Issuu

Serving Hardware, Home Center & Building Material Retailers

Smooth Moves Help Your Team Adjust to New Ownership Page 36

Volume 218 • Issue 4 • April 2020 • hardwareretailing.com

Boost Paint Sales by Selling to Color Page 48

Industry Impact: COVID-19 Page 56

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Smooth Moves Help Your Team Adjust to New Ownership Page 36

Volume 218 • Issue 4 • April 2020 • hardwareretailing.com

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Serving Hardware, Home Center & Building Material Retailers

Compare your business to the rest of the industry.

Median Sales Per Customer Typical

Key Business Indicators

High-Profit

Typical

$30

High-Profit

50%

43.7% 40%

$25

$24 $23

$23

39.8%

30%

$22 $22

20.4%

$22 $21

$21

$20

20%

18.6%

$20 10.6% 10%

4.1% $15

2014

2015

2016

2017

2018

Gross Margin After Rebate

Total Payroll

Profit Before Taxes

Key Performance Differences at a Glance Sales per customer in 2018 rose to the highest level ever recorded at $24.

Hardware Stores Hardware stores carry core hardlines, including fasteners, tools, plumbing and electrical supplies. They carry little or no lumber and building materials.

Stores in this year’s sample also reported the highest ever overall average sales per location at $2,193,172.

Hardware stores saw some of the highest average profits before taxes at 4.1%.

2019 Cost of Doing Business Study

North American Retail Hardware Association

Boost Paint Sales by Selling to Color Page 48

Industry Impact: COVID-19 Page 56

For survey respondents, 2018 appears to have been a strong year for hardware stores, which reported the highest-ever sales per location with an average of $2,193,172. Hardware stores also managed to yield higher profits from these sales, recording the second-highest average profits before taxes at 4.1%. It appears as if these higher profits were driven by a series of factors, including trends like increased transaction sizes ($24), higher customer counts (up 4.1%) and the highest inventory per square foot figures ever recorded ($58). The retailers in our survey also managed to squeeze profit dollars to the bottom line with better expense controls than in years past. The average payroll expense of 20.4% was the lowest level reported in more than two decades and the average occupancy cost of 6.6% of sales was the lowest figure since 2009. One area that seemed to impede overall profitability was gross margin. The average store saw a decline of 160 basis points from last year. In 2018, the average store posted a gross margin after rebate of just 39.8%, the lowest margin hardware stores have reported since 2001.

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Volume 218 • Issue 4 • April 2020 • hardwareretailing.com

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Industry Impact: COVID-19 Page 56

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Headquarters EDITORIAL, DESIGN & PRODUCTION

We Are Stronger Together 136 N. Delaware St. #200 Indianapolis, Indiana 317-275-9400 nrha@nrha.org | nrha.org

@NorthAmericanRetailHardwareAssociation @nrha_official North American Retail Hardware Association @nrha_official

OUR MISSION

The North American Retail Hardware Association (NRHA) helps independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts David Dishke, Grand River Home Hardware, Caledonia, Ontario Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina Matt Woods, Woods Hardware, Cincinnati, Ohio SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN TJ Comstock, Northwest Hardware LLC, Billings, Montana

e are certainly in unprecedented times. Many of you are probably wondering what the next few weeks or even months will be like. Not just for your business, but for your families and your employees’ families. I want you to know you are not alone. The official mission of the North American Retail Hardware Association is to support independent operators in the home improvement sector, regardless of wholesale affiliation, become better, more profitable retailers. Part of that mission means supporting you when you’re not sure how to achieve that yourself. As time moves forward, as it tends to do, regardless of how slowly, we all have to focus on the health and wellbeing of ourselves, our families and our neighbors. You, the independent retailer, are NRHA’s family and neighbor, so we will be here to ensure your wellbeing. Please reach out if you have questions and let us know if there are ways we can offer guidance as you continue to deliver the goods and services that are essential to your communities at this time. We will make it through to the other side of this crisis, and I know that because we are stronger together. Bob Cutter President & CEO bcutter@nrha.org

317-275-9400, editorial@nrha.org

EXECUTIVE VICE PRESIDENT & EXECUTIVE EDITOR Dan Tratensek MANAGING EDITOR Melanie Moul, mmoul@nrha.org PROFILES EDITOR Kate Klein, kklein@nrha.org ASSISTANT EDITOR Todd Taber, ttaber@nrha.org PRODUCTION EDITOR Hans Cummings, hcummings@nrha.org SENIOR DESIGNER Aubrey Linson GRAPHIC DESIGNER Autumn Ricketts DIGITAL MEDIA SPECIALIST Kevin Trehan EDITORIAL & RESEARCH PRODUCTION COORDINATOR Natalie Harris PRODUCTION MANAGER Nancy A. Vondersaar SALES & PRODUCTION ASSISTANT Freda Creech

MARKETING & COMMUNICATIONS DIRECTOR OF MARKETING & COMMUNICATIONS Whitney Daulton CORPORATE COMMUNICATIONS MANAGER & EDITOR Julie Leinwand

NRHA SALES

317-275-9400, sales@nrha.org VICE PRESIDENT OF SALES & PUBLISHER Kevin Hohman, khohman@nrha.org NORTHERN REGION SALES DIRECTOR Brad Lyons, blyons@nrha.org BUSINESS DEVELOPMENT REPRESENTATIVE Matt Caruso, mcaruso@nrha.org SOUTHERN REGION SALES DIRECTOR Scott Gilcrest, sgilcrest@nrha.org BUSINESS DEVELOPMENT REPRESENTATIVE Jordan Rice, jrice@nrha.org CANADA John Magner, 500 Queens Quay W., #101W Toronto, ON M5V 3K8 416-598-0101 x220; Fax: 416-598-9191, jmagner@yorkmedia.net

EXECUTIVE STAFF PRESIDENT & CEO Bob Cutter VICE PRESIDENT OF FINANCE & BUSINESS SERVICES David Gowan

MEMBER SERVICES

800-772-4424, nrha@nrha.org

STATE & REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 201 Frontenac Ave., P.O. Box 8033 Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 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.

NRHA CANADA NRHA CANADA Michael McLarney, +1 416-489-3396, mike@hardlines.ca 330 Bay Street, Suite 1400, Toronto, ON, Canada M5H 2S8

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2020 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: For price quotations, contact the Editorial Department at 317-275-9400 or fax requests to 317-275-9403. Printed in the USA.

HARDWARE RETAILING | April 2020

TRAINING MANAGER & EDITOR Jesse Carleton, jcarleton@nrha.org RETAIL OUTREACH COORDINATOR Renee Changnon, rchangnon@nrha.org EVENT MANAGER & RETAIL SUPPORT Katie McHone-Jones, kmchone-jones@nrha.org

RETAIL LEADERSHIP INSTITUTE EXECUTIVE DIRECTOR Scott Wright, swright@nrha.org

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES CIRCULATION DIRECTOR Richard Jarrett, 314-432-7511, Fax: 314-432-7665

DO IT BEST HELPS WOOD SHED LUMBER & HARDWARE SUPPLY LOOK INWARD—AND GROW OUTWARD.

“We wanted to find new ways to serve

Do it Best member-owners Sharona and Cecil Eiserer always thought they

our customers actually are.”

were solely a contractor-driven business. But through powerful research and analysis programs from Do it Best, they discovered a steady stream of do-it-yourselfers were already coming into their store. The Eiserers jumped on the opportunity to serve this untapped market. With help from our Signature Store Design and Retail Performance teams, TM

they redesigned a larger store, adding The Color Bar and introducing TM

popular housewares brands to deliver a fresh shopping experience for all their customers. Sharona and Cecil’s investment has paid off. Sales have more than doubled, and Wood Shed Lumber & Hardware Supply is now the community’s go-to DIY store while still meeting all their pros’ needs.

» How well do you know your customer base? Do it Best can help identify your strongest customers and show you how to serve them best. Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestonline.com.

our customers—it helped to learn who Sharona Eiserer Wood Shed Lumber & Hardware Supply

Contents APRIL 2020 | VOLUME 218 | ISSUE 4

“We wanted to respect and maintain the legacy of Pleasants Hardware” —Joe Taylor, Taylor’s Do It Center

Departments On the Web . . . . . . . . . . . . . 06 Editorially Speaking . . . . . . . 08 Taking Care of Business . . . . 10 NRHA News. . . . . . . . . . . . . 12 Trends . . . . . . . . . . . . . . . . . 18

New Products . . . . . . . . . . . 20 COVER STORY

Under New Ownership

When Taylor’s Do it Centers bought Pleasants Hardware, the Pleasants staff wasn’t sure what to expect, but they soon discovered the new owners valued them and wanted their beloved brand to thrive. Learn from both teams about how to ensure a smooth ownership transition.

PROFILE

Start Talking

A New Generation

Get tips on how to start uncomfortable conversations about the future of your business from communications consultant Courtney Ramsey.

Learn how Monica and Patrick Mede are expanding the foundation her father and grandfather laid for the family business, Ulmer’s Drug & Hardware, in Alaska.

CATEGORY SPOTLIGHT

The COVID-19 Impact

Learn about the 2020 colors of the year and get tips for how to use color to drive more sales to your paint department.

Read how the COVID-19 pandemic is affecting the industry, and find out how your peers are taking action and supporting their communities.

ADVOCACY

RESOURCE REVIEW

You Are Essential

Here’s a Good Read

NRHA and industry executives signed onto a letter urging the government to classify hardware as essential retail operations. Read the letter here.

Retailer Megan Menzer of Newton’s True Value recommends the book “The Hero Effect” as a good motivator for improving customer experiences.

HARDWARE RETAILING | April 2020

Newsmakers . . . . . . . . . . . . 64 Last Word. . . . . . . . . . . . . . . 66

On the Cover Pleasants Hardware store manager Melissa Jenkins and general manager Darrell Campbell had a smooth transition when their operation was bought by another company. Photo by Kyle LaFerriere Serving Hardware, Home Center & Building Material Retailers

INDUSTRY NEWS

Cool Colors

SUCCESSION PLANNING

Checkouts . . . . . . . . . . . . . . 30

Smooth Moves Help Your Team Adjust to New Ownership Page 36

Volume 218 • Issue 4 • April 2020 • hardwareretailing.com

Boost Paint Sales by Selling to Color Page 48

Industry Impact: COVID-19 Page 56

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On the Web

TRAINING

NRHA Makes Online Training Easy Does your team need a boost in product knowledge and selling skills? If so, then it’s time to assess your employee training program. With an NRHA Training Membership, your team will see marked improvement across several crucial components of hardware retail. Available programs include Selling Skills, Loss Prevention, Merchandising, Basic Retail Pricing, Basic Retail Accounting and more. Visit nrha.org/online-training to learn about the options you have to build your team’s knowledge.

INDUSTRY NEWS

OPERATIONS

Stay Informed and Make a Plan

New Sheriff in Town

Across the industry, home improvement wholesalers and suppliers are canceling or postponing their markets due to COVID-19. Head to TheRedT.com/covid for the latest updates on the pandemic, and get links to resources to keep your business, your team and you and your family safe.

Whether you are brand new or recently promoted to a managerial position, take a look at these tips to be sure your staff makes a smooth transition. Visit TheRedT.com/new-leadership to check them out now.

SUCCESSION

Making Time to Talk Once you start the conversation about succession planning, have each person involved create a calendar with their goals throughout the process. Head to TheRedT.com/succession to download a sample calendar to see some recommended milestones. OPERATIONS

How Retailers Are Using Instagram Social media is a great tool for retailers to communicate with customers, so it’s easy to see why so many retailers are using it to stand out and show off their brand. Check out TheRedT.com/instagram-retailers to see some examples of successful Instagram posts based on what NRHA is seeing from the retailers it follows. Be sure to follow NRHA on Instagram at @NRHA_official.

HARDWARE RETAILING | April 2020

Stay Connected @HardwareRetailing @hardwareretail

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Editorially Speaking

Opening the Lines Communicate With Your Team to Build Trust and Ease Concerns

oday is my birthday. Not the day you’re reading this, obviously, because I can’t control when or if people read these things (if only). But the day I’m writing this is my birthday. It’s also, coincidentally, the 120th anniversary of the founding of the North American Retail Hardware Association (NRHA). I don’t know how many stars aligned or paths needed to cross to get me to eventually work for an organization with which I share a birthday, but however it happened, I’m pretty happy about it. I have the privilege of working for a company that I’m proud to work for, and I don’t know how many of my peers can say the same about their employers. I know when I come into work every day that the people around me will be engaged in the work they’re doing and supportive of their team members. Starting on Page 36, our cover story this month features the team at Pleasants Hardware, which operates eight locations in Virginia. The article highlights how the team reacted to the news that their company was being bought by Taylor’s Do it Centers, another independent hardware chain. The staff had big-picture questions, like the financial security of the business, but there were also day-today questions, like whether the dress code would remain. To some managers and owners, maintaining a dress code may seem trivial in the grand scheme of something like purchasing a chain of hardware stores. But to the people working on the salesfloor every day, whether they can still wear jeans to work could be a significant consideration. And, of course, it’s not really about the jeans. It’s about whether the new company understands the culture of the existing operation and how the cultures will blend to function together. So, when you think about it, the dress code is a big-picture consideration after all. A crucial takeaway you’ll get from this story about the transition of ownership is the importance of communication

from top to bottom. One thing I learned early on in my career here at NRHA is that the executive team takes communication at all levels within the company very seriously. It’s great to know that everyone knows each other’s names, and if I have a concern or a question, I feel comfortable taking it to anyone, and I encourage the people who report to me to do the same. There are a lot of uncertainties happening in the world right now, with a pandemic affecting global health and the economy. It will definitely affect the local communities you serve and the people you employ, if it hasn’t already. Retail businesses have a challenging role during these types of situations, especially retail businesses that sell lifesaving supplies. You don’t have the benefit of implementing a work-from-home policy, and as a business owner, you may have concerns about how to cover shifts if someone gets sick or make payroll if sales are sluggish. I can’t tell you in this small space what solutions will or won’t work for your operation, but I can recommend a first step: communicate. If you don’t already have an open-door policy, I encourage you to open the lines of communication in your operation. While it’s not necessary to share all the details of how your business functions with everyone on your team, open communication can put your staff at ease during difficult situations and will make them more willing to come to you when something small feels big.

“If I have a concern or a

question, I feel comfortable taking it to anyone, and I encourage the people who report to me to do the same.

HARDWARE RETAILING | April 2020

”

Melanie Moul Managing Editor | mmoul@nrha.org

THE QUIKRETE is making an impression on your customers long before they ever step foot in your store. With an unparalleled mix of marketing and merchandising tools, QUIKRETE is connecting with your customers in a meaningful way throughout the project planning and buying process. To learn how QUIKRETE supports your business, visit www.QUIKRETE.com.

Taking Care of Business

Safely Meeting This Challenge There Is Value in Prudence and Precaution

t seems as if once every generation, we encounter these moments. The times when everyone knows that something big is happening, and it is unlike anything we have collectively experienced before. Those moments when, 20 years from now, people will reflect on “where they were when...” The unfortunate truth about these times is that they are all-too-frequently tied to a tragedy or challenging event. This is where we find ourselves today. Our country and the rest of the world is wrestling with how best to deal with a virus that has the potential to cause grave harm to large swaths of our population. As I write this column, communities throughout the U.S. have already responded by closing school systems, suspending gatherings and encouraging limited contact between individuals. Honestly, I don’t know if this is the beginning, middle or end of the steps that will be required to stem the spread of this pernicious outbreak. The truth is, by the time you read this column, we will have a much better idea of how the virus is spreading and how we are all responding to this pandemic. For now, however, what I do know is that for our society to make it through a challenge like this, or any challenge that rises above the standard, there are several critical factors that are required. First, it is important that everyone keeps their heads. During trying times, there can be a fine line between caution and carelessness. I would encourage everyone to look at the facts delivered by reputable institutions and make decisions for themselves and their families based on guidance from those organizations. The internet can be a great communications tool, but it can also serve as an easy distraction from facts and hard evidence. Next, I would encourage you to exercise prudence when making business decisions. In the case of this virus, caution and precaution seem to be the best course for defeating it.

While hardware stores and home centers are undoubtedly “essential retail” when it comes to keeping communities and homes safe and functioning properly, it is important to consider how to keep your business running while protecting your staff, customers and community. You, nor anyone on your team, should consider putting your own health at risk just to keep the doors open. Lastly, remember that it is from the darkest, most challenging times that we often discover (or rediscover) the importance of qualities that bring us together like empathy, compassion and caring. Sometimes we tend to focus too much on the negative. We flock to the stories about people hoarding hand sanitizer or coughing on the subway and ignore the much more mundane acts of humanity we are seeing from health care workers, first responders, volunteers and neighbors. When we look back 20 years from now and remember the way we all reacted to this greatest challenge of the new decade, no one will recall how much they sold or what their gross margins were. Instead, it’s my hope that our memories will center around the roles we all played in helping our families, friends and neighbors rise above this challenge and how sometimes trying times can remind us all that we have much more in common than we might think.

“When we look back 20 years from now and remember the way we all reacted to this greatest challenge of the new decade, no one will recall how much they sold or what their gross margins were.

HARDWARE RETAILING | April 2020

”

Dan M. Tratensek Executive Editor | dant@nrha.org

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NRHA News

Happy Birthday to Hardware Retailing Podcasts

ne year ago, Hardware Retailing stepped into new territory, launching two industry-specific podcast series to provide retailers and channel partners with a new way to hear what’s going on with home improvement. Today, subscribers have access to more than 25 podcast episodes featuring retailers, wholesale executives, industry experts and more. Better yet, 2020 is just getting underway, and Hardware Retailing looks forward to bringing exclusive stories with special guests all year long.

Hardware Retailing Podcasts • In “Taking Care of Business,” Hardware Retailing executive editor Dan Tratensek interviews a variety of guests, including high-profile retailers, industry experts and wholesale executives, to understand trends, challenges and opportunities facing the industry today. • “Tell Me More” with Renee Changnon, NRHA retail outreach coordinator, dives into the world of retail in a different way. Changnon’s podcast offers unique stories from retailers who are bringing new perspectives to the industry. Search for podcast episodes, subscribe and listen at TheRedT.com/pod.

HARDWARE RETAILING | April 2020

Find April Podcasts at TheRedT.com/pod Taking Care of Business April 9: Boyden Moore, Orgill Hear Orgill’s new president and CEO talk about his vision for the largest independent distributor in the industry and how he sees home improvement retailing evolving to meet the needs of today’s consumer.

Tell Me More April 23: Ted McDonald, Boltz Hardware Renee Changnon and Ted talk about the history of the Martinsburg, West Virginia, business, his decision to take on ownership and his plans for the 90-year-old operation.

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because our building products perform under the toughest conditions and are backed by the best service and technical support in the industry. We’re dedicated to making your customers’ jobs easier. Stock your shelves with what the pros demand. Visit go.strongtie.com/products today.

NRHA News

Trainer’s Corner: 6 Painting Tips

ainting is likely one of the most common projects homeowners are willing to tackle. No matter their level of experience, you want to help them achieve the most professional job possible. If you help them complete a successful finish, they’re likely to come back to you for their next project. This month’s Trainer’s Toolbox lesson, “6 Painting Tips,” is designed to boost your employees’ project knowledge. The lesson covers interior painting project tips that correspond with some of the key add-on sales that accompany a paint project. This free guide is available on nrha.org/trainers-toolbox. Download the PDF to use in a staff meeting or let employees view it on their own. Before you teach employees some of the finer points of painting, make sure they have a solid foundation in the basics. Start by having them review the Paint and Decorating department from the Basic Training Course in Hardware Retailing. Next, have them go through the Painting and Priming Interior Walls module of the Project PRO course.

These two courses are available to NRHA Training Members. Call Members Services at NRHA today at 800-772-4424 to sign up for your training membership and to learn more about the opportunities and programs that are available to you through your association.

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HARDWARE RETAILING | April 2020

NRHA News

Find NRHA on Social to Stay Connected

epresentatives from your association are often on the road and attending events to bring you the latest industry information via social media. NRHA is currently practicing social distancing in light of the COVID-19 pandemic, but we will continue to post news, photos and updates to social media. Follow us on Instagram, Facebook and Twitter to discover photos and trends—and to stay up to date on industry information.

Find NRHA on Social Media Facebook @NorthAmerican RetailHardwareAssociation Twitter @NRHA_Official Instagram @nrha_official

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NRHA News

Participate in the Cost of Doing Business Study

RHA is now collecting information from independent U.S. hardware stores, home improvement centers and lumberyards for the 2020 Cost of Doing Business Study. NRHA confidentially collects financial data from thousands of independent retailers to complete the Cost of Doing Business Study, which helps retailers understand how their business compares

to typical and high-profit operators in the industry. It also allows retailers to determine ways to increase profits and strategize for their financial future. Participation is free and confidential and grants participants access to the study’s results. To learn more or sign up, visit nrha.org/codb.

How to Participate Participate in the Cost of Doing Business Study to gain access to the study’s results and to help retailers like you. The information you provide is confidential. Choose from four different ways to send your information to NRHA at: Attn: CODB Coordinator 9783 E 116th St #29, Fishers, IN 46037 Option 1 Complete the Cost of Doing Business Study form and upload your documents online at nrha.org/codb. Option 2 Email your company information and 2019 year-end financial statements to NRHA. Option 3 Print and complete the survey and mail it to NRHA. Option 4 Fill out the “company information” section of the survey and attach a copy of your 2019 year-end financial statements and mail them to NRHA.

2020

Cost of Doing Business Study Financial and Operational Data for Hardware Stores, Home Centers and Lumber/Building Materials Outlets

HARDWARE RETAILING | April 2020

NRHA News

RMCP Session 1 Deadline Extended

he deadline to apply for Session 1 of the NRHA Retail Management Certification Program (RMCP) has been extended to May 1. The first program visit for Session 1 will take place in June in Indianapolis. RMCP is the only home improvement industry program that prepares owners and high-potential employees with profit-focused store operations training. This six-month retail training program

is designed to allow students and their stores to see a return on investment through class training and homework, an individual business improvement project and Quick Wins. At the end of the course, the students will present their business improvement projects—which will be implemented at the businesses where they work—to a room of their peers, business owners and a panel of expert judges.

! T H G I N A Z Z I P S S I IM

Students from the RMCP 2019 Session 2 discussed their business improvement projects that each student completes as part of the program.

More Information Session 1 Dates Visit 1: June 9-12, 2020 Visit 2: Aug. 11-14, 2020 Visit 3: Oct. 13-16, 2020 Course Curriculum This program dives into the core components of operating an independent hardware store, home center or lumberyard, including:

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April 2020 | HARDWARE RETAILING

Trends Monitoring the Market Use the following industry metrics to anticipate emerging trends and opportunities in the channel. Data is not seasonally adjusted, meaning these graphs represent real-time shifts in the market.

Analyze total retail sales for building material and garden equipment centers to track your business’s performance against national averages.

Understand consumers’ desire to save or spend by gauging overall consumer confidence levels.

Serve customers renovating or upgrading homes more effectively by observing housing starts and existing home sales.

Consumer Confidence

Monthly Retail Sales (Building material and garden centers; in millions)

(Measured by surveys sent to U.S. households; in basis points)

150

JAN ‘20

NOV

OCT

SEP

AUG

JUL

MAY

APR

JUN

DEC

$20

MAR

$30

FEB

JAN ‘20

DEC

NOV

OCT

SEP

AUG

JUL

MAY

APR

JUN

MAR

FEB

120

$40

$10

Existing Home Sales

Housing Starts

600

500

(in thousands)

400

300

200

100

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN ‘20

Sources: The Conference Board; U.S. Department of Commerce, NAICS 444; National Association of Realtors; U.S. Census Bureau

HARDWARE RETAILING | April 2020

New Products Novelty Socks Gumball Poodle’s socks are unisex one-size-fits-most and come in a variety of styles. They are made from a cotton-polyester-spandexrubber blend and are machine washable. Gumball Poodle gumballpoodle.com

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Reciprocating Saw Blade The Starrett line of 3X Power Bi-Metal Reciprocating Saw Blades features reinforced shanks and is available in wood cutting, metal cutting and multimaterial blades. They are designed to cut more efficiently, enabling users to make up to three times the number of cuts than conventional blades and are engineered for use on both corded and cordless saws. L.S. Starrett Co. 978-249-3551 or starrett.com

Handheld CNC Router The Shaper Origin is a handheld CNC router that combines computer-guided accuracy with handheld familiarity. Origin locates itself in a workspace and makes continuous real-time adjustments while the user is cutting. Users can make adjustments on-site, with no computer required. It features a dust collection port and includes an adapter hose compatible with most portable dust collectors. Origin is Wi-Fi enabled for receiving software updates and design file transfers via ShaperHub and has a USB port for offline file transfers. Shaper Tools LLC 888-281-1012 or shapertools.com

Send a note to editorial@nrha.org with the details about products you can’t keep on the shelf. Include your name, your business name and a few reasons why you or your customers would love it to be considered for publication.

HARDWARE RETAILING | April 2020

Zero-Turn Mower Ariens® Edge brings the comfort, speed and versatility of zero-turn precision to homeowners. Intuitive controls make it easy to maneuver through smaller yards with a fast, clean cut. Available with a 34-inch stamped deck, or a 42- or 52-inch fabricated deck, the Edge features a foot-operated deck lift for quick and easy cutting-height adjustment and a high back seat with natural airflow. Ariens ariens.com

Wall-Mounted Garage Door Opener The Genie® Wall Mount Pro Series Garage Door Opener eliminates the traditional rail and powerhead design and attaches directly to the garage door’s spring tube. The compact motor fits between the track and the wall. An available battery backup prevents homeowners from being locked out during power outages. The Genie Co. 800-354-3643 or geniecompany.com

Heavy Duty Truck Rack WEATHER GUARD®’s Heavy Duty Steel Truck Racks have a 1,700 pound load capacity and can accommodate three ladders side by side. It maximizes space and capacity to help construction professionals and truck owners transport bulky cargo. They can be installed drill-free in under an hour and are designed to be one-size-fits-all. WEATHER GUARD® 800-456-7865 or weatherguard.com

Car Air Freshener FRSH Car Air Fresheners feature iconic automobile-related quotes specially selected and curated to complement a driver’s favorite car. Fragrances include strawberry, lavender, pineapple, Bahamas breeze, vanilla, cherry, eucalyptus, forest, coconut, jasmine, new car scent and more. Ride FRSH 951-434-0064 or ridefrshwholesale.com

April 2020 | HARDWARE RETAILING

New Products Electric Staple Gun The E21 Cordless Electric Staple Gun by Arrow Fastener features a soft, overmolded grip, up to three hours of battery life and has a battery status indicator. The E21’s lithium-ion battery platform makes it ideal for projects like upholstery and crafting, as well as any application where power cords are a limitation. It fits in most toolboxes and includes a standing base. Arrow Fastener Co. 800-776-2228 or arrowfastener.com

Hot Water Dispenser Faucet InSinkErator’s line of new hot water dispenser faucets provides instant-on steaming hot water or cool drinking water. They feature all-brass dispenser construction and a push-down safety handle for hot water. The spout swivels 360 degrees to make filling pitchers and pots easier. They’re designed to coordinate with standard modern kitchen faucets and are available in chrome, satin nickel, polished nickel and matte black finishes. InSinkErator 800-558-5712 or insinkerator.com

HARDWARE RETAILING | April 2020

Cordless Lawn Mower Makita’s 18V X2 LXT® Cordless Lawn Mower includes four batteries and a dual-volt rapid charger. The brushless motor delivers 2,500-3,300 RPM for cutting with single lever cutting height adjustment. It can cut up to 7,300 square feet on a single charge of two batteries. Makita USA Inc. 800-462-5482

Capped Screws The Znal™ zinc/aluminum capped screw has a patent-pending design with a nick tip that enables users to improve drill time by up to 0.59 seconds faster per screw. It is available in #12 and #14 diameters in lengths from 7 ⁄8 inches to 2½ inches. The Zamak 5 alloy improves strength over other alloys, and the indented cap seats with all major brands of hex driver bits. Red Rock Distribution 262-444-9025 or redrockfasteners.com

Pry Bar Mayhew Tools’ Dominator® Pro series features an ergonomic tri-lobular handle that fits the palm of the hand naturally. Patented linear ribs around the neck ensure maximum transfer of torque. The hardened and tempered alloy steel shaft has a black oxide finish that resists corrosion. Dominator Pro Pry Bars are available in both straight and curved blade styles. Mayhew Tools 800-872-0037 or mayhew.com

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HARDWARE RETAILING | April 2020

Wood Fuel PelletsBear Mountain Grilling and Smoking Pellets pair perfectly with foods and boost flavor. Made from sustainable, 100 percent all-natural hardwood, including hickory, apple, alder, cherry and more. Bear Mountain pellets are sourced from pellet mills across the United States and are kiln dried. Bear Mountain bearmountainbbq.com or 800-544-3834

Balcony Garden Tierra Garden’s Vigoroot Balcony Garden is ideal for growing vegetables and herbs in small spaces. The multitier planter’s air pruning fabric provides excellent drainage for healthy root systems. It supports a wide variety of vegetables, herbs and more and is perfect for small corners of gardens or balconies. Tierra Garden 800-992-1220 or tierragarden.com

Digital Box Beam Level

Hand Lotion

Keson’s Digital Box Beam Level features an adjustable inclination display, a hold function for storing measured values and transferring angles and audible signal guidance. Two-material endcaps offer protection from damage due to drops. The high-contrast vials are tension-wedge mounted and the level features a single measuring surface. It includes a carrying case.

Industrial Strength Hand Healer by Jack Black® provides instant relief for dry, chapped or cracked hands. The nongreasy formula includes vitamins A and E, macadamia nut oil and other moisturizers to diminish calluses and heal unsightly cuticles. It dries to a smooth finish, leaving minimal residue.

Keson 800-345-3766 or keson.com

Jack Black 877-766-3388 or getjackblack.com

Make it Personal

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April 2020 | HARDWARE RETAILING

New Products

“This is the most popular blower for our landscaper customers.

It’s really powerful and has high wind speed to move a lot of debris, so landscapers can work quicker.

—Mike Benson, Central Valley

”

Backpack Blower STIHL’s BR 600 backpack blower features a purge pump primer designed to enable easier starting while preventing the engine from flooding with fuel. The engine exceeds EPA exhaust emission standards and has a built-in stop switch. When the engine is off, the throttle lock automatically returns to the start position. It is equipped with an adjustable support harness and anti-vibration system to reduce operator fatigue. STIHL® Inc. 800-467-8445 or stihlusa.com

Touch Showerhead American Standard’s Spectra eTouch™ showerhead allows users to switch between four spray modes with a touch of the outer ring. A waterproof remote control is included for even more flexibility. The showerhead has a 1.8 gallon per minute flow rate, is CALGreen Compliant and CEC Listed. American Standard 800-442-1902 or americanstandard.com

HARDWARE RETAILING | April 2020

Cordless Vacuum The unique three-in-one design of Miele’s TriFlex Cordless Stick Vacuum allows users to switch between three configurations providing flexibility to fit their needs. It features Vortex Technology to provide power and a Multifloor XXL Intelligent Electrobrush which adapts to different flooring. The rechargable and replaceable lithuim-ion battery provides up to 120 minutes of cleaning. Miele 800-843-7231 or mieleusa.com

Magnetic Ratchet Strap Fusion Grip’s ratchet straps feature neodymium magnets to hold the hooks securely in place while the user secures the strap. Fusion Grip 903-453-1168 or fusiongrip.com

New Products Tankless Water Heater Eemax’s HomeAdvantage II Tankless Water Heater offers on-demand hot water and uses simple NPT fittings that require no soldering. The unit mounts directly to the wall with common hardware and is compact enough to fit under cabinets. It features copper heating elements with brass termination to increase durability. Eemax 800-543-6163 or eemax.com

Asymmetrical Sink Reminiscent of hand-thrown Japanese pottery, TOTO’s Kiwami Asymmetrical Vessel Lavatory’s features an elliptical off-balance design. It is made of Linearceram, which has almost twice the strength of fireclay with only half the thickness of a conventional basin wall. Its proprietary glaze prevents debris from sticking and ensures easy cleaning. The Kiwami Asymmetrical Vessel Lavatory is also offered in a matte surface. TOTO USA 888-295-8134 or totousa.com

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Vinyl Flooring

“We can order one project at a time,

no minimum orders, and it doesn’t take up a lot of floor space. It gives us a good retail price that’s competitive with the bigger stores. —Alan Koenig, Branson Ace Hardware

”

Cali Vinyl’s plank collections feature commercial-grade durability and have realistic hardwood grain patterns. They have a 20 mil wear layer and are 100 percent waterproof, simple to install and easy to clean. Cali Vinyl 888-788-2254 or calibamboo.com

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April 2020 | HARDWARE RETAILING

Checkouts

Keeping the Old

he prior lives of Joseph Hardware’s unique building have left traces behind. The Joseph, Oregon, hardware store has 18-foot ceilings, rustic beams, brick and old metal throughout the building from the days when the facility was a tractor dealership. The building, constructed in 1917, also used to house a gas station and a machinery repair shop. Sometime in the 1950s or 1960s, it became a bowling alley and that’s where it got its eight polished bowling lanes. Joseph Hardware owner James Johnson bought the structure, contents and all, in 2013, two years after the bowling alley closed. His family’s home improvement business was growing and needed more than the 3,500 square feet of selling space it had. Johnson had to rip out a commercial kitchen, drop ceiling and laminate bowling lanes. But he wanted to keep elements of the old building for the sake of local people’s nostalgia and as conversation starters. When removing the modern bowling lanes, he discovered a treasure. “We didn’t know that underneath was this gorgeous 2 1⁄4-inch maple hardwood,” Johnson says. To keep the bowling lanes, he had the gutters ripped out around them and built up the rest of the floor to lay evenly with the lanes. “There are just really cool things about this building that don’t get in the way of our business,” Johnson says. “We may not know what everything was used for, but they’re conversation pieces.” Johnson’s business has expanded in the building and customers enjoy talking about what the place used to be. “It’s nothing you can replicate these days and it really fits our model as a hometown hardware store,” he says. “There’s a lot of history in the area.”

Joseph Hardware in Joseph, Oregon, is located in a building that has housed a variety of businesses, including a tractor dealership, gas station, repair shop and bowling alley. Owner James Johnson chose to keep some of the structure’s old features, including wood from the bowling lanes, to make the store unique.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Send an email to editorial@nrha.org to have your story considered for publication. 30

HARDWARE RETAILING | April 2020

UPSELL

SCREENING OPTIONS Visibility, Water Shed Technology Heavy-duty Screen Sun Control

phifer.com

Organized by Bucket Small Town Supply in Gouverneur, New York, displays loose merchandise in steel buckets as a creative and tidy substitute for dump bins. The store uses the buckets to separate types of items, ranging from neon green kitchen spatulas to odds and ends like extension cords and boxes of wire connectors.

Spreading Valentine’s Love For Valentine’s Day every year, Pellicci Ace Hardware invites its Farmington, Minnesota, community to buy gifts for residents living in area nursing homes. General manager Amanda Stender suggested the idea four years ago and it’s now a tradition. In 2020, Pellicci customers bought Valentine’s cards, chocolate bars and flowers for 200 people at three nursing homes. Stender, members of her family and another Pellicci employee delivered each gift and card personally. “Some of the residents never have visitors, so for us to come in their room and chat and give them a valentine is really special,” Stender says. “They absolutely love it.”

HARDWARE RETAILING | April 2020

Parked Out Front The antique-style miniature car parked in front of Billings Hardware in Billings, Montana, has a decorative life. It serves as a lawn ornament in the winter, a display for live flowers in the spring and summer and a spot for photo ops in the pumpkin patch come fall. “Customers like the character things like that bring to our garden center,” store owner TJ Comstock says.

Painted Pink for a Cure Bliffert Lumber & Hardware in Milwaukee, Wisconsin, bought a new delivery truck and painted it pink to show the company’s commitment to a cause. The business has promised to support efforts to combat breast cancer by donating 20 cents for every mile the truck drives in 2020 to Susan G. Komen Wisconsin. The truck will drive up to 30,000 miles this year, but may drive more if customers start requesting deliveries in the truck to grow the donation size.“ “We wanted it to be a permanent reminder of the fight to end breast cancer,” marketing director Lisa Bliffert says. “Breast cancer has affected many families and friends in our company and community. With this pink truck, we hope to create awareness every day.”

Mike Kimball, CEO - Ian Williams, COO Fresno Ag Hardware, Fresno, California

“Our philosophy as a company is to always be an asset to our community. That means it’s up to us to make sure we’re working with suppliers that best serves our customer’s and client’s needs. Midwest Fastener continues to exceed expectations by providing an amazing product selection, competitive pricing and quality customer service that you can’t find anywhere else.” – Mike Kimball, CEO

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Melissa Jenkins (left) and Darrell Campbell of Pleasants Hardware helped staff through a new ownership transition.

O N

T H E

C O V E R

Under New Ownership M A K I N G A N A C Q U I S I T I O N T H E B E S T- C A S E S C E N A R I O BY K AT E K L E I N

KKLEIN@NRHA.ORG

uestions raced through Melissa Jenkins’ head when she learned Pleasants Hardware had sold. What would happen to her employees? How much would the company she loved change? Buyers Russ and Joe Taylor, who own 11 Taylor's Do it Center locations in Virginia Beach, Virginia, expected the staff at Pleasants Hardware to worry. Any transition in ownership can bring instability to a business and myriad changes for employees. Many Pleasants employees didn’t know their company was for sale before the Taylors announced the acquisition. Some of them had worked for Pleasants for decades. And even the workers without long tenures were loyal to the operation’s history and brand. The Taylors quickly addressed employees’ worries by initiating conversations at store meetings, offering incentives for workers to stay and assuring the staff the Pleasants brand would remain. Read on to learn how their efforts kept most of the employee team together and discover the steps buyers should take to make an acquisition a positive experience for the staff.

HARDWARE RETAILING | April 2020

Respecting a Brand

In 2016, a business broker approached Taylor’s Do it Centers to gauge the owners’ interest in buying a chain of seven hardware stores. The Taylors didn’t know the name of the business that was for sale or where it was located, but were curious. To their surprise, the chain was Pleasants Hardware, a company with stores located less than two hours away in Richmond, Virginia. The company is well established in its community and was an operation the Taylors admired. “We knew the folks who operated Pleasants Hardware and shared ideas with them over the past 20 years,” Taylor’s president and CEO Joe Taylor says. “It was extremely exciting for us, so I was ready to engage.”

Joe Taylor is very hands on and clearly wants us to succeed. I think that involvement is a driving force. —M E L I S S A J E N K I N S , P L E A S A N T S H A R D W A R E

company again. They understood Pleasants employees and customers loved the history, stores and branding. Finding ways to consolidate operations after the purchase to improve efficiency was important to the Taylors, but they also knew they didn’t want to go in and change everything. For one, the Pleasants stores would keep their name. The Taylors knew they would save money on marketing by converting the Pleasants stores to Taylor’s Do it Centers branding because they wouldn’t need to manage and promote two brands. However, they also knew the community valued the Pleasants family’s contributions to the area and the business they created. “We respected that branding, even though we knew it was an expensive way to go,” Taylor says. “We wanted to respect and maintain the legacy of Pleasants Hardware.”

Pulling Together The Pleasants family had founded the business in 1915. The Hatcher family, who acquired it later, sold it to a local food products company, C.F. Sauer Co., in 1989. C.F. Sauer Co. was ready to get out of the home improvement business in 2016. The Taylors, who have nine family members working in their operation, were eager to make Pleasants a family-owned

Jenkins, who was an assistant store manager at the time, wasn’t at work the day the Taylors announced they were buying Pleasants Hardware. She got a phone call from Pleasants general manager Darrell Campbell who delivered the news.

Pleasants Hardware store manager Melissa Jenkins was initially concerned when she heard the company was purchased by Taylors Do it Centers, but a supportive transition from both companies eased her fears.

“He wanted to be sure people who weren’t there didn’t miss the news,” Jenkins says. “My first reaction was, ‘What is going to change?’ My store manager felt like it was a perfect segue for retirement. I was wondering who my manager would be.” Employees were full of questions about their job security, health insurance and earned vacation time. “There was fear of the uncertainty, and, of course, it took some time to get our footing,” Jenkins says. “But those fears were unfounded. Joe Taylor is very hands on and clearly wants us to succeed. I think that involvement is a driving force. He came in and made a very comforting speech with an action plan.” Reassurance from Campbell and the Taylors meant Jenkins never considered leaving, and she moved from an assistant store manager role into a manager position as part of the transition. Losing good employees could have damaged Pleasants, so Campbell was concerned about what would happen to the company. “I didn’t know if there was going to be a wave of people leaving,” Campbell says. “I was worried.” Like Jenkins, most of the Pleasants team appreciated the Taylors’ efforts to show they valued the Pleasants people and brand, so they stuck together.

Protecting the People

An important step the Taylors took prior to finalizing the purchase of Pleasants Hardware was developing a relationship with Campbell, the company’s general manager, and getting him on board with their plans. Up front, the Taylors offered Campbell financial incentives to stay with the company and assured him he was important to them as an employee. In turn, Campbell helped with the ownership transition. Campbell was protective of the Pleasants employees and served as an advocate for them. “I thought of the Pleasants staff as my people. I felt like I was responsible for them and I had to make sure they were taken care of,” Campbell says. “The Taylors made sure I had the tools to do that.”

Pointers to Help Employees Transition ACCORDING TO DARRELL CAMPBELL

BE PRESENT

The Taylors would go to the salesfloor in every store and make weekly visits. It was all about just being present and letting the staff know what they’d done well. COMMUNICATE EFFECTIVELY

I think a lot of people just need to know what’s going on, what’s expected and if they’re doing it right. ELIMINATE POOR PERFORMERS

When you eliminate the weakest links, it builds morale. If 20 percent of the people are doing 80 percent of the work, then reducing that gap means good people are no longer having to make up for someone else’s inability. FIND SOMEBODY ON THE INSIDE

Identify a staffer who knows all the players and knows who gets what done. You need to know who’s good and who’s bad, who to keep and who to get rid of. It shows the people who are doing the work that you’re going to make the business better. BE A ROLE MODEL

You can’t be aloof and expect people to follow you. Lead by doing. Be out there, engaged, in the middle of it, showing employees how to do it instead of telling them how to do it. Work with them side by side. They’re much more apt to follow you when they see you doing it.

Darrell Campbell Pleasants Hardware | General Manager

INVEST IN THE GOOD PEOPLE

Early in the process, identify the top performers and recognize them through raises, bonuses and benefits. Show them they are worth the investment. RESPECT CONCERNS

Understand that staff members are going to worry about their livelihoods and other details. Be supportive and ease their worries through authentic communication.

April 2020 | HARDWARE RETAILING

Changes were inevitable. An eighth Pleasants store wasn’t included in the acquisition because C.F. Sauer Co. had other plans for the building, so the team their lost their jobs. The Taylors relied on Campbell to identify the top performers from that store and invite them to apply for positions at other locations. In addition, Taylor’s Do it Centers is a member of a different wholesaler than Pleasants was, so all of the Pleasants stores had to switch. Shifting wholesalers meant changes to the product mix, packaging, prices and SKU numbers.

It was especially reassuring when they told us, ‘We are not here to change the Pleasants name. We are here to carry it forward.’ —M E L I S S A J E N K I N S , P L E A S A N T S H A R D W A R E

“Business doesn’t stop, so we were trying to learn all the new systems and all the new procedures. That was a pretty stressful time,” Campbell says. Some changes, such as replacing one line of greeting cards with another or discontinuing a few product sizes, upset customers and employees. “You’ve got to be sensitive. It’s a learning process,” Taylor says. “The customers were probably as anxious as the employees. They were concerned we were going to take out the merchandise they liked.” Taylor, Campbell and the managers took phone calls from customers and employees during the transition. When employees learned they were going to adopt the Taylor’s Do it Centers employee handbook, they wanted to know if they would have to buy new clothes to follow the Taylor’s dress code and give up wearing jeans to work. “People worried. Some little things were hard because change is hard,” Jenkins says. “It was especially

HARDWARE RETAILING | April 2020

reassuring when they told us, ‘We are not here to change the Pleasants name. We are here to carry it forward.’ It retained who we were.” The Taylors pushed forward with major changes, such as store remodels, but let go of some of the lower-priority things, like the Taylor’s dress code. Taylor’s employees have to wear business casual clothing to work, but Pleasants workers still get to wear jeans. Keeping the dress code was a big deal to the Pleasants staff, Jenkins says. “It shows that it wasn’t a takeover to change our entire culture,” she says. “Culture isn’t always one size fits all.”

Building Trust

When the deal went through, the Taylors hosted a press conference at one of the stores and assured the community that Pleasants Hardware wouldn’t go away. “We touched on all these positives at the press conference: Our business is family oriented. We’re only going to make the stores better. We know the hardware business. We want to be part of the community,” Taylor says. That communication was the start of getting employees to believe in the Taylors’ vision for Pleasants Hardware. “There was a lack of trust at first,” Taylor says. “It’s like building a friendship. It starts on day one, and you begin to gain people’s support by prioritizing being a team.” The Taylors worked with Campbell to offer bonuses, raises and benefits to good employees to demonstrate that the new owners valued the staff. C.F. Sauer had provided a better health insurance package than Taylor’s Do it Centers offered at the time, so the Taylors searched for an insurance company that would work with their comparatively small business to offer similar benefits. They also let employees keep their accrued vacation time and honored their years of service as if those years had been spent working at Taylor’s Do it Centers. Campbell did what he could to boost morale among employees at the stores as they learned about the work ahead of restructuring the staff, changing co-ops and remodeling the stores. “I was a general manager but I also became a therapist to some extent, trying to give them confidence that their job would still be available,” Campbell says. “Basically, I communicated that these guys didn’t buy this business to fail, and they can’t survive without quality people. It wasn’t too difficult to see the Taylors needed the employees to stay around.” The Taylors began investing in the business by remodeling stores and amping up the marketing for the Pleasants brand. Their investment built excitement and reinforced to the staff that they valued the business. The Taylors renovated all of the Pleasants locations, which hadn’t been updated in years. New signage, fixtures, merchandising and lighting transformed the stores to become more like the brightly lit, well-organized stores Taylor’s Do it Centers is known for in the Virginia Beach area. “The Pleasants employees loved it and embraced it,” Taylor says. “It really helped morale.”

Taylor’s Do it Centers president and CEO Joe Taylor (left) worked with Pleasants Hardware general manager Darrell Campbell to ease the transition for Pleasants employees when the Taylors bought their company.

Making a Better Company

Four years after the acquisition, both the Pleasants and Taylor’s teams believe they’ve built a stronger business together. “It was a true merger and not a conversion to Taylor’s,” Jenkins says. The Taylors have continued to invest in growing the company and opened an eighth Pleasants store in January. Despite eliminating underperformers and having some workers choose not to stay, Taylor’s only lost about 10 percent of the Pleasants staff immediately after the acquisition. A few more people left in the following year, but most of the 110 Pleasants employees are veterans. Some of them have hit 40th anniversaries of working for the business. “My worry was never warranted,” Campbell says. “We had a few employees leave for various reasons, but there was no big wave, no domino effect. Our core management

has stuck around, and four years later, our management group still looks very similar.” The Taylors made changes that have motivated employees, such as merit bonuses and salary raises based on performance evaluations. Taylor is frequently in the stores and is quick to recognize and applaud good work. “Without a doubt, I feel much more appreciated. It’s very easy to see that if you work, you get rewarded,” Jenkins says. Some key things haven’t changed, like Pleasants’ name and its customer service reputation in the area. “They didn’t come in and try to change our color scheme, name or logo. We have been Pleasants since 1915 and in 2020, we’re still Pleasants,” Campbell says. “Our stores are still filled with Pleasants blue, which is important, not just to employees, but also to members of our community. Families have memories and they say, ‘I remember when my dad took me here,’ or ‘I remember when my grandfather took me.’ It’s a Richmond institution.”

April 2020 | HARDWARE RETAILING

RESOURCES

DOCUMENTS

ADVISERS

COMMUNICATION

Talk The Talk 4 Steps to Effective Communication During the Succession Planning Process

n the home improvement industry, many operations are family businesses with several generations of tradition impacting decision-making. When it’s time for the previous generation to pass the baton to the next, sometimes tradition and discomfort about change can get in the way of starting conversations about the future. In this installment of Hardware Retailing’s succession planning series, retail communications consultant Courtney Ramsey explains the importance of succession planning for retailers and how to get over the hurdle of starting the conversation. “While change is necessary, almost everyone hates it,” Ramsey says. “Change brings out our biggest fears, and in the case of a small family

business or even a larger company with a strong culture, employees may be worried that the business’s identity will be lost in the transition.” Ramsey says core issues impacting small businesses, like succession planning, shouldn’t be delayed because of someone’s unwillingness to have the conversation. “Coaching leaders to success in communication all boils down to one thing: Getting them to actually have the conversation,” she says. “Finding the courage to initiate the conversation is often the hardest part.” Take the next step on your succession plan by reviewing Ramsey’s tips to communicate effectively during the process. Don’t be afraid to dig into upcoming challenging conversations to achieve the best results for everyone involved.

Courtney Ramsey has over 15 years of experience in learning and development and human resources. She helps retail companies develop stronger leaders and more productive employees. Ramsey has trained over 20,000 associates in leadership and effective communication, helping companies like Sephora inside J.C. Penney and Zales Corp. save millions. She earned her MBA and BBA in marketing from Texas A&M University and is certified as a Professional in Human Resources. She recently completed her first book, “Share Your Genius: 35 Tips to Create Training That Transforms.”

HARDWARE RETAILING | April 2020

NUMBERS

In every issue of Hardware Retailing in 2020, we will be highlighting a component of succession planning. In addition to catching up on all of the print content, see additional resources at TheRedT.com/succession.

Be Vulnerable

Start Discussions Early

Begin tough conversations by sharing your intent. It helps the other person understand where you’re coming from and can prevent a lot of miscommunication. State your true feelings about the situation and why you want to have a conversation. Avoid combative or accusatory conversation starters. Invite the person to a conversation instead of telling them they are going to talk to you. Say something like, “Dad, something’s been weighing on me for a while now and I’ve been scared to talk to you about it. I know I’ll get the honor of running this business one day, but we never talk about when or how. Will you talk with me about how you see that happening?”

Realize that you’ll never feel ready. No one wakes up one day with a new sense of confidence or feels ready to bring up these topics. You’ll always question the timing, but you have to take the first step and initiate the conversation. A lot goes into succession planning when it’s done well. Ideally, the person taking over truly wants the role and is properly prepared for it. The longer you wait, the less time you have to do it right. Take time to decide if the person you’ve chosen is actually the right choice. As an exercise following the initial conversation, have both parties create a calendar highlighting milestones or goals throughout the succession planning process. Find a sample calendar at TheRedT.com/succession.

Know Your Audience

Focus on Commonalities

When it comes to having a difficult conversation, be aware that what the other person says could set off your emotions. Set a plan to maintain your composure if that happens. Be sure to also consider the other party’s feelings and be prepared to mitigate disagreements. If things get heated, it’s okay to take a break and return to the conversation once emotions have subsided. If you anticipate the conversation being difficult, suggest meeting in a neutral place where there won’t be professional or personal distractions, such as a coffee shop or a local park. Serious conversations can happen in any atmosphere, as long as everyone involved feels comfortable.

While you and the other party who is working through the succession plan may initially disagree on how it will come to fruition, discovering the common goals and strategies you each have for the business is a strong first step to smoothing out challenges. Have each person who will have a primary role in the succession plan create a list of five long-term goals for the business. Then, compare your lists and see where there may be commonalities to start the conversation about executing your succession strategy. If you have different priorities, make a plan to talk about why those components are important to you.

April 2020 | HARDWARE RETAILING

Third in Line Alaskan Couple Continues Building a Family Legacy BY RENEE CHANGNON | RCHANGNON@NRHA.ORG

“Buying the business and moving back to onica Mede grew up in her family Alaska seemed like the best decision for our business, Ulmer’s Drug & Hardware in Homer, Alaska. As a young adult, she future,” Monica says. “We called my parents ventured away from home, met her and asked them if they would be willing to sell husband Patrick in Anchorage and the two moved it to us. My dad was elated. He was so happy to Texas. They were more than 4,000 miles away and relieved.” from family and friends in Alaska, but when her According to Patrick, the decision was father Scott Ulmer attended wholesaler markets, easy because he knew the two of them were she was quick to tag along. the perfect team to take over the operation. “I joined my dad at trade shows to spend time “Monica understood the business and the with him and still have employees, and I had a that connection to the great understanding of “I joined my dad at trade shows business,” Monica says. the financial side,” he says. to spend time with him and “During one trip, I asked “We worked with lawyers still have that connection to the him about his succession and accountants and plan and discovered he made the purchase business. During one trip, I asked didn’t have one. I knew he official in June 2016.” him about his succession plan and needed to do something Although transitioning discovered he didn’t have one. and I was worried about a business from one what would happen to I knew he needed to do something generation to the next our legacy.” isn’t always the easiest and I was worried about what Monica and Patrick path, Monica says she would happen to our legacy.” didn’t originally plan to was impressed by her return to Alaska to run father’s ability to step the business, and they back and let her and —Monica Mede, Ulmer’s Drug & Hardware loved having the chance Patrick take over. to live in large cities like “I’m so proud to be Houston. But they knew they wanted to be close to the third generation in my family to own and home as they planned to start their own family. operate Ulmer Drug & Hardware,” she says. After Monica came back from visiting with “When we returned in January 2016, my dad her father at a market, it was Patrick who showed us the ropes and was very encouraging. suggested they move back to Homer to buy Since we took over, he has done a great job of the business. letting us find our own way.”

Monica and Patrick Mede returned to Alaska to take over running Ulmer’s Drug & Hardware and start their own family, which now includes their daughter Nova.

April 2020 | HARDWARE RETAILING

A Cruise Destination When Monica and Patrick took over the business, they were walking into a well-established operation that the Homer community had been relying on since 1977. Monica’s grandpa, Eldon Ulmer opened a pharmacy in Anchorage in 1954. Scott grew up working in the drug store, and after graduating college, he suggested to his father that they open a combination drug and hardware store in Anchorage in the early 1970s. The combination proved successful, and he opened the current store in Homer in 1977. The business is in a strip mall and originally was just 5,000 square feet. As other businesses left, Scott bought empty units in the strip to expand his operation. “My earliest memories were being in the store, which was a fraction of its current size. In 2001, dad bought the entire building and did a big renovation,” Monica says.

In addition to the pharmacy, the operation includes the hardware business, an extensive camping and fishing category and unique niches, like the fabric department that draws locals and tourists. “Our community welcomes cruise ships of tourists, and fabric became a strong niche among travelers who like to find local fabric stores to get pieces to add to their quilts,” she says. “We try to embrace the niches the tourists and our local community want.” Other niches at Ulmer’s Drug & Hardware include toys, stationery and office supplies, housewares and sporting goods. Monica says offering strong assortments is nothing without dedicated people behind them. “We hire people who are passionate about the unique offerings we provide,” she says. “Their love of these different categories really helps us stand out and provide the best service we can to our customers.”

Ulmer’s Drug & Hardware in Homer, Alaska, has been in the same location since it opened its doors to the community in 1977. It has continued to grow in size and scope, offering its customers a wide array of products and unique niches.

HARDWARE RETAILING | April 2020

Sales on the Spit

One of the first big projects Patrick and Monica Mede developed after taking over the operation was to open Ulmer’s On the Spit, a popup seasonal location catered to fishing and camping enthusiasts.

As Monica and Patrick were getting a handle on running Ulmer’s, Patrick had an idea to expand their brand and reach even more customers. “Patrick grew up coming down to Homer from Anchorage with his dad to fish on the weekends,” Monica says. “He didn’t realize at the time there was a town because he went directly to the area called Homer Spit.” The Homer Spit is a 4 ½ mile-long peninsula that extends into Kachemak Bay, a popular destination for tourists and local hunters and fishers. The couple brainstormed and decided to create a seasonal location on the Spit where they could capture the camping and fishing audience. In May 2017, they opened Ulmer’s On the Spit on the Harborview Boardwalk, an area that caters to those tourists who wouldn’t necessarily head 3 ½ miles into town to their store. “The entire structure is 400 square feet, so it’s small, but it has things people need,” Patrick says. “Ulmer’s on the Spit has fishing tackle, bait, snacks, over-the-counter medications and camping supplies.” As the Medes continue to run the business, they focus on how to give back to the community as well. Whether it’s contributing through donations for local schools or sporting events, they are constantly looking to stay involved. Monica and Patrick are excited to add on to the foundation Eldon and Scott laid. “As Monica and I move the business forward, we will continue to stand by Scott’s emphasis on selling service,” Patrick says. “We are here to support our friends and neighbors, and they do the same for us.”

Ulmer’s Drug & Hardware has become a destination for shoppers to find all the items they might need, from clothing and fabric to sporting goods.

Monica Mede spent time in the business with her grandfather, Eldon, who opened the pharmacy that became the store in 1954.

April 2020 | HARDWARE RETAILING

C A T E G O R Y

S P O T L I G H T

Color Craze C R E AT I N G A B U Z Z I N Y O U R PA I N T D E PA R T M E N T BY JESSE CARLETON

For paint manufacturers, announcing a color of the year is big business. A new paint color generates a lot of excitement around their product, and it is a chance to put their distinctive palettes in the spotlight and boost sales. Color should drive excitement at your business, too. Customers coming in for a paint project will likely head straight for the paint chip display. They may be feeling inspired to put a new look to a familiar space, and the experience

HARDWARE RETAILING | April 2020

JCARLETON@NRHA.ORG

they have in your store as they are choosing the colors can cement their loyalty to your business. In 2020, colors are trending away from the grays and neutrals of previous years toward natural tones that encourage serenity and optimism. On the following pages, find the 2020 colors of the year from eight leading companies. Then, read tips from Hardware Retailing for how color can play an important role in driving more sales to your paint department.

April 2020 | HARDWARE RETAILING

Back to Nature Color Number: S340-4 Behr (Home Depot exclusive) Behr’s new colors for 2020 are direct reflections of nature, a way to bring the outside inside. “As we enter the next decade, we strive for vibrancy in life and shape it how we choose. Back to Nature is a restorative and revitalizing green hue that engages the senses and pairs well with other colors both inside and outside your home,” according to the company’s website.

Color Trends 2 0 2 0 C O LO R S O F T H E Y E A R

Songbird

bird

Song val Na Classic Blue

Color Number: 19-4052 Pantone Pantone is a trendsetter in color and design. The company chose Classic Blue as a color evoking a sense of stability, nostalgia and peace. “Classic Blue encourages us to look beyond the obvious to expand our thinking; challenging us to think more deeply, increase our perspective and open the flow of communication,” says Leatrice Eiseman, executive director of the Pantone Color Institute.

HARDWARE RETAILING | April 2020

lue

Naval Color Number: SW 6244 Sherwin-Williams Sherwin-Williams is starting off the new decade with a rich navy blue intended to invoke feelings of confidence and change. “Navy is coming out of its comfort zone with you. 2020 is an empowering year of change that focuses on bringing your best self into the new decade, a clean palette for self-nurturance,” the company’s website says.

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atur

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Color Number: 117C Pratt & Lambert Embodying the trend toward nature-inspired colors, Songbird is a blueish green hue that is both serene and optimistic. “Crisp, clean and vibrant, Songbird speaks to our desire to bring in natural colors with energy. Minimalistic and optimistic, this youthful shade soars,” the company’s website says.

N to

Honey I’m Home Color Number: SC193-3 Beauti-Tone (Home Hardware exclusive) Honey I’m Home is a golden tone that is sweet and calming. It’s part of the Simon Chang 2019/20 Trend Color Collection. “This warm, golden hue reflects the resurgence of camel in fashion and home,” says Chang. “This is a color that will create beauty anywhere in your home—walls, furniture, floors and accents.”

Hone y I’m

First Light

Fir st L

ight

Color Number: 2102-70 Benjamin Moore First Light is part of a palette of ten soft, rosy hues. According to Benjamin Moore, the palette combines “optimism with understatement. A fresh palette. A revitalized spirit.A soft, rosy hue blooming with potential. It’s the backdrop for a bright new decade.”

Bark in gC re

Barking Creek

Color Number: V110-3 Valspar Barking Creek is one of the 12 colors Valspar has selected for 2020. The palette includes serene tones that reflect comfort. “Earth’s prescription for the chaotic, busy lives we all live is to bring the tranquility of nature and the outdoor world into the home. That’s exactly what we set out to accomplish when forecasting the 2020 Colors of the Year,” says Sue Kim, Valspar color marketing manager at Sherwin-Williams.

ine

Chinese Porcelain Color Number: PPG1160-6 PPG Chinese Porcelain blends cobalt and moody blue for a sense of calmness. “The need for simplicity and escapism from technology is, in part, the reason that consumers are craving blues like Chinese Porcelain that bring us closer to natural elements such as the sea and sky, creating serenity and peace,” says PPG’s senior color manager Dee Schlotter. April 2020 | HARDWARE RETAILING

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lain

HOW TO SELL

COLOR Color plays an important role in driving traffic to your paint department. Use the following steps to boost sales and encourage customers to try something new.

Create the space. Retailers who have been successful in selling paint have created paint rooms or dedicated areas away from the busy aisles of the store where customers can sit, look at paint swatches and get a vision for what they want in their home. Create an inspiring environment by including architecture and design magazines, chairs and a table.

Focus on value. If color is what started the conversation about paint, don’t let price end it. Customers should understand that different grades of quality will have different end results. No matter which grade they buy, they’re going to expect a great finish. Educating them up front on the different types and encouraging them to buy a better product could help alleviate frustrations later.

Hire design pros. Customers might get excited about a new color on the paint chip rack, but they may not be sure what to do with it. Hire a designer who can show customers how to match complementary colors and connect their new throw pillows to their walls. A designer can help the customer by suggesting a scheme for an entire room.

HARDWARE RETAILING | April 2020

Control Pro™ 170 Cart

Control Pro™ 150 Skid

Control Pro™ 130 “Power Tank”

THE BRAND YOU WANT TO PARTNER WITH • National TV Campaign • NEW High Efficiency Airless™ Technology Reduces overspray1 by up to 55% • #1 DIY Paint Sprayer Brand For further information on how we can help drive your sales email us at US_RetailPartner@wagner-group.com or visit www.wagnerspraytech.com/retailpartner.

Testing performed using a popular interior latex paint vs. competitive high pressure airless system.

Know your product. DIYers browsing your paint department may have some knowledge of the project they’re aiming to tackle. It’s even more important for your staff to master their own product knowledge. Take advantage of training from the North American Retail Hardware Association (NRHA), wholesaler classes and vendor seminars. Learn more about what’s available at nrha.org/online-training.

Maintain inventory. The color chip rack is going to be the centerpiece of your paint department. Make sure the sundries aisle isn’t a letdown. Be fastidious with your inventory management, eliminate holes in the inventory, face and front products often and keep the area clean. Change out endcaps near the paint area frequently, too, so the department always looks fresh.

Fill the basket. The quest for a new color is the springboard for a larger project. There is a basket full of items customers will need with the project. Use merchandising to your advantage. Project lists placed strategically throughout the department will remind customers of what else they need. Creative endcaps and power aisle displays can also suggest add-on sales.

Keep up on trends. Paint trends are not something you should look at only once a year. Use wholesaler markets to stay up to date on new products, such as specialty paints or applicators. Also read craft magazines, browse popular home design websites and study social media sites such as Pinterest. When you understand what projects are popular among DIYers, you can align your product mix accordingly.

Elaborate with events. Introducing your paint vendor’s color of the year is a great opportunity to hold an event. Use the new colors to build excitement, then segue the conversation into a seminar on how to match colors, how to successfully paint a room or how to refurbish an antique. Bringing in your paint vendor to talk about new products will help cement the loyalty customers have with the brand you sell.

HARDWARE RETAILING | April 2020

Compare. Assess. Improve. When you participate in the Cost of Doing Business Study, it can help you identify new financial opportunities for your business. It’s free, easy and confidential.

Median Sales Per Customer Typical

Key Business Indicators

High-Profit

Typical

$30

High-Profit

50%

43.7% 40%

$25

$24 $23

$23

39.8%

30%

$22 $22

$21

$20

20.4%

$22

20%

18.6%

$20 10.6% 10%

4.1% $15

2014

2015

2016

2017

2018

Gross Margin After Rebate

Total Payroll

Profit Before Taxes

Key Performance Differences at a Glance Sales per customer in 2018 rose to the highest level ever recorded at $24.

Hardware Stores Hardware stores carry core hardlines, including fasteners, tools, plumbing and electrical supplies. They carry little or no lumber and building materials.

Stores in this year’s sample also reported the highest ever overall average sales per location at $2,193,172.

Hardware stores saw some of the highest average profits before taxes at 4.1%.

2019 Cost of Doing Business Study

“Comparing the industry average ratios to our store helps when we’re having conversations about a new store location because it gives us real numbers to look at.” Neal Aissa | Tarzian Hardware FOR MORE INFORMATION, GO TO NRHA.ORG/CODB

North American Retail Hardware Association

I N D U S T R Y

N E W S

COVID-19: Industry in Action BY TO D D TA B E R

T TA B E R @ N R H A . O R G

OVID-19, the official name for the new strain of the coronavirus that was recently declared a pandemic, is upending retail. The uncertainty it has brought in the first months of 2020 has had direct effects on the home improvement market. See the industry events here that have been canceled or postponed as a result of COVID-19, and on the following pages, read how retailers across North America are responding in the face of crisis and what you and your employees can do to maintain a sanitary workplace while continuing to serve your communities.

I M PA C T E D E V E N T S

International Hardware Fair Postponed until Feb. 21-24, 2021

Ace Hardware Corp. Live event canceled; virtual event

Home Hardware Stores Ltd. Canceled

Inspired Home Show Postponed until March 13-16, 2021

Blish-Mize Co. Live event canceled; virtual event

National Hardware Show & NRHA All-Industry Conference Postponed until Sept. 1-3, 2020

HARDWARE RETAILING | April 2020

Staying Proactive TIPS ON KEEPING YOUR WORKPLACE SAFE BASED ON GUIDELINES FROM U.S. CENTERS FOR DISEASE CONTROL AND PREVENTION

Cover your coughs and sneezes. Stop shaking hands. Verbally greet customers. Offer pump hand sanitizers to customers and employees as close to the front entrance as possible.

PRACTICE GOOD HYGIENE

Promote tap-and-pay payment options when possible. Disinfect surfaces often, including doorknobs, tables, desks and handrails. Increase ventilation by opening windows.

Use online booking and communication tools to stagger customer flow into your building. Use online transactions whenever possible. Offer curbside pickup whenever possible. Limit attendance at large gatherings or cancel events you’ve planned.

AVOID CROWDS

Communicate with customers often via social media.

PRIORITIZE COMMUNICATION

Encourage employees to be open and honest about their health. Develop a system to alert employees about business changes expediently.

Note: Consult additional guidance from the U.S. CDC at cdc.gov, the World Health Organization at who.int, or your local health department or health provider. April 2020 | HARDWARE RETAILING

Retailers Respond in Face of Crisis As COVID-19 spread through states and provinces across North America, independent home improvement retailers acted quickly to protect staff and their communities. A Resourceful View on Training

Shari Reaume, training coordinator of Turkstra Lumber Co., a building materials supplier with 11 locations throughout southwestern Ontario, says being resourceful with employees and customers is critical in times of emergency. Though no one on staff has been infected, the company decided to institute a work-from-home policy for administrative staff and employees who do not directly interact with customers. “Staff who have laptops and cellphones and can work from home have been requested to do so,” she says. “We’re doing our part to stop the spread of the virus.” Reaume says the company has 270 employees, and while working from home, employees will utilize online retail training to stay engaged and prepare for their return to work. Reaume says Turkstra Lumber locations would stay open during the crisis to serve customers throughout southwestern Ontario, but anyone with a job that could seamlessly function from home has been invited to do so. “We’re still figuring it out, but we’re trying to be proactive and protect our employees,” Reaume says. “The faster we can respond, the faster we can get this under control.”

Communicating Calmly

In Bellevue, Pennsylvania, Samantha Post from T & M Hardware & Rental prioritized customer communications as news of the COVID-19 pandemic hit her community.

As grocery stores and big boxes in her community were depleted of common products, Post crafted an e-blast to her company’s subscribers, reminding them independent home improvement stores stock many of the items customers were desperate to find. “Our whole company has been built on customer feedback,” Post says. “We wanted to remind customers we had many of the items they were looking for, even if our competitors were sold out. One of the best things about being an independent is that we can be reactive, so we’re working as diligently as we can to keep our store stocked and transfer items between our locations.” As governments and health organizations urged the public to avoid large crowds, Post says another important aspect of the e-blast was reminding customers independents are agile and can tailor their services to fit customers’ individual needs. The e-blast outlined steps customers could take to minimize contact during a transaction, including placing orders online via social media and calling the store when they arrive to arrange curbside pickup. Post says the e-blast falls squarely into the shop-local movement and highlights the versatility and resourcefulness of independent home improvement retailers. “This is an opportunity to remind people that the local hardware store can serve their needs during this time,” Post says. “We reminded people that these products and these services are things we offer each day, not just in times of crisis.”

Hardware Retailing and NRHA are committed to providing the latest updates and strategies to work through the COVID-19 pandemic. Stay connected to Hardware Retailing online at hardwareretailing.com and on Facebook @hardwaretailing. If you have questions for NRHA or recommendations to share with your peers, send them to Todd Taber at ttaber@nrha.org.

HARDWARE RETAILING | April 2020

E D U C A T E

A D V O C A T E

A S S O C I A T E

NRHA, Industry Executives Sent Letter in Support of Essential Retail

n mid-March, the North American Retail Hardware Association (NRHA) worked closely with wholesaler executives to draft a letter addressing the possibility that local, state, provincial and federal governments would mandate the closure of non-essential retail operations to combat the spread of COVID-19 throughout North America. NRHA recognizes the essential role independent home improvement retailers have in their communities and urged government officials to classify your operations as such so you can continue serving local residents with household goods and emergency supplies. Read the letter here and download a copy to send to your own representatives at nrha.org/industry-letter. NRHA will continue to advocate for independent retailers throughout this challenging event. If you have any questions or concerns about business operations or wish to share solutions with your peers, please don’t hesitate to contact the association at nrha@nrha.org or members of the magazine staff at editorial@nrha.org.

HARDWARE RETAILING | April 2020

LOCALLY OWNED HOME IMPROVEMENT STORES HAVE A PROVEN TRACK RECORD OF PROVIDING ESSENTIAL SUPPLIES AND SUPPORT TO COMMUNITIES IN PAST EMERGENCY SITUATIONS, SUCH AS HURRICANES, FLOODS, FIRES AND CIVIL UNREST.

As our nations and communities react to the spread of COVID-19, the North American Retail Hardware Association (NRHA) urges all business owners to use the utmost care and caution when considering how to proceed with operations. NRHA is suggesting that these business operators follow all community health guidelines and take every precaution to ensure that their employees and customers remain safe. We also realize that our local, state and federal governments are engaged in justifiably aggressive efforts to mitigate the impact of COVID-19 and do everything within their powers to keep the public safe and healthy. In recent days, the discussion of how to best ensure the public health has included the possibility of asking all “non-essential” retail operations to shut their doors for a period of time, thereby minimizing exposure to the virus. While NRHA is fully in support of any steps public health officials may deem necessary to combat COVID-19, up to and including the temporary closure of non-essential retail operations, we also urge public officials to consider locally owned home improvement stores among those retail operations determined to be “essential” and allow these business owners the option to stay open as a public service. With nearly 35,000 independent home improvement retailers serving communities across North America, these stores provide much-needed services to individuals and contractors, providing them with the products and support required to keep their homes and communities safe, secure and functioning. The products carried by independent home improvement retailers range from cleaning supplies and tools to batteries and storage containers—all of which can be essential to maintaining a safe and secure living environment. In many communities, the local hardware store represents the only outlet where consumers have access to essential supplies for cleaning, disinfecting, maintaining or repairing their residences. It is also important to note that locally owned home improvement stores have a proven track record of providing essential supplies and support to communities in past emergency situations, such as hurricanes, floods, fires and civil unrest. Because of these considerations, NRHA together with the industry leaders who have signed on in support of this statement, is urging all local, state, provincial and federal government offices to classify independent local home improvement retailers among those operations determined to be “essential” retail outlets that can exercise the option to remain open to support their communities during these trying times.

Sincerely,

Robert Cutter President and CEO NRHA

Dan Starr President and CEO Do it Best Corp.

Kevin Macnab President and CEO Home Hardware Stores Ltd.

Steve Synnott President and CEO PRO Group

John Venhuizen President and CEO Ace Hardware Corp.

David Christmas President and CEO Distribution America

Boyden Moore President and CEO Orgill, Inc.

John Hartmann President and CEO True Value Co.

April 2020 | HARDWARE RETAILING

RESOURCE REVIEW | BOOK

The Hero Effect By Kevin Brown

his book review is the second installment in a bimonthly series Hardware Retailing is running to highlight books, podcasts and other resources retailers recommend to fellow business owners in the home improvement industry.

Megan Menzer co-owns Newton’s True Value stores in Cherryvale and Independence, Kansas. She considers Kevin Brown’s book “The Hero Effect” to be inspiring and practical. She has included excerpts with paychecks to remind employees how important their jobs are.

Menzer’s Takeaways 1

Megan Menzer Newton’s True Value, Kansas

“This book makes you take a step back and evaluate your business and your culture. Its examples and stories are reminders of the difference we each can make. You never know what someone is going through, but you can touch their life in a way that will have a lifelong impact.”

HARDWARE RETAILING | April 2020

Everyone Can Make a Difference The book describes why we do what we do each day. Customers come in because they are in the middle of a crisis and need our help. We have the ability to change a person’s outlook on their day.

You Affect Everyone You Meet Heroes take responsibility for their attitudes, actions and results. We have an influence over people’s lives. We can be heroes by helping with no strings attached.

‘Nobody Notices Normal’ The book talks about service, saying, “Nobody notices normal.” Everyone in our business thinks they give exceptional service, but do they really? The book talks about different types of service.

Culture Drives Actions & Results Kevin Brown says the purpose of leadership is to create an environment where people can be the best version of themselves, and where they love to work, shop, educate, communicate and belong.

The True Cost of Not Offering Health Insurance Health insurance continues to be a key differentiator for potential employees as they consider joining you or your competitor. The NRHA Health Insurance Plan offers an affordable solution with great benefits, providing flexibility, low group rates and numerous perks.

“Many independent business owners struggle with the high costs of health insurance. The NRHA Health Insurance Plan provides retailers with a realistic solution to offer benefits to employees.” Bob Chiesa | President & CEO | Custom Benefits Insurance Group Inc. FOR MORE INFORMATION, GO TO CBIGI.COM/NRHA-PROGRAM

Newsmakers

Why Banking Local Matters Just as Much as Buying Local

s a small business owner, you practice what you preach. You buy local, eat local, and when you go on that hard-earned vacation, you even sleep local. But do you bank local? In honor of Community Banking Month this April, consider where you choose to save, borrow and invest your money. What It Means to Bank Local In addition to big banks and local banks, a variety of online banks and nonbank financial institutions willing to hold, lend and manage money. Big banks like Bank of America and Wells Fargo have branches across the country, which incentivizes them to implement rigid processes and inflexible terms. Meanwhile, online banks may not have any branches at all, which makes them appear impersonal and elusive. Community banks are locally owned and credit unions are member owned. In both cases, the institution’s owners, decision-makers and customers are all part of the same community. As a result, the money circulating between the bank and its customers is always moving locally, not to distant shareholders. Think about the reasons you shop local. Many of those reasons apply to local banking. From customer service and unique products to flexible terms, local financial institutions resemble your own business, making them a natural partner. Capital and Cooperation At community banks and credit unions, lending decisions are made on Main Street, leading to better outcomes for small businesses. First, local businesses may have better access to capital by going through local financial institutions than relying on big banks. The Independent Community Bankers of America finds local banks provide more than 60 percent of all small business loans. Local banks and credit unions are often more familiar with local businesses and may be willing to extend credit or offer flexible terms. Second, local businesses have a closer relationship with their local financial institutions than with big banks. In the Federal Reserve’s 2019 Small Business Credit Survey, 79 percent of independent businesses that used community banks reported they were satisfied, compared with 67 percent for large banks and 49 percent for online lenders. Small businesses can find a supportive, long-term partner in local banks and credit unions. Use your platform as a small business leader. Move money to a local bank or credit union to invest in the local economy and find a long-term financial partner. While you build up the community, a community-based financial institution helps you build your business.

Bill Brunelle is the co-founder of shop local movement Independent We Stand (IWS), which educates communities about the benefits of supporting locally owned businesses. IWS inspires small business owners to celebrate their locally owned status and helps consumers understand their value. IWS is sponsored by STIHL, Do it Best Corp. and PPG Paints.

HARDWARE RETAILING | April 2020

Top Headlines Go to TheRedT.com/subscribe to receive Hardware Retailing’s weekly industry news digest. Receive the latest headlines, reports from industry events and exclusive online content in your inbox.

United States

COVID-19 Prompts Major Shift in Retail Operations

National Hardware Show and NRHA Conference Postponed

Do it Best Foundation to Distribute Grants in Support of Communities

Canada

Lowe’s Canada Appoints American to Run the Business

TIMBER MART’S Latest Buying Show: All About Adding Value

Sexton Group Stays Focused on Needs of Independents

To read Canadian industry headlines, visit hardlines.ca/hr.

Industry Events In light of the COVID-19 pandemic, many industry events have been canceled or postponed. These events have been impacted (as of March 17). • CANCELED: Home Hardware Spring Market April 5-7 • POSTPONED: National Hardware Show & NRHA All-Industry Conference New date: Sept. 1-3 Stay connected to Hardware Retailing and NRHA for updates about the events.

The following upcoming events are currently scheduled to take place as intended. • House-Hasson Summer Dealer Market June 18-20 • PRO Group Inc. 2020 Group Merchandising Conference June 22-24 • United Hardware Fall & Winter Buying Market June 26-29

Visit TheRedT.com/calendar for more information about canceled or postponed events and for news on managing your operation. Contact editorial@nrha.org with questions, concerns or ideas to share with your peers.

Follow NRHA & Hardware Retailing on social media for updates. @nrha_official

@hardwareretailing

Ad Index Ancra Cargo ............................................................... 32 consumer.ancracargo.com; 800-626-8353

Mi-T-M Corporation ................................................... 24 www.mitm.com; 800-553-9053

RMR Solutions .......................................................... 28 www.RMRsolutions.com; 866-822-8744

Coles Wild Bird Products Co. ...................................... 5 www.coleswildbird.com; 877-426-8882

Midwest Fastener ................................................ 34-35 www.fastenerconnection.com; 800-444-7313

Sashco ......................................................................... 1 www.sashco.com; 800-767-5656

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

National Hardware Show............................................. 7 www.nationalhardwareshow.com; 888-425-9377

Shurtape Technologies, LLC ..................................... 11 www.frogtape.com/prograde; 800-321-1733

Flexon .......................................................................IFC www.flexonhose.com; 973-824-5530

NRHA Cost of Doing Business Study ...................... 55 www.nrha.org/COBD

Simpson Strong-Tie Company Inc. ............................ 13 go.strongtie.com/products; 800-999-5099

GE Sealants & Adhesives ......................................... BC www.GEsealants.com; 877-943-7325

NRHA Health Insurance Plan .................................... 63 www.CBIGI.com/NRHA-Program

Soudal ........................................................................ 14 www.soudalusa.com; 877-873-8739

Howard Products ....................................................... 14 www.howardproducts.com; 800-266-9545

NRHA/Pointy.............................................................. 59 www.pointy.com/nrha

Superior Pump ........................................................... 33 www.superiorpump.com; 800-495-9278

Impress Art ................................................................ 25 www.impressart.com; 631-940-9530

Orgill Inc. ............................................................ 68-IBC www.orgill.com; 800-347-2860

U-Haul ........................................................................ 19 www.uhaul.com/hardware1; 800-468-4285

IPG ............................................................................. 15 www.itape.com; 888-898-7834

Phifer ......................................................................... 31 www.phifer.com; 205-345-2120

Wagner Spray Tech ................................................... 53 www.wagnerspraytech.com; 800-328-8251

Ironclad Performance Wear Corp. ............................. 23 www.ironclad.com; 972-996-5664

PLYLOX Hurricane Window Clips ............................. 27 www.plylox.com; 800-583-4289

Wastequip ................................................................. 17 try.toter.com/beartoughcarts; 800-424-0422

Lumax ........................................................................ 26 www.lumax.com; 844-660-6876

Quikrete ....................................................................... 9 www.quikrete.com; 404-634-9100

Woodland .................................................................. 16 www.pinecar.com; 573-346-5555

Master Magnetics Inc. .............................................. 29 www.magnetsource.com/toolmat; 888-293-9190

Red Devil ................................................................... 22 www.reddevil.com; 800-423-3845

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

April 2020 | HARDWARE RETAILING

Last Word

Making a

GRANDER Home Entrance

omeowners who update the front entrances to their houses often start the projects because a repair is necessary, the Home Improvement Research Institute (HIRI) reports. However, homeowners choose the materials they use for their entryway updates based on how attractive the products look.

The data shows that parts of the projects may be very practical, such as installing a new deadbolt, but upgrading appearances is a bigger motivator. As a result, new lighting and landscaping are the most popular updates. Learn more about HIRI and homeowners’ front entrance improvements at hiri.org.

The average price of a front entrance improvement project:

$2,849 66

HARDWARE RETAILING | April 2020

Where Are They Shopping?

of people shop for their entryway products online Of those online shoppers

Online Versus In-Store

81% of DIYers select their front entrance improvement products at brick-and-mortar stores

63% 50%

shop at homedepot.com

shop at lowes.com

41% 34%

shop at amazon.com

shop at walmart.com

What Do They Consider? Homeowners said they selected materials based on: Note: Respondents could select more than answer

Here are the key reasons homeowners said they improved their home’s front entrance:

67%

Attractive Appearance

60%

Updating the Home’s Look

Durability

57%

Updates/Additions

55%

Price

55%

Repairing/Maintaining Home

54%

Doing-It-Yourself How DIYers manage their process when planning these projects

33% turn to store staff, friends, family and professionals

34% prefer to use social media and other online resources

25% use in-store resources such as product displays

70% of DIYers want outside input

30% of DIYers don’t want outside input

75%

61%

of the homeowners did some or all of the work on their front entrances themselves

of the homeowners surveyed paid cash for the products necessary for a front entrance improvement

Source: 2019 Project Decision Study: Front Entrance Improvement, Home Improvement Research Institute April 2020 | HARDWARE RETAILING

Taylor Baker Foothills Hardware & Builders Supply North Carolina

“Orgill offers a full selection of high-quality products, which makes it easy to provide my customers with exactly what they need.”

All The Products We Need Orgill’s Inventory Selection Keeps Our Shelves Fully Stocked!

Why We Like Working With Orgill: • Strong vendor partnerships • Broad product selection • Strong retail programs that help us improve our store

Watch the video to learn about the partnership between Orgill and Foothills Hardware!

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com/about-us

A Paintable Seal with Best-In-Class Performance †

Windows & Doors Wainscoting Crown Molding

Baseboards

with best-in-class sealants Max* Shield sealants offer durable, paintable seals where they’re needed most. These advanced polymer acrylic latex sealants provide beautiful results backed by Tri-Shield protection: 100% waterproof, permanent flexibility and mold resistance1. For tough paint projects, GE Sealants & Adhesives helps Fill in the Gaps with the best product every time. Learn more at GEsealants.com GE is a trademark of General Electric Company. Used under trademark license. *Max is a trademark of Momentive Performance Materials Inc. †Based on comparison of publicly available manufacturers’ specifications, products meet or exceed the flexibility performance of any commercial siliconized acrylic sealants in their respective category and ASTM C-920 class (or lower) 1 Cured sealant is resistant to stain-causing mold and mildew. Regular cleaning of caulk is required however, as soap and other residue can cause secondary mold and mildew growth. Copyright 2020 Momentive Performance Materials Inc. All rights reserved.