Hardware Connection December 2022

Efficient Service, Dedicated Operators

COMMITTED TO THE LAST MILE

Our Fleet, Our Drivers

Orgill’s commitment to getting products into your store is paramount. Our modern, private fleet of 400+ trucks are all driven by Orgill employees. Not only do our drivers keep things running smoothly, but our operational model controls our expenses and we pass these savings along to our dealers.

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As a Do it Best member-owner, you can invite your customers to explore the industry’s largest selection of liquid paints, primers, and sundries.

The Color Bar™ transforms your paint department into an informative, inspirational customer experience that will keep them coming back.

Add product training and support, exclusive brands, and efficient delivery from our warehouses, and it‘s easy to see how Do it Best can establish your business as the first, best and only choice for paint.

Discover how Do it Best can help you become your community’s paint shopping destination. Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestonline.com.

www.retailautomation.biz

Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666

Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864

Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609

Senior Editor: Doug Donaldson doug@thehardwareconnection.com 646-508-7904

Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com

National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624

Contributing Writers: Gary Pittsford, John Fix III The Hardware Connection is

The Hardware Connection, Inc. 91900 Overseas

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Is Ecommerce Giving You Heartburn?

While the last three years have brought unprecedented uncertainty, the home and building supply industry has seen an explosion in ecommerce channels during the pandemic. When it comes to on online sales strategy, we know creating an ecommerce website can feel overwhelming but there are tools that can make it easier.

How important has ecommerce become for businesses like yours? The numbers don’t lie. Statista anticipates that by 2024, U.S. mobile shoppers will exceed 187 million. By the end of 2022, ecommerce will also account for 20.4% of global retail sales, up from 10% just five years ago. Leading businesses rely on ecommerce to engage customers, track trends, and make more informed business decisions.

As these trends grow, is your business prepared to meet customer expectations?

Our 2022 State of the Lumber Building Materials, and Hardlines (LBMH) Industry survey found professionals in your field valuing the following services in an ecommerce solution:

With a new online sales channel, you can free up your overworked staff members, increase profits, and retain valuable customers. Just like you, your customers seek convenience. Having an ecommerce platform that meets your customers’ expectations around convenience will ensure they stay loyal. By investing in online sales, customer-facing employees will have time back to be more efficient, creating a more balanced, effective workforce.

To make adapting an ecommerce solution for your business easier, our eCommonSense solution is an easy-to-use platform created by those in the building industry who understand your challenges. Like what you’ve read so far, check out our full industry survey report for more trend analysis to help your business

By Chris Jensen

6 Ways to Build Your Store Brand Identity

How do you get your store brand to stand out in the crowded competitive field? Your business needs to stand for something—a mission statement put into action—and you need to make sure your store lives up to that every day and with every customer. For this month’s cover story (see page 18), we share insights into fast-growing Costello’s Ace Hardware, which operates on six core company values that were formulated by founder Vinnie Costello. The challenge now for Costello’s is to be able to instill those values in new stores that are picked up through acquisition. What follows are six ways to build your store brand identity.

1. Determine perceptions—Ultimately it doesn’t matter what you think your store is good at, it only matters what your customers think. The only way to know that is to ask them. Do exit surveys and conduct focus groups to determine how your customers perceive your store’s prices, customer service, selection and shopping environment.

2. Play up local ties—Independent retailers should tout the fact that their businesses are family-run and locally owned. It is the most compelling difference between them and the big boxes. Turn to page 28 to see how

those local ties can be used to execute a succession plan.

3. Focus on service—Certain categories such as plumbing and electrical demand you provide excellent service from knowledgeable employees. See page 43 to learn how Scott Jerousek relies on parts and service to turn Farm & Home Hardware into a destination for outdoor power equipment.

4. Find creative ways to stand out— Turn to page 34 to see how independent retailers are using creative and fun special events to build a buzz in the community and keep customers coming back.

5. Offer superior assortment in select categories—Costello’s Ace Hardware strives to be famous for premium brands in five categories: paint, power tools and outdoor power equipment, barbecue, home preservation and birding.

6. Communicate a consistent message— If you determine that your store’s unmatched selection of fasteners is your competitive advantage in the market, then make sure you promote that fact in every marketing and advertising message you disseminate to customers. Play it up on your website and hammer the point home in your postings on Facebook. n

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By Craig Cope

Watch for Signs of Mental Health Crisis

When was the last time you were truly shocked? In today’s world of instant access to information, social media and countless other mediums, it’s extremely rare that I feel truly shocked. While writing this month’s “Shop Talk” column on power tool cutting blades, I searched for a word to describe when a blade stops cutting. The Google result yielded more than 1.9 billion pages of articles on the mental health condition commonly referred to as self-injury/cutting. I was left staring at my computer screen with an overwhelming sense of sadness.

For those unaware, self-injury is the act of harming your own body on purpose, such as by cutting or burning yourself. It’s usually not meant as a suicide attempt. This type of self-injury is a harmful way to cope with emotional pain, sadness, anger and stress. While I am not aware of anyone in my friend/ family circle who suffers from this condition, it reaffirmed my pledge to dedicate my December Trend Watch column to raising awareness of mental health issues and how hardware dealers can provide free resources to their staff.

In the U.S., 1 in 5 adults experiences mental illness yearly. With a U.S.

population of 332.9 million, more than 66.5 million adults experience mental illness yearly. With the average hardware store in the U.S. having 8.2 employees, the odds that your store has someone experiencing some form of mental illness are high.

According to the American Psychiatric Association, “more than half of people with mental illness don’t receive help for their disorders. Often, people avoid or delay seeking treatment due to concerns about being treated differently or fears of losing their jobs and livelihood. That’s because stigma, prejudice and discrimination against people with mental illness is still very much a problem.”

When a mental health crisis occurs within our circle, a common reaction is, “I never knew there was anything wrong or I wish they would have said something.” MentalHealth.gov lists a few early warning signs:

• Eating or sleeping too much or too little

• Pulling away from people and usual activities

• Having low or no energy

• Feeling numb or like nothing matters

• Having unexplained aches and pains

• Feeling helpless or hopeless

• Smoking, drinking, or using drugs more than usual

• Feeling unusually confused, forgetful, on edge, angry, upset, worried, or scared

• Yelling or fighting with family and friends

• Experiencing severe mood swings that cause problems in relationships

• Having persistent thoughts and memories you can’t get out of your head

• Hearing voices or believing things that are not true

• Thinking of harming yourself or others

• Inability to perform daily tasks like taking care of your kids or getting to work or school

One of the first things an employer can do for their employees is to promote awareness about the importance of mental health. Promoting awareness can decrease the stigma associated with mental health and lead to employees seeking assistance. Below are a few ideas to create a mental health awareness program in your store:

• Display mental awareness signage in your breakroom or wherever you post employee notifications.

• Display resources available to employees who may be struggling with mental health.

• Add mental health awareness as a regular topic during store meetings.

• If you provide health benefits, review the benefits associated with mental health and/or addiction.

• Reassure employees there will be no discrimination/retaliation for anyone who asks for assistance, and all conversations are strictly confidential. A newer resource available for anyone seeking help is the recent expansion

of telepsychiatry and other digital platforms. Anyone with the internet can seek help in the safety and privacy of their home, from one-on-one sessions to group chats.

Help can be found in numerous ways, including:

• Online databases like the American Psychological Association;

• Consult your insurance provider directly;

• Ask your primary care physician for recommendations.

My goal in writing this article is to raise awareness regarding mental health and implore everyone in the independent hardware channel to act. Do your part in helping spread awareness and understanding of mental health issues. Hopefully, with higher knowledge, the stigma, prejudice and discrimination will become a thing of the past. n

RESOURCES

• Center For Workplace Mental Health –Employer Resources

• Right Direction – Free Workplace Resources, Poster, and More

• CDC Treatment Resources

• MentalHealth.gov

• Anxiety & 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)

HARDWARE PRODUCTS REVIEW ShopTalk

PRODUCT #1:

NAILSLICER™ FRAMING BLADES

CRESCENT LUFKIN/APEX TOOL GROUP

In last month’s issue, we had the opportunity to review Crescent Lufkin Shockforce™ G2, the second generation of the Shockforce tape measure—click here to view. Staying within the Crescent family, we received samples of their various professional circular saw blades. As any professional contractor understands, time is money, and even the simplest of time-saving activities can significantly impact the overall bottom line. This concept is a cornerstone for the design of Crescent circular saw blades.

The blades feature High Impact™ Premium Carbide Teeth providing up to eight times the blade life. In addition to extended blade life, the Active Shield™ Protective Blade Coating delivers 70 percent more cuts per charge. The most impressive feature is the blade’s ability to cut through multiple nails without kickback or destroying the blade, earning the name NAILSLICER™. Click here to view a company demo video showing the NAILSLICER versus a competitor’s

By Craig Cope

blade. The NAILSLICER quickly cuts through more than 125 stainless steel framing nails and 43 decking screws, while the competitor’s blade was ruined after just 22 nails.

We provided the NAILSLICER Framing Blades to a group of contractors for their feedback. After a week of constant use on the jobsite, the reviews were overwhelmingly positive. One tester’s comment summarized it perfectly: “The NAILSLICER blade kept me working even when encountering embedded materials versus heading back to the truck to replace a blade.”

The Crescent line of circular saw blades comes in numerous versions to fit any application. Hardware retailers, especially those servicing the trades, should strongly consider adding the Crescent blades to their inventory mix.

PRODUCT #2: PRO SERIES OSCILLATING BLADES

ARROW FASTENER

Arrow Fastener was founded in 1929 by Morris Abrams, who started selling staples out of the trunk of his car, which led to the first patented staple gun. Fast forward nearly a century, and Arrow’s T50 is the best-selling staple gun in the world, with more than 50 million units sold. However, Arrow Fastener is much more than just a staple gun company offering manual, electric and cordless fastening tools.

The company recently introduced a premium line of 49 SKUs of oscillating blades under the Pro Series. The blades are manufactured using state-of-the-art technology, delivering sharp, durable edges at 25 percent less than competitors. The blades were independently tested against key competitors yielding the following results:

• the titanium coating lasts up to 6x longer vs. comparable titanium blades;

• the Japanese teeth cut 10% faster than other Japanese tooth blades;

• the carbide teeth make up to 3x the number of cuts.

The blades feature a universal design allowing for seamless use with other major brands of oscillating multi-tools. The Pro Series blades are designed to tackle virtually a limitless number of applications including mixed material, metal, wood/hardwood, grinding, sanding, scraping and drywall.

Our group of testers was a mix of both pros, DIYers and one craft hobbyist. The testers reported the blades performed as advertised regarding blade duration and speed of the cut. We then informed the testers of the price savings compared to comparable brands. One tester commented they “expected to pay a premium versus other brands.”

Arrow Fastener’s Pro Series blades are an excellent option for hardware stores looking for a premium product without the premium price. n

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By Chris Jensen

Has Costello’s Ace Found the Key to Long-Term Growth?

A grand reopening was held in April 2022 for the store in Colonial Beach, Va., that was formerly a True Value.

Costello’s Ace Hardware, which now operates 46 locations in five states— New York, Maryland, Virginia, New Jersey and Pennsylvania—has even more ambitious goals. The retailer has stated it seeks to reach 75 stores and $250 million in sales by 2025. Costello’s had four stores doing $8 million in 2000 when it entered a growth mode.

Six second-generation siblings are part of the leadership team of Costello’s Ace including l to r: Bobby Costello, Joey Costello, Danny Costello, Jaime Maloney, Timothy Costello and Michael Costello.

Upper two: The newest store in Purcellville, Va., features a 1,100-square-foot Milwaukee Tool store-within-a-store.

Right: The Purcellville store opened in a former Rite Aid location as Long Island-based Costello’s looks to expand its footprint in states like Virginia and Maryland.

The Hardware Connection interviewed Marketing Director Joey Costello, one of six siblings in a leadership position with the company, which was founded by their father, Vinnie Costello, in Deer Park, N.Y., in 1973. Read on to learn more about the successful strategies Costello’s Ace Hardware has followed on its fast track to growth.

With 46 stores now open in five states, what are your short-term and long-term goals for number of stores?

DEALER PROFILE

Birding and barbecue are two of the categories Costello’s looks to be dominant in with premium brands.

Every year our executive team, in August and September, they close themselves off for a couple of weeks and start doing strategic planning for the following year. Back in 2019, my brother Michael (CEO) wanted to do some longer-term planning. He came up with the five-year plan for our growth strategy from 2020 to 2025. We have a goal of reaching $250 million in revenue and 75 stores by the end of 2025. It’s pretty aggressive and it’s been our battle cry since then. At the time, we had 34 stores, so we’ve added a dozen stores since the announcement. As of today, we are ahead of the goal on the revenue side and we’ll probably add six stores next year.

Are there specific geographic areas where you’re looking to add stores?

Virginia is definitely an area we’re looking for as a growth area. Maryland still offers a lot of opportunity. We just added four stores in northern New

Jersey and one just across the border into Pennsylvania with a five-store acquisition (Smith’s Ace). We’re looking to fill in strategic areas between our New Jersey and Maryland locations. If there are opportunities to push a little bit to the west, we would consider that. We prefer to stay in more of a metropolitan area or suburbs of a major city. If we had an opportunity to buy a really successful business in California that had five great locations that were making money, I don’t think we would shy away from it.

How difficult is it to continue growing aggressively during a period of economic uncertainty?

In times of economic uncertainty, it’s the business people who remain aggressive that tend to come out of it doing well. History will tell you that if you hunker down in those down moments you might not make it out, but if you remain aggressive and

make smart decisions you can still grow. We’re all about growth. We’re definitely eyeing growth even now in a down economy.

What factors are most important when considering possible acquisitions?

Our growth is largely dictated by the opportunities that are around us. Historically, our company grew mainly through ground-up locations. That was in the earlier days of the business. But in the past five years we’ve grown by 18 locations and 14 of those have been through acquisition. The next few years, as we hopefully grow to 75 locations, acquisitions are our biggest opportunity. There are a lot of great retailers out there that have built amazing businesses but don’t have a succession plan in place. Frankly, they’re aging out of the business. We’re looking for strong companies with similar

81 percent of employees at Costello’s Ace say it is a great place to work, compared to 57 percent of employees at a typical U.S. company, according to Great Place to Work® 2021 Global Employee Engagement Study.

values as us and to try and help those owners monetize their life’s work while continuing to support their communities and people at the same high level as they did.

We look at market demographics, location, competition in the area, sales history, operating profit, store size, if there is any opportunity for improving their business model, just to name a few factors. Ace to Ace acquisitions are easier, but we’re not afraid to convert. We’ve successfully done True Value to Ace a few times now. Our first three stores in Virginia were longtime True Value dealers and we just finished converting them to Ace about a year ago.

We’re also looking at what we can take from the business. What can we learn from another retailer that’s doing something that we’re not into? Back in 2017, we acquired three stores in Maryland that had a unique business model. All three were typical Ace stores, but they also had a niche business selling hot tubs and hearth appliances in their hardware stores. At the time, those three stores were doing a million and a half in hot tubs

DEALER PROFILE

and now we’ve taken that business model and grown it to 12 locations where we have hearth or hot tubs or both.

Would you consider opening or acquiring stores that are more LBM-oriented?

Absolutely. We’re not experts in that field today, but that would go a long way toward supporting our commercial business, which is a growing part of our company and becoming more of a focus for us. In a down economy, when homeowners might not be spending money, if you have a strong commercial business that could help sustain you.

When you buy an existing company, what steps do you take to ensure Costello’s culture and method of operating are adopted quickly?

First and foremost, we’re looking for companies that operate with a similar set of values. At Costello’s Ace we value people above everything else. After the acquisition of Smith’s Ace, our goal was to communicate as openly and as directly with the new staff as possible. The night before we closed the deal we did an orientation. Our entire executive team was there. I was there. Our

This store in King George, Va., is one of three True Value stores that were remodeled and reopened in April 2022 under the Costello’s brand.

director of human resources and our director of store operations for that area were there. We did an in-person/virtual orientation. We brought in TV screens and did a zoom call and were able to speak directly to 95 percent of our new people and talk to them all about Costello’s culture and core values.

Costello’s has six core values, which are: solving, serving, communicating, growing, winning and collaborating. So, each of the six executives spoke about one of the core values. We had our HR director address them on HR issues such as how am I getting paid or what’s happening with my benefits. It’s important to be very transparent and set expectations right upfront, because we don’t want anybody being insecure about when their next paycheck is coming. Then we opened it up to questions and it went off very well. We connected with the staff pretty quickly and we’re not having any issues with turnover. The culture has been a good fit.

How have you been able to navigate the trend of rising wages while growing your store count?

The rising wages on Long Island has been a major factor. New York adopted the $15 an hour minimum wage pretty early on. Every year that wage was going up a dollar an hour. It was really costing us quite a bit of money on the bottom line. We’ve been able to continue to grow store count and overall sales and profitability mainly by opening stores in areas that have a lower expense base. In Maryland and Virginia, the occupancy costs are quite a bit less than they are in Long Island. By adding more stores in Maryland, New Jersey and Virginia it’s taking our overall company occupancy costs

down, so we’re able to absorb the rising cost of payroll. We still look at wages as a manageable expense and try to control it as best we can. Obviously, you have to have enough staff in stores to help customers, but we try to manage the number while still being fair to our people.

From a merchandising standpoint, what are the most important considerations when opening a new store or evaluating the viability of a potential acquisition?

We align a lot with Ace corporate. We believe in premium brands and feel we have the best and most sought-after brands in our stores like Benjamin Moore paint, Milwaukee tools, Weber, Traeger, Big Green Egg, Yeti, STIHL, just to name a few. In our hearth department we carry Harmon and in spas we have Bullfrog spas, which we believe are the best brands in those industries. So where else but Costello’s Ace can you get all these premium brands under one roof?

When it comes to merchandising a new store we largely follow the Ace blueprint of being famous for four: paint, power tools and outdoor power equipment, barbecue and home preservation. At Costello’s we take that a little bit further. We like to say we’re famous for five and we add birding, plus patio, seasonal, hearth, hot tubs—those are all very important to us.

DEALER PROFILE

Our most recent store we built in Purcellville, Va., is one of our nicest stores to date. We did some unique things there. It’s only 13,000 square feet but we’ve got a huge backyard barbecue department, a best-in-class birding section and a 1,100-squarefoot Milwaukee store-within-a-store concept. There are probably more Milwaukee tools in that store than any other store in the East Coast. We plan to bring that concept to one or two other stores in 2023.

What is the average square footage of your stores and what is the minimum size you would consider operating?

Our original store is about 2,400 square feet and our largest store is about 35,000 square feet. The ideal size depends on the market, but in a strong market we look for at least 15,000 square feet. Our average right now is probably 13,000 to 14,000 square feet.

How are you planning to commemorate Costello’s 50th anniversary in 2023?

That’s still taking shape but we’re largely looking to pay homage to the past as we paint a picture of the future of Costello’s Ace for the next 50 years. We’ll have a constant flow of communication across all our social media pages that will lead up

Costello’s held a ribbon-cutting ceremony for its new store in Purcellville, Va., on November 4, 2022. The store’s managing partner, Lawrence Harris, is in the middle.

to a major promotional event like a week-long event. The plan is to get our people hyped up about the milestone, because the average Costello’s employee today probably doesn’t know anything about it. We have created a custom logo to commemorate our 50th year and all of our print marketing and social media marketing will adopt that logo. It’s very important to my older brother, Michael, our CEO, that we get it right and do something that’s going to be meaningful and help connect Costello’s Ace with our communities.

How many family members are currently involved in the business?

My father, who started the business, passed away six years ago. Today, there are six siblings all in the business: myself, my brother Michael, who’s our CEO; sister Jaime, who is president; brother Danny, senior director of inventory and IT; brother Bobby,

who’s a director of operations; and brother Timmy, who’s a contractor who builds projects in the stores. Right now, he’s building a giant shed that will be the entry point for one of our garden centers. There’s quite a big generation behind us.

My parents have 35 grandchildren. My kids are the youngest—my oldest is nine so she’s not in the business yet, but I told her I expect her to take over the business one day. About a half dozen from the third generation are actively working in the business but none at a leadership level. We all work pretty well together. As we grow, one of our challenges is not having owners in every one of our stores. I’m an owner of this business, but I have several people that I report to that aren’t owners and I honestly have no issues with that. We’ve got a lot of talented people on our executive team and they are great for the business.

Left: A new Costello’s store opened in Staten Island, N.Y., in 2018.

Right: Founder Vinnie Costello has been immortalized with a caricature that is featured prominently in marketing, promotions and Costello’s cash.

Are there any other major initiatives Costello’s Ace is planning to tackle in 2023?

We have a couple of major initiatives in the works. Our chief operating officer, Rocky Vitale, will be announcing to our stores that we will have a new operating structure. All our stores will be divided into four territories. Each territory will be approximately 10 stores and will have a multi-store trainer and a multi-store director overseeing the operations of those stores. Those multi-store trainers and multi-store directors will report up to one of two senior directors, who will each have a seat on Costello’s executive team and they will report directly to Rocky Vitale.

DEALER PROFILE

Our company abolished the district manager role about four years ago. At that time, we elevated all of our managers to a position we call managing partner. We gave them a greater profit-sharing stake in their individual businesses. We wanted people in the most important role in each store leading as if they were an owner with an owner’s mindset, getting more involved in their communities and really leading their buildings and taking responsibility for the overall profitability and sales of the business. We’re looking to better support those managing partner positions. While we have made gains in reconnecting with the community and having managers take on the owner’s responsibility, we are seeing some slip in what people call the basics of retail. We feel like this structure will really support every department in the company whether it be marketing, store operations, merchandising or human resources to make sure every store is operating at a high level. You can’t help a customer if you don’t have products on the shelves.

Aisle accountability is another big initiative for us. It goes along with that operating structure. We’re going to roll out a plan to have ownership over every single product in the store. Every product will have its home, have its place and have its owner. If I owned an aisle, I would

acquired Suburban Ace Hardware in Cockeysville, Md., in 2020.

be responsible to ensure that there were no outs and everything is in its place and everything is marked with the correct price, all the overstock is pulled and that aisle is ready for business on any given day. That’s going to be a three- or four-month project to roll out and when that’s done we’ll hit spring firing on all cylinders.

We’re looking at three to five full store remodels next year and maybe as many as 10 mini-remodels or a refresh with completely new barbecue, cleaning and lawn and garden departments. We’re looking to change our power tool accessories in all stores and going with a full Milwaukee accessories program. We’ve done that in a couple stores already and the sales and profitability have proven that this is something we need to do. It will help us grow our pro business and support higher sales in that category.

Costello’s

What were the most important retail lessons you and your siblings learned from your father Vinnie?

We wouldn’t be here today without my father’s vision and his strong will. He was a fearless guy when it came to business. He remains our company’s driving force to this day. Our core values—those were his values. He never wrote them down. My father wasn’t the kind of a guy who would step up in front of the entire company and speak to them about a vision for the future—that was not his style. He led by example and he taught us a lot of lessons. My brother Michael took over as CEO when Vinnie retired shortly before he passed away from cancer. Every time my brother gets to speak to anyone about Costello’s or to speak to a Costello’s associate he talks to them about Vinnie, about the lessons he learned from him, about Vinnie’s passion for the business and especially for his customers and solving their problems. That’s where the culture of our company started, how Vinnie was

able to be successful. Largely what he was teaching us was to empower ourselves and our associates with the ability to solve customers’ problems and to greet them as though they were part of the family, to make sure we were treating everyone like they deserved to be treated. There was very little he wouldn’t have done for his customers or for the community he felt fortunate to serve.

My father had 10 children—six of them are in the business. If you were to ask each of the six of us who have been in the business for the majority of our lives, you’d probably get six different answers. For me, the biggest lesson was my father’s total devotion to solving his customers’ problems. He had a passion for learning as much as he could about what the issue was, so when a customer came to him and said can you replace this faucet stem, he wouldn’t just give them a faucet stem he’d ask them about the problem and learn exactly what the issues were and then offer up what he felt was the best solution even if that meant trading them from a $20 faucet stem to a 25-cent faucet washer, if that’s all they really needed. He built a level of trust with customers that really helped him grow his business. He was all about people, whether it was the people that worked in his business or the people that shopped in his business. Growing the business was the thing that brought him the most joy in life. n

The North Brunswick, N.J., team filming a commercial for an event.

By Chris Jensen

PAYING IT FORWARD

Rose Hardware Transitions to New Local Owners

Scott and Angela Westhoff were not desperate to retire. They were still in their 50s and had built Rose Hardware in Memphis, Mo., into a very successful business during 20 years of ownership. However, the record sales they experienced during the pandemic got them to thinking.

“The last two years have been the most challenging and yet most rewarding we’ve experienced,” says Scott Westhoff. “And they say the best time to sell a race horse is when it’s winning.”

The Westhoffs made the difficult decision that it was time to sell their business. Their two daughters lived out of town and worked as teachers,

Angela and Scott Westhoff are proud of the 20 years they dedicated to building a business that is now positioned for the future.

Angela and Scott Westhoff (left) have a ceremonial passing of the keys of ownership of Rose Hardware to Nikki and Eric Long.

so keeping the business in the family was not an option. “We were told it could take five years to find a buyer,” Scott recalls.

Rose Hardware has been serving the Memphis community since 1934, so the most important consideration for the Westhoffs was finding a local buyer who would keep the store going as a resource for the community.

FINDING A LOCAL BUYER

With a population of just 1,720, Memphis fits the classic definition of a small town. Finding a local buyer for a hardware store in Memphis who was both interested and qualified was going to be tough. “There were not a lot of people knocking down our door,” Angela admits.

Enter Nikki and Eric Long, who own and operate a cattle farm southeast of Memphis and have lived and worked in the area for 13 years. Eric works for Northeast Missouri Rural Telephone, while Nikki had been employed in EMS with the Scotland Co. Ambulance District for 15 years.

Right: The Westhoffs look back fondly on their years in the hardware industry including attending Do it Best markets.

Left: The community of Memphis, Mo., is excited new local owners were found to maintain a hometown source for hardware products.

“I was looking to do something different and saw that the store was for sale,” Nikki says.

The Westhoffs had known the Longs for years and been neighbors. “We had some farming interests and Eric had put up hay for us,” Angela points out.

The Longs started looking into this potential business deal in April 2022. “I discussed it with Eric and he thought it was a good idea,” says Nikki. “Rose Hardware is Do it Best store number 1027, which is my birthday, so I saw that as a sign.”

Selling a business takes diligence, timing and a little luck. The two parties also have to be on the same page with the fine details, which requires a certain

SUCCESSION PLANNING

level of trust. For Scott and Angela, when they looked at Nikki and Eric it was like looking in a mirror 20 years ago.

TAKING ON A DISTRESSED BUSINESS

Scott and Angela’s path to hardware retailing was similar, to a point. Twenty years ago, they had been operating a farm for 16 years as seventh-generation farmers. “The economy at the time made us decide to sell the farm. Angela worked at school and I was going to work with heavy equipment,” Scott recalls.

They noticed that Rose Hardware in town had closed and the gondolas were torn out of the building. The original family who had started the store in 1934 had sold the business to someone who gave it a go for five years but was ultimately unsuccessful and was forced to close the underperforming business. “We discussed doing something together with the original owners. The retired sonin-law of the original owners said he’d reopen with us if he had to,” Scott says.

In April 2002, they took the plunge as hardware retailers and reopened Rose Hardware, attempting to build back trust in the community. “It was hard to be afraid of something we didn’t understand. We learned on our own through trial and error,” Scott says. “Everyone in the county knows us, so we focused on customer service.” The old owner preferred to stay retired, so within three years the Westhoffs bought him out.

“Scott and I have always been good at figuring things out,” Angela says. “We have a history of taking something that was distressed and refurbishing it. We knew the store had been successful in the past, so that was encouraging. We went with Do it Best from the start. All our instincts were right.”

She adds, “There were good days and bad. We were grinding away. Some years were more of a struggle than others.”

For the first five years, Scott continued working his full-time job at the Missouri Department of Transportation. Then he would come in and work on Saturdays. “We never had a Saturday off for six or

The sales floor of Rose Hardware that was transformed through the years by the Westhoffs now awaits the creative ideas of the new owners.

seven years. We had to make sure the business was gaining,” he says.

They did a soft reboot in 2009 with used shelving and a store reset. “We had been using old handmade gondolas and the store had poor lighting. We also got a dedicated paint room, which helped boost sales,” Scott notes. They added services like sharpening knives and chain saws. Scott fixed lamps and cords. As Angela says, “If you do little jobs, then big jobs will follow.”

In 2014, they got a point-of-sale system, which meant they could finally track inventory. “We kept trying to change and make the business better. Rental was an experiment that didn’t work,” Scott says.

PATHWAY TO SUCCESS

Serving the community was important to the Westhoffs, and Angela quickly realized the importance of being hands on with the business and in the store working every day. “It was the only hometown hardware store left in the area, so we felt a responsibility,” Scott admits.

When the business really got on solid footing was when the Westhoffs went through Do it Best’s retail performance program, which incorporated customer surveys and market research. “We discovered our best option was to stay in the current location. We replaced 70 percent of the fixtures and added a lot of inventory,” Scott says.

It was a stroke of luck. All that work was completed for the newly improved

“IT’S BEEN AMAZING TO TRANSITION INTO OWNERSHIP OF A LOCAL BUSINESS. IT’S A LOT TO PUT ON US, BECAUSE WE DON’T WANT TO SEE IT FAIL.”— NIKKI LONG

store in February 2020, right before the pandemic hit. “It was amazing timing. We gained a bunch of new customers. People were spending their stimulus checks with us,” Angela points out.

Rose Hardware posted a 21 percent increase in sales in 2020, followed by a 14 percent increase in 2021. The Westhoffs paid off their retail performance loan in two years.

“We had such good years in 2020 and 2021, but we didn’t want to be there forever,” says Angela, who is 55.

Adds Scott, who is turning 58, “Timing is such a challenge. We had another five to 10 years in us but we would have had to reimagine the business several more times. We had bought a distressed business and brought it up to the peak performance for us. We were tickled to find someone interested.”

CARVING OUT A DEAL

As the Westhoffs and Longs went through the negotiation process, a few

SUCCESSION PLANNING

key issues emerged. In addition to finding a younger couple with the passion and commitment to keep the business going into the future, Scott and Angela wanted to ensure Do it Best got its investment back. They had a stipulation that the new owners maintain Do it Best membership for at least five years and maintain the programs and services they had going through the co-op.

“That was an easy sell to them. We’ve got 1,800 customers signed up for the Best Rewards program,” Scott notes.

For the Longs, their biggest concern was their lack of retail experience. They viewed Do it Best’s assistance as a plus, but valued Scott and Angela’s willingness to train as the thing that sealed the deal.

“There was the trust factor. Scott and Angela were super throughout this process,” Nikki says. “Without their help this would’ve been a rough process. They were willing to come in every day if needed. I can’t imagine trying to learn all this on my own.”

Scott and Angela sold the business to Nikki and Eric in a deal that took effect November 1, 2022. The Westhoffs were able to find local owners to take over the business they had poured their heart and soul into, ensuring the community retains a reliable local source of hardware products.

“Angela and I are deeply humbled that we’ve been able to serve this community for more than two decades and

Scott giving his grandson Hatcher James Hamilton a taste of hardware retailing life.

we’re excited to see the Longs continue building on the tremendous legacy of Rose Hardware,” Scott says.

Angela says the positive feedback they’ve received from the community was gratifying. “People said we’re sorry to see you go but glad you found a local buyer to take over,” she says.

Adds Scott, “Even some of the original Rose family members reached out and expressed praise for finding a way to keep the store going all these years.”

“We’re really looking forward to the opportunities that come with being new store owners,” says Nikki. “Not only will it be a welcome change for us, but we’ll

have the chance to make lots of new Rose Hardware friends while helping them with their home improvement projects. The Westhoffs have built a strong foundation for us to grow the business.”

TRANSITIONING FOR THE FUTURE

Nikki gave her notice at her old job and spent time during October trying to learn the ins and outs of running the store from the Westhoffs. Eric is still working his full-time job, so he’s following the same path as Scott and just working in the store on Saturdays.

There were a lot of important details to execute like transferring the co-op membership, POS license, credit card machine and tax ID, as well as notifying key vendors like Package Express.

“We’ve made ourselves available. We’ve told them that this is what worked for us, but we can’t tell you what will work for you,” Scott says.

“They showed me everything I needed to know to be on my own,” Nikki says. “I would record a video with my phone and then take notes as they described how to do something, so I could refer to it later. I recorded Scott showing how to do the Do it Best order step by step.”

“Do it Best really helped ensure the transition was smooth,” Angela notes. Adds Nikki, “Do it Best has been amazing. They have responded quickly to any question I had.”

Rose Hardware had two full-time and two part-time employees and all but

one employee carried over. “We were very transparent with the staff and letting them know what was going on. We had run the store by ourselves for several years, so we’re turning over a better operation,” Angela points out.

“It’s been amazing to transition into ownership of a local business. It’s a lot to put on us, because we don’t want to see it fail,” says Nikki. “All the feedback from customers has been very positive. They’re excited the Westhoffs found a local buyer to keep the store going.”

Nikki has already sprung into action, donating to groups for fundraisers and raffles.

“The most surprising thing is listening to customers and getting a feel for the different options and varieties they want. Some of the products we sell is a challenge, so I’m studying up on fittings,” she says.

For 2023, her plans include getting an app developed for Rose Hardware and doing more with Facebook. Longerterm goals are also in sight. “Our kids are 21, 20 and 11. Hopefully, Eric and I have a successful business that we can pass on to our kids,” Nikki says.

As for Angela and Scott, they look forward to spending more time with their seven grandchildren. They are in discussions with Do it Best about working as conversion consultants.

“Scott and I have 20 years’ experience in the industry and it would be nice to put it to work helping other retailers,” Angela says. n

By Doug Donaldson

SUREFIRE METHODS TO ATTRACT CUSTOMERS WITH CREATIVE EVENTS

On an early November Monday evening, winds gusted through the downtown streets of Geneva, Neb., but there was more in the air than blustery weather. Laughter, friendly conversation and a festive holiday spirit filled Geneva Home Center as more than 300 community members stepped into the hardware store for its annual Ladies Night event, this year called Mistletoe and Margaritas.

Inside the store owned by Glen and Lori Loontjer, the delicious smell of Mexican food wafted through the air along with excited anticipation for prizes such as jewelry, massage gift certificates and gallons of paint. Each year, Geneva Home Center relies on special events such as Mistletoe and Margaritas to draw in new and returning customers.

“During our Ladies Night, we see a lot of new customers and definitely get in a

lot of people we didn’t know,” says Lori Loontjer, who coordinates the seasonal special events for the store. “We sell a lot of trees, lights and decor while entertaining customers with food and drink. They do lots of shopping, but groups of four to six friends come in together. It’s a social event. It is well worth it. And for us, it’s way of thanking our community.” Geneva Home Center takes on a whole new sparkle around the holidays. Each fall, a massive 42-foot Christmas tree out front lets shoppers know they are about to enter a yuletide wonderland inside.

Along with Ladies Night, their Sip ‘n Shop events draw holiday shoppers to their enormous seasonal category with beverages, snacks and product giveaways. An annual Jingle and Mingle with Santa gives away $750 in gift certificates from local merchants. Each event draws customers to experience the friendly

buzzing for weeks.

atmosphere, personal service and expansive product selection Geneva Home Center offers year-round.

Like Geneva Home Center, other independent retailers can increase foot traffic, attract new customers and boost the bottom line with seasonal events. Beyond any financial benefits, seasonal events have a greater function by uniting a community, deeply tying a business to its customers not just for one night but for generations. So, during this holiday season, The Hardware Connection asked three retailers who excel at putting on such seasonal events to share how they plan, promote, and carry out such community gatherings.

CONNECTING WITH COMMUNITY

The first, biggest question when considering a seasonal special event is: What kind of event? With six to 12 events per year, Rainey’s Corner Market in White City, Ore.,

Left: Geneva Home Center hosts an annual Ladies Night event that brings the community together.

Upper Middle: In addition to Ladies Night, Geneva Home Center holds Sip ‘n Shop events that draw holiday shoppers.

Upper Right: Geneva Home Center’s Ladies Night event offered a grand prize package of Nebraska-made products!

has developed a strong connection with its community through these gatherings.

“My biggest piece of advice for other retailers looking to do seasonal events is to ask yourself ‘Why are you doing the event?’ and ‘Who are you doing it for?’ then keep that in the forefront of planning,” says Chloe Ellis, the store’s manager. “People respond to that, and honesty pays back in dividends.”

One event Rainey’s Corner Market hatched a few years ago was its annual Easter Egg Hunt, which is now the store’s most popular seasonal event. Each spring about 120 to 150 children visit the store to hunt through its on-site hay barn. Parents can elect to have children receive a goodie bag or live chick. In addition to the nearby families attending the event, the local 4-H club members volunteer to help hide eggs and guide younger kids.

The Ladies Night event at Geneva Home Center is fun for the staff and gets the town

SPECIAL EVENTS

In addition to the Easter Egg Hunt, other events at Rainey’s Corner Market combine education with fun. “We want to help farmers do better and work smarter, not harder,” Ellis says. “When people come out and feel part of community, it’s essential for survival, especially for a small business. We have customers who drive more than two hours to come to our store because we have that open, community feel.”

Special events are also a time when customers are choosing to come to the store, not when they are in the middle of a repair and need to get in and out quickly. Customers are coming for a sense of community, so the event needs to live up to that expectation, Ellis says.

PLANNING BEGINS MONTHS BEFORE

Loontjer starts planning the Geneva Home Center Ladies Night well in advance. The January and February before the event, she will visit shows and order products that will be tied to the theme of the event. By March, Loontjer starts referring to a checklist of preparations. By the summer, she connects with distributors to stock endcaps and with local businesses for door prizes. Throughout the year, Rainey’s Corner Market hosts several guest speakers who share their expertise with the local 4-H club. Ellis books these speakers about eight months in advance while also scheduling around the community’s farming cycles. She times specific

Upper: Attendees from a recent clinic at Rainey’s Corner Market.

Lower: Local 4-H youth learn about show prep, nutrition and products from experienced pros at clinics hosted by Rainey’s.

education events to coincide with needs of the community. For example, she hosts calving information sessions before it’s time for calving season, so farmers and 4-Hers will know how to prep before any calf hits the ground. The big event for Bloomer Hardware in Bloomer, Wis., is the store’s annual Greenhouse Opening Day in April. For Bloomer Hardware Owner Tyler Naas, planning for the big day begins the previous November.

One of the biggest challenges is determining prices months before the event, because Naas must schedule the printing of fliers in advance. But first and foremost, Naas plans staffing for the event.

DON’T BE CAUGHT SHORT-STAFFED

If all the advance planning works out, a river of people will flow through the store during a special event, and

there must be enough staff to handle that deluge.

Naas plans to overstaff during the Greenhouse Opening Day, because he adds temporary checkouts in the greenhouse to handle the influx of customers. He also tries to bring in extra salespeople and manpower to help carry plants to customers’ cars. Yet, the preparation for the event has even more staffing demands. Two truckloads of plants must be unloaded and shelved beforehand.

“It’s a long day’s work to unload the two truckloads of flowers,” Naas says.

Even that aspect of the event brings the community together. The workers Naas recruits for the unloading see it as a sort of community gathering, too. The store provides pizza and drinks, and word of mouth spreads about the communal good time had while unloading the plants.

Upper: Local 4-H club members hide eggs for Rainey’s annual Easter Egg Hunt.

Lower: Rainey’s hosts fitting clinics and other events targeted to the 4-H youth as well as hobby farmers and ranchers.

Like Naas, Loontjer also plan for staff before the event to assist with setup. At Geneva Home Center, the store gets a complete makeover with Christmas decorations before Ladies Night thanks to a 12-woman crew Loontjer hires for a day when the store is normally closed. To assist during the event, a few members of the local American Legion will bartend in exchange for a donation to their post. Loontjer’s husband and son run the checkout counter during the event.

RAMP UP MARKETING

Letting the community know about seasonal event is a vital component of planning. Loontjer and Naas typically start ramping up marketing efforts about a month before an event, relying on social media to get the word out. For example, in the month before the most recent event, Loontjer shared a Facebook post about Ladies Night once or twice a week. Then, in the four days before the night, posts featured the major door prizes, which included a room of carpet, jewelry and Nebraskamade cooking supplies.

Ellis suggests sticking a little closer to the day of the event to start marketing efforts. “I’ve found that if we start promoting events further out than two weeks, people get annoyed,” Ellis

SPECIAL EVENTS

says. The day of the Easter Egg Hunt, Ellis will post an invitation online for local residents.

While Bloomer Hardware posts on Facebook about upcoming events, Naas has found that print and direct mail have been effective. The store’s customers are spread out geographically, so they are a little harder to target with online ads, he says. About two weeks before the Greenhouse Opening Day, Naas seeks to connect with the community.

“The marketing part is important because we open the last weekend in April and up here, that may be a little early to be thinking about plants,” Naas says. “There could be loads of snow still here, so putting into customers’ calendars and reminding them a couple more times before the event helps.”

Along with digital marketing, Naas promotes events on the electronic sign in front of the store and with instore signage.

To get customers thinking about the event, Rainey’s Corner Market builds end caps to match the season about two weeks beforehand. Similarly, for Geneva Home Center, Loontjer works with vendors to ensure that event-themed end caps are well stocked.

HOW EVENTS BRING ’EM BACK

Seasonal events should boost the store’s appeal well beyond the day of the festivities. Loontjer has found some

Upper: Bloomer Hardware participates in the town’s Main Street Trick-or-Treat, handing out candy from their storefront.

Lower: Bloomer Hardware hosts photos with Santa at Christmas time.

smart ways to help encourage customers who attend the special events to return for repeat visits.

At the most recent Geneva Home Center Ladies Night, attendees received a gift bag that included a coaster, which could be brought back to the store and personalized with a laser engraver. The gift bag also includes gift cards for the store.

At Rainey’s Corner Market, manager Ellis believes the information that guest speakers share brings back customers

and helps establish the store as a source of expertise.

“When people feel comfortable coming to us for information, they’ll return again and again,” Ellis says. “The products we sell are worth more than the label, because we have the know-how about everything from plumbing to how to raise chickens. Our events convey that knowledge.”

Naas says he sees repeat customers because of events. “We may not make a whole lot of money on our paint event, for instance,” Naas says. “But we’re in customers’ minds. Events will keep customers coming back.”

EVALUATE TO BOOST SUCCESS

After the doors close and customers go home, the event isn’t over. Or, at least, it shouldn’t be over if you plan on improving. Loontjer recommends reviewing the event’s successes and any missteps to improve for subsequent years.

“Afterward, I’ll talk with a couple of friends who attended and ask them to give suggestions,” Loontjer says. “My husband and son also share their experience at the checkout and review any comments or concerns the customers may have had.”

During events at Rainey’s Corner Market, Ellis writes down notes and afterward has an informal conversation with staff to determine any improvements to event planning. For Ellis, recording these ideas for the following

Santa makes an appearance at Geneva Home Center to give away gift certificates and items from other local businesses.

year is kept on an office calendar so, when it’s time to plan for a specific event, she will see the note. One example of how these conversations helped make decisions to improve the event resulted in limiting noise from generators, because it disrupted the petting zoo. So, Ellis reconfigured the power supply to keep the petting zoo area quieter for future events.

At Bloomer Hardware, Naas judges an event’s success by foot traffic and by how far folks travel to attend. At Bloomer Hardware’s paint event, he found that customers routinely drove 40 minutes or more.

What is an even better gauge of success may be how long afterward customers talk about the event. Naas recalls that even years after Bloomer Hardware’s first greenhouse event, people still talk about how there were so many cars parked on the main road for the event that people couldn’t get through town.

“The biggest thing is to keep it fun,” Naas says. “Make it 100 percent about the experience—that’s what people remember the most.” n

What Digital Transformation Actually Means for the LBM Industry

By John Maiuri

It’s no surprise that a crisis accelerates the need for innovation to find solutions for new problems. Just consider the COVID-19 pandemic when the lumber and building material (LBM) industry witnessed an “ecommerce explosion” as online shopping and trends like buy online, pickup in-store (BOPIS) took off—these technologies became essential to maintain daily operations.

Since then, there has been a lasting behavioral shift as customers continue to gravitate toward the digital experience, so it’s no surprise that 88 percent of LBM leaders saw online sales increase over the past year, according to ECI’s 2022 Lumber, Building Material and Hardlines (LBMH) industry survey.

The current market is driving many LBM leaders to leverage digital technologies to meet evolving customer expectations, as well as manage ongoing challenges like vendor fill rates, lead times, price volatility, product inquiries and labor shortages. To implement these digital technology solutions and benefit from the investment, LBM leaders must understand what digital transformation means

for them in their individual business and market they serve. For many, and especially those who have only recently begun to use core technology in their business, the transition to digital commerce may seem futuristic, when some would argue the LBM industry is 20 years behind the curve when it comes to this type of innovation.

DIGITAL TRANSFORMATION: THE INTEGRATION OF DIGITAL TECHNOLOGY SOLUTIONS

With nonstop supply chain constraints and recessionary fears, digital technology solutions that support advanced business reporting have become critical for LBM leaders to monitor operations and keep an eye on the broader industry’s health. The good news is that ECI’s LBMH survey report found that many businesses have increased investment in technology infrastructure (55 percent) to address market concerns, specifically to enable them to expand ecommerce offerings (58 percent) and maintain a competitive advantage in the market (54 percent).

Digital transformation isn’t about the technology itself, it’s about how that technology creates an innovative business model that can provide greater predictive analytics and deliver new value. Furthermore, digital technology solutions, such as the ones included below, are driving better decision making, smarter investments, operational efficiencies and substantial cost savings.

END-TO-END SOFTWARE SOLUTIONS

To maintain business functions and keep up with demand in the LBM industry, a vertically specific Enterprise Resource Planning (ERP) software solution with integrated point-of-sale (POS) and ecommerce is essential for innovative LBM dealers. With a verti cally specific software solution in place, inventory can be better managed, and orders can be processed with greater consistency in pricing—allowing gross margin control, integrations with vendor catalogs and millwork configurators can import without rekeying information. With an integrated document man agement system, all POS system activ ity can be seamlessly tied to business documents from accounts receivable to payables. Having all front-end and back-end functions integrated creates unlimited reporting and analytics. This ers want to provide a positive shopping had extensive experience with the product. So we recruited d-i-yers to solicit their feedback.

Each used FrogTape on multiple surfaces windows, baseboards and corners, and everyone was amazed by the clean lines usually only possible with pros. No one had any instance of paint bleed or difficulty removing the tape even after it stayed in place for over a week. If you currently do not stock FrogTape, then bring in a few SKUs of their Pro Grade Painter’s Tape and Pro Grade Orange Painter’s Tape, which offers higher adhesion. ■

week. If you currently do not stock

TECHNOLOGY UPDATE

experience that rivals national chains and other competitors. Refusing or being slow to adopt an ecommerce solution may lead to missed opportunity or worse, losing business to competitors that do offer an online presence. As an industry, addressing the expectations of consumers and tradespeople—like contractors, builders and busy build-it-yourselfers—is the cost of doing business.

Simply offering business capabilities online alone will not be enough, however, to attract and nurture customers looking for flexible and seamless experiences. Businesses need to continue to look beyond in-store customer experiences by adopting additional technology solutions that enable customers to shop when and how they please.

DATA SOLUTIONS

Data is at the center of all technology solutions. In this ever-changing world, it’s critical to have the ability to access and analyze business data to find areas of improvement and have a comprehensive view of an organization’s health. LBM leaders must invest in technology solutions that allow them to learn from their data and uncover critical business insights and trends to make smarter decisions.

For example, digital technology solutions with real-time data dashboards and reports can provide LBM leaders with a clearer picture into key areas of the business such as sales, inventory on-hand,

scheduled shipments and special orders, so they can keep a pulse on operations and make more strategic decisions in this economic environment.

Additionally, having an integrated ecommerce solution providing real-time awareness of purchases, self-created quotes, wish lists and even clicks per item, provides useful analytics to predict turns, give insight to sales staff, assist with purchasing and replenishment and more. Using data in a much broader yet refined analytical manner allows LBM dealers to track purchasing behavior and to predict customer demand—furthering price stability and navigating supply chain constraints for on-time deliveries. Overall, the LBM industry must embrace digital technology solutions and invest wisely, and with the potential for a recession on the horizon, the time to act is now. Digital technologies allow LBM leaders to work smarter and more efficient, even when faced with a multitude of market disruptions. Investing now could be the difference in a business just surviving or experiencing growth when others are declining. n

As president of the LBM & Hardlines Group at ECI Software Solutions, John Maiuri is responsible for the vision, guidance and strategic growth of his team within the Building and Construction Division. With more than 30 years of experience in the lumber and hardware industry, John understands the importance of leveraging technology to remain competitive.

4 SECRETS TO GROWING OUTDOOR POWER EQUIPMENT SALES

By Chris Jensen

During a downturn in the housing market more than a decade ago, Scott Jerousek, owner of Farm & Home Hardware, identified an opportunity to continue growing his business—outdoor power equipment (OPE). He quickly discovered he had a natural intuition for identifying the brands and products most likely to sell, which he complements with extensive research and an eye for up-and-coming trends like battery-powered, hand-held equipment.

In addition to a solid product mix, the following four strategies have helped grow the OPE department at Farm & Home Hardware’s stores in Ashland and Wellington, Ohio, through the years:

Scott Jerousek has turned outdoor power equipment into a pillar department at his two Farm & Home Hardware stores in Ohio.

1. Parts and service—By servicing the OPE products they sell and carrying on-hand parts for repairs, Farm & Home Hardware has earned the confidence of younger shoppers who need a local, trusted expert.

2. Female-friendly—Female sales associates and service representatives make the store, and specifically the OPE department, welcoming to female shoppers.

3. Extended hours—Extended hours of operation, including weekends, make shopping for and owning OPE products more convenient.

4. Google ads — Since scaling back on print advertising in favor of digital ads,

Jerousek has seen a significant increase in both store traffic and OPE sales. With a decade of experience under his belt, Farm & Home Hardware is a prime example of how growth in OPE is possible with imagination, intuition, insight—and more than a little elbow grease. Read on to learn more insights into OPE success from Jerousek and Farm & Home Hardware.

What made you identify OPE as a growth category?

Jerousek: Farm & Home Hardware has sold outdoor power from the inception of the business in 1960. Over the years we had success but looked at the department as a troublesome child. At the scale we operated it was not possible to have personnel dedicated to sales, service, assembly and delivery. So, over the years we muddled in OPE, thinking it would be a dealership-based business that we could not compete with. Then in the mid ‘90s the national big-box retailers started to spring up in our trading area. Outdoor power was a key department in their product offering. That started the transition of customer shopping habits by shifting a good portion of buying away from the dealership model. They started looking at OPE as a product and not a committed/service after the purchase product. Dealerships in our area were run by great people but had not continued to evolve with the times. By 2007 most dealerships continued to struggle

Left: Repairing what they sell has been a game changer for Farm & Home Hardware.

Right: Having OPE parts in stock is a huge advantage for Farm & Home Hardware.

competing with the boxes and this gave us an opportunity to adjust to the needs of our customers.

Our customers were looking for something more. I looked at this as an opportunity to refine our business model and commit to being one of the best in the industry by developing departments we could compete directly with national retails in. We chose these “pillar” departments carefully, by looking at opportunities with service as a backbone. OPE is one of those “pillar” departments.

What is the key to identifying the OPE brands and

products

most likely to sell?

Jerousek: We are always looking to improve our product offering. Many things have changed over the years. Some consumer driven, while others were driven by government decisions on emissions. We look at our vendors as true partners in our business. For it to be a good relationship it needs to work for both of us. Our key OPE partners offer

innovative products, competitive pricing, digital marketing and service support.

I am always looking for the next best product or vendor. I do this by attending the National Hardware show, Do it Best markets, Equip Exposition in Louisville and by traveling to other successful dealers. It is the dealer connection that normally nets the most background information on vendors and products. With that data we can determine which products and vendors will add value to our store.

Battery is turning the world of OPE upside down. I have seen more innovation in products over the last few years than we have seen in the previous decades. Technology is continually evolving as is the need and demand both commercially and in the residential landscape. To me, battery is all about the portfolio. You sell a battery platform to a customer based on these factors: quality, service, options and a diverse/ complete product lineup.

Customers have always looked for a quality line that offers the option of using their string trimmer battery in every handheld tool they have. Now they are also expecting the battery to work in wheeled products and other products. From snow throwers, walkbehind mowers, zero turns, fans, lights to power inverters—it’s a garage full of products that can utilize the same line of batteries. This gives the customer more options than they were expecting, which in turn creates a greater value for lines able to continually innovate.

How important is it to service the OPE products you sell and have parts in-stock for repairs?

Jerousek: Offering in-store service, parts and accessories is a lynchpin of the OPE department. We put our name on it if we sell it. It’s important to find the right partners who support us. These products offer value to our customers and create ownership opportunities when we wow with service. Another factor to stocking parts and accessories is the increased margin potential for our OPE department. Whole goods are a tight margin line, so by adding the accessories and parts we can balance out the department’s ROI. Customers can purchase these items by clicking on their phone. The secret is to have popular parts in stock and creating a mindset with our customer base that we are worth the trip.

One of the most difficult parts of OPE is finding, building and retaining quality repair technicians. It is a continual battle against auto, diesel/heavy equipment and marine shops. This is going to cause a huge issue moving forward if something is not done about it. The only mitigating factor is the emergence of battery products and the ability to build a different type of technician to maintain and repair those products.

How have you been able to attract female OPE shoppers?

Jerousek: We looked at our store years ago and we were an old-time hardware store. We have focused

for years on developing a family and female-friendly shopping experience. The dealerships have had a stigma over the years that they offer a male-dominated experience. So again, we have an opportunity to shine. The amount of female OPE buyers and service customers has increased significantly over the years and we want to do everything possible to expand our customer base. We focus on offering well lit, organized stores with helpful staff. Our stores are open later and on the weekends to help families with their needs. We have also migrated to female service managers in our stores to help soften the contact points between service and our customers. It’s going great, and we have been able to gain significant market share through the years.

How has switching from print advertising to digital ads grown your OPE sales?

Jerousek: It’s been six years since we’ve done any print ads. We started pushing customers to our website with products and inventory up there—having inventory online has been huge. Paid ad words offer short-term growth and focus on key periods of the selling

Left: The store has focused on becoming a female-friendly shopping destination.

Right: Farm & Home Hardware has seen a significant increase in OPE sales since switching to digital ads.

season to maximize exposure—it works. We change key words by time of year. Display ads offer front-of-mind association for our product lines and store services. We need to do a better job with video. I am looking to start using product reviews to build a local influencer base. We went through Google certification for shopping based on location. Local shopping through Google populates and helps our customers find their products and our store quickly.

What is your approach to marketing OPE?

Jerousek: Most of our key vendors have national brand marketing. This is a continually evolving piece as companies migrate from print to digital. We use a couple types of email marketing. It’s basically services and product based.

In the spring we offer seasonal tuneup specials and send out postcards and emails for those. The kicker for customers is free pickup and delivery up to 10 miles and discounted rates past that. We also reach out directly via text and phone calls

to customers who have warranties that expire within the next six months. This allows us the opportunity to evaluate their equipment and make repairs on parts that are failing, prior to the piece running out of warranty. It’s a win-win for the customer and our service department and goes a long way to cementing our team as the first ones they see for parts and service.

What promotions or special events have been most successful to grow OPE sales?

Jerousek: Promotions are different for each brand. Some run instant or mail-in rebates, others offer free goods with a purchase. The instant rebates normally show the best sales results. Free goods with purchase are clunky and only appeal to a small customer base.

Consumer financing is a large part of our business and has been for years. Financing promotions help to drive sales as our customers will buy up to better equipment based on budgeting per month. In the past manufacturers would offer 0 percent for 48 months. That has changed dramatically due to the rise in interest rates. Our norm now is around 3 percent for 36 months.

When the pandemic hit manufacturers quickly ran out of equipment and it became a seller’s market. All our brands pulled their promotions other than financing rates.

We run some different customer interaction events throughout the year. Our best event is normally the St. Patrick’s

Day Spring Preview. Our Ashland store has a creek that runs next to it. On St. Patrick’s Day the city of Ashland has a large celebration downtown that dyes the creek green. To add excitement, we have our major grilling and outdoor power brands on display and offer demos. The air is filled with the smell of grilled food, test drives are available on equipment and green beer is passed out with our food samples. It’s a great event that helps to slingshot sales in early spring for two of our pillar departments.

It’s tough to build excitement, but we offer customers plenty of test drives with our outdoor power equipment. We host a chainsaw cutting competition—quickest one through the log wins the saw.

How much space do you devote to OPE products?

Jerousek: We dedicate about 4,000 square feet to indoor displays in our original location, which does three times the OPE business of our second location, which has 2,500 square feet devoted to OPE. A couple of years ago we added outdoor covered displays to help dedicate more space internally to parts and service. I would highly recommend this as consumers still do not equate hardware stores with outdoor power. You literally need to hit them in the face with the fact that you service and sell equipment. The outdoor displays have helped tremendously in driving sales and recognition for the outdoor power departments in our stores.

How do you use your operating hours as an advantage?

Jerousek: We are open 8 a.m.-7 p.m. M-F, 8 a.m.-5 p.m. on Saturday and 9 a.m.-5 p.m. on Sundays. In the spring season—April, May, June and July—we extend Saturday hours to 6 p.m. Our normal hours offer plenty of availability to parts, service and equipment for our customers. Most dealerships are open until 5 Monday through Friday, noon on Saturday and closed on Sunday. So, there is a great opportunity to grab market share by committing to outdoor power as a pillar department.

As for the boxes and other national retailers, they will always have their

customer bases. But service and parts are a huge advantage for our company. We lead with the fact that we keep parts in stock and that we service what we sell. For some customers service just does not matter, but our customers know that we stand behind everything we sell and that makes us their first choice and allows them to take ownership in our business. We have tripled

OPE sales at our second location over the last few years, but it’s not a quick win. You just need to practice what you preach. Sometimes, it’s a losing proposition, but we look at the outdoor power equipment business as an infinite game. n

OUTDOOR POWER EQUIPMENT MERCHANDISING:

Ace of the South in Gardendale, Ala.

O’Connor Ace Hardware in Billerica, Mass.

Auer Ace Hardware in Coshocton, Ohio.

Ritter Lumber in Nederland, Texas.

Vassar Building Center in Vassar, Mich.

Eads Hardware in Paris, Ky.

PRODUCT SPOTLIGHT

CRESCENT ® POCKET KNIVES

• Three new pocket knives unveiled: the Hybrid Folding Utility Knife, Compact Folding Utility Knife and the 2.5” Low Profile Frame Lock Knife.

• Both utility knives have a sturdy liner lock and feature a slide button release for quick blade change. The Hybrid Folding Utility Knife features a first-to-market design that combines the comfort of an everyday carry knife with the blade-changing functionality of a utility knife.

• The Compact Folding Utility Knife is truly compact, with a length of only three inches when closed.

STIHL ZERO-TURN MOWERS

• The STIHL 100 Series and STIHL 200 Series zero-turn mowers provide homeowners the power, performance and durability they expect and come packed with features to achieve a smooth, efficient cutting experience.

• Three homeowner models—the RZ 142, RZ 152 and RZ 261—boast ReadyStart® technology, allowing for quick startup. Also, reliable V-Twin Briggs & Stratton engines (23-25 hp) are standard.

• Users of the STIHL RZ 152 and STIHL RZ 261 will enjoy the ability

• The 2.5” Low Profile Frame Lock Knife features an ultra-slim design and a durable D2 steel drop point blade that is made to stay sharp even with heavy use. Crescent Tools/Apex Tool Group

to take on a range of terrain thanks to four-wheel suspension with adjustable rear shock absorbers.

• Other standard features include a large 3-gallon fuel capacity, footoperated cutting height, trailer hitch, deluxe seat and an hour meter that tracks and displays run time hours.

STIHL USA

www.stihlusa.com / 800-467-8445

PRODUCT SPOTLIGHT

SMART GATE OPENER

• MM572W smart gate opener provides the ability to control gate from anywhere using the Mighty Mule smart phone app. The MMS100 wireless connectivity kit (sold separately) provides control for gates installed as far as ½ mile from home.

• Designed for heavy-duty dual swing gates up to a maximum of 18’ long or maximum weight of 850 lbs. Approximate opening time of 14 seconds.

• Comes equipped with detailed instructions, online how-to videos, unlimited access to 24-hour technical support and backed by 18-month warranty.

M12 CABLE STAPLER

• Perfect for all dual gate types including ornamental, chain link, tube, panel, vinyl and wood. Solar capable and HomeLink® compatible.

Mule/Nice North

• Delivers unmatched stapling performance in the most compact battery-powered solution, leading to a faster, more efficient rough-in process.

• Compact, lightweight design provides users with access to tight stud bays and improved ergonomics when stapling overhead or during difficult-to-reach situations.

• Moveable cable guides ensure proper alignment and the coil-spring mechanism consistently sinks the staples to the appropriate depth when fastening NM-B Sheathed Cable and low-voltage cables.

• Gives the user the run-time needed to sink up to 1,200 staples on a fully charged M12 CP2.0ah battery.

MULTI-MAX PRO LADDER

• Ultra-flexible, multi-position ladder that can replace 5 common ladders on the jobsite, setting a new standard in worksite versatility. It can be used as a twin step ladder, stairway step ladder, wall ladder, extension ladder and leaning ladder.

• Accessing those functions is easier than ever thanks to one-handed adjustment for quick setup.

• With a load capacity of 375 pounds and Type IAA duty rating, the MultiMax Pro is fully loaded with profocused design elements. Users can adjust the hinge at the central pivot point, making it easy to change positions.

BEMIS CLEAN SHIELD 3” RAISED TOILET SEAT

• Offers nearly 2” more open space for additional comfort and an extended drip barrier for increased cleanliness.

• Patented Snap 2 Secure system is engineered to generate and maintain perfect clamping force to properly secure seat so it will not wiggle or loosen and the self-sustaining hinges allows for easy cleaning, keeps seat up when in use and prevents ring slamming down.

• Innovative, patented “reverse funnel” design of the shield keeps everything in the bowl avoiding contact with waste.

• 7 inches of built-in leveling keep you safe on uneven surfaces. Widespaced feet can be modified by user’s foot.

Company

• Seat height is increased/elevated by 3” to ease sitting and standing without bending for those with limited mobility. 21” width between the arms fits in virtually all bathrooms.

The Hardware Connection provides a pictorial look at holiday displays. Send pictures to chris@thehardwareconnection.com.

A’s Home Center, Manasquan, N.J. Bering’s

Ace of the South, Gardendale, Ala.

Breed & Co., Austin, Texas

Bomberger’s Store, Lititz, Pa.

C&D Hardware, Houston

Logan Hardware, Washington, D.C.

Junction True Value, Seattle

Charlie’s Hardware, Mosinee, Ill.

Hartville Hardware, Hartville, Ohio

Costello’s Ace, Deer Park, N.Y.

Kinney & Keele True Value, Ontario, Ore.

Buck’s Electric Ace Hardware, Ocean Shores, Wash.

Pierson Building Center, Eureka, Calif.

Kitsap Lumber, Bremerton, Wash.

La Grange Park Ace Hardware, La Grange Park, Ill.

Snow’s Home & Garden, Orleans, Mass.

The Hardware & Toy Center, Paoli, Pa.

Wood Shed Lumber & Hardware, Carrollton, Mo.

IN THE NEWS

NEW STORES:

• Costello’s Ace Hardware acquired five Smith’s Ace Hardware stores in New Jersey and Pennsylvania.

K-VA-T Food Stores and Food City opened new Curt’s Ace Hardware stores in Elizabethton and Erwin, Tenn., and will be opening soon in Abingdon, Va.

• Doug Landers is opening Scottdale True Value in St. Joseph, Mich.

• Josh Fanning, Ben Fanning and Andrea Visker opened Royal City Ace Hardware in Royal City, Wash.

• Jamie Meholick is opening a second 814 Home & Hardware in Brockway, Pa.

• Blue Ridge Lumber Company is acquiring Gumble Bros. Inc. in Tafton, Pa.

• Dale and Bridget Morse have opened their second Ace Hardware in Boulder, Mont.

• Nation’s Best Holdings has acquired Palmetto Home Center’s two locations near Charleston, S.C.

• Westlake Ace Hardware is acquiring Trails West Ace Hardware in Gardner, Kan., and opening a new store in High Point, N.C.

• Justin and Alison Biery, owners of Damascus General Hardware in Damascus, Ohio, have bought Century Club retailer Leonard Hardware in Sebring, Ohio, which closed at the end of September. They plan to renovate the business and reopen in April 2023 as a Do it Best store under the name of Sebring Hardware.

• Kodiak Building Partners announced that it has acquired Century Club retailer Goodrich Lumber in Kingston, Mass.

• Big Creek Lumber has acquired O’Connor Lumber & Ace Hardware in Vallejo, Calif., from Joe and Rose Pierre.

• Revell Ace Hardware has acquired Madison Ace Hardware in Madison, Miss.

• Century Club retailer Bliffert Lumber & Hardware has merged in Milwaukee Cabinetry, a cabinet design studio and showroom in Milwaukee.

KUDOS TO:

• Century Club retailer S.W. Collins Co. received the Shep Lee community service award from the Institute for Family-Owned Business.

• New Media Retailer, based in Norwich, N.Y., was recognized with a Power Partner Award for excellence in advertising and marketing services from Inc. Business Media, which honors B2B organizations that have

Curt’s Ace Hardware

proven track records supporting small businesses and helping them grow.

• Readers of the Naples Daily News and NaplesNews.com voted Sunshine Ace Hardware as the Best Hardware/Home Improvement Store in Naples for the 20th consecutive year. Readers of the Bonita Banner recently voted Sunshine Ace as the Best Hardware/Home Improvement Store in Bonita Springs.

• During Epicor’s 2022 Insights for Building Supply customer conference, the President’s Excellence Award was given to Century Club retailer Spahn & Rose Lumber Co.; while the BisTrack Excellence Award was presented to Century Club retailer Arnold Lumber Co.

• S.J. Neathawk Lumber in Lewisburg, W.Va., is celebrating its 75th anniversary.

• Erin Plummer, chief marketing officer at Hancock Lumber, has been named to Mainebiz’s 40 Under 40 list.

• The Peter family is marking the 90th anniversary of Peter Lumber Company in Pleasantville, N.J.

• Gordon’s True Value Hardware, Patio and Fireplace Center in Owensboro, Ky., is marking its 40th anniversary.

• Sunshine Ace Hardware raised $5,000 as Ace Hardware stores nationwide helped raise $88,147 to support the American Red Cross’ Hurricane Ian disaster relief efforts.

PEOPLE ON THE MOVE:

• Kodiak Building Partners has named Scott Morrison its first vice president of continuous improvement.

• Dave Rush has been named interim CEO of Builders FirstSource.

• Do it Best Corp. promoted Hector Macias to warehouse department manager and hired John Carrier as territory sales manager, Andrew Davis as associate merchandise manager and Roy Resendez as international product development manager.

WHOLESALER NEWS:

• Ace Hardware Corp. planned to open 40 stores in Q4 for more than 170 new stores in 2022. Ace ranked second on Total Retail’s sixth annual Top 100 Omnichannel Retailers report. Ace also reported its digital business for the 5-day holiday weekend from Thanksgiving through Cyber Monday generated a 33 percent increase over 2021.

IN MEMORY:

Wallace Distribution Co. was recognized for its 100th anniversary by Rep. Diana Harshbarger (center).

• Bill Jablonowski, co-owner of five Jabo’s Ace Hardware stores in Texas, passed away November 5 at

Bill Jablonowski

the age of 56. Bill spent 16 years working in various retail development capacities for Ace Hardware corporate before buying Coppell Ace Hardware in Coppell, Texas, with his wife Renae in 2005. They renamed the business Jabo’s Ace Hardware and grew to five stores, winning the Beacon Award for Community Service from The Hardware Connection in 2020. He is survived by wife Renae, daughters Alyssa and Caitlyn, son Zachary and three grandchildren. Click here for more.

• Michael Picard, who operated CP Building Supply in Kensington, N.H., with his wife Maryann, passed away September 15 at the age of 66.

• Timothy Steiner, 75, who co-founded Diamond Home Improvement Center in Klamath Falls and Grants Pass, Ore., passed away October 16 at the age of 75.

• Dan Canup, who operated True Value Country Hardware in Granby, Colo., for 21 years with his wife Judy, passed away October 30 at the age of 80.

• Barbara White, who co-founded Harold White Lumber with her late husband Harold and worked there for more than 50 years, passed away October 4 at the age of 89.

FOR THE FULL STORY:

• Epicor envisions data-driven future. Click here.

• Ace Hardware reports record Q3 revenues. Click here.

• Epicor expands in Canada. Click here.

• Do it Best names Jenna Myers divisional merchandise manager. Click here.

• Consolidation trend continues with acquisitions. Click here.

• Hardlines Distribution Alliance hosts Executive Planning Conference. Click here.

The Hardware Connection

Hires Doug Donaldson as Senior Editor

The Hardware Connection is expanding its staff, adding longtime hardware industry writer Doug Donaldson as senior editor.

Donaldson has written extensively about the hardware industry since 1999, visiting stores across the nation and interviewing more than a thousand retailers. A regular contributor to The Hardware Connection since 2012, Donaldson compiles the How’s Business section of the publication in addition to writing profiles of independent hardware retailers.

“We welcome Doug’s enthusiasm for independent hardware retailing, and he will help expand and evolve The Hardware Connection’s coverage of the industry,” says Chris Jensen, editor/founder/principal of The Hardware Connection. n

Click here to read more.

Jenna Myers

Doug Donaldson

UPCOMING EVENTS

JANUARY 2023

Atlanta International Gift & Home Furnishings Market

January 10-16, AmericasMart, Atlanta

House-Hasson Hardware “Think Spring” Winter Dealer Market

January 12-14, Gaylord Opryland Resort, Nashville, Tenn.

International Builders’ Show 2023

January 31-February 3, Las Vegas Convention Center, Las Vegas

National Hardware Show

January 31-February 3, Las Vegas Convention Center, Las Vegas

National Kitchen & Bath Show

January 31-February 3, Las Vegas Convention Center, Las Vegas

FEBRUARY

LBM Advantage Annual Buying Show & Shareholders Meeting

February 27-March 1, Coronado Springs Resort, Orlando, Fla.

Monroe Hardware Spring Dealer Market

February 10-12, Myrtle Beach Convention Center, Myrtle Beach, S.C.

Orgill Online Spring Buying Event

February 6-13

Orgill Spring Dealer Market

February 9-11, Morial Convention Center, New Orleans

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MARCH

Ace Hardware Spring 2023 Convention

March 13-16, Henry B. Gonzalez Convention Center, San Antonio

Blish-Mize Spring Customer Buying Market

March 16-18, Overland Park Convention Center, Overland Park, Kan.

Do it Best Spring 2023 Market

March 11-13, Orange County Convention Center, Orlando, Fla.

Hearth, Patio and Barbecue Expo 2023

March 11-13, Kentucky Exposition Center, Louisville, Ky.

LMC Annual

March 8-10. Charlotte, N.C.

NLBMDA Spring Meeting Legislative Conference

March 28-30, Hyatt Regency on Capitol Hill, Washington, D.C.

The Inspired Home Show 2023

March 4-7, McCormick Place, Chicago

True Value Spring Reunion

March 17-19, McCormick Place, Chicago

For a complete listing of calendar dates, click here.

HARTVILLE

HARDWARE TRANSFORMS IDEA HOUSE INTO GINGERBREAD HOUSE

Hartville Hardware in Hartville, Ohio, America’s largest independent home improvement store, has always been known for its extensive selection of holiday merchandise. This year the retailer decided to take the holiday spirit to another level.

Hartville Hardware has transformed its 1,800-square-foot Idea House, located right in the middle of the sales floor, into a spectacular, festive gingerbread house. Team members played the role of elves as they took common hardware products from around the store and used them to create

Middle right & left: The Hartville Hardware team scurried around like elves designing and decorating the gingerbread house.

Lower right: Gingerbread characters, which were custom designed from the store’s mill, take a gondola ride down the store’s main aisle.

Hartville Hardware transformed its Idea House into a gingerbread house.

a dose of holiday cheer. Paint buckets became gum drops while PVC pipe was converted into peppermint sticks.

“This Christmas, we’ve worked hard to create a memorable experience that the community can enjoy,” said Kelli Hill, Hartville Hardware marketing director. “It’s a labor of love, but watching our guests enjoy the transformation is simply magical.”

Click here and here to see videos of the gingerbread house.

RANDY’S DO IT BEST HARDWARE REOPENS AFTER FIRE

Randy’s Do it Best Hardware hosted a grand reopening event on Saturday, November 26, at their new store location in Mt. Jackson, Va. The previous Randy’s Hardware location, which had been a mainstay of the Mt. Jackson community for 70 years, was completely destroyed by an overnight fire on February 26, 2022.

After confirming that everyone was safe, the leadership team immediately began making plans to rebuild, committing their time and effort to maintaining the store’s legacy. Loyal customers informed the Randy’s Hardware leadership team about a local grocery store that would soon be closing permanently.

With help from the local community, the team transformed the former grocery store into a bigger hardware

Upper: The community came out to show their support for Randy’s Do it Best Hardware.

Lower: Randy’s Do it Best Hardware held a grand reopening for its store in Mt. Jackson, Va., after a devastating fire.

store than the one they lost, which opened its doors for business just 100 days after the fire with expanded product lines and categories to better serve customers.

The grand reopening event was hosted to show appreciation to the Mt. Jackson community for their continued support of the store, which is owned by the Andes and Herrick families. The event featured free food and drinks supplied by local supporters, door prizes, giveaways, product discounts and more.

This video provides more information about the store fire and their recovery efforts.

THE AUBUCHON COMPANY INTRODUCING

SELFCHECKOUT SYSTEM

The Aubuchon Company is introducing a self-checkout system and they have a class project to thank. Neal DeLowery, store projects and merchandising manager, developed, tested and executed multiple versions of customerdriven checkouts to create a dynamic shopping experience of convenience, choice, safety and speed.

The objective of DeLowery’s project for NHPA’s Retail Management Certification Program was to release payroll dollars from an unassisted customer task, which in this case is ringing the register, and reallocate these hours to various tasks throughout the company.

“Once the customer has arrived at the checkout, we are no longer adding value to the basket and the transaction has simply become a cost point of operations. By providing a dual checkout option, we can offer the consumer the choice they desire while still delivering world-class customer service outside of, and at the point of purchase,” says DeLowery. “By reallocating about 20 percent of our payroll spent as transactional time, we expect to see a return on investment in just under a year following execution.”

However, innovation does not come without risk. Self checkouts come with an increased potential for consumergenerated shrink through accidental

The design and build of the first hardware cabinet prototype for the Aubuchon Company’s self-checkout system.

or purposeful shoplifting. This is not a maybe, but a certainty, it is well documented that more shrink occurs at self checkouts than at cashier-driven checkouts. DeLowery is well aware of this, saying “Although around 80 percent of this shrink is unintentional, we will need to develop training and policies around handling these scenarios.”

The design and build of Aubuchon’s first self-checkout prototype has already been completed. These will be piloted in the company’s higher-volume locations that have the space to displace a register or have room to install an additional one. They plan to implement the first in-store self-checkout system by the end of 2023.

“As the costs of doing business rise, we need to be relentless about pursuing efficiencies and productivity. Self checkout is just one piece of the puzzle,” says DeLowery. “Shifting our focus back to the customer before they reach the point of sale will strengthen our goal to always offer world-class customer service.” n

BEHIND THE NUMBERS

$94.5 billion

Total U.S. retail losses related to shrink in 2021, up from $90.8 billion in 2020, according to the National Retail Federation’s (NRF) National Retail Security Survey.

1.4%

Average shrink rate for U.S. retailers in 2021, according to the National Retail Security Survey.

26.5%

Percentage increase in organized retail crime (ORC) incidents in 2021, with 8 in 10 retailers reporting that the violence and aggression associated with ORC incidents increased in the past year, according to the National Retail Security Survey.

37%

Percentage of shrink attributed to external theft, including organized retail crime, according to the National Retail Security Survey.

28.5%

Percentage of shrink attributed to internal theft/employees, according to the National Retail Security Survey.

69%

Percentage of retailers who indicated that in-store fraud had increased during the past year, along with 61.1% that indicated ecommerce fraud had increased, according to the National Retail Security Survey.