Hardware Retailing February 2016

Serving Hardware, Home Center & Building Material Retailers

Follow the Leader Make the Most of Your Time at Distributor Buying Shows 59 Add Extra Flavor to Your Housewares Category 67

VOLUME 210 • ISSUE 2 • FEBRUARY 2016 • HARDWARERETAILING.COM

48

WEBSITE

JOIN MAILING LIST

Better Pricing, Better Margins “The initial reason we were drawn to Orgill was its competitive pricing. We felt like Orgill’s model gave us the best chance to increase margins.”

Jonathan Kennedy, CEO and general manager, T.H. Rogers Lumber Company, 34 stores in four states

FACEB

Orgill Has Improved Our Margins While Delivering Diverse Product And Outstanding Service

Competitive Pricing “Not only does Orgill offer us competitive pricing, it also helps us stay competitive in our markets. We particularly like the market specific pricing program that involves in-depth research of pricing models in our unique markets. With Orgill backing us, our store managers have more time to concentrate on other aspects of the business.”

Outstanding Service “Our Orgill reps have been great to work with. One of the first things we noticed after our change to Orgill was that we saw our reps on a regular basis. Orgill’s excellent service allows us to provide better service to our customers.”

More Products

T.H. Rogers Lumber Company

“We are primarily a lumber and building materials company, but several of our stores are home centers that offer a more diverse and comprehensive selection of merchandise. We like Orgill because it carries such a broad array of products. It has helped us expand the appeal of our home centers to a wider variety of customers.”

Thomas Houston Rogers founded T.H. Rogers Lumber Co. 112 years ago with three locations in Oklahoma. Since then, the company has grown to 34 stores in Oklahoma, Missouri, Kansas and Arkansas. some stores have diversified to include not only lumber and building materials, but also pro hardware, plumbing, electrical, lawn and garden and automotive. Jonathan Kennedy, the great-grandson of the company’s founder heads the employee-owned company.

Creative Merchandising “The Orgill team is efficient at replacing old product and excellent at merchandising new products. We now are able to offer more products to attract more customers with merchandising that’s both attractive and effective.”

“Orgill’s extensive retail programs help support our success.”

—Jonathan Kennedy

For more information about Profit-driven Solutions, call us today!

1-800-347-2860 ext. 373 • www.orgill.com

Worldwide Distribution & Retail Services

Orgill, Inc. P.O. Box 140, Memphis TN 38101-0140

Make the Most of Your Time at Distributor Buying Shows 59

One Event, Thousands of Retailers.

The 2016 NRHA All-Industry Conference is held at the National Hardware Show®, the industry’s largest gathering of independent retailers from all over the world. Visit the NRHA Village to connect with these retailers and learn more about their businesses.

Visit www.nrhaconference.com or call 800-772-4424 for more details!

Follow the Leader Add Extra Flavor to Your Housewares Category 67

May 4-6, 2016 Las Vegas Convention Center

FREE For All Retailers!

VOLUME 210 • ISSUE 2 • FEBRUARY 2016 • HARDWARERETAILING.COM

2016 NRHA ALL-INDUSTRY CONFERENCE

Presented By:

Sponsored By:

®

Te Industry Advantage.

Brought to you by

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Serving Hardware, Home Center & Building Material Retailers

CONTACT US

Make Mondays Matter

INDUSTRY NEWS

OPERATIONAL TIPS

NEW PRODUCTS

Get your week started off right with the Hardware Retailing newsletter, which is packed with the latest industry news, retailer stories and association updates. Sign up now to get the newsletter delivered to your inbox every Monday.

To subscribe to the newsletter, visit hardwareretailing.com/subscribe.

48

CALL FOR 2016 NOMINATIONS

Young Retailer AD #4 Year of the

20th Annual Awards Program Learn more about the program and scholarship opportunities from the National Hardware Show® and Bernzomatic for the NRHA Retail Management Certification Program at www.nrha.org/yroty.

Entry deadline is Feb. 26, 2016.

Presented by:

Sponsored by:

®

Te Industry Advantage.

FEBRUARY SPONSOR

Serving Hardware, Home Center & Building Material Retailers

Follow the Leader Make the Most of Your Time at Distributor Buying Shows 59 Add Extra Flavor to Your Housewares Category 67

VOLUME 210 • ISSUE 2 • FEBRUARY 2016 • HARDWARERETAILING.COM

48

Won’t Crack. . .It Just Stretches

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Next Month

Good for Government Work

T

he government: a customer that is perpetually planning building projects and buying products, regardless of weather and the economy. You might want to pursue local, state or federal government agencies as customers, and in the March issue, we will offer suggestions for how to do so by building relationships and processes, as well as bidding on projects.

You’ll also want to read next month’s story on social media best practices. The article features retailers who do excellent work marketing their businesses and building better customer relationships via social networks.

In addition, don’t miss a story on what’s new in the paint category and a Q&A with an expert on paint trends.

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CONTACT CHANNELLOCK ® FOR MORE INFORMATION | SALESSUPPORT@CHANNELLOCK.COM | (800) 724-3018 ext. 341

February 2016 | HARDWARE RETAILING

1

At Do it Best Corp., we recognize that each of our diverse 3,800+ independent member-owners has a unique definition of success. That’s why we provide a broad range of flexible, scalable, affordable and customizable programs and services that are proven to fuel their growth. The ongoing success of our members is a testament to this approach and it’s why our #1 goal is

Helping our members grow and achieve their dreams.

independentsdoitbest.com

Headquarters Staff

136 N. Delaware St. #200, Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: www.nrha.org HEADQUARTERS STAFF PRESIDENT AND CEO Bill Lee CONTROLLER David Gowan

EDUCATION DIRECTOR OF MEMBER SERVICES Allison DeWitt, 317-275-9414, adewitt@nrha.org TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org MEMBER SERVICES AND COMMUNICATIONS COORDINATOR Hilary Welter, 317-275-9435, hwelter@nrha.org MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9435, kstokes@nrha.org

RETAIL LEADERSHIP INSTITUTE EXECUTIVE DIRECTOR-RETAIL LEADERSHIP INSTITUTE Scott Wright, 317-275-9430, swright@nrha.org DIRECTOR OF RETAIL OUTREACH Tom Marcum, 317-275-9430, tmarcum@nrha.org

PUBLISHING

NRHA MISSION

PUBLISHER, VICE PRESIDENT OF PUBLISHING Dan Tratensek

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

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton ASSOCIATE EDITOR Liz Lichtenberger ASSISTANT EDITOR Renee Changnon ASSISTANT EDITOR Kate Klein LEAD GRAPHIC DESIGNER Lynnea Verville GRAPHIC DESIGNER Graeme Haase WEB DEVELOPER Kevin Trehan MARKET RESEARCH ANALYST Sara Logel

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

CIRCULATION CIRCULATION DIRECTOR Richard Jarrett

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES PHONE 314-432-7511 FAX 314-432-7665

NRHA VENDOR PARTNER

SALES

VENDOR INTEGRATION MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org

VICE PRESIDENT OF SALES Bob Cutter

NRHA CANADA NRHA CANADA Michael McLarney, 360 Dupont St., Toronto, Ontario, Canada M5R 1V9; 416-489-3396, mike@hardlines.ca

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

STATE AND REGIONAL ASSOCIATIONS

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

MICHIGAN RETAIL HARDWARE ASSOCIATION Patrick Harrington, 4414 S. Pennsylvania Ave., Lansing, MI 48910; 517-394-1710; FAX 517-394-6754

NORTHEST REGION MANAGER Brian Ziff, 17 Cutler Knoll, Watertown, Conn. 06795; 203-509-0125, Fax: 317-275-9406, bziff@nrha.org

MIDWEST HARDWARE ASSOCIATION John Haka, 2301 Country Club Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; FAX 715-341-4080

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

PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, or 97305 (UPS,FedEx); P.O. Box 17819, Salem or 97305 (U.S. Mail); 503-375-9024; FAX 503-375-7980; Alaska, Idaho, Ore., Wash.

SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; FAX 816-561-1249; Ark., Kan., La., Mo., Neb., N.M., Texas

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

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, Ind. 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year.

(Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00.

Periodical postage paid at Indianapolis, Indiana, and additional mailing offices.

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209.

All editorial contents copyrighted 2016 by the North American Retail Hardware Association.

No editorial may be reproduced without prior permission of the publisher.

REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

4

HARDWARE RETAILING | February 2016

FEATURED NRHA BOARD MEMBER

“I think we have a very

humble industry. Everyone you meet, no matter the size of their company, shows common respect.

”

JAMES CABIRAC EXECUTIVE VICE CHAIRMAN

James Cabirac, owner of Kief Hardware in Cut Off, Louisiana, was elected to the Board of the North American Retail Hardware Association (NRHA) in 2010 and is now the Executive Vice Chairman. Cabirac started at Kief Hardware at the age of 15 as a store clerk, quickly moving his way up to become the store’s manager and ultimately the owner, purchasing the store in 2001.

WHAT MAKES KIEF HARDWARE UNIQUE FROM THE COMPETITION? Our store is known for doing unique things beyond what’s expected of a hardware store. We recently added beer on tap, we do iPhone repairs, we have Starbuck’s coffee and yet we still have more inventory in hardware goods than anyone around us.

Using the right minirollers makes painting so

Jumbo-Koter system ®

It’s the original that others have tried, but failed, to copy.

The Wooster Jumbo-Koter system has smooth-spin cage frames that delight, never drag. Every frame in the line works with both 4½- and 6½-inch Jumbo-Koter miniroller sizes. A huge selection of professional yet affordable Wooster branded fabrics will greatly increase capacity and create a consistent fnish from edge to edge. For faster cut-in and invisible blending, the Wooster Jumbo-Koter miniroller system is the ultimate treat.

The Wooster Brush Company 800-392-7246 • woosterbrush.com

Contents FEBRUARY 2016 | VOLUME 210 | ISSUE 2

Features

48 EMPLOYEE MANAGEMENT

Anatomy of a Leader In this package, we profle young leaders who are already rising through the ranks within their operations, and then take a look at how you can identify and advance the leadership skills of up-and-coming talent on your staff. After you read this article, visit TheRedT.com/1ITj7Wp for a list of leadership training resources and TheRedT.com/1MWb3Pm for specifc suggestions on how to get started, based on your store’s size and budget.

59 MANAGEMENT & OPERATIONS How Do You Go to Market?

Retailers share some thoughts on how they make the most of distributor buying shows by looking at goals they want to accomplish at the market, what to do while they are there and how to follow up once they’re back at their stores.

48 67 Departments 08 . . . . . . . . . . . . . . . . . On the Web 10 . . . . . . . . . Independent Thinking 12 . . . . . . . .Taking Care of Business 16 . . . . . . . . . . . . . . . . NRHA News 22 . . . . . . . . . . . . . . . . . . . . . Trends 26 . . . . . . . . . . . . . . . New Products 36 . . . . . . . . . . . . . . . . . . Checkouts 88 . . . . . . . . . Newsmakers/Calendar 94 . . . . . . . . . . . . . . . The Last Word

On the Cover

67 6

HARDWARE RETAILING | February 2016

Jim Rivas, director of store operations for Friedman’s Home Improvement in Santa Rosa, California, is an up-and-coming leader in the industry.

NRHA photo by Lynnea Verville.

CATEGORY SPOTLIGHT

A Winning Recipe This article shares pointers from retailers on the ingredients for making the housewares category a recipe for success.

77 INDUSTRY EVENT

A Voice for Independent Retailers NRHA’s frst State of Independents Conference brought together manufacturers, distributors and retailers to look at proprietary industry research and discuss how to build stronger relationships to better serve independent retailers.

83 INDUSTRY EVENT

International Hardware Fair The International Hardware Fair will be held this spring in Cologne, Germany. Want to get a global perspective on home improvement retailing? Make your travel plans now.

TM

hardwareretailing.com LEADERSHIP 101

Not All Leaders Are the Same This month’s feature story “Anatomy of a Leader” on Page 48 discusses leadership development. What are the characteristics and different styles of leaders? How do you identify leaders in your organization? How can you turn them into management material? After you read this article, visit the links below for extended profiles and perspectives on different leadership styles.

Leading by Example Tyler Russom Buchheit Enterprises TheRedT.com/1ITiTyD

A Diamond in the Rough Josiah Gates Aubuchon Hardware TheRedT.com/1RmhYtj

Building the Team Christian Herrick Randy’s Do it Best Hardware TheRedT.com/1OdMdwi

Courageous Leadership Jim Rivas Friedman’s Home Improvement TheRedT.com/1ZQwc70

PHOTO GALLERY

Spice Up Your Housewares Department Being successful at selling housewares has a lot to do with creating a visual impact. In this issue of Hardware Retailing, you’ll see pictures of what independent home improvement retailers are doing to create compelling displays.

To see more, visit TheRedT.com/1J10DDf.

What-If Scenarios Now that you’ve identified potential leaders in your organization, what’s next? Go online for a list of three hypothetical scenarios that discuss different store sizes and training budgets and offer some ideas of what steps you can take to start developing your key employees.

TheRedT.com/1MWb3Pm.

Q&A VIDEO

Worthington Industries’ Bernzomatic Business Talks about Dedication to Independent Channel Education “There’s a fire in everyone, waiting to ignite,” says Mike Verne of Worthington Industries, parent company of Bernzomatic. And that’s one of many reasons why Bernzomatic is sponsoring the Find Your Fire scholarship initiative for NRHA’s Retail Management Certification Program. Learn more about this opportunity and Bernzomatic’s dedication to the independent channel in this video interview: TheRedT.com/1nig6VA

Going to Market Home Hardware retailer Heather Kreffer provides some firsthand insights into how she approaches working her distributor’s buying markets. For tips and tricks on how to get the most out of your buying show, head to TheRedT.com/22Qq5So SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing Hardware Retailing Magazine

Website links can get long and wordy, so Hardware Retailing is making it easier to find our online content.

Simply type in TheRedT.com/ followed by the unique code for each link. Why “The Red T?” Check out our logo!

8

HARDWARE RETAILING | February 2016

Independent Thinking

What’s In Your Wagon?

“Y

“Better inventory

management leads to better turnover, better sales to inventory and shorter inventory holding periods.

”

ou can’t sell from an empty wagon…” is an old saying we hear when the conversation turns to inventory. The basic truth certainly can’t be denied, but we should probably remember some wagons that were full of merchandise didn’t sell as well as others.

In most parts of the country, you’re getting serious about making room for spring merchandise. You’re getting displays set, changing endcaps and cleaning out winter merchandise. It’s a great time to think about your inventory.

Hopefully you’ve studied your association’s 2015 Cost of Doing Business Study (CODB). Every independent should. It’s an industry financial benchmarking tool that’s been done since 1917 and is the standard used by retailers, consultants, bankers and accountants who want an expert tool for evaluating independent retailer performance. One of the things we’ve learned through the years is that increasing profitability comes from managing many small changes, which in total impact the bottom line in a big way.

The CODB compares the top quartile of reporting hardware stores in profitability against the median in order to shed light on what it takes to be a top performer. So, here are a few things the CODB tells us about inventory.

From a balance sheet perspective, inventory is where the money is and why it’s so important to manage it well. Top performers hold a little less of their total assets in inventory: 62.4 percent vs. 66.2 percent. This also allows them to have a little better cash position—8.9 percent vs. 6.2 percent— which offers just a little more flexibility to react to opportunities and reflect better selection and control. Since it’s such a large and fluid asset, inventory may be one of the most flexible ways to adjust your business quickly.

Inventory directly impacts sales. We can’t be everything to everyone. A marketspecific, fresh and tightly managed inventory allows us to serve customers better, sell more and sell at higher margins. Asset performance numbers from CODB tell a stark tale. Gross margin return on inventory (GMROI) for top performers was 167.6 percent vs. 130.0 percent for the median. Earnings before interest and taxes (EBIT) to total assets for our top group was 18.6 percent vs. 7.0 percent for the median. Better inventory management leads to better turnover, better sales to inventory and shorter inventory holding periods.

So, what to do? Know your inventory, use your technology and be absolutely sure you have a handle on what you have. Decide who you are and what categories and niches you’re going to focus on. Stand for something and be really good at it. This type of focus will quickly tell you what to get rid of—it may be painful, but you have to focus your assets. Turn those non-performing assets into cash as fast as possible and get hard-working, high-margin products that will increase your turns. The longer you wait to dispose of tired inventory, the less it’s worth.

Be a maniac about outs. Nothing says you don’t care like empty peg hooks and half-empty shelves. If you have a sale, be ready. Be clean, neat and properly fronted. Other retailers do this, and you can, too.

You can’t sell from an empty wagon... but you can’t sell a wagon full of the wrong stuff, either. What’s in your wagon?

Bill Lee, President and CEO

blee@nrha.org

10

HARDWARE RETAILING | February 2016

Matt

is a hardware store owner like you. The difference is that he converted his stores to Ace so that his business can profit from a nationally recognized brand and never-ending support.

Learn more about Matt’s experience at youtube.com/myacehardware.

Hear more about Matt’s conversion by visiting our YouTube page below.

Explore all the opportunities and benefits of converting your store to an Ace.

Visit myace.com or call (630) 990-6900. www.YouTube.com/MyAceHardware

These results are specific to Matt and the operation of his Ace stores. Other retailers’ results may vary.

Taking Care of Business

Are You Leadership Material?

M

“Being a good leader

is much more than the ability to complete tasks or reach goals.

”

ost all of you reading this magazine are likely engaged in a leadership role within your organization, whether as manager, owner or executive.

Every day you focus on setting goals, getting tasks completed and ultimately reaching the goals you’ve set. But how much time do you truly spend thinking about being a leader?

Being a good leader is much more than the ability to complete tasks or reach goals. While it’s certainly important for a good leader to be able to achieve results, sometimes the path to those results is as important as the destination. Captain Bligh may have gotten things done, but his crew would likely not give him a Best Boss coffee mug.

That being said, I want you to take a moment and think about someone you have worked with who you would define as a “good leader.” Not just a good boss or someone with good strategic ideas. I want you to really think about someone who you felt embodied the concept of leadership.

Then, I want you to ask yourself, “What qualities did this individual posses that made him or her a good leader?”

You’re likely going to be thinking about characteristics such as decisiveness, clarity, vision and courage.

Next, I want you to engage in a very daunting exercise. I want you to ask yourself if you possess these same qualities.

But before you start listing off all the areas where you may (or may not) live up to your leadership archetype, I want you to remember that leaders come in all shapes and sizes and can possess vastly different qualities—think Ghandi and Steve Jobs.

Sure, at their core, these leaders likely shared some similar characteristics, but more than anything, a good leader has the capacity to know their own strengths and weaknesses, and know how to leverage these qualities for maximum results.

In this issue of Hardware Retailing, we take a deeper look at the concept of leadership. We examine what some of these leadership characteristics might be, and we talk to individuals within the home improvement industry who are distinguishing themselves in leadership roles.

The leadership information featured in this issue (starting on Page 48) serves as a bit of a companion piece to some of the other programs NRHA offers in this area, such as our Retail Management Certification Program.

By sharing insights into leadership and providing tools to help further develop leaders, we hope the end result will be an industry well-poised to make the most out of its future.

So, as you ponder your own leadership characteristics and hopefully set down a path to become an even stronger, more insightful and inspirational leader, I will leave you with two of my favorite quotes on leadership by two very different individuals.

“Don’t tell people how to do things, tell them what to do and let them surprise you with their results.” — George S. Patton.

“Strive not to be a success, but rather to be a value.” — Albert Einstein.

Dan M. Tratensek, Publisher

dant@nrha.org

12

HARDWARE RETAILING | February 2016

Ready. Set. Sell!

Give your customers their best chance at protecting their ® Alitaque que Simpson et re consene sunt od quia iur, nam projects from rust and rerorro corrosion.

Strong-Tie Type delesequi cum re provide porem que volupis ullam 316 stainless-steel fasteners thedolorit highest levelvidesti of corrosion resistance decks,Epeliquidunt docks, boats, poolsquo andtota other ipsam for experae. dolest, perovid ut structures in high-moisture, corrosive environments. lam, quibus dolore quati conseque nos prae et volupta veligen descil iust, nonse enimolore nonsequasped eati Our new 4-ft. stainless-steel fastener set includes a wide dolentore opta ipsanis res ipsunt. variety of screws and nails and is retail ready with popular sizes and small-quantity packaging to meet preferred price Sita dolut re quibus volum nos descitam, senecestibus points. Contact your local representative today to install a set. dolupta eperum. Call us at (800) 999-5099 and visit Call (800) 999-5099 and visit strongtie.com/fasteners. strongtie.com.

© 2015 Simpson Strong-Tie Company Inc. SSRETAIL15 © 2016 Simpson Strong-Tie Company Inc. SSSTEEL15

Motorola Radios...

Your #1 Customer Service Tool. ng aini r t f nt o t mou yees ge a e “ Th emplo sly from ions t new onsciou e ques h c t b l m most su ing al r s fro hea nswer s is the a n .” and ersatio art of it v p con uable al l Wyg e, Bill inva ar

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MOTOROLA and the Stylized M Logo are registered in the U.S. Patent and Trademark Office. All other product or service names are the property of their registered owners. © 2015 Motorola, Inc. All rights reserved.

“We h radi ave 12 os-b 0 RD e serv U ice t st custo 4100 had ool m er w . the In 44 ye e’ve ev #1 t a rs, t er hi for c usto ng we’v his is You mer e do c on t annot p service ne . his.” ut a pric e Do I

M t Be arty Ho strn Who Northw acek ood lesa Pinc le Outle s onn ing, t, MI

• Answer customer questions • Check prices and stock • Deploy workers where needed

• Accelerate training of new employees • Eliminate unscheduled meetings • Improve security and reduce shrink

Free 6 unit charger for every 6 radios purchased between March 1st and June 30th, 2016. (mail-in offer)

Motorola radios and accessories are stocked in the ACE, Do it Best and True Value warehouses.

800-248-5391 • www.acsradios.com

NRHA News

Industry Provides $76,000 for Retailer Education

I

ndustry manufacturers and distributors are collectively providing more than $76,000 in scholarship funds to pay part of the cost for 13 retailers to attend the North American Retail Hardware Association’s (NRHA) Retail Management Certification Program this spring.

Last month, a panel comprised of members of NRHA’s Retail Leadership Institute Advisory Board and NRHA’s Board of Directors selected the recipients based on their application essays and interviews, as well as specific criteria outlined by each scholarship provider.

“The financial assistance provided by these leading industry companies will help scholarship recipients improve their leadership and retail management skills and will allow participants to gain invaluable industry knowledge needed to achieve success as they advance their careers,” says Scott Wright, executive director of NRHA’s Retail Leadership Institute. “This will be the sixth class since we launched the program in 2013, and the awareness and momentum of the program continues to grow in the industry.”

“We couldn’t be more pleased with the generosity and support that industry manufacturers and distributors have provided through these scholarships,” says Bill Lee, NRHA President and CEO. “These companies and organizations are directly supporting the future leaders in our industry, which will help independent home improvement retailers continue to grow and thrive well into the future.”

There will also be scholarship opportunities available for the Fall 2016 RMCP class that starts in September, including additional scholarships from Stanley Black & Decker, Simple Green, Fulton Corp., Worthington Cylinders/Bernzomatic, the National Hardware Show® and NRHA.

16

HARDWARE RETAILING | February 2016

2016 Spring RMCP Scholarship Recipients • Benjamin Moore Scholarship: Alfred Mattison Jr., regional training/HR manager, Aubuchon Hardware, Westminster, Massachusetts • Do it Best Scholarship: Garrett Retz, assistant manager, Cardwell Do it Best Home Center, Indianapolis, Indiana • Hyde Tools Scholarship: Chris Hughes, president, Hardware Plus, Osceola, Indiana • PACOA Scholarship: Joseph Moscola, general manager, Doody Home Center, Brooklyn, New York • PacSoft/NRHA Scholarship: Lauren Mathews, communications manager, Connolly’s Do it Best Hardware, Fort Wayne, Indiana • Simple Green Scholarship: Kendra Weisflock, assistant manager, Gravenhurst Home Hardware, Gravenhurst, Ontario • Stanley Black & Decker Scholarships: Neil Warner, assistant manager, r.k. Miles, Manchester, Vermont; Ryan Rennells, manager, Home Central, Owego, New York • TRIMACO Scholarship: Brian Kortendick, vice president, Kortendick Ace Hardware, Racine, Wisconsin • Wooster Brush Scholarship: George Hazelbaker, operations manager, Burns Do it Center, Clovis, New Mexico • Worthington Industries/Bernzomatic Scholarships: Zack Dupuis, manager, r.k. Miles, Manchester, Vermont; Josh Rogers, assistant manager, Meade’s Do it Center, Irvine, Kentucky

THE VALUE OF KEEPING IT IN THE FAMILY This table has played host to everything from Christmas dinners to grandma’s bridge tournaments and arguments about politics and sports. When you sit at our table as a True Value® Member, you are family. You not only plug into the buying power of a successful co-op, but you have your choice of solid programs with our support every step of the way.

Here at True Value the word value isn’t only in our name, it inspires everything we do.

There are many reasons why more than 600 new stores have joined our co-op during the past three years.

If you value what we value, give us a call at

1-888-291-7229.

TrueValueCompany.com

©2016 True Value Company. All rights reserved.

NRHA News

Anytime, Anywhere; Always Connected

B

reaking industry news, retail management advice and new product information are only a few of the topics accessible in the palm of your hand with Hardware Retailing’s mobile app.

Providing you information on the go, the app allows you to stay connected with the industry whenever and wherever is convenient for you. Whether you’re in the airport, at the supermarket or waiting to get your car serviced, the retailing information you need is always available.

For more information on the mobile app or to download, go online to HardwareRetailing.com/hr-mobile.

SAVE YOUR FAVORITES Add stories to your favorites for a personal collection of articles.

Top benefits of Hardware Retailing’s mobile app:

EASY NAVIGATION Quickly find specific stories with the sidebar menu.

ON THE GO Access industry information anytime, anywhere.

SHARE POSTS Share stories via text or email with others from the palm of your hand.

PUSH NOTIFICATIONS Stay connected with important notifications.

“How do I Protect My Store?”

W

hile it’s something all store owners deal with, it can be difficult to keep business insurance straight. NRHA sat down with Brett Slama of Member Insurance to answer the questions most frequently asked by retailers. Below are two excerpts from the interview.

What can I do to protect my store and customers’ information from data breaches?

“The most important thing store owners can do is remain PCI-compliant and up-to-date with the malware and software plans available. I always recommend that my clients have an outside company review their software protection programs …”

How do I protect my rental inventory?

“The store owner’s most common problem is a customer running into the store, possibly with some form of false identification or method of payment, and disappearing with thousands of dollars [in rental equipment]. Now they never

18

HARDWARE RETAILING | February 2016

“I always recommend that

my clients have an outside company review their software protection programs …

—Brett Slama, Member Insurance

”

come back to return that equipment, but since the store owner has allowed them to rent the equipment, it’s not necessarily treated as theft within the insurance policies and within some state laws…”

Watch the full video online at TheRedT.com/1SK9iw7 to hear Slama’s full responses, find answers to more questions and learn how Member Insurance has tailored its plans to the needs of independent home improvement retailers. Other questions addressed include, “What is business income coverage?” and “What limits should I set for my policy?”

NRHA News

Celebrating 20 Years of Rising Stars

T

he need to identify and promote the next generation of young, aspiring independent home improvement retailers has never been greater to help ensure the success of the hardlines industry. NRHA’s Young Retailer of the Year awards program has recognized the success and accomplishments of young hardware and home improvement retailers who represent retailing’s future.

This year, the awards program is celebrating 20 years of rising stars, with a handful of noteworthy milestones along the way.

If you’re interested in nominating a retailer age 35 or younger for 2016 Young Retailer of the Year, please visit www.nrha.org/YROTY for more information. The deadline to nominate is Feb. 26, 2016.

20

HARDWARE RETAILING | February 2016

1997

2002

The frst annual Young Retailer of the Year awards program is held in Chicago.

Tanya Hanson becomes the frst Canadian retailer to be honored.

2007

2011

2014

James Cabirac becomes the only person to win the award twice.

For the frst time, NRHA honors international retailers from China, England and France.

The National Hardware Show® begins offering scholarships to honorees.

HORIZONTAL

N O R I AK &O ®

HORIZONTAL/VERTICAL

TRACTOR MOUNT

DEALERS WANTED ironandoak.com/HRM | (866) 281-4509 February 2016 | HARDWARE RETAILING

21

Trends Hardware Stores Seeing Housewares Sales Increase Housewares sales have dropped overall in the U.S., but home improvement stores have increased market share for the category.

Annual U.S. housewares expenditures slowed to 2.3-percent growth between 2013 and 2014, down from 5.9-percent growth between 2012 and 2013, according to the International Housewares Association’s (IHA) 2015 IHA State of the Industry Report.

However, hardware stores and home centers accounted for a larger share of housewares sales in 2014 than in 2013, the report says.

Below is additional data from IHA’s report that illustrates the total expenditures and growth in housewares subcategories that are sold in a large number of home improvement stores. IHA’s report includes additional subcategories less commonly sold at home improvement stores, so they are not included on the graph.

Applied to Retail: Housewares sales growth experienced in the home improvement channel and in the categories on the graph reinforces the fact that housewares remains a viable category for hardware retailers.

Outdoor equipment and furniture, for example, experienced strong growth over the past five years, which is in line with the overall trend of consumers wanting to create inviting outdoor living spaces. This growth is favorable for home improvement stores as they look to expand their lawn and garden and outdoor living departments, as well as add decor products that could be used to make the transition seamless from indoor to outdoor living spaces.

To see new products and upcoming trends in the housewares category, attend IHA’s International Home + Housewares Show, scheduled for March 5-8 in Chicago. For more information on the show, visit housewares.org.

Housewares Subcategories Sold in Home Improvement Stores Average Annual % Change Past 5 Years

2014 Total Expenditures (in millions)

Lamps & Lighting

$3,744

Outdoor Furniture

$3,312

11.4%

Outdoor Equipment

$3,249

17.7%

Laundry & Cleaning Equipment

Closet & Storage

Portable Heating & Cooling Equipment

$2,323

$1,647

$1,141

Source: 2015 IHA State of the Industry Report, International Housewares Association

22

3.7%

HARDWARE RETAILING | February 2016

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New Products

1

“We sold through these

highchairs quickly. They’re great for travel and are easy to pack on the go.

— Dana Sneade Banyasz, Sneade’s Ace Home Center

”

“These marshmallow and

weenie roasters mean no longer using hangers. The Fire Fishing Pole is flying off the shelves!

—Justin Helderman, Buffalo Shoals Hardware & Grocery

”

2 1. PORTABLE HIGHCHAIR The Ciao! Baby is the go-anywhere-highchair. It was designed for families on the go with small children.

This sturdy, portable highchair easily unfolds, locks into place and folds back up in seconds. It is made of durable material, with a clear vinyl tray cover that easily wipes clean, a built-in cup holder and a convenient carrying bag.

It’s lightweight and has a lap belt to securely hold any child up to 3 years old.

CIAO! BABY CHAIR BY JAMBERLY GROUP 502-241-5515 or www.theportablehighchair.com

26

HARDWARE RETAILING | February 2016

2. FIRE ROASTING POLE The Fire Fishing Pole by Firebuggz is a unique campfire roaster that is designed to look and feel like a fishing pole.

The product is made of durable stainless steel. It is available in four colors. The patented flipping mechanism allows the user to rotate the food by “jiggling” the pole for an even roast. Retailers have access to displays, which add to the impulse appeal for customers.

FIREBUGGZ 763-263-0115 or www.firebuggz.com

Retailer Picks The products featured on Pages 26-27 are selected by retailers like you. Share your favorite products by contacting Renee Changnon at rchangnon@nrha.org.

“The Rambler Tumbler says what it does and does what it says. It’s amazing the customers we’ve gained.

—Justin Helderman, Buffalo Shoals Hardware & Grocery

”

3 “Wigwam socks fit very well

with our branding efforts.

The socks are long-lasting and durable. Plus, they’re made in Sheboygan, Wisconsin, which is fun to say!

”

—Christian Herrick, Randy’s Do it Best Hardware

4

3. WORK SOCKS

4. STAINLESS STEEL TUMBLER

The At Work Foot Guard Socks are designed for the outdoor worker. The socks are available in three colors, including charcoal, navy and desert brown. These performance socks have stay-put legs, cushioned shins and soles and a seamless toe closure. The product is made of 37 percent stretch nylon, 31 percent wool, 31 percent acrylic and one percent spandex.

The YETI Rambler Tumbler is made with kitchen-grade 18 /8 stainless steel and double-wall vacuum insulation, which allows the tumbler to retain cold (or heat) twice as long as the average plastic tumbler. The exterior wall is built with extra steel for superior durability, and the crystalclear lid allows users to see the level of their beverage.

The Rambler Tumbler is available in two sizes and is BPA-free.

WIGWAM MILLS INC. 800-558-7760 or www.wigwam.com

YETI COOLERS 512-394-9384 or www.yeticoolers.com

February 2016 | HARDWARE RETAILING

27

New Products Project Tip

FOCUS ON GARAGE STORAGE Homeowners’ garages have become more than just a place to store vehicles. With the spring selling season just around the corner, it's a great time to remind your customers that, in addition to overhauling their homes, the garage could use some sprucing up as well.

If someone comes in for garage storage items, your employees should learn about their space and suggest products they can purchase. Read below for some additional tips: • Recommend that consumers tackle a thorough garage cleaning before any organization project takes place.

• Suggest vertical storage and ceiling organization items that won’t use up floor space. Promote wall hanging items and storage pieces to hold rakes, shovels, long-handled tools and more.

They can also store seasonal items in ceiling storage units.

• Arrange a display of assembled storage systems so customers can see them in use. This helps the customer visualize what it may look like in their garage and help them know how to assemble it.

MAVERICK, THE BEST NAME IN REMOTE BBQ THERMOMETERS, KEEPS GETTING BETTER!

ET-735 Remote Barbecue Thermometer

ET-733 Wireless BBQ & Meat Thermometer

300'

Range!

94 Mayfield Avenue Edison, New Jersey 08837 Tel: 732-417-9666 Fax: 732-417-9673

www.maverickhousewares.com

28

HARDWARE RETAILING | February 2016

Maverick makes the best remote cooking thermometers on the planet and we keep making them better! In 1991, Maverick invented the first digital cooking thermometer. Today, our model ET-733 is the leading seller in the premium remote thermometer category and comes with 2 stainless steel probes that monitor 2 meats, 2 BBQs or 1 meat and 1 BBQ from up to 300 ft away! Our next generation line of remote cooking thermometers now includes the ET-735 Bluetooth® Thermometer. This state-of-the-art model is app-enabled to work with your smart device and can be used with up to 4 probes! Call us today to find out more about this exciting revolution in remote cooking.

New Products How-to Sell

SELL THE BACKYARD BIRD OASIS According to Pet Age, 40.5 million U.S. households engage in backyard bird watching, and the market for wild bird feeders and seed was estimated at $5.5 billion in North America, according to the 2013 Wild Bird Feed Industry Research Foundation Benchmark Study.

Many retailers are adding or expanding this niche.

Here are a few ideas to keep in mind when building a wild bird category.

• Have someone lead the department with enthusiasm for the topic at hand. Whether you hire a bird-watching enthusiast or you enjoy the hobby yourself, a passion for the niche will let other hobbyists know they have a good resource.

• Find unique ways to display your birding products.

Offer a few bird food options to choose from.

Pull each of the different types of bird feeders out of the box to display them and increase interest among customers.

• Spread the word about your niche offering. Share it on Facebook, host educational events with experts in bird watching or find other ways to engage with bird watching enthusiasts.

Stock The Product That Will Be Leaping Off Your Shelves!

FrogTape® is the only painting tape treated with PaintBlock® Technology which delivers sharp paint lines the first time, every time.

Available in off shelf displays, make sure your store has FrogTape® stocked so customers can experience the FrogTape® difference!

frogtape.com

© ShurTech Brands, LLC 2016/65245

New Products

5 6

7

5. SWEET SNACK

6. FOOD PROCESSOR

7. BLUETOOTH PADLOCK

Sheila G’s® Brownie Brittle delivers the crispy and decadent edges of a gourmet brownie without the added guilt from high-calorie snacks. Brownie Brittle is available in a variety of flavors, including: chocolate chip, toffee crunch, salted caramel, mint chocolate chip and peanut butter. It is packaged in sizes ranging from one to 20 ounces, depending on the flavor. The products can be resealed and displayed standing on a shelf or hanging.

The Mini-Prep® Plus Processor is designed for small food preparation, from chopping herbs or breadcrumbs, to finely grinding hard cheese. Its versatility lies in its special Auto Reversing Smart Blade™, which makes it easier to process both soft and hard foods. Designed in Italy, the Mini-Prep’s sleek touch pad controls allow for easy cleanup.

LockSmart is the first patented, keyless Bluetooth padlock controlled by an iOS or Android app. The tough, waterproof LockSmart provides users with a keyless, trackable and secure solution for conveniently locking and accessing valuables.

LockSmart’s intuitive app allows owners to manage one or several padlocks with a convenient app and instantly share lock access with others while tracking lock use. All activity can be viewed in the app, which displays username, date and time of use. Additionally, user access can be revoked at any time.

BROWNIE BRITTLE, LLC 800-BROWNIE or www.browniebrittle.com

CUISINART 800-726-0190 or www.cuisinart.com

DOG & BONE sales@dogandbonecases.com or www.dogandbonecases.com

30

HARDWARE RETAILING | February 2016

baldwin style. hsi speed.

with same-day shipping from hsi.

Baldwin’s Reserve Series ofers homeowners an unmatched balance of style and afordability. HSI ofers retailers unmatched speed and support for special order door hardware. In the end, you can ofer your customers … well, more.

This is how special order is supposed to work.

this is hsi.

Learn more at hardwaresuppliers.com/more

Special Order Supplier of Door Hardware 800-334-5625 | hardwaresuppliers.com

New Products

FOR THE

FIRST TIME EVER

WIFI ENABLED SMOKERS

8

SEE THE NEXT GENERATION OF OUTDOOR COOKERS AT CHARBROIL.COM Digital Electric Smoker with SmartChef ™ technology

9

charbroil.com

32

HARDWARE RETAILING | February 2016

8. TABLE BASE

9. WORK BOOT

The TL/LX Series Table Base by Doug Mockett & Company, Inc. is made of polished aluminum. The table has smooth arching legs that bow outward, and smaller legs bow upward to fasten the top. The center rail strengthens and balances the design. The sleek statuesque display is complemented by its versatile functionality and robust construction.

Its legs slide onto the track from either end and tighten down to hold it in place.

The Second Shift Work Boot by CAT Footwear is a durable classic boot. The boot comes in a soft toe or a steel toe, is slip-resistant and has electrical hazard protection. The sock liner also features special Climasphere™ technology. The boot is available in many colors.

DOUG MOCKETT & COMPANY, INC. 800-523-1269 or www.mockett.com

WOLVERINE WORLDWIDE, INC 866-699-7375 or www.catfootwear.com

America’s Most Trusted Name in Wood Care

10 Give them the NEW!

Best Shine for their Wood Floors

11 Give your growing wood floor care category a quick and easy sales and profit boost!

Look for our national TV ad campaign in 2016.

10. GRIP COMPOUND Gitta-Grip is a patent-pending product that enhances the grip between a tool and a fastener, making it useful for damaged screw and bolt heads. A small amount applied on the contact surface of a screwdriver, wrench or socket does the job. It is easy to use and makes a time-consuming job a quick fix. Gitta-Grip Enhancing Compound also aids in the initial installation of the fastener.

Available at: Ace

GITTA-GRIP 978-692-9450 or www.gitta-grip.com

Item #060-1468

Item #1536721

Do it Best

Item #601678

Orgill

True Value Item #182852

11. GRANITE CLEANER The MAAS Granite and Stone Cleaner uses precision pH balance to protect granite and stone. MAAS will not dull or remove sealers from granite and stone, helping diminish maintenance costs.

The product is water-based, so it does not leave fingerprints or product buildup.

It applies long-lasting brilliant shine.

MAAS INTERNATIONAL INC. 630-654-4743 or www.maasinc.com

www.scottsliquidgold.com For more information, call or email: 1-800-447-1919 hardware@slginc.com

NEW PRODUCTS

12 13 12. CORDLESS BAND SAW

13. WINDOWSILL EXTENDER

The 20V Max XR® Brushless Deep Cut Band Saw is a cordless, full-size band saw, which provides long runtime and fast cuts.

It can be used in mechanical, electrical, HVAC, sprinkler and general contractor applications. The new band saw features premium ergonomics and an efficient brushless motor. The band saw is a lightweight and well-balanced tool that provides users with their choice of orientation for comfortable use.

SuperSills is a product that lets users grow indoor plants and fresh vegetables at home by taking advantage of natural light and indoor climate control. It expands the standard windowsill size to make a window shelf for plants, knickknacks or as a nightstand. The shelf can hold up to 30 pounds level. SuperSills was designed to not harm a user's windowsill. It connects to the inside of a home’s single or double-hung windowsill.

DEWALT INDUSTRIAL TOOL CO. 800-4-DEWALT or www.dewalt.com

THE BORGEN GROUP LLC 336-757-6350 or www.supersills.com

DELIVERING THE BEST QUALITY Customers praise the ease of handling and durability of the Brave line-up. From hot or cold pressure washers to log spliters, earth augers and trenchers, Brave stands ready to take on any job!

braveproducts.com/HRM (866) 281-4421 EARTH AUGERS 34

HARDWARE RETAILING | February 2016

LOG SPLITTERS

TRENCHER

14

Redefining the term . . .

SUPERMARKET!

15 LeConte Center 14. TRASHCAN ODOR ELIMINATOR The minibini trash bin odor eliminator uses membrane technology to deliver a powerful formula of odor neutralizers and natural fragrances. Each refill provides 30 days of freshness. The docking station sticks to any surface, easily attaches to the minibini and acts as a colorful reminder to replace the minibini or to buy a refill. It is made from an ultra durable, water-resistant, thermoplastic polymer. The housing unit is sleek and fits in with all trash can styles.

Pigeon Forge, Tennessee

April 6 - 8, 2016

THINK PRODUCT LAB support@thinkproductlab.com or www.minibini.com

15. FIRE STARTER

“The Distributor for Stores and Brands You Trust.”

The Looftlighter is a Swedish patented invention that can start a fire in seconds with superheated air. The product uses heated air to start the grill. With no direct flame, the Looftlighter is a safe fire starter. The aluminum heat shield helps cool down the Looftlighter quickly. It is also eco-friendly, as it just uses hot, clean air.

LOOFT INDUSTRIES 855-905-6638 or www.looftlighter.com For more info, call Eddie Flynn or Richard Snowden 800.776.0976 • marketing@wallacehardware.com MORRISTOWN, TENNESSEE 37815

Checkouts PROMOTIONS

Ugly Promotion Turns Pretty

“W

hat homeowner wouldn’t want the opportunity to give their ugly kitchen a makeover?” This was the question the team at Geerlinks Home Hardware Building Centre turned into an opportunity. The store is unique in that it also has a home furniture section.

“We wanted to let the community know we can design, supply and install kitchens,” says Murray Cutler, who helps with marketing and advertising for the store, which is located in St. Thomas, Ontario. “We had heard of some other stores that had done a similar program, so we did some research to develop this one.”

The contest asked participants to submit two pictures of their ugly kitchens on the store’s website and provide a reason why they deserved to win the grand prize, a $12,900 kitchen makeover completed by the in-store designers.

The contest was promoted on Facebook, website, in-store, in the local newspaper and on the radio, resulting in more than 100 entries.

After submissions were gathered, family, friends and anyone who visited the store’s website could vote for

the ugliest kitchen, which helped narrow the contestants down to 11 finalists.

A representative from Home Hardware, the mayor of St. Thomas and an executive from the cabinetry company the store works with were the final judges. They crowned the winner at a special event, and the other 10 participants received coupons to help them in their makeovers.

The idea for the promotion was developed in August and launched in September, and it was a great success.

“We’ve certainly had additional people come in and purchases have increased since promoting this contest,” says Murray.

Along with driving sales and purchases, the promotion increased awareness of the store’s furniture department, he says.

“The promotion got a lot of buzz online and raised awareness about the store,” Murray says.

“We also invited in the local media for the winner reveal, and then it became a story in four newspapers and on the radio,” he says.

Members from Geerlinks Home Hardware Building Centre’s installs team, the contest’s three judges, and two vice presidents from Geerlinks join the grand prize winner of the kitchen makeover, along with two runners-up.

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

36

HARDWARE RETAILING | February 2016

LET THE LITTLE THINGS

MAKE YOU HAPPY

Introducing Peg & Storage Hardware A Complete Line of Organization Products for the Home

www.natman.com

40189_SN 0116

Checkouts

MERCHANDISING

A Creative Entrance

W

alk into Hunts Do it Center in Whitehall, Michigan, and the first thing you’ll notice are the unique door handles.

After attending a training seminar at the Do it Best Corp.

Winter Conference last January, store owner Jeff Cockerill wanted to find ways to create unique shopping experiences for the customers who come to his store. Why not start with the first thing people touch when they visit?

The door handles on Hunts Do it Center’s doors were made by the store’s employees using items that can be purchased from the store. This provides a true sense of the store’s commitment to the products they sell and also gives shoppers a memorable experience. Employees of Hunts Do it Best have received hundreds of positive comments on their unique door handles.

Think of ways that your store can benefit from incorporating exciting shopping experiences. Customers are more likely to return if they find something interesting and memorable about their visit. The only limit is your creativity!

Employees at Hunts Do it Center constructed unique door handles made of products sold at the store.

COMMUNITY RELATIONS

HomCo Customers Get in the Hawaiian Groove

D

Customers likely enjoyed the chance to do the Hula in the checkout line as much as they enjoyed the 10-percent discount.

38

HARDWARE RETAILING | February 2016

id you know July 27 is National Hula Hoop Day? More than likely, most customers walking into HomCo in Flagstaff, Arizona, last July didn’t know either. But when store staff offered them 10 percent off their purchase if they gave the hoop a twirl, they started practicing their moves.

Christina Russo, marketing coordinator for HomCo, looks for ways to engage customers and get them excited about being in the store. She discovered National Hula Hoop Day while browsing the web, and decided it would make a great way to generate some excitement.

She started by bringing Hula hoops to the morning employee meeting and seeing who could keep the hoop going the longest. “That’s how our employees started their day,” she says, “so they all got engaged in the activity and had some excitement to pass along to customers.”

Throughout the day, cashiers told customers that if they tried to do the Hula, they would get 10 percent off their purchases.

“It was a hit,” says Russo. “A lot of customers got in on the fun. How often do you do the Hula while standing in line at the hardware store? It was a fun and simple way to get customers interacting with our employees and set us apart from the big-box stores by highlighting the individuality of our brand.”

We’re pleased and proud to introduce Comfort Durability Dependability

PREMIUM WORK GLOVES EST7790 SYNTHETIC LEATHER PALM This MULTI-PURPOSE glove is ready for anything, with a tough synthetic leather palm and a breathable, durable, spandex back of hand.

EST7795 TOP-GRAIN GOATSKIN PALM This HI-DEXTERITY glove is great for jobs requiring tactility, with a tough, fexible goatskin palm and a breathable, durable, spandex back of hand.

EST7990 PREMIUM SPLIT COWHIDE PALM This HI-IMPACT glove is designed for maximum protection and versatility with a tough, fexible goatskin back and a treated premium split-cowhide palm with aramid stitched palm padding.

Contact us to learn more about these exciting new gloves.

800-426-8860 gloves@lfsglove.com www.lfsglove.com

12-peg Estwing® planogram showcases all three styles six pairs per size.

Manufactured under license by LFS Inc. Estwing and the Estwing logo are registered trademarks of Estwing Manufacturing, Inc. www.estwing.com

WE’VE GOT YOU COVERED. From corner hardware to building centers, our full spray foam insulation assortment will exceed your customer needs.

Checkouts

MERCHANDISING

A Showcase for Loyal Customers

B

uilder customers at Nunda PRO Lumber and Hardware in Nunda, New York, get an extra perk for their loyal business. “Contractors can submit photos of the houses they’ve built and we’ll display them,” says Larry Mallaber, vice president of Nunda PRO. “It becomes a great way for them to show off what they’ve done.”

Mallaber puts the framed photos, which include the name of the builder, along the top of the merchandising racks around the store. Customers looking for a contractor to build or remodel a home might see a photo and want to know more about the builder, information Mallaber is happy to provide. It turns into a win-win situation for all—builders get to showcase the different styles of homes they’ve built, and Mallaber gets to thank his loyal pro customers by helping them generate new leads.

It turns into a win-win situation for all—builders get to showcase the different styles of homes they’ve built, and Mallaber gets to thank his loyal pro customers.

Ready To Use Spray Foam in a Can

Professional Gun Foams & Sealants

Professional 2-Component Spray Foam Kits

Professional Gel Foam Adhesives

Take advantage of special offers at spring coop shows!

(800) 325-6180 • touch-n-foam.com 40

HARDWARE RETAILING | February 2016

Mallaber lines the tops of shelves with photos of the homes his customers build.

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Checkouts

Sierra Valley Home Center sells Melissa & Doug personalized toys, which have become popular with area businesses.

UNIQUE PRODUCT

Businesses Advertise With Personalized Products

TOUGHEST ON THE B BLOCK

...and the floor If you’re looking for a tough solution for basement water problems, DRYLOK® Masonry Waterproofer has you covered. No matter what your basement plans are, dry and bright is a great start. DRYLOK is the proven brand for stopping water and decorating your space inside and out.

Visit us at www.ugl.com or call 1-800-845-5227 to see how we can partner with you to create a successful UGL dealer program.

42

HARDWARE RETAILING | February 2016

esides handing out business cards, another way for a company to advertise is through personalized products, such as magnets, keychains or coffee mugs.

Now, local businesses in Loyalton, California, are getting their names out to their youngest consumers by personalizing children’s toys.

It’s all thanks to Sierra Valley Home Center, which sells personalized wooden toys from toy manufacturer Melissa & Doug.

“We showcased these at our recent ladies’ night event, and the response was outstanding,” says owner Kim Folchi.

She set up a display that included Loyalton Fire Department fire engines, a Sierra Valley Stables horse carrier and other toys customized with the names of various local businesses.

“We even had custom ‘I Fly Sierra Valley!’ airplanes,” she says.

“Customers were thrilled, and several have since placed orders for individual personalized toys for their businesses or families.”

Want to try something similar in your store? See if you can find one or two lines of popular products that might benefit from personalization (the housewares category in particular could really benefit from this service), and offer this option to other businesses in your area.

It can help you grow your customer base and provide those companies with a unique form of advertising.

Checkouts

UNIQUE PRODUCT

Employees Team Up to Create Annual Calendar

N

ow that a new year has arrived, your customers will need a calendar—why not offer them one your employees have created?

That’s what the staff of Friedman’s Home Improvement did. The retailer, which has four locations in California, asked the company’s team members to submit nature photos. From there, they created a “Seasons of the Northbay” calendar for 2016.

The calendars are on display at the checkout counters at each store, and customers can grab a free copy when their purchases are being rung up.

This isn’t the first year for the calendars. Tony Corsberg, vice president of merchandising, first thought of the idea in 2008.

“I saw it as a marketing opportunity, a way to communicate our local market position,” he says. “I thought it was kind of cool to have our team members capture the beauty of our local area.”

Each year, a small group works together to select an annual theme—the theme for 2016 was nature—and invites all team members to submit their favorite photos that fit that theme.

Themes from past years include Sonoma County scenes, flowers from around the county and holiday scenery.

“The small group selects the photos from nearly 100 submitted photos,” Corsberg says. “The selection process is harder than you would think.”

Staff in the marketing department designs the calendar, and it’s distributed to customers and employees starting in late November.

About 10,000 copies are printed.

“Over the years, the response has been tremendous,” says Corsberg.

“We are always asked when the calendars will be coming out,” he says. “We’re usually out of stock within a couple of weeks.”

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Anatomy of a Leader Identifying and Developing Future Retail Leaders in Your Organization

T

he topic of leadership development has never been an easy one to address. For one, it’s very subjective. Everyone has a different definition of leadership and a different take on the qualities good leaders should possess.

We’ve all worked with good leaders as well as poor ones.

And both types have shaped, on a very personal level, our opinions of what leadership should look like.

So how do you identify and develop good retail leaders?

First, let’s look at the characteristics of a leader. A strong leader is one who can communicate well, who accepts or even asks for constructive criticism, who can think on his or her feet and who can be flexible about different, and sometimes difficult, situations. It’s important for strong leaders to be patient, humble and responsible as well.

Many experts and leadership gurus believe the best way to learn about leadership is by learning from real-life leaders. That’s why sites like TED Talks and Leadercast have millions of regular viewers.

Hardware Retailing and the North American Retail Hardware Association (NRHA) Retail Leadership Institute recently conducted a series of interviews with four up-and-coming retail leaders in our industry. All four have been through NRHA’s Retail Management Certification Program and have recently been promoted to new leadership roles within their respective companies. Each is now responsible for grooming the next generation of

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HARDWARE RETAILING | February 2016

leaders in their organizations. And each has a different style and approach to the subject of leadership.

While leadership is not a subject that’s easily dissected, it is a topic with real implications for the continued growth of our industry. In recent surveys conducted by NRHA and Hardware Retailing and presented at the NRHA State of Independents Conference in December, retailers reported the biggest challenge to both their short- and long-term growth is finding the right employees. If finding good employees for any position is a challenge, then finding future leaders to step up and run your stores will be even harder.

Continued industry growth and success in the face of new and existing challenges will require identifying capable leaders at all levels within stores, and then grooming them to reach their full potential. We’ll offer you the following information in the pages ahead: • Page 50: Read excerpts of interviews from four industry leaders. You can find the full interviews on hardwareretailing.com.

• Page 54: Learn more about two best-in-class management-in-training programs from two independent hardware retailing operations.

• Page 56: Find out what steps to take next to help your potential leaders start management training, and learn about some other leadership tips and resources.

Forward Thinker

Good Communicator

Passionate

Motivator

Flexible

Supportive

Hard Worker February 2016 | HARDWARE RETAILING

49

Leading By Example Recognizing Potential

Tyler Russom District Manager Buchheit Enterprises Eight Large-Format Farm Stores/ Home Centers Located in Southeastern Missouri and Western Illinois Tyler Russom is a no-nonsense leader. He cut his leadership teeth working for Lowe’s, going through its management/leadership training rigors. This is where he learned about leadership by example— both good and bad. After leaving Lowe’s, he found his “second home” working with the Buchheit family, managing one of its large-format farm and home stores in Jackson, Missouri.

Russom earned his stripes managing that store in a “trial-by-fire” situation, and recalls a defining moment of his career after an ice storm ravaged the community in 2009. “I stayed at that store from 7 a.m. to midnight for days, keeping it open late so customers could come in and get what they needed.

It was a huge boost to the community, and by owning a trucking company, the Buchheits were able to bring in needed supplies other retailers couldn’t.”

Russom rallied the troops, demonstrating leadership skills the family took note of. “The whole team was on board 100 percent, and nobody minded working until midnight. I think that’s when the Buchheit family realized I had the commitment to do what was needed without being asked or told.”

After graduating from the Summer 2013 RMCP class with honors, Russom was promoted to district manager, where he continues to lead by example and represent the company name with pride.

Read more from Russom at TheRedT.com/1ITiTyD.

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HARDWARE RETAILING | February 2016

I’ve always been pretty good at recognizing potential in people. But I’ve made some mistakes along the way and have pushed people above what their skill level is and set them up to fail. That’s the biggest injustice you can do to someone—push them above their skill level, and then they fail. When they fail, you fail.

Leading by Example What I abide by is trying to lead by example and be a good influence, both at work and away from work. I feel like I can inspire people. I feel like I can manage anyone and different personality types, because I can adapt to different people.

Recruiting You rarely get a good candidate who walks in the front door. You have to find them. I think we’re doing a better job recruiting people today than in the past.

,

Building the Team Painting the Vision

Christian Herrick Vice President of Retail Operations Randy’s Do it Best Hardware Two stores based in Timberville, Virginia

I have painted a clear vision of a career path for [my employees], and they have all bought solidly into it. I saw a lot of potential in each of them and how they fit into the business. They didn’t envision a career in hardware retailing, but now they all have a clear idea of making a career of this business.

It wasn’t always a given that Christian Herrick would have a career in retail. What was a given, however, is that he would be a leader in whatever career he chose.

Herrick’s leadership journey has covered a lot of territory, taking him from missionary work in Alaska to a service manager job in Las Vegas. When he and his wife Rachel returned to her home in Timberville, Virginia, after the birth of their first child, Christian took a job as a merchandiser in her dad’s hardware store, Randy’s Do It Best Hardware. And the rest, as they say, is history.

Christian fell in love with hardware retailing and quickly established himself as a leader within the organization. In 2011, after a few years of talking with owners Randy and Shirley Andes, Christian would open a third store in Bridgewater, Virginia, and would take a leadership role in opening it and getting it established by developing and coaching his own leadership team.

Today, Christian is vice president of retail operations for the business, which, through his efforts, has experienced double-digit growth. He has brought an open communication style and fresh ideas, and is currently preparing for a Super Walmart to open across the street from the Timberville location this summer. That was the focus of his business improvement project for the Spring 2015 RMCP class.

Read more from Herrick at TheRedT.com/1OdMdwi.

Hire for Attitude I’ve tried it both ways … hiring for attitude and hiring for skills. People who are experienced—tradesmen or salespeople—really haven’t worked out. None of them. The ones who succeed are hard-working, friendly people, regardless of their experience.

Plenty of Leeway With potential leaders, give them leeway and let them excel and make mistakes.

One thing that’s been helpful to my development as a leader is [owners] Randy and Shirley have always let me try new things and made me feel like the sky is the limit.

February 2016 | HARDWARE RETAILING

51

A Diamond in the Rough In It to Win It

Josiah Gates

You can’t be afraid to take measured risks. Oftentimes the monetary reward far exceeds the risk.

Vice President of Retail Innovation Aubuchon Hardware 110 Stores located throughout the Northeast One of Josiah Gates’ favorite sayings is: “Great leaders develop great leaders.” This is largely out of respect for the key mentors he has had along his leadership journey at Aubuchon Hardware, including former Chairman Bill Aubuchon III and former President and CEO Marcus Moran Jr., who refer to Gates as their “diamond in the rough.”

The Aubuchon family has held Gates up as a shining example of how hard work, dedication and determination can propel a career forward, even if you don’t share the name on the front of the building.

After 10 years managing one of the company’s highest volume stores, Gates was promoted to Director of Retail Operations, with the responsibility of developing innovative new programs and services. He rolled out countless profit-producing programs and played a leading role in developing the company’s “Dominant Hardware Store” program.

As the newly appointed Vice President of Retail Innovation, Gates continues to develop and execute numerous key niche categories and services that drive millions to top-line growth.

A Summer 2013 RMCP graduate, Gates now serves as a course instructor for the program. As a student, he and a classmate developed a comprehensive Save a Store/Fix a Store plan to help under-performing stores reach higher performance levels.

Read more from Gates at TheRedT.com/1RmhYtj.

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HARDWARE RETAILING | February 2016

Team Building When I was a store manager, I could always hire on a handshake and get quality people. I had very little turnover.

Even though we had extensive pre-employment surveys, word got around that I was fair, that I appreciated people and I would never expect an employee to do something that I wouldn’t roll up my sleeves and do myself.

Fewer to Pick From It’s getting harder to find potential leaders and people with the right attitude.

It’s going to be very challenging to bring up the next generation of independent hardware retailers without this desire. It seems young people want to make $100,000 before they make $10 per hour.

Courageous Leadership Motivating Employees

Jim Rivas Director of Store Operations Friedman’s Home Improvement Four large-format home centers based in Santa Rosa, California Jim Rivas has worked in retail management nearly his entire career. When he was in his early 20s, he managed a store for Home Depot during a time of unprecedented growth for the company. In fact, he was there during the leadership transition from co-founders Arthur Blank and Bernie Marcus to Bob Nardelli and witnessed dramatic changes in the company’s leadership philosophy and culture.

Since returning to Friedman’s in 2009 (he worked at the Santa Rosa store in high school), Rivas has risen through the ranks, managing the company’s Ukiah, California, store, until his promotion last year to director of store operations.

One of the most defining leadership moments in his career came before his return to Friedman’s, after he was recruited by a leading national big-box electronics retailer. As he was going through that company’s manager-in-training program, Rivas found himself in what he called “a corrosive environment,” with a dishonest manager who was “cooking the books.”

“I wasn’t OK with it,” he says. “I was a whistleblower.

I had enough courage to do what was right.”

A recent graduate of NRHA’s Spring 2015 RMCP class, Rivas revamped Friedman’s centralized delivery/dispatch functions, resulting in returning more than $100,000 in gross profit dollars to the company.

Read more from Rivas at TheRedT.com/1ZQwc70.

You have to learn to understand people and what motivates them. I’ve been a department manager, an assistant store manager and a store manager.

As a young manager, it is important to be able to transition from doing, to delegating, to appraising people’s performance.

Hiring Demands Studies have shown that if a customer enters a business and deals with smiling staff, they will purchase 12 percent more. In-and-Out Burger has two people involved during the interview process. One person conducts the interview and the other counts smiles.

Thinking Differently As a leader, you have to think more like an architect than a builder. Before, I was an assembler.

I could assemble the perfect store and know it would get executed exactly the way the team wanted it. Now I’m creating the plan. It’s exhausting, and it takes a bit of mental horsepower.

February 2016 | HARDWARE RETAILING

53

Management-in-Training Programs

McLendon Hardware’s program includes job shadowing and classroom training elements.

S

ome businesses have put their own programs in place to help train promising leaders.

These management-in-training programs are comprehensive programs for individuals who have potential to take on managerial roles. While they’re all a little different, most include a combination of classroom training and job shadowing.

We spoke with representatives from McLendon Hardware, which has seven locations in Washington, and Cole’s Hardware, with 11 locations in Pennsylvania. Both have created successful, best-inclass management-in-training programs.

Even if you have a smaller operation, you can still learn from these two stores on how to develop leaders in your business. To begin building your own, start small and try a couple of ideas from the different programs.

McLendon Hardware Once a year, McLendon Hardware offers a 16-week management-in-training program to develop new managers for their operation.

It usually starts in June, giving recent college graduates the opportunity to participate. Internal

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HARDWARE RETAILING | February 2016

candidates are encouraged to apply, as are new hires who apply with the company specifically to participate in this program and become an entrylevel manager after its completion.

After a week of orientation, there’s a 10-week department rotation. “The goal of this time is to give a good underlying foundation of the culture of the business, especially those without recent hardware experience,” training specialist Sarah Schillen says.

“For our internal candidates, it’s a review, as well as a good networking opportunity.”

During those 10 weeks, the candidates spend three days each week with an employee who is identified as an expert trainer, usually in a particular product category.

The trainer they work with changes from week to week, allowing the candidate the opportunity to travel to the company’s different stores.

One day a week is spent shadowing a manager at the store the candidate is working in that week.

“This gives them exposure to many different managers within the company and management styles that they themselves might employ,” Schillen says.

The final day is spent with a manager who serves as a mentor. The two are paired up on the first day of the program.

The partnership benefits both parties, Schillen says. “This has been good for managers, as it gives them the opportunity to develop as a leader and mentor and be that sounding board and guide as the candidate goes through the program.

Mentors also give managers-in-training someone who they can talk to as they have questions.”

The next step is transition week, when candidates complete assignments or spend a day shadowing in a particular department. Next, they head to the classroom, where they do four weeks of intensive classes that include lectures, activities and reading assignments. There’s a test at the end of each week.

“The classroom sessions are taught by a variety of our management staff, executives and specialists who can give them a good working knowledge of the business,” Schillen says. “We cover human resources, accounting, inventory and loss prevention, along with a variety of leadership topics and soft skills training.”

The members of management who teach in the classroom are required to learn and teach a specified curriculum, she says. “We want to provide those leadership tools across the board to all of our trainers. There’s a lot of value in gathering staff from multiple locations into the same room, to meet and work together and collaborate.”

There are four check-ins throughout the program to make sure candidates are on track with training. “We can help them at any time, but this is a good way to make sure we touch base regularly,” Schillen says.

Candidates who successfully complete the program are guaranteed an entry-level manager position at one of the business’s seven locations.

They have seen positive results from the program so far, Schillen says.

“We have a fairly high retention rate of managers-in-training overall,” she says. “It’s in

“Through these courses,

which are based around leadership communication, delegation, planning, organizing and conflict resolution, and they’ve helped us identify potential leaders.

”

—Jason Budman, Cole’s Hardware

the inherent nature of the program that they need to be driven, so it’s good to see them working to reach that next level.”

Cole’s Hardware The management-in-training program at Cole’s Hardware runs six months. To identify potential leaders who would be a good fit, the staff utilizes some local outside resources.

Potential candidates start with skills training for personal growth from Pennsylvania State University and Dale Carnegie instructors.

“We bring in a trainer from Penn State two times a year to teach two full-day sessions,” says Jason Budman, who works in human resources and store operations. “I think this has really helped individuals who may not have had the confidence before to recognize that they have these leadership abilities. These courses are based around leadership communication, delegation, planning, organizing and conflict resolution, and they’ve helped us identify potential leaders.”

The Dale Carnegie courses take place one night a week over several weeks and focus on personal skills, such as self confidence and public speaking.

These courses help identify potential leaders, who then move on to the six months of on-site training under a training manager. Budman created a checklist that includes specific training goals the manager-in-training and store manager follow.

“It’s a list of different things that, from an operational perspective, are what the candidate needs to learn and become competent in to move on to the next level,” Budman says.

Managers-in-training learn about different operational procedures, too. “A high percentage of what they learn involves executing business procedures,” Budman says. “They have to come to a point where they are physically doing it and are competent in handling these daily procedures.”

During the program, Budman regularly checks in with participants and their mentors. “At the end of the six months, if the individual is ready to move on and we have an opportunity for a management position, we can take advantage of that at that time.”

He works to find a store that’s geographically convenient for the new manager. If opportunities aren’t available right away, that person is top of mind for the next available management position.

“We keep them in their training store until an opportunity is available,” he says. “We don’t want to force anything; we always want to put someone in a position that will advance their career.”

Budman is happy with the results he’s seen from the management-in-training program.

“We’ve had some people who have really flourished as a result of the program,” he says.

February 2016 | HARDWARE RETAILING

55

Your Next Steps

N

ow that you’ve identified your potential leaders, what do you do next?

There are a variety of ways to get those potential leaders into management training.

No matter what your store size or your training budget is, there are several options for you.

First, take a look around the industry. NRHA offers its Retail Leadership Institute, which includes outreach programs such as retailer roundtables, which offer opportunities for small groups of retailers to share best practices, and the Retail Management Certification Program, a six-month, college-level class for honing leadership and management capabilities.

We’ve listed some more ideas below. For a more complete list of training programs, visit TheRedT.com/1KbAeOh. To learn about some hypothetical scenarios involving stores of different sizes and with different training budgets that can help you determine your best course of action, visit TheRedT.com/1MWb3Pm.

Ask Around The first thing you may want to do is talk with your distributor about some training options.

Many will have training programs your most promising employees can complete, and most will at least have a staff member who’s in charge

56

HARDWARE RETAILING | February 2016

of training and can give you some additional resources or advice.

Some of the leadership training offered through a co-op or distributor may be free online or available at the buying shows you already attend.

Look for options in your community, too. For example, some local colleges and universities may offer workshops and conferences that are open to nonstudents.

In-state tuition at community colleges could also make leadership classes affordable for your employees.

You may want to handpick a few managers to alternate taking courses the company pays for, or offer some tuition reimbursement if your top staffers pursue professional development classes on their own.

In addition, contact local chambers of commerce and economic development organizations and ask whether they can recommend nearby training seminars or ongoing educational programs. Those groups also offer great ways to network and meet owners of other local businesses.

You could also hire organizations such as SkillPath and Dale Carnegie to conduct in-store training on broad topics such as problemsolving, leading teams, learning to delegate and effective communication.

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“I’d say that’s one of

the biggest benefits of the program—there’s an expectation of what it means to be a leader in this company, so we can recruit and retain those who are at that level.

”

—Sarah Schillen, McLendon Hardware If hiring outside organizations isn’t an option due to budget limitations, think about your business relationships or connections through local colleges.

An executive from a company outside the industry may be willing to give a talk for your managers, or a visiting speaker at a college event might be available to host a short workshop.

Try Your Own Another option is to put together your own program, like Cole’s Hardware and McLendon Hardware have done.

It’s a good way to not only identify leaders, but also gives those who may not have previously considered a career in hardware retailing opportunities to gain some experience.

A result can be added diversity to the staff, bringing in managers with different types of background experience, Schillen says.

McLendon Hardware’s program has helped the business increase the level of professionalism among management, she says. Schillen suggests other retailers consider a similar program for the same reason.

“It has allowed us to inspire growth on a deeper level,” she says. “I’d say that’s one of the biggest benefits of the program—there’s an expectation of what it means to be a leader in this company, so we can recruit and retain those who are at that level.”

Budman also encourages other retailers to try a similar program. “I think the investment in your people is critical. The competitive landscape continues to change and evolve, and as a result, it will be challenging to attract and keep great people. This program is a recruiting tool, as well as a retention tool.”

He suggests retailers make sure that their programs support the individuals as well as the businesses and that strong measurable goals

58

HARDWARE RETAILING | February 2016

are set for each employee. “It’s also important to make sure your program supports your work culture and focuses on your mission,” he says.

If you’re worried your business is too small to support a management-in-training program, then start with a modified version and build as you can, Schillen says.

“Even if, initially, you developed three human resources classes and one on leadership, that’s fine,” she says. “Ideally, it’s better to start small and grow than wait till you have the resources for a comprehensive program.”

Your First Steps If you’re feeling overwhelmed, one of the first small steps you can take is to start with other resources, such as books or online videos.

NRHA has provided a list of resources online at TheRedT.com/1ZQwhHF. Buy a few of the books mentioned on the list and start a small library for your employees, or pick a couple of favorites and ask employees to read them if you think the staffers would make good leaders. Also, print out the NRHA resource list and post it by a shared computer in your store.

When business is slow, encourage your employees to read some of the online articles or watch some of the videos, such as TED Talks.

Even small steps like these are good ways to start developing your business’s next leaders.

Try a few options around your store, too. Even if you don’t have a formal program, you can set up a job-shadowing program where promising employees shadow different department managers in your store. Even just a few hours of job shadowing at a time can offer those employees some good learning opportunities.

If you have more than one location, consider having employees shadow managers at different stores as a way to broaden their experiences. This is especially helpful if you focus on different categories at different locations; for example, one of your stores may have a lumberyard and the other may not.

You can also offer a series of workshops or classes for employees you’ve recognized as potential leaders. Try a 30-minute class every week for six weeks, focusing on a different leadership topic each time. You or your managers can take turns teaching the classes.

While it will take some time for your team to put together a syllabus for the classes, it won’t cost much and will be a good start for those employees who are growing into leaders within your operation.

Hardware Retailing staffers Liz Lichtenberger, Kate Klein and Scott Wright contributed to this article.

How Do You Go to Market?

Making the Most of Your Time Before, During and After Your Distributor’s Buying Show

I

f you’re like the typical home improvement retailer, at least twice a year, you will pack your bags and head off to your distributor’s buying market.

It’s time to stock up on inventory, network with fellow retailers, attend an educational seminar or two and look for some of the latest products your customers will be wanting.

But have you ever wondered if you are making the most of your time at the market? You have a lot to pack into two or three days, and it’s easy to feel overwhelmed once you hit the show floor. It’s even easier to get overwhelmed as you think about how you should prepare for and wrap up after the show.

So, how do you go to market?

It’s much more than visiting a different city and strolling the market floor, buying some things here

and there and chatting with a few people you see only twice a year.

Instead, you should try to plan well in the weeks, or even months, leading up to your distributor’s buying market, and follow up with employees or vendors once you’re back in your store after the market.

The editors at Hardware Retailing reached out to three long-time market goers who have well-planned steps they take before, during and after a buying market. While everyone’s process is a little different, learning what other retailers do may give you some ideas of how you can improve in your own processes.

Read on to learn more—you may find some ideas you want to implement during your next show.

And after you read, visit TheRedT.com/22Qq5So for a Q&A with one retailer who provides us a complete rundown of how she works a market, from beginning to end.

February 2016 | HARDWARE RETAILING

59

Before T

he market may be weeks or even months away, but there’s still plenty to do to prepare ahead of time.

What Are Your Goals?

Retailers go to buying markets for different reasons. Before you start thinking about how to prepare, it’s important to determine what your goals are. Goals can vary by retailer, or the same retailer’s goals can vary by market, so it’s important to take some time to determine what you really want to accomplish at the show before you start making plans.

“The main goal for us is to buy inventory,” says Hilario Serrano, director of marketing and advertising at Randall Lumber and Hardware in Taos, New Mexico. “While we focus on inventory, we also look at new programs our distributor has to offer, new incentives and anything that will work well in our marketplace.”

Once you know what your goals are you can start thinking about who you’ll bring with you to the market and what your budget will be, among other things.

Who’s Going?

One of the first things you need to do is determine how many of your employees to bring.

If you have too few, you risk not getting everything done, but you also have to consider the expense of sending staff to the market.

Tim Post, owner of T&M Hardware with six locations throughout Pennsylvania, has gone to almost every Do it Best market for the past 25 years.

During spring markets, which are in the beginning of the store’s busy time, Post attends the markets with his wife, Mary, co-owner, and daughter Samantha, manager of marketing and human resources, along with Will Hogue, operations and purchasing manager. During fall markets, he brings a team of eight or nine, including each store manager and his son, Scott, the sales and rental manager.

Steve Spradlin, owner of Lake Isabella Hardware and Builders Mart True Value, both located

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HARDWARE RETAILING | February 2016

in Lake Isabella, California, takes a different approach. He and his wife are usually the only two from his business to attend the True Value Reunion. (If the market is within a day’s drive, he might take an employee or two.)

For Randall Lumber and Hardware, both Serrano and his hardware manager, Russell Driskell, attend Blish-Mize and Orgill markets, along with their wives.

Following a Budget The retailers we spoke with suggested coming to market with a budget already in place, or at least some guidelines on how much you want to spend.

Post sets guidelines, rather than a strict budget. “We are so focused on buying out of the warehouse that we generally never have a problem with budgeting,” he says. “We try to limit the impulse buying that we do at the market, but if it makes sense to buy, then we do. We will stay within budget if we adhere to our guidelines.”

Keep in mind that just because buying markets generally have good deals doesn’t mean every item you see is automatically a deal. A guideline Post sets is that if there is 15 percent or less in savings on an item, his team moves on. Highticket items are viewed differently, however, as a small percent can lead to big-dollar savings.

Besides promotional buying, Post also takes advantage of replenishment or pre-season buying if the opportunity presents itself.

“We tend to order salt, shovels and sleds at the spring market or other seasonal buys that

“There will be a lot of

optional things to do and see, but it’s important to prioritize what’s necessary and what’s optional.

”

—Steve Spradlin, Lake Isabella Hardware and Builders Mart True Value

are present,” Post says. “We also do commodity and bulk item buys as well. In the spring, we order pallet goods or commodity items because a few pennies on that can make us more competitive.”

Serrano does not have a strict budget either, but he has a good gauge of what his team is going to buy at the market ahead of time.

“The reason we don’t set a budget is because a lot of times last-minute orders are determined from the spiffs we get back from vendors and the travel allowances we receive,” he says. “We really utilize market incentives.”

New retailers may want to be a bit more structured in their buying. “If you’re a new store owner, it’s a good idea to have a budget of how much you’re going to spend,” Spradlin says, “because you could be tempted by way too many things and end up spending more than you should.”

Prep Time Market prep is an ongoing, year-round project.

However, as you get closer to market time, you’ll need to finalize your plans.

Post meets with his team 30 days before the market. During this time, the store managers or personnel who are attending summarize what they will focus on once they get there.

“I ask them to boil their lists down to 12 items,” Post says. “I feel that if during the two and a half days we are at the market, they focus on getting 12 things accomplished, it will serve them very well. It’s a nice manageable number.”

The 12 items on the lists vary with each market but could include things like Do it Best’s Education Day, which includes a full day of seminars; the Sneak Peek of the show floor on Friday night; scheduling meetings with Do it Best vendors or even gathering more information on new government regulations, says Post.

For Spradlin, the official preparation for the buying market starts when he receives premarket material from his co-op. He gets both the printed and electronic versions, and he uses both.

The process is time-consuming, he says, because it’s important to review all of the material so as not to miss anything. He’ll scan the market books, looking for discounts or new items he would like to investigate further once he’s there.

“Throughout the year, we make a list of what around the store needs refreshed,” Spradlin says. “It’s an ongoing process. We always go to market with certain items in mind from areas around the store that need upgrading. Of course we always find those unexpected items, but we always go with a specific list in mind.”

He also makes a plan for how he’ll work the market ahead of time so that he finishes

everything on his to-do list. Given the size of most markets, it’s impossible to visit every booth and talk to every vendor, so he makes a schedule with benchmarks of what he wants accomplished each day.

“Map out what you want to have accomplished by noon on the first day, then where you should be by the end of the first day,” he says. “There will be a lot of optional things to do and see, but it’s important to prioritize what’s necessary and what’s optional.”

According to a 2014 study from the North American Retail Hardware Association (NRHA), the majority of retailers, like Spradlin, use premarket materials from their distributors to determine which booths they’ll visit.

Serrano and his team begin market preparation about 60 days in advance. To prepare, his team holds off on large orders and does a store walkthrough in departments he knows he will sell out of in the next six months.

“If I know I need to make a large purchase, I hold off until I can get market pricing and dating or cash incentives at the booths,” he says.

In addition, Serrano uses the premarket book from his distributor that includes SKUs he has purchased at prior markets.

“It gives us projections on future sales in the coming months,” he says. “It’s a great tool that gives us educated information.”

Prior to the wholesale market, how do you determine which booths you will seek out and visit?

Review premarket materials from my distributor.

87.7%

Review premarket mailings from manufacturers.

55.6%

Work with my distributor sales representative.

23.5%

Other, including walking the entire floor and recommendations from buying team.

0%

20%

40%

60%

6.2% 80%

100%

Source: 2014 NRHA Study

February 2016 | HARDWARE RETAILING

61

During N

ow that you’ve made your plans for what you’re going to accomplish at the market, it’s time to put that plan into action.

Hitting the Showfloor Serrano hits the showfloor according to a predetermined plan. He uses the market layout map to highlight booths his team needs to visit.

“We visit those booths with an order in hand that we will issue,” he says. He then records all of these orders and booth numbers in his market planner.

It’s a good idea to keep a list of current inventory with you so that if you find a new product you’re interested in, you can refer to the list and see if it would be a good purchase.

Serrano uses his distributor’s app to get information about his account and the quantities he’s ordered over different months.

Of the following goals, which one do you consider to be the most important when attending wholesaler buying markets?

52.6%

Getting special deals on pricing

30.3%

0%

Networking with new or existing vendors

9.2%

Speaking with actual company representatives

6.6%

10%

20%

30%

Source: 2014 NRHA Study

62

Staying in Touch

Learning about new products and programs

Getting product-specific training and education from vendors

HARDWARE RETAILING | February 2016

1.3% 40%

50%

“We also bring a tablet or laptop,” he says.

“I remote in to my office computer so I can see quantities at the store and price levels over the past months.”

Since carrying around a laptop at markets can be cumbersome, Serrano uses a mini shopping cart, where he creates a mobile work station.

This work station includes his laptop, scissors, stapler, shelving, market literature and an accordion file book to organize market and purchase orders.

Post and his wife stay through the end of the buying market on Monday, whereas most of his team leaves on Sunday afternoon. On Monday, he takes advantage of a quieter market floor and returns to vendors for further discussions.

Spradlin works the market floor every day and hour it’s open. When it’s over, he and his wife spend a lot of time doing follow-up paperwork in the hotel room.

60%

If you bring a larger team to the market, make sure you stay in touch with everyone to ensure all work is being completed. While you don’t want to micromanage (and probably don’t have time to do so), it’s important to touch base occasionally with the rest of the group.

Every two to three hours, Post meets with his team to review their lists and see progress. After attending seminars, for example, Post gathers with his team and asks each member to share a takeaway they can implement to grow either professionally or personally.

Enjoying Some Down Time Once you finish up on the market floor, take advantage of your time away from work to relax.

Post and his team sometimes attend Do it Best’s evening activity, but otherwise they get dinner with staff or other retailers.

If Serrano attends a distributor market in a city where he has never been, he tries to come in a few days before the market begins to spend some time and explore.

After Y

ou’ve accomplished all your market tasks and it’s time to head back to your business. But your work isn’t finished yet—it’s time to wrap up things at home.

Bringing the Market Excitement Home As soon as T&M Hardware’s team leaves the buying market, they immediately begin making plans to implement new strategies.

As Post and his team make the six-hour drive home, they write a follow-up list of what they accomplished at the market and prioritize how they will implement different items once they return.

“We do 75 percent of that within the first 48 hours of returning,” he says. “We have to be right on top of it when we come back and get things in motion.”

Spradlin finds it’s easy to let the excitement of the market begin to fade as soon as he walks off the market floor, but to prevent this, “We start thinking about the next market about the time we get back from one,” he says.

Because it’s easy to get caught up in work as soon as you return to your store (and especially since you’ve been away a few days), try making a list of things to do when you get back, as Post and his team do. In fact, you can keep a running list going as you walk the market floor.

Putting everything on paper will keep those items front of mind and help you take care of that list as soon as you return. Try, if you can, to avoid immersing yourself into your work at the store and returning to “business as usual” right away. Instead, use your first day or two back as “market wrap-up” and focus on completing those post-market items.

Sharing What You Learned One of the most important tasks to take care of when you get back after the buying market is touching base with employees who didn’t attend.

Spradlin says there’s a lot of value in sharing the information and inspiration found at the market with the staff that wasn’t able to attend.

To be able to share the information with employees, Spradlin takes photos of new products at markets on his iPad.

Steps to Take After Going to the Market

1 2 3 4

File Paperwork Sort through and organize any notes and file them away.

Organize any electronic notes on your computer, too.

Set Up a Meeting with Management Meet with owners and managers to fill them in on news, your markets purchases and more.

Pass on Your Knowledge Share with employees what you learned from any educational seminars you attended.

Look Ahead As you organize, make a list of anything that comes up that you’ll need to follow up on at the next market.

To ensure Serrano’s staff is up-to-date when he returns from the market, he, along with Driskell, his hardware manager, and the store’s owners meet to discuss new initiatives they want to implement. Then Serrano meets with department heads to share what new items are coming in and which ones are going away. He later meets with the receiving department to inform them of orders to expect in the coming weeks or months.

Post has a meeting with store managers as soon as he returns, and the managers then have meetings with their stores to update the staff on areas of opportunities generated from the market.

After updating the staff and implementing immediate changes, the planning continues.

“We keep a list of items at each market that we do not need to address right now but will readdress at the next market,” he says. “If customers ask about different products, we write those down. We continuously have a list we can cross items off of and keep moving forward.”

Hardware Retailing staffers Liz Lichtenberger, Jesse Carleton and Sara Logel contributed to this article.

February 2016 | HARDWARE RETAILING

63

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A Winning Recipe How to Spice up Your Housewares Department

A visiting chef at The Kitchen at Alamo Hardware shows customers how to cook up a tasty dish.

M

ost Saturday mornings, Dianne McArthur, manager of The Kitchen at Alamo Hardware and Garden Center in Alamo, California, slides a pan of bacon into the oven. “Bacon cooking in the oven is all you really need to make the store smell good,” she says.

The Kitchen is Alamo Hardware’s high-end housewares store with a fully functional demonstration kitchen, where at least twice a month she hosts cooking demonstrations from local and celebrity chefs.

McArthur has figured out that housewares is one category where she can get all of her customers’ senses engaged.

While you may not be able to get a celebrity chef in your store for a cooking demonstration, even small changes can go a long way to driving more sales through this department. To help, Hardware Retailing editors spoke with three retailers who have kicked up the flavor in their houseware’s departments and increased sales:

• Alamo Hardware and Garden Center, Alamo, California.

Dave Re, purchasing manager, and McArthur built a unique experience for shoppers who want upscale kitchen items and to learn about cooking.

• Tediche Home Hardware Building Centre, Cap-Pele, New Brunswick, Canada. Conrad LeBlanc and his team brought housewares front and center on the salesfloor and created a store-within-a-store format. Sales have steadily increased.

• Island Home Center & Lumber in Vashon, Washington.

Melissa Bailey, housewares manager, has the challenge of being a one-stop shop for her customers’ housewares needs so they don’t have to leave the island.

Take a look at what these retailers are doing in each of their operations to gain inspiration. We’ve compiled a collection of photos from other retailers, both inside and outside of the industry, online at TheRedT.com/1J10DDf. Finally, to get the best look at the range of products today’s top manufacturers have to offer, make plans to attend one of the shows dedicated to the category. A good place to start is the International Home + Housewares Show, which will be held March 5-8 in Chicago.

February 2016 | HARDWARE RETAILING

67

Alamo Hardware and Garden Center

Become the Event Center Events at the Kitchen at Alamo Hardware are so popular, people pay to attend. McArthur hosts one or two events a month, including cooking demonstrations and book signings by celebrity chefs. She also realizes that it’s not just women buying housewares. “Men buy these items too,” she says. “This year, we’re planning on having a men’s night as well as a ladies’ night.

We’ll have cooking classes for the men and barbeque classes for the women.” She has a chalkboard in the store to list all upcoming events and sends announcements via Facebook, Twitter, email and a direct mailing list of 50,000 homes.

Give Staff Ownership Housewares vendors often bring in samples to Alamo Hardware for employees to take home and try.

Just like any department in the store, it’s important employees understand how to use the kitchen products they’re selling. And an occasional free pot or pan is a nice perk for employees. To further encourage employees to take ownership in housewares, McArthur gives them the freedom to set up creative displays. “I encourage them to take pictures of unique ideas they find and bring them as suggestions of what we can do here,” she says. “I want them to know it’s not just me making all of the decisions.”

Stay on Top of Trends To help her stay on top of housewares trends, McArthur subscribes to specialty cooking magazines and is part of a professional organization focused on the category. She also attends shows every year, including the National Hardware Show® and the International Home + Housewares Show, along with her distributor’s market to stay on top of what’s new in the industry. “As an independent retailer, I can’t keep up with everything, so I rely on vendors to tell me what’s new,” says McArthur. She has a few vendors she keeps in close contact with throughout the year who can also keep her updated on industry trends.

68

HARDWARE RETAILING | February 2016

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Tediche Home Hardware Building Centre

Create Moveable Displays “More than any other department in the store, presentation in housewares is everything,” says LeBlanc. There are many other options for consumers to buy housewares and home decor goods, so it’s important LeBlanc’s team create customized displays that will grab their attention. Some of the display units have casters, so it’s easy to move them to different areas of the department and keep it looking fresh. Make changes to your housewares displays at least once a month to keep your customers looking and aware of what’s new in the category.

70

HARDWARE RETAILING | February 2016

Don’t Forget The Cashiers Housewares sales at Tediche Home Hardware Building Centre jumped when LeBlanc moved the department to the front of the store. But that also means the cashier is often the first employee the customer will see, and likely the first person they will ask questions of in the department. LeBlanc makes sure all of his cashiers have product knowledge training on housewares items so they can answer basic questions. Training on basic housewares product knowledge will boost your customer service levels and will create the perception among consumers that your store is a destination for the category.

Focus On Variety “Shoppers are looking for variety in housewares as much, if not more, than any other department in the store,” says LeBlanc.

Variety in both brand and style are important when considering how to structure your assortment. You may not have space for multiple versions of every product, but displaying a few key items in a variety of colors and styles shows you offer variety with other items as well, even if you place special orders. Carry that same principle into circular advertising, too, which LeBlanc says is the best way to promote housewares. Circulars highlight product variety and show it is a housewares destination.

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Go Beyond White Pegboard In the housewares department at Island Home Center & Lumber, customers will see many displays, but pegboard will not be featured on any of them. “We want to sell items to our customers, not pegboard, so we make sure our displays and endcaps are beautifully done,” Bailey says. She says changing endcaps and moving things around can be time-consuming, but it’s necessary for success. Bailey relies on her team of employees to help supply creative merchandising ideas, whether it’s something they’ve seen at another store or something they want to create.

Create a Word of Mouth Buzz Island Home Center & Lumber has increased its number of female shoppers since starting its annual Ladies’ Night 11 years ago. Thanks to a growing housewares department, the last event brought in 1,500 guests who browsed the store and enjoyed wine and food. “When this event began, husbands would give their wives lists of items they wanted them to buy at Ladies’ Night,” Bailey says. “Now, women shop for the items they want, which are often fun housewares items.” An annual event helps your customers keep your store in mind. It can also be a great way to build clientele and discover what customers want you to stock.

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Providing a Voice for Independent Retailers

“At NRHA, one of our primary

responsibilities is to advocate for independent home improvement retailers.

”

—Dan Tratensek, NRHA

M

ore than 80 percent of independent home improvement retailers say they anticipate moderate or significant growth for their businesses in the next three years, according to data from the North American Retail Hardware Association (NRHA).

This was just one of the findings shared with attendees at NRHA’s first-ever State of Independents Conference, held in December in Chicago.

The State of Independents Conference, sponsored by the National Hardware Show®, brought together retailers, distributors, manufacturers and other industry experts in one place for the common purpose of learning about and discussing the independent home improvement retailing channel.

“At NRHA, one of our primary responsibilities is to advocate for independent home improvement retailers,” says Dan Tratensek, NRHA’s vice

president of publishing, in his opening remarks.

“This conference provides an ideal venue where we can cast the spotlight on these retailers’ current position in the industry, their opportunities for growth and the challenges they face.”

During the daylong event, presenters shared a wide range of new and proprietary research with attendees on a variety of topics impacting independent home improvement retailers. In addition to the research presentations, several panel discussions were held throughout the day featuring high-performance retailers. These panels provided a platform for dialogue among the diverse channel partners in attendance.

Megan Menzer, owner of Netwon’s True Value in Cherryvale, Kansas, says she really valued having the opportunity for open dialogue between the different parties in attendance.

“Communication is key in any business and being able to communicate the needs and wants between the retailer, wholesalers February 2016 | HARDWARE RETAILING

77

“Communication is key in

any business and being able to communicate the needs and wants between the retailer, wholesalers and manufacturers will only make each one better.

”

—Megan Menzer, Newton’s True Value and manufacturers will only make each one better,” she says. “If one party thinks they are doing the right thing but it is not benefiting anyone, it is a waste of money and resources. By having an open dialogue between each, it only improves efficiency.”

Topics addressed during the event varied from overviews of current home improvement market conditions in the U.S. and Canada, to insights into consumer buying habits as they relate to independent home improvement retailers.

“Independents remain well-positioned in the channel and have great opportunities for growth,” says Jim Robisch, senior partner at The Farnsworth Group and one of the conference presenters. “The research has shown that retailers should pick one or two things that they are really good at to differentiate themselves from other competitors and aggressively communicate that to the market.”

When focusing on the size and growth potential for the home improvement industry at large, NRHA data showed that the U.S. home improvement market grew nearly 5 percent between 2014 and

78

HARDWARE RETAILING | February 2016

2015, and Beverly Allen from NRHA Canada and Hardlines shared that Canada is also on a slow but steady growth pattern.

Leaders from the National Hardware Show, which sponsored the event, felt the conference was well aligned with the show’s goals of bringing the industry together. “We’re honored and proud to sponsor this event,” says Rich Russo, vice president of the National Hardware Show. “We recognize the importance the independent retailer brings to the industry.”

Additional sessions during the conference focused on retailers’ perspectives on obstacles and opportunities for growth. For example, one study indicated that independent retailers identify finding the right employees as one of the biggest obstacles they face for both short- and long-term growth. Retail panelists’ feedback supported these findings. “It is not only a question of finding the right employees, but how to train and incorporate them into our company and culture,” says Jeremy Melnick, co-owner of Gordon’s Ace Hardware in Chicago. “We are constantly trying to improve our interview process and our training program and using third parties for recruitment and processing.”

Seeing the data and hearing this kind of feedback about the challenges independent

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What would you say are your biggest challenges to growth over the long term (5-7 years)?

Percentage of retail respondents

CHALLENGES

Finding the right employees

49.4%

Online retail competition

47.0%

Big-box competition

34.2%

Regulations and taxes

27.7%

Access to additional space

24.1%

What would you say are your biggest opportunities for growth over the long term (5-7 years)?

Percentage of retail respondents

OPPORTUNITIES

Improving my marketing/promotions

32.9%

Improving operational efficiencies

32.6%

Developing a stronger team

32.3%

Adding new and unique niches

31.7%

Adding new categories outside of core categories

24.1%

Responses do not equal 100 percent because respondents could select multiple answers.

Source: NRHA/Hardware Retailing

“It is not only

a question of finding the right employees, but how to train and incorporate the employees into our company and culture.

”

—Jeremy Melnick, Gordon’s Ace Hardware

retailers face was a big benefit for attendees such as Roger Phelps from STIHL Inc., who also indicated that the networking time during the event was highly productive.

“The one-on-one time I’ve had with retailers throughout the day, such as Tim Buchheit (of Buchheit Enterprises in Missouri), has been invaluable,” says Roger Phelps, promotional communications director at STIHL. This kind of one-on-one networking helps build stronger relationships throughout the channel and lets manufacturers and distributors get a clearer understanding of what independent retailers need to succeed.

“Networking with all the different affiliates was one of my favorite parts of the conference,” Menzer says.

“I got a couple of great promotion ideas, and a couple of vendors reached out directly to me about an issue they didn’t even know they had and wanted feedback on how to change their programs.”

The first State of Independents Conference was the perfect way to end 2015 on a strong note and get attendees excited for a prosperous 2016. Tratensek closed the day with this observation: “Independent home improvement retailers are doing more than just surviving; they are thriving.”

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81

A Q&A With The National Hardware Show®

R

ich Russo, vice president of The National Hardware Show®, spoke with Hardware Retailing magazine to discuss why sponsorship of events like the State of Independents Conference are so important to the industry.

Why did the National Hardware Show (NHS) decide to sponsor NRHA’s 2015 State of Independents Conference (SOIC)?

The National Hardware Show is the largest gathering of independent hardware retailers in the United States. We understand and recognize the importance that the independent hardware retailers play in the industry. We support NRHA’s mission to help these retailers become more profitable through their education and training programs, financial management resources and human resources tools. It was important for us to show the industry that we support every distribution channel and that the National Hardware Show is truly designed to help support independent retailers, too.

The conference brought together representatives from retail, distribution and manufacturing, a lot like NHS does.

Why is this so important to the success of the industry?

We are all constantly learning and evolving within our own businesses. Any time you can get different channels of the supply chain together, we all benefit. The learning that took place, such as the unique education, networking and retailers talking about what makes their stores profitable, the risks they had to take to get there and the failures they endured, were great educational opportunities for all of us.

82

HARDWARE RETAILING | February 2016

In addition to sponsoring events like SOIC, what are some of the other ways NHS is dedicated to helping independent retailers within this industry?

This year, we are creating many programs specifically targeting the experience for the independent retailer. We are educating our exhibitors on how to work directly with independents. Our sales team, along with our customer success group, will be engaging our exhibitors on ways to promote themselves and products directly to the independent retailer.

We will also be highlighting all those exhibitors who are ready, willing and able to sell to independents in a special on-site mini-guide handed out to these retailers.

In addition to that, we will be asking our exhibitors to come up with their best show special pricing and programs to offer, ensuring that any independent retailers’ time spent out of their stores and at the show will be well worth their while.

Do you see that exhibitors at NHS are becoming more focused on the independent segment of the market?

Yes. Manufacturers in general are continuing to target the independent retailers as opportunities to grow their businesses. They are becoming more savvy when they participate at the show to specifically market to this group, and we are supplying them with tools to do so.

Gone are the days of all your eggs being held in one basket. The best way to ensure success is to diversify. To learn more about NHS, visit www.nationalhardwareshow.com or call 203-840-5622.

Retailers Cross the Pond for Perspective International Hardware Fair to Cover Industry Trends

By Renee Changnon, rchangnon@nrha.org

W

hether you’re interested in learning from home improvement retailers from around the world, you want to discover global trends in the industry or you would like to work and play while visiting another country, the International Hardware Fair gives you access to it all.

The International Hardware Fair will take place March 6-8 in Cologne, Germany, and is organized by Koelnmesse, the group that is also responsible for lawn and garden show spoga+gafa.

About 2,700 exhibitors from over 50 countries will be exhibiting at the show, where they’ll display products, new innovations and trends in the following categories: Tools, Industrial Supply, Fasteners and Fixings, Fittings and Home Improvement Products.

Nearly 80 American companies and seven Canadian companies will make the trip to Cologne for the show.

North American retailers attending the biennial event, which marks its 40th show this year, will gain a distinct advantage against the competition, according to Christopher Werner, vice president of the trade fair management of Koelnmesse GmbH. “The International Hardware Fair in Cologne offers an excellent opportunity to recognize the differences [from the North American market], gain a competitive edge through this knowledge and benefit,” Werner says. “New products from the domestic market offer opportunities to distinguish oneself from one’s competitors.”

On the following pages, you’ll learn more about the International Hardware Fair.

You’ll find registration information, trends to look out for at the show and a few tourist recommendations for your time in Cologne.

February 2016 | HARDWARE RETAILING

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Innovative, high-quality products are important, but manufacturers are now providing even more sales support, which is key.

Register and Plan Ahead for the Fair In order to make sure you can experience and enjoy all of the great things the International Hardware Fair has to offer, you’ll want to head to the ticket shop on www.eisenwarenmesse.com to purchase your tickets.

You’ll either have to register or create an account. You can select a Day Ticket, a 2-Day Ticket or a Season Ticket, as well as the Entrance Ticket Welcome Party, which will be held at 6 p.m. on March 6.

Tickets are discounted if they are purchased on or before March 5. From then on, box office prices are valid.

If you’re interested in getting a head start on networking prior to the show, the Matchmaking365 app is the tool for you. Trade visitors can gain valuable business contacts and other information. You can schedule your meetings for the fair, all from your computer or through the mobile app. The tool is time-saving, efficient and free of charge.

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HARDWARE RETAILING | February 2016

Trends to Look for at the Show Once you’ve purchased your trade show tickets and arranged your travel, start brushing up on the things you want to accomplish while attending the show.

According to Koelnmesse, there are many trends attendees should look for.

• Product Presentation is Key—It’s more than innovative, high-quality products. Manufacturers are now looking for more visually appealing ways to sell their products. One example of this is informative product packaging that’s designed to attract consumers. At the International Hardware Fair, look for smaller merchandising units, which can be adjusted to suit the amount of floor space a retailer has available for displays.

Continued on page 87.

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HARDWARE RETAILING | February 2016

• The World is Getting ‘Smarter’—Smart products and technology continue to be important for consumers.

Many suppliers at the International Hardware Fair will present solutions based on radio technology. Smart home products featured at the show will include professional alarm and security technology, as well as additional products in categories not typically associated with technology. Keep an eye out at the show for these smart products that are being introduced in new categories.

Smart technology not only changes the market, but influences the industry as a whole.

• Improved Service Life and Efficiency—Speed, efficiency and a long life are important to consumers and professionals alike, and many manufacturers are working to improve products to meet those needs. One example is in lighting, where long-lasting, efficient LED lights are becoming more popular. At the show, find these efficient, long-lasting products in a variety of categories.

• Solutions Provide Added Comfort—At the International Hardware Fair, look for products that provide added comfort for DIYers and pros alike. For example, profiled steps are becoming more common in the professional ladder sector. The ladders are safe and more comfortable for those working at heights. New models have even

integrated work trays, putting tools and utensils within easy reach. The ergonomic design of the tools makes them more comfortable to use as well. For example, look for screwdrivers with handles made out of renewable raw materials.

Work and Play in Cologne While much of your time will be spent visiting exhibitor booths or networking during the three-day span of the International Hardware Fair, take time to plan some sightseeing fun in a few of Cologne’s most popular spots.

Due to Koelnmesse’s central location, visitors can reach the venue from cities across Europe by car, train, plane and local public transport.

Once you’ve settled in at your hotel, consider checking out a few tourist attractions.

Head to the Cologne Cathedral, a top spot on the list of sightseeing stops from TripAdvisor.

If you’re with your family, you may want to check out the Koelner Zoo. This zoo has more animals than any other zoological park in Germany and boasts an aquarium and the world’s largest elephant park in northern Europe.

If you want to soak up the views of the Cologne skyline, head to Koeln Triangle.

This skyscraper offers views of the city in a panoramic observatory. Entrance to the building is free.

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February 2016 | HARDWARE RETAILING

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Newsmakers

Military Experience Preps Retailers for Business and Life

Upcoming Events February 13-14 Florida Hardware 2016 Spring Dealer Market Orlando, Florida

19-21 True Value Spring & Rental Reunion Houston, Texas

19-21 Monroe Hardware Spring 2016 Show Myrtle Beach, South Carolina

25-27 Dan Berry of Paradise Home Center applies many of the skills he gained from serving in the U.S. Army to work at his home improvement business.

H

aving a hurricane hit the day before he opened his store wasn’t part of Jeremy Magnuson’s plans, but the situation was like many he faced in the military—an unexpected challenge to overcome.

A year after leaving the U.S. Air Force, he had built his Magnuson Ace Hardware building from the ground up in Friendswood, Texas. Magnuson was an entrepreneur, and starting his own business seemed like a natural route to take in civilian life.

His service in the Air Force prepared him to tackle difficult situations, such as the hurricane aftermath, and his entrance into the retail business during the worst recession in years. The military also equipped him to be a leader, solve problems and work long hours, he says.

“The military teaches you to push through some really tough scenarios, and that level of determination most certainly applies to business,” Magnuson says. “Part of the roof of my store was torn off before we even opened, and I came in opening day to find 3 inches of standing water throughout my store. You power through.”

Dan Berry, president of Paradise Home Center in Union, South Carolina, has also found that skills learned while serving in the military transfer well to leading a home improvement business. His Army career had a rocky start at the U.S. Military Academy.

“The military helps you grow up quickly,” Berry says. “I was 18 years old and in the first three months, I was failing two classes and had yet to pass my physical test.”

A hard conversation with a West Point instructor motivated him to turn things around quickly. He improved his grades and got in shape, and ended up being one of 11 cadets to make it through Army Ranger School. “Just like the realization I faced at West Point, in retail, if your business model isn’t working, you have to look at it and find ways to fix it,” he says.

To learn more about veterans who have transferred their skills to retail in the home improvement industry, visit TheRedT.com/1Zya9oU.

Website links can get long and wordy, so Hardware Retailing is making it easier to find our online content. Simply type in “TheRedT.com/” followed by the unique code for each link. Why “The Red T?” Check out our logo!

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HARDWARE RETAILING | February 2016

Orgill Inc. Spring Dealer Market Orlando, Florida

March 3-5 Ace Hardware Spring Convention & Exhibits Las Vegas

5-8 International Home + Housewares Show Chicago

10-12 Reliable Distributors 2016 Management & Marketing Conference Orlando, Florida

16-19 Hearth, Patio & Barbecue Expo New Orleans

18-19 Blish-Mize Spring Buying Market Overland Park, Kansas

Find more details about these events and others online at TheRedT.com/1HWygFK. To have your event added, contact Kate Klein at kklein@nrha.org.

One Event, Thousands of Retailers.

The 2016 NRHA All-Industry Conference is held at the National Hardware Show®, the industry’s largest gathering of independent retailers from all over the world. Visit the NRHA Village to connect with these retailers and learn more about their businesses.

Visit www.nrhaconference.com or call 800-772-4424 for more details!

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Newsmakers

Volunteers Help Hardware Store Recover From Winter Flooding

W

inter storms in December produced flooding that waterlogged homes and businesses, washed out roads and overflowed rivers across the U.S. Home improvement retailers haven’t been exempt from the damage, and have been rebuilding or cleaning up businesses in states including North Carolina, Missouri and Washington.

Wilson Carter Supply in Denton, North Carolina, was a business that flooded in December, but its staff saw the generosity of the community as they cleaned up afterward.

Requests for help on the store’s Facebook page brought an outpouring of support—people showed up with brooms, squeegees and generators on the first day to get the water out, and then followed up with large fans and volunteer hours to sort wet merchandise and catalog ruined and salvageable inventory.

The help came the same day the heavy rain began falling “really, really hard” on Dec. 30, store manager Anne Carter Bean says. Her father, Wilson Carter, started the business in 1965.

Within an hour and 15 minutes that morning, the entire store floor was under 4 inches of water that was steadily rising.

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Heavy rainfall caused flooding at Wilson Carter Supply, a home improvement business in North Carolina.

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HARDWARE RETAILING | February 2016

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Bean was in the store and watched the water sweep across the yard of the business. Next, the water flowed over a concrete barrier and into the business’s warehouse behind the retail outlet. After that, the water quickly spread into the store office and onto the salesfloor.

Bean tried to manage the incoming water with a mop, but it kept coming. “I thought, ‘OK, this is crazy. A mop and a bucket is not going to help,’” she says.

Bean, her father, son and two other employees scrambled to try to stop the rising water. They sandbagged the front entrance, moved as much merchandise off the lower shelves as they could and tried to sweep water out of the store with push brooms.

But water was coming in three of the four doors, and the fire department came by to cut off power to the building. About 8 inches of water was lapping against the front door, which was the only entrance with a seal strong enough to keep water out.

When the rain stopped that afternoon and flooding began to subside, Bean returned to the business. She found 16 inches of water covering filing cabinet drawers and lower shelves.

Silt coated the walls and floor. Merchandise, including bags of concrete and plywood boards, that had to be left on lower shelves or on the warehouse floor, were ruined.

Community members helped empty the water. By 7 p.m., “we went from 16 inches of water to the floors just being wet,” Bean says.

The store lost thousands of dollars in merchandise—a loss not covered by insurance because the business never needed flood insurance in the past, she says.

Yet the damage, especially if Bean and her staff had been forced to leave water standing longer, was less than it could have been. “It was really volunteers that helped save the day for us,” Bean says.

Floodwater rose to 16 inches in Wilson Carter Supply, damaging thousands of dollars in merchandise.

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Newsmakers

Handy Hardware Retires Name at Spring Market Regional distributor Handy Hardware retired its name this year in favor of World and Main, the name of its parent company.

Handy Hardware formally adopted the World and Main name at its spring buying market, which was held Jan. 21-23.

TheRedT.com/1PrnYLa

They Would If They Could: Millennials on Homebuying The majority of millennials are renters, not homeowners—but a new survey shows they would buy homes if they could. According to Housing Opportunities and Market Experience, a quarterly consumer survey released by the National Association of Realtors, 94 percent of renters age 34 and younger want to own a home.

TheRedT.com/1SibRWZ

United Market Offers Strong Start to New Year Retailers who attended the 2016 United Hardware Buying Market approached the New Year with optimism as they searched for new products and ways to refresh core categories, as well as discovered marketing solutions for their stores. The market was Jan. 8-10 at the Minneapolis Convention Center and opened with strong attendance.

TheRedT.com/1RlyNnS

Lights, Camera, Home Depot In addition to serving DIYers and professionals, The Home Depot has made its way into show business with a store devoted to the film industry.

The Home Depot Studio Store is located inside the film and entertainment studio complex

Pinewood Atlanta Studios in Fayetteville, Georgia. The Studio Store provides products such as specialty paints, hardware, lumber and other products necessary to build sets and handle film equipment, for example.

TheRedT.com/22Zfogp

Lowe’s Innovator Recognized as One of ‘True Originals’ The National Retail Federation (NRF) recently called out a Lowe’s tech leader as an innovator among “true originals who rock the boat with ideas so crazy, they just might work.”

Kyle Nel, executive director of Lowe’s Innovation Labs, was one of five leaders recognized as “people who make you rethink what you thought you knew about retail, opening you up to new possibilities for your customers, your business and your world.”

TheRedT.com/1mVgxon

Make Mondays Matter

INDUSTRY NEWS

OPERATIONAL TIPS

NEW PRODUCTS

Get your week started off right with the Hardware Retailing newsletter, which is packed with the latest industry news, retailer stories and association updates. Sign up now to get the newsletter delivered to your inbox every Monday.

To subscribe to the newsletter, visit hardwareretailing.com/subscribe.

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HARDWARE RETAILING | February 2016

Smart Home Project Conserves California Water A smart home built for research at a university has already conserved thousands of gallons of water.

The Honda Smart Home, which is located on the University of California’s Davis campus, features energy-efficient appliances, lighting and heating and cooling systems.

TheRedT.com/200cOoc

CANADA

Business Development Team

Canada’s Most Powerful Women List Includes Industry Names

Castle Building Centres Group is enhancing its business development management structure in the New Year. The changes come from movement within the team and from dealer growth within the buying group itself.

The Women’s Executive Network announced its roster of Canada’s 100 Most Powerful Women. The list features names from the hardware and home improvement industry, including Christine Hand from Home Hardware and Martha Billes from Canadian Tire.

Don’t Let Bad Customer Service Slide

TIM-BR MART Strategically Expands Commercial Division

While customer service has always been a top priority, have you considered if your store really delivers the best?

According to the NRF, bad customer service costs the average company $54,511 annually per employee.

TheRedT.com/1KdcglC

TIM-BR MART Group is looking to strategically expand its commercial division. But, Mark Finucane, vice president of commercial for the company, says they’re “not in a desperate position. We’re looking for quality over quantity.”

Lowe’s Canada Opens Giant Regional Distribution Center Lowe’s Canada held an official opening of its new regional distribution center in Milton, Ontario, last week.

The facility, which is west of Toronto, was erected for Target Canada, but was vacated when that retailer exited Canada in 2015.

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

AD INDEX Abatron Inc. .............................................................45 www.abatron.com; 800-445-1754

Home Products ..........................................................9 www.homzproducts.com; 800-457-9881

Old Masters .............................................................80 www.myoldmasters.com; 800-737-3436

Ace Hardware Company ..........................................11 www.myace.com; 630-990-6900

Howard Products Inc. ..............................................44 www.howardproducts.com; 800-266-9545

Orgill Inc. .......................................................... 96-IBC www.orgill.com; 800-347-2860

Ajax Wire Specialty Co.............................................92 www.ajaxwire.com; 855-966-2529

HSI ...........................................................................31 www.hardwaresuppliers.com; 800-334-5625

Pacer Pumps ............................................................90 www.pacerpumps.com; 717-925-8240

Allway Tools.......................................................43, 69 www.allwaytools.com; 800-422-5592

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

Paladin Data Corporation......................................7, 85 www.paladinpointofsale.com; 800-725-2346

Amteco ....................................................................72 www.usetwp.com; 800-969-4811

Iron and Oak ...............................................................21 www.ironandoak.com; 866-281-4509

Pennsylvania Lumbermens Mutual Insurance Co. ...71 www.PLMILM.com; 800-752-1895

Brave Products ........................................................34 www.braveproducts.com; 866-281-4421

Jrco Inc. ......................................................................73 www.jrcoinc.com; 866-537-6216

PRO Hardware ......................................................46-47 www.prohardware.com; 303-792-3000

Centurion .................................................................70 www.centurion-inc.com; 800-323-2193

K-CO Products LLC ...............................................64-65 www.kco-innovations.com; 949-276-5252

RNO Exhibitions ........................................................BC www.osaexpo.com

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

K-100 Fuel Treatment .................................................90 www.K-100.com; 800-530-6935

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

Char-Broil .................................................................32 www.charbroil.com; 866-239-6777

Lavelle ...................................................................74-75 www.korky.com; 800-528-3553

Scotts Liquid Gold....................................................33 www.scottsliquidgold.com; 800-447-1919

Coast Products Inc...................................................87 www.coastportland.com; 800-426-5858

LFS Glove ...................................................................39 www.lfsglove.com; 800-426-8860

ShurTech Brands LLC ..............................................29 www.frogtape.com; 800-321-1733

Convenience Products .............................................40 www.touch-n-foam.com; 800-325-6180

Maverick .....................................................................28 www.maverickhousewares.com; 732-417-9666

Simpson Strong-Tie Company Inc. ...........................13 www.strongtie.com; 800-999-5099

Do it Best Corp. ......................................................2-3 www.independentsdoitbest.com; 888-364-8237

Midwest Fastener ...............................................24-25 www.fastenerconnection.com; 800-444-7313

True Value Company ................................................17 www.truevaluecompany.com; 888-291-7229

Dosko ............................................................................91 www.dosko.com; 866-418-0474

Midwest Products Co. .................................................... 81 www.midwestproducts.com; 800-348-3497

UGL..........................................................................42 www.ugl.com; 800-845-5227

Duckback ....................................................................20 www.superdeck.com; 800-825-5382

Motorola...................................................................... 14-15 www.acsradios.com; 800-248-5391

USP Structural Connectors/MiTek..............................86 www.uspconnectors.com; 800-328-5934

ECI Software Solutions ........................................23, 66 www.ecisolutions.com; 866-374-3221

National Hardware ......................................................37 www.natman.com; 800-346-9445

Wallace Hardware Co. ................................................35 www.wallacehardware.com; 800-776-0976

Epicor Software Corp. ..........................................41, 76 www.epicor.com; 888-463-4700

National Hardware Show............................................57 www.nationalhardwareshow.com

Whink Products Company ..........................................45 www.whink.com; 800-247-5102

Ettore .......................................................................19 www.ettore.com; 510-748-4130

NRHA All-Industry Conference ....................................... 89 www.nrha.org; 800-772-4424

Wooster Brush Company .......................................5, 79 www.woosterbrush.com; 800-392-7246

Hardware Retailing eNewsletter .............................92 www.hardwareretailing.com/subscribe

NRHA Young Retailer of the Year ............................95 www.nrha.org/yroty; 317-275-9400

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

February 2016 | HARDWARE RETAILING

93

Last Word Concierge

Your Market Plan

W

hen you travel to your distributor’s buying market, of course you want to see new products and visit your favorite vendors. But don’t limit your time to just restocking your current inventory. Take advantage of all your market has to offer and before you hit the road, make a plan for how you’ll work the market so you don’t leave anything out. For information on how other retailers get the most out of markets, turn to Page 59.

Make the most out of your downtime at markets.

Most offer a concierge service to help you identify local hot spots.

Store Services Audit your current store services. Could a new service provider save you money?

Look for other options as you work the market.

New Vendors Since vendors may offer market specials, this is a great time to try out a new product line with just a small commitment.

Seminars Never stop learning.

Seminars keep you updated on industry news, or offer fresh perspectives on retailing best practices.

Networking Swapping stories and ideas with other retailers is one of the best ways to find something new to take back to your store.

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HARDWARE RETAILING | February 2016

CALL FOR 2016 NOMINATIONS

Young Retailer Year of the

20th Annual Awards Program Learn more about the program and scholarship opportunities from the National Hardware Show® and Bernzomatic for the NRHA Retail Management Certification Program at www.nrha.org/yroty.

Entry deadline is Feb. 26, 2016.

Presented by:

Sponsored by:

®

Te Industry Advantage.

Better Pricing, Better Margins “The initial reason we were drawn to Orgill was its competitive pricing.

We felt like Orgill’s model gave us the best chance to increase margins.”

Jonathan Kennedy, CEO and general manager, T.H. Rogers Lumber Company, 34 stores in four states

T.H. Rogers Lumber Company Thomas Houston Rogers founded T.H. Rogers Lumber Co. 112 years ago with three locations in Oklahoma. Since then, the company has grown to 34 stores in Oklahoma, Missouri, Kansas and Arkansas. some stores have diversified to include not only lumber and building materials, but also pro hardware, plumbing, electrical, lawn and garden and automotive.

Jonathan Kennedy, the great-grandson of the company’s founder heads the employee-owned company.

ORGILL HAS IMPROVED OUR MARGINS WHILE DELIVERING DIVERSE PRODUCT AND OUTSTANDING SERVICE Competitive Pricing

More Products

“Not only does Orgill offer us competitive pricing, it also

“We are primarily a lumber and building materials

helps us stay competitive in our markets. We particularly

company, but several of our stores are home centers

like the market specific pricing program that involves

that offer a more diverse and comprehensive selection of

in-depth research of pricing models in our unique markets.

merchandise. We like Orgill because it carries such a broad

With Orgill backing us, our store managers have more time

array of products. It has helped us expand the appeal of

to concentrate on other aspects of the business.”

our home centers to a wider variety of customers.”

Outstanding Service

Creative Merchandising

“Our Orgill reps have been great to work with. One of the

“The Orgill team is efficient at replacing old product and

first things we noticed after our change to Orgill was that

excellent at merchandising new products. We now are

we saw our reps on a regular basis. Orgill’s excellent service

able to offer more products to attract more customers with

allows us to provide better service to our customers.”

merchandising that’s both attractive and effective.”

“Orgill’s extensive retail programs help support our success.”

—Jonathan Kennedy

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