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The Orgill Advantage:
Many
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Bryan Gilbert 19 years with Orgill Texas Rep
One of Many Scott Rizzoto 21 years with Orgill Northeast Rep
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Join a company that’s committed to taking your business as far as you can dream it.
Read how Mike and Brenda MacKay built for growth at doitbestonline.com/Vassar.
Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666
Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864
Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
Senior Editor: Doug Donaldson doug@thehardwareconnection.com 646-508-7904
Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com
National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624
Contributing Writers: Gary Pittsford, Craig Webb
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By Chris Jensen
Buyers and Sellers Have Lots of Dance Partners
Merger and acquisition activity accelerated during the pandemic and has shown no signs of slowing down. The retail landscape is changing dramatically, as more multi-store retail chains are emerging. It is reminiscent of the 1980s and early 1990s, when regional chains like Grossman’s, Hechinger, Central Hardware and Pay ‘n Pak were dominant players in the industry.
Vendors used to love it when a buyer who controlled purchasing power for 20 or more stores walked into their show booth—those days have returned. Companies like The Aubuchon Company, TAL Holdings, Nation’s Best, Rocky’s Ace, U.S. LBM, Bomgaars Supply, Costello’s Ace, Central Network Retail Group, Great Lakes Ace and R.P. Lumber are among those aggressively seeking out acquisition targets.
For retailers looking for an exit strategy, they might now have multiple retail chains interested in taking a peek at their books. Geography is becoming less of an obstacle, as Westlake Ace is making deals in New York, North Carolina and California; Costello’s Ace is stretching down to Maryland and Virginia; while The Aubuchon Company is expanding from the Northeast down into Maryland, Virginia and Pennsylvania. No longer do
independent retailers have to bemoan the fact local buyers are hard to find.
Once a retailer gets beyond three stores, they have figured out economies of scale and how to operate with efficient systems and processes. It’s exciting for employees to work for a retail company that’s adding stores, since that opens up opportunities for all.
Turn to page 39 for Gary Pittsford’s column on “Where to Start with Exit Planning.” It offers good advice for those wondering what the future holds. Too many retail owners are reaching retirement age without putting much thought into what happens to their business when they are finally ready to walk away. Even worse, their business is not in good shape for a transition. It is a multi-year process preparing a business for sale and getting inventory and financials in order.
The retail acquisition game is like a dance, and there will always be some left standing on the sidelines because the most attractive dancing partners get pursued first. If you haven’t remodeled your store in decades and your store is filled with inventory holes and you haven’t embraced digital marketing and the latest retail technology tools, then don’t be surprised if potential buyers take a pass. n
By Craig Cope
Retail Consolidation Remains a Hot Topic
It’s hard to believe that it’s already April and we are in the midst of planning the 35th anniversary edition of The Hardware Conference, hosted at the JW Marriott Marco Island Beach Resort on August 18-20, 2023. This year’s conference will focus on the theme of retail consolidation from both the buyer and seller perspectives. With the frequency of press releases detailing the acquisition of independent hardware stores, retail consolidation feels like a daily occurrence.
In May 2022, we released a special report on this topic titled “Are You a Buyer or a Seller?” You can view the issue by clicking here. As retail consolidation remains a hot topic, the conference will feature professional speaker and serial entrepreneur Tom Bronson, who will facilitate an open dialogue session on the subject.
Tom Bronson is the founder and president of Mastery Partners, a company that equips business owners to maximize business value to achieve their dream exit. Mastery utilizes proven techniques and strategies that dramatically improve business value developed during Tom’s career of 100 business transactions as either a business buyer or seller.
As a business owner, he has been in your situation a hundred times and
knows what it takes to craft the right strategy. Bronson is passionate about helping business owners and has the experience to do it. In addition, Tom owns and operates Mastery Mergers & Acquisitions and The Business Transitions Summit. Both of these companies align with Tom’s passion for business owners to achieve their dream exit.
Tom Bronson
Before forming Mastery Partners, Tom served as president and CEO of Granbury Solutions, serving foodservice, retail and winery technology markets with the industry’s first recurring revenue model offering an end-to-end suite of technology to those markets.
Under Tom’s leadership, Granbury Solutions enjoyed consistent annual growth and served more than 9,000
Go from constantly wasting money on dead stock to freeing up $100,000 in tied-up, unsold inventory.
Just like lumber dealer Exotic Woods did with Spruce!
Moving away from their clunky software was a no brainier for Exotic Woods, but they had no idea how much it held them back. When they found Spruce, ECI’s end-to-end business management solution created specifically for lumber and home and building suppliers, they knew it was time to make a change.
Since being live on Spruce, Exotic Woods has gone from storing orders in a paper box to a full, streamlined document management system that has saved significant time and money.
10 hours per week shaved off payroll
$2,000 saved in paper costs annually
$100,000 savings in inventory
TREND WATCH
customers worldwide, landing it on the Inc. 5000 list (4 times), the Tech Titans FastTech fastest-growing technology companies (6 times) and the Dallas 100 list. Tom was a finalist for the EY Entrepreneur of the Year award and is a nationally recognized speaker on business strategy, leadership, recurring revenue growth and innovation. He serves on the editorial advisory board for Software Executive Magazine and on the board of directors as well as the current president of Business Navigators.
Conference attendees will receive free copies of both of Tom’s books: “Maximize Business Value, Begin with the EXIT in Mind” (2020) and “Maximize Business Value Playbook,” (2022).
The Hardware Conference unofficially begins with Epicor hosting a full-day, hands-on POS training workshop. Friday features wholesaler luncheons during the day, and it is capped off with the Beacon Awards cocktail reception and awards banquet, which honors the “Best of the Best” retailers in the industry. This year’s Beacon Awards are sponsored by Epicor, Ettore and Fluidmaster and wholesale sponsors Do it Best and Orgill.
Saturday begins with breakfast on the outdoor terrace overlooking the pool and Gulf of Mexico. The Conference exhibit floor opens after breakfast, providing retailers with one-on-one interactions with some of the industry’s top manufacturers and service providers. Saturday night’s dinner is highlighted
by a live auction of exhibiting manufacturers’ booths or other donated items, with all proceeds benefiting the Nicklaus Children’s Health Care Foundation (NCHF). Over its 35-year history, The Hardware Conference has raised more than $1.2 million and we’re looking forward to another successful year.
On Sunday, retailers and manufacturers can take advantage of the exhibit time and wrap-up session to continue their conversations during the final open dialogue. Additionally, the conference provides an opportunity for all attendees to unwind and appreciate the natural beauty of Marco Island and its surroundings.
The registration fee of $129 includes a half-day activity on Saturday afternoon, such as 18 holes of golf at a top-rated course, exclusive beach access with various activities, air-boat tours of the Everglades or a shelling excursion to explore one of the many barrier islands.
Undoubtedly, the Hardware Conference is one of the industry’s most unique and rewarding events. 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 connect with other store owners nationwide? Have you had a chance to take some time off to recharge your batteries? The Hardware Conference on Marco Island offers the opportunity to do both. You simply won’t find a better deal! n
Welcome to The Hardware Connection Century Club!
The Hardware Connection Century Club, sponsored by Intermatic Inc., recognizes “The Innovators and Survivors Who Helped Build America.” Our Century Club currently includes 755 hardware and LBM retailers, 16 wholesalers and 188 manufacturers that were founded in the United States of America and remain in business after 100 or more years.
You can find the complete list of Century Club members including old store photos and links to company history by clicking here. We congratulate the following 31 retailers who have been added to The Hardware Connection Century Club this year:
Allers Lumber Company, Lindenhurst, NY—1923
Anawalt Lumber & Hardware, Los Angeles, CA—1923
Andrews Ace Hardware, Citronelle, AL—1923
Arlington Coal and Lumber, Arlington, MA—1923
Bivens Hardware, Pickens, SC—1923
Canaan Hardware and Supply, Canaan, NH—1923
Caribou Jack’s Trading Company, Soda Springs, ID—1903
Carthage Hardware, Carthage, MO—1878
Christensen Lumber Company (now part of Kodiak Building Partners), Fremont, NE—1923
Davis-Hawn Lumber, Dallas, TX—1923
Duvall Ace Hardware & Garden, Duvall, WA—1912
Gasser Hardware & Farm Supply, Boscobel, WI—1923
Gerretsen Building Supply (div. of TAL Holdings), Roseburg, OR—1923
Heuser Hardware, Jeffersonville, IN—1923
Jim’s Point Marion Hardware, Point Marion, PA—1903
LeVahn Brothers Plumbing and Hardware Hank, Maple Grove, MN—1923
Liberty Lumber Yard, New Orleans, LA—1923
Markel Lumber Company, New Orleans, LA—1923
Maxwell’s Hardware, Downingtown, PA—1897
McDougald’s, Clarkton, NC—1917
Mt. Pleasant Hardware, Providence, RI—1923
Nitterhouse Masonry & Hardware Supply, Chambersburg, PA—1923
Olson’s Ace Hardware (formerly Dressel’s Hardware), Oak Park, IL—1923
P.C. Smith & Son Hardware, Saugerties, NY—1914
Pilot Lumber Company, Bellevue, KY—1919
Prince Lumber, Newark, NJ—1923
San Antonio Lumber, San Antonio, FL—1923
Schneider Hardware, West Orange, NJ--1923
Shattuck Heights Hardware (formerly Wanamaker Hardware), Arlington, MA—1923
Shelly’s Building Supply (now part of US LBM), Telford, PA—1923
Smith Lumber Company, Valley City, ND—1923
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In February 2019, we had a really bad ice storm in Tennessee. There were about two inches of ice on the awning of the store. The whole front of the building fell off. Awnings, siding, lighting, everything. There were two employees in the store that day but luckily no customers and I heard this big crash. I thought maybe a semi had crashed into the store. I looked to the right of the store and half the building had fallen off. I called the insurance company first, then my husband. That was about 9:30 in morning and at 1:30 in the afternoon, I heard another crash.
HARDWARE STORIES butAmazing TRUE
The other side of the building fell off. The ice had gotten between the brick façade and building. I’m a glass is half full person, so the first thing I thought was: I’m going to get a new sign. We had to shut down the rest of the week through the weekend, but we were opened back up on Monday. Ginny Williams Gil’s Hardware Smyrna, Tenn.
My whole story of buying the store is interesting. It was all fun and games when I first bought it, but when I got a good look at the books I had to regroup and rethink how I approached the store. There have been customers coming in here 40, 50, 60 years. The store is 154 years old, and I’m only the second owner after the original family. The store is one of the first members of the Chamber of Commerce. When I first came in, the yard used to be the quietest place. Now that’s changed and there’s a new atmosphere. Brant Cornelison Brain Lumber Springfield, Ohio
One of the funniest was when a woman came into our store and told us that our bathroom was listed on Craigslist as a casual encounter place. The post even had pictures of our bathroom. My wife, who was working in the front near the home and gifts department, heard this. Then this guy walks in. He’s 6-foot, 5-inches in overalls with no shirt and asks where the bathroom was. My wife freaks out. But we find out he just wanted to use the bathroom. Bill Wygal Bill’s Ace Hardware Martinez, Calif.
HARDWARE PRODUCTS REVIEW ShopTalk
PRODUCT #1:
PROSERIES SUPER SYSTEM
ETTORE PRODUCTS
As spring brings much-needed relief from winter’s cold and dreary days, our thoughts turn toward outdoor home projects. Gardens are being planted, pools are opening, baseball is on TV and it’s time for spring cleaning to begin. One popular task is cleaning the windows, but it’s unlikely that many people look forward to that. However, using the proper tools for the job can turn a once-dreaded task into something easy to complete with the highest quality. This is where Ettore, the number one brand for professionals, shines.
Ettore Steccone invented the window squeegee more than 80 years ago and the company is still familyrun today, servicing both the professional and the homeowner. We tested their 18″ ProSeries Super System— washer, squeegee, extension pole, bucket and soap.
One of the key features of these products is their high-quality materials. The washer and squeegee are
By Craig Cope
made of durable materials that can withstand heavy use without wearing down quickly. Both tools also pivot, providing users with greater flexibility and delivering professional results. The extension pole is made of lightweight aluminum, making it easy to maneuver and control. Additionally, the company provides numerous videos on basic techniques utilized by professionals— click here to watch.
We provided our samples to a group of homeowners who dreaded cleaning windows. Each tester commented on the overall fit and feel of the tools and the difference a professional tool makes in the cleaning process. One tester even remarked, “I found it almost therapeutic. The tools made the job easy and delivered results that I enjoy every time I look out of my clean windows.”
The Ettore line of window-cleaning products is a must-have for any hardware store that offers cleaning supplies, both for professionals and homeowners. Your customers might even enjoy cleaning their windows!
STIHL
Over the years, we have written numerous product reviews on a wide range of STIHL products. No STIHL product was as popular with our
ShopTalk
testers as the STIHL GTA 26 Garden Pruner—click here to view it . That was until we had the opportunity to test the STIHL HSA 26 battery-powered garden shears.
The STIHL HSA 26 is a compact, lightweight trimmer designed for small tasks around the home or garden. It is the perfect tool for trimming and shaping ornamental plants, shrubs and bushes. One of the standout features of the STIHL HSA 26 is its compact size. It is easy to maneuver and can be used in tight spaces where larger hedge trimmers would be too cumbersome. The HSA 26 is also very lightweight (2.5 pounds), making it easy to use for extended periods without fatigue.
It features a 10.8-volt lithium-ion battery that provides up to 120 minutes of run time on a single charge and is compatible with the STIHL AS System. The double-sided cutting blades allow for cutting in both directions, making it better for those hard-to-reach areas. The blades also deliver excellent cutting performance at a high rate of speed at 2,200 strokes per minute. Click here to see the HSA 26 in action.
We used the same group of product testers from our review of the GTA 26 Garden Pruner, since the two products
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HARDWARE PRODUCTS REVIEW
are closely related in size and application. Many commented on the ergonomic design, rubberized grips and outstanding cutting performance. One tester’s comments stood out the most: “The GTS 26 Garden Pruner and HSA 26 go together like peanut butter and jelly.” If your store is a STIHL dealer, the HSA 26 is a true must-have. It’s the perfect tool for both urban and suburban homeowners.
PRODUCT #3: SIKAFLEX® INSULATION SEALANT/ ADHESIVE, SEAM TAPE SIKA CORP.
Sikaflex® is a well-known brand in the construction industry, particularly for its sealant and adhesive products. This review will be unique for us, since we’ll review both the Sikaflex Insulation Sealant/Adhesive and Sika® Insulation Seam Tape, two products that are commonly used together to provide insulation and air-sealing solutions for various types of buildings.
Sikaflex Insulation Sealant/ Adhesive is a one-component flashing sealant. It is designed to bond a wide range of materials, including wood, metal, concrete and various types of insulation boards. This makes it an ideal product for insulating walls, roofs and floors, as well as for sealing gaps and cracks in a building’s envelope. It’s UV stable, highly durable and
paintable with excellent resistance to both weather and moisture. Click here to view a brief video.
Sika Insulation Seam Tape is a selfadhesive tape that is designed to seal seam joints, overlaps of house wrap and interior/exterior vapor barriers. The tape is clear in appearance, allowing the applicator the ability to see the seam or overlap. It provides a continuous barrier against air infiltration, which helps to improve the energy efficiency of a building. Click here to see a video of the product in use.
Since the products are designed for the trade, we utilized a local homebuilder as our test group. They reported that both the sealant adhesive and seam tape performed exceptionally
well, and the range of bonding materials made it the “goto” product for the crew. If your store services the trades, consider adding the Sikaflex Insulation Sealant/Adhesive and Sika Insulation Seam Tape to your product mix.
STRIVING for 5-STAR EXPERIENCES at HAGAN ACE
By Doug Donaldson
As Hagan Ace Hardware prepares to open its 11th location in north Florida, the company builds on four generations of retail hardware experience by embracing new technology and remaining true to business principles that have sustained the company for six decades.
Hagan Ace Hardware’s retail heritage extends more than six decades and starts with founders Don and Ann Brandies Hagan. Raised in Callahan, Fla., Don Hagan worked at Brandies Home and Farm Supply, owned by Ann’s parents, Cliff and Lucille Brandies.
After Don and Ann married in 1955, they worked together at her parents’ hardware store. There, Don and Ann discovered their love for the hardware
Above: The Green Cove Springs staff was fired up for Ladies Night.
business, and the couple went on to purchase their own store in Hilliard, Fla., in 1962.
Their son, Bill, took over the family business in 1990. In 2005, Bill’s son, Jacob, joined the company. Jacob currently serves as director of store operations.
“To know that we’re carrying on as the fourth generation is pretty humbling,” Jacob says. “It’s rewarding to know that we’ve helped so many people over time—not just our customers but the people who work for us. Helping people is fun; it feels good.”
This summer, Hagan Ace Hardware is poised to open its 11th store in Callahan, around the corner from the original Brandies Hardware location. The company has come full circle by methodically expanding, adhering to longtime values,
Lower left: Bill, Don and Jacob Hagan represent three generations of family leadership.
Right: Bill and Debbie Hagan and their son Jacob are carrying on the tradition of service started by Bill’s parents.
developing niche categories, embracing new technology and marketing while providing outstanding customer service.
Today, the 370-plus-employee company boasts stores that range from its 9,000-square-foot East Palatka location to the 60,000-square-foot store in Callahan currently under construction. Each store features a distinct personality—two stores have drive-through lumberyards and all have garden centers with butterfly habitats.
Upper left: Hagan Ace’s store in Yulee, Fla., includes Hagan Coastal Outfitters.
DEALER PROFILE Simplify.
‘WE STRIVE FOR FIVE’ CUSTOMER CARE
Outstanding customer service is a bedrock principle throughout the four generations of Hagan hardware history. To gauge customer satisfaction, Hagan Ace utilizes Ace’s review system, which uses receipts to encourage customers to leave reviews. Reviews are sent to the store manager, operations team and HR. From there, the company evaluates, congratulates and coaches employees to be five-star performers.
One location had several three- and four-star reviews, instead of the desired five-star reviews. So, the store manager challenged cashiers to ask customers if they would like to take a brief, in-person survey. If customers couldn’t
give a five-star review, they were asked if they would like to speak to the manager for just two minutes. After the success of that approach, the “We Strive for Five” program was rolled out companywide in 2022.
“If we didn’t do right in the customer’s eyes, we want to know why,” says
As director of store operations, Jacob Hagan has embraced new technology systems.
Tera Lageman, director of advertising and marketing. “We can’t fix what we don’t know about. And after the manager spent some time with the customers, a lot of those reviews turned into fives simply because the manager was able to directly address the customers’ concerns and show how much we care. The person-to-person contact is invaluable.”
In 2021 and 2022, customer surveys generated about 88 percent overall satisfaction. After the “We Strive for Five” program was implemented, overall customer satisfaction has increased to 91 percent.
“The ‘We Strive for Five’ is a way to remember to never let our guard down and a constant reminder to staff,” Jacob says. “It’s a way to
The company rolled out the “We Strive for Five” program last year to ensure everything is being done to deliver 5-star experiences for customers.
DEALER PROFILE
President Bill Hagan recently recognized Green Cove Springs Manager Joan Saunders for 49 years of service.
reinforce the idea that customers sign our paychecks and only happy customers come back. Also, highly satisfied and engaged customers become our best advertising.”
BUSINESS BENCHMARKS
Along with customer satisfaction as measured by the “We Strive for Five” program, Hagan Ace Hardware continually monitors success with other metrics and goals.
“We’re always looking to do better, from cashiers and the warehouse to sales floor all the way up to owners,” Jacob says.
One primary benchmark: Each of the company’s locations strives to be an Ace Pinnacle Performance Retailer. Metrics that the stores closely follow include customer count and Ace Rewards scan rate. And this year,
Hagan Coastal Outfitters can be found inside six of the 10 stores, offering kayaks, paddle boards, sunglasses and Hagan brand sports apparel.
especially after revamping pricing, Hagan Ace has paid particular focus on margin in core departments.
Another metric that Hagan Ace Hardware includes in its overall strategic plan is sales per labor hour. This measures efficiency and customer inand-out convenience. When looking at these numbers, Hagan Ace’s management team seeks solutions. To boost the sales per labor hour in one store, the front entrance was redesigned for greater efficiency.
NICHES TAKE WING
Attuned to the needs of customers, Hagan Ace has developed niches that are now synonymous with the company. The garden centers and butterfly habitats have become a big draw, not only for customers looking for plants that attract butterflies, but for school groups on class trips learning about the life cycle of butterflies.
7 SMART TIPS FOR EXPANSION
For the team at Hagan Ace Hardware, considering a new location is a research-driven, methodical process. Any new location is seen as a prominent reflection of Hagan Ace Hardware’s reputation, according to Jacob Hagan, director of store operations.
“We’re really protective of our brand,” he says. “If we are coming into a market, we want to ensure that new store will live up to the Hagan name and be known for the best service.”
With a market study from Ace as a starting point, Hagan and his staff take a deep dive into researching any potential new store location. Here, Hagan shares seven smart tips for determining if an expansion site is right:
1. Location of competition. Hagan strives to be seven or more miles away from the nearest big-box stores. In addition to current bigbox neighbors, Hagan also closely examines real estate availability and avoids any area where a big box could build in the future.
2. In-and-out convenience. Ideally, new stores would be located within an already existing neighborhood with plenty of parking and streets designed for quick entrance and exit.
3. Busy traffic flow. To gauge the new potential customer base, Hagan and other employees have sometimes watched traffic at different times of the day in an area
where a new store is being considered. Hagan looks for areas that already have strong customer traffic, and he avoids any locations where their hardware store would be the first retailer.
4. Possible traffic changes. Hagan will research any potential change in traffic patterns, such as a bypass that may be added that could mean less traffic.
5. Demographic trends. A key factor in determining if a new location will thrive is new home builds. Hagan also looks at income and how many years residents have lived near the site of a potential new store.
6. Current customer base. “We don’t want to poach our best customers from an area that we’re already serving,” Hagan says. “We discontinued pursuing one location when we discovered the new store could take about one-third of customers from an existing location.” To gauge this metric, Hagan will examine the locations of Ace Rewards customers.
7. Proximity to other stores. While Hagan doesn’t want stores too close, he gauges proximity by how long it takes to drive between locations, rather than physical distance. For example, two of the company’s stores are less than two miles from each other, but because of the geography and roads, it takes 15 minutes to drive from one to the other.
DEALER
After responding to customer requests for more information about pollinator plants, Hagan Ace stores began a pollinator program that explains the importance of such plants and the role that butterflies play in the ecosystem. Visitors to the butterfly habitats see the life cycle of butterflies, from worms eating milkweed to the formation of the chrysalis and hatching into butterflies.
Also evolving from customer requests and a natural fit with Florida’s sunny climate, the company created Hagan Coastal Outfitters, which sells everything from kayaks and performance sports apparel to sunglasses, flip-flops, paddleboards and e-bikes.
“One customer told my dad ‘This isn’t your grandpa’s hardware store anymore.’ Hardware is our heart and soul, and we want to be the best hardware store for our community,” Jacob says. “We’re a hardware store first, but niches like Coastal Outfitters help expand our customer base. I think Coastal Outfitters has brought in a
younger generation of customers for a fun shopping experience.”
Niches are discovered because Hagan’s management team believes in not only listening to customers but also to employees. As it looked to grow Coastal Outfitters, the company wanted to add a line of premium sunglasses, but major brands didn’t want to supply Hagan Ace because they were “just a hardware store.” Employee Clay Fullerton suggested Costa Del Mar brand sunglasses.
Hagan Coastal Outfitters began in 2015 with the expansion of the sunglasses display from four square feet to eight square feet. The sunglasses sold so well, the store brought in more lines of sunglasses and complemented that section of the stores with clothing, flip-flops and sports-tech fishing clothing. The company discovered there was an untapped market for higher-end clothing, fishing and sports equipment.
The HCO Holiday Kickoff at Hagan Ace’s Glen St. Mary store this past November attracted a huge crowd.
Hagan Ace stores are a destination for grills, barbecue accessories and outdoor living products.
Brands offered at Hagan Coastal Outfitters include Crescent, Hobie® and Old Town® kayaks; Bajio, Costa®, Oakley® and Smith sunglasses; and iROCKER and BOTE® paddle boards. The company has even started carrying its own brand of apparel—including hats, shorts, shirts and board shorts— that sells as well as name brands.
“Our outdoor products really made us a destination for outdoor sport enthusiasts,” Jacob says. “This has been a fun part of our business. We’ve found that there is a lot of customer crossover between the hardware store and Hagan Coastal Outfitters. Customers come in with their honeydo lists and also browse in the sports clothing and sunglasses.”
Hagan Coastal Outfitters started operating in 2016 in the Mandarin location. When the Callahan store opens this summer, there will be Hagan Coastal Outfitters in seven of the company’s 11 locations. Within each
All Hagan Ace stores feature large garden centers with butterfly habitats and pollinator plants.
location, Hagan Coastal Outfitters takes up slightly less than 10 percent of the retail square footage.
The niches also reflect each store’s community. For example, the East Palatka store is in a farming community, so it offers hay and animal food. With lumberyards, the Glen St. Mary and Hilliard stores focus on building materials. The Mandarin store includes another store-within-store concept, Hagan Florist & Gifts.
DEALER PROFILE
Three of the Hagan Ace stores sell firearms and hunting accessories. This past year, two stores were remodeled to include firearms, which enabled the company to buy products in the category at a better price.
The stores all support north Florida businesses, selling locally made items such as barbecue sauce, clothing, honey, jams, jellies, kettle corn and pork rinds.
BACK TO BASICS PRICING
The rollercoaster ride of price changes during the past two years made Hagan Ace rethink how they manage pricing.
“We were used to doing about 300 price changes a week,” Jacob says. “Then we started having 800 to 1,200 price changes a week, easily triple the workload. Yet, our margin wasn’t changing. After doing price change after price change, our staff was worn out.”
When staff spends time making price changes, that takes away time that employees could be spending helping customers. Jacob felt there were layers upon layers of pricing strategies, yet no benefit to the bottom line.
“We went back to basics, figuring out which areas and products we can earn a little more margin and which products and categories we had to be more price sensitive with,” he says.
Jacob found that within the lawn and garden department, they were missing opportunities to increase margin. For customers in the Jacksonville area, Hagan Ace’s lawn and garden departments are a destination. The stores’ lawn and garden items and local brands didn’t need to be priced to compete with the big boxes. However, big-ticket products and power tools needed to be priced more competitively.
Re-evaluating pricing cut down on price changes. In the year before the new strategy, Hagan Ace stores made an average of about 20,000 price changes, with 18,000 going up and 2,000 going down. The new strategy was put into place during the fourth quarter of 2022. Implementation of these changes
Each store features a display of locally made products.
was complete within the first two months of 2023. Now, price changes are on track to average 2,000 per store this year, freeing up employees to offer increased service to customers.
Pricing was also re-examined for business-to-business (B2B) customers, a segment that accounts for about 10 percent of the company’s revenue. Pricing for these commercial customers originally included more than 100 categories. After evaluating the pricing structure, the number of categories was simplified to 25.
CHAMPION EMPLOYEES
Departments and niches within the stores have what Jacob calls a “champion,” an employee who possesses in-depth knowledge in a specific product line.
For example, within each location there is a B2B champion, who is responsible for cultivating that category of sales and meeting new business customers.
Product categories such as grills, STIHL® power equipment and POLYWOOD® outdoor furniture have champions who closely monitor sales volume and inventory turns.
The key to finding these champions is having communication with store
The store in Green Cove Springs includes a gift shop, Hagan Coastal Outfitters, fishing and marine, workwear and hunting/ammo.
staff and matching employee interest with product lines. Grill champions like to cook on grills and can discuss the benefits of different types of wood smoking chips. For the POLYWOOD outdoor furniture line, the champion needs to be consumer-focused and be able to help envision the kind of outdoor living space the customer wants based on photos and measurements.
“With the right employee champion in place selling POLYWOOD furniture, a purchase for a rocking chair could turn into a $17,000 backyard furniture set order,” Jacob points out.
EXPANDED USE OF INNOVATIVE TECH
The Hagan family business has a tradition of innovation. Brandies Hardware was the first in the Callahan area to sell washing machines and color televisions. Today, Hagan Ace Hardware counts on technology such as the Ace Retailer Mobile Assistant app for employee training and customer engagement. Hagan credits the app with helping employees guide customers from greeting and finding a product on the shelf to checkout.
Hagan employees use handheld devices from Zebra Technologies that can convey a wealth of time-saving
DEALER PROFILE
information, such as optimal way to unload trucks, amount of time typically required to unload a truck and determining if specific products are in stock or back ordered. Each of these functions saves footsteps for employees, which means more time to help customers.
The technology with Ace Rewards has been a boon for the company’s marketing, according to Jacob. He notes Ace’s social media platform allows for easy scheduling of social media posts on all the popular platforms.
Technology has been integral to Hagan Ace’s marketing efforts. The company has a robust social media presence with more than 9,500 Facebook followers and more than 1,200 Instagram followers. Even more impressive: These followers were not gained through paid ads; they were all organically generated through the company’s content and online interactivity.
The company’s social media content frequently celebrates longtime employees—Green Cove Springs Manager Joan Saunders has been with the company 49 years. Every Tuesday, the company’s social media posts what Lageman calls “Testimonial Tuesday,” which features a customer testimonial or 5-star review about a particular Hagan Ace employee.
In addition to crafting content that is personable and reflects well on the company, Lageman makes it a point to
STIHL power equipment is another category in which Hagan Ace is a destination.
quickly respond to online comments, questions and reviews.
“I don’t ever want us to get a message or comment that doesn’t get answered within 15 to 20 minutes,” Lageman says. “We respond to all reviews within 24 hours or less, usually within the hour. With any negative reviews, we do whatever we can to fix the issue and not lose the customer.”
The company’s social media page has at least one post a day, more for events such as the upcoming grand opening of the new store in Callahan or the Ladies Night this past February, which attracted more than 1,500 people.
“When we tell a story that shows we are a locally owned, family-owned business, customers want to support us,” Lageman says. “We focus on what it ‘feels’ like to shop at our stores and interact with our employees with real photos and real examples of the services and products we offer.” n
RETAIL TECHNOLOGY TRENDS SHAPING THE FUTURE
Robots Lead to Better Service at Busy Beaver
By Doug Donaldson
COVID-19 changed everything— and may have led to a path of better customer service for Pittsburgh-based Busy Beaver Building Centers, which has home improvement centers in Pennsylvania, Ohio and West Virginia. The pandemic sped up the company’s plans to incorporate technology into its 25 stores, according to Adam Gunnett, director of IT and marketing.
As early as 2017, Busy Beaver began evaluating and testing technologies such as robots and electronic tag systems.
“We had interest in those technologies before COVID,” Gunnett says. “And now like other retailers, we face increased wages, the inability to find reliable workers and a shrinking workforce, which has accelerated looking at technology for solutions.”
Upper: Busy Beaver’s IT and Marketing Director Adam Gunnett stands next to one of the company’s new robots.
Lower: Electronic shelf labels let employees know the correct location to stock an item.
In fall 2021, the company began a pilot robot program in its Irwin, Pa., location, then spent about six months evaluating the effectiveness of the robots and how well they integrated
into store operations. In March 2022, the Badger Technologies robots and a Pricer Electronic Shelf Label (ESL) system were installed in Busy Beaver’s flagship Delmont, Pa., location. This year, those technologies will be rolled out in the company’s Mount Pleasant, Pa., and Calcutta, Ohio, locations.
The biggest, most time-consuming chore these robots perform is scanning a store’s entire inventory. Previously, this task would take about 80 hours, spanning several days and requiring several employees to devote time away from helping customers. The robot can do this task in about two hours.
Employees would only have time to scan inventory once a week. The robot can scan and update inventory every day. With such timely information, Busy Beaver has a better grasp on inventory levels and can tell customers whether a product is in stock or back ordered.
At stores where the robots have been used, in-stock levels have increased. Each robot costs about $45,000 and return on investment with such technology can be gauged by savings in labor and paper costs, versus cost of the equipment and training time.
“This technology isn’t a six-month or 18-month return on investment,” Gunnett points out. “We’re talking about five years or more on a lot of these technologies. Part of the return, though, is the intangible of employee morale—you can’t put that on a spreadsheet. The
With an electronic shelf label system, price changes across a store can be completed in minutes instead of days.
employee reaction has been nothing but positive. With these technologies, employees can focus on the things they love, like helping customers and talking with them, not having to scan and replace tags.”
Investing in new technology can be intimidating. While Busy Beaver is among the first retail hardware companies to incorporate robots, grocery chains such as Giant Food have successfully used the Badger Technologies robot system. “Once a technology is proven in another space or retailer, we’ll look to adapt it quickly,” Gunnett says.
“It’s exciting to be closer to the cutting edge on these technologies. We aren’t in a position to develop custom software, but out-of-the-box solutions like robots
can be implemented without much heavy lifting on our side.”
Busy Beaver is also looking to utilize ESL more. “During COVID, we went from having 200 price changes per week to 2,100 price changes a week,” Gunnett says. “The process of trying to hang more than 2,000 price changes isn’t manageable.”
Because of the immense amount of time required to make manual price changes, many times price changes were not made, which meant the company lost margin dollars from outdated pricing. With ESL, the price changes in an entire store can be updated in minutes instead of days, according to Gunnett. Another benefit Gunnett cites for ESL is put-back and item picking. An employee can scan the item and the tag where the item belongs will flash. This
is particularly useful for restocking items that look similar and have similar packaging such as drill bits.
“The electronic tags really speed up the process of putting away freight, too,” Gunnett says. “It kind of gamifies the process. The ESL easily saves 40 percent of the time required to put away products.”
Along with the tags, some infrastructure such as wireless access point devices need to be installed around the store to link the tags into the inventory system. For Busy Beaver, a consideration when choosing an ESL system was battery life. The tags are powered with batteries, and some vendors offered tags with batteries that could last three to five years. But Busy Beaver Building Centers went with the Pricer system, which boasts a 14-year battery life.
“When we consider a technology, we ensure that it falls in line with our mission statement and company culture,” Gunnett says. “Ultimately, the technology has to help us better serve our customers and associates. We want technology that allows us to give legendary customer service through a hands-on approach that you don’t get at a big-box store.”
Gunnett sees the addition of robots and ESL as just the beginning stage for both Busy Beaver Home Centers and throughout the retail hardware industry. “I think we’ll see ESLs in all major retailers within the next 10 years,” he says. n
Using a robot enables Busy Beaver to scan a store’s inventory in two hours instead of 80 hours.
“Where Relationships Are Formed”
AUGUST 18-20
HERE TODAY!
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 their 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 2023 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: Wholesale 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
EXIT PLANNING
By Gary Pittsford, CFP®
WHERE TO START WITH EXIT PLANNING
If you are going to sell the company within three years, then you should start immediately on raising your gross margin, if at all possible, and holding down expenses, including payroll and rent.
After spending 30, 40 or 50 years running your family-held business, are you ready to start a new chapter? If you are feeling burned out or it’s getting harder to go to work every day, then the
Above: In 2022, Angela and Scott Westhoff (left) passed on the keys of ownership of Rose Hardware in Memphis, Mo., to Nikki and Eric Long.
EXIT PLANNING
answer is probably yes. That means it’s time for you to develop a plan to move the business to a new owner, which might be a family member, one or two key employees or someone else in your industry.
Most business owners have grown their companies over the last several decades and they are now financially strong enough to step away from the company and find something different to do.
Let’s discuss some of the common questions that hundreds of business owners have asked me over the last 50 years.
1. WHERE DO I START?
When it becomes time to put a value on your business and sell it to a new owner, the areas that you need to concentrate on are (1) your profit and loss statements, and (2) your balance sheets for the last three to five years.
The buyer needs to see an accurate balance sheet containing the correct value for inventory, accounts receivable, equipment and other assets. Work on your balance sheet and all of the assets listed to make sure each item is as close to accurate as possible.
It’s even more important to spend time working on your profit and loss statement. A buyer is going to look at your gross income and the cost of goods sold, then concentrate on your gross margin. That gross margin, along with any addbacks from the owner, provide the cash flow that is needed to not only justify a
higher market value for the company, but also the cash that is needed to pay off any bank loan.
At Castle Valuation, we currently conduct approximately 450 valuations per year. As we review all of the tax returns and financial statements for these companies, there are two important items that always stand out. Is this business owners’ gross margin higher or lower than national averages for their industry? Secondly, is the total payroll higher or lower than national averages? Sometimes there are other expenses that jump out when we prepare a valuation report, but those are two primary items that business owners struggle with.
If you are going to sell the company within three years, then you should start immediately on raising your gross margin, if at all possible, and holding down expenses, including payroll and rent. You need to be able to show excellent income and profit for your business when it is time to sell.
If the buyer is going to be your children or someone else currently working in the company, then they need the highest cash flow and profit in order to justify a bank loan to buy the company. Also, if you are selling to someone outside the family, then that buyer is basing their price to buy the company on two items: How good is the inventory and other assets being sold, and is this company profitable and making income equal to or better than national averages?
2. SHOULD I GET A BUSINESS VALUATION?
Having a business valuation prepared by a valuation firm that knows your industry is usually a good idea. This valuation report helps you better prepare for the sale, and it gives the buyer an outside, independent report to start with. Our firm, Castle Valuation, has been helping business owners like you for many years.
If you are a buyer looking for more companies to acquire in order to grow your business, then perhaps having an independent valuation firm review the financials for the company that you’re talking to would be a good idea.
A business valuation is very similar to getting an annual physical or having a real estate appraiser put a value on your home. All of the data in the report gives you important information so that you can improve the company and be better prepared for the selling or buying process.
3. WHO SHOULD I TALK TO?
Selling your business requires several legal documents. That’s why your exit planning team needs to include a good corporate attorney who has helped buy or sell many companies throughout his or her career.
Your accountants will be very integral in helping you go through the selling process and analyzing your basis in the company, any depreciation recapture, capital gains tax and other expenses. Your accountant needs to be very familiar with
your corporate tax calculations and your personal tax filings.
The third person who is very important is a qualified financial advisor who knows how to work with the attorney and accountant in order to help you build the best exit plan possible. The financial advisor whom you choose should be able to help you with business selling techniques, and with protecting your assets and your net worth in future years.
At Creative Planning, we have an army of financial advisors, attorneys and accountants to help you through the process. n
Gary Pittsford
Gary Pittsford is chief valuation officer for Castle Valuation, a division of Creative Planning. His firm, formally Castle Wealth Advisors, has worked with privately held businesses in all 50 states for 48 years. Castle Wealth Advisors merged with Creative Planning, which is a much larger wealth management firm headquartered in Kansas City, in April of 2021. All of Creative Planning and our Indianapolisbased team continues to work with closely held business owners throughout the country, helping them with business valuations, succession/exit planning programs, protecting retirement income, saving income taxes and protecting our client’s net worth. Contact Gary at gary.pittsford@creativeplanning.com.
Industry Veteran Dawson Taylor Hits CENTURY MARK
Taylor’s Do it Centers reached a milestone that required serious celebration—family patriarch Dawson Taylor’s 100th birthday, the latest achievement in his 70-year long career in the home improvement industry. He celebrated his 100th birthday with family members on April 2, 2023.
Taylor is a Naval Academy graduate and World War II veteran. In 1950, he joined a single-store hardware and building materials company that his father had started along with several partners in 1927. Fifteen years later, he split off to start a sister operation and converted a 35,000- square-foot former steel fabrication plant into one of the first home centers on the East Coast, including indoor displays of lumber and building materials, and a full assortment of hardlines.
Over the past 60 years, the business has flourished, growing into a 21-store independent hardware store chain that stretches from Richmond, Va., to northeastern North Carolina. Taylor’s Do it Centers and Pleasants Hardware are known for their innovative advertising, broad selection of products and the special connections they have built over
Upper: Dawson Taylor built a retail business that focused on connections with customers and communities.
Lower: Three generations of the Taylor family were on hand to help Dawson Taylor celebrate his 100th birthday on April 2.
multiple generations with their customers and community.
The enjoyment Taylor received from running the business and experiencing the success he achieved encouraged all his children (sons Bob, Russ and Joe, and daughter Buff, who passed away in 1997) to get involved in the business. Today, he has five members of the family’s fourth generation engaged in the stores’ operations.
Taylor has been both a business and civic entrepreneur and leader, and he has engaged in numerous activities to strengthen his community.
His sons have followed in his leadership footsteps. Bob Taylor served as
Dawson Taylor is proud of the Estwing Gold Hammer Award he received for 50 years of service to the hardware industry—he’s actually at 73 years and still counting.
company president, as well as chairman of the board of directors for Do it Best, their company’s co-op partner. He later stepped away from the family business to lead the co-op as its president and CEO. Russ Taylor serves as the company’s vice president and COO. Youngest son Joe Taylor is now the president of Taylor’s Do it Centers and Pleasants Hardware and also serves as the current chairman of the board of directors for Do it Best.
“My father has been a great mentor in every aspect of my life: my faith, my family and our business. In the business, I benefited greatly from his willingness to share responsibility with me early on for key projects,” says Bob. “Yes, I made a few mistakes, but I learned so very much from those opportunities.”
“Having a dad who’s a wonderfully loving role model has been a blessing,” says Joe. “It’s even more special that I’ve had the opportunity to enjoy growing the business alongside him for all these years.” n
Upper right: Dawson Taylor has mentored his sons Bob, Joe and Russ to carry on the family legacy with Taylor’s Do it Centers and Pleasants Hardware.
Middle right: The third and fourth generations of the Taylor family are actively involved in the business, still looking up to their father and grandfather, Dawson Taylor, for support and guidance.
Lower right: Bob Taylor was ready if his father Dawson needed helped blowing out the candles.
TRUE VALUE
TRUE VALUE CELEBRATING 75 YEARS OF HOMETOWN VALUES
By Chris Jensen
True Value Company is undertaking a year-long celebration of its 75th anniversary and the continuing legacy of hometown values and building local communities.
Founded in 1948 by John Cotter with 25 member stores, the business has continued to grow and evolve ever since. Today, True
Right two: Dealer markets used to be held at the Cotter & Company warehouse on North Clybourn Avenue.
Value serves more than 4,500 independent retail hardware stores under a globally recognized brand in over 60 countries.
“Our 75th anniversary is a significant achievement for the True Value name,”
TRUE VALUE COMPANY TIMELINE
1916 True Value’s founder, John Cotter, begins working at a neighborhood hardware store in St. Paul, Minn., at age 12.
1948 Cotter & Company is founded with 25 member stores, revolutionizing the concept of dealerowned wholesaler. First-year sales are $385,000.
1959 Company moves into a 200,000 sq. ft. warehouse and office in Chicago.
1962 Cotter & Company opens first regional DC in Cleveland.
1963 Cotter buys Hibbard, Spencer and Bartlett for $2.5 million, along with
the True Value trademark—an established brand since 1932.
1966 Cotter & Company sales exceed $100 million for the first time, making it the largest hardware distributor in the U.S.
1967 Company buys General Paint & Chemical Co. and begins to market the Tru-Test paint brand.
1971 Cotter & Company begins 22-year relationship with NFL broadcaster Pat Summerall as national spokesman for True Value radio and TV commercials, which plays major role in growing True Value
John Cotter founded Cotter & Company in 1948.
said Chris Kempa, True Value Company CEO. “We have a proud heritage of supporting the growth and success of independent retailers and doing it better than anyone else. That’s how we started, how we operate now and how we plan to innovate for another 75 years.”
To celebrate the 75th anniversary, commemorative events will highlight the brand’s pillars of hometown values and services while highlighting the innovation that company leaders believe will continue to propel True Value forward.
Left: Cotter & Company purchased rights to the True Value trademark in 1963, turning it into a national retail brand.
Right: Branneky & Sons Mercantile Co. in Bridgeton, Mo., which dates back to 1857, joined True Value in 1954.
“Over the course of this year, True Value will mark its 75th anniversary with special sales events and celebrations with our vendors, our retailers and the communities they serve,” said Kelly Megel, senior vice president of marketing. “This is a terrific time to share True Value’s rich history while
retail brand. Click here to see 1986 commercial.
1976 General Paint & Mfg. opens paint factory in Cary, Ill.
1978 Dan Cotter is elected president and COO of the company, gaining the CEO title in 1982. John Cotter becomes chairman.
1979 Cotter & Company exceeds $1 billion in sales with more than 5,000 members and acquires Warner Hardware Co. of Minneapolis.
1980 1.3 million sq. ft. factory and warehouse built in Harvard, Ill.
1983 Green Thumb lawn care product line is introduced.
1989 John Cotter dies at age 85 after building Cotter & Company
into a $2.1 billion company with 8,000+ members.
1994 Cotter establishes True Value International division to serve stores outside U.S.
1995 Company moves headquarters from 2740 North Clybourn Ave. to 8600 West Bryn Mawr Ave. in Chicago suburbs.
1997 ServiStar Coast to Coast merges with Cotter & Company to form the industry’s largest dealerowned buying group—TruServ Corp.—with $4.5 billion in sales from 10,500 members.
True Value Company Timeline continues on page 46
TRUE VALUE
redefining future engagement with our iconic brand.”
The company has launched an anniversary web page that shines a spotlight on many defining moments in True Value’s history, its mission and vision and a new 75th anniversary video. Click here to view the video.
True Value Company, headquartered in Chicago, currently operates 13 regional distribution centers, with about 2,500 associates serving more than 4,500 stores in over 60 countries. It also operates one of the largest paint
Upper left & right: The Otto family opened Handyman True Value in Florissant, Mo., in 1967.
Lower: A commemorative truck in 1998 paid tribute to the company’s first 50 years.
manufacturing facilities in the U.S. in Cary, Ill., producing paint under the EasyCare® label. n
True Value Company Timeline continued from page 45.
1999 The company posts a $131 million loss due to accounting irregularities.
2005 TruServ changes its name to True Value Company. Former Sears exec Lyle Heidemann is named president and CEO.
2013 John Hartmann is named president and CEO.
2018 ACON Investments acquires 70% stake in True Value, with $230 million going back to co-op shareholders. Current retailers retain a 30% stake in the new company.
2019 True Value constructs a new 1 million sq. ft. DC in Hanover Township, Pa.
2020 Chris Kempa is named CEO.
2021 True Value acquires Agway retail brand and portfolio of Agway privatelabel products. Click here for more.
2022 Company acquires Magic, the consumer paint business of The Yenkin-Majestic Paint Corp.
2023 True Value acquires Shur-line and Wordlock brands. Click here for more.
PRODUCT SPOTLIGHT
H1A HURRICANE TIE
• Next-generation hurricane tie achieves higher allowable uplift and F2 loads to meet building safety needs of homes in highwind regions.
• Designed for nominal 2x lumber, H1A features innovative embossments that add stiffness for improved allowable uplift and lateral loads.
• The H1A installs quickly and easily with 1-1/2” nails, eliminating the need to use two different nail sizes in the same connector and reducing both length and overall number of nails required.
TANK BOND GEL THREADLOCKERS
• Repeated vibrations and frequent usage can cause even tightly secured screws to come loose over time. DAP Tank Bond Gel Threadlockers offer the strength needed to withstand constant force and avoid the mess of drippy threadlockers thanks to a gel-like formula that won’t drip or run.
• Ideal for vertical applications, these easy-to-use threadlockers ensure screws stay securely in place with reinforced strength.
• Ideal for both single-family and multifamily wood-framed construction, the H1A provides a connection between the truss or rafter and the wall for the increased strength to help buildings resist wind and seismic forces, and is available in standard G90 galvanization or with ZMAX® coating for corrosion resistance.
• Product will fix rapidly in 10 minutes and is fully cured within 24 hours for a strong, secure bond.
• Any excess adhesive is easily wiped away with paper towel. Permanent Threadlocker is ideal for fasteners up to 1” in diameter, while Removable Threadlocker is suited for fasteners ¼” to ¾” in diameter for metal-on-metal application.
PRODUCT SPOTLIGHT
SAWTOOTH SOAP
• Duke Cannon designs soap bars to meet the high standards of hard-working men who want to get clean and smell good without using overly perfumed body washes.
• Products are cruelty-free and have never been tested on animals. Triple-milled for superior quality. Assorted fragrances.
• 10 oz. bar soap is three times the size of most soaps.
• Paraben and phthalate free. Field tested by active-duty U.S. soldiers.
Duke Cannon 855-354-4438
www.dukecannon.com
GLM20 BLAZE 65FT LASER DISTANCE MEASURE
• Features long-range measuring with extreme accuracy and measures distances up to 65 feet to within 1/8 inch. Measures in meters, feet inches or inches only
• Simple, one-button operation. Press button once to begin measuring. Small enough to fit in any pocket
• Provides default real time measurement that adjusts as you move closer and farther from target, just like a tape measure. Features a backlit display that allows measurements to be easily read, even in dark areas.
• Smart and convenient size and shape, easily portable and will rest on any flat surface. Robert Bosch Tool Corp.
TITEBOND
• When contractors want the convenience of high-performing caulk for both interior and exterior use, they turn to Titebond Pro-Grade Plus Caulk. As a siliconized acrylic formulation, Pro-Grade Plus is easy to tool, water cleanable, paintable and VOC compliant.
• The Plus demarcation comes from its ability to fill gaps up to 1” wide and its strong, weather-resistant seal on a variety of building materials, such as masonry, aluminum,
NEW POCKET KNIVES LINE
brick, concrete, plastic, drywall, plaster, metal, fiberglass and glass tile.
• Meets industry standards for both ASTM C834 Type OP Grade -18°C and ASTM C920 Type S Grade NS Class 25, allowing for 25% joint expansion and contraction.
• Pro-Grade Plus carries Titebond’s 50-year warranty. In addition to clear, available in eight colors: white, almond, brown, slate gray, cedar tan, black, antique white and dark bronze.
Franklin International 800-621-7337 www.Titebond.com
• Crescent Tools has released 3 new pocket knives.
• The Hybrid Folding Utility Knife features a first-to-market design that combines the comfort of an everyday carry (EDC) knife with the blade-changing functionality of a utility knife. A ball-bearing flipper tab makes for smooth, onehanded blade deployment.
• The Compact Folding Utility Knife is truly compact, with a length of only 3” when closed, and an EDC-style pocket clip. Both utility knives have a sturdy liner lock and feature a slide button release for quick blade change.
• The 2.5” Low Profile Frame Lock Knife features an ultra-slim design and a durable D2 steel drop point blade that is made to stay sharp even with heavy use.
Tools / Apex
GRILL AND BARBECUE TRENDS
Research from the Hearth, Patio & Barbecue Association (HPBA) finds homeowners’ passion for cooking outdoors is at an all-time high. Among the key findings of the HPBA’s 2023 State of the Barbecue Industry research:
• 80% of all homeowners and 70% of all U.S. households own at least a grill or smoker, matching the highest percentage in the study’s history, up from 64% ownership in 2019.
• 38% of all grill owners purchased a new grill since the beginning of the pandemic.
• In recent years, 12% grilled for brunch and 7% for breakfast, demonstrating that consumers expanded their grilling expertise while being at home more.
• The most popular grilling day of the year continues to be Fourth of July, when 54% of owners grilled out. Other popular grilling occasions include Labor Day (47%), Memorial Day (44%) and Father’s Day (34%).
• Fall and winter grilling continues to increase. 20% of grill owners cooked out on Thanksgiving, 30% for the Super Bowl, and 14% for New Year’s Day and Valentine’s Day.
• The top 5 reasons for grilling have remained unchanged: 57% of owners did it for the flavor, 40% for the lifestyle, 33% for entertainment,
29% for the convenience and 23% see it as a hobby.
• Backyard grills are no exception to the explosion of interest in global flavors such as Asian, Indian, Latin and African cuisine. Whether it’s fully embracing international dishes or incorporating global spices and chiles into standard fare, our palates will expand in the year ahead.
• Consumers are intrigued by autonomous sensory meridian response (ASMR) videos showcasing creators cleaning and caring for their grilling equipment.
• Grill manufacturers continue to create complementary products and accessories that ease the grilling process. Some high-end grills are being produced with pizza ovens and self-cleaning equipment.
A number of grilling and backyard trends were highlighted in the recent Hearth, Patio & Barbecue Expo in Louisville, Ky. “Technology continues to enhance and simplify the way we enjoy grilling our favorite meal or relaxing by the fireplace,” said Emily McGee, director of communications for the Hearth, Patio & Barbecue Association. “Retailers continue to find unique ways to innovate our experiences and keep us connected to our home even while we are away.” n
GRILL AND BARBECUE MERCHANDISING
Upper Left: Ace Hardware of Bethalto, Bethalto, Ill.
Middle Left: Loomis Ace Hardware in Loomis, Calif.
Lower Left: Holod’s Home & Garden, Lafayette Hill, Pa.
Upper Right: Family Hardware, Cape Coral, Fla.
Middle Right: Ben’s Contractor Center, Marlette, Mich.
Lower Right: Fort Dobbs Hardware, Statesville, N.C.
The Hardware Connection provides a pictorial look at store exteriors. Send pictures of your store to chris@thehardwareconnection.com.
Red Oak Hardware Hank, Red Oak, Iowa
Nikiski Hardware, Nikiski, Alaska
Morganfield Do it Best Home Center, Morganfield, Ky.
Travis Hardware, Cocoa, Fla.
Western Building Center, Columbia Falls, Mont.
Carthage Hardware, Carthage, Mo.
Wiener’s Home Hardware, Toronto
Ziegler’s Ace Hardware, Lake in the Hills, Ill.
Lander’s Trade, Monterey, Tenn.
IN THE NEWS
NEW STORES:
• Revell Ace Hardware opened its 8th location in Madison, Miss.
• Chris Amir acquired Mahomet Ace Hardware in Mahomet, Ill., and Hood’s Ace Hardware in Gibson City, Ill., from the Hood family.
• Bharat Bansal acquired Beyer’s True Value Hardware in Cedarburg, Wis., from Hank and Richard Beyer.
• Koopman Lumber is opening a new store in Cape Cod, Mass.
• David and Angela Majure opened Midtown Ace Hardware in Hattiesburg, Miss.
Midtown Ace Hattiesburg
• Cook County Home Center acquired Sawtooth Lumber in Grand Marais, Minn.
• Caribou Jack’s Trading Company is opening its 2nd store in Pocatello, Idaho.
• Zeskind’s Hardware & Millwork acquired Clement Hardware in Severna Park, Md.
• Jessica Greenfield is opening Miller’s Hardware in Citrus Heights, Calif.
• Eldredge Lumber and Hardware opened a new store in Sanford, Maine.
• Westlake Ace Hardware opened a store in Raleigh, N.C., and held a grand reopening for the recently remodeled Guerneville Fulton Ace Hardware in Santa Rosa, Calif., which it acquired in August 2022.
KUDOS TO:
• The Aubuchon Company is marking its 115th anniversary.
• Griffin Ace Hardware, with three stores in San Diego and Santa Ana, Calif., is marking its 70th anniversary.
• Bill and Frank Arnold are celebrating the 50th anniversary of Arnold True Value Hardware Ranch & Home in Ellensburg, Wash.
• Everyday’s True Value was recognized as Retailer of the Year by the Jamestown (N.Y.) Community Chamber of Commerce.
• Academy Hardware in Philadelphia is marking its 70th anniversary.
• Spahn & Rose Lumber Co. was named Dealer of the Year by the Iowa Lumber Association.
• Simpson Strong-Tie received the 2022 Specialties Vendor of the Year award from LBM Advantage.
• R&R Ace in St. Clair, Mo., was honored with the Distinguished Service award from the St. Clair Area Chamber of Commerce.
• Ace Hardware of Bethalto (Ill.) raised $50,660 for local CMN hospitals.
• National Nail received the Outstanding Growth Award for Western
Michigan from the Association for Corporate Growth.
PEOPLE ON THE MOVE:
• Chad Ruth has been named president and CEO of United Hardware, no longer serving in an interim role.
• Home Depot promoted Billy Bastek to executive vice president of merchandising.
• Steve Herron has been named chief operating officer of Builders FirstSource.
• Spahn & Rose Lumber Co. has hired Tom Ford as vice president of supply chain and IT.
• Do it Best hired Adam Vaughn as associate merchandise manager, Scott Becher and Troy Guthmiller as territory managers, William Tobin as outbound member services specialist, Audrey Clark as communications project manager, and promoted Adam Brown to territory manager.
IN OTHER NEWS:
• Stanley Black & Decker is closing manufacturing facilities in Cheraw, S.C., and Fort Worth, Texas, shifting production to facilities in Gallatin and Jackson, Tenn.
IN MEMORY:
• Wally Lewis, who spent 66 years working for Miner’s Ace Hard-
ware in Grover Beach, Calif., passed away March 19 at age 95. He was the first employee hired by Miner’s Ace Hardware in 1956 and retired last fall after always telling people he would keep working until he was 95. He was possibly the oldest and longest-serving employee in Ace Hardware history. Wally will still be in every Miner’s Hardware store, as they have immortalized him into a stuffed toy kids hunt for throughout the hardware store to win a Wally pop. Click here to view a video.
• Mike Martin, recently retired as senior vice president of sales for Midwest Fastener, passed away February 17 at age 78. He was a founding member of the HWA. Midwest Fastener has created an annual scholarship for NHPA’s Retail Management Certification Program in Mike’s name.
• Edward Hendrickson, retired former owner of Hendrickson’s True Value Hardware in Cambridge Springs, Pa., passed away March 17 at age 75. He served in the U.S. Navy during the Vietnam War.
• Darrell “Buddy” Bean, owner of Hatfield Lumber in Hatfield, Ark., passed away March 9 at 77.
• Phillip Cloe, former co-
Chad Ruth
Wally Lewis
Buddy Bean
Phillip Cloe
Edward Hendrickson
Mike Martin
Billy Bastek
Tom Ford
owner of Sandot Lumber Co. in Independence, Kan., passed away March 28 at 84. He was also a retail consultant for Cotter and Company for many years and was awarded the Estwing Gold Hammer Award after 53 years of service to the hardware industry.
• Jim Tanner, co-owner of Tanner Lumber Co. in Elkins, W.Va., passed away March 9 at 68. He also operated Tanner Lumber in Wilmore, Pa., and Norton, W.Va., and Herman Lumber in Portage, Pa., with his wife Helen.
• Don Walter, former owner of Walter’s Do it Best Hardware in Algoma, Wis., passed away March 31 at age 86. He served in the U.S. Army and received the Estwing Gold Hammer Award in 2019 for 50 years of service to the hardware industry.
• Larry VanCise, owner of VanCise Lumber in Centerville, Pa., passed away March 9 at 70. He previously worked for Eager Beaver Lumber, True Temper and Tanner Lumber.
• Raymond Page, former owner of Page Builders Supply in Ocean Springs, Miss., died January 29 at 85.
• Mike Durand, former owner of Coventry Lumber in Coventry, R.I., and Eagle Lumber in Warwick, R.I., passed away February 22 at age 67.
• Gerald “Jerry” Boldt, former owner of Hopps N Schnapps Do it Best Hardware in Jackson, Wis., passed away March 22 at age 87.
FOR THE FULL STORY:
• True Value Company acquires ShurLine and WordLock brands. Click here.
• Howard and Wayne Miller of Hartville Hardware receive Legacy Award. Click here.
• R.P. Lumber receives Large Business of the Year Award. Click here.
• Ace Hardware spring convention sets record. Click here.
• Do it Best introduces ecommerce strategy and new platform. Click here.
• Nation’s Best acquires two home centers. Click here.
• Do it Best provides $1 million in goods to Habitat for Humanity. Click here.
• TAL Holdings promotes two execs. Click here.
• True Value Manufacturing unveils paint plant automation. Click here.
Jerry Boldt
Jim Tanner
Don Walter
True Value Spring Show
Wayne and Howard Miller
Donna and Robert Plummer
Ace Hardware Spring Show
Do it Best Spring Show
MAY
Hardlines Distribution Alliance 2023 Group Merchandising Conference
May 8-11, Embassy Suites Atlanta, Buckhead, Ga.
International Hardware Fair Italy
May 5-6, Bergamo, Italy
Orgill Online Summer Buying Event
May 8-21
JUNE
House-Hasson Hardware Summer Dealer Market
June 16-17, Sevierville Events Center, Sevierville, Tenn.
National Lawn & Garden Show
June 13-14, Crowne Plaza Chicago O’Hare Hotel & Conference Center, Rosemont, Ill.
spoga+gafa
June 18-20, Koelnmesse, Cologne, Germany
SEPTEMBER
Ace Hardware Fall 2023 Convention
September 19-21, Orange County Convention Center, Orlando, Fla.
Blish-Mize Fall Dealer Market 2023
September 14-16, Overland Park Convention Center, Overland Park, Kan.
Bostwick-Braun North Fall Dealer Market 2023
September 20-22, Glass City Center, Toledo, Ohio
UPCOMING EVENTS
Bradley Caldwell Fall Trade Show 2023
September 13-15, Harrah’s Resort Atlantic City, Atlantic City, N.J.
China International Hardware Show 2023
September 19-21, Shanghai International Expo Centre Shanghai, Pudong, China
Do it Best Fall Market
September 8-11, Indiana Convention Center, Indianapolis
Florida Hardware Fall Dealer Market
August 25-26, Renaissance Orlando at SeaWorld, Orlando, Fla.
Horizon Distribution 2023 Expo Virtual Trade Show
September 6-8
Monroe Hardware Fall In Store
Virtual Dealer Market
September 11-29
True Value Fall Reunion
September 14-16, George R. Brown Convention Center, Houston
United Hardware Fall 2023 Buying Market
September 27-29, Mayo Civic Center, Rochester, Minn.
United Hardware Fall 2023 Buying Market (Virtual)
September 26-October 6
Wallace Hardware Fall Dealer Market
September 26-28. Sevierville Events Center, Sevierville, Tenn.
For a complete listing of calendar dates, click here.
IDAHO STORE DISCOVERS SOLID NICHE WITH FURNITURE
Jones Hardware in Buhl, Idaho, has found a niche that’s as solid as an oak table. In fact, this longtime, reliable niche is the oak table—and coffee tables, bedroom sets and sofas.
Furniture sales grew from the entrepreneurial spirit of Jones Hardware founding couple, Ken and Emma Jones. After a 20-year career in the Los Angeles Police Department, Ken wanted to shift gears to a more rural setting. The couple bought a Western Auto store in Buhl, Idaho, and converted the store to Jones Hardware in 1969, while keeping the original, almost 100-year-old wood floors and tin ceiling intact.
Throughout the decades of serving customers in Twin Falls County, the store constantly added new product lines and services including sporting goods, ammo, small engine repair, appliances and most recently, Stihl chainsaws. In 1974, Emma decided that the store should sell furniture.
In 1988s, daughters Connie McDonald and Kim Smith, who worked at Jones Hardware in their teens, took over the business. Pressed for space to display furniture and hardware, the sisters refurbished the store’s warehouse across the street and opened The Furniture Room in 2006.
Now, furniture sales account for about half the business with hardware
Upper two: Jones Hardware has developed a strong niche selling furniture.
Bottom: Connie McDonald and Kim Smith are sisters who operate Jones Hardware and The Furniture Store.
and appliances each representing 25 percent. To reduce overhead, the sisters leave the Furniture Room open and unstaffed. When customers walk into The Furniture Room, a buzzer sounds in the hardware store and one of the
sisters will walk 80 steps to greet furniture shoppers.
“We get to sell the furniture and order it, and our poor husbands have to deliver it,” Smith says. “We have customers from Boise and Nevada, hundreds of miles away because our overhead is so low, we can afford to offer low prices to draw in customers.”
On Sundays, it’s typical for the sisters to make that walk seven or eight times. And the foot traffic from the furniture store has benefited the hardware store.
“Whether it’s hardware or furniture, customers can come here and find almost anything,” McDonald says. “After some days running back and forth from the hardware store to The Furniture Room—especially in the cold, snowy Idaho winters—we’re exhausted, but it’s a good feeling to know we’re helping people.”
A REWARDING WAY TO SHOW CUSTOMER APPRECIATION
Dan Peters and Butch Calcote, coowners of Fassett Lane Lumber in Wellsville, N.Y., have prided themselves on offering personalized hometown service and treating customers like family.
For 2023, the retailers decided to put some money behind the sentiment. They plan to spend every month showing their appreciation and gratitude to the community by giving out a $100 gift certificate to one lucky customer each month of the year.
Upper: Dan Peters (left) and Butch Calcote, co-owners of Fassett Lane Lumber, focus the business on taking care of the customer.
Lower: Each month a lucky customer wins a $100 gift certificate from Fassett Lane Lumber’s Customer Appreciation Giveaway.
“Fassett Lane Lumber is very grateful for the family of customers that support our business and our community. Local businesses are the foundation of our community by creating jobs, supplying goods and services. We are proud to be part of our community and would like to show our appreciation by giving back,” Peters explained to a local newspaper. The store has used social media posts to encourage customers to stop by the store and enter the Customer Appreciation Giveaway. Monthly winners are shown on their Facebook page. n
BEHIND THE NUMBERS
48%
Percentage of consumers who said they used BOPIS or curbside pickup to save time or for convenience, according to Bizrate Insights and Digital Commerce 360. 34% ordered to pick up in store to avoid waiting for home delivery and 32% wanted the product the same day.
58%
Percentage of homeowners who remodeled their homes in 2022, according to the 2023 Houzz U.S. State of the Industry, spending a median amount of $22,000.
55%
Percentage of homeowners who planned to remodel their homes in 2023, according to the 2023 Houzz U.S. State of the Industry, with an anticipated median spend of $15,000.
18%
Percentage of B2B companies’ revenues coming from ecommerce, according to McKinsey & Company.
28%
Kitchen remodels remained the top remodeling project in 2022, along with bath models at 25%, according to the 2023 Houzz U.S. State of the Industry.
29%
Percentage of homeowners who upgraded plumbing in 2022, followed by electrical (28%) and home automation (25%), according to the Houzz report. n
