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Serving Hardware, Home Center & Building Material Retailers

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Become a Merchandising Master 44

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Gearing Up for the Industry’s Biggest Event 66

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VOLUME 212 • ISSUE 4 • APRIL 2017 • HARDWARERETAILING.COM

Gearing Up for the Industry’s Biggest Event 66

NEXT MONTH

Something for Everyone

he May issue of Hardware Retailing is the biggest issue of the year, and it’s one you won’t want to miss. Each May, NRHA honors its Top Guns, some of the best and most innovative retailers in the industry. This year, that award comes with a twist: We’ll be recognizing Young Guns, nextgeneration retailers who are leading the charge toward a successful future in the industry.

We’ll take a closer look at another big-box chain with our story about Target. Discover the ins and outs of this popular retailer, how Target competes in traditional retail and in e-commerce and what the company has planned for the future. Finally, we’ll shine the Category Spotlight on farm, pet and ranch with a look into the needs of the category’s niche customers.

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Headquarters Staff

2017 NRHA All-Industry Conference By the Numbers

PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton FEATURES EDITOR Liz Lichtenberger

136 N. Delaware St. #200, Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: www.nrha.org HEADQUARTERS STAFF PRESIDENT AND CEO Bill Lee COO Bob Cutter DIRECTOR OF FINANCE AND BUSINESS SERVICES David Gowan

MEMBER SERVICES AND COMMUNICATIONS COORDINATOR Hilary Welter, 317-275-9435, hwelter@nrha.org MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9419, kstokes@nrha.org MEMBER GROWTH AND DEVELOPMENT MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

9 on the future of

seminars focused independent retailing.

ASSISTANT EDITOR Renee Changnon ASSISTANT EDITOR Kate Klein ASSISTANT EDITOR Melanie Moul ASSISTANT EDITOR Chad Husted

awards ceremonies and presentations on the NRHA Village Stage.

SENIOR DESIGNER Lynnea Chom GRAPHIC DESIGNER Graeme Haase

COUNTLESS

GRAPHIC DESIGNER Kelsey Truex

opportunities to connect with retailers and channel partners.

WEB DEVELOPER Kevin Trehan

MEMBER SERVICES TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org

days of networking, programs and events in Las Vegas.

PRODUCTION SERVICES PRODUCTION MANAGER Nancy A. Vondersaar SALES AND PRODUCTION ASSISTANT Freda Creech

CIRCULATION CIRCULATION DIRECTOR Richard Jarrett

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES

About the Conference Held in conjunction with the National Hardware Show® in Las Vegas, May 9-11, the NRHA All-Industry Conference is a series of educational seminars and networking opportunities. Check out the story on Page 66 for more information. NRHA MISSION

NATIONAL SALES MANAGER Lowell Huffman

The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers.

NRHA CANADA

MIDWEST REGION MANAGER Tony Sarantakis, 404 Afton Circle, Barrington, Ill. 60010; 847-934-9515, Fax: 847-934-2494, tonytakis@aol.com

NRHA BOARD OF DIRECTORS

NRHA CANADA Michael McLarney, 528 Queen St. E., Toronto, Ontario, Canada M5A 1V2; +1 416-489-3396, mike@hardlines.ca

WEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, Ill. 60559; 630-234-3272, Fax: 847-934-2494, cmiller7288@gmail.com

CHAIRMAN OF THE BOARD James Cabirac, Kief Hardware, Cut Off, Louisiana

STATE AND REGIONAL ASSOCIATIONS

NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; Fax: 317-275-9403, jharper@nrha.org

EXECUTIVE VICE CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas

GREAT LAKES REGION MANAGER Bill Mancuso, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9424, Fax: 317-275-9403, bmancuso@nrha.org

FIRST VICE CHAIRMAN T.J. Comstock, Northwest Hardware, LLC, Billings, Montana

RETAIL LEADERSHIP INSTITUTE

PHONE 314-432-7511 FAX 314-432-7665

EXECUTIVE DIRECTOR-RETAIL LEADERSHIP INSTITUTE Scott Wright, 317-275-9417, swright@nrha.org

SALES/NRHA VENDOR PARTNER

DIRECTOR OF RETAIL OUTREACH Tom Marcum, 317-275-9430, tmarcum@nrha.org

MIDWEST HARDWARE ASSOCIATION John Haka, 2301 Country Club Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, or 97305 (UPS, FedEx); P.O. Box 17819, Salem or 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; Alaska, Idaho, Ore., Wash. SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; Ark., Kan., La., Mo., Neb., N.M., Texas

SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, Ind. 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00. Periodical postage paid at Indianapolis, Indiana, and additional mailing offices. POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2017 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

SECOND VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin THIRD VICE CHAIRMAN Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois DIRECTOR Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts DIRECTOR Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina DIRECTOR David Dishke, Grand River Home Hardware, Caledonia, Ontario DIRECTOR Steve Fusek, Fusek’s True Value, Indianapolis SECRETARY-TREASURER Bill Lee, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Adam Busscher, Picton Home Hardware, Picton, Ontario

HARDWARE RETAILING | April 2017

Contents APRIL 2017 | VOLUME 212 | ISSUE 4

MERCHANDISING

Make an Impression

T & M Hardware and Rental has six locations, each with a different layout and unique merchandising challenges. See how three locations find ways to master merchandising, regardless of the store’s shape, size or structural obstacles.

66 INDUSTRY EVENT

NRHA All-Industry Conference and the National Hardware Show® We’ve outlined all the must-see ceremonies, must-hear speakers and must-do happenings at this year’s event.

72 ASSOCIATION NEWS

Independence Matters NRHA’s chief operating officer, Bob Cutter, and the Paint and Decorating Retailers Association executive director, LeAnn Day, discuss the new alliance between these associations that support independent retailers.

Departments 06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 12 . . . . . . . . . . . . . . . . NRHA News 18 . . . . . . . . . . . . . . . . . . . . . Trends 24 . . . . . . . . . . . . . . . New Products 34 . . . . . . . . . . . . . . . . . . Checkouts 74 . . . . . . . . .Newsmakers/Calendar 78 . . . . . . . . . . . . . . . . . . Last Word

52 CATEGORY FEATURE

Core Category All-Stars: Part I There’s so much to show off that we need two issues to cover it all. Here, see Part I of the All-Stars, which includes the best in electrical, plumbing and lawn and garden, and find some ideas for your store. 4

HARDWARE RETAILING | April 2017

60 CATEGORY SPOTLIGHT

Solar Has Flare Learn how best-in-class retailer TreeHouse educates, sells and installs solar products for its customers. Also, gain insights into the evolution of solar technology and where it’s headed.

On the Cover Samantha Post, marketing manager of T & M Hardware and Rental in Harmony, Pennsylvania, works with her team to solve merchandising challenges every day at the business’ multiple locations . NRHA photo by Graeme Haase

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On the Web

CATEGORY SPOTLIGHT

The Future of Solar Power Think ahead to 2027—what will solar power look like? How will developments in the solar energy industry impact home improvement? Two experts weigh in on what’s going on with solar today and where the industry may be heading in the near future. Expert Q&A: Alexandra Habson, senior communications manager for the Solar Energy Industries Association, answers questions from Hardware Retailing about current growth statistics in solar energy and what these trends could mean. Visit TheRedT.com/seia-qa. Expert Opinion: Craig Lawrence, founder of Realization Ventures, says what he thinks about the future of solar power in small-scale and residential properties. Read more at TheRedT.com/solar-future.

CORE CATEGORY ALL-STARS

Check Out the Best in Class Core categories shouldn’t be an afterthought when it comes to merchandising. Looking for some ideas to spruce up your store? To view a photo gallery of creative and well-executed displays in plumbing, electrical and lawn and garden, visit TheRedT.com/all-star.

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is geared toward all levels of employees. Visit nrha.org/freetraining to download this month’s lesson, listed below. Infographic: Maintain Your Merchandising

Merchandising Maintenance Face: Turn products so the label faces front, so you make full use of the manufacturer’s packaging.

Does your staff know how to maintain effective merchandising? Download and post this infographic in the breakroom as an educational reminder.

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

HARDWARE RETAILING | April 2017

Beautiful products to inspire your customers.

Simpson Strong-Tie offers an eye-catching display in three sizes (2', 3' and 4') to increase visibility and sales of the new Outdoor Accents decorative hardware line. Featuring black powder-coated connectors and screws, Outdoor Accents provides both design elegance and structural strength, giving your customers the inspiration to build custom outdoor living structures. Visit strongtie.com/outdooraccents or call us at (800) 999-5099.

4' Display

Independent Thinking

Scholarships for Independent Scholars

“Our industry would not have this great program without Marcus’s leadership and dedication.

”

or those who may be interested in attending the North American Retail Hardware Association’s (NRHA) Retail Management Certification Program (RMCP), there are two new scholarships available. RMCP is a college-level educational program focused on developing the retail management skills of up-and-coming leaders in your business. This six-month management school includes business coaching and the planning and execution of a business improvement project designed to help young retailers think like business owners and entrepreneurs. So far, these business improvement projects have returned an estimated $6.5 million to participating companies. Sponsors of students overwhelmingly report a growth in business knowledge, retail management skills and confidence to lead among their graduates. The NRHA Board of Directors established two annual Marcus Moran Jr. Scholarships to recognize the contributions Marcus made in establishing RMCP. During his tenure as CEO of Aubuchon Hardware, Marcus saw the challenges our industry faces in attracting and retaining talent. He also recognized that we may already have employees with tremendous potential; people with ambition, intelligence and a love of the hardware industry, but who need basic training to reach their full potential. Marcus approached his trade association with the idea of creating the management school. But he didn’t just present a great idea and then leave. Marcus committed to recruiting other independent retailers to design the program, loaning talent to establish the curriculum and sending students through the program. Today, Marcus and one of his key employees are still heavily involved as instructors.

Using Your Trade Association as a Tool Many independent retailers spend too many resources developing programs on their own. It’s important to remember that you and your fellow independent retailers make up your trade association. NRHA exists to bring independent retailers together to advance the industry, and that can be done more effectively through a collaborative effort. Your professional staff listens to your concerns and brings you together to develop programs you want. NRHA listens through its retailer board, market research, conferences, meetings and direct conversations with retailers like Marcus.

Applying for the Marcus Moran Jr. Scholarships We will announce the first Marcus Moran Jr. scholarship recipients during the NRHA Young Retailer of the Year Program at the National Hardware Show® in May. Our industry would not have this great program without Marcus’s leadership and dedication. His deep respect and concern for his fellow independent retailers is evident in his work with this program. We are proud to honor him with these scholarships in his name. For information about these scholarships, RMCP or NRHA’s other educational and leadership programs, see our story on Page 14, or contact Scott Wright, executive director of the Retail Leadership Institute, at swright@nrha.org.

Bill Lee, President and CEO

blee@nrha.org

HARDWARE RETAILING | April 2017

Taking Care of Business

Don’t Underestimate First Impressions

“While keeping a store clean is incredibly important, cleanliness is just kind of the cost of admission if you want to be a successful retailer today.

”

hroughout my 20-plus years within the home improvement retailing industry, I’ve seen more than my share of innovation, originality and highly creative retail practices. There is no “demographic” for where this type of high-performance retailing takes place, either. It’s not just the larger independent chains that drive innovation. In fact, I can cite numerous examples of smaller, single-store operators engaging in leading-edge retailing. But if I may speak bluntly, there is still a relatively large contingent of retailers within this industry who might run good operations, but aren’t quite keeping up with the evolving retail landscape. In this month’s issue, we dedicate quite a bit of the conversation to merchandising best practices. We chose to do this because merchandising and overall store presentation both play critical roles in how customers perceive your operation. You don’t have to be involved in retailing for long to know that a junky-looking, ill-arranged and poorly merchandised salesfloor has the potential to repel customers in droves. The challenge with this however, is that there is no real overall consensus as to what a “well-merchandised” home improvement store looks like. As evidence, I will point to the fact that I have often spoken with retailers about their store presentation and one of the first things they mention is, “We really focus on merchandising; we keep the store really clean.” While keeping a store clean is incredibly important, cleanliness is just kind of the cost of admission if you want to be a successful retailer today. Think of it this way—the first time a customer walks into your store is kind of like a first date. You want to make a good impression and show your date how easy you are to get along with. Then, throughout the course of your relationship, you want to reinforce these first impressions and show your new partner (customer) all the reasons they should choose you before any other options. Now, I don’t think too many of us, when asked about dating, say, “I make a great first impression whenever I go on a date. I’m always clean.” It’s kind of a given, right? I know hardware stores in general can have the reputation in consumers’ eyes as being those dusty old buildings with the thick patina on the floors and creaky old fixtures. So, keeping a store clean and well-lit is a great first step. But it’s also important to note that today’s consumer isn’t just comparing your operation to other old, dusty hardware stores. They are comparing your store to Nordstrom, Target, Bass Pro, Home Depot and just about every other retailer they visit. This is especially true of today’s younger shoppers, who are rapidly becoming the next generation of homeowners you will NEED to cater to if you want your business to survive in the decades to come. As you read through this issue and hopefully take inspiration from some of the merchandising tips we provide, I encourage you to take a look at your own operation and try to find ways to make the best possible impression on your customers. And for cripe’s sake, if you’re going to go on any dates… spruce yourself up a bit.

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | April 2017

NRHA News

NRHA Honors Eight Young Retailers

ight home improvement retailers can now call themselves NRHA Young Retailer of the Year honorees. The recognition program, now in its 21st year, identifies and honors the next generation of aspiring independent home improvement retailers and recognizes individual achievements of retailers age 35 and younger from the U.S. and Canada. Winners are chosen based on criteria such as career accomplishments, community involvement, hardware industry education and extracurricular activities. The honorees represent three categories, including stores with annual sales under $2 million, stores with annual sales over $2 million and retailers operating multiple locations. The 2017 honorees are listed below.

Under $2 Million in Annual Sales •

Reed “RJ” McDaniel Jr. — vice president, co-owner, B&B Hardware, Milan, Illinois

Over $2 Million in Annual Sales • • •

Joseph Franquinha — owner, Crest True Value Hardware and Urban Garden Center, Brooklyn, New York Bobby Heuser — president, Heuser Ace Hardware, Bluffton, South Carolina Jackie Sacks — owner, Round Top Mercantile, Round Top, Texas

Multiple Stores • • • •

Camille Gibson — general manager, Mark’s Ace Hardware, Tucson, Arizona Jarrod Haines — store manager, Buchheit, House Springs, Missouri Jason Plummer — vice president, R.P. Lumber Co., Inc., Edwardsville, Illinois Matthew Payzant — general manager, Payzant Home Hardware Building Centre, Lower Sackville, Nova Scotia

“Each one of the Young Retailer of the Year honorees embodies what it means to be an extraordinary retailer,” says Bill Lee, NRHA president and CEO. “These honorees have reached impressive professional milestones, are strong leaders in their communities and are committed to moving the independent home improvement industry forward. We’re thrilled to be honoring these individuals.” Sponsors of the 2017 Young Retailer of the Year program include the Apex Tool Group, Delta Faucet Co., Fluidmaster, Intertape Polymer Group and Midwest Fastener Corp. The Young Retailer of the Year banquet will be May 8 at the Renaissance Las Vegas Hotel, prior to the opening of the NRHA All-Industry Conference and the National Hardware Show® in Las Vegas. For more information on the awards program and conference, please visit nrhaconference.com.

HARDWARE RETAILING | April 2017

“Each one of the Young

Retailer of the Year honorees embodies what it means to be an extraordinary retailer. —Bill Lee, NRHA president and CEO

”

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NRHA News

NRHA to Award Two Marcus Moran Jr. Scholarships for Retail Management School

NRHA president and CEO Bill Lee (left) presents Marcus Moran Jr., former Aubuchon Hardware CEO, with a plaque at an RMCP function.

RHA is awarding two scholarships to attend the fall 2017 class of the NRHA Retail Management Certification Program (RMCP) in the name of one of the program’s greatest supporters—former Aubuchon Hardware CEO Marcus Moran Jr. The Marcus Moran Jr. RMCP Scholarship program includes two half-tuition scholarships valued at $6,250 each. The scholarships will be awarded annually to two retailers who embody the values exemplified by Moran. Such characteristics include a pioneering entrepreneurial spirit, a dedication to growing their business, a commitment to the welfare of their employees and a willingness to work together with others in the industry to advance the cause of the independent retailer. “Marcus has been such a huge supporter of the program since its inception in 2013,” says NRHA president and CEO Bill Lee. “Without the unflagging leadership and support of Marcus and the Aubuchon Hardware family, the NRHA Retail Management Certification Program would not exist today. It’s only fitting that we honor Marcus for all of his contributions to this program.” To apply for one of the scholarships, go to nrharmcp.com or contact executive program director Scott Wright at 317-275-9417 or swright@nrha.org. The application deadline is April 21.

NRHA Partners with ZipRecruiter, Provides Recruitment Services

hink about the top three business challenges you are currently facing. Is finding dedicated, quality employees one of them? To help you find a solution, NRHA and ZipRecruiter have partnered to offer independent retailers access to employee recruitment resources. ZipRecruiter helps business owners find great employees by allowing companies to distribute job postings affordably. Since 2010, the recruitment service has helped more than 1 million businesses find quality employees through job boards, email alerts, mobile apps and a quality job search algorithm. Through this new partnership, NRHA members will receive a 35-percent discount off any of ZipRecruiter’s three basic plans. Additionally, retailers will be provided premium job placement on more than 200 job boards. ZipRecruiter is the latest organization to join NRHA’s growing business services offering, which provides

HARDWARE RETAILING | April 2017

retailers with alternative and affordable solutions to common business needs. NRHA’s already-established suite of business services includes partnerships with companies such as Custom Benefits Insurance Group Inc., Member Insurance, Payment Alliance International, RxCut Prescription Savings Cards and Tilson HR. “Finding high-quality talent is a challenge our members continue to face,” says Dave Gowan, NRHA director of finance and business services. “The resources provided by ZipRecruiter make this program an essential tool to support our members in solving this issue. Providing employee recruitment services aligns with the association’s mission to help retailers become better and more profitable.” To learn more about the ZipRecruiter program, visit ziprecruiter.com/nrha, or contact Scott Berens at scott.berens@ziprecruiter.com or 424-285-5332.

NRHA News

2017

You’ve Got Mail: Be the First to Get NRHA’s Newsletter

aybe you know NRHA, but did you know that the association comes out with new training every month, launched two new business services this year and has leadership training scholarships available? NRHA is making efforts to make sure you’re always in the loop, so you don’t miss out on opportunities for business improvement. During mid-April, the association is launching a monthly digital newsletter that will deliver the latest NRHA news to your inbox. Along with association updates, the newsletter will deliver important information about business services, training, education opportunities and other ways members can engage with NRHA. To subscribe, visit TheRedT.com/subscribe. If you already receive NRHA and Hardware Retailing emails, you will automatically receive the newsletter.

We’ve got you covered

HARDWARE RETAILING | April 2017

The CODB Study Turns 100!

RHA has officially been helping retailers determine their financial standing in the industry for an entire century. This year marks the 100-year anniversary of NRHA’s Cost of Doing Business Study. This industry benchmarking tool allows independent hardware stores, home centers and lumberyards to compare their financial performance against industry averages by providing retailers with metrics in sales, profits, transaction size and more. The association is now compiling data for 2017, and this is your chance to participate and be part of the 100th study. What’s in it for you? Study participants receive a free Personalized Financial Analysis, which includes composite financial statements, financial ratios, a strategic profit model and a what-if scenario tool. This in-depth analysis provides a resource for you to compare your store’s financial performance to high-profit and typical independent home improvement stores. For information on how to participate, visit TheRedT.com/codb2017.

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May 9–11, 2017 Las Vegas Convention Center

What would you do with $100,000 to rethink the future of your store? Find out how YOU can win at

NATIONALHARDWARESHOW.COM/REIMAGINERETAIL

Trends Spending Time on the Kitchen Homeowner spending on kitchen upgrades is on the rise, according to a recent study from Houzz, the online home improvement community. In November, Houzz surveyed more than 2,700 homeowners who were in the midst of a kitchen renovation project, were planning one or had recently completed one. Nearly 90 percent of the survey respondents hired professionals to do their remodels. Of those people, more than half hired general contractors and a quarter of them hired a kitchen designer. Overall, they also spent more in 2016 on their projects than participants in the same study the year prior. The top major features homeowners chose or planned to upgrade in their kitchen renovations included countertops, backsplashes and sinks.

Applied to Retail Even if your pro customer base is small, you can work with remodelers and designers to build relationships with homeowners who are planning projects. Getting to know pros can be beneficial to your business and theirs. Do the pros you know understand the extent of your product offering? They may rely on your business for plumbing parts, but might not realize you can order cabinet doors and specialty knobs that their customers can’t find at the big-box stores. Find ways to educate your professional customers on what you offer, but further nurture your relationships with them by referring your DIY customers to them. If you don’t know many contractors or designers, brainstorm ways to connect with them so you can attract them as customers, but also use them as resources when your everyday shoppers ask for referrals.

Major Features Homeowners Upgrade During Kitchen Remodels Homeowners surveyed who completed, are planning or are currently working on renovations chose to do the following projects:

90%

95%

Countertops

Backsplash

89% Sink

88% Faucets/ Plumbing

86%

Wall Finish

84% Lighting Fixtures

Homeowners Who Hired These Pros for Kitchen Remodels

54% 25% General Contractor

Kitchen Designer

14% Interior Designer

Source: 2017 U.S. Houzz Kitchen Trends Study

HARDWARE RETAILING | April 2017

Willis Qualheim Qualheim’s True Value

Sam Ransdell Burney True Value Hardware

Ryan Sower Lewis Mercantile Company

Bob Ward Morrison True Value Hardware

THE VALUE OF BEING THE BEST IN TOWN

Richard McMaster Steele’s Hardware

CONGRATULATIONS TO THE 2016 BEST HARDWARE STORE IN TOWN WINNERS. Tom Sato Wilton Hardware

Our True Value® family is proud to celebrate the accomplishments of thirteen Members who set the gold standard for retail success. They’ve consistently grown their businesses to become the

Walter A Taylor Kula Hardware & Nursery

Best Hardware Store in Town.

Jim Capin Green Valley True Value

The power of our national brand and best-in-class retail programs are why these Members chose True Value Hardware above the rest. We value their independence and support their success. Join True Value and become a member of our family,

Christopher Young Ed Young’s Towne Hardware

by calling 1-888-291-7229 or visiting TrueValueCompany.com. Lloyd Distant Jr. Hardware & Lumber, Ltd.

David Otto Handyman True Value Hardware

Please visit TrueValueCompany.com/Open-A-Store.

Jacob Kanis Nelson True Value

Brad Szymanski Anchorage True Value Hardware

Trends

Existing-Home Sales

Fourth Quarter Looks Good Across Industries

The Purchasing Managers’ Index is the only leading economic indicator included in this report, and its year-over-year growth means the manufacturing sector is still poised for growth. In the fourth quarter, manufacturers in many industries were expanding production to meet an increasing demand for products, according to the Institute for Supply Management, which conducts the study.

Existing-Home Sales (in millions)

The year 2016 ended on an economic upswing for the U.S., with housing, consumer confidence and the manufacturing sector all trending positively in the fourth quarter.

At a seasonally adjusted rate. 6.0

Housing starts and consumer confidence both exhibited double-digit growth for the quarter. In addition, home prices went up, and existing home sales experienced an uptick.

5.5

5.0

4.5

4.0

J J A Months

2016

Manufacturing and Consumer Confidence Show Growth Economic Metrics

Definition

Housing Starts (in thousands)1

The per-month average number of new residential single-family and multifamily homes that have begun construction, using seasonally adjusted rates.

Consumer Confidence2

The level of optimism that consumers express about the state of the economy, shown through saving or spending money.

Existing-Home Sales (in millions)3

The number of completed sales involving single-family homes at an adjusted annual rate.

Existing-Home Price (in thousands)3

The average of the median prices for all existing housing types.

Purchasing Managers’ Index (PMI)4

The health of the manufacturing sector based on measuring new orders, inventory levels, production, supplier deliveries and the employment environment.

Percentage Change

10% 1,249

96 107.2

11.7%

5.2 5.6

7.7%

$221 $233

48.6 53.3

Source: U.S. Census Bureau 1, The Conference Board 2, National Association of Realtors 3, Institute for Supply Management 4

HARDWARE RETAILING | April 2017

Q4 2016

1,135

All numbers are derived from October, November and December data.

Q4 2015

5.4%

9.7%

NO Added Synthetics NO Added Chemicals NO Artificial Flavors

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All our seed is barrier packaged with HARVEST FRESH LOCK™ to seal in freshness and lock out bugs!

In the Warehouse

1-877-426-8882 • coleswildbird.com

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OTHER TIMES IT SIZES YOU UP AND NODS.

Not just any product can be a Cat® product. And not just any business can be a Cat Home & Outdoor Power Authorized Sales and Service Center. We’re entering the portable generator market because we believe, as the global brand synonymous with power and durability, we’re uniquely suited to build a generator like no other. We’re out to be the best in the industry and we’re looking for partners who share that attitude. If you think you have what it takes. If you’re prepared to be an extension of the Caterpillar legacy – one of durability, reliability and raw power – we’d love to hear from you. Visit cat.com/jointheteam.

RP5500

RP7500 E

RP6500 E

© 2017 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow”, the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

RP3600

New Products

“The Fifty/Fifty bottles are

popular with all age ranges, and they’ve been flying off our shelves. The company is great to work with and shows they care, which is refreshing.

”

—Rhonda Devorkin, Ace Hardware Big Sky

1 “Cutlery from Shun Knives

is our elite line of knives. We market to chefs and sous chefs, and they make great gifts. I use them and really enjoy cooking with them.

”

—Rhonda Devorkin, Ace Hardware Big Sky

1. Stainless Steel Insulated Bottles

2. Starter Knife Set

The Fifty/Fifty stainless steel, double-wall, vacuum-insulated bottles from Icy-Hot Hydration, LLC are specifically designed to keep beverages ice-cold for up to 24 hours and hot for up to 12 hours. The high quality 18/8, food-grade stainless steel ensures there is no leaching or requirement for any kind of liner, and that they will not retain any kind of odor or taste. Double-wall vacuum technology prevents condensation and keeps the exterior at a comfortable temperature.

The Shun Sora 2-Piece Starter Set includes the Shun Sora 8-inch Chef’s Knife and the 6-inch Utility Knife. The chef’s knife is a do-it-all knife that can be used any time while cooking. The utility knife is designed to handle all medium-sized kitchen tasks. These knives are part of the Shun Sora line and feature Shun’s proprietary Composite Blade technology to combine a VF10 san mai cutting edge with a Japanese 420J stainless steel upper.

Icy-Hot Hydration, LLC 800-849-5185 or www.fiftyfiftybottles.com

Kai USA LTD 800-325-2891 or www.kaiusaltd.com

HARDWARE RETAILING | April 2017

RETAILER PICKS These four products were selected by retailers like you! Share your favorite products by contacting Renee Changnon at rchangnon@nrha.org.

“When we introduced the

humorous oven mitts by Blue Q in our store, we sold through our first order almost immediately. They’re a lot of fun and get the job done!

”

—Sharon Hughes, Intown Ace Hardware

4 “When I bought my first

Nomad, it was the versatility that drew me in. It fits into tight spots, the suspension seat is incredible, the side shifter is awesome and the hydraulic system responds nicely.

”

—Jesse Steere, Shirley’s True Value Hardware

3. Funny Oven Mitts

4. Compact Lift Truck

Oven Mitts from Blue Q are a fun yet practical product. They are insulated and made of 100 percent cotton. Each pair features a picture with a funny saying next to it, like “I’m not bossy. I’m the boss.” Additionally, 1 percent of the sales of the product are donated to hunger relief programs throughout the world.

The Platinum II Nomad® series lift truck features the flexibility to use the compact lift truck both indoors and outdoors. Built on a smaller frame, typical for warehouse or other indoor applications, UniCarriers’ exclusive Nomad rides on solid pneumatic tires, which allow an indoor truck to traverse outside on paved surfaces. Nomad lift trucks maintain high capacity, making them the ideal solution for handling material between inside operation and outside storage facilities.

Blue Q sales@blueq.com or www.blueq.com

UniCarriers Americas Corporation 815-568-2563 or www.unicarriersamericas.com

April 2017 | HARDWARE RETAILING

New Products

5 6 7 8 5. Bug Screening Mesh

7. Hand Sander

Sponsored Product

The Hand Sanding line from Festool is available in sheets, blocks, sponges, rolls and pads. The line was developed with the principles of machine abrasives, as they provide enormous material removal capacity and a long service life. The hand sanders can be cleaned to allow for multiple uses, and the foam backing allows each piece to be adapted to the workpiece. The backing also ensures a uniform surface quality.

The Aluminum Screen for Tiny Insects from Phifer, Inc. features a tighter weave construction than standard aluminum screening. It provides protection from insects, including gnats, black flies and more. The screen provides excellent visibility and is perfect for window, door and screen porch applications. It is ideal for DIY screening jobs or retailers whose customers are seeking premium solutions to stop even the most miniscule bugs. Phifer Inc. 800-633-5955 or www.phifer.com

6. Geometric Light Frame

Festool USA 1-888-337-8600 or www.festoolusa.com

8. Reversible Jaw Wrenches

The Diamond Pendant Light Frame from Kikkerland can add a lighting element to any room. It has an industrial, geometric look that makes a statement. The light frame fits all of the other pendant lamps in the Kikkerland lineup. Lightbulbs are not included.

Channellock, Inc. has introduced a new line of reversible jaw wrenches. The new reversible-jaw adjustable wrenches offer a tight grip. The greater jaw capacity is designed for larger nuts, bolts and pipes, and the measurement scales help to size nut, pipe and tube diameters. The reversible wrenches come in four lengths, ranging from 6 to 12 inches.

Kikkerland Design 212-678-2250 or www.kikkerland.com

Channelock, Inc. 800-724-3018 or www.channelock.com

HARDWARE RETAILING | April 2017

Garden Discovery is yours. IGC is the World’s Largest Trade Show & Education Event for Garden Goods!

Product Scouting & Facetime with Garden Vendors Are Yours in 2017 When you’re at the Independent Garden Center Show, you’re at the world’s largest show for garden goods & plants. You’ll find everything you need for your store. And this year, we’re adding even more excitement! Specially dedicated New Show Zones for your shopping and order-writing benefit: • New Product Zone - Get your hands on the hottest new products that will distinguish your mix. Vote for your favorites - the winners will be announced at the show. • New Plant Zone - Check out the latest plant introductions and vote for your top picks - the winners will be announced on-site. • New Vendor Zone - Get to know vendors new to the garden & plant marketplace. These companies have never exhibited at the IGC Show before - and they’re excited to work with you. • SHOW SPECIALS! - Save money on the new and proven products you scout all across the Free Concert Tuesday Blue …yster Cult, Live! trade show floor from the many vendors offering order-writing savings. At IGC Show 2017, you’ll brought to you by your friends at discover so many new ways to wow your customers with your one-of-a-kind product mix & “aha” moments guaranteed. One of Three Free IGC Show Keynotes First Look at International IGC Retailer‘Think Tank’ Results with John Stanley IGC EXCLUSIVE! What top garden centers worldwide are saying indies will look like in 2020, what’s hot on the horizon, engagement marketing that speaks to Millennials and more.

The Must-Attend Event of the Year August 15-17 | Navy Pier, Chicago RIGHT BEFORE ACE FALL • AUG 17-19

www.IGCChicago.com | Trade Show, Keynotes, Conference Register today & book your top-choice show hotel. The Hyatt is back!

New Products

9 9. Dryer Balls

10. Forward Action Stapler

The Honey-Can-Do 2-Pack Dryer Balls give users a natural, chemical-free solution for soft, wrinkle-free clothing. Perfect for use on infant clothing or individuals with allergies, the dryer balls won’t leave behind residue that can be harmful to a user's dryer or sensitive skin. The dryer balls help decrease drying time by lifting and separating fabrics, which improves airflow. This product is great for the environment and is cost effective. This set of two dryers balls will soften up to 1,000 loads of laundry.

The TruTac Forward Action Stapler is designed to handle anything from repairs and upholstery projects to home decor and crafting. The stapler is easy to hold and to use. The easy-to-grip design operates the same way as a typical stapler. The forward stapler allows for precise control.

Honey-Can-Do International 708-240-8100 or www.honeycando.com

HARDWARE RETAILING | April 2017

Arrow Fastener Company 800-776-2228 or www.arrowfastener.com

12 11 11. Water Mark Remover Cloth

12. Dust Barrier

The Water Mark Remover reusable cloths erase marks on wood caused by water, alcohol and heat while also eliminating minor blemishes and surface scratches from wood. It removes latex paint and most permanent marker stains, while also restoring the wood without stripping the finish. It can also be used to polish metal and chrome. The cloths are made in the USA.

The ZipWall® Dust Barrier System keeps dust contained to the worksite during construction, remodeling and renovation. Spring-loaded poles take seconds to set up and save hours on every job. Dust barrier accessories create entryways, cover existing doors, seal without tape and help contractors meet any dust barrier installation challenge.

Guardsman Products 888-777-8842 or www.shopguardsman.com

ZipWall LLC 800-718-2255 or www.zipwall.com

New Products

Business analytics leading to Growth

13. Grill-Top Pizza Oven Replicate a traditional wood-burning pizza oven using a charcoal grill. The PizzaQue kit converts a grill into a pizza oven in minutes. The kit allows a grill to reach cooking temperatures of up to 900 degrees. The cordierite baking stone within the kit absorbs and evenly distributes heat, eliminating hot spots. It includes a folding aluminum pizza peel to easily transport pizzas to and from the grill.

INTRODUCING

A cloud-based business management system for hardware and home centers. Knowledge is power. With the option of real-time business statistics, optimized inventory, and sales patterns, you can decide when it’s time to add another product line, employee or new location. Growth, simplified.

The Companion Group 510-597-3500 or www.companion-group.com

14. Drywall Screw Setter

POINT OF SALE

INVENTORY

PURCHASING

MOBILE

ACCOUNTS RECEIVABLE

EDI COMMUNICATIONS

REPORTING

(EM)POWERING YOUR HARDWARE BUSINESS Contact us today for a Demo! 800.588.5128

info@ecisolutions.com

ecirocksolid.com

The Montana Brand 2-in-1 Drywall Screw Setter provides double-duty functions for speed and convenience. The modular drive accessory works as a drywall screw setter and a 3-inch magnetic bit holder. Made in the USA, the product countersinks screws accurately in drywall, particle board and plywood. Other features include a spin-free screw setter sleeve, a magnetic bit and fastener retention and 1/4-inch quick-change shank. Montana Brand Tools 888-809-5673 or www.montanabrandtools.com

HARDWARE RETAILING | April 2017

16 Jig Saw Blades 15

Your name depends on ours...

16 15. Metallic Floor Coating RockSolid Polycuramine Metallic Floor Coating delivers industrial-grade, high-performance coatings for garage and interior living spaces. This flooring is 20 times stronger than traditional epoxy floor coatings. It’s low odor, VOC-free and has a 24-hour drive-on times. The self-leveling formula provides ultimate protection from hot tire pickup and daily wear and tear. It comes in an easy-mix burst pouch, which makes application simple. Rust-Oleum Corporation 866-765-4474 or www.rustoleum.com

16. Portable Solar Charger The DUO-Flex2 13 Watt Small Solar Panels feature multiple innovations that offer users the most solar power and versatility of any portable solar charger. With multiple configurations, including vertical, horizontal, L-Shape and V-Shape solar panel configuration in a lightweight, durable, weather-resistant design, users will never be without a charge. The DUO-Flex2 can charge portable battery packs or any USB-chargeable device. Kicker Power Corp. info@kickerpower.com or www.kickerpower.com

Innovation Rules starrett.com April 2017 | HARDWARE RETAILING

New Products

17 18

17. Universal Mobile Base

18. Screw-Feeding Magazine

The Universal Mobile Base PM-1100 is a custom mobile base that can fit any size machine by adding cut-to-size plywood. The PM-1100 hardware has a 400-pound weight capacity and can be an accessory for all stationary power tools. These tools include table saws, band saws, drill presses, woodturning lathes, jointers and workbenches. It includes 3-inch swivel casters, corner brackets and mounting hardware, locking foot levers and adjustable leveling feet.

The Milwaukee Collated Magazine is a new accessory designed for use with the M18 FUEL™ Drywall Screw Gun. The magazine automatically feeds collated screws into the screwgun. The accessory features a tapered nose design to provide close access to tight corners and is compatible with all major collated screw brands up to 2 inches. Featuring length and depth adjustment, a strip insert guide and a ratcheting mechanism, it is designed to feed screw strips smoothly. The unit features eight easy-lock positions for best access in various orientations.

Affinity Tool Works, LLC. 866-588-0395 or www.affinitytool.com

Milwaukee Tool 800-729-3878 or www.milwaukeetool.com

SELF-FUSING SILICONE TAPE IRON GRIP® Silicone Tape is a self-fusing, repair tape that conforms to any surface while providing a water-tight seal. Silicone Tape creates a chemical, moisture-resistant barrier that fixes leaky pipes, hoses and insulates frayed electrical wires. It is easy to remove, leaves no sticky residue and protects from corrosion. Ideal for marine, automotive, plumbing and household applications, plus many more!

SEALS • PROTECTS • REPAIRS • INSULATES • 700 PSI • -85°F to 500°F • 300% Stretch • Insulates up to 8,000 volts

Repairs/insulates electrical wires

Repairs loose or leaky plumbing

Creates a firm grip on handle

i tape with

HARDWARE RETAILING | April 2017

888-474-8273 | info itape.com

Wrap hoses for an airtight seal

19 19. Pest Blocker

20. Specialty Greases

Touch n Foam’s new Mouse Shield Foam Sealant + Blocker is designed to protect homes from pests and air leaks. Formulated with an EPA-registered pesticide to block mice, pests and drafts, Mouse Shield is engineered to be tack-free in 15 minutes and fully dry in four hours. Use it to fill gaps and voids in basements, crawl spaces, attics, garages, under sinks, around pipe and electrical penetrations, or anywhere pests or drafts can enter living spaces.

The WD-40® Specialist® Greases are a family of solutions for automotive, construction and farming professionals dealing with a variety of specialized lubrication challenges. The line includes Superior Performance True Multi-Purpose Grease, Heavy-Duty High Temperature Grease, Heavy-Duty Extreme Pressure Grease and Marine-Grade Water Resistant Grease. The products can be used interchangeably in spaces, since they won’t cause cross-contamination issues that compromise performance and effectiveness.

Convenience Products 636-349-5855 or www.touch-n-foam.com

WD-40 Company 888-324-7596 or www.wd40specialist.com

Checkouts COMMUNITY RELATIONS

When Hardware Meets Art

t Crest Hardware in Brooklyn, New York, creativity and art are part of the store’s culture. In addition to being a destination for all types of home improvement items, the store is home to the annual Crest Hardware Art Show, where shoppers see artwork from as many as 300 local artists scattered throughout the store. So when owner Joe Franquinha attended the True Value Fall Reunion in Denver last year, it’s no surprise he was intrigued by an exhibition at the Reunion by artist Rachel Lussier, titled “The Hardware.” Lussier, who lives in Connecticut, created nearly 100 paintings featuring everyday hardware items. She drew her inspiration and created the paintings in Lakeview True Value Hardware in her hometown of Battle Creek, Michigan. At various times throughout the past few years, she set up her easel in the store and painted among the activity of the store’s day-to-day business. “In the store, I realized I had inadvertently placed myself with a bunch of like-minded people. Just as artists use their hands to create, people coming into a hardware store are working with their hands as well,” she says. “We spend so much of our lives in front of screens and electronic devices

that we need to be reminded of the value of working with our hands. ‘The Hardware’ series of paintings reflects my preoccupation with objects designed for the human hand.” Franquinha invited Lussier to display her work at Crest Hardware, and the exhibit took place this past February. He gave her the entire front portion of the store, where she was able to display nearly 90 percent of the total collection. “The exhibit has made for some great dialogue with customers,” he says. “It stops people in their tracks and breaks up the monotony of another shopping trip. Creativity and community are the backbone of our store. We do a number of events throughout the year that highlight artists and promote community, including the Crest Fest art and music festival that draws more than 5,000 people on opening day,” he says. “We were honored to showcase Rachel’s work and bring it into the type of setting that inspired it in the first place.”

To kick off an exhibition for “The Hardware,” Joe Franquinha of Crest Hardware in Brooklyn, New York, scheduled an opening reception to coincide with events at neighboring locally owned businesses.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising, special events or unique advertising, we cover it here. Have an idea? Contact Liz Lichtenberger, llichtenberger@nrha.org, to have your story considered for publication.

HARDWARE RETAILING | April 2017

style.

speed. limitless options. same day shipping. With over 1000 possible combinations of finishes, knobs, levers and roses, Schlage offers a decorative trim style to match every taste. HSI is proud to offer the full line of Schlage’s decorative trim options. And we’re proud to say we ship every Schlage order placed by 5PM EST the same day. This is how wholesale is supposed to work.

this is hsi. See all the options at hardwaresuppliers.com/decotrim

800-334-5625

hardwaresuppliers.com

Checkouts

EMPLOYEE ISSUES

Retailer Extends Employees a ‘Helping Hand’

ndependent home improvement retailers are committed to customer service and strong product knowledge. They’re also committed to their associates, who provide that service and knowledge to customers. Westlake Ace Hardware, while never wavering from its commitment to its customers, has taken another look at how to best serve its associates. In February, Westlake Ace announced Helping Hands, a 501(c)(3) charity independent of Westlake designed to help company associates in times of need. Helping Hands can assist employees in any of Westlake’s 98 stores across eight Midwestern states with funds donated by their co-workers. Under this system, co-workers can pitch in to make sure the people they work alongside are secure in the worst of situations, such as illness in the family or damage to an employee’s home, and it goes to the core of the company’s goals and foundation, says Curt Sparks, Westlake’s human resources manager, culture and values. “The goal truly is to have associates helping associates. We talk in terms of the Westlake family, and it’s made clearer what through Helping Hands what that means,” Sparks says.

“We want to take care of our

associates just as they take care of our customers.

”

—Curt Sparks, Westlake Ace Hardware

The program is still in its infancy, but the enthusiasm by Westlake employees is already noticeable, he says. The company previously offered payroll deductions to allow employees to contribute directly from their paychecks to other charities, such as the Children’s Miracle Network, but the opportunity to donate into a charity designed for their own co-workers has sparked even more excitement. “This is a way to provide a service for those in need, and in this way, it’s members of the Westlake family helping their own family,” says Jenna Bobrukiewicz, secretary of Westlake Helping Hands and legal services manager for Westlake Ace Hardware. The charity was established separately from Westlake’s corporate structure, with its own board of directors. This arrangement means Helping Hands is better able to prioritize applications for grants, Bobrukiewicz says, and make sure funds are being used to maximum benefit. The program allows associates to apply for grants from the charity, which are then reviewed by the board to determine if certain criteria for aid are met. How much aid to appropriate is determined on a case-by-case basis. For Sparks, Helping Hands is a real-world extension of a corporate culture that he has often spoken about. “I get to talk about core values, and this is us showing our core values in a very tangible way,” he says. “It really does make me proud. “We want to take care of our associates just as they take care of our customers,” he says. “We back it up with money and action. It says we really do care.”

An application form for Westlake Ace Hardware’s Helping Hands charity is filled out alongside the charity’s logo. Helping Hands is designed to aid Westlake employees in assisting their co-workers during times of hardship.

HARDWARE RETAILING | April 2017

Home control at your ﬁngertips Designed for indoor and outdoor use, allowing control from home or on the go. • Add up to 12 smart switches - to turn on the front porch lights at dusk for security or automate the living room lamp for convenience • Simple On-Off function • Intuitive to program, easy to set • Works from your home, ofﬁce or on the road using a Wi-Fi™ or mobile internet connection

INDOOR APPLICATIONS

Indoor Wi-Fi™ Switch

Indoor Wi-Fi™ Wall Tap

Indoor Wi-Fi™ In-Wall Switch

Indoor Wi-Fi™ Surge Protector

OUTDOOR APPLICATIONS

Outdoor Wi-Fi™ Switch

Outdoor Wi-Fi™ Yard Stake

Outdoor Wi-Fi™ Smart Box

N O H U B R EQ U I R E D • N O M O NTH LY CHARG E S • F R E E AP P!

An affordable smart solution!

Checkouts

CUSTOMER RELATIONS

Rooting Up Good Times at Buchheit

t’s not uncommon to hear of a store having a dog or cat that serves as its mascot. But what about a pig? That’s exactly what customers at Buchheit can find whenever they walk into any of the store’s eight locations in Illinois or Missouri. As well as being a full-service home center, Buchheit carries a complete line of farm products, and even farm animals, so the pet pig fits in well with all the store has to offer. Plus, it’s a great talking point among the business’ youngest customers. Kids love to come in and visit with the pigs and even take them for short walks (with an employee’s help, of course). This interaction brings their parents, who might have come in to the store for other items, back to the farm, pet and ranch area of the store. It also helps store staff form a relationship with the kids at a young age—a relationship those kids will remember as they grow up and shop for home improvement products of their own.

Pigs and other farm animals are common sights at Buchheit stores. Each location has its own pig that serves as a store mascot.

Visit us! Booth 8350 at the

2017 National Hardware Show May 9-11 in Las Vegas

Additional income opportunity by adding this established Home Improvement business to your store

HARDWARE RETAILING | April 2017

UNIQUE DISPLAY

Store Has Fun with Fabric

inding success as a hardware retailer is all about tying things together. From suppliers to customers, a store can be judged on its ability to match each problem with a solution. For the Ganahl Lumber location in Costa Mesa, California, that task of quilting together different aspects of a business is a more literal translation. For years, Ganahl employee Tom Roberts had collected T-shirts given out by vendors during events at the store. Eventually the collection grew to the point that he was considering throwing it out, manager Terri Orlando says. That’s when Tom’s wife, Elizabeth, stepped in. “She thought there was more that could be done with all those shirts,” Orlando says. The quilt, which measures 6 feet by 6 feet and contains 17 shirts, took Elizabeth three weeks to complete. It now adorns the rafters at Ganahl during events. It was first brought out in January for the first of two tool events Ganahl conducts during the year, and its placement high above the salesfloor ensures everyone can get a look. “Everyone really gets a kick out of it. Our customers love seeing what we did with those shirts,” Orlando says. “A lot of those shirts are from the same company in different years. The designs change, so it’s a look into the past. It’s memorabilia.”

A T-shirt quilt, made from T-shirts one employee has collected from vendors, is on display at Ganahl Lumber in Costa Mesa, California.

April 2017 | HARDWARE RETAILING

Checkouts

UNIQUE DISPLAY

Intown Ace Gives Customers a Wakeup Call

ith approximately 30,000 cars zipping past Intown Ace Hardware in Decatur, Georgia, every day, co-owner Dave Jones wants them to slow down enough to notice his business. “We are always looking for a way to turn heads toward our store,” he says. One solution is a giant, metal, brightly colored rooster that sits just a few yards off the side of the road. It frequently shows up on the store’s Facebook page, often dressed for a holiday or special occasions. Drivers who miss the rooster are likely to see the two giant Adirondack chairs on the other side of the storefront. “We have a lot of parents stopping to put their kids up there and take their picture,” says Jones. Besides being local curiosities, the rooster and giant chairs also serve as big cues that Intown Ace Hardware is more than just an average hardware store—which is exactly the message Jones wants to send. The store has one of the largest and most diverse collections of lawn and garden goods and patio furniture in the area, as well as expansive niches in housewares and gifts.

Earlier this year, the rooster outside Intown Ace Hardware dressed for the Mardi Gras season with a mask and beads.

Espresso

To learn more visit www.myoldmasters.com or call 800-747-3436

Aged Oak

Weathered Wood

comfort, room by room

www.marsdelivers.com

“Life really is all about the nuts and bolts! We are proud of our new line up of fasteners from our new supplier. The mix of products has been strengthened and the presentation of the merchandise makes it easy for our associates and customers to navigate. Our customers and associates asked for more and boy did they get it; we more than doubled our selection of stainless, metric, chrome of all kinds of nuts and bolts... and we did this in the same amount of space.” -Wendy Adrian, Hardware Merchandise Manager, Orchard Supply Hardware -Pictured Mark Gudala, Assistant Manager; Orchard Supply North Beach, San Francisco, CA

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By Jesse Carleton, jcarleton@nrha.org

HARDWARE RETAILING | April 2017

Master Your Merchandising Finding the Strategies that Work

hen it comes to merchandising your store, you can’t always follow the textbook. Customers don’t always look at what you want to sell them, so sometimes you have to get creative so they hear the message. That’s what’s been happening at T & M Hardware and Rental, with five locations in Pennsylvania and one in Ohio. Each location is unique, and they range from

standard modern retail spaces to smaller salesfloors shoehorned into older buildings. Each building represents its own set of merchandising challenges. Hardware Retailing visited three of those locations to see how staff reworked standard merchandising techniques to drive sales. No matter the shape and size of your building or how difficult the merchandising challenge, the ideas from the T & M staff might help you find some solutions. April 2017 | HARDWARE RETAILING

Create New Shopping Habits Store Location • Harmony, Pennsylvania. In an 11,000-squarefoot building constructed for modern-day retailing, this is owner Tim and Mary Post’s showpiece. It sits off a main highway near a shopping district and draws a mix of contractor and consumer customers.

Challenge • This past year, Scott Post, sales and rental manager for the company, presented employees with a company-wide sales goal: Add one extra dollar to every transaction and add one extra transaction per hour. Meeting that goal has involved finding new ways to merchandise. Becky Guisler, sales support for the company, tackles the challenge by watching how customers shop. She noticed that when customers walked in, they seemed to ignore the first one-third of the store. “No one was looking left or right or slowing down. It was as if they had their blinders on,” she says. People were coming to the store and heading straight to their destination items, instead of noticing those other items that might not be on their list. There was something else she wanted to fix: “I noticed there was a huge lack of women shoppers. The ratio of men to women was about 10 to 2,” she says. “One of my goals is to drive sales to women shoppers.”

Strategy • Guisler wants customers to start shopping as soon as they walk in the front door, picking up impulse items and increasing their transaction sizes. For female shoppers who come into the store, she wants to have home decor and gift items. But since the store isn’t necessarily known yet for those items, she uses her merchandising skills to start reshaping that image. Her strategy involves both major changes to the store’s look and feel, as well as some minor tweaks.

See it from a different angle. If customers walking in the store are looking straight ahead and focused on what they came to buy, then the aisles most likely to be missed

HARDWARE RETAILING | April 2017

Endcaps angled toward the front of the store catch the eyes of shoppers as they walk in.

are those directly on either side of the door. To interrupt that tunnel vision, Guisler set the first two endcaps of the store at a slight angle so they’re facing customers as soon as they walk in. “It gives our customers more of a chance to see something they might otherwise miss,” she says. The space behind the angled endcap gives her an opportunity to place items related to what’s on the display.

Create open space. While on one side of the front door Guisler has angled the endcaps to grab shoppers’ attention, on the other side she went for a different tactic. There were too many shelves crowding that area, which meant most customers weren’t paying any attention to it. While it’s important to maximize a store’s square footage, good merchandising isn’t necessarily about seeing how much product will fit in the store, but rather how to get customers to notice what’s there. And sometimes less is more. If customers were going to stop and shop the front of the store, Guisler recommended opening up the space to draw them in.

She removed a run of shelving from the outdoor living and sporting goods department, which is located at the front of the store, creating a mini power aisle. Now, the power aisle provides an area for showing grills, while the open space creates more visibility for products on surrounding gondolas. To further capitalize on that space, Guisler uses the area to reinforce some of the brand names of sporting goods the store carries, including Yeti, Carhartt and Weber. Heavily branded product displays with vendor signage helps establish that T & M Hardware and Rental is a destination for brand names.

Create a unique shopping area. As she looked for a niche that would bolster store traffic, particularly among female shoppers, Guisler turned to home decor and gift items. But the challenge is that, up to this point, the store hasn’t been a destination for those items. To make the sale, she relies on impulse and inspiration. To help with the impulse part of the sale, Guisler placed the category near the front of the store so it’s easily visible to shoppers. To help inspire them to make that impulse purchase, she has created a unique shopping space with products that are colorfully and creatively merchandised. For example, she replaced standard shelving with some unique tables that have a more vintage appearance. “We’ve given the area the feel of a gift shop,” she says. “It feels more inviting than just standard merchandising. I feel like it’s a place where customers will want to stop and look.” She keeps the price point of most of those items under $20, as that seems to be the ideal range for an impulse buy. If customers aren’t looking for something for themselves, it’s likely they will shop for a gift. Like the sporting goods department directly next to it, a departure from the typical run of 7-foot shelving means the area has open space, so shoppers are more likely to notice it.

Small changes have large returns. Not all of the changes at the Harmony store have been major; small adjustments or embellishments have also had a big impact. For example, in all of the T & M Hardware and Rental stores, pegboard behind the displays is painted brown. “The merchandise pops out on the dark background as opposed to the standard white background,” says Samantha Post, marketing and human resources manager for the store. “Your eye is more likely to catch the product on the hook or shelf.” The paint department is another area that received a lot of attention last year. Post and her team gave it an overhaul with a new paint counter and new signage. Then to add in some additional fun, they hung paint can lids, painted in different colors, along the bottom of the paint department signage. “It creates a little fun and draws customers over to see what is happening over there,” Post says.

Create unique merchandisers to call attention to niche departments that may be new to your store.

April 2017 | HARDWARE RETAILING

Interrupt the Customer a dump bin full of discount items. “Just about Store Location • Bellevue, everyone takes a minute to rummage through it,” Pennsylvania. This charming borough of Pittsburgh has a small-town feel with a young, urban demographic. Many of the shoppers come to the store on foot or via public transportation.

she says. “Everything is priced at $1.49, so it’s an easy way to raise transaction size.”

Employees are talking merchandisers.

• This building already had an existing hardware Challenge

store when the Posts purchased it. An older building in an urban area, it has two levels, and the staircase leading to the lower level is what customers walking in the door see first. The stairway eliminates the possibility of a power aisle and, therefore, the store doesn’t have space for traditional endcaps or pallet displays. Downstairs, the ceiling is low and a bulkhead in the architecture makes it difficult to fit a standard vendor planogram. There are also blind areas out of the normal flow of traffic that customers often miss.

Strategy • Samantha Post manages marketing and human resources for the entire company, but also spends most of her time at the Bellevue location. As she and staff tackle the limitations posed by the store’s layout, she says it is helpful to watch customers as they shop the store. What are their normal traffic patterns? What areas of the store receive the most traffic? What areas are ignored? She and her staff have devised a strategy that focuses on creating opportunities for impulse items and finding ways to divert shoppers away from their normal shopping habits.

Encourage impulsive behavior. Perhaps the largest store layout challenge at Bellevue is the staircase directly in front of the door. As a solution, Post fills the front portion of the store and the area around the stairway with impulse items, such as spirit wear for the Pittsburgh Steelers. Locating several niche and unique items in one, highly visible location solves another problem too. Given the layout of the salesfloor, traditional endcaps and pallet displays are not practical. Instead, Post uses the front of the store for products that otherwise might be placed on those types of merchandisers. Another effective location for an impulse display is near the key machine. As shoppers stand waiting for a key to be made, they browse through

HARDWARE RETAILING | April 2017

Having impulse items available is only half of Post’s plan for selling them. She encourages employees to prompt the sale. For example, as plumbing is one of her store’s most popular departments, one of the most common add-on items is pipe tape. “We always have that at the front cash register counter. It’s like going to the post office, when they always ask you if you need to buy stamps. If someone’s

Use the area around the cash register as a prime location for impulse and project add-on items.

working on a plumbing project, we always ask them if they need pipe tape,” she says. While that’s a small sale, every extra dollar adds up. She says employee training is an important complement to merchandising, because they need to know what add-on items to suggest with each project. For that reason, Post emphasizing training for cashiers. “We call our cashiers our marketing assistants,” she says. “That is the person every customer will interact with and usually the first and last employee they see.” It’s important that cashiers know where everything in the store is and have as much product and project knowledge as they can. If a customer arrives at the checkout and has forgotten to pick up an item important to the project, the cashier should be able to suggest the necessary add-on items.

Please interrupt the customer. “Most shoppers have their blinders on when they come in and out of the store,” Post says. “They are only focused on that item they came in to buy. So we’ve been focusing on putting interruptions in their path to remind them of something else they might need.” Her favorite example is a giant M&M displayer that holds assorted candy. She placed it near the corner of some of the most frequently travelled aisles in the store, and shoppers began putting candy bars in their shopping baskets. While those shoppers might not have been thinking about food initially, Post says the power of suggestion can lead to an impulse sale. This simple merchandiser has become one of the store’s most effective impulse displays. Post is also working on interrupting people who haven’t yet walked in the store. Since it’s on a busy urban street with a lot of passersby, Post uses that to her advantage by converting the area in front of the store by the sidewalk into usable merchandising space. With some shelving and racks outside, the sidewalk space is an area for impulse items, which helps draw more shoppers into the store. “Use the display as the interrupter,” she says. “Pile something up where people don’t expect to see it, and they’re more likely to act on impulse. You’ve just reminded them of something they forgot they needed.”

Cross-merchandising is for destination items, too. Operating a store in tight quarters with no space for a traditional power aisle or endcaps means Post must find ways to pull shoppers to all areas of the store, not just their favorite spots. Cross-merchandising is a valuable tool. A good example is the housewares department. It’s in a room off to the side of the main salesfloor

This is the customers’ view when they walk into the store. Since she doesn’t have room for a power aisle, Post surrounds the staircase with unique and niche items.

and out of the regular flow of traffic, so most customers pass by it. “Housewares seems to be that area no one knows about,” she says. “So we’ve been putting some destination items there that are usually in another department, but are also tangentially related to housewares. That helps bring customers to that area.” For example, while furniture floor sliders may be a good fit for the hardware department, Post puts some of them in housewares. When customers are looking for that item, employees will send them to the housewares department, so they will have the opportunity to find some other products they may not have known the store carried. In fact, given the limited space in the store, she finds she often doesn’t have the room to display a full planogram all in one space. Downstairs, she’s limited by a low ceiling, beams and posts that take up valuable space. So when it’s time to set up a planogram, Post has to do some rearranging. Typically, she solves the problem by removing double facings, using clip strips for some of the items or hanging them from the posts or beams crowding the space. But she also puts some of those items in different areas of the store, which allows her to stock a full assortment of products while still providing some cross-merchandising opportunities for these items.

April 2017 | HARDWARE RETAILING

Solutions for Crowded Spaces Store Location • Ellwood City, Pennsylvania. This is the first store the Posts purchased in 1991. The town is rural, with farmers making up a large portion of the customer base. A warehouse behind the building houses many of the rental items used by all locations.

Challenge • The salesfloor at Ellwood City is long and narrow. There’s an expansion at the back with fishing equipment and pet supplies, as well as the core rental category. But the chief challenge for store manager Steve Lemanski is finding ways to utilize the store’s limited space to stock more merchandise. The salesfloor also offers few opportunities for traditional impulse merchandisers such as endcaps, dump bins or bulk displays. He doesn’t want to waste floor space, but he also doesn’t want the store to feel too crowded.

Strategy • When Lemanski thinks about driving sales through merchandising, he relies on his creativity. Before coming to T & M, he worked for both Home Depot and Lowe’s, so he was accustomed to working with the space of a big box. His strategy for the Ellwood store focuses on driving more impulse sales and tapping into the creativity of his staff.

Narrow metal racking is the solution for filling a space in the store that was too narrow for standard metal gondolas.

Cut the crowding with narrow shelves. Near the front of the store, Lemanski wanted a way to increase his shelf space while also promoting his housewares department and some seasonal goods. Since the area he had in mind didn’t have enough space for traditional retail shelving, he set up two back-to-back rows of narrow, open metal shelving, the type typically sold for home organization. He stocks both housewares, such as kitchen totes, along with seasonal items, such as portable heaters. “The shelves are shallow and don’t take up as much space as a typical gondola, but they can still hold a lot of merchandise,” he says. “I’m able to make good use of what was otherwise dead space. It’s allowed us to add another 40 linear feet of merchandise to the front of the store.”

HARDWARE RETAILING | April 2017

Since the shelves are near the front of the store, every customer will see them. Most of the items on these shelves are those customers might not expect to see in his hardware store, giving them a new reason to come back.

Your staff’s got talent. Lemanski doesn’t try to come up with all of the good ideas on his own, either. He encourages his staff to contribute. One of his employees, for example, uses her creativity to make unique lamps Lemanski places strategically in visible locations to grab shoppers’ attention. They are usually Pinterest-inspired projects that are easy for customers to replicate or even purchase.

Employees have also offered their ideas for enhancing displays, whether it’s through creative arrangement of the products or decorative motifs that complement the products. “I encourage our employees to tell me about any good ideas they have,” he says. While he can’t always use everyone’s, he tries to foster an environment that supports creativity. “If I’m open to their suggestions, it gets them excited about what they’re doing, too.” Last year, staff got excited when Lemanski and a manager from another T & M Hardware and Rental location created a friendly competition between employees at the two stores. Each manager set up a display of smoke detectors near the front counter and challenged their staff to sell more than the other store. Instead of relying on a creative display, they relied on their own selling skills. “The employees had a lot of fun with that,” Lemanski says. “They would call the other store throughout the day to see how many they had sold. They got pretty competitive. But they also learned to ask customers simple questions, such as, ‘When was the last time you tested your smoke detector?’ to remind them they might need a new one. We sold a lot of detectors.” Whether it’s suggesting an add-on sale or making sure customers have everything they need for a project, proper training is essential. Merchandising and selling skills go hand in hand. With a bit of encouragement, employees can find new ways not just to merchandise, but to talk to customers about the sale.

will have you stopping to look. Similar to what Post encountered at the Bellevue location, Lemanski has the challenge of finding a way to encourage impulse buys without having much space for traditional endcaps or bulk displays. He overcomes the obstacle by utilizing the front space of the store to show shoppers new or seasonally significant items. As a start, he’s placed several impulse-type items on and in front of the cashier counter. While he has snacks—always a good fit for this area of the store—he’s also put out some necessities, such as anti-freeze, that customers may have forgotten they needed. Also at the front of the store, Lemanski uses rolling racks for items he wants to promote in the path of customers entering the store. Since bright colors attract attention, this is a good place for his lawn and garden yard decor items. When he runs out of space on the floor, he finds room on the ceiling. Hanging yard flags from the ceiling puts them in full view of customers.

If they see it, they’ll want it. Walk in to the Ellwood City T & M Hardware and Rental store, and you immediately see a lot of color and attention-grabbing items that

Place sample products, including yard flags and clothing, hanging from the ceiling to catch shoppers’ attention as soon as they walk in the store.

April 2017 | HARDWARE RETAILING

By Jesse Carleton, jcarleton@nrha.org

Core Categor y

t a S rs l l A A Look at Best-in-Class Merchandising Across the Store

ind the best-merchandised category in your store, and you might see it’s also one of the most profitable. While many factors, such as employee training and inventory selection, influence the profitability of a particular category, merchandising plays an important role as well. Good merchandising practices can maximize your use of shelf space, showcase add-on items, explain product usage or expose customers to higher-margin items. In all of these examples, retailers who find a way to impress their customers with clean, creative merchandising are usually rewarded with sales and repeat business.

HARDWARE RETAILING | April 2017

But sometimes even the best retailers need fresh ideas, so the staff at Hardware Retailing has been looking for inspiration. In this two-part series, we’ll show you examples of good merchandise techniques across each of the six core categories. In part one, we’ll show you electrical, plumbing and lawn and garden. Next month, we’ll showcase hardware and fasteners, paint and tools. While the following pages contain some great examples, for even more photos of innovative merchandising techniques, visit TheRedT.com/all-stars. As you look through these examples, you’ll no doubt find ways to take your own categories into the big leagues.

Core Category All-Stars

Electrical

3 1

At Rapid True Value in Kingston, Jamaica, the lighting cloud highlights the variety of fixtures in the store. “It adds an extra dimension and decor to the store while at the same time dividing up the expansive ceiling,” says Patrick Chambers, chief category manager for the company. “It is highly visible from the outside, so our customers are drawn to it.”

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HARDWARE RETAILING | April 2017

At Denver True Value in Denver, Colorado, a sample product is wired to the front of the bin. This makes it easy for customers to see what is in the bin. Since many of these items are bagged, it means customers can get a visual look at the item’s size, and may save them from trying to take it out of the bag before they buy it.

4 3

Good merchandising doesn’t have to be glamorous, but it must be easy to shop. At Mayer Paint and Hardware in Rochester, New York, electrical bins demonstrate some of the essentials of merchandising electrical repair items: clearly marked, fully stocked and organized.

This endcap at Saskatoon Co-op, in Saskatoon, Saskatchewan, Canada, serves a dual purpose. It’s used as a training aid for employees new to the department. It also helps those employees explain basic electrical projects to shoppers. Each type of switch or receptacle is clearly labeled, and wires are exposed so customers can see how to make the connections.

Employees at Klingbeil Lumber Co. in Medford, Wisconsin, have mastered hardware wit. Chalkboards atop endcaps throughout the store make it easy to add drawings and humor to displays. While this is a good tactic for grabbing shoppers’ attention, endcaps must also be well merchandised. A bulk display that is fronted and full of a high-demand item makes this an effective endcap.

April 2017 | HARDWARE RETAILING

Core Category All-Stars

Plumbing

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The plumbing display at Pojoaque True Value in Santa Fe, New Mexico, shows fixtures out of the box. “Customers want to touch and feel the product and see what the finish looks like,” store manager Anthony Urbina says. “The product signage is key to selling the product as well.” Below each fixture is signage with the price, key features and warranty information. Don’t forget this often-missed element of this type of display, as it makes it easier for customers to shop and compare.

HARDWARE RETAILING | April 2017

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Bins with plumbing fittings must stay full and organized, as customers want to have the confidence you have enough pieces for their project. At Klingbeil Lumber, pipe cement is merchandised nearby, as this is one of the most common add-on sales associated with PVC pipe.

The toilet pyramid at Budget Home Supply in Longmont, Colorado, gets customers to stop and look. It also lets them know there is a wide variety of styles and brand names available in the store’s 30,000-square-foot showroom. It also gives them a way to visually distinguish between the different toilet features.

In the plumbing department at the Saskatoon Co-op, bath vanities are shown out of the box and assembled. The genius of these displays is they are moveable. Wheels on the wooden carts mean they can be moved to a different location on the salesfloor, or to the backroom where employees can swap out the cabinets without getting in the way of customers.

Lengths of pipe can easily get messy, causing a safety hazard if they stick out into the aisle. A messy display also makes it difficult to find the correct size. At Klingbeil Lumber, a box neatly organizes cut lengths of pipe. These appeal to do-it-yourselfers who might only need a short length of pipe.

5 April 2017 | HARDWARE RETAILING

Core Category All-Stars

Lawn and Garden

Hanging spreaders at Gordon’s Ace Hardware in the Bridgeport neighborhood of Chicago turns the ceiling into valuable merchandising space. “Hanging the spreaders was a good way to save space on a bulky item and remind customers that we have them,” owner Jeremy Melnick says. “In the first year, the store exceeded expectations in sales.”

Display wheelbarrows assembled and ready to roll. At A & R Home Center in Washington, Indiana, they are outside on top of basic plastic shelving. This simple display shows them off and makes it easy to see the different options.

Neat rows of bagged goods flanked by garden tools make this display at Rollier’s Hardware in Mount Lebanon, Pennsylvania, a model for all to follow. A wide selection of garden gloves are merchandised directly in front of the tools. Since bagged goods can move quickly during the spring season, employees need to check them throughout the day so they stay organized.

A wooden arbor anchors the wild bird category at Northwoods Hardware Hank in Spooner, Wisconsin. “Most customers will want one of the bird feeders hanging on the display instead of purchasing one on the shelf. We expanded the display not long after putting it in due to its popularity,” says co-owner Tami Davidson.

Color and creativity is what helps sell yard art. Displays with a variety of unique items can help pull customers into the category. “These are displays that change for the seasons,” says Randy Collins, owner of B & B Do it Center in Carmarillo, California. “We try to keep things new and fresh as product comes in so the customer has a different experience throughout the year.”

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HARDWARE RETAILING | April 2017

5 April 2017 | HARDWARE RETAILING

By Renee Changnon, rchangnon@nrha.org

A Brighter Future TreeHouse Shines Light on Solar Solutions

or a rising number of today’s consumers, updating their homes means more than just improving the look and feel of their living spaces. Painting the walls or installing new kitchen cabinets is still a priority for homeowners, but projects that provide a return on their investments are increasingly important. One home improvement project more consumers are turning to is the integration of solar technology to power the home. And while big-box retailers may have solar products in stock, there is a lot of specialized knowledge required to get the job done right.

HARDWARE RETAILING | April 2017

That’s why consumers in Austin, Texas, interested in integrating solar technologies in their homes turn to TreeHouse. Unlike their competitors, the knowledgeable staff at TreeHouse helps consumers improve the efficiency of their homes by providing expert guidance through each step of the process. In the years since the unique Texas-based business was founded, it has gained interest from national news outlets like Inc., Fast Company and The Guardian, which even nicknamed the home improvement company the “green alternative to Home Depot.” While following in the footsteps of TreeHouse may not be the right move for your business, there is a lot you can learn from this best-in-class retailer. Solar energy has been a niche alternative solution for some homeowners, but technological advancements and decreasing prices have made it accessible to more consumers. TreeHouse offers knowledge and top-quality products to help homeowners power their homes efficiently for years to come. Hardware Retailing spoke with TreeHouse’s vice president of operations, Graeme Waitzkin, to discuss solar energy technology, the company’s approach to whole-home performance and where he envisions the future of solar technology going. On the following pages, you will learn how the market for solar technology has evolved in recent years. You’ll also discover techniques TreeHouse implements to educate, sell and install solar products. Plus, Waitzkin shares his expert insights on the future of this technology so you can plan ahead.

The Evolution of the Solar Energy Industry Since TreeHouse opened its doors in 2011, the original location in Austin has transitioned from a more traditional home improvement store with a layout featuring aisles for product categories to a more project-based format, which features three distinct areas: home performance, design and outdoor living. • Performance—includes everything from windows and insulation to roofing and solar energy; • Design—includes kitchen and bath, flooring and paint; • Outdoor Living—projects like rainwater harvesting. While solar energy products haven’t always been part of the business, Waitzkin says the company realized that renewable energy needed to be a bigger part of the equation. “The reason we decided to add solar technology as a project offering at TreeHouse was that we wanted to provide consumers with top-notch whole-home performance,” he says. “We decided if we’re going to make a recommendation on how to improve the entire home, renewable energy on site has to be a part of that.” Over the years, the solar industry has seen many advancements and changes that are helping it move from a home improvement niche only a small percentage of people can afford to install, to a more common energy alternative. “The price has come down significantly in regards to the materials and equipment costs, as well as the labor costs,” Waitzkin says.

TreeHouse is focused on bringing customers progressive products, human-centered services and leading technology under one roof. Construction on its second location in Dallas is underway.

April 2017 | HARDWARE RETAILING

“Additionally, more financing opportunities make residential solar energy more attainable. In fact, we provide financing for our customers when they purchase solar that is similar to getting a car loan. Rebates for solar and tax credits may be available as well.” The lowering costs are likely due to improving technologies and rebates, but the Solar Investment Tax Credit (ITC) has also been a major factor in the stability and growth of the industry since its introduction in 2006, according to the Solar Energy Industries Association® (SEIA). In fact, in the past 10 years, “solar has experienced a compound annual growth rate of more than 60 percent,” the association says. In addition, the cost to install solar has dropped more than 60 percent in the last decade, helping the industry expand into new markets, according to SEIA’s data.

Offering the Best Products, Knowledge and Customer Service

TreeHouse not only sells solar panels, but also employs and contracts experts in the industry to properly install them.

HARDWARE RETAILING | April 2017

When a homeowner begins researching solar energy options, they will have a different experience visiting TreeHouse versus a retailer specializing in solar energy, Waitzkin says. “Not every customer we talk to is ready for solar,” he says. “In fact, we have a lot of folks that come

in and want solar, and we’ll actually end up recommending a different project for them to get the most bang for their buck. There may be other improvements a customer should make to their home before undertaking solar. “As a home improvement company, we can make a recommendation and back it up, versus a solar company offering just solar,” he says. That emphasis on putting what’s best for the customer first is a big part of what TreeHouse prides itself on, Waitzkin says. When a customer visits TreeHouse, an entry-level team member can provide baseline knowledge of the entire store. They also have specialists, designers and home performance consultants to provide a personalized approach to the customer. They can help them determine what projects make most sense for them, he says. For consumers to have a home that runs efficiently, TreeHouse recommends a variety of home improvement projects that best work together: proper insulation and air sealing; high-quality metal roofing; high-performance windows that save energy, block noise and increase natural lighting; and, if it makes sense, solar panels and a backup home battery to achieve net-zero energy. The company integrates top-rated solar products, hires certified installers and has made a commitment to simplify and demystify the process for homeowners. “At TreeHouse, we sell solar like T-shirts,” Waitzkin says. “Our solar panels come in small, medium, large and extra large. That’s not something everybody does. We made it a core competency; we invested in the expertise; and we made it simple. For us, that made a lot of sense and has allowed us to be more credible to the homeowner.” In regards to solar and batterypowered alternative energy, Waitzkin says TreeHouse only carries what they deem to be the best quality products from reliable brands. “We only carry SunPower Solar and Tesla batteries,” he says. “Our customer segment is looking

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for quality, sustainability and long life. We want brands that are going to stand behind the product. Both SunPower and Tesla are a good fit.” A customer can come in and sit down with a home consultant, and that consultant will map out specific recommendations to improve whole-home efficiency. For example, if a consultant discovers the customer’s roof needs repairs or should be replaced in a few years, a new roof should be a priority before investing in residential solar energy. “All of our design services are free,” Waitzkin says. “We’ll do designs with no commitment and see where it goes. We want to help reduce the barrier for homeowners.”

Making Predictions For the Future

Customers curious about residential solar energy or adding a home battery can browse the home performance area of the store and talk with a home performance consultant.

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HARDWARE RETAILING | April 2017

Although there is no crystal ball to predict where solar technology will be 15 years down the road, Waitzkin says he believes solar energy will continue to grow and move from the fringe to a more common energy alternative. Costs are likely to continue to lower as equipment and installation prices drop. Yet even as solar technology becomes more commonplace, he doesn’t predict homeowners will completely fall off the electrical energy grid. “The need for the electrical grid remains, because it’s not always sunny, and at night, panels are not generating power,” Waitzkin says. “However, I predict that batteries and solar products will be packaged together more frequently to act as a more wellrounded alternative energy solution.” In order to see solar technology adopted by more homeowners, not only will technology need to improve, but an emphasis on improved aesthetics will need to be a priority for solar manufacturers, Waitzkin says. “While I think solar panels look cool, some people think they’re an eyesore,” he says. “Some homeowners associations even restrict solar, and where it can be placed on the home, but I think that will be seen less as solar panel manufacturers embrace performance and the aesthetics of the panel design.”

When considering the future of solar and its presence in TreeHouse, Waitzkin says the technology will continue to grow. “We’re going to continue to offer our customers solar options, and as the technology and prices improve even more, we’ll continue to strengthen our offering,” he says. “No matter what project we help a customer with, we will continue to take a consultative approach to helping customers understand how their homes work,” he says. “It’s a fairly complicated machine, but we want to bring our expertise to customers so they can construct a smarter, healthier and sustainable home.”

Learn More Online For more insights into the solar energy industry, visit TheRedT.com/seia-qa for a Q&A with the Solar Energy Industry Association’s senior communications manager, Alexandra Hobson. Then gain insights on the future of solar from Craig Lawrence, founder and managing director of Realization Ventures, at TheRedT.com/solar-future.

Solar technology can be a great way to save, but Waitzkin says there are many factors homeowners must take into account before investing.

Stock The Product That Will Be Leaping Off Your Shelves! FrogTape® is the only painting tape treated with PaintBlock® Technology which delivers sharp paint lines the ﬁrst time, every time. Available in off shelf displays, make sure your store has FrogTape® stocked so customers can experience the FrogTape® difference!

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HARDWARE

What’s In Store for You? Get a Glimpse Into Your Operation’s Future

re you ready to take a look at the future of your business? If so, pack your bags for Las Vegas, which will host the North American Retail Hardware Association (NRHA) All-Industry Conference, which is co-located at the 2017 National Hardware Show®. The events will be held May 9-11 at the Las Vegas Convention Center. Opportunities include educational seminars with expert presenters,

HARDWARE RETAILING | April 2017

chances to research new products or to continue developing relationships with current vendors, networking with retailers across affiliations and industry partners across channels and much more. This year, the themes of both events focus on looking toward the future of your business, the future of the industry as a whole and how you can continue being a competitive independent home improvement retailer.

WE’RE STRONGER TOGETHER.

No matter who you are, you are one of us. NRHA brings together 35,000 independent home improvement retailers.

35,000 INDEPENDENT RETAILERS

238 ONLINE TRAINING MODULES

100% INDEPENDENT NRHA WELCOMES ALL RETAILERS REGARDLESS OF AFFILIATION

JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

The theme of the 72nd annual National Hardware Show is “What’s In Store For You?” Retailers will only need one look around the seemingly endless show floor to find thousands of answers to that question. “Retailers can see new products, learn from the educational seminars, network with best-inclass retailers of all types and take what they’ve learned back to immediately apply to their businesses,” says Rich Russo, vice president of the National Hardware Show. “We have a lot planned for this year’s show and can’t wait for our attendees to experience all it has to offer.”

“It’s a place where retailers can

gather for networking and hear from industry experts. We frame the presentations and speakers so everyone leaves with something new to take home.

”

—Bob Cutter, NRHA chief operating officer

HARDWARE RETAILING | April 2017

The theme of the NRHA All-Industry Conference is Forward-Thinking Retail. This theme will be intertwined into the various presentations and expert speakers at the conference. During the event, NRHA will host most of its programming on stage in the NRHA Village, which is located right inside the main entrance to the convention center. “The Village is a central hub for independent home improvement retailers,” says NRHA chief operating officer Bob Cutter. “It’s a place where retailers can gather for networking and hear from industry experts. We frame the presentations and speakers so everyone leaves with something new to take home.” Co-locating the NRHA All-Industry Conference at the National Hardware Show creates a seamless experience and allows you to explore the industry on a grand scale in one place. Start your show to-do list with this rundown of everything you should plan to see and do. Mark your calendars with these events, award presentations and speakers to maximize your time and personalize your experience so you can take home what matters most to you and your business.

The NRHA Village is the place to be. We have a lot in store for you at this year’s conference. The Village is your space to network with other independent retailers, explore the best in packaging and merchandising and learn from industry experts.

2017 NRHA ALL-INDUSTRY CONFERENCE

What’s New

NEW

Two programs from the National Hardware Show and NRHA are new this year, and both are dedicated to inspiring independent home improvement retailers to consider how they can invest in their businesses and be leaders in their communities and the industry. The National Hardware Show wants to know: What you would do with an extra $100,000 for your business? Reimagine Retail is a contest sponsored by the National Hardware Show that will award one lucky retailer the grand prize of $100,000 to put toward a capital improvement project in their store. Attend this presentation to hear the innovative ideas independent retailers have to improve their operations. Mark your calendar for 2 p.m. Wednesday, May 10, and prepare your applause and confetti. That’s when the winner of the Reimagine Retail program will be announced on the NRHA Village Stage. Every year, NRHA and Hardware Retailing honor the industry’s leaders in the Top Guns program. For a new spin on this year’s program, the association and the magazine will be recognizing the independent home improvement industry’s Young Guns. The Young Guns honorees are next-generation retailers who are four of the most successful and innovative people in the independent home improvement industry. The Young Guns will gather for a panel discussion at 1 p.m. Wednesday, May 10, on the NRHA Village Stage. They will talk about their success stories, their take on the current state of the industry and their visions for its future. Attend this program to learn what it takes to be named a Young Gun in today’s competitive retail environment, and discover new ideas and business philosophies to take home to your store.

HARDWARE RETAILING | April 2017

What to Do

The National Hardware Show and the NRHA All-Industry Conference combine to create an event to serve retailers from all backgrounds, affiliations and business models. Whether you prefer to spend your time methodically moving through the show floor or casually meeting other retailers, there is something for everyone. There will be thousands of exhibitors on hand— from big brands with their newest products to small startup companies with “the next big thing.” Use the My Show app to keep track of all the exhibitors you want to see. The app is free once you register for the show, and it can be accessed through the free NHS mobile app. One of the biggest benefits of the show is the chance to meet and network with other retailers— on the show floor or off. Make sure to check out a happy hour event or stop by the Tailgate, Backyard & BBQ area. Along with awards ceremonies and speakers, the NRHA All-Industry Conference offers independent home improvement retailers, regardless of wholesale affiliation, the opportunity to connect with and learn from each other. A great place to make these connections happen is at the NRHA Independent Retailer Reception, which begins at 5 p.m. Tuesday, May 9. If you are interested in attending this free event, please RSVP to Katie McHone-Jones at kmchone-jones@nrha.org before the show. Another way to ensure you connect with as many new people as possible is to make the NRHA Village a regular stop as you make your way around the show. You’ll need time to rest in between vendor stops and presentations, so make the Village the place to regroup throughout the day. This time can be spent mingling with other retailers or learning about NRHA.

What to See

Who to Hear

Products, packaging and merchandising all work together at your stores, and they work together at the National Hardware Show and at the NRHA All-Industry Conference, too.

Awards ceremonies and presentations provide an opportunity to celebrate the best of the industry and gather insights from industry experts—all in one place! The National Hardware Show and NRHA have assembled a full lineup of opportunities to take a break from walking the show floor, but without losing a minute of valuable time learning about the industry.

According to the National Hardware Show, 83 percent of attendees say new products are the primary reason they attend the show. Check out these events and areas if you are looking for the latest and most innovative products. The Products Spotlight area shows off the products that could be “the next big thing” in the home improvement industry. Sponsored by the United Inventors Association, this area will include educational opportunities and offer a chance for inventors to pitch their products to experts and participate in the HSN Product Search. New Product World offers the latest in innovations, products and trends across all product categories, while New Product Launch is full of products that haven’t hit the market yet. There are no pre-negotiations or pre-sales, and these products represent a variety of categories. See the best-in-class products awarded during the New Product World Awards and the New Product Launch Awards on the NRHA Stage. NRHA hosts the Packaging and Merchandising Awards, but if you can’t make it to the awards, you’re in luck! All entries and winners will be on display in the NRHA Village throughout the conference. Some manufacturers that will have their packaging and merchandising on display include: • Ames Research Laboratories • DAP Products • Kärcher International • MiTek • Sashco • Simple Green • And many more!

The National Hardware Show is hosting several awards ceremonies you won’t want to miss, including the Homewares Awards; the Lawn, Garden and Outdoor Living Awards; and many more. Find a full list at nationalhardwareshow.com. Each year, NRHA strives to schedule innovative and inspiring speakers at the conference, and this year is no exception. The conference presentations align with the Forward-Thinking Retail theme and focus on how independent home improvement retailers can compete against big boxes and e-commerce retailers in today’s challenging environment, using their customer service skills and industry expertise to create exceptional customer experiences. Here is a list of conference speakers and their presentation topics. • Eugene Andreassi, “Store of Tomorrow”, presented by the Paint and Decorating Retailers Association • Will Aubuchon, “Aubuchon Go” • Dustin Kaehr, “Customers Uncensored: What They Wish You Knew” • Al Meyers, “Break Out of the Pack” • Jim Robisch, “The Store is STILL Important” • Mary Walter, “Your Remarkable Service Advantage” • Kit Yarrow, “Decoding the New Consumer Mind” For more information and a full schedule of presentations, visit nrhaconference.com.

April 2017 | HARDWARE RETAILING

Building Stronger Associations The Industry’s Two Largest Retail Associations Forge Closer Ties

n early February, the North American Retail Hardware Association (NRHA) and the Paint and Decorating Retailers Association (PDRA) released a joint announcement outlining a new strategic alliance between the industry’s two largest associations. The goal of the alliance was to expand access across the home improvement industry to a broader array of products, programs and services than both associations offered individually. Together, NRHA and PDRA represent more than 50,000 independent retail outlets and offer their members training materials, industry information, advocacy and marketing programs, as well as a variety of live events throughout the year. Moving forward, these two organizations will share more resources in an effort to enhance these offerings. Hardware Retailing spoke with Bob Cutter, chief operating officer of NRHA, and LeAnn Day, executive director of PDRA, to discuss the particulars of this alliance and how they see it having a positive impact on the constituents served by their organizations. Hardware Retailing (HR): Tell us a little bit about what this new alliance will mean to the retail communities you serve. LeAnn Day (LD): There are just so many similarities between our membership at the PDRA and that of NRHA. We both represent small business owners who are facing many of the same challenges. This alliance will provide our two organizations the ability to build on these synergies and do an even better job of providing independent retailers with the information, education and programs they

HARDWARE RETAILING | April 2017

“We tell retailers that

we are stronger when we work together. Why wouldn’t we practice what we preach?

”

—Bob Cutter, NRHA chief operating officer

need to succeed in today’s economy. We are much more powerful working together than trying to do everything on our own. Bob Cutter (BC): I agree 100 percent with LeAnn here. Independent retailers in this industry are facing some very critical challenges right now. From finding the right employees to growing their operations to dealing with issues like succession and regulations, they have a lot on their plates. It doesn’t matter what they are selling; there are more common issues than there are different ones. This alliance makes sense because together we can address these common issues more effectively. HR: Why did this alliance make sense for both of your organizations right now? LD: With the similarities of the organizations, the timing was right to build upon these synergies. We all need to evolve and adapt, and given the current climate, it made sense to do this now. I have no doubt that this alliance will

The Immediate Impact of the New Alliance • NRHA will begin publishing PDRA’s monthly magazine, Paint & Decorating Retailer. Dan Simon will remain publisher of Paint & Decorating Retailer and will work with the NRHA team to produce the magazine.

• The associations will work to expand NRHA and PDRA member access to a broader range of educational and training materials.

• With assistance from NRHA, PDRA will begin hosting two annual member roundtable events, where retailers can share best practices and insights.

• The two associations will work together more closely to provide limited joint programming at the annual National Hardware Show® and the PDRA Paint & Accessories Show in Las Vegas.

• NRHA and PDRA will jointly conduct two annual research projects to provide their retail members with even greater insights into the channel and consumer trends.

• NRHA and PDRA will continue exploring ways to share association resources that could benefit both organizations’ constituents.

provide more opportunities for each organization to provide independents with the tools they need to be successful. BC: Just a few years back, the industry faced a real crisis with the recession and the downturn in the housing market. Coming out of that downturn, more and more companies serving this industry, from retailers to manufacturers, started thinking outside the box and looking for ways to do things smarter and better. In some ways, I think this alliance is a reflection of that. It’s also our rallying cry at NRHA, if you will. We tell retailers that we are stronger when we work together. We encourage them to break down the walls of store affiliation and size of operation to come together and share resources with one another. Why wouldn’t we practice what we preach? HR: What are some of the tangible benefits retailers can expect to see? BC: When you look at each organization, I think we both have our areas of expertise. NRHA has had a long experience in the publishing, education and training side of the equation, while PDRA has some really unique marketing concepts. So, I think retailers will immediately benefit from the sharing of resources in this area. Next, I think one of the biggest benefits will come from broadening interactions between our member retailers and theirs. LD: I certainly agree with Bob here, too. Across the board, we’ll find opportunities to share resources in education, training and networking, and will be a benefit to both our member bases.

HR: How are your organizations addressing issues that small business owners face today? LD: A lot of the same things we talked about earlier, like hiring, training and retaining quality employees, marketing and planning for succession are all areas where the PDRA and NRHA have individually developed programs to help retailers. Now we will be working even more closely together to bring tools to all of our retailers to tackle these challenges. BC: In addition to the tools we will develop and roll out together as part of this alliance, I don’t think you can discount the importance of networking. I feel like we just opened up an entirely new resource to our members and PDRA members. Now we can focus on building opportunities for our members to connect with one another in order to share ideas and best practices. That may be the most valuable tool to emerge from this whole alliance.

Association Leadership

Bob Cutter bcutter@nrha.org www.nrha.org 800-772-4424

LeAnn Day leann@pdra.org www.pdra.org 800-737-0107

April 2017 | HARDWARE RETAILING

Newsmakers

Small Businesses and the Regulation Struggle

o surprise here: Government rules can cost small businesses big time. New research from the National Federation of Independent Business (NFIB) shows that overregulation increasingly costs small business owners time, effort and money. The sheer quantity of regulations is a growing burden in itself, says Holly Wade, director of research and policy analysis for NFIB. NFIB has 325,000 members from nearly every business sector and advocates for the interests of independents. The organization uses research to educate lawmakers on how their decisions impact businesses. Regulations are worrisome in every industry, and business owners’ concerns stem from the time and cost of learning how to follow a growing number of new policies, Wade says. “For most businesses, it’s the owners themselves trying to better understand regulations that affect them,” she says. “So, the more regulations that impact them, the more it’s taking time out of the owner’s day to deal with that instead of running their business.”

More than 30 percent of independent home improvement retailers consider regulations and taxes to be one of their biggest challenges to long-term growth. NFIB’s research shows that regulations, especially on the federal level, are a “very serious” or “somewhat serious problem” to about 50 percent of small business owners. Regulations have ranked as one of small business owners’ top concerns since 2012, Wade says. In recent years, new regulatory burdens have come, for example, from the Affordable Care Act. Similarly, more than 30 percent of independent home improvement retailers consider regulations and taxes to be one of their biggest challenges to long-term growth, according to 2016 research from the North American Retail Hardware Association (NRHA). “The cost of complying with these regulations is the biggest hit,” Wade says. “Having to reorganize their labor force, add benefits, deal with the tax complexity or pay a tax preparer to deal with added issues in compliance. All of these regulations have a price attached to them.” President Donald Trump’s executive order requiring federal agencies to propose two regulations to eliminate for every new rule proposed could be helpful, Wade says. “Hopefully we’ll see some relief for small business owners,” she says. “Scaling back on the volume of regulations that they have to comply with would be a huge step in helping.”

Holly Wade Director of Research and Policy Analysis National Federation of Independent Business (NFIB) Wade provides analysis on public policy issues and economic trends affecting small businesses. She compiled NFIB’s recent poll on small businesses and regulations.

HARDWARE RETAILING | April 2017

Upcoming Events April 1-4 Home Hardware Spring Dealer Market St. Jacobs, Ontario

11-13 Wallace Hardware Co. Inc. Spring Dealer Market Pigeon Forge, Tennessee

May 9-11 National Hardware Show® and NRHA All-Industry Conference Las Vegas

19-22 Do it Best Spring Market Indianapolis

June 15-17 House-Hasson Hardware Dealer Market Sevierville, Tennessee

19-21 PRO Group Inc. 2017 Group Merchandising Conference Chicago

July 28-30 United Hardware Fall and Winter Buying Market Minneapolis

Find more details about these events and others online at TheRedT.com/calendar. To have your event added, contact Kate Klein at kklein@nrha.org.

Gain peace of mind. Enroll your next-generation leaders by July 31. NRHA’s Retail Management Certification Program gives key employees the opportunity to learn from professors, industry experts and fellow classmates. Students work on improving their businesses and providing owners an immediate ROI on their attendance.

Newsmakers

J.C. Penney to Close 140 Stores, Offer Early Retirement to 6K Workers J.C. Penney will close 130 to 140 stores and two distribution centers. The company will also offer early retirement packages to about 6,000 employees. TheRedT.com/jcpenney-closures

Amid Employee Layoffs, Lowe’s Reports Profits Fourth-quarter earnings increased for Lowe’s, following the company’s announcement of additional layoffs at its corporate headquarters and two support facilities. TheRedT.com/layoffs-profits

Banks, Retailers Spar Over Credit Card Swipe Fees Financial institutions and retailers are revisiting a disagreement on credit card swipe fees, which were regulated by the Dodd-Frank Act in 2010. TheRedT.com/swipe-fees

Sales Down, Losses Up for Lumber Liquidators Lumber Liquidators reported a boost in net sales during the fourth quarter of 2016, but the full year’s financial performance reflected woes that began in 2015. TheRedT.com/losses-up

Ace Hardware Reports Solid Growth, Despite ‘Challenging Year’ Ace Hardware Corp. reported financial growth in its fourth quarter and for fiscal 2016, which the co-op’s top executive called a “challenging year.” TheRedT.com/ace-q4-2016

Retailers Celebrate Independence at True Value Spring Reunion Home improvement retailers came from around the globe to discover new products, attend educational seminars and network with other business owners at the True Value Spring Reunion. TheRedT.com/truevalue-sp2017

Plenty to See and Do at Orgill Spring Dealer Market Retailers gathered at the Orgill Spring Dealer Market to hunt for good deals, see new products and get ideas for improving their businesses. TheRedT.com/orgill-sp2017

Ace Hardware Expanding Distribution Facility for Imported Products Ace Hardware Corp. plans to expand its Virginia facility that serves as the co-op’s central location for receiving imported products on the East Coast. TheRedT.com/ace-redistribution

Home Depot Recognized for ‘Bold E-Commerce Strategy’ The Home Depot has been recognized this year for its “bold e-commerce strategy” by Fast Company, which called the home improvement giant one of the most innovative retailers worldwide. TheRedT.com/hd-bold

Best Buy Outlet Stores Sell Discounted Appliances Electronics retailer Best Buy is testing outlet stores in four states as an alternative way to sell clearance and open-box merchandise. TheRedT.com/best-buy-outlet

Home Depot Reports Continued Growth in 2016

Sears Planning $1B in Cost Cuts

While retailers in other sectors have been struggling, The Home Depot’s fourth quarter 2016 financial results marked overall growth for the company. TheRedT.com/depot-q4-2016

Sears Holdings is cutting its costs by $1 billion in 2017 as a way to become profitable again, the company recently announced. TheRedT.com/sears-billion

HARDWARE RETAILING | April 2017

CANADA Lowe’s Moving Ace Canada Office to Toronto Lowe’s Canada recently announced that it will bring the management and support of the Ace program into the Lowe’s Canada regional service center in Toronto and will move distribution for Ace to Lowe’s existing distribution centers in Quebec and Alberta.

Orgill Expects Faster Delivery With New Distribution Center Orgill has launched operations at its new Post Falls, Idaho, distribution center, shipping to customers in regions of British Columbia. The company originally planned to service just British Columbia and Alberta from the facility, but has since expanded coverage to Saskatchewan.

TIMBER MART Kicks Off 50th Anniversary With Convention and Trade Show TIMBER MART kicked off its 50th anniversary celebrations at its annual convention at the Grand Velas Riviera Nayarit resort in Mexico. The event had record attendance of more than 460 dealers, vendors and staff.

Conversion of RONA Stores to Lowe’s Begins With Edmonton Store Lowe’s Canada announced that its Namao RONA Home & Garden store in Edmonton, Alberta, will be the first RONA location to convert to Lowe’s branding.

Quebec Association Raises Funds, Honors Members AQMAT, the Quebec hardware and building supply association, held its Gala of Recognition in mid-February, honoring industry greats and raising more than $13,000 for Montreal’s Hôpital Sainte-Anne foundation.

For the full story of each of these briefs, visit hardlines.ca/hardwareretailing.

AD INDEX

Ajax Wire Specialty Co.......................................... 64 www.ajaxwire.com; 855-966-2529

Hy-Ko ....................................................................... 39 www.hy-ko.com; 800-292-0550

S-Line by Ancra International ................................ 63 www.ancra.com; 800-626-8353

Apex Tool Group ..................................................... 5 www.apextoolgroup.com; 410-773-7800

Independant Garden Center Show.......................... 27 www.IGCChicago.com

Sears Hometown Store ........................................ 38 www.OwnASearsStore.com

Big Green Egg...................................................... IFC www.biggreenegg.com; 800-793-2292

IPG........................................................................... 32 www.itape.com; 888-474-8273

ShurTech Brands LLC.............................................. 65 www.frogtape.com; 800-321-1733

Caterpillar......................................................... 22-23 www.cat.com; 888-614-4328

Mars Comfort-Aire................................................... 41 www.marsdelivers.com

Simpson Strong-Tie Company Inc........................... 7 www.strongtie.com; 800-999-5099

Channellock Inc....................................................... 1 www.channellock.com; 800-724-3018

Master Magnetics Inc. ............................................ 62 www.magnetsource.com; 888-293-9190

Starrett.................................................................. 31 www.starrett.com; 888-674-7443

Chapin Mfg. .......................................................... 16 www.chapinmfg.com; 800-950-4458

Midwest Fastener............................................ 42-43 www.fastenerconnection.com; 800-444-7313

Superior Pump ...................................................... 29 www.superiorpump.com; 800-495-9278

Cole’s Wild Bird .................................................... 21 www.coleswildbird.com; 877-426-8882

National Hardware Show ...................................... 17 www.nationalhardwareshow.com

Threesixty Innovation Ltd...................................... 77 www.360innovation.co.uk; +44(0)1773 605100

Diamond Brite....................................................... 33 www.diamondbritepaint.com; 773-254-7600

No-Spill Inc............................................................BC www.nospill.com; 913-888-9200

True Value............................................................. 19 www.truevaluecompany.com; 888-291-7229

Do it Best Corp. ...................................................... 3 www.independentsdoitbest.com; 888-364-8237

NRHA All-Industry Conference.............................. 69 www.NRHAconference.com

Woods Products Inc. ............................................ 37 www.woods.com/apps

ECI Software Solutions ........................................... 30 www.ecirocksolid.com; 800-588-5128

NRHA Membership............................................... 67 www.NRHA.org/membership

Fiskars Brands Inc. .................................................. 53 www.fiskars.com; 866-348-5661

NRHA Retail Management Certification Program...75, 79 www.NRHARMCP.com

Flame Engineering................................................... 28 www.flameeng.com; 800-255-2469

Old Masters .......................................................... 40 www.myoldmasters.com; 800-747-3436

Flexon ........................................................................ 9 www.flexonhose.com; 800-327-4673

Orgill Inc. ........................................................80-IBC www.orgill.com; 800-347-2860

Hillman Group.......................................................... 11 www.hillmangroup.com; 800-800-4900

Paladin Data Corporation....................................... 13 www.paladinpointofsale.com; 541-803-6060

HSI........................................................................... 35 www.hardwaresuppliers.com; 800-334-5625

Phifer Wire............................................................ 15 www.phifer.com; 800-841-9473

*This index is provided for the convenience of our advertisers and readers. The Publisher assumes no liability for errors or omissions.

April 2017 | HARDWARE RETAILING

Last Word

“The total system gives us 65 to 70 percent of our annual needs for electricity.

”

—Rob Gardiner, Damariscotta Hardware

Maine Hardware Store Cuts Costs by Utilizing Solar Energy

t was almost a decade ago when Rob Gardiner, owner of Damariscotta Hardware in Damariscotta, Maine, was approached by a local contractor to see if he would be interested in installing solar panels on the roof of his business. Gardiner says he had already made efforts to cut back on business costs by installing a wood gasification boiler. From that, he was able to reduce the store’s heating oil consumption by 90 percent. He also replaced high-wattage lighting with more efficient fixtures. The team at Maine Energy Performance Solutions (MEPS) was impressed by Gardiner’s efforts and wanted to pitch the idea of installing a photovoltaic (PV) system, or solar panel system, on the store roof. The MEPS team did a presentation for Gardiner on how to fill out the paperwork for a grant, the tax benefits available and the overall savings from installing the system. Gardiner says he was sold on the idea.

HARDWARE RETAILING | April 2017

“Anything I can do to not give money to the power company, I’m all for,” Gardiner says. “The total system gives us 65 to 70 percent of our annual needs for electricity. On our monthly power bill, we get a small credit for the amount of solar we dump back into the grid. The period from March to September provides a larger credit, and it’s a little less in the winter.” While utilizing solar has been the right move at one of Gardiner’s stores, his second store isn’t a candidate, and this may be the case for other retailers who are intrigued as well. “Installing a PV system is not going to work for everybody; it depends on the building, the roof and other factors,” he says. “However, I think the technology will continue to improve in the future, and it’s something to consider.”

SUPPORTING YOUR FUTURE

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CHANNEL PARTNERS HAVE PROVIDED 63 SCHOLARSHIPS

NRHA’s Retail Management Certification Program is designed to provide business owners with an industry-focused, college-level educational program to develop the leadership and management capabilities of high-potential employees. NRHA works closely with industry partners who, through their generous contributions, offer scholarships so retailers can attend this valuable program.

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Thank you to these companies for supporting independent retailers by providing scholarships:

FOR MORE INFORMATION, GO TO NRHARMCP.COM

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WATCH OUR VIDEO TO SEE HOW QUALITY SETS OUR TOOLS APART.

Scott Ward Fix & Feed Hardware Texas

“We’re developing our name around being strong and independent, and Orgill gets that.”

‘Strong And Independent’ Orgill offers the prices, products and everything else our customers need!

Consistent Support

Always In Stock, Always Competitive

“We enjoy our partnership with Orgill. Our sales rep takes

“Orgill continues to be a good partner, and that’s what

care of us. No matter what we’ve needed from Orgill,

we’re looking for—a partner that has product in stock and is

their support has always remained consistent.”

competitive on pricing.”

Orgill’s Got Us Covered

A Partner for Growth

“As a business co-owner, there are a lot of little things I take

“It was an easy decision to switch to Orgill, because Orgill is

care of daily, so I feel good knowing Orgill can help us handle

so easy to work with. They support us while giving us space

other items, such as merchandising and pricing analysis.”

and helping us continue to grow.”

INNOVATION. AGAIN. In 1989 No Spill put a push button valve on a gas can years before California or the EPA required them. GUESS WHAT? Our simple push button design is still the best available with the fastest flow, tremendous accuracy, an automatic stop and most importantly – it’s the easiest to use.

Now in 2017 we are placing a flame mitigation device (FMD) in all our cans. We’ve added a layer of protection. Independent tests show our patented FMD to be effective yet it won’t affect flow during normal filling or pouring. Our FMD is good news for anyone who uses or sells a gas can.

No Spill cans have the highest customer satisfaction and ratings in the industry. We plan to keep it that way by staying ahead of the game again. Don’t you want the best for both you and your customer? WE DO.

Visit c2rtech.net to learn about the science behind this breakthrough device.

NO-SPILL

NO SPILL Inc. | NOSPILL.com sales@nospill.com | 913 888 9200