEO John Hartmann will be the keynote speaker on Tuesday, May 7 on the main stage in Central Hall at 8:55 a.m.
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“Our industry is rapidly changing, and the National Hardware Show is the perfect place for both retailers and manufacturers to come together to address this transformation,” said Hartmann. “I’m honored to discuss how the independent hardware retailer is well positioned for growth and profitability at the Show.” With more than 2,500 exhibitors at NHS, there is no shortage of must-see companies and products to explore. Here are some of the new sections and categories that await NHS attendees: • Tiny Living @ NHS: Designed specifically for professionals in the small living, modular and manufactured housing industries, Tiny Living @ NHS will allow attendees to discover companies that specialize in products and services for this growing segment of the industry. • Impulse Aisle: This newly designated show floor area will shine a spotlight on those products that
THE HARDWARE Connection ■ April 2019 ■ 51
Sponsors:
Co-Sponsors:
Help Us Honor the Industry’s Best Retailers at the 2019 BEACON AWARDS Join us for this important recognition program that honors the best of the best dealers who represent the future of the industry. The Beacon Awards are held annually at The Hardware Conference in beautiful Marco Island, FL, and are co-sponsored by The Hardware Conference and The Hardware Connection magazine.
The Hardware Conference will be held Aug. 16-18, 2019 For more information about attending this event along with all other educational seminars, open floor discussions and social activities at the 2019 Hardware Conference, visit
www.TheHardwareConference.com
EVENT: National Hardware Show® SHOW HOURS: Tuesday, May 7: Wednesday, May 8: Thursday, May 9:
9 a.m. – 5 p.m. 9 a.m. – 5 p.m. 9 a.m. – 1 p.m.
LOCATION: Las Vegas Convention Center SHOW INFO: www.NationalHardwareShow.com
aim to meet customers’ needs as they head to the checkout line. • Retail Service Solutions: The Retail Service Solutions area is the perfect place to find products that allow store owners to take their operation to the next level by creating unique and visual merchandising, managing and improving the functionality of their retail stores, and creating a great buying experience for their customers. • Show Steals & Deals: This year, attendees will be able to access exclusive deals and show specials through the NHS Mobile App, both pre-show and onsite. • Interactive Smart Home: The brand-new Interactive Smart Home at NHS will give attendees a chance to gain hands-on experience with some of the most talked about products in the Smart Home category. • The Backyard Marketplace: Located in the Tailgate, Backyard & BBQ section of the show, the www.TheHardwareConnection.com
More than 2,000 exhibitors will be showcasing their newest product introductions at the 2019 National Hardware Show in Las Vegas.
Backyard Marketplace will be a must-see destination to relax and reenergize, while celebrating favorite and beloved outdoor living brands. This area will be equipped with shade, a hydration station, food, music, entertainment and featured brands with products that are trending in the outdoor lifestyle category. To enhance the planning experience for attendees, NHS is adding to its recommendations program for 2019. For buyers and retailers, not only will NHS offer exhibitor recommendations based on the information that those attendees submit during the registration process, but this year NHS will also provide product recommendations as well. Registration for the show is complimentary until May 8. After that date, there will be a $125 onsite registration fee. To register in advance, visit www.nationalhardwareshow.com. n THE HARDWARE Connection ■ April 2019 ■ 53
NHS PRODUCT SPOTLIGHT
Product
Spotlight I
f you want to attract new customers, you have to keep bringing in new products to keep your store fresh. The National Hardware Show® offers the industry’s best opportunity to see the latest product innovations from top manufacturers. The products featured on the following pages can be found at the upcoming National Hardware Show (May 7-9 in Las Vegas) or at upcoming wholesaler shows.
TOP FILL HUMMINGBIRD FEEDER • Top Fill Diamond Wine hummingbird feeder from Perky-Pet® has wide mouth opening for easy filling from the top. • 5 hummingbird friendly and beeproof flower ports. • Easy to clean, removable parts and leak-free base. • 24 fl. oz. capacity, glass container and 2 feeders per case. Woodstream Corp. www.woodstream.com 717-626-2125 Booth #11223 54 ■ THE HARDWARE Connection ■ April 2019
www.TheHardwareConnection.com
RUNOFF™ WATERPROOF BAGS • RunOff revolutionizes waterproof protection. Completely waterproof and dustproof (tested to IP67), the RunOff family of bags features the revolutionary TRU™ Zip technology, durable TPU construction and RF welded seams designed to stand up to all of life’s adventures. • With a smooth glide and confident closure, RunOff bags offer a better way to store, organize and protect your gear against water, dust and sand. • Integrated anchor points and belt loop for versatile attachment. • Translucent front allows you to easily locate items. NiteIze www.niteize.com 303-449-2576 | Booth #6446
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DUAL HEAD SPRAY TIP EXTENSION • The new Hyde® Dual Head Spray Tip Extension is designed to help painters save time and increase efficiency on the job. • This lightweight and intuitive spray head will double painting speed thanks to an offset nozzle design that creates the perfect level of overlap in just one pass instead of two. • This airless spray tip extension, which fits all “G” thread spray guns, has two tips spaced 6” apart that deliver a spray fan that’s twice the width of a spray gun or single-tip extension. • Because the tips are offset, the second tip follows behind the first, creating a perfect pass with a feathered overlap. The result is much greater speed and better first-pass coverage. Hyde Tools www.hydetools.com 800-872-4933 | Booth #5915
HEAVY-DUTY JUMPER CABLES • Ideal for starting or to jump start a large diesel truck, heavy-duty fleet equipment, cars and semi trucks in cold weather and harsh environments. • Come in two sizes: 2 AWG and 1/0 AWG (0 gauge) in lengths of 10, 15 and 20 feet. • All heavy-duty jumper cables are Made in the USA using UL-listed cable with seamless tinned copper ring terminals and adhesive-lined heat shrink, which is resistant to water, fungus and UV light. • Come with a bright yellow storage bag with drawstrings and roadside emergency reflective safety stripe. Spartan Power www.spartanpower.com 775-800-1725 | Booth #6847
NHS PRODUCT SPOTLIGHT RECHARGEABLE EMERGENCY LIGHT • The EAL22R is an all-new rechargeable emergency light from COAST. • The light is incredibly bright at 1400 lumens, features a brightness dial and runs for 40 hours on the lowest brightness setting. • Rated IPX4 storm proof with a tough, drop-proof nylon body and polycarbonate dome and globe construction. • Uses either lithium or alkaline power, and can be recharged in or out of the light using a micro USB, and can power out to charge phones or accessories in emergency situation.
Coast Products www.coastportland.com 570-326-0502 Booth# 5636
DOMINATOR HEAVY-DUTY CURVED PRY BAR • Dubbed “The Big Stick,” what makes this 54” length curved pry bar unique from others in the Dominator product line is its 7/8” chrome-vanadium steel designed to withstand tremendous force and making it ideal for lifting, prying or moving heavy automotive parts and/or separating components. • Made in the USA and backed by a lifetime warranty, The Big Stick’s hardened and tempered steel shaft runs from the cutting edge of the pry bar through the handle to deliver maximum durability and prying power. • Its capped end allows for striking without damaging the handle and serves as a shock absorber to reduce hand fatigue. The 13 lb. pry bar’s black oxide finish prevents corrosion and reinforces long-lasting durability. Mayhew Tools www.mayhew.com 800-872-0037 Booth #6406
CONFERENCE2019 AUGUST 16-18
REGISTER HERE TODAY!
“Where Relationships Are Formed”
3 Days of Networking, Relaxing and Learning Meet colleagues and new friends at the industry’s largest conference for independent hardware retailers. Share ideas with top retailers on how to grow your business, interact with key vendors on how to increase sales in your store and attend educational seminars, all-industry cocktail receptions and dinners in an exclusive 5-star resort setting.
Learn More About Your POS System at the Hardware Technology Forum Epicor will offer full-day, hands-on training sessions for retailers. Bring your tablet or laptop so you can log right into your store as you learn new “tips and tricks” to make your POS software more productive in your store.
Honor the Industry’s Best Retailers at the 2019 Beacon Awards The Beacon Awards are an important recognition program that honors the best of the best dealers who represent the future of the industry. Sponsors:
Co-Sponsors:
FOR MORE INFORMATION ABOUT ATTENDING THE BEACON AWARDS ALONG WITH ALL OTHER EDUCATIONAL SEMINARS, OPEN FLOOR DISCUSSIONS AND SOCIAL ACTIVITIES AT THE HARDWARE CONFERENCE, VISIT WWW.THEHARDWARECONFERENCE.COM
By John Maiuri
TECHNOLOGY UPDATE
5 Inventory Management products are kept on hand to better serve customers. Pitfalls and How to Here are five common inventory management mistakes that small to Avoid Them mid-sized LBM businesses are mak-
O
ne of the most important facets to any LBM business is its ability to manage inventory. From lumber and building materials to hardgoods, an LBM business is only as successful as its ability to receive, stock and ship inventory. However, inventory processes often need the greatest improvements and not having a robust inventory management system in place can hinder a business’ ability to run an efficient and profitable organization. This is a particularly common challenge for small to mid-sized businesses that have fewer resources— personnel, technology, budget and time—than their big box and larger competitors. It is extremely important that inventory managers focus on streamlining purchasing and inventory processes to drive efficiency, eliminate errors and reduce costs for their business in order to remain competitive and lucrative. No matter the size of the LBM business, effective inventory management can make the difference between failure and success, and even the most basic solutions can ensure that appropriate levels of www.TheHardwareConnection.com
ing and how software can help managers avoid them: 1. Inaccurate inventory recording—Human errors are inevitable when relying on manual inventory processes involving physical counts or disconnected spreadsheets with different data systems. Unfortunately, practices like these are common in the LBM industry. Results from ECi Software Solutions’ “Warehouse Management Woes” customer survey showed that 53 percent of small to mid-sized LBM businesses conduct manual inventory counts at least once a quarter and 50 percent have challenges counting or reconciling inventory. It is important that businesses implement accurate inventory discipline and recordkeeping practices, so they can effectively balance inventory levels to ensure the proper stock is on hand. To support this, managers should look for a solution that includes simple and direct data entry to reduce elapsed time from taking a count. The easier it is for staff to enter counts and report on discrepancies, the more likely it is to have accurate recounts. The days of THE HARDWARE Connection ■ April 2019 ■ 61
TECHNOLOGY UPDATE closing LBM businesses early to do physical inventory are in the past for most dealers today. 2. Inefficient processes in unloading, storage, purchase order reconciliation and receipt—Due to lack of time, personnel and financial resources, small to mid-sized businesses can fall victim to inefficient unloading, storage, purchase order and receipt processes. Pitfalls in process alignment with a software solution are often the start of other costly mistakes including difficulty accessing merchandise, over-ordering and misplaced stock. In situations like these, it is imperative that businesses have a solid immutable documentation process in order to identify issues and hold personnel accountable for their actions. Having transparency into employee interactions with inventory and material handling is a musthave for LBM inventory managers. Additionally, some inventory management solutions are integrated with scanning and tagging capabilities that provide a visual aid for customers and employees looking to track down an item. 3. Excess stock—Accurate inventory levels are critical for effective ontime and in-full delivery management, as well as reducing the challenges of managing excess stock. Inefficient inventory control leads to wasteful 62 ■ THE HARDWARE Connection ■ April 2019
spending and, if money is tied up in excess inventory, the business cannot invest in other areas that provide a greater ROI. Precise stock and sales information is essential to leveraging automated purchase order builds and reducing stock outages. Having access to a solution that compiles important benchmarking information about the business is key to making good decisions and driving future performance. 4. Time-consuming, physical inventory tallies—Without efficient storage and accurate inventory recordkeeping, expensive physical inventory tallies must be performed more often and are less reliable than ongoing electronic monitoring and updating. The ECi “Warehouse Management Woes” survey found that 82 percent of small to mid-sized businesses complete scheduled physical inventory counts. Integrated inventory management software with intelligent automated solutions can streamline this process immensely, reducing costs and offering a more accurate understanding of actual inventory levels. 5. Inventory disorganization and poor labeling—Inventory managers are often confronted with challenges when inventory is stocked in different areas of the store or warehouse. When items cannot be located quickly by employees or customers, businesses lose valuable time and potential sales. Among small to mid-sized www.TheHardwareConnection.com
businesses responding to ECi’s “Warehouse Management Woes” survey, 25 percent reported challenges finding certain stocked items. In addition to documented processes and maps of the store, signage and well-labeled stock shelves with clear item descriptions are helpful in mitigating this issue. Believe it or not, inventory management can be made a time- and resource-efficient process through advanced technology and documented processes. LBM businesses, particularly small to mid-sized, should fully utilize the best practices and software that enable them to optimize their resources and profitably
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grow the organization to compete with their big-box counterparts. Leveraging technology to streamline business processes is key to running an effective and profitable organization and can offer businesses many options when it comes to improving the inventory management process. For businesses with multiple locations, some software systems can even offer consolidated purchasing options that assess the needs of the entire enterprise, improving efficiency, fulfillment, balancing and maximizing volume discounts for the business. n John Maiuri is president of LBM and Hardlines Division at ECi Software Solutions.
THE HARDWARE Connection ■ April 2019 ■ 63
OUR 60,000+ READERS AREN’T THE ONLY ONES WHO’VE NOTICED OUR EXCEPTIONAL EDITORIAL!
2019 Digital Awards
2018 Regional Bronze
2017 Eddies Digital Award
2018 Eddies Digital Award
Honorable Mention for
Award for Best E-Zine
for Best Standalone B2B
for Breaking News
Best Digital Magazine
American Society
Digital Magazine
Coverage
FOLIO: Magazine
of Business
FOLIO: Magazine
FOLIO: Magazine
Publication Editors
The Hardware Connection has won six awards for editorial excellence in the past five years. We just received a 2019 FOLIO Digital Awards honorable mention for Best Digital Magazine. This follows winning a 2018 Eddies Digital Award for Breaking News Coverage, a 2018 Regional Bronze Award for Best E-Zine from the
American Society of Business Publication Editors and a 2017 Eddies Digital Award from FOLIO for Best Standalone Digital Magazine in the B2B category. We strive to bring our readers editorial content that is relevant and retail-focused, and these awards demonstrate the quality and credibility of our editorial content.
Just Another Reason Why We Are the Industry’s Digital Leader!
BARBECUE AND GRILLING TRENDS May is National Barbecue Month, representing the beginning of peak grilling season. The Hearth, Patio & Barbecue Association (HBPA) shares top trends expected for the barbecue, grilling and outdoor living categories for 2019: • Small is the new big. After several years of barbecue manufacturers expanding product lines to include smaller, more mobile grills, manufacturers this year present smaller hearths for the home, as well as smaller grills for the patio. The offerings reflect consumers’ desires for smaller houses, condos and townhouses, as well as their desire to take their patio experience “on the go” for camping, glamping and tailgating. • Black and chrome are back. As manufacturers continue to present colorful grills and accessories, many of the new and prominently presented barbecues return to the traditional black and chrome coloring, allowing consumers to continuously update and modify their patio spaces around the more traditional grill colors. • Patios are the new primary kitchens and dining rooms. Manufacturers continue to present innovative, tech-enhanced outdoor kitchen islands built around premium barbecues, as well as hearth-centered tables, outdoor built-in audio/ TV systems and other accents that www.TheHardwareConnection.com
CATEGORY REPORT Clarkston Ace Hardware in Clarkston, Mich., has become a destination for grills and barbecue accessories.
meet consumers’ desires for a full outdoor living experience in their backyard. • Wood pellet grills are among the fastest-rising grill types. Pellet grills are versatile and will grill, roast and smoke. Because of their small size, wood pellets burn cleanly and quickly to a fine ash to create the ultimate wood-burning fire. • Technological advances continue to surge. Grills have had smart capabilities for the past few years, but most controllers have only worked locally while the user remains in range. New technologies allow monitoring grill and hearth temperatures from farther distances. Why do people grill? Of all grill/smoker owners, top reasons are: flavor (72%), lifestyle (52%), entertainment (40%), convenience (33%), hobby (19%), flexibility (18%) and health (18%). Other highlights from the HPBA study on ownership and purchase trends include: THE HARDWARE Connection ■ April 2019 ■ 65
• Seven in 10 U.S. adults own a grill or smoker, and in Canada, ownership is 8 in 10. • More than one-third (35%) of U.S. adults planned to purchase a new grill or smoker in the coming year. • Gas is the most popular grill type (64%), followed by charcoal (44%) and electric (9%). • Wood pellet grill ownership is currently 3%, but 11% of the prospective buyers plan to purchase one in the coming year. • 56% of grills were purchased as replacements, while 29% were firsttime purchases.
OUTDOOR POWER EQUIPMENT TRENDS
Upper: Lucy Hardware in Intervale, N.H., has a strong niche in STIHL outdoor power equipment. Lower: Bomberger’s in Lititz, Pa., includes a John Deere dealership.
gas engine equipment troublesome for many users. • The global market for outdoor power equipment is estimated to reach 133 • Growth in alternative power sources is a continuing trend, with more promillion units by 2022, according to pane mowers being developed as Global Industry Analysts Inc., driven acceptance grows with end users in by recovering construction activity the commercial landscaping industry. and the increasing trend of outdoor The advantage of lower operating living and the resulting focus on crecosts will make electric mowers grow ating artistic outdoor spaces. in popularity in the near future. • Battery-powered tools for lawn and • Robotic mowers are gaining in garden work are gaining popularity demand as technology improves and as a hassle-free alternative to gascosts go down. powered models. The rise in lithium• Mower manufacturers are workion battery technology has been ing to refine mower blades that extended to larger cordless tools like don’t require sharpening. Instead, lawn mowers and blowers. Besides they sharpen as they cut grass, noise and air pollution benefits, batwhich saves maintenance time and tery-powered OPE also bypasses the improves the quality of the cut. n maintenance hassles that make small 66 ■ THE HARDWARE Connection ■ April 2019
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OUTDOOR POWER EQUIPMENT AND GRILLING PRODUCTS
BR 800X MAGNUM® BACKPACK BLOWER • The most powerful blower in the STIHL line is here. The Americanbuilt BR 800 X MAGNUM® is the ideal machine for professional landscapers tackling large properties. • With a 4.4 bhp engine, the BR 800 X offers 20 percent more power than the BR 700, allowing you to clear leaves, grass and heavy debris faster and more efficiently. • Features ergonomic S-shaped shoulder straps and an easily adjustable handle, allowing each user to select their most comfortable position. It also includes a hanging slot for convenient storage when not in use. • Also features a multi-function, rubberized control handle for comfortable grip and easy access, STIHL anti-vibration system to reduce fatigue, semiautomatic choke lever to save time and one-touch stop switch. STIHL USA www.STIHLusa.com 800-467-8445 www.TheHardwareConnection.com
805 ISLAND DELUXE • Get the ultimate grilling experience with 6 stainless steel burners, white granite surfaces and sides, 2 cooking surface halogen lights, control knobs with blue LED lights, rotisserie kit with electric motor, temperature gauge, bottle opener and stainless steel warming rack. • Main cooking surface is 38” x 18” with 115,000 BTU heat output and easy access grease trays for easy cleaning. • Features ceramic infrared side and rear burners, granite chopping board, electronic ignition and all stainless steel components. • Also available is cast-iron enameled griddle plate. Mont Alpi www.MontAlpiOnline.com 949-207-9595 THE HARDWARE Connection ■ April 2019 ■ 67
IN THE NEWS NEW STORES: • Dan Hessler opened Hessler Paint & Hardware in Delray Beach, Fla. • Bill and Pam Horton opened Lake Conroe Ace Hardware in Montgomery, Texas. • The Madden family opened their sixth Madden’s Ace Hardware in Asheville, N.C. • US LBM Holdings has acquired Bailey Lumber & Supply, which operates six stores in Mississippi. • Busy Beaver is opening a new store in Elkins, W. Va. • Winford Jones, owner of Shipshewana Hardware in Shipshewana, Ind., has purchased Cottin’s Do it Best Hardware of Sturgis, Mich. • Dan Hansen has opened his third Frary Lumber location in Fulton, Ill. • Scott Geiser is opening 222 Hardware, a True Value store in Cozad, Neb. • Randy and LaShae Bock have opened a new location for Bethlehem Ace Hardware in Hickory, N.C. • Lauren Melancon and Vanessa Melancon Pierce have acquired Kief Hardware in Cut Off, La., from James Cabirac, doubled the size and changed name to Melaco Sisters Hardware & Melaco Sisters Hardware Supplies. 68 ■ THE HARDWARE Connection ■ April 2019
• Cainen Gilde has opened Lakeside Ace Hardware in Cadillac, Mich. • Greer’s Old Bay Ace Hardware has opened as a combination grocery and hardware store in Theodore, Ala.
KUDOS TO: • Umber’s Do it Best Hardware, owned by David Umber in Fort Wayne, Ind., is celebrating its 75th anniversary in 2019. • Lincoln Hardware in Tacoma, Wash., is celebrating its 90th anniversary in 2019. • True Value Company honored 13 retailers as “Best Hardware Store in Town:” Akard True Value Hardware, Zionsville, Ind,; Caldwell True Value, Caldwell, Idaho; Cornell’s True Value, Eastchester, N.Y.; Dr. Ike’s True Value Home Center, Laredo, Texas; Fruita True Value, Fruita, Colo.; K&B True Value, Annapolis, Md.; Marv’s True Value, Princeton, Minn.; Moore’s True Value Hardware, Loxahatchee, Fla.; Palm Springs True Value Hardware, Palm Springs, Calif.; Soli Home Center True Value, Fajardo, Puerto Rico; Triangle Building Supplies, Bellefonte, Pa.; True Value Hardware Missouri Flat Road, Placerville, Calif.; and Waters True Value, Wamego, Kan. www.TheHardwareConnection.com
IN THE NEWS
PEOPLE ON THE MOVE: • House-Hasson Hardware has named Connie Brooks product manager for paint and electrical to replace Houston Bowlin, who retired after 31 years. Ryan Helfenberger was hired as product manager for seasonal, automotive and sundries at Knoxville and Prichard and buyer for paint and electrical at Prichard. • Emery Jensen Distribution has hired Travis Wilcox as vice president of sales-East. • Brett Stephenson, with six Ace stores in Colorado and Wyoming, is the new chairman of Ace Hardware Corp., replacing Jim Ackroyd of Vision Ace Hardware, whose term ended. • Do it Best Corp. has named Rob Schmiedel sales operations manager, Greg Fuller national sales manager and John Wade strategic account manager.
Rob Schmiedel
Greg Fuller
John Wade
GET THE FULL STORY: • Sears opening small-format stores. Click here:
key salesmen, House-Hasson Hardware plans to expand its main warehouse in Knoxville, Tenn., by 100,000 square feet to support the new customers added in several states. The combined cost for the HDW inventory and expanding the Knoxville warehouse to 500,000 square feet will be about $10 million, said Don Hasson, president of House-Hasson. HDW, based in Greenwood, Miss., ceased operations on January 4, 2019. “We’ve added eight former HDW salesmen, which is growing our customer base in Texas, Louisiana, and Arkansas,” Hasson said. “With their territorial knowledge and our focus on store dealer profitability, they’re having an immediate impact. We’ve quickly added 200 new hardware store and lumberyard customers.” In 2018, House-Hasson’s Prichard, W.Va., warehouse underwent a 50,000-square-foot enlargement and modernization. The Knoxville warehouse expansion is expected to be completed in summer 2019. Until then, the HDW inventory will be split between Knoxville and Prichard. “Last year’s Prichard expansion is serving us well, because it’s better able to serve our customers in Pennsylvania, Ohio and other states to the north,” Hasson said. “As our customer base grows in the west, we may
HOUSE-HASSON GROWTH LEADS TO WAREHOUSE EXPANSION After spending $2.5 million to purchase inventory from the now-closed Hardware Distribution Warehouses (HDW) and hiring its www.TheHardwareConnection.com
House-Hasson is expanding its Knoxville, Tenn., warehouse by 100,000 square feet. THE HARDWARE Connection ■ April 2019 ■ 69
IN THE NEWS look at a distribution center somewhere in that region, but that’s not in our plans at the moment.” “HDW was in many cases a secondary supplier to dealers, but House-Hasson can be their primary supplier, which saves them time and money,” said Pat McCutcheon, vice president-sales for House-Hasson. Over the years House-Hasson has purchased all or part of six hardware distribution companies, Hasson said.
Ace President John Venhuizen got Starbucks guru Howard Schultz to share some of his business philosophies that apply to Ace retailers.
power and barbecue. “The bulk of our media spending will be purposeful to drive traffic in these categories,” she said. “The way we connect with consumers has to change. The consumer is shopping differently and we need to build a digital foundaACE HARDWARE REFLECTS ON HISTORY TO tion,” she added. Ace is piloting a digital marLOOK FORWARD keting tool to enable retailers to do their own custom digital marketing, which is expected to In marking its 95th anniversary this year, go live by the third quarter, she said. Ace Hardware Corp. is looking forward to Howard Schultz, chairman emeritus of future growth by remembering its name folStarbucks, joined Ace President and CEO John lows the tradition of the Flying Aces, the couVenhuizen on stage during the general session rageous pilots of World War I who battled to discuss lessons Ace retailers can learn from enemy aircraft during combat. “We had 133 owners those first 25 years. Think his business experiences. Roughly 100 million go through Starbucks of yourself as the Flying Aces of this generation,” every week, but the company has no proprisaid John Surane, executive vice president and chief merchandising and sales officer, addressing etary technology, Schultz pointed out. “Our Ace members in attendance at the co-op’s spring people and sense of humanity is what differentiates us. We have to exceed the expectaconvention in Orlando. tions of our people, so they exceed the expecSurane said Ace wants to win the war for tations of our customers.” retail relevance by fighting battles for service, Schultz added, “People are seeking a convenience and quality. Toward that end, he sense of community. There’s an epidemic said Ace is focused on being famous for four of loneliness in America. The currency of categories: backyard barbecue, paint, power building a great retail operation is built on and home preservation. trust. Customers want to support compaAce reported 257 new stores were added in nies whose values are the same. It’s also 2018 and online sales for Acehardware.com critically important to celebrate success. rose 43 percent last year. We’re going to fail, but we want to fail fast, Kim Lefko, chief marketing officer, said learn from it and move on.” n Ace wants to double market share for paint, 70 ■ THE HARDWARE Connection ■ April 2019
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UPCOMING EVENTS MAY Do it Best Corp. Spring Market May 17-20, Indiana Convention Center, Indianapolis
Independent Garden Center Show and Independent Home Improvement Show August 13-15, McCormick Place, Chicago
National Hardware Show May 7-9, Las Vegas Convention Center, Las Vegas, Nev.
Orgill Fall Market August 22-24, McCormick Place, Chicago
JUNE House-Hasson Hardware Summer Dealer Market June 13-15, Sevierville Events Center, Sevierville, Tenn. PRO Group 2019 Group Merchandising Conference June 17-19, Embassy Suites AtlantaCentennial Olympic Park, Atlanta United Hardware Fall and Winter Buying Market June 28-30, Minneapolis Convention Center, Minneapolis
JULY Alabama Farmer’s Cooperative AFC Booking Show July 8-10, Renaissance, Montgomery, Ala.
AUGUST Florida Hardware Fall Market August 16-18, Double Tree Hotel & Convention Center, Orlando, Fla.
The Hardware Conference August 16-18, Marco Island, Fla. www.thehardwareconference.com
SEPTEMBER Ace Hardware Corp. Fall Convention September 6-8, Georgia World Congress Center, Atlanta Blish-Mize Fall Dealer Market September 19-21, Overland Park Convention Center, Overland Park, Kan. Bostwick-Braun Company Fall Dealer Market September 19-21, 2019; Seagate Center, Toledo, Ohio Emery Jensen Distribution Show 2019 September 16-21, Anaheim Convention Center, Anaheim, Calif. Horizon Distribution Trade Show & Conference Expo September 6-8, Convention Center & Sundome, Yakima, Wash. Monroe Hardware Fall Market September 13-15, TD Convention Center, Greenville, S.C.
For a complete listing of calendar dates, click here. www.TheHardwareConnection.com
THE HARDWARE Connection ■ April 2019 ■ 71
RETAIL IDEAS
WOODSTOCK HARDWARE CAPITALIZING ON AIRBNB TREND As more homeowners across the U.S. look to capitalize on the popularity of Airbnb, independent retailers are capitalizing on the opportunity to supply those homeowners with the products and services they need to keep their properties clean, safe and inviting. Take Woodstock Do it Best Hardware in Woodstock, N.Y., where Owner Vince Christofora has strategically positioned his store as “Airbnb specialists” to cater to the growing number of Airbnb-listed properties throughout the region. “We’re two and a half hours north of New York City in an area where the Airbnb market has exploded. Two to three years ago, there were 30 Airbnb listings here and now there are a couple hundred,” he explains. Woodstock Hardware features a large gourmet kitchen and housewares shop, Diane’s Kitchen, so they were poised to provide needed supplies. Christofora made sure his store was the go-to place for all the products needed by Airbnb owners and renters, products such as smart-home technology, pest and rodent control, cleaning, kitchen appliances, pots and pans, trash cans, fireplace accessories, fire starters and ice melt. “We now have 5,000 SKUs in the kitchen store, but we never sold bath towels and bed sheets before,” Christofora says. Some of these Airbnb companies are able to gain status as a silver or 72 ■ THE HARDWARE Connection ■ April 2019
Vince Christofora, owner of Woodstock Do it Best Hardware, has found success as an Airbnb specialist, selling everything from kitchen gadgets to trash cans.
gold renter if they offer amenities like an ironing board, iron and hair dryer, so Woodstock Hardware is happy to meet those product needs. Lawn care, pest control and cleaning companies can all take advantage of Woodstock’s Wholesale Supply division to get wholesale rates on large purchases. Christofora also offers services that are unique to these customers such digital/ electronic invoicing and billing, free delivery and laundry services. “Our sister business is Woodstock Laundry. We opened a laundromat in town with a drop-off laundry service. It’s a big thing with changeover from guests at Airbnb places, so they can drop off sheets and towels to us,” he says. Christofora adds, “There’s a whole cottage industry of cleaning companies along with management companies that have sprung up and manage 10-12 Airbnb properties, while some are taken care of by individual owners. We’re the go-to place for both types. When they need a new kitchen trash can, they come to us.” Woodstock Hardware features a strong smart-home products section, so Airbnb property owners can buy smart locks that enable them to program in a key code for www.TheHardwareConnection.com
a specific time period or a set code for the cleaning company. They promote the Airbnb specialists niche on the store website (click here) and promote as a service with window signs in the store, but mainly it’s word of mouth. “The digital component of the website also brings in the end user. They may need more firewood or fire starters for the firepit, and they know to come to us,” Christofora explains. Summer and holidays are the busiest times for this unique niche. “Quite frequently the cleaning company goes to do a changeover and there are sheets and towels missing, so they come to us. It even brings in the guests, like when they’ve broken something like a screen,” says Christofora, who adds that his Airbnb specialist business continues to grow, but it’s not in his top five departments yet. n
Petersburg Do it Best Hardware used an old color chip display to showcase back splash and flooring options.
Using the old display unit and a utility knife, Smith created an attractive display of the peel-and-stick materials. “I made sure to do it myself, so I can talk to all the female customers about how easy it was to make,” she says. “We had dabbled in these products before, but never found a way to display them properly for customers.” The kits and boxes are on shelves next to the display, with mailbox numbers used to CRAFTING A CREATIVE coincide with the display to make it easy for MERCHANDISING SOLUTION customers to know which one to pick up. “We put it next to the new color chip disThe team at Petersburg Do it Best Hardware in Petersburg, Ind., recently tackled play, so customers can pick and choose colits own do-it-yourself project to come up with ors to go with it as a one-stop shop,” Smith points out. “This was a dead space area a creative merchandising solution. before, but it looks nice now.” Instead of discarding an outdated color Smith completed the display in three days chip display unit, Manager Robin Smith in January, demonstrating that with a little decided to repurpose it to promote easy-tovision and grit, refreshing old displays can assemble back splash and flooring projects. bring new life to trending products. Normally, these products would just be “We’re growing sales with these products stacked in boxes on the shelf, making it difficult for customers to envision how the prod- now. We’re starting to see contractors come in and look at the display,” she adds. n ucts would look installed. www.TheHardwareConnection.com
THE HARDWARE Connection ■ April 2019 ■ 73
E H T D N I H E B NUMBERS
2.2%
Percentage of U.S. economic activity in 2017 attributed to remodeling industry.
$425 billion
Amount spent on repairs and improvements to owner-occupied and rental properties in 2017, with $233 million of that total spent on homeowner improvements, according to “Improving America’s Housing 2019” report from the Harvard Joint Center for Housing Studies.
150%
Percentage home improvement spending by households 55 and over has grown from 1997 to 2017.
$30 billion
Homeowner spending on repairs following natural disasters, accounting for 6% of U.S. home improvement spending in 2016-17.
40%
Percentage of 137 million homes in the U.S. that are at least 50 years old.
$2,900
Amount spent on home improvements in 2017 by homeowners under age 35, up from $2,100 in 2013. 74 ■ THE HARDWARE Connection ■ April 2019
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