H O W R E T A I L E R S A R E C O P I N G W I T H T H E C O V I D - 1 9 PA N D E M I C
December 2020 Vol. 12, No. 8
THE INDUSTRY’S DIGITAL LEADER
Breathing NEW LIFE Into a TIRED STORE ALSO INSIDE: Turning Your Website Into a Selling Tool Are You Selling or Buying a Business?
A CUSTOMIZED APPROACH Orgill gives us the tools we need to compete and succeed! Why We Like Working With Orgill: • Innovative retail programs • Sales representatives who make our business stronger • Dealer Markets & Online Buying Events that offer an extensive look at the industry 1-800-347-2860 ext. 5373 information@orgill.com www.orgill.com
“Orgill recognizes that no two businesses are alike. They help us tailor our programs and product selection to best serve the needs of our customers.” Pete Meichtry Ganahl Lumber California
CONTENTS December 2020 ■ Vol. 12, No. 8
36
DEALER PROFILE: MILLER’S DO IT BEST HARDWARE
MERCHANDISING: HOLIDAY DISPLAY IDEAS
Editor’s Note: Chris Jensen Trend Watch: Craig Cope Digby’s Hardware Cartoon: Scott Jensen Amazing But True Hardware Stories How’s Business? Regional Reports on Business Conditions Shop Talk: Hardware Products Review Main Feature: Turning Your Website Into a Selling Tool Dealer Profile: Miller’s Do it Best Hardware Dealer Profile: Southern Home & Garden Ace Business Succession: Are You Selling or Buying a Business? How Retailers Are Coping With COVID-19 Product Spotlight Holiday Display Ideas Category Report: Lumber In the News Upcoming Events Retail Ideas Behind the Numbers The Hardware Connection app is available for iPhone, iPad, Android and Amazon. Download here.
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THE HARDWARE Connection ■ December 2020 ■ 3
LET’S GET GROWING. From powerful tools to proven expansion strategies, Do it Best is focused on partnering with memberowners to help them grow and achieve their dreams.
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FOUR STRATEGIES TO GROW YOUR BUSINESS
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ADVERTISERS’ INDEX Do it Best Corp. | www.doitbestonline.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 ECi Software Solutions | www.ecisolutions.com . . . . . . . . . . . . . . . . . . . . . . . . .9 Epicor Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . . . . . . 13 House-Hasson Hardware | www.househasson.com . . . . . . . . . . . . . . . . 18, 28 Kaba Ilco | www.ilco.us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Police Security Flashlights | www.policesecurity.com . . . . . . . . . . . . . . . . . . 17 Rescue Sterling International Inc. | www.rescue.com . . . . . . . . . . . . . . . . . . 15 Retail Automation | www.retailautomation.biz . . . . . . . . . . . . . . . . . . . . . . . 23 Robert Bosch Tool Corp. | www.boschtools.com . . . . . . . . . . . . . . . . . . . . . . 22 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 19
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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 Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609 Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
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Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624 Contributing Writers: Doug Donaldson, Gary Pittsford, John Fix III The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2020 by the publisher. No editorial may be reproduced without the prior permission of the publisher.
THE HARDWARE Connection ■ December 2020 ■ 5
EDITOR’S NOTE By Chris Jensen
A Fitting Story to End 2020
E
ven though many hardware retailers will post record sales this year, most would agree that 2020 has been a difficult, painful and exhausting year to experience. I’m sure I share the sentiment of many who just want the year to be over, with hopes that better days are ahead. Maybe someday soon we will all be able to go places without wearing a mask. There’s a story out of Spokane, Wash., that perfectly summarizes the Year of COVID. The day after Thanksgiving, a modern-day Grinch decided to steal 50 Christmas trees from River Ridge Hardware. I mean, who does something like that? Owner Larry Myers posted some surveillance photos from the store’s security cameras on Facebook, along with this statement: “We are saddened that 50 families don’t get our trees now but we hope you still come by and support our small business.” With tips from customers and help from a local Facebook group, the police were able to identify and arrest a suspect a few days later, and the trees were recovered. But that’s not the end of the story, which ended up making the national news. Myers decided to donate the trees to first responders, because
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that’s the type of generous spirit independent hardware retailers possess. Said Myers, “As part of Giving Tuesday and to send a thank you to all the police officers who were involved, I want to give 50 trees to any first responders that want a tree. Thank you for putting your life on the lines every day and helping small businesses like us when someone take advantage.” With police officers unable to accept the free trees individually, Myers pivoted and had the police department deliver a free tree to a family in need. Click here to see national NBC news video. The day before the trees were recovered, Myers did something else. He launched a donation drive to support restaurant and hospitality workers, many of whom are struggling with rent, food and other living expenses. Myers vowed to match donations up to $3,000. There are so many independent hardware retailers like Myers who have been going above and beyond this year to meet the non-hardware needs of their communities. Turn to our Retail Ideas section starting on page 65 to read about two retailers who have donated $100,000 to their communities. It’s a year where neighbors serving neighbors takes on a special meaning. ■ www.TheHardwareConnection.com
trend Watch
By Craig Cope
Watch for Signs of Deteriorating Mental Health
W
hat can be written or said about 2020 that has not already been done? We have experienced a pandemic, global economic shutdown, record hurricane season, numerous natural disasters and a contentious presidential election process. And this is just the CliffNotes® version. Did you know that there is another crisis brewing that has received little to no attention by comparison? It’s a subject we rarely talk about in public and many wrongly consider discussing it as a sign of weakness. The incoming tsunami is the impact of 2020 events on mental health. On May 13, 2020, the United Nations issued a Policy Brief: COVID-19 and the Need for Action on Mental Health. “The impact of the pandemic on people’s mental health is already extremely concerning,” said Dr. Tedros Adhanom Ghebreyesus, director-general of the World Health Organization. “Social isolation, fear of contagion, and loss of family members is compounded by the distress caused by loss of income and often employment.”
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The Centers for Disease Control and Prevention (CDC) defines mental health as: “Mental health includes our emotional, psychological and social well-being. It affects how we think, feel and act. It also helps determine how we handle stress, relate to others and make healthy choices. Mental health is important at every stage of life, from childhood and adolescence through adulthood.” There are many different conditions that are recognized as mental illness. Here are just some of the more common: anxiety, depression, eating disorders, post traumatic stress disorder (PTSD) and suicide ideation (thinking about suicide). The CDC lists suicide as the tenthleading cause of death in the United States with 48,000 people taking their own lives every year. Suicide is a major contributor to premature mortality as it ranks as the second-leading cause of death for ages 10–34 and the fourthleading cause for ages 35–54. Japan could be viewed as the canary in the coal mine for suicide and suicide awareness. Government statistics show that more people in that country died from suicide in October than from www.ThehardwareConnection.com
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trend Watch COVID in all of 2020, with women impacted the most. The conditions in 2020 lead us to look back at the last global economic crisis we faced. One study by the BJM reported that after the 2008 economic crisis, rates of suicide increased in two-thirds of the 54 countries studied. So how do you know if you or someone you know is experiencing impacts to their mental health? MentalHealth.gov lists a few early warning signs. In the U.S., 1 in 5 adults experience mental illness each year. If you, a family member or an employee are experiencing any of the early warning signs please seek professional help. There are numerous reasons why someone would not seek or delay treatment. However, the simplest one to correct is removing the public stigma associated with mental health. It’s akin to having a broken leg, but not wanting to visit a doctor and just hoping it will fix itself. Author Ken Petti sums it up best by saying, “Sometimes it takes more courage to ask for help than to act alone.” The good news is mental illness is treatable and is a call or text away. The process is confidential and may not cost any money regardless of insurance. There are numerous agencies and resources available to help. What follows are just a few:
• CDC Treatment Resources • MentalHealth.gov • Shareable Resources for Mental Health • Anxiety and Depression Association of America • Substance Abuse and Mental Health Services Administration (800)-662HELP (4357) • National Suicide Prevention Lifeline (800)-273-8255) • CDC Preventing Suicide (English and Spanish help kit) • 5 Ways to Support Employees During Pandemics, Disasters and Other Difficult times The end of the year serves as a time to reflect on the past year and create goals for next year. The most common goals center on exercising more, eating healthier or losing weight. I would like to add one more goal. Do your part in helping spread awareness and understanding of mental health issues. Hopefully with a higher understanding the stigma fades away, and more people seek the help they need. n
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Contact Info Anthony Haynesworth Kaba Ilco Corp. Retail Channel Sales Manager (c) 252-565-3521
HAPPY HOLIDAYS FROM ALL OF US Kaba Ilco Corp. • 1.800.334.1381 • www.ilco.us
HARDWARE HUMOR
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2020 Has Been a Year to Soon Forget Yet, the independent hardware channel has experienced record sales as an “essential business.”
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HARDWARE HUMOR
RUE T t u b g n i z a Am
E R A W D R HA
STORIES I
am sure many have ha d this conversation or similar with a cu stomer. Customer: “I need a 24 x 12 air filter.” Me: “Here you go,” ha nding it to him. Customer: “No, this is wrong. It says right here 12 x 24.” Dick Beal Retired retailer Merritt Island, Fla. Originally posted on H ardlines Digest
“T
hank you for calling Ace, how can I be helpful?” “How late are you open?” “We are open until 7.” “Ok, I’ll be in at 6:50. I need 20 gallons of paint!” Hangs up phone. Well, this should be fun. Peter Tevis Bandon Ace | Bandon, Ore. Originally posted on Hardlines Digest
o e had a lady wh cone bought a traffic n she from us and the e didn’t want it decided that sh d to return it, ie tr e h S . re o m any ll over it with a but she wrote a st it. Another lo st ju e h S . ie sharp ne reeked of co e h T : g in th y funn marijuana. m Nick McCallu t Hardware Coast Do it Bes . Poulsbo, Wash
W
C
ustomer: “Do you sell individual roofing shingles?” Me: “No, sir, we don’t sell roofing shingles at all.” Customer: “Oh, I guess I’ll have to wait for my neighbor to go back to work.” I certainly hope he was kidding, but he had a real sincere sound to his exasperation. I got my chuckle for the day out of it. Maybe I missed an opportunity to sell him a portable lightweight ladder. Alan Talman | Karp’s Hardware | East Northport, N.Y. Originally posted on Hardlines Digest
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COVID-19 UPDATE:
How’s
Business?
MIDWEST
Sales and customer counts in 2020? What overall impact has COVID-19 had on your business? We’ve had strong sales, better than 2019 by 20 percent or higher. I guess I attribute that to some of the stay-at-home orders in the area. As far as impact on our business, we’ve made a lot more effort to keep customers safe by cleaning surfaces, and we all wear masks. In St. Louis County, there’s a mask mandate. We haven’t had to bring on additional personnel, but we have worked longer hours. What’s selling well? Using nontraditional sources of supply? Lawn and garden saw a huge increase in the spring and summer. Bird seed has continued to be real strong. Paint has also shown a huge increase and was particularly big when the first stay-at-home orders were issued. Really, all categories have shown an increase, but lawn and garden has stood out as the biggest
Second-generation Owner Gregg Wesche has been working at Overland Hardware since 1975.
gainer over the previous year. Lawn and garden was so big that in November, we’ve already brought in product for next spring. A vendor offered some savings, and with the potential for scarcity, we took in products early. Vendor fills on orders have been poor. We’ve not so much turned to non-traditional suppliers but to suppliers that we didn’t use as often. These are suppliers that we’d order from once or twice a year, and we increased those to once a month to fill in or hit items that our major wholesaler was out of. We have used secondary suppliers to keep product on shelves. Strongest niche categories? We have a strong, in-store glass screen and window repair. The local big boxes don’t cut glass, and our turnaround time is usually 24 to 48 hours, We’re a lot faster than other hardware or window repair stores. We do thermal panes, too. We see a lot
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How’s Business?:: COVID-19 UPDATE of return customers for our window and screen repair. We set up a repair bench in back and one of our older employees comes in and does three or four hours a day with screen and window repair. How has the pandemic caused you to approach your website and e-commerce differently? We don’t do much e-commerce nor any type of shipping. Our website is not set up for that. We take phone calls and do curb service. Right now, e-commerce would be on the back burner. My partner and I are in our 60s and not sure we want to put a huge investment into something that we’re not sure how it works. What have you learned during COVID that will make your business
stronger for the future? We’ve been able to adjust on the fly with some problems that have popped up. Sometimes you get set in your ways, and the pandemic has made us think ahead and deal with changes coming at you. Gregg Wesche Overland Hardware Co. | Overland, Mo.
NORTHEAST
Sales and customer counts in 2020? What overall impact has COVID-19 had on your business? It’s been incredible. Sales are
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1-800-333-0520 ext. 212 • www.househasson.com • House-Hasson Hardware Co., Knoxville, TN 37914 • service@househasson.com
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Mitch Epstein is the owner of Anchor Ace Hardware.
up more than 30 percent over last year and customer count is up 15 to 20 percent. Business has been positive, but we’re not happy for the reason. What’s selling well? Using nontraditional sources of supply? Anything to fix the inside of the home or make it more appealing is selling well. Paint sales are up dramatically. In the spring, lawn and garden was selling very well. Grill sales have also taken off. Plungers, toilet augers and drain openers are up over 20 percent—maybe people staying home and eating more? We have used some non-traditional supply sources, especially for masks and cleaning supplies. That’s been really good, because we’ve developed some strong relationships with new vendors. Strongest niche categories? We’re known for having odd-size nuts and bolts. We’ve also gotten into grilling, selling a lot of Weber and Traeger grills. How has the pandemic caused you to approach your website and www.TheHardwareConnection.com
How’s Business?: COVID-19 UPDATE
SOUTH
This boat was given as a gift of gratitude by a customer.
e-commerce differently? Our e-commerce has been tremendous. Before, that’s something we never focused on, but the pandemic has forced us to focus on e-commerce and make it a bigger part of our business. More and more people are comfortable with e-commerce, and it’s so convenient. We went from $15,000 online sales last year to $150,000 this year. What have you learned during COVID that will make your business stronger for the future? We didn’t realize how tightly we are tied to our community. People are thankful we’re open. Even now in November, people thank us every week. We received a small boat as a gift from one of our customers who was at home during the pandemic. All hardware and paint was supplied from the store. The boat actually works and has a small electric motor. He was just so thankful for our help over the years and especially during these last few months. Mitch Epstein Anchor Ace Hardware | Denville, N.J. www.TheHardwareConnection.com
Sales and customer counts in 2020? What overall impact has COVID-19 had on your business? It’s actually been very good; we’re probably up about 10 percent. But the stress has been a big impact. Fortunately, we haven’t had to lay off anyone. We’re in a rural, bedroom community, and a lot of people who aren’t going into work now are coming into the store. What’s selling well? Using nontraditional sources of supply? We’re selling a lot of paint. People are at home doing repairs and projects, and we’re selling a lot of craft paints for furniture. Chalk paint has been selling a lot, too. We’ve been able to show that we have a bigger variety than customers may have thought. We haven’t had to find nontraditional suppliers because True Value manufactures its own paint, and they’ve been able to covert to manufacture liquid cleaners and wipes. We still have those products while other people are out of luck. We’re lucky being with True Value.
360 Hardware was established in 2005.
THE HARDWARE Connection ■ December 2020 ■ 21
360 Hardware sells a lot of baby chicks in the spring.
Strongest niche categories? We have a strong gift department and are known for our Stihl power equipment. This spring, we sold a lot of mowers, Toro and Gravely. People are buying zero-turn mowers. We also do good business in YETI® coolers and Purina feed products. How has the pandemic caused you to approach your website and e-commerce differently? We use the
True Value ship-to-store e-commerce platform. We’ve always been big on special orders and have always catered to people who couldn’t get out of their cars. I do a lot of Facebook advertising and have a big Facebook following. In February, we start selling chickens and that goes until the end of May. That’s a huge thing in the winter months. What have you learned during COVID that will make your business stronger for the future? We have found different options for products. We don’t have to carry 10 different types of a product, but five different items helps. We have looked to buy different brands as options. By thinking
about and reviewing our assortment, it has made our business stronger. Kathy Campbell 360 Hardware & Rental | Manquin, Va.
SOUTHWEST
Sales and customer counts in 2020? What overall impact has COVID-19 had on your business? Sales are great, up about 30 percent over last year. The business side has been great; the emotional side has been hard. It’s been hard on employees, and they’re tired of wearing masks. It’s exhausting to wear a mask all day. But as far as business, we’ve never seen numbers like this. What’s selling well? Using non-traditional sources of supply? Anything related to paint has been selling really well. We’ve found that people
Trudy Chuoke LeSage hosts a weekly DIY radio show called Happy Handyman, which reaches an audience of 250,000 people.
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How’s Business?:: COVID-19 UPDATE Johnnie Chuoke’s Home & Hardware dates back to 1944.
don’t want to go to Depot and Lowe’s, they want to shop local. We’ve needed to boost inventory. Other things that have sold well are tools, lawn and garden and plumbing. We also have a gift department that is doing well. For sourcing, we’ve always turned to non-traditional vendors. We go to the National Hardware Show to find sources, and our sales reps find some things, like disinfectant. But anything with the Lysol name on it, we cannot get. We’ve been able to keep other disinfectants in stock, but some things, like a toilet bowl cleaner, have been harder to stock. Strongest niche categories? Cleaning. We carry products that aren’t just Do it Best that we have found, like air fresheners, air sponges and BioZap air purifiers. How has the pandemic caused you to approach your website and e-commerce differently? Yes, we have e-commerce, and it’s driven by articles I write that appear in the Houston Chronicle. When people read about products, they come to us. We’ve noticed that we’re selling more outside the state of Texas now—Florida, New York, some in California. What have you learned during COVID that will make your business stronger for the future? Customer 24 ■ THE HARDWARE Connection ■ December 2020
service is never going to go back to the way it was. It’s going to be a deeper level. We can complain about how long we have to spend with curbside deliveries, but it’s going to be like that from now on. We have also learned people are willing to wait for products if we tell them when to expect it. Trudy Chuoke LeSage Johnnie Chuoke’s Home & Hardware San Antonio, Texas
WEST
Sales and customer counts in 2020? What overall impact has COVID-19 had on your business? We run a store in downtown Seattle, and at least one-third of our customers are commuters. Because everyone is staying home, we’re down about 12 percent in customer count. We’ve been maintaining sales with the sale-per-customer rising. Our sister store in a more rural area is up about 40 to 50 percent. As far as impact from COVID-19, business has slowed to a crawl because of lack of employees working downtown. Overall, the impact has been negative. What’s selling well? Using nontraditional sources of supply? We’ve been selling a lot of paint supplies and mason jars. We just got some jars in, but they will be gone by the end of the week. www.TheHardwareConnection.com
Recent Features From The Hardware Connection November 2020: Unleashing the Power of Digital Marketing—Discover how two retailers, Town Hardware & General Store in N.C., and Nabors Do it Best Home Center in Miss., are taking advantage of digital marketing tools to help them attract new customers and grow their businesses. Sept.-Oct. 2020: Striving Toward a More Diverse and Inclusive Industry—Gina Schaefer of A Few Cool Hardware Stores explains what diversity, equity and inclusion mean for her 13 Ace Hardware stores in the Washington, D.C. area.
July-August 2020: Dealer Profile: Developing a Unique Identity—Read the inspiring story how Tony Powers turned a parttime job at Intown Ace Hardware 35 years ago into an ownership stake in 1996. His hard work and ideas have helped turn the Decatur, Ga., store into one of Ace’s “Coolest Hardware Stores on the Planet.” July-August 2020: Down on the Farm: Farm and Ranch Segment Showing Strong Growth—The farm and ranch segment continues to enjoy strong growth. Discover how farm and ranch retailers are taking their business to new heights while meeting the unique needs of their customers. May-June 2020: Dealer Profile: A Ray of Sunshine in Challenging Times— Learn how Michael Wynn of Sunshine Ace Hardware in Florida has stepped up to take care of associates, neighbors and the whole community during this challenging period while maintaining high standards for 11 top-performing stores. April 2020: Special Report: Rising Up to Battle the COVID-19 Threat—Discover how hardware and home improvement retailers are coping with the COVID-19 pandemic and finding new ways to serve their communities.
Click here to see our archive of past issues.
How’s Business?:: COVID-19 UPDATE Painting supplies such as sandpaper have done well, too. Blowers and chainsaws have sold well this season as well. For supply sources, we’ve gone to some different brands from different vendors to fill in and stock merchandise. Strongest niche categories? Home and garden is a niche we’re known for. We sell small household plants and they have done really well. This year, we’ve sold twice as many as last year. Our largest growth area has been home repair, such as spackle and wall repair. How has the pandemic caused you to approach your website and e-commerce differently? We have online delivery within a five-mile radius and curbside pickup. Now, we’re making deliveries almost every day. We rolled
out our e-commerce site last year Ramon Cumberbatch and expanded on is the manager of Hero it. With our e-com- Ace Hardware. merce and delivery services, we’re comparable to Amazon. What have you learned during COVID that will make your business stronger for the future? Every sale matters. Every customer interaction matters. Each transaction is more valuable. More than just greeting customers, we make sure to ask what we can do for customers. We used to be happy with customers coming in and buying a $1 item. Now, we want to find more ways we can help customers. Ramon Cumberbatch Hero Ace Hardware | Seattle, Wash.
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k l a T p Sho TS R C U D O R P E HARDWAR
By Craig Cope
EVIEW
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THE HARDWARE Connection ■ December 2020 ■ 27
k l a T p o h S E PROD HARDWAR
UCTS REV
IEW
fact, 85 percent of professionals experience shocks on the job site. enables easy secure changes. The All testers utilized the product in socket drive features a ball detent to numerous applications including keep sockets locked into place. impact power tools. The products perAll of our testers were professionals dealing with electricity or job sites. formed as expected without exception. One reviewer commented that Since eSHOK-GUARD™ is UL certitheir profession can be dangerous, fied, we decided it was in no one’s but the eSHOK-GUARD™ provided a best interest to test the 1,000 volt level of comfort knowing they were protection. However, each of our testers admitted shocks are common—in protected against electrical shock.
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PRODUCT #2, #3 AND #4: MICROGOLD® ALL-PURPOSE CLEANER, MICROGOLD® MUTLI-ACTION DISINFECTANT ANTIMICROBIAL SPRAY AND WATERLESS HAND SOAP GRANITE GOLD
If you can remember a time before COVID turned everyone’s lives upside down, Granite Gold, known for their stone care products, was in the final stages of testing a cleaning spray. Initially called MonoFoil D, it is a cleaning spray that is both a disinfectant and antimicrobial in one. Unlike standard disinfectants, antimicrobials provide long-lasting effects against bacteria and viruses. The product initially shipped in late April 2020. Independent testing proved MonoFoil D successfully killed the live strain of SARS-CoV-2 virus in three minutes. The EPA later confirmed it kills the COVID-19 virus. After clinically proven to be effective, MonoFoil D was rebranded as MicroGold Multi-Action Disinfectant Antimicrobial Spray. The spray is the only multi-action solution approved to kill the SARS-CoV-2 virus in association with COVID-19 in three minutes on hard non-porous surfaces. The MicroGold brand was expanded to include an All-Purpose Cleaner to disinfect hard, non-porous surfaces. The All-Purpose Cleaner is www.TheHardwareConnection.com
EPA approved and is part of the EPA’s List N: Disinfectants. The one-step cleaner kills 99 percent of bacteria in five seconds. The last product to join the MicroGold brand is a alcohol-free waterless hand soap. We had the opportunity to try all three products. While we lack the scientific expertise to test on COVID-19 or bacteria, our testers used the products as directed and reported positive results on numerous surfaces throughout the house. The waterless hand soap received the most comments for being different than traditional hand sanitizers. The waterless soap creates a foaming action that helps remove dirt while killing germs. Since it does not contain alcohol, it will not dry the skin. As COVID-19 is spiking again across the nation, products that are proven to kill the virus are in high demand and will remain for the foreseeable future. For more information, click here.
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feature
By Chris Jensen
turning Your Website into a selling tool
T
he retail arena continues to change rapidly for hardware retailers, as new online competitors spring up while Amazon continues to grow at a rapid pace. If there is one positive thing that has arisen from the pandemic, it is the fact that more independent hardware retailers have come to realize the importance of having a strong online presence. They have used their websites to promote curbside and delivery service and to promote the growing trend toward buy online pickup in store (BOPIS). Your store’s website needs to do more than provide information about your
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Above: Majestic’s Hardware in Gardiner, N.Y., promotes e-commerce sales through Facebook posts.
business in a templated look—it needs to drive revenue. A static website—with minimal information that rarely changes—sends a message to customers that the business is not prepared to meet their needs with 21st century technology. A new generation of shoppers is starting most shopping trips on their smartphones, and in many cases that is where their shopping will take place. Having an e-commerce site that has been optimized for mobile will help your store stay in the game. www.ThehardwareConnection.com
Read on to gain insights into the importance of transforming your website into a selling tool that attracts customers.
e-CommerCe groWs in importanCe E-commerce will grow 40 percent to $839 billion in 2020, according to Digital Commerce 360, giving e-commerce a 21 percent share of total retail sales. One reason for the continuing growth of online sales is the pandemic, which shut down regular commerce and closed many businesses, although hardware stores and home centers were deemed essential businesses and continued to remain open. Several recent studies have provided data insights into the growth of e-commerce. For example, one reason for the massive growth in e-commerce is the web sale of grocery items. Although supermarkets remained open, people often choose to buy online and have merchandise delivered, rather than go out to shop. Health concerns were a major factor. According to Small Business Trends, reporting on data from Ware2Go, a distribution firm, 55 percent of Americans made a purchase at a new online store during the pandemic. The study revealed that 87 percent of all consumers shopped online and 64 percent are replacing weekly shopping trips with online orders. While much of that shopping will be for the kinds of products not sold by hardware stores and home centers, that enormous shift in buying habits makes it absolutely essential that retailers in www.ThehardwareConnection.com
Retailers such as McLendon Hardware in Washington are promoting buy online pickup in store service.
the hardlines industry have websites that encourage online sales. BOPIS, also known as Click and Collect, is already an effective sales technique for many retailers. Experts agree that it needs to be offered by every retailer to ensure long-term survival. The most successful web retailer, of course, is Amazon, with sales of more than $280 billion. For the third quarter of 2020, revenues were up 37 percent to $96.1 billion. Revenues are forecast to be $112-$121 billion in the fourth quarter. With the pandemic continuing into the fourth quarter and people doing more online buying, there appears to be no end to Amazon’s growth. A study by eMarketer reported that Amazon’s share of the total e-commerce market was 38 percent. Second place, at 5.8 percent share, was Walmart, America’s biggest retailer with $519 billion in total sales this year. Those two
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feature retailers offer many of the products sold by hardware stores and home centers, so independent retailers who don’t offer e-commerce are losing sales to these major online competitors. Home Depot was ranked number 5 with a market share of 1.9 percent, closely followed by Wayfair, an e-commerce merchant with a 1.3 percent share, putting it in ninth place. If you’re not familiar with their offering, Wayfair’s site shows a very wide range of products that are stocked by the average hardlines store. According to research conducted among consumers by The Farnsworth Group, an Indiana-based research organization, online purchases have nearly doubled their previous market share. There were two big reasons for the shift to online purchases. Consumers were worried about their health as the primary reason, but the other main reason was they couldn’t find what they wanted shopping in stores, so they went online, and probably to a non-hardware seller. One of the other factors retailers need to consider about online purchases is that young people, newly married, for example, are often the ones who engage most often in DIY projects. They also are the ones most comfortable with online ordering, another reason why it is so important for retailers to have a viable website that encourages online ordering, BOPIS and delivery services, as some retailers are beginning to do.
top retailer sites Unfortunately, too many hardlines retailers still are not using their websites to promote online ordering and BOPIS. Too many still use their sites merely to list the departments and products they sell and/or the services they offer, without stressing the ease of buying online with pickup at the store. In researching for this article, however, we were able to locate websites from a number of large and small privately owned retailers whose websites do an excellent job of promoting online purchases. Interestingly, their approaches differ widely, so visiting them should provide readers with many ideas that can be adopted to improve their own websites. Aubuchon Hardware, a family-owned chain of 104 stores operating in New England and New York, has long been ahead of the curve with e-commerce activity. They also have an enviable domain name: hardwarestore.com. Since Aubuchon Hardware has invested heavily in e-commerce for many years, they were better prepared for the tremendous surge in web traffic and BOPIS orders. “Our web revenue is up 1,500 percent for the year,” said President Will Aubuchon IV. “We’ve launched contactless curbside service, so customers can just check in online when they arrive without calling.” Aubuchon has partnered with Redpoint Global’s rgOne solution since 2018 to bring all customer data into a
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comprehensive, single customer view and utilize intelligent orchestration capabilities to deliver personalized, winning campaigns. These tools allowed Aubuchon to meet customers’ e-commerce needs and offer a more personalized BOPIS experience. Having all of its customer data integrated into a single customer experience platform served Aubuchon well during an unexpected surge in growth related to the pandemic. “Throughout the pandemic, we have been able to communicate with customers quickly and effectively about our curbside pickup service but also customize communications for their specific needs at a scale not possible before,” Aubuchon added. Lehman Hardware is a large singleunit store catering to Amish customers in Ohio. Its in-store and website inventory includes many non-electric items as well as all the normal hardlines products. Because its inventory is so unique and broad, its online business has become very substantial. It now offers weekly email marketing to a broad mailing list. Check out Lehmans.com. Busy Beaver is a Pennsylvania-based chain whose home center stores are much smaller than those of Home Depot or Lowe’s, but their inventory does include lumber and building materials, in addition to all the other basic hardware categories. Go to BusyBeaver.com. Klem’s is a store somewhat like Lehman’s in that its inventory contains many unusual products. It is located www.ThehardwareConnection.com
in Spencer, Mass. Its home page lists Shop Online as one option. Another element on its site, stressed by some other stores, is to mention its support of local charities and other organizations. Its website is klemsonline.com. “Online selling is a whole other store with almost as much work involved,” says Jessica Bettencourt, president of Klem’s. “The largest benefit is for our current customer base to see if we have something in stock. We have customers in every day that use our website for reference before they come into the store. Our website is maintained and updated weekly.” Kenneth Malone of Beaty Hardware in Cleveland, Tenn., is getting a niche established selling tools, knives and closeout items on eBay, which can be viewed here. Sullivan Hardware and Garden in Indianapolis, Indiana, is a four-store operation with a heavy emphasis on
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feature garden products and outdoor living, with a huge inventory of patio furniture. Because it sells so many large, bulky items, its website mentions delivery as well as in-store pickup. The site’s e-commerce function is run through Shopify. See Sullivanhardware.com. Jim Lehrer of Brownsboro Hardware & Paint in Louisville, Ky., is now emphasizing free curbside pickup or delivery at the top of his website. That is followed below by the online shopping options available through Do it Best along with featured deals, monthly specials and the retailer’s latest circular. Check out brownsborohardware.com.
the URL mrhardware.com, which has enabled him to establish an online business selling parts and hardware products. He has even been able to monetize his DIY videos, such as one on restringing a weed eater that has garnered more than 3.7 million views on Youtube. aDViCe from eXperts Websites need to complement your In his book “Crazy-Cheap Marketing,” marketing expert and home center retailer overall retail strategy, according to experts. “First, a retailer should think careAndy Curry suggests that retailers use fully about what it’s good at. A do-it-yourvideos on their websites. “Videos are self hardware store is differentiated by engaging, and since they take longer how it enables people to take on projects to play than it takes to see an image, people will stay on your website longer. successfully,” says Brian McGlynn, vice This helps tell Google that your website president of commerce at Coveo, which provides online personalization software is more engaging and more desirable embedded with artificial intelligence. than websites where visitors do not “Fundamentally, what Amazon has stay long. This translates into Google making your website more visible on the shown is that the customer experience internet. Use compelling videos that show is what matters above all else. When customers find what they want quickly, the great lengths you go to in order to take care of your customers,” he writes. they buy. When they find something related and useful, they buy more. And Brian Gilbert of Gilbert’s PRO Hardware in St. Clair Shores, Mich., can when made personal, it satisfies an even greater need: the need for a relevant vouch for that advice. Back in 1996 he shopping experience,” McGlynn adds. had the foresight to buy the rights to
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She adds, “We had a customer buy a plunger from ship-to-store and it made us wonder. If I need a plunger I’m not ordering online and waiting however long it takes. That’s when we realized the internet was more of a competitor than we thought. When customers buy online and come to the store, we have them walk all the way back to our customer service desk to pick up the item. That way they have to traverse our store.” Van Buskirk was quick to roll out BOPIS and curbside service when the pandemic hit, and he believes that type of service will stick around. “We’ll never go back to the exact same normal we were at before,” he says. “Moving forward you Webinar DisCussion have to have omni-channel marketing.” Two Beacon Award winners recently He adds, “The big challenge is to participated in an Epicor-sponsored keep your inventory accurate, so when webinar that discussed e-commerce: people buy things and go to your Earl Van Buskirk of Island Home Center & Lumber in Vashon Island, Wash.; and store to pick them up you have them. Everyone knows your inventory can get Leigh Ann Akard of Akard True Value off with shrinkage, but customers get Hardware in Zionsville, Ind. “When we first started with this (pan- pretty irritated when they come to pick up something that they’ve paid for on demic) we were trying to figure out curbside and how to do the pickup and the internet and you don’t have it.” Akard says, “E-commerce is not we literally were using a piece of paper. Customers would call in and it probably going to be an overnight success and is took 10 minutes a transaction, because quite a big investment. As long as you look at ways you can leverage e-comwe were trying to figure out what type merce, you can definitely justify that of dirt they wanted and there was a lot cost. You have to keep building it one of back and forth. It became an easy step at a time. While we got a nice shot decision to invest the money in what in the arm with online in this current it would cost monthly for that e-commerce feature (in our Epicor system) to situation, we can’t rest on our laurels and have to keep letting people know be turned on. It’s definitely worth it,” we’re here.” ■ Akard says. www.ThehardwareConnection.com
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DEALER PROFILE
By Chris Jensen
Stace Heston is excited about the prospects for future growth after taking over an iconic store in Spokane, Wash., that had fallen on hard times and closed for five months.
Miller’s Do it Best Hardware: Breathing NEW LIFE Into a TIRED STORE
I The reopening of Miller’s Do it Best Hardware has re-energized the community.
n early spring, the doors at Miller’s Do it Best Hardware in Spokane, Wash., were locked, the lights shut off, the register till empty. Once a staple of Spokane’s South Hill neighborhood since it opened in 1951, the store had fallen into disrepair over the years. The iconic hardware store, known for assisting its patrons with outstanding customer service and a mom-and-pop atmosphere, had seemingly shut its doors for good in March. As luck would have it, a savior lived a mile away. When Stace Heston heard
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that the previous owner was open to selling the store, he was immediately interested. He often drove by the building on East 29th Avenue and felt pulled by the opportunity. He immediately began envisioning what he could do with the business with wisdom gleaned from a lifetime spent in the hardware industry. Heston had spent 18 years as a market development manager for Ace Hardware, with responsibility for Ace stores in Washington state. He had helped open 145 new Ace stores across the country, but had left his corporate job with Ace in fall 2018 so he could buy Spokane Ace Hardware. Adding to the appeal of a move from just south of Seattle to Spokane was the fact Heston’s wife, Arlene, was from Spokane. They jumped at the opportunity to make the move, with Heston excited about the chance to execute his own personal vision instead of guiding others down the success path. “After a while, you want to do something for yourself,” he explains. “It felt like coming home.” As he was settling in with Spokane Ace, Heston began talking with a customer who was the landlord for Miller’s Hardware. He learned the owner had medical issues and the store was being run by his girlfriend. “I had driven by Miller’s and been a customer, and I didn’t think the service was very great,” he recalls. www.TheHardwareConnection.com
Upper: The 5,000-square-foot sales floor is still in the middle of a remodel. Lower: Owner Stace Heston (middle) is placing a strong emphasis on service to bring the store back to life.
With no advance notice to the community, Miller’s Hardware ended up closing in March 2020, just as the pandemic was starting to kick in. Heston and his wife negotiated the sale and took over with a promise to keep the iconic name and history intact. Their first day as the new owners was August 3, 2020. In addition to Arlene, who takes care of back-office functions for both stores, Heston’s
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DEALER PROFILE brother Jeff also works at Miller’s. The family members had to figure out how to get a closed, tired store up and running again in the middle of a pandemic. Heston embraced the challenge of bringing back the neighborhood convenience hardware store. “When you’re looking at financials, you have to determine what you would change to make a difference,” he explains. “The inventory was there, although a little light. There was some dead inventory and the merchandising was bad. Those were simple fixes by adding more inventory and remerchandising the store.” Heston is very complimentary of the work done by his Do it Best territory manager, who has helped him rejuvenate the store. They participated in Do it Best’s Merchandising Essentials program, which helped them identify which categories were missing. Old fixtures were replaced and substantial upgrades have been made to the interior and the exterior with design help from Do it Best. The paint department is 90 percent done and they have started redoing the electrical department. Things look a little different now but Heston says maintaining the customerfirst attitude and the hometown feel of Miller’s is the top priority. “When I reopened Miller’s, it was all about service. I decided I wanted to focus on giving the most personal service,” says Heston, who ended
Miller’s does a big business in rescreening and glass cutting.
up rehiring only one person from the closed store. “That employee had tried to fix the service and is thrilled to see how it’s changing for the better. When a customer comes in, they are walked through the project. That helps folks feel comfortable and want to come back.” Heston saw an opportunity to add a garden center, which the store had never had before. There used to be two entrances, so he closed one on the side that is exposed to the street, and next spring will open a 2,000-squarefoot garden center surrounded by a wrought-iron fence.
THE HARDWARE LIFE Heston literally grew up in the hardware business, as both his grandfather and father had owned and operated Ace Hardware stores. His grandfather opened the first Ace store in Redding, Calif., in 1963, which was later sold in the mid-1980s. His dad bought another store north of there that was sold around 2000. His dad came back in 2009 and bought another store, from which he retired. “I worked in my dad’s store growing up, then later spent two years
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Nails are still sold in bulk at Miller’s.
employees wear masks. Customers are glad to see we’ve reopened and that we’re looking out for their safety,” he says. Beyond the physical location, Heston had a new logo designed and plans to ramp up Miller’s social media presUpper Left: Reopening the store in middle ence and more heavily promote the of a pandemic meant the first step was to Do it Best Rewards program once the install a plexiglass shield for the checkout. remodel of the 5,000-square-foot sales Lower Left: Space has been carved out to floor is completed next spring. create a garden center for next spring. “We’re using the Do it Best program to create a website for the store and working as a district manager for Do doing more B2B like I’m doing with the it Best Corp., before going back to my dad’s store,” Heston recalls. “Then the Ace store. We’ll be adding power equipopportunity came up to work for Ace.” ment next,” he says. Paint sales have been strong, folThere is another Ace store 1.25 miles away from Miller’s, which is the reason lowed next by plumbing. Miller’s Hardware does a big business in Heston went with Do it Best instead of rescreening and glass cutting. That folAce. “I didn’t want to infringe on their lows the blueprint of growing the busiterritory,” he explains. His two stores are located four miles ness through service. For now, Heston is spending 90 perapart. “South Hill has three hardware stores and two are mine,” Heston notes. cent of his time at Miller’s, becoming acquainted with customers and ensurHis years of experience helped preing his six employees execute his vision pare him for the challenge of reopenof service. Even though they are still in ing Miller’s in the middle of a pandemic. the middle of a remodel, business is up “The first thing was to install sneeze 35-40 percent, which reassures Heston guards, then we brought in an end cap that he hasn’t lost his touch. ■ with masks, gloves and cleaners. All www.TheHardwareConnection.com
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Dealer Profile
By Chris Jensen
Southern Home & Garden Ace Hardware in Carrollton, Ga., transitioned to a full-service DIY and garden center in 2010.
Southern home & Garden ace hardware: PerfectinG the art of diverSification
S
outhern Home & Garden Ace Hardware in Carrollton, Ga., has been a family-owned and operated business since the early 1980s. Owners Ray and Linda Fulford transitioned the business from a builder supply store catering specifically to home builders to a full-service DIY and garden center in 2010. They have been serving homeowners and local businesses in the west Georgia and east Alabama communities ever since. After Ray’s retirement from the business, his daughter and son-in-law, Kristi and Ben Garrett, stepped in to repreThe staff at Southern Home & Garden Ace sent the family as part of the manageHardware is focused on delivering exceptional ment team consisting of: Frank Cuda, customer service. 40 ■ The hARDWARe Connection ■ December 2020
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general manager; Joseph Taylor and Cathy Alvis, assistant store managers; Bethany Cox, retail sales manager; Pam Cuda, business manager; and Tina Puckett, office manager. On six acres, the main building is 15,000 square feet with selling floor space of 10,500 square feet and 4,500 square feet for office and back support areas. The garden gazebo building serves as the customer service center for the garden center, and they recently added a 1,500-square-foot Southern Outdoor Power building with 3,000-square-foot support area. The sales mix is 90 percent DIY and 10 percent pro. Top-selling categories covering 75 percent of total business include lawn and garden, outdoor living, garden center (live plants), STIHL power equipment, Southern States (feed, seed, chemicals), Southern Outdoor Power (Bad Boy Mowers) and paint. The store has diversified into a number of strong niche categories including bee keeping, live chicks, (the poultry variety), disc golf, gourmet and regional foods, gifts and locally produced products. Frank Cuda came on board during the summer of 2010 to serve as general manager. “When the housing market www.ThehardwareConnection.com
Left: A recent seminar on beekeeping introduced people to the hobby. Middle: Chick days are very popular in spring. Right: The store has become a destination for those who love playing disc golf.
had come to a stop and the building supply part of the business was failing, the option was close or go forward in a different direction. Prior to my arrival I had been in retailing 40-plus years, beginning in Cincinnati with Mabley & Carew department stores and ending with Macy’s department stores in Atlanta,” he explains. Southern Home & Garden Ace Hardware prides itself on its exceptional customer service, with the number of employees varying from 20 to 24 with seasonal flex. To ensure customer service remains at a high level, they use positive service coaching examples resulting in win-win situations, and frequently remind associates that customer service is the only competitive differentiator they control.
CoPing With CoViD The business was going strong with lots of initiatives planned for 2020,
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Dealer Profile when the pandemic hit. “Had we been told in January to plan for a pandemic in March I’m not sure we would have realized the scope of what became a major change—a rebooting of the retail industry,” Cuda says. He adds, “Once confronted with the problem and being deemed essential, the challenge became how do we stay open, provide a safe environment for the associates and our customers, while maintaining a reasonable level of service? The management team identified problems, asked questions, developed a plan and moved forward quickly.” First, they reduced store hours, opening an hour later and closing an hour earlier from Monday through Friday. “This afforded us the ability to split the management and associate group into two teams, working without contact between teams,” Cuda says. Next, they rolled out all the recommended safety initiatives: plexiglass screens, six-foot distancing markers, mandatory masks for associates (politely suggested for customers), sanitizer stations, store cleaning regimen and free masks for those who forgot but want to shop. “Once this was accomplished, we felt we could continue providing service to the community as a safe and essential store,” Cuda says. As COVID-19 took hold, the order came to shelter in place. “We came to realize that Southern Home & Garden had become ‘the place.’ As a result,
A wide selection of local gourmet food is offered.
customer counts, transactions and our sales grew exponentially,” Cuda explains. “We were more than doubling our sales with half the staff on a daily basis—it was amazing. The staff all pulled together, with no turnover.” He adds, “We thanked our customers for supporting us, while our customers thanked us for being essential. The overall attitude was that we are all in this together.” The store found new ways to serve the community during the pandemic, with help from its supplier. “Ace corporate did an amazing job of reacting to the pandemic, supporting the store with timely information, safety signing, cleaning products to the best of their ability and general awareness of being in this together,” Cuda says. “We implemented curbside service, were already a part of shopping Ace online and were limited on the delivery side except for big-ticket items.” With the entire year being so hectic, they didn’t know what to expect for the holiday selling season. “Our expectations for the fourth quarter and holiday season are based on the amazing
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Left: The unique product assortment includes Helle knives from Norway and Hults Bruke axes from Sweden. Right: A special section of the store is devoted to Scout uniforms.
second quarter trends that continued and increased in the third quarter. The fourth quarter is always a challenge. Competitive exposure grows, promotional pricing becomes more intense and product availability is more difficult,” Cuda explains. He adds, “The one constant in our favor is service. Through this pandemic we have significantly grown our Ace Rewards base—picking up over 6,600 in three months to reach more than 24,000—and we experienced a surge of new customers adding to our overall customer base. They came early in the pandemic and have stayed with us, primarily because of the service and the overall positive shopping experience.” There is no doubt that the holiday selling season this year will be different, with Cuda noting that they are more focused on providing a safe shopping and working environment for their customers and associates. “We are even more thankful for them choosing to visit, shop and support the store. We have been frequently recognized by the community as being a friendly, www.ThehardwareConnection.com
helpful and interesting place to shop, always finding something new and different each visit,” he says. To keep the staff motivated during the long months of the pandemic, they took a percentage of their profits and split it out evenly among everyone as a hazardous duty bonus. “It was a way to keep everyone fully engaged. We keep everyone aware of targeted sales goals for the week and month,” Cuda points out.
Seeking ConStant imProVement When asked what makes Southern Home & Garden Ace unique in the marketplace, Cuda responds that they are focused first on customer service. “We are a friendly, helpful place to shop, we provide an environment that is hometown, we are interested in customers’ needs and problems, with new products on the horizon that they find unique, different, useful and worthy of word-of-mouth praise,” he says. Digital marketing is a new point of emphasis with their marketing strategy. “Just like the weather, our customer base and their shopping habits are constantly changing and just like the weather, it’s hard to predict which
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Dealer Profile way the wind will blow or what digital market media they will be using next,” Cuda says. With Kristi and Ben coming into the business in 2019, Kristi put forth the challenge to make a conscious effort to step up our game in the digital marketing arena, according to Cuda. “We were missing a certain customer demographic that no longer reads print media but was constantly online or on their phones as a shopping vehicle,” he says. They have hired an outside media specialist to work with the management team to help facilitate a timely and cost-effective method of posting on Facebook, Instagram, Twitter and Ace Local Lift. “Utilizing Facebook, Instagram, Twitter, Ace’s Local Lift, Google Business and mass email has allowed us to reach our regular and potential new customers,” explains Cuda. “We use our platforms to inform customers of our in-stock regular and promotional products and also educate them through interesting educational article and videos.” For their next growth initiative, they are adding a Yamaha golf car dealership to Southern Outdoor Power in January. They have also secured a trailer deal so they can offer a package to customers, Cuda notes. Also in the works is an expansion of the popular Bad Boy Mowers category to focus on the
Upper: Southern Outdoor Power sales and service center features Bad Boy Mowers and STIHL power equipment. Lower: Cutting boards are merchandised with related food and accessories.
professional lawn care and landscaper part of the business. Targeted growth of the garden center is planned to complement growth of the professional lawn care and landscaper business. “STIHL has been a huge growth business for us—up 94 percent. We’ve designated one person to have responsibility for STIHL,” Cuda points out, adding that STIHL is a nice complement to Bad Boy Mowers. “It’s also about growing the service side of the business,” he adds. In addition, Cuda says they plan to complete a merchandise reset for the main building in 2021 that will address space reallocation and customer service convenience. n
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Award-Winning Editorial That Connects with Retailers! The Hardware Connection has won 12 awards for editorial excellence in the past seven years including the following: • 2020 FOLIO Special Recognition Award for • 2020 Regional Bronze Award for Best Individual Overall Editorial Excellence. Profile from the American Society of Business • 2020 FOLIO Eddie Award for Best Single Article. Publication Editors. • 2020 FOLIO Eddie Award for Best Series of Articles. • 2017 Eddies Digital Award from FOLIO for • 2020 FOLIO Special Recognition Award for Best Standalone Digital Magazine in the Editor of the Year. B2B category.
Just One More Reason We are the Industry’s Digital Leader
BuSineSS SucceSSion
By Gary Pittsford, CFP®
Are You Selling or Buying a Business?
F
or the retail hardware industry, 2020 has been a very unusual year. The country has been shut down for several months because of the pandemic, but most of the retail hardware store owners have been working overtime. Sales are up at stores across the country. Profits are up and I’ve had lots of store owners call and ask me what they can do with the extra cash that is accumulating in their checking accounts. Many store owners across the country have a good feeling about their business and are seriously beginning to look for a buyer, because the last three to five years their company has done well and they are finally ready to transition the business to someone else. At the same time, many store owners that want to grow their organization are aggressively looking for that second, third or fourth store to add to their company. Over the last six to eight years, I have seen a lot of business owners that had one store and now they have four or five stores. There are a lot more multi-store owners across the country than there used to be, as
the hardware industry is definitely going through a consolidation phase. If you are a seller or a buyer, then what are the important points that you should be thinking about as you head down this path of selling a business or buying a business? Let’s look at both scenarios.
Are You A Seller? If you are seriously thinking about transitioning your company to a new owner and letting them run it for the next 30 years, then there are a few key items that you should be looking at for your company. First, you want to make sure that your balance sheet and profit and loss statement is accurate for the last three to four years. If you think that the inventory is not accurate or loans from stockholders or loans to stockholders are not accurate, then prepare a short memo and explain what the correct numbers should be. Whatever methods you and your accountant have been using with your financial statements and tax returns for the last 30 years, I don’t want you to make
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any drastic changes, but be prepared to explain to a potential buyer all adjustments that seem appropriate. Second, work on your profit and loss statement for 2020 and going into 2021. Try to increase your gross margins 1% or 2% each year for the next two or three years. Also, try to reduce expenses 1% or 2% each year for the next three years. By increasing gross profit income and decreasing expenses by a few dollars each month, you are drastically adding a lot of value to the business. Third, make sure your employees are well trained and that they have the right job that fits their personality and that their salary and benefits fit their position at the company and their years of service. If you are selling to your children or someone inside the family, then the techniques used for that type of sale are unique. A combination of gifting and selling can be used with family members. Selling your business to one or two employees is a little different than selling to your children. The tax rules are different for someone outside the family and the transition options are also different. If you are selling to another store owner in your industry, then the negotiations are usually more detailed, and the due diligence done by the buyer goes into more detail. For the seller there may be many sleepless nights, because not only are you selling the machine that generates income for you every year, but you are www.ThehardwareConnection.com
Consolidation is a growing trend in the industry, which means most hardware retailers are either looking to sell or looking to buy.
also limiting your future income. You also have to worry about paying a lot of taxes when you sell your business, what your retirement income is going to look like and how you will protect your net worth so that you can pass it on to your family members. These are tough decisions. A seller must by surrounded by a good corporate attorney, a knowledgeable business accountant and an excellent financial advisor that knows your industry and knows how to buy or sell businesses. You need these three individuals to help you put together a blueprint to accomplish your goals. Each line of a blueprint represents a question that must be answered, and when done so tactfully, the lines intersect to create the plan, or blueprint, specifically for your situation.
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BuSineSS PlAnning Are You A BuYer?
excellent employees. It is hard to win a football game with just a quarterback on Since our firm operates in all 50 the field. You need a whole team on the states, we see sales transactions hapfield that is well-trained and experienced pening everywhere. The number of at working together. transactions has been increasing the In your due diligence, I know that you last two or three years and I think they will continue to increase for the next five are going to look at tax returns, profit and loss statements, and balance sheets for to 10 years. I have noticed in my recent several years. Or perhaps you will review conversations with store owners that a valuation report prepared for the seller their attitudes are better, and many of summarizing all that financial data. them have made the decision to seriWhen buyers are meeting with the ously work on a succession/exit plan for sellers, I would suggest that you try to their company. listen carefully to what the seller wants. There are more buyers today than Many times, the seller may be flexible there were 20 or 30 years ago. There in how the transaction is structured. are more multiple store owners than ever before. There are also several large Paying all cash at closing is expensive for the buyer and it may not be the best companies that own a hundred stores option for the seller. or more. All these organizations are If the buyer is talking to a seller that speeding up their activity to buy the retail stores that have been run by baby has a C corporation, be creative and help the seller minimize taxes. Many boomers for the last 30 years. times, these ideas are not only good for If you are a buyer, you are probably the seller, but also good for the buyer. looking for a retail hardware store that Does the seller own the real estate has sales of $1.5 million to $4 million. and are they willing to lease it under When you do your due diligence, you are going to be looking for the company reasonable terms? If you are buying a business and that has the highest gross margin and you definitely want to buy the real excellent profitability. You may also be estate, possibly being flexible with looking for a special situation such as a store that is bigger than normal in rent- the seller will help in the negotiations. al, or lawn and garden, or a commercial/ Sometimes, if our firm is helping with these transactions, we may suggest contractor business. that the buyer and seller compromise You have probably groomed one or and perhaps the buyer would sign a two key managers that can take over 10-year lease but have the option to buy a store, but it is also important for the property after five or six years. This the company you are buying to have
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gives the seller a few years of rental income and the buyer knows that they have the property locked in to purchase at a specific date down the road. As a buyer your due diligence will take some time. You want to look at every item on the balance sheet and every entry on the profit and loss statement. As a buyer you are wanting to nail down exactly what the assets are that you are buying, and you also want to know what is the usable cash flow of this company, or what accountants call EBITDA. When you look at the tax return, the profit listed on the tax return does not show all of the usable cash flow of the company. Every business owner, whether they are buyers or sellers, has deductible items that the company pays for their benefit. All of these “add-backs” need to be looked at carefully and added in, in order to come up with a more accurate EBITDA. Once you know what the real cash flow is, then you know how to structure the sale and you also have accurate information that you can give your bank if you are going to be getting a loan for part of the purchase price. The higher the cash flow, or EBITDA, the more the buyer is willing to pay for a company. We have been telling sellers for many years to increase margins and decrease expenses. This helps create higher usable cash flow and greatly increases the value of their business. www.ThehardwareConnection.com
Over the next three to five years there is going to be a lot of sales by independent store owners in the retail hardware industry. If you are a seller, work very hard to make your financial statements look good and increase the value of your business. If you are a buyer, be looking for well-run companies that have great employees, excellent gross margins and a profitable financial history. I hope the ideas that we have discussed in this article not only help the sellers, but also the buyers as this industry continues to speed up the consolidation process. n
Gary Pittsford, CFP®, is president and CEO of Castle Wealth Advisors, LLC and is a contributing writer for The Hardware Connection. Castle specializes in helping families and closely-held business owners with valuations, succession planning, estate and income tax analysis and retirement income security. Castle’s senior partners work with clients throughout the country in making logical decisions that help them fulfill their personal and business financial goals. For more information visit www.Castle3.com, call 1-888-849-9559 or e-mail Gary directly at Gary@Castle3.com.
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covid-19
How Retailers are coping with
covid-19
R
etailers around the world, operating all kinds of stores, have never faced a situation such as the one they have been battling since early this year. Many types of retailers, deemed non-essential, have gone out of business when they had to shut down and remain so for months on end with no sales at all. Hardware stores, home centers and lumber and building material dealers have been lucky, considered essential in most areas, but they have had to cope with operating problems completely foreign to them. A recent research study, conducted by Zebra Technologies, reports on the various actions taken by a wide variety of retailers in contending with the problems brought about by COVID-19. The study was based on information obtained from 104 executives operating 98 businesses of various types. Twenty percent of the retailers were specialty hard goods retailers, which would include hardware stores and home centers. It was the largest group. Big-box mass merchants, soft goods retailers and department stores each represented
Social distancing guidelines were sometimes tricky for essential businesses to navigate.
12 percent of the study base, while supermarkets comprised 10 percent. So, how are American retailers coping? As one might expect, hygiene and safety precautions seemed to be the biggest challenge. It caused retailers to invest time and, in some cases, considerable expense to sanitize shopping carts and fixtures, install transparent barriers in front of checkout stations, etc. The frequency with which such actions had to be taken varied, but were a necessity. A number of retailers posted signs on the floor, indicating the recommended six-foot social distance space between customers. In quite a number of cases, retailers had to hire extra help to perform the sanitizing chores either during store hours or after the store closed. Nearly half of the respondents said they also had to devote a great deal of time and
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Left: Retailers like Aubuchon Hardware learned how to implement curbside pickup service on the fly. Right: Celina Lumber in Celina, Tenn., adopted stringent cleaning protocols.
money in extensive training of employees to ensure that they understood the need for extra care and the necessity of sanitation efforts. Such training also was necessary, they reported, in efforts to retain their employees, some of whom were ready to leave their jobs because of worries about being infected by COVID-19. BOPIS (Buy online, pickup in stores) continued to be used, but it was found that curbside pickup was the preferred choice of an increasing number of consumers. Actually, some retailers did not let customers come into their stores, relying solely on curbside pickup policies to generate sales. Forty-six percent of the retailers said they were managing expanded curbside pickup operations. In most cases, this required establishing new instructions for retailer websites, hiring more people to handle curbside deliveries and to set aside space so that customers could get their curbside pickups. In some cases, because of their store location, curbside pickups were more difficult to arrange. Retailers did report that some customers were wary about touching items when they were shopping, fearing that www.ThehardwareConnection.com
they might become infected. That’s why an aggressive sanitation/cleaning procedure had to be undertaken and made visible to reassure consumers that shopping with them was safe. In most cases, retailers used signs to explain to customers that sanitation procedures were being undertaken. Most retailers insisted that customers wear masks and were able to provide masks if customers did not have one. Retailers also reported that online ordering increased, in some cases dramatically. From other research, we know that online sales in some product categories represent almost half of all sales. The impact of COVID-19 on retailing means that every retailer needs to improve the online ordering process on their website. One of the more interesting findings in the survey is that some of the responding retailers said they were providing employees with mobile technology so they could check on items for consumers. Extended use of mobile devices helped increase customer satisfaction, they said. It also was a way to enable employees to suggest add-on items or
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dEALER PRoFiLE to encourage step-up sales to a better quality, higher-priced item. Retailers said they also found mobile devices in the hands of employees provided another way to train employees on store procedures and to instill product knowledge, so the investments paid off. Clever retailers urged employees to use their mobile devices to show customers videos about products, especially those in the how-to category. These devices helped both employees and customers, so the expense seemed worthwhile. Given the challenges of doing business in unconventional ways, retailers said they spent a lot more time on training, in some cases because they hired extra part-time help who needed more training. Training methods included lots of videos, in-person advice and use of mobile material, as well as conventional printed materials. Hardware and home improvement retailers have wisely invested more time and money into e-commerce initiatives, which will continue to pay off over time. They have also beefed up their delivery programs to complement their curbside service offering and introduced mobile checkout methods, which are all new ways to establish their stores as the destination for convenience even after the pandemic ends. “My word of the day is gratitude. We are so grateful to be an essential business during a pandemic,” says Leigh Ann Akard of Akard True Value Hardware in Zionsville, Ind. “We try so
Some retailers plan to continue screening employees for health symptoms even after the pandemic ends.
Like most retailers, Island Home Center installed plexiglass shields to protect cashiers and customers.
hard to meet people’s needs and sometimes there’s no way to please everyone. We’re operating as normal as possible in abnormal times.” She said it was awesome to see her team work so well in such adverse conditions this year. “It’s like being on a treadmill and every day the speed and the incline picked up,” Akard adds. “We absolutely believe our number one job is to share our hope and goodwill with the community and that together we will take care of one another and this will be the best year we have ever had,” says Jason Haley of Ace Hardware of Clarkston in Clarkston, Mich. ■
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HOT PRODUCTS
PRODUCT Spotlight FSA 135 TRIMMER • STIHL FSA 135 and FSA 135 R Trimmers offer gamechanging battery-powered trimmer performance for professionals. • With a brushless motor and the same drive and cutting components used in proven STIHL professional gas trimmers, the FSA 135 models deliver professional cutting performance comparable to STIHL gas units. • Feature zero exhaust emissions and low noise. Available in loop or bike handle design. • Part of the professional AB Battery Series, the STIHL 135 platform is packed with quality and durability. STIHL Inc. www.STIHLusa.com 800-467-8445
SCREW PLIERS
• Made from industrial-quality tool steel, these heavy-duty 8” pliers are used to remove damaged, corroded, rusted, painted over or tamperproof screws, nuts and bolts. • The powerful serrated jaws at the tip of the pliers have a radius that conform to the most common size screw heads to increase surface area contact, allowing for better grip and more torque. • The plastisol slip-on grips provide more secure and comfortable grasp of the handle. Mayhew Tools www.mayhew.com | 800-872-0037 www.TheHardwareConnection.com
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HOT PRODUCTS MOSQUITO GOCLIP® REPELLENT • The Mosquito GoClip® repels mosquitoes, biting flies and ticks. It is infused with a proprietary blend of essential oils that protect your personal space from mosquitoes with a “spatial” effect that deters them from landing on you. • Pleasant scent, DEET-free and lab-tested 90% repellent against mosquitoes. • Nothing to spray or apply to skin—just clip anywhere. • GoClip® is designed to be worn outdoors, on the go. It attaches to clothing, hats, backpacks, lanyards, strollers, even pet collars. Rescue / Sterling International Inc. www.rescue.com | 800-666-6766
NEW LOOK FOR WIPING STAIN, GEL STAIN • Old Masters is launching new labels for their Wiping Stain and Gel Stain lines. The new label designs feature updated product messaging and the addition of a color swatch for quick color recognition. • The label update combined with the launch of their Fast Dry Stain line offers a unified labeling program for their premium stains. • Wiping and Gel Stains are available in 24 popular colors. Custom colors can be achieved by intermixing to the desired color or by tinting with universal colorants, providing unlimited color options. • Wiping and Gel Stains are two of the five stain offerings from Old Masters. Old Masters www.myoldmasters.com 800-747-3436 54 ■ THE HARDWARE Connection ■ December 2020
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HOLIDAY DISPLAYS
A’s Home Center, Manasquan, N.J.
HOLIDAY DISPLAY IDEAS A’s Home Center, Manasquan, N.J.
T
he holiday selling season often determines whether a store has a good year or a great year. With so many hardware retailers experiencing strong sales during an otherwise challenging year, this year’s holiday selling season can be used to raise spirits and instill holiday cheer in your community. What follows on these pages are some creative holiday display ideas from hardware retailers around the country. ■
A’s Home Center, Manasquan, N.J. www.TheHardwareConnection.com
Bering’s Hardware, Houston, Texas
Carolina Ace Hardware, Hendersonville, N.C.
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Hartville Hardware, Hartville, Ohio
Hartville Hardware, Hartville, Ohio
James Trading Company, Roseboro, N.C. Sunshine Ace Hardware, Naples, Fla.
Mazzone Hardware and Paint, Brooklyn, N.Y. O’Hara True Value Hardware, Ottumwa, Iowa
O’Hara True Value Hardware, Ottumwa, Iowa 56 ■ THE HARDWARE Connection ■ December 2020
Parkrose Hardware, Portland, Ore. www.TheHardwareConnection.com
Logan Hardware, Washington, D.C.
The Hardware & Toy Center, Paoli, Pa.
The Hardware & Toy Center, Paoli, Pa.
Town Hardware & General Store, Black Mountain, N.C.
Sullivan Hardware & Garden, Indianapolis
The Hardware & Toy Center, Paoli, Pa. www.TheHardwareConnection.com
Sullivan Hardware & Garden, Indianapolis
Wagner’s Hardware & Gifts, Cuero, Texas
Pierre Part Store, Pierre Part, La.
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Lumber Trends
u.s. Issues new duTIes on CanadIan sofTwood Lumber The U.S. Department of Commerce recently confirmed that Canadian softwood lumber is heavily subsidized and dumped into the U.S. market by issuing a combined anti-subsidy and antidumping duty “administrative review” rate of 8.81 percent, the latest action in a dispute that dates back to 1982. “While the U.S. Lumber Coalition has demonstrated that this calculation understates true levels of subsidies and dumping, these results nonetheless reinforce that the Canadian lumber industry benefits from significant government subsidies and dumps lumber into the U.S. market at unfairly low prices,” stated Zoltan van Heyningen, executive director of the U.S. Lumber Coalition. The duty deposit rates and duties assessed on Canadian lumber imports will rise and fall between administrative reviews based upon numerous factors during a review period such as market prices and volume of imports. The Commerce Department initiated the second administrative review in March 2020, covering Canadian lumber imports in 2019. A preliminary determination for the second administrative review is expected in late January 2021. “The U.S. lumber industry will continue to push for the trade laws to be
Top: Family owned and operated since 1954, Golden State Lumber operates six lumberyards in northern California. Middle: Live edge wood display at Hartville Hardware in Hartville, Ohio. Bottom: Keim in Charm, Ohio, offers live edge slabs, wood slabs, burls, table bases and turning blanks.
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Upper: At Keim, you can find ash-split billet baseball bat blanks to make your own baseball bats. Lower: On display at Keim is a bubinga slab from Africa that is 513 years old.
Susan Yurkovich, president of the BC Lumber Trade Council, responded by stating, “While the reduction in duty rates from this first administrative review is a step in the right direction, the fact that we’re still paying duties on our lumber products sold to the U.S. market is both frustrating and disappointing. As we have consistently enforced to the fullest extent possible in the second administrative review to allow said, and as has been proven in previous rounds of litigation, the Canadian U.S. manufacturers and workers the industry is not subsidized, and this chance to prosper,” said Jason Brochu, trade action leveled by U.S. producers U.S. Lumber Coalition co-chair and cois completely without merit.” president of Pleasant River Lumber Co. In August, Canada prevailed in getSince 2016, the U.S. industry has added 7.6 billion board feet of new pro- ting the World Trade Organization duction to supply the U.S. market. “Full to recognize that U.S. duties on Canadian softwood lumber imports, and effective enforcement of the U.S. which were 20.23 percent at the time, trade laws against unfairly traded Canadian lumber imports is absolutely breached global trading rules. The 2006 Softwood Lumber agreement between critical for the continued growth of the the two countries expired in 2015. ■ U.S. industry,” concluded Brochu. Customers can choose from more than 120 domestic and exotic hardwood species at Keim, a Century Club retailer.
www.ThehardwareConnection.com
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IN THE NEWS NEW STORES:
• Hagan Ace Hardware has opened its ninth store in Yulee, Fla., which
also includes the third location of Hagan Coastal Outfitters. Leflore Ace Hardware in Greenwood, Miss., is now owned by Bill and Tina Thornburg, along with Davis and Lisa Moore. Cheryl and Brent Hurd have acquired Anderson Marine & Hardware in Gouldsboro, Maine. Donnie and Danelle Schwertner have opened The Depot in Miles, Texas. Century Club retailer Marcus Lumber is opening its second store in Storm Lake, Iowa. BMC Stock Holdings is acquiring Century Club retailer TW Perry, which operates six lumberyards serving the northern Virginia, Maryland, and D.C. markets. US LBM has acquired Century Club retailer Ridgefield Supply Company of Ridgefield, Conn. Fulcrum Building Group has acquired Ford Lumber & Millwork Company, with two pro lumberyards and a millwork operation in Alabama. Westlake Ace Hardware has acquired four additional Q.P. Ace Hardware stores in Lincoln, Neb. Lance Sizemore is opening a new Ace Hardware in New Richmond, Ohio. Harland Ace Hardware has relocated to a former Shopko building in Perry, Iowa.
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• PaulB Hardware is opening its third store in Mechanicsburg, Pa., in 2021.
•
• True Value of Cowpens
• True Value of Cowpens has opened in Cowpens, S.C. • Devin Severns opened Ace Hardware of Mentone in Mentone, Ind. • E.M. Heath’s Ace Hardware has opened its second store in Laconia, N.H. • Hatchet Hardware is opening its fifth store in Niskayuna, N.Y. • Sullivan Ace Hardware opened in Mendota, Ill. • Pleasant River Lumber has acquired Ware-Butler Building Supplies, with three locations in Maine. • Nation’s Best has acquired Connolly’s Do it Best Hardware & Rental, with five locations based in Fort Wayne, Ind.
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• Hagan Ace Hardware
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KUDOS TO: • Bering’s Hardware in Houston is celebrating its 80th anniversary. • Gus Bock’s Ace Hardware, with four stores in IN and IL, is marking its 85th anniversary. • M. Maselli & Sons in Petaluma, Calif., is marking its 60th anniversary. • Sebastopol Ace Hardware in Sebastopol, Calif., is celebrating its 55th anniversary. • Carlson True Value Hardware in Wheaton, Ill., is marking its 105th anniversary. • Tom Edwards, owner of Auer Ace Hardware in Coshocton, Ohio, was named the 2020 Coshoctonian by the Chamber of Commerce. • Century Club retailer Bliffert Lumber & Hardware and its Pink Truck donated $8,898.40 to Susan G. Komen Wisconsin to aid breast cancer research. • In addition to serving as CEO of Do it Best member Surangel & Sons Co., Surangel Whipps Jr., was recently elected president of the island nation of Palau. • K&K True Value in Annapolis, Md., has awarded $30,000 to 15 Annapolis-area schools. • Century Club retailer Morris Hardware in McConnelsville, Ohio, which marked its 175th anniversary in November, was presented an award for “outstanding contributions toward the protection www.TheHardwareConnection.com
and enhancement of local history and culture” by the Southeast Ohio History Center.
Tom Schanken is the sixthgeneration owner of Morris Hardware.
• DeRonne True Value Hardware in Eastpointe and St. Clair Shores, Mich., is marking its 80th anniversary. • K&K Hardware in Bettendorf, Iowa, is celebrating its 80th anniversary. • STIHL is proud to sponsor the 56th anniversary of the U.S. Capitol Christmas Tree program.
Bart Raser of Carr Hardware (right) presents a check to the Berkshire Humane Society.
• Carr Hardware donated $5,735.35 to the Berkshire Humane Society.
Jim Lehrer presents a check to Heather Stewart of Kentucky Harvest
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• Although Brownsboro Hardware & Paint in Louisville, Ky., was unable to hold its annual Eggfest this year, Owners Jim and Marilyn Lehrer donated $20,000 on top of $6,750 raised online, with $27,500 in donations split among two Kentucky charities.
replacing the retiring Pam Samulcek. Tony • Emery Jensen Jones Distribution has promoted Jason Hanegan to senior vice Jason Hanegan president of national sales.
PEOPLE ON THE MOVE:
WHOLESALERS IN THE NEWS:
• Mayhew Steel Products has • Distribution America and PRO named Beth Lawless national Group held their first virtual Execuaccount manager. tive Planning Conference November • Casey McGrath has 16-19. Attendees held 1,818 private, been named branch pre-scheduled appointments usdirector at Pacific ing Zoom. Distribution America STIHL. Vendors of the Year included: B&K Casey • House-Hasson Products, Stanley Black & McGrath Hardware has Decker, WM Barr, West Chester hired Paul Thorman as Gear, Gardner-Gibson, SouthPaul warehouse manager. wire, Spectrum HHI National Thorman Hardware/Kwikset and Century • PPG has Drill & Tool. PRO Group Key Supappointed Marvin pliers of the Year included: Oatey Mendoza as global head SCS, Great Neck Saw, WM Barr, of diversity, equity and Ames Cos., Honeywell, World inclusion. & Main, Spectrum HHI National • Channellock has Marvin Hardware/Kwikset and DAP promoted Marc Mendoza Products. Johnston to vice president of operations and Laura King to director of human OTHER NEWS: resources. • Momentive Performance • Do it Best Corp. has promoted Materials has sold its consumer Alison Farrington to national sealants business to Henkel Corp. retail performance manager. • Channellock Inc. is continuing its • Westlake Ace Hardware commitment to American manupromoted Tony Jones to vice facturing and jobs with the grand president of finance and controller, opening of its 34,000-square-foot 62 ■ THE HARDWARE Connection ■ December 2020
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plant expansion in Meadville, Pa. FOR THE FULL STORY: The project allows Channellock • Ace Hardware Corp. reported to address its increasing product record third quarter revenues of demand by providing additional $2.0 billion, an increase of 30.7 production capacity, distribution percent from last year. U.S. samespace and new machinery. “This store-sales were up 28.9 percent. new space enhances our ability to Click here for more. continue to focus on the changing • Duracell introduced its latest innovaneeds of our customers who are tion in child safety, a bitter coating on increasingly demanding Americanits lithium coin batteries—sizes 2032, made CHANNELLOCK® tools,” said 2025, and 2016. This breakthrough innovation in the battery category is President and COO Jon DeArment. designed to help deter accidental • The 2021 Cologne International ingestions. Click here for more. Hardware Fair in Germany has been canceled. The next edition will • House-Hasson Hardware will conduct a virtual dealer market now take place March 6-9, 2022. sales event January 27-29. Click here for more. IN MEMORY: • Do it Best Corp. announced • Ken Bartlett, founder and owner plans to continue its successful virof Stoneway Hardware in tual market format for the co-op’s Wallingford, Wash., passed away Spring 2021 event. This market will November 20 at the age of 66. He be available exclusively online from is survived by his wife Marcia, March 7–19. Click here for more. children Joel, Jenna and Kellie, • Orgill Inc. announced plans to mother Margaret, twin brother forgo its in-person 2021 Spring Keith and two grandchildren. Ken Dealer Market and proceed with started his career in the wholesale a more dynamic and flexible hardware business before starting approach to its physical shows, Stoneway Hardware in 1987. conferences and buying events. • Bob Winters, retired owner of Click here for more. Winters True Value in Martins • ECi Software Solutions Ferry, Ohio, passed away announced that Leonard Green & November 19 at the age of 84. He is Partners will acquire a majority stake survived by children Brenda, Mark, in the company from funds advised Vicki and Tracy, brother Nelson, by Apax Partners and The Carlyle seven grandchildren and eight Group. Click here for more. great-grandchildren. www.TheHardwareConnection.com
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UPCOMING EVENTS
All events subject to change due to COVID-19 developments! JANUARY
Monroe Hardware Spring Dealer Market February 13-14, Myrtle Beach Convention Ace Hardware Digital Holiday Trim Show Center, Myrtle Beach, S.C. January 25-February 1 Orgill Online Buying Event Atlanta International Gift & Home February 8-19 (pre-event planning period Furnishings Market Feb. 1-7) January 12-19, Americas Mart, Atlanta, Ga. True Value Spring V-Union Virtual Show House-Hasson Hardware Spring Dates Pending Virtual Dealer Market MARCH January 27-29 United Hardware Winter Virtual Buying Event January 11-17
FEBRUARY Emery Jensen Digital Show February 23-26 International Builders’ Show AllVirtual Event February 8-11 International Hardware Fair Cologne Cancelled Kitchen & Bath Industry Show Online February 9-12
Ace Hardware Spring Digital Show March 9-12 Blish-Mize Spring Dealer Market March 18-20, Overland Park Convention Center, Overland Park, Kan. Do it Best Spring Virtual Market March 7-19 Home Improvement eRetailer Summit March 7-9, Aloft Chicago Downtown, Chicago
MAY National Hardware Show May 11-13, Las Vegas Convention Center, Las Vegas, Nev.
LBM Advantage Virtual Annual spoga+gafa Buying Show & Shareholders Meeting May 30-June 1, Koelnmesse, Cologne, February 22-24 Germany
For a complete listing of calendar dates, click here. 64 ■ THE HARDWARE Connection ■ December 2020
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retail ideaS
maKing a differenCe in the liveS of diSadvantaged youth The newly renovated Alfond Youth & Community Center (AYCC) in Waterville, Maine, held a dedication ceremony on October 16 to honor the partners who have contributed to creating the stateof the-art public service and wellness facility. “We are thrilled to be recognizing Brent Burger and Michael Roy with Campbell’s True Value for their generous gift of $100,000 in support of the Afterschool Program,” says CEO Ken Walsh. Click here to see a video. As the largest accredited and licensed program in Maine, the newly named Burger-Roy Family Afterschool Program serves more than 200 youth daily, ages 5 to 12. Approximately 75 percent of these youth qualify for free and reduced meal programs and attend at no cost to the family. This allows caretakers to continue earning a living while receiving no-cost childcare with quality programming such as mentoring, tutoring, counseling, creative expression, physical education, team sports play, and nutrition and food preparation skills in the Teaching Kitchen. In addition, youth receive snacks and a hot, nutritious meal daily before going home, at the rate of 85,000 snacks and meals annually, and weekend meal backpacks are sent home every Friday afternoon to over 125 families weekly. Over the past 16 years, both men served on the board of directors, www.TheHardwareConnection.com
Kids in the Afterschool Program learn food preparation skills in the Teaching Kitchen.
Brent Burger and Michael Roy of Campbell’s True Value created the Outdoor Youth Gardens to teach healthy eating and sustainability.
undertook multiple leadership roles and were actively engaged in supporting the core mission of the AYCC. As Board Chair, Burger formalized the organization’s strategic plan to institutionalize plant efficiencies, self-sustaining programs and services, and increased revenues through fundraising events, thus increasing the number of youth served.
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Brent Burger (right) and Michael Roy of Campbell’s True Value in Waterville, Maine, donated $100,000 in support of the new Burger-Roy Afterschool Program at the Alfond Youth & Community Center. Photo by Michael G. Seamans, Morning Sentinel.
Most recently, Burger’s expertise as project manager over the AYCC’s $6.4 million Peter G. Alfond Pathway to Wellness expansion has been of incalculable value. Believing it is not enough to feed children in need, Burger and Roy created the Outdoor Youth Gardens to teach gardening, healthy eating and sustainability so that program youth learn how to feed themselves. This Garden to Table Program has expanded to include a year-round Growing Dome and fullservice Teaching Kitchen in which over 500 youth participants garden, harvest and cook the food they eat. “These two have been such a huge part of our growth and successes that we take great pleasure in honoring their unwavering dedication and sacrifice in service to our youth by presenting the Burger-Roy Family Afterschool Program,” Walsh said.
SChool iS in SeSSion In the late 1980s, Mark Carlson and his wife Nancy, the owners of Carson
Carson School Supplies has turned into a separate business for Carson True Value Hardware.
True Value Hardware in Wheaton, Ill., got the idea to put together school supply kits for local schools, working alongside their local PTAs. Carson School Supplies was born and now provides pre-packaged school supply kits to more than 200 schools in the western suburbs of Chicago. Check out their Online School Supply Kits Store. Carson True Value is a Century Club retailer that dates back to 1915, so they have been meeting the needs of the community for a long time. Their goal is to make school supply shopping a
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stress-free experience for the PTA or PTO coordinator, as well as parents and students. While prices are competitive, it’s Carson’s personal attention and flexible service that stands out, just like they provide with their hardware store.
Santa iS Still Coming to town With COVID-19 making traditional Santa visits difficult this year, Modern Home & Hardware in Woodsfield, Ohio, decided to ensure parents can still get their kids’ pictures with Saint Nick. They set up a photo spot in the store and invited families to come down and get their Christmas photos with Santa for free. They are also planning their first annual Christmas market, bringing in local craft, retail and food vendors along with a massive Christmas tree lighting.
every $50 customers spend at a Frattallone Ace, they will get a $10 gift certificate to a local restaurant, while supplies last. Spending $100 will get you $20 in gift cards, while spending $1,000 brings a reward of $200 in gift cards.
Creative idea for Small BuSineSS Saturday T&M Hardware and Rental, with six stores based in Ellwood City, Pa., decided to do something different this year for Small Business Saturday. In addition to Small Business Saturday deals that were running through the end of the month, Owners Tim and Mary Post wanted to give back and support other local businesses in their community by giving away gifts to express their gratitude. They gave away a different gift each day of the week, starting with a bird seed ornament on Monday and Daddy & Me socks on Tuesday and ending with Small Business Sample bags on Saturday. Customers had to make a purchase (no minimum) to receive the free gift. Click here to see the full post on Facebook. n
Showing gratitude to CuStomerS Mike Frattallone, owner of 21-store Frattallone’s Ace Hardware in the Minneapolis area, purchased $100,000 worth of gift cards from six local restaurant groups as a way to express gratitude toward his customers while supporting other local Twin Cities businesses. Frattallone’s launched its own “Restaurant Week” promotion starting November 13. For www.TheHardwareConnection.com
T&M Hardware and Rental gave away free gifts such as bird seed ornaments and Daddy & Me socks to express gratitude to the community. THe HARDWARe Connection ■ December 2020 ■ 67
e h t d n i h e B
Numbers
$1.1 billion
Amount of U.S. holiday spending this year, up between 1% and 1.5%, according to Deloitte’s annual holiday retail forecast.
39%
Percentage of Americans who say they will be spending less on gifts this year, according to Deloitte.
30%
Percentage of global retail sales during the holidays that will be made online, according to Salesforce. Deloitte is forecasting a 25-35% increase in 2020 holiday e-commerce sales.
75%
Percentage of U.S. consumers trying a new shopping behavior during the pandemic, according to McKinsey & Company. This includes 36% trying a new product brand, 25% incorporating a new private-label brand and 33% trying new retailers, stores or websites.
70%
Percentage of holiday shoppers who said, given the precautions retailers have taken for COVID-19, they have felt safe shopping in stores this holiday season, according to the National Retail Federation.
48%
Most popular reason for trying a new brand was availability (products in stock); followed by convenience (is available where I’m shopping)—34%, according to a McKinsey & Company report. 68 ■ The hARDWARe Connection ■ December 2020
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