Hardware Retailing February 2017

Serving Hardware, Home Center & Building Material Retailers

A Brewer’s Dream

Homebrew Hobby Unites Beer Enthusiasts 60 Become a New Product Pro 48

VOLUME 212 • ISSUE 2 • FEBRUARY 2017 • HARDWARERETAILING.COM

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Maximize Your Potential in Lawn & Garden!

Orgill’s Retail Right Lawn & Garden Program gives you the products, pricing and support you need to be more profitable in this growing category.

Create a dominant presentation, offer your customers a complete assortment of options and maximize your profits!

A Growing Opportunity

This ensures that retailers have access to assortments that

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Become a New Product Pro 48

For more information about how Orgill can help you grow your business, contact us today!

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Learn more about the awards program and NRHA Retail Management Certification Program scholarship opportunities provided by the National Hardware Show® and Bernzomatic at www.nrha.org/yroty.

Entry deadline is Feb. 24, 2017.

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VOLUME 212 • ISSUE 2 • FEBRUARY 2017 • HARDWARERETAILING.C

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Homebrew Hobby Unites Beer Enthusiasts 60 Become a New Product Pro 48

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Homebrew Hobby Unites Beer Enthusiasts 60 Become a New Product Pro 48

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NEXT MONTH

Make Room for Improvement

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n the March issue of Hardware Retailing, find out how retailers are making strides in loss prevention.

Take a tour of one store and learn best practices from an expert to help mitigate loss in your business. Find out how you can implement some of these ideas in your store.

In addition, we will profile retailers who excel at selling the paint and sundries category.

Find out why retailers are planning to attend this year’s National Hardware Show® and get the latest scoop on the show’s Reimagine Retail contest, which gives the winner $100,000 to fund a business improvement project at their store.

Finally, our marketing series will debut with an overview of how to incorporate Snapchat into your marketing plan.

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CONTACT CHANNELLOCK ® FOR MORE INFORMATION | SALESSUPPORT@CHANNELLOCK.COM | (800) 724-3018 ext. 341 February 2017 | HARDWARE RETAILING

1

Headquarters Staff PUBLISHING PUBLISHER, VICE PRESIDENT OF PUBLISHING Dan Tratensek

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton FEATURES EDITOR Liz Lichtenberger

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

ASSISTANT EDITOR Renee Changnon ASSISTANT EDITOR Kate Klein ASSISTANT EDITOR Melanie Moul ASSISTANT EDITOR Chad Husted SENIOR DESIGNER Lynnea Chom GRAPHIC DESIGNER Graeme Haase

CONTROLLER David Gowan

WEB DEVELOPER Kevin Trehan

MEMBER SERVICES

PRODUCTION SERVICES

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

PRODUCTION MANAGER Nancy A. Vondersaar

MEMBER SERVICES AND COMMUNICATIONS COORDINATOR Hilary Welter, 317-275-9435, hwelter@nrha.org

SALES AND PRODUCTION ASSISTANT Freda Creech

MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9419, kstokes@nrha.org

CIRCULATION

MEMBER GROWTH AND DEVELOPMENT MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org

CIRCULATION DIRECTOR Richard Jarrett

EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9414, kmchone-jones@nrha.org

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

RETAIL LEADERSHIP INSTITUTE EXECUTIVE DIRECTOR-RETAIL LEADERSHIP INSTITUTE Scott Wright, 317-275-9417, swright@nrha.org DIRECTOR OF RETAIL OUTREACH Tom Marcum, 317-275-9430, tmarcum@nrha.org

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

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

STATE AND REGIONAL ASSOCIATIONS

NORTHEAST 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 Bill Mancuso, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9424, Fax: 317-275-9403, bmancuso@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.

SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org

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

CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

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

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

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

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

All editorial contents copyrighted 2017 by the North American Retail Hardware Association.

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

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

Honoring the Industry’s Future Leaders The Young Retailer of the Year awards celebrate the independent home improvement industry leaders who are shaping tomorrow. Honorees will be recognized before the NRHA All-Industry Conference and the National Hardware Show®, on Monday, May 8, in Las Vegas.

“The Young Retailer of the Year event was a fun opportunity to get to know people with similar backgrounds, who are a similar age and who are in a similar stage of life.

That was really special.”

—Meagan McCoy Jones, Young Retailer of the Year, 2013

Nominations for the 21st annual Young Retailer of the Year awards are being accepted through Feb. 24.

Visit nrha.org/yroty for more information and to submit a nomination.

NRHA MISSION

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

NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD James Cabirac, Kief Hardware, Cut Off, Louisiana EXECUTIVE VICE CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas FIRST VICE CHAIRMAN T.J. Comstock, Northwest Hardware, LLC, Billings, Montana SECOND VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin THIRD VICE CHAIRMAN Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois DIRECTOR Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts DIRECTOR Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina DIRECTOR David Dishke, Grand River Home Hardware, Caledonia, Ontario DIRECTOR Steve Fusek, Fusek’s True Value, Indianapolis SECRETARY-TREASURER Bill Lee, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Adam Busscher, Picton Home Hardware, Picton, Ontario

2

HARDWARE RETAILING | February 2017

Contents

60

FEBRUARY 2017 | VOLUME 212 | ISSUE 2

CATEGORY SPOTLIGHT

A Niche to Tap Into

Consumers have turned homebrewing into a popular hobby. Learn from retailers who have found success in this hopping niche so you, too, can draw homebrewers into your store.

COVER FEATURE

Did You Know?

NRHA’s State of Independents Conference attracts attendees from across the manufacturing, distribution and retail segments of the independent home improvement channel. It’s also the only industry event focused on helping participants better understand the 35,000-plus independent retailers operating in the U.S. and Canada.

4

HARDWARE RETAILING | February 2017

70 INDUSTRY EVENT

The 2016 State of Independents Conference Learn about the original industry research NRHA presented at its second annual State of Independents Conference and why you won’t want to miss the 2017 event.

76 RETAILER PROFILE

Four Generations of Resilience McCoy’s Building Supply celebrates its 90th anniversary this year. To keep the company’s growth going, McCoy’s continues to invest in its employees from top to bottom.

comfort, room by room

www.marsdelivers.com

Contents

OPERATIONS

48

The Life Cycle of a New Product

Discovering and stocking new products and eliminating slow movers are vital steps to a successful operation . This article highlights one retailer’s three-step process to remaining relevant .

“At NRHA’s Human Resources Roundtable, I got different perspectives from a variety of retailers, which provided me with insights for my day-to-day business.”

Kim Tarrant | Human Resources Manager | Family Farm and Home

6

82 LEADERSHIP

88 INDUSTRY PROFILE

The Retail Leadership Institute Find out more about the new and innovative programs NRHA continues to add to its Retail Leadership Institute and how it serves and develops the industry’s retail leaders .

Historical Tool Collection Lone Oaks Farm is a Tennessee treasure: It’s a working cattle ranch, corporate retreat, wedding destination and a place for college students to study agriculture . On top of that, the farm is also home to an extensive and fascinating antique tool collection .

Did You Know?

94 RETAILER PROFILE

In 2013, NRHA launched the Retail Leadership Institute to provide a line-up of high-touch, high-impact, retail-focused programs designed to develop and groom key managers and future retail owners .

Rich Past, Promising Future Dwyer Bros . in London, Ohio, has been a part of its community since 1888 . Still in its original location, the store combines old-time charm with a modern approach to retailing and attracts historians and DIY shoppers alike .

HARDWARE RETAILING | February 2017

1

Research and Discover

2

Stock and Showcase

3

Keep It or Move On

Departments 08 . . . . . . . . . . . . . . . . . On the Web 10 . . . . . . . . . .Independent Thinking 12 . . . . . . . Taking Care of Business 16 . . . . . . . . . . . . . . . . NRHA News 26 . . . . . . . . . . . . . . . . . . . . . Trends 28 . . . New Products by Industry Edge 40 . . . . . . . . . . . . . . . . . . Checkouts 100 . . . . . . . .Newsmakers/Calendar 106 . . . . . . . . . . . . . . . . . Last Word

On the Cover David Brewer of Brewer’s True Value has developed the homebrewing niche at his St . Peters, Missouri, store into a top-selling category .

NRHA photo by Graeme Haase

Now at The Little Big Shot® Super Nozzle is one of the top-selling, best performing, water efficient fully-adjustable hose nozzles in the world. It is made in USA and assembled by Disabled US Veterans through a Veterans Administration work program, designed to help veterans with disabilities earn much needed income.

®

When you stock the Little Big Shot®, you are supporting veterans who would otherwise struggle to earn income. You are also making profit on a category top-seller! It performs at high levels within the set as well as off-shelf. Its a win / win!

See the category impact for yourself in 2017!

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6pc Merchandiser SKU #1403-3211 SKUs #4445037 & #4445052 K-CO Products,LLC • 1601 Alton Parkway #D • Irvine, CA 92606 Phone: (949) 276-5252 • FAX: (949) 305-8727 • e-mail: david@kco-products.com • www.kco-innovations.com

On the Web

CATEGORY SPOTLIGHT

TREND SPOTTING

Getting Up to Speed with Craft Beer

Finding New Products: A Buyer’s Perspective

While breweries are a great place to find local offerings, some of your customers may consider making a hobby out of homebrewing. To train your employees about the homebrewing process and how to sell the materials needed, Hardware Retailing and the North American Retail Hardware Association (NRHA) created two videos, available at nrha.org/freetraining.

Video: Homebrewing Essentials This video explains the different items in a homebrewing kit and what materials and ingredients are needed to brew beer at home.

Video: Homebrewing FAQs This video prepares your employees to answer questions that potential homebrewing customers may have while purchasing homebrewing kits and related materials.

We talked with Gary Loosle, lawn and garden buyer at Do it Best Corp., to get another perspective on sourcing new products. While he works at the wholesale level, his insights are valuable for any retailer searching for new items. Read the Q&A at TheRedT.com/buyer.

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is geared toward all levels of employees.

Visit nrha.org/freetraining to download this month’s lessons, listed below.

PHOTO GALLERY

A Look Inside the Tool Museum From the impressive antique tool museum to meandering paths through the woods, Lone Oaks Farm in central Tennessee is a true monument to hardware and agriculture. In this issue, we share a profile on this one-of-a-kind destination. To see pictures from this unique destination, visit TheRedT.com/tool-museum.

8

HARDWARE RETAILING | February 2017

1 Video: Homebrewing Essentials 2 Video: Homebrewing FAQs

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

Independent Thinking

Have We Invested in the Right Assets?

W

inning at retail is a complex battle, always fought with limited resources. Where we spend our time and money says everything about our priorities and what we believe to be the right strategy for success. We seem to invest a good deal of time and money in a few assets as though they drive the business. But do they?

Retailers are obsessed with products. We’re finding unique niches, building signature departments to set us apart and turning our stores into destinations.

We roam the aisles of spring and fall markets with one goal—to find new or different products. Manufacturers work tirelessly to develop and market products with the latest updates in order to win a little more shelf space.

Inventory is an important asset, and we spend a lot of time managing it.

We also invest a lot of time and money on our physical assets. We make sure our stores look fresh and are in good repair; we keep our parking lots in good condition; we take care of our fixtures and shelving to keep them looking new. Appearances are vitally important to our customers, and taking care of this significant asset on our balance sheet makes great sense.

“Developing the

personal leadership skills, risk-taking abilities and business management skills of your staff will give you the edge you need to win.

”

Do We Have Our Priorities Right?

Of course, products are what we sell. Product differentiation is an essential ongoing battle. And, we must have a great store. They both need our investments in time and money.

But however hard we try to be unique, our customers can find our products elsewhere. Our competitors—both brick-and-mortar and online—will stock the same products if they become popular. Products are vital, but they alone won’t help us win the battle. Our stores are important too, but they can be copied or outdone. A well-done retail environment is just the price of entry.

And, of course, what happens to inventory and buildings as soon as we acquire them? They begin to depreciate.

But Are We Missing Something Important?

In the battle to win at retail, there is only one asset that can truly set us apart, accrue value over time and make winning at retail attainable: the talent and hearts of our people.

As owners, we have to take a hard look at our priorities. If developing our people isn’t at the top of our priority list, we’re sadly missing the boat.

The energy and talents of our people are uniquely theirs. Investing in our people expands possibilities and opportunities.

The only way your business can grow is through your people. Growth is difficult or impossible without having talent and experience in place to manage it. Developing the personal leadership skills, risk-taking abilities and business management skills of your staff will give you the edge you need to win.

However you choose to develop your people, through NRHA educational programs, your wholesaler or on your own, make it your No. 1 priority.

Your business will grow with your people.

Bill Lee, President and CEO

blee@nrha.org

10

HARDWARE RETAILING | February 2017

FAMILY FARM & HOME WILL DOUBLE ITS STORE COUNT … because they joined OUR co-op Al Fansler and his family operated a chain of 27 stores, but they had an even bigger vision for Family Farm & Home.

To expand the company, Al, Tim and Bob needed a true partner.

That’s why they chose the best option—True Value®.

(Left to right) Son-in-law Bob Tarrant, Al Fansler and son Tim.

FREEDOM TO RUN THEIR COMPANY THEIR WAY WITHOUT INTERFERENCE Family Farm and Home proudly shares the business results the company achieved as a member of our co-op. (Your individual results will vary.)

GROWTH

FROM 27 TO

51 STORES

DOUBLE-DIGIT PROFIT INCREASE

IN KEY CATEGORIES

IF YOU VALUE WHAT WE VALUE GIVE US A CALL AT 1-888-291-7229 TrueValueCompany.com

We understood the family’s long-term business strategy.

Tim Fansler, co-president and chief marketing officer, says, “True Value demonstrated a level of expertise within our wide range of product categories that we couldn’t find anywhere else.”

Today, the company operates 51 stores in three states with plans to keep growing with True Value.

True Value offers sound business solutions and resources to ensure Family Farm and Home’s future growth and profitability. Al, Tim and Bob are more than our business partners, they’re family.

TAILORED ASSORTMENTS SUPPORTED BY

MARKET DATA

Taking Care of Business

What is Hip? I Can Tell You What’s Not

T

“Cooler stores

tend to be the ones where the management team actively looks at the trends impacting their consumers.

”

here are a lot of characteristics one might associate with hardware retailers.

As a group, hardware retailers might be called honest, affable, reliable, polite, modest or independent. In most cases, these would all be apt descriptions.

Truth be told, however, there are a couple of words you don’t typically hear about your friendly, neighborhood tool peddler—terms like cool, hip and trendy come to mind.

Don’t get mad at me. Society and pop culture are working against you here.

Although you may have watched “Happy Days” and thought Mr. Cunningham was the cool one, the rest of the country was giving their thumbs-up to the Fonz.

And you’re not alone in this uncool category. It’s not exactly like trade magazine publishers are hanging out in the club with Beyoncé and the Kardashians. (On an even more personal cool, hip, trendy note, please understand that I will probably have to explain this Fonz reference to my editors who were born 10 years after “Happy Days” was cancelled.)

Right now, you might be thinking, “Dan, we didn’t come here to have you tell us how uncool, not trendy and anti-hip we are. We have our kids to do that. What’s your point?”

My point is this: While you might not consider yourself the cool kid on the block, your customers are looking to you for cool, hip and trendy ideas. They want to be able to find the latest products, reproduce the coolest trends and make sure their living spaces are as hip as small-batch, non-GMO, artisanal kombucha (ask your kids).

I’ve been to a lot of hardware stores—even really profitable ones—that are about as exciting as a mayonnaise sandwich on white bread. But I have also been to my share of pretty cool stores.

So what’s the difference?

First, the cool stores are usually the ones where the owners engage their entire staff on the products and services they offer. These owners understand that their world view is limited, so they rely on their teams to provide insight into what is hip.

Next, the cooler stores tend to be the ones where the management team actively looks at the trends impacting their consumers. They read magazines, go to shows beyond just their own wholesale markets and engage in social media sites that focus on lifestyles (think Pinterest). They use this research to inform their decisions about what products they bring in and how they present those products to their customers.

Lastly, the owners of cool stores look across generations when promoting their operations. There’s nothing wrong with hosting the same kind of promotion your store did in 1987 if it still works, but you also have to focus on promotions that will appeal to the diverse demographic in your market. You have to consider how you can reach beyond the suburban DIYer to capture the 20-somethings moving into their first apartments or the young families looking to live more naturally. These are the customers who can take a business from average to extraordinary.

And while I can’t promise that a polyester vest and name tag will replace a black leather jacket as the new symbol of cool, I can tell that a few steps in the right direction can create a buzz for your business and help set your store apart from your hardly hip competitors.

Dan M. Tratensek, Publisher

dant@nrha.org

12

HARDWARE RETAILING | February 2017

ROBBIE HAS PLENTY TO SMILE ABOUT … now that he’s with OUR co-op

Business is booming since Robbie left the other co-op behind to join our family. Although he’s proudly independent, Robbie never rides alone. Our team at True Value® is always at his side. We offer Robbie sound business solutions and resources to ensure his future growth and profitability. We fuel his success.

Today, Robbie has real relationships with folks who care. He no longer feels like “just another number.”

After all, Robbie is family.

FREEDOM TO RUN HIS STORE HIS WAY WITHOUT INTERFERENCE

Robbie proudly shares the business results he achieved as a member of our co-op.

(Your individual results will vary.)

CUSTOMER COUNT

MARGIN DOLLARS

INCREASED 9%

$

TRANSACTIONS

INCREASED

68,000

IF YOU VALUE WHAT WE VALUE GIVE US A CALL AT 1-888-291-7229 TrueValueCompany.com

PROFITS INCREASED

39%

INNOVATION. AGAIN. In 1989 No Spill put a push button valve on a gas can years before California or the EPA required them.

GUESS WHAT? Our simple push button design is still the best available with the fastest flow, tremendous accuracy, an automatic stop and most importantly – it’s the easiest to use.

Now in 2017 we are placing a flame mitigation device (FMD) in all our cans. We’ve added a layer of protection. Independent tests show our patented FMD to be effective yet it won’t affect flow during normal filling or pouring.

Our FMD is good news for anyone who uses or sells a gas can.

No Spill cans have the highest customer satisfaction and ratings in the industry. We plan to keep it that way by staying ahead of the game again.

Don’t you want the best for both you and your customer?

WE DO.

NO-SPILL

®

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

NRHA News

Updated NRHA Course Puts a New Spin on Teaching Employees Merchandising Basics

M

erchandising is one of the most effective tools independent home improvement retailers can use to increase sales. All retail store employees should understand the principles of creating and maintaining effective displays.

For many years, the North American Retail Hardware Association (NRHA) has offered a training course designed to help retailers teach employees merchandising basics.

Now, that course has an exciting new look, after NRHA recently released its updated Basic Training Course in Merchandising.

While the course delivers the same high-quality content, the user experience was improved to help students better absorb the information. The refreshed course includes photos, audio narration and interactive elements, as well as a study guide for employees to follow along. Each module ends with a knowledge check so trainees can be sure they understand the lessons that the module presents.

“The revised course explores the fundamentals of merchandising and how home improvement retailers can maximize the impact of merchandising in their stores,” says Jesse Carleton, NRHA’s training manager. “Employees who understand how merchandising can aid the selling process will be more effective at selling. We’ve revised the course to enhance the learner’s experience and show how they can apply their knowledge directly to the salesfloor.”

The merchandising course is a good fit with the Basic Training Course in Selling Skills, which was also revised last fall. These two courses, along with NRHA’s Basic Training Courses in Hardware Retailing and Building

Merchandising Modules • The Importance of Merchandising • The Elements of Merchandising • Types of Displays – Endcaps • Types of Displays – Dump Bins • Types of Displays – Checkout and Service Counter • Types of Displays – Other • Departmental Merchandising Tips • Creating Effective Displays • Housekeeping and Maintenance • Promotional Merchandising

16

HARDWARE RETAILING | February 2017

“Employees who understand how merchandising can aid the selling process will be more effective at selling.

”

—Jesse Carleton, NRHA’s training manager Materials Retailing, provide a suite of courses that are ideal for training new hires or refreshing the knowledge of longtime employees.

At the end of the course, there is a 50-question test to gauge how much employees have learned. The testing function allows retailers to check their students’ progress to ensure they are engaging with the material and building their skills. For NRHA members who are already using NRHA’s training, the transition to the new course will be easy. Employees still have access to previous test scores and don’t need to re-register to access the new modules. Trainers and students will not need to create new passwords, as all current login information will stay the same. Students have access to the course in the members-only section of nrha.org.

The Basic Training Course in Merchandising is available now for NRHA members in the U.S. and Canada. Retailers who are not members of NRHA can sign up at nrha.org or contact Kamille Stokes at 800-772-4424 or kstokes@nrha.org.

NRHA News

We’re More Powerful With One Voice

L

ast month, we showcased the educational and training opportunities that are available to you with an NRHA Membership. These programs support the NRHA mission—to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers—and our three pillars—

educate, advocate and associate. To advocate for independent home improvement retailers, NRHA conducts original research and hosts events across industry channels so you have access to the tools you need to run a successful business. To access the resources below, visit nrha.org/membership, contact NRHA Member Services at nrha@nrha.org or call 800-772-4424.

Make Smarter Decisions

Make Your Voice Heard

NRHA research studies present new and relevant data to help retailers make smart business decisions. Some of the current resources include these studies and reports.

• Home Sweet Home Study • Employee Compensation Study • 2016 Cost of Doing Business Study

The State of Independents Conference is the place to get input from all segments of the channel.

• Market Measure Report • Merchandising for Profit • 2016 Social Media Study • 2016 Retailer’s Website Usage

2017 will mark the 100th consecutive year NRHA will publish its Cost of Doing Business Study.

123

Are you ready to join the conversation?

NRHA is the only organization where 35,000 independent retailers can come together, regardless of affiliation, and have a collective voice with the industry, consumers and government entities.

NRHA provides the following avenues for you to share your voice.

• NRHA State of Independents Conference (SOIC) • NRHA Advocacy Advisory Group • Retailer Research Panel

“At the NRHA State of Independents Conference, I mentioned a few issues I had with vendors. They reached out to me directly wanting feedback on how to change their programs.”

Megan Menzer | Newton’s True Value | Member since 2009 18

HARDWARE RETAILING | February 2017

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NRHA News

2017 Events FEBRUARY

Reconnect with NRHA at Upcoming Events

D

uring the next few months, NRHA will be traveling to distributor buying markets and industry trade shows throughout North America. One of the reasons your association prioritizes market and trade show attendance is because it provides an opportunity for association staff to connect with retailers across all wholesale affiliations and to find out what’s happening in your stores and communities and how NRHA can support your independent business.

NRHA will be present at the events listed at right. Association staff will either have a booth, be set up in your distributor’s training and services area or meeting with retailers via appointment. If you will be attending any of these events as well, connect with NRHA while you’re there to share what’s new with your business and learn what your association can do to help you achieve your goals in 2017 and beyond.

If you would like to add NRHA to your market or trade show circuit or if you have general inquiries, contact NRHA’s Member Services department at 800-772-4424 or nrha@nrha.org or visit nrha.org/membership.

Orgill Spring Dealer Market Feb. 16-18, New Orleans True Value Spring Reunion Feb. 17-19, Anaheim, California

MARCH Hearth, Patio and BBQ Show March 1-4, Atlanta Ace Hardware 2017 Spring Convention & Exhibits March 16-18, Atlanta Blish-Mize Spring Buying Market March 17-18, Overland Park, Kansas International Home + Housewares Show March 18-21, Chicago

APRIL Home Hardware Market April 1-4, St. Jacobs, Ontario

MAY Do it Best Spring Market May 19-22, Indianapolis, IN

Midwest Fastener and NRHA Launch Certified Destination of Fasteners Program

M

idwest Fastener and NRHA have joined forces to create a program to raise the standard of excellence in the hardware and fasteners department for retailers.

Godwin Hardware, a three-store operation based in Grand Rapids, Michigan, was the first to complete the certification program. Owner Tim Buist and store manager Jason Slot worked with Midwest Fastener sales representative Jared Kamp to retrofit the department. In order for a fasteners department to be certified, it must have a dominant footprint, use the latest merchandising components and strategies and be staffed by employees who have completed product training through NRHA. “When customers come in our store, our goal is to have knowledgeable staff members to assist them,” says Buist.

“We’re really excited to be a part of this.”

Since resetting the department, Slot says it is easier to find products, and adjacencies make more sense. “Before, customers would spend a lot of time walking around looking for items,” he says. “The department is now more selfservice, and it looks great.”

“The fastener department is one of the key traffic drivers in any home improvement store, and this certification program with NRHA validates the investment that store owners have made in terms of space commitment, product selection, inventory availability and customer service,” says Jason DeVries,

Midwest Fastener’s director of marketing. “It’s a commitment to customers that the store will maintain a dominant, highly organized fastener department and have trained employees who can serve their needs. The results will be increased traffic counts and increased department and affiliated sales, along with heightened customer satisfaction and loyalty.”

(Left to right) Jason DeVries, Midwest Fastener’s director of marketing; Tim Buist, owner of Godwin Hardware; and Scott Wright, executive director, Retail Leadership Institute, NRHA.

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NRHA News

NRHA Hosts First-Ever Women’s Leadership Roundtable

N

ineteen women, who are retailers, manufacturers, distributors and NRHA staff members, are implementing new business practices, improving their businesses and working together more closely after attending NRHA’s first annual Women’s Leadership Roundtable.

On Dec. 7, these women from across the industry gathered in Chicago to discuss best practices, current issues and new ideas about leadership and the home improvement industry. The roundtable was the most recent addition to

“I gained great ideas to implement in our store to improve our everyday operations.

”

—Chrissy Busscher, Picton Home Hardware

the association’s successful roundtable series, joining seven other roundtables that NRHA hosts as part of its Retail Leadership Institute.

NRHA roundtables are designed to bring together retailers from across affiliations, store types and locations to network and share ideas. However, the NRHA Women’s Leadership Roundtable took this concept a step further, adding wholesaler and co-op executives and manufacturers to the group.

“My greatest takeaway from the event was meeting new people in the industry who are facing the same problems and getting some great ideas on how to fix them or at least make them better,” says Chrissy Busscher, roundtable attendee and owner of Picton Home Hardware. “I gained great ideas to implement in our store to improve our everyday operations.”

“It’s not about women’s issues. It’s just women talking about running stores,”says Katie Robisch, roundtable attendee and market research analyst for The Farnsworth Group.

“Where else can you get that much information from retailers, distributors and vendors in such a quick conversation?”

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HARDWARE RETAILING | February 2017

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Not just any product can be a Cat® product. And not just any business can be a Cat Home & Outdoor Power Authorized Sales and Service Center. We’re entering the portable generator market because we believe, as the global brand synonymous with power and durability, we’re uniquely suited to build a generator like no other. We’re out to be the best in the industry and we’re looking for partners who share that attitude.

If you think you have what it takes. If you’re prepared to be an extension of the Caterpillar legacy – one of durability, reliability and raw power – we’d love to hear from you.

Visit cat.com/jointheteam.

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Trends Employees as Obstacles to Growth?

Strategies for Finding the Right People If you’re struggling to find employees who are good fits for your business, you’re facing a challenge that is widespread in the industry.

Hardware Retailing surveyed more than 1,000 independent home improvement retailers in the U.S. and Canada, and many of them listed “finding the right employees” as their biggest challenge to business growth.

They also told Hardware Retailing that one of the No. 1 areas in which they plan to invest within the next three years is personnel development.

Employees are the face of your operation and the keys to good customer service and a solid business reputation.

Finding the right people to hire makes your business stronger and can solve a number of problems, including employee turnover and termination.

Applied to Retail: Thoroughly explaining your business and job openings can help you assess who might be a good fit for your business.

You can save yourself headaches if you help job applicants understand up front how your business operates and what the work entails before you hire them.

Start by advertising a detailed, clearly written job description before you begin interviewing candidates. During interviews, carefully explain job responsibilities, give tours of your operation and introduce prospective hires to workers who currently do the jobs they would be doing. If possible, have prospects job shadow for a day or two so they can see if they like the work, employees and company culture.

People may eliminate themselves as candidates if they realize in advance that they won’t like the work, or their reactions may show you they’re not who you’re looking for.

What is the single biggest challenge you face when trying to grow your business?

What are your biggest challenges for growth over the short term? (1-3 years).

The top four answers are listed.

Respondents could select more than one answer.

Finding the Right Employees

33%

the 50% Finding Right Employees

Brick-and-Mortar Competition

20%

Retail 42% Online Competition

Online Retail Competition

14%

Regulations and Taxes

11%

37% Brick-and-Mortar Competition 31% Regulations and Taxes to Capital 14% Access for Growth

Source: NRHA/Hardware Retailing

26

HARDWARE RETAILING | February 2017

Source: NRHA/Hardware Retailing

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A Joint Section Brought to You By Industry Edge and Hardware Retailing

1

2 One of the biggest advantages of attending the National Hardware Show® is browsing new products. The following items were selected by Hardware Retailing, the National Hardware Show and its publication, Industry Edge, as a joint section featured in Hardware Retailing. Take a peek at these products, some that are still in the works and others that have just hit the market. For more, sign up for the Industry Edge newsletter on industryedge.nationalhardwareshow.com.

28

HARDWARE RETAILING | February 2017

1. Portable Shopping Cart

2. Magnetic Key

The UpCart Pro Shopper cart was featured in the New Product Launch area of the 2016 National Hardware Show®.

The cart contains three compartments with zip closures; a lightweight, sturdy metal frame; and triple-wheeled hubs designed to easily climb over curbs, go up or down stairs and reduce strain on the user. It weighs 11 pounds, but can carry up to 77 pounds. The cart folds to approximately 4 inches thick for easy storage and locks into place when in use.

Launched at the 2016 National Hardware Show®, the MAGNETIC KEY

by INTU-Keys Co. incorporates an ultra strong magnet into the dimensions of a conventional key for hiding or storing a spare key. Multiple units securely interconnect and pivot 360 degrees to eliminate the requirement of a key ring.

Durable, versatile and convenient. The keys are made of anodized aluminum colors and nickel plated brass.

TriFold, LLC 800-539-3653 or www.upcart.com

INTU-Keys Co. 213-533-2581 or www.intukeys.com

Join us at the National Hardware Show® May 9-11, 2017 Las Vegas Convention Center Register at www.nationalhardwareshow.com

4

3 3. Toilet Tank Handle and Lever

4. Battery Operated Fuel Pump

Lavelle Industries, Inc. launched the latest product in their Korky Toilet Repair line at the 2016 National Hardware Show®.

Designed to fit most of the popular brand toilets, the StrongARM® can be installed in any tank position and is reinforced at all stress points. Its wide degree of adjustability eliminates the need for bending the unit to fit. Each package contains all parts necessary to replace an existing unit, including the handle, lever arm, lanyard and clips. The Korky StrongARM® Toilet Handle & Lever comes in a variety of designs to coordinate with many bathroom decors. Available finishes are chrome, brushed nickel, bronze and white.

TeraPump launched the TRFA01 Battery Operated Fuel Transfer Pump at the 2016 National Hardware Show®.

Powered by four AA batteries, the TRFA01 can transfer fuels at the rate of 3 gallons per minute from most standard plastic fuel containers. This makes it useful for filling lawnmowers, cars and other large pieces of equipment. The 35-inch hose provides enough length to reach most tanks, and the auto-stop and leak-protection features keep spills at a minimum.

TeraPump terapump@gmail.com or www.terapump.net

Lavelle Industries, Inc. 800-528-3553 or www.korky.com

February 2017 | HARDWARE RETAILING

29

A Joint Section Brought to You By Industry Edge and Hardware Retailing

5

6

5. Driveway Expansion Joints

6. Ceiling Storage Solutions

Trim-A-Slab is a flexible, exterior-grade PVC that can be pushed into the joint to form a barrier. The exposed top of the product is slightly rounded to shed rain or melting snow, helping to maintain structural integrity of the concrete. It can be pulled out and replaced as needed, allowing consumers to run wiring in the joint channel and keep the wires protected.

The Sloped Ceiling Storage Bracket and the Sloped Ceiling Clothes Rod Bracket are sturdy units that can be adjusted to any degree of slope to allow for level storage of items in garage or attic rafter spaces. Abrecht Brack Company also has a product that combines shelf storage and the clothing rod, giving consumers options. All brackets are constructed from 14-gauge steel and can hold 125 pounds per bracket.

R&D Workshop 832-618-3726 or www.trim-a-slab.com

Abrecht Bracket Comapny 732-292-9144 or www.abrechtbracket.com

7 8 7. Garbage Can Fly Trap

8. Ergonomic Paint Brush Handles

The Garbage Can Fly Trap attracts flies to garbage and disposes of them quickly and easily. Users drill a small hole in the lid of the garbage can, then snap in the access portion to the exterior of the lid and the disposal cartridge to the interior.

Flies will enter the trap through a small access port in the top portion, then drop into the flypaper-lined lower portion.

At the 2016 National Hardware Show®, GalaxGtools™ featured two ergonomic products: the Freehand ErgoMaster Pro and the Freehand DIY Anti-Fatigue Paint Brush Handles. The new brush handles fit any brand and size brush and are designed to take the weight and stress out of holding the paintbrush.

The higher-priced ErgoMaster Pro boasts a form-fit feature to conform more to the user’s hand.

Garbage Can Fly Trap 858-228-0659 or www.garbagecanflytrap.com

GalaxGtools 503-977-3464 or www.galaxgtools.myshopify.com

A Joint Section Brought to You By Industry Edge and Hardware Retailing

9

10 9. Magnetic Dryer Vent The MagVent Magnetic Dryer Vent has a magnetic coupling designed to connect the dryer exhaust to the exterior vent chase of the residence.

Instead of using standard clamps to attach the vent hose to the chase, the unique coupling relies on magnets to self-align the two components together.

This makes a secure connection that will not accidentally come apart, but will be easier to disconnect for vent cleaning and maintenance.

MagVent LLC 888-960-7484 or www.magventllc.com

10. Magnetic Tool Band StickQuik Bands™ are powerful, magnetic bands that can be stretched to snugly fit any ferrous or non-ferrous hand tool or utensil handle. The bands come in two diameter sizes, ½-inch and 3/8-inch, to accommodate a variety of hand tools, kitchen utensils and implements. StickQuik’s silicone bands with integrated neodymium magnets slip over the handles of most tools, allowing users to hang items anywhere there is a metal surface.

StickQuik Bands 844-772-2637 or www.stickquik.com

32

HARDWARE RETAILING | February 2017

11 12 11. Toilet Seats

12. Self-Water Planter

Toilet seats are an item many consumers take for granted.

However, having a seat that is easy to clean and fits specific needs can make a difference. The Just Lift and the NextStep address consumer needs. The Just Lift line has a hinge system designed to make cleaning easier. For consumers with small children, the NextStep line offers an integrated child potty seat.

WaterWell Planters eliminate the need for daily hand watering of plants, while also providing the perfect amount of moisture for months at a time. The company offers both residential and commercial planters. The planters contain hydrating wicks that eliminate water waste. Outdoor planters are conveniently refilled during rain, and the overflow hole prevents overwatering of both indoor and outdoor plants.

Bemis Manufacturing Company 800-558-7651 or www.bemisseats.com

WaterWell Planters 844-987-9355 or www.waterwellplanters.com

A Joint Section Brought to You By Industry Edge and Hardware Retailing

14

13

13. LED Yarn Wire

14. Outside Shader

SEEMEGLO Yarn is an electroluminescent (EL) wire by Innovatech International Inc. The product is powered by a lightweight battery pack, which requires three AAA batteries. Its flexible strip simplifies creation of custom designs for a multitude of applications. Available in a variety of colors, it is also waterproof, making it very useful for outerwear, safety vests and pets.

TerraNation offers a line of easy-to-use pop-up-style beach shades for protection and privacy. With no tent poles or other structural pieces, it's easy to put together. The user places it in a debris-free spot, locks the main joint and pulls drawstrings until shelter takes shape. The hub assist mechanism does most work when raising or lowering the shade.

Innovatech LED 562-407-2999

TerraNation GMBH info@terra-nation.com or www.terra-nation.com

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HARDWARE RETAILING | February 2017

SPREADER

TRANSPORTER

15

16

15. Twist Tie Pod

16. Bug Repellent

The Twist Tie Pod by Happy Hale, LLC is a product that allows homeowners and consumers to gain access to a twist tie quickly and easily. The refillable pod allows users to pull out and cut twist ties to the necessary length. Plus, the carrying case attaches via magnet to any metal surface, so it can hang in a garage or on a garden shed wall.

ShooAway is a chemical-free bug repellent that keeps flies, bees, mosquitoes, gnats and wasps away. The product's gently rotating blades are holographs that refract light in such a way that, when in use, helps repel unwanted insects.

It is safe to use around food, and the auto-stop function protects hands from coming into contact with the blades.

Happy Hale, LLC www.twisttiepod.com/contact

ShooAway USA, LLC 916-800-8373 or www.shooawayusa.com

ees

Mic e

BLOCKS •

•

Sp

•B

•

17

ts • Roaches Ba

nts •A

Bird s•

A Joint Section Brought to You By Industry Edge and Hardware Retailing

id e

rs • Insec

ts

TAKE A STAND AGAINST MICE. Mouse Shield™ contains an EPA-registered pesticide that protects the foam from attack by mice and other pests such as birds, bats and tree squirrels. It also blocks ants, roaches, spiders and bees. Use Mouse Shield to seal gaps and cracks inside your garage, attic, crawl space, basement, under sinks, around pipe/electrical penetrations or any areas where pests, insects or drafts can enter your home and living spaces.

Discover Mouse Shield Premium Pest Block at Touch-n-Foam.com/pest – then order it for your customers today by contacting us at 1-800-325-6180.

17. Smart Home Device Line Presented at the New Product Launch at the 2016 National Hardware Show®, the MAX Smart Home device line joins the growing department of smart safety and security products on today’s market. Built as a plug-in-and-go unit, the MAX Smart Home covers areas that previously have been monitored by multiple pieces of equipment or by products that are hardwired into the home’s infrastructure. Some features included in MAX are the smoke and carbon monoxide alarm, security alarm with vibration detection and motionactivated lighting, humidity monitoring and excess heat and humidity notifications, and IOS and Android compatibility and Wi-Fi connectivity. Additionally, MAX specifications include voice recognition and control, lighting (both accent and emergency), ambient sound production and RF (radio frequency) connectivity. One key feature of the product is its alert system, which uses both tone and voice alarms, to warn consumers of danger, including approaching severe weather.

MAX Smart Home, LLC 855-999-8139 or www.maxsmarthome.com

18 19 18. Deer Dragger

19. Patio Umbrella

The Deer Dragger was featured in the New Product World at the 2016 National Hardware Show®. This product makes it easier for hunters to transport game back to their campsites or to a parking area hands-free and with minimal equipment. It comes in two different versions: an ATV/UTV version, with a strap/carabiner combo, and the Boot’in combo, with a strap and double shoulder harness that evenly distributes quarry weight for easier pulling.

The ARTiculatedshade umbrella is a new design in patio umbrellas. Consisting of shorter ribs hinged in multiple spots, the umbrella can be fully closed without hitting furniture or obstructing the view of people sitting near it, and it allows for larger umbrellas. The shade can be raised and lowered with a single finger by pulling the drawstring.

A.A.C. Forearm Forklift, Inc. info@forearmforklift.com or www.strapsrus.com

ARTiculatedshade www.articulatedshade.com

Advertisement

Checkouts PROMOTIONS

Just a Little Monkey Business

T

he stuffed monkeys hanging around Fishers Do it Center have some serious business to do. They are all part of an activity designed to encourage children and their parents to explore every area of the salesfloor.

Kim Young, co-owner of the Fishers, Indiana, store, along with John Brass, the repair and rental manager who came up with the idea, have strategically placed 22 monkeys in various departments throughout the store. Each are labeled with the name of a staff member. The animals might be sitting on a shelf, clinging to the side of a display or hanging from a department sign. Children on the search for monkeys write down the names of every one they find. Those who find all 22 get a free bag of candy.

“This is a great activity to give kids something to do when they’re in the store, but it’s really just as much about the parents,” says Young.

Parents typically follow their children in their search for the monkeys, which means they may visit more departments than they normally would and see items they didn’t know the store carried. That’s part of the strategy, as Young has made sure there are monkeys hanging around in every corner of the store.

“It’s simple and fun, but it has been very popular so far,” says Young, who started the activity late last year. “For just the cost of a bag of candy, we can get people to spend an extra 15 minutes or so in the store and hopefully find some items they didn’t know we carried.”

Children who find all 22 monkeys hanging around Fishers Do it Center get a free bag of candy. To find the monkeys, children (and usually their parents, too) must visit nearly every department in the store.

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

40

HARDWARE RETAILING | February 2017

Checkouts

PROMOTIONS

A Doggone Deal

F

or a couple of weeks at the beginning of each year, after all of the seasonal and holiday inventory has been packed away, there’s a little bit of empty salesfloor space at Longenecker’s True Value in Manheim, Pennsylvania.

The staff makes the most of that space by filling it with X items, or “dog items,” says partner Steve Ober, and hosting their annual Doghouse Sale.

“We’ve done this for the past 10 years or so,” says Ober. “We fill that area with slow-moving items at highly discounted prices.

“It provides some cash flow during a slower time of year and brings in foot traffic at a time when we normally may not have as many transactions,” he says.

The sale has become popular with customers, who now look forward to it each year, he says.

After the sale, Ober and his staff will clean up that area and begin setting up outdoor furniture and lighting products, preparing the store for the beginning of the spring selling season.

Every year, the staff at Longenecker’s True Value hosts a Doghouse Sale, which offers an opportunity to clear out slow-moving items at highly discounted prices. It’s a highly anticipated event that provides a little extra cash flow during a slower time of year.

42

HARDWARE RETAILING | February 2017

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Checkouts

MERCHANDISING

Come In, Sit Down and Shop A While

M

any of the customers who come in to Munger Paint & Wallcovering are homeowners looking for the perfect shade of paint or just the right pattern of wallpaper to help them redecorate a room.

Thanks to some painted furniture and a fireplace, the store feels welcome and inviting as customers browse the aisles or sit down to look through wallpaper books or paint swatches.

There are a couple of tables and a desk in the paint section, and a table and fireplace in the wallpaper area, all designed to make customers feel at home as they make their purchasing decisions.

“We want to everyone who comes through the door to feel welcome,” says owner Curt Munger. “We want them to take time to browse or to ask questions. We think the furniture adds to that welcoming environment.”

Try something similar in your store: Add a table and chairs to your paint department so customers have a place to sit and look through color options, or consider displaying painted furniture to help them think beyond the walls for their paint purchases.

The furniture on display makes customers feel welcome to sit down and look through paint or wallpaper samples.

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risty Ransdell, co-owner of Burney Hardware in Aberdeen, North Carolina, knows the importance of Facebook as a way to promote her business. But she’ll quickly admit it’s difficult to manage a social media site with the many other responsibilities of running a store.

That’s why she has a secret weapon.

Ransdell hired an outside company to act as a consultant to help her strategize what would make the most effective posts. They also offer design services.

“Our local newspaper created a company that helps small businesses like ours improve their social media presence,” she says. “I work closely with one of the women there. I tell her what we have going on in the store and then she comes to me with suggestions of what to post.”

For example, last fall Ransdell wanted to promote the store’s propane tank filling service. She had an idea of how she could use an infographic to get the message across on Facebook; she just needed a little design help.

Her consultant created a graphic that told the story, and it got a lot of attention on the store’s Facebook page.

Having a social media expert’s help has also given Ransdell insights into

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how to market to the store’s diverse customer base. “She’s opened my eyes to some of the ways we can connect with millennials in particular,” she says. “Those are things that never would have occurred to me, but have been very helpful in attracting that younger demographic.”

For Ransdell, using the service has helped her boost the number of Likes on the store’s Facebook page.

Last year they had a little more than 2,000 Likes, and this year they’ve increased that to nearly 3,000. It’s also helped her boost the professionalism of the media she posts with creative, eye-catching graphics.

Retailers who want to improve their social media presence can benefit from an outside service that can help create quality, customized media for the store while helping it maintain a local feel. A great place to start might be a local newspaper or other organization with a design or social media staff that might be willing to do a little work on the side.

While Burney Hardware is currently active on Facebook, Pinterest and Instagram, Ransdell hopes to tackle two more platforms in 2017: Twitter and a blog.

“She’s opened my eyes to some of the ways we can connect with millennials in particular.

”

—Kristy Ransdell, Burney Hardware

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Life Cycle of a New Product How to Find and Promote Trending Items

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ustomers walking through Ambridge Do it Best know they can find what they need to complete any project. However, they can also pick up coffee, a jar of pasta sauce and a Pittsburgh Steelers hat.

David Strano, co-owner of the business, is passionate about adding new products.

To do this, he follows a three-step process: discover a new item, stock and showcase it and then decide whether to keep it or move in a new direction.

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HARDWARE RETAILING | February 2017

His own personal drive to discover new things and share them with others has helped the Ambridge, Pennsylvania, independent business avoid becoming stagnant.

“As a business owner, I always make sure I’m in tune with the new products my customers might want or need,” Strano says. “For me, it’s important to take risks with new products and believe in those risks. If it doesn’t work, I can change my strategy and try again.

But offering new things is what our customers have come to know and appreciate about our business.”

As most retailers know, finding trends or trying out new products is just as important as stocking core items.

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Phases of the Life Cycle In this article, Hardware Retailing highlights the different phases of the life cycle of new products and discusses best practices for each of these phases. For Strano and other retailers, the new products life cycle is made up of three distinct phases: product discovery, stocking new products and then keeping a winner or eliminating a poor-selling product.

And although many new products retailers introduce in their stores may be considered niche products or categories, this cycle can be applied to a standard category’s latest item or niche product lines.

Read on to learn how Strano stays on top of the trends to keep his store full of new and interesting products and discover ways you can take risks and try new products and product niches in your business as well.

Then, head to TheRedT.com/buyers to learn about how a buyer from one of the hardware co-ops finds and sources new items and trends to help retailers in their products search.

The Three Steps and Discover 1 Research

and Showcase 2 Stock

It or Move On 3 Keep

One niche category that Ambridge Do it Best constantly updates is a department devoted to professional Pittsburgh sports teams. These products represent the NFL’s Pittsburgh Steelers, the MLB’s Pirates and the NHL’s Penguins.

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HARDWARE RETAILING | February 2017

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Research and Discover Before a new product makes its way onto the shelves of Ambridge Do it Best, Strano has either heard of it from a customer or discovered it at a competitor’s business.

For example, about five years ago, consumers’ enthusiasm for single-serve coffee was heating up.

Keurig coffee makers and K-Cup pods were the hottest new items on people’s wish lists, but not all retailers were eager to jump on the trend.

Whether he visited other stores, talked to his customers, attended trade shows or simply searched online, Strano had sufficiently researched the product line and decided the interest and intrigue were worth the risk.

Instead of simply sticking to traditional coffee makers, Strano listened to his intuition and gave Keurig coffee makers, coffee pods and accessories a place in his store.

“I knew that Keurig products were something we should get into,” Strano says. “We went to our co-op’s market and started with one machine and four K-Cup flavors. Since then, it has grown astronomically.”

Today, that risk has paid off, and Ambridge Do it Best is home to one of the largest selections

Since Kuerig Coffee Machines, K-Cup pods and accessories first hit the floor at Ambridge Do it Best, the volume and options have grown extensively.

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HARDWARE RETAILING | February 2017

of K-Cup coffee flavor pods in the area, even compared to big-box retailers like Bed Bath & Beyond, Strano says.

“We have over 40 feet of K-Cups, with about 100 flavors or more; we carry all of the machines and the accessories,” Strano says. “Our display area for Keurig is in the front of the store, and we take pride in its presentation. If you put your heart into something and believe in it, it’ll pay off.”

So how can a retailer discover the next Keurig?

Product discovery takes place in a variety of ways.

“Researching and discovering new products is something I feel I have a strong passion for,” Strano says. “I like to see what’s trending at other stores, at hardware shows and by simply listening to what our customers are looking for.”

While the product discovery phase is the first step in the life cycle of new products, Strano says it is something he is always thinking about.

This means keeping products at the forefront at all times. Whether he’s out visiting other stores and finds something he believes his customers would like, watching a commercial on television or walking a market floor, Strano says product discovery is something retailers should always be thinking about.

Another way Strano has discovered new products to introduce to his customers is by shopping locally as often as he can and supporting those businesses if it would be a fit.

“There is a candy store about three or four miles from my business,” Strano says. “It’s a local favorite, but I figured many people probably wouldn’t make a trip all the way out there to buy a small box of candy. That’s when I thought it might be cool to sell some of their candy in our store.”

Strano called the candy shop to request to sell a small amount of its candy in his store. As customers realized it was available, he increased his volume and selection, and now Ambridge Do it Best sells several thousand dollars worth of candy each month, and even more during holidays.

If a retailer wants to expand upon their product selection, finding a local non-competitive business in the area to stock inventory from may be a great option.

If the business agrees, it can be a win-win partnership. Not only will stocking local businesses’ products add to your sales, but also it can help create a stronger relationship with local businesses.

Stock and Showcase Strano is always compiling a mental list of all the products he’s discovered and would like to test. However, the next phase in the life cycle of a new product requires action.

“Once we’ve discovered and decided to add a new product to our shelves, we make sure to stick to the ‘one to go, one to show,’ idea,” Strano says. “For every new item that comes in, we have to eliminate another slow-moving item. We try to be conservative with our inventory orders, but since we have a truck that comes once a week, if something does extremely well, we can increase our order moving forward.”

In order to make sure new products don’t hit the salesfloor and start collecting dust, Strano is

Ambridge Do it Best employees can get a quick rundown of all the latest new products available on the salesfloor on a bulletin board in the break room.

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HARDWARE RETAILING | February 2017

proactive in communicating these new products to employees and customers.

After new products arrive and find their place in the store, Strano has images of these products and some information about them displayed on a new product corkboard in the employee break room.

“I have over 50 employees working here, so I always make sure to spread awareness for the new products we introduce on our salesfloor,” Strano says. “We have 53,000 SKUs, so I don’t expect them to know everything we have. However, by displaying the newer products in the break room, employees might get an idea for something a customer may need or want the next time they’re answering questions.”

To keep new products at the top of customers’ minds, Strano also is sure that whether an employee recommends something or not, they know if something is newer to their shelves.

“In each of our departments, I have a bulletin board that clearly displays 10 new items to hit that department,” he says.

Signage helps spread awareness for new products, and Strano says that if an item is new within a few months of being introduced, they include tags that say “New Item” along the shelves to attract attention.

Outside of signage, Strano says if a new niche is being tested in a retailer’s store, creating an inviting display in a high-traffic area is a great way to draw attention to the new items.

For example, he has a well-developed Pittsburgh sports team department devoted to the Pittsburgh Steelers, Pittsburgh Pirates and Pittsburgh Penguins. To keep the niche relevant, he is constantly sourcing new items and displaying them creatively.

“We got a light-up Pittsburgh Steelers hat a while back, and rather than just add it to a shelf and leave it alone, I decided to find a creative way to grab customers’ attention with it,” he says.

Strano got his employees in on the fun and had a few cashiers wear the light-up hat, as well as put one on a mannequin and make sure it was lit up from open to close, even if that meant going through a few batteries to keep it on.

“I ordered 24 of these hats to start and with an effort to attract people’s attention to them, they sold out almost immediately because I was proactive,” Strano says. “If you are excited and passionate about a product, share that with your customers, and you can’t go wrong.”

Keep It or Move On The last phase in the life cycle of a new product requires retailers to take a look at how the new product or niche is doing and make some decisions on its fate. However, the most important thing to consider when looking at your inventory is if the product is adding to business or not.

“If an item is sitting on the shelf and collecting dust for more than a year, its time to code it as a slow item and do what you can to clear out your inventory,” Strano says. “To help move items along, we have a closeout section located at the front of our store, which features 50 to 100 items. I don’t want to tie up my inventory on something that’s not selling when there may be another new product or unique niche that could be bringing in sales.”

At Ambridge Do it Best, Strano says they keep a close watch on their inventory, and after trying creative merchandising options and marketing tactics to draw customers to a new product or product line, if it simply isn’t selling, they will eliminate the product.

“You need to be proactive and get rid of items that aren’t moving. However, failing at a product or

product line isn’t a bad thing—it helps you learn and grow as a retailer.”

While Strano says he has failed at a few niches or products he’s tested out in his store, he stresses that a retailer will never know how something will go if they don’t try.

“You have to put time into research, put marketing tactics into place and take advertising and displaying the product in your store very seriously,” he says.

“Sometimes I may want to try something out and it doesn’t come to fruition, but my goal is to try.”

The life cycle of a new product is an ongoing process, which means you can be in several phases of several cycles at once. Through any phase, Strano makes it a point to always look for new products, try them out and keep or kick them to the curb, because as online retailers compete with brick-and-mortar retailers, stocking new and cool products is vital.

“As an independent retailer, it’s more important than ever to be different than the competition. By stocking new and unique products, customers will have more reasons to return to your store instead of buying an item online from Amazon.”

David Strano, co-owner of Ambridge Do it Best, says he would rather move an item to his clearance offerings than let it sit on the shelf and collect dust at full price for an extended period of time.

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HARDWARE RETAILING | February 2017

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Tapping Into a New Niche How to Be a Destination for the Homebrewing Community

A

walk into the aptly named Brewer’s True Value Hardware reveals an experience and some niche products most home improvement stores don’t offer.

Whether customers are seeking home improvement products or beer-making supplies, they can find both at the store.

Located in St. Peters, Missouri, Brewer’s True Value sells everything that both a beginner or expert homebrewer could need. A section of the business features shelves carrying ingredients such as grains, hops (a bitter dried plant used to balance the sweetness of malted beers), as well as the glass bottles and bottling buckets for the beer-making process.

David Brewer, who opened the store in 2011, decided to try selling homebrewing products after one year in business. The niche has since become an important department for the store. Brewer now has a following of homebrewers who rely on him for the

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HARDWARE RETAILING | February 2017

equipment and ingredients they need for their hobby, and they also look to him for expert advice.

The hobby isn’t new, but it is a growing trend that home improvement stores throughout the U.S. are capitalizing on. Whether it’s simply carrying a few homebrew starter kits or bringing in all the products a dedicated hobbyist would need, you can be successful and profitable in this niche if you go above and beyond simply stocking products on the shelf.

For this article, Hardware Retailing spoke with two different retailers who have built a following among homebrew hobbyists.

On the following pages, you will learn about how these business owners got into selling the niche and what you should consider before expanding or starting your own homebrew department. You’ll also learn about products to carry and the knowledge you and your employees will need to serve the growing community of homebrewers.

February 2017 | HARDWARE RETAILING

61

Should You Sell Homebrew Products?

For retailers who haven’t sold homebrew items or are interested in expanding upon a small homebrew selection, it’s important to consider several factors before diving in.

As with any new niche or product line, there is a lot to determine before moving forward, including the potential audience, the space required and the product knowledge you’ll need.

At Karp’s Hardware and Homebrew in East Northport, New York, homebrew has been a part of the business for more than 20 years. When store owner Alan Talman first added the category in 1995, he says it was a way to attract customers during the winter months.

However, his homebrew business is now just as competitive as any of his store’s core categories, Talman says.

“Since opening the

department, I’ve expanded my salesfloor. Plus, I’ve gotten involved with the local homebrew organizations.

”

—David Brewer, Brewer’s True Value Hardware

“If you’re selling the homebrew hobby, but you’re not out in your community, meeting local homebrewers, attending events or don’t even know how to homebrew, you might as well be Amazon,” Talman says. “You need to have an employee who your customers can connect to homebrewing. Whether it’s you or another employee, this will make a big difference in establishing your business as a go-to spot for your homebrewer customers.”

Although Brewer’s True Value has offered a homebrew department for four years now, before entering the market, Brewer got some help building the department from an employee who was very skilled in the hobby. After looking at the need for homebrew products and seeing the lack of local places to buy them, it made sense to go for it.

“I started small in homebrewing because I wasn’t sure about the market,” Brewer says. “We’re in a suburban area. Since opening the department, I’ve expanded my salesfloor. Plus, I’ve gotten involved with the local homebrew organizations.”

Brewer suggests retailers investigate the local interest in the hobby before investing in the category.

“See if customers have another place to get their homebrew equipment,” Brewer says. “If not, I think it’s a great category for any home improvement business. If there is another local homebrew shop, think about what they have and what you would bring if you got in the market.”

When a customer walks through Brewer’s True Value, they can’t miss the homebrewing department. Not only does the store stock starter kits, but seasoned brewers can pick up all the ingredients they need for their next batch of beer.

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HARDWARE RETAILING | February 2017

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Top: To help customers navigate the homebrew department, Brewer’s True Value has clear department signage.

Right: Karp’s Hardware and Homebrew helps a variety of hobbyists. These ingredients made 150 gallons of beer for a local beer festival.

Products to Carry To attract homebrew customers and become established among hobbyists, stocking essential homebrewing products and additional items to add in to the mix is essential.

Homebrewing, much like baking, requires specific things you need to get the recipe made from start to finish, Talman says.

“It’s an easy hobby to sell, since the homebrew starter kits come with the majority of things anyone would need,” he says. “A kit includes a fermenter, a bottling bucket and a capper, as well as the ingredients needed to brew a specific type of beer.”

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HARDWARE RETAILING | February 2017

At both Karp’s Hardware and Homebrew and Brewer’s True Value, customers can find homebrew equipment and the ingredients needed to make different types of beers.

The four primary ingredients to stock include malt extract, grains and malted barley, hops and yeast. Brewer’s True Value stocks all of these ingredients, and customers can browse the aisles to select exactly what ingredients they’ll need.

Other items, like glass bottles, jugs and bottle caps are needed to finish homebrew projects.

For a better understanding of the homebrewing niche and to offer training for employees and management, go to nrha.org/freetraining to watch the videos “Homebrewing FAQs” and “Homebrewing Essentials.”

Although hardware distributors may sell some of the items or materials a customer might need to homebrew, both Talman and Brewer recommend finding a distributor that specializes in beer making.

To ensure customers come back to shop the department, it’s important to provide a good first impression. At Brewer’s True Value, when a customer is near the homebrew department, they know it. Clear signage and well-merchandised endcaps call out to customers and encourage them to stop and walk around.

The homebrew area has old-time beer posters, pamphlets with educational information, clear signage that labels the different ingredients and more. This allows customers to quickly and easily find whatever it is they need.

Become the Homebrew Expert One of the key components to becoming a successful homebrew supplier is to have experts on staff to get new homebrewers started and support established homebrewers who may have more advanced needs or questions.

“The most important thing is to have one person well grounded in the ability to homebrew and who knows the nuances of the craft,” Talman says. “At my store, I am that person.

The second most important thing is to have a few employees familiar with the process who have prior homebrewing experience. We’ll have demos in our store, and not only are these helpful for customers, but they are also great for our employees, because there is no better way to understand homebrewing than to do it yourself.”

At Brewer’s True Value, two other employees are well-versed in the homebrewing category, which ensures there is always someone to help a customer, even when Brewer is away on nights and weekends.

While Brewer says all individuals have their own way of homebrewing, there are basic steps to follow. When training employees in homebrewing, you should make sure they understand these basic steps and can lead customers in the right direction.

“Make sure you have someone who can champion the homebrew category,” Brewer says.

“If you get involved with local homebrew clubs, you can find people to help.”

To take education to the next level, Brewer hosts introductory beer-making classes at the store each month to show people how to homebrew.

He caps class sizes at 16 people.

Talman doesn’t typically host events at his store; however, he has offered demonstrations at various locations in town, like at local breweries and the local library.

These events attract people who are interested in homebrewing and let them know that Karp’s Hardware and Homebrew is where they can find the products they need.

Hosting Homebrewing Events When customers head to Brewer’s True Value, they may need to pick up items for a DIY project, but the homebrew section of the business is likely to steal their attention. In order to encourage curious customers to try homebrewing, David Brewer makes it a point to answer any questions they may have, as well as invite them to the next monthly introductory beer-making class at the store.

“The events we hold on a regular basis at the store are wineand beer-making classes,” Brewer says. “I’ll make a beer and show customers the steps from start to finish.”

Brewer typically hosts the introductory class once a month, with class sizes capped at 16 people. In addition to watching the homebrew process, attendees have the opportunity to sample beers from Brewer and other homebrewers. After the class is complete, Brewer answers any additional questions and helps customers select items they may need to get started at home.

“People from the local homebrew club often come help me out at my classes, which is very helpful,” he says.

Joining the (Homebrew) Community One of the reasons people are continually drawn to homebrewing is the social element of the hobby.

“Homebrewing is very much a group-focused hobby,” Talman says. “The friendships and social aspect of homebrewing are part of the reason why people get started.”

With more than 1.2 million people who brew their own beer at home in the U.S., communities of homebrewers are found all over the country, according to the American Association of Homebrewers (AHA).

February 2017 | HARDWARE RETAILING

65

Whether you’re just kicking your homebrew supply business off the ground or are interested in discovering homebrew groups in your hometown, the AHA is able to connect you to anything you’d want to find.

With more than 46,000 members, the AHA works to promote the hobby and offer educational opportunities as well.

It works in conjunction with retailers who sell homebrew equipment to host events and lists homebrew retailers on its website.

Hardware Retailing spoke with Steve Parr, assistant director of the AHA, to learn more about the association and how it can support hardware retailers involved in the homebrew hobby. To read the full Q&A, visit TheRedT.com/aha-qa.

Talman says attending a local homebrewing group event is a great way to become familiar with the hobby and to get to know homebrewers in your community.

“If you’re not well-connected with a local homebrew group, if you don’t contribute products, if people aren’t bringing you beers to taste, you might want to get a better relationship built with the local homebrew community,” Talman says. “That might mean sending a young

employee to their events or sending them on a homebrew trip.”

To find a homebrew club in your area, head to HomebrewersAssociation.org and select “Clubs” under the “Community” tab.

For Brewer, becoming involved in the AHA has helped him learn more about the homebrewing hobby and has connected him to homebrew groups in his area. In addition to attending the events and hosting his own homebrew classes and events at his store, Brewer enjoys attending the AHA Conference.

“A lot of vendors are there, and there are many seminars on techniques and trends in the industry that I gain a lot from,” he says.

The interest in the hobby is yearlong at Brewer’s True Value, and the community of local homebrewers he knows frequently shop at his store.

“Homebrewing is a hobby many people enjoy, probably because you get to be creative with new beers and try out a wide variety of styles and types of beers,” Brewer says. “Creating a beer and sharing it with friends is an interactive hobby that has made the homebrewing community so much fun. The social aspect of homebrewing is a big key to its success.”

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All Eyes on Independents Conference Reveals Insights Into Industry Challenges, Opportunities

A

s a group, independent home improvement retailers are optimistic about the near future, with 78 percent saying they expect to see sales increase over the next three years. This information came from of a recent survey of more than 1,000 retailers conducted by the North American Retail Hardware Association (NRHA).

Ten percent of these retailers expected sales to “increase significantly” during this period.

However, NRHA’s research also revealed some of the challenges these retailers felt could impede this growth and once again, the ability to find quality employees topped this list (for more information, see Page 26).

“Five years ago, if you would have asked me the same question, I would have told

February 2017 | HARDWARE RETAILING

71

“The younger crowd coming in today, even if they have a lot of enthusiasm and the right attitude, they just seem to lack some of the basic skills and knowledge they need to have about the trade.”

—Jared Smith, Jared’s Ace Hardware you that having quality employees was one of the greatest assets independent retailers had,” says Jared Smith of Jared’s Ace Hardware in South Carolina. “Overall, we are lucky to have a great team at our operation. But in general, the younger crowd coming in today, even if they have a lot of enthusiasm and the right attitude, they just seem to lack some of the basic skills and knowledge they need to have about the trade. These are things we really need to teach them about and help them with so they can help our customers properly.”

This research and Smith’s sentiments were among many of the topics discussed during NRHA’s 2016 State of Independents Conference, which was held Dec. 8 at the Hyatt O’Hare

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HARDWARE RETAILING | February 2017

in Chicago and exclusively sponsored by the National Hardware Show®.

This was the second annual State of Independents Conference, and attendance at the event was up by nearly 20 percent from the 2015 event, according to Dan Tratensek, NRHA vice president and publisher of Hardware Retailing magazine.

“We were very excited to see that more and more members of the home improvement channel are interested in learning about the challenges and opportunities faced by independent retailers today,” Tratensek says. “We hope to see even more people come to the event next year so we can make sure we keep the needs of independent retailers front and center for the channel.”

A Focus on Independents With representatives from across the manufacturing, distribution and retail segments of the channel in attendance, the NRHA 2016 State of Independents Conference represents the only industry event that is completely focused on providing attendees with a better understanding of the more than 35,000 independent home improvement retailers operating in the U.S. and Canada.

The one-day event featured a variety of research from NRHA and other leading industry

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45%

23% 10%

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organizations, focusing on topics ranging from what motivates individuals to open a home improvement operation to how consumers view the shopping experience at independent brick-and-mortar stores versus their big-box and online competitors.

“Independent retailers are such a vital part of the home improvement industry, but because they are all independently operated businesses, they can be the most difficult to truly understand,” says Rich Russo, vice president of the National Hardware Show, which has served as the event’s exclusive sponsor for the past two years. “We want to lend our support to this important event, because anything we can do to help the industry better understand what these retailers need to succeed will only help the industry thrive.”

In addition to revealing results of research on a range of topics impacting independent retailers in the home improvement channel, the State of Independents Conference also featured panel discussions with retailers from across North America.

“For me, the panels are one of the most valuable parts of the event,” says TJ Comstock of Northwest Hardware, based in Billings, Montana. “The research is great, but I like hearing from other retailers about the challenges they are facing and what they are doing to address them.”

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Insights Into Independents Along with the challenge of finding the right people to run and grow their businesses, retailers, through the research results and at the Conference, expressed concerns over issues such as the increasing amount of online competition as well as the growing burden of taxes and regulations on small businesses.

In fact, the number of retailers mentioning concerns over increasing taxes and regulations as a challenge to growth increased by 5 percent over last year’s study.

“In our area of the country and our county, we are under a new minimum wage law, and we have new regulations specifying that we have to provide one hour of paid vacation for every 40 hours an employee works,” says Dan Harris, State of Independents’ panelist and owner of Palos Heights Ace Hardware in Illinois.

“As small businesses, I just don’t know how much more we can absorb with these kinds of regulations,” he says.

On the other end of the spectrum, retailers in NRHA’s research and at the Conference also shared insights into the biggest opportunities they felt they had to grow their businesses.

When it came to expanding their operations, retailers seem to be focusing on internal opportunities—at least in the short term.

NRHA’s research showed that 23 percent of independent retailers felt adding new products and niches to their existing assortments represented their biggest opportunity for growth.

Over the short-term (one to three years), retailers identified adding new products and niches, refining operational efficiencies and developing stronger teams as the top three pathways to increased success.

For retailers like Smith, this means tweaking the business to attract a younger customer base.

“We really want to focus on making changes to the operation that will help us attract more millennials into our store,” Smith told Conference attendees. “This means looking at what retailers outside of our industry are doing and utilizing those ideas in our own stores.

We can’t have tunnel vision.”

Channel Cooperation In addition to discussion about the challenges and opportunities retailers face, the State of Independents Conference and NRHA research also

looked at independent retailers’ relationships with other channel members—namely manufacturers and distributors.

In this area, NRHA’s research revealed that independent retailers are generally pleased with the support they get from their channel partners, but they still feel there is room for improvement in areas such as communications.

To single out industry partners that independent retailers feel are going above and beyond to meet their needs, NRHA also recognized four manufacturers with Channel Partnership Awards during the State of Independents Conference.

These award winners were selected based on feedback from NRHA research. As part of one of the surveys, independent retailers were simply asked to identify which manufacturers they felt were “best in class when it comes to supporting their success.”

This year’s winners were Stihl Inc., Weber Grills, Benjamin Moore & Co. and Valspar.

For more information about NRHA’s research or the State of Independents Conference, please contact Dan Tratensek directly at DanT@nrha.org.

For more information about the National Hardware Show, go to nationalhardwareshow.com.

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By Melanie Moul, mmoul@nrha.org

Four Generations of Resilience McCoy’s Strategy for Succeeding Through the Depression, the Recession and Beyond

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early a century has passed since McCoy’s Building Supply first opened its doors.

During this time, the Texas-based, family-owned business has seen success and struggle from the Great Depression to the latest recession. Over the past decade or more, the company has focused on maintaining its current success well into the next 90-year streak by investing in its people.

“We’ve been planning very carefully and strategically for the future of McCoy’s,” co-owner Meagan McCoy Jones says.

The company currently employs about 2,300 people across 86 retail stores and two millworks facilities in five states; its headquarters are in San Marcos, Texas. Training has been a priority at both the retail and executive levels. The company’s training and recognition programs are built on its “Business as

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Meagan McCoy Jones, executive vice president and chief operating officer (left), co-owns McCoy’s Building Supply with her family, including her father Brian McCoy (right), who serves as CEO.

UnUsual” philosophy, which celebrates hard work but also appreciates the lives people lead outside work.

A group of McCoy’s staff and business consultants developed a companywide retail training program that focuses on developing relational skills, team building and customer service, among other necessary traits retail employees need to be successful.

Within the last year, McCoy’s also developed a comprehensive 18-month retail management training program. “In essence, we documented everything you need to know at the basic level in order to run a McCoy’s store,” Jones says.

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The company has what Jones calls “really intense mentorship programs” to develop current employees into leadership positions.

Manager trainees have several mentors during training, including their store manager and store associates and at least one other manager in their region.

A few years ago, many of the people entering the management development program were hired from outside McCoy’s, Jones says. Today, more of the management development candidates are tenured McCoy’s team members wanting to contribute more, she says.

“Once you’ve mentored a couple people, I think your confidence appropriately grows to say, ‘You know what, I think I could do that,’” Jones says.

McCoy’s values its executive training process as well, especially in consideration of transitioning the company’s success to a new generation of leadership.

Making Succession Planning a Joy McCoy’s has had the financial stability in recent years to fill executive leadership positions before needs become critical, allowing the company more time to develop employees into greater levels of responsibility.

Executives evaluate any potential holes at the executive and director levels, particularly for positions that don’t have any obvious successors within the company.

“We are carefully thinking about what kind of people and skillsets we need and could benefit from,” she says. “When you’re not in a hurry, you can really find the right person.”

Succession planning can be challenging and fraught with difficult conversation for some retailers, but it doesn’t have to be that way, Jones says.

“Sometimes succession planning is talked about like ‘you’ve got to find your replacement’ and that may be partially true, but that’s not the whole story,” she says. “We are adding value to the lives of other people so they can continue on what we started and make it even better. There’s a lot of joy in that.”

Allowing time for leadership development is crucial to staffers’ success once employees reach their intended positions within the company, Jones says. Executives are trained using the same Business as UnUsual philosophy as retail trainees, but they also receive training in fundamental business skills, which vary depending on the person’s role.

“New executives have time to prove they’re capable of what we think they are, and at the point that they’re promoted to a more senior level, they will have been in the company for five years or 10 years,” she says. “This patient approach to our next generation of leadership is what has allowed us to make it as long as we have.”

Tenure is highly valued throughout McCoy’s.

The average tenure in McCoy’s retail stores is

Emmett McCoy (left) took over McCoy’s from his father and eventually passed the business onto his sons, Mike (center) and Brian (right).

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1940s

eight years, and in the corporate headquarters, it’s more than 12 years, says Jones. The company has created a top-500 list of its most tenured employees called the Fab 500. Currently, the Fab 500 employee with the least tenure still has a little more than 11 years of service with the company.

1970s-1980s 1990s 2000s

The extensive list of long-tenured employees at McCoy’s is second only to the tenure of the company itself.

“I’m a fourth-generation owner. We know we are breaking a lot of odds to get to this place,” Jones says. She currently serves as executive vice president and chief operating officer, and she co-owns McCoy’s Building Supply with her immediate family. Her father, Brian, is the company’s current CEO. Jones’s great-grandfather Frank McCoy started McCoy’s Roofing Company in Galveston, Texas, in 1927. Her grandfather Emmett took over the store when he returned from World War II, adding building supplies to the product mix and establishing McCoy Supply Company.

In September 1961, a massive hurricane and dozens of tornadoes hit the Texas Gulf Coast. The combination of disasters caused millions of dollars of damage. McCoy Supply Company helped Galveston and the surrounding areas rebuild over the next year, but retained its pre-disaster prices.

“In the aftermath of the disasters, Emmett was insistent on not raising prices on the supplies people needed to rebuild,” Jones says. “That practice is a part of McCoy’s legacy in treating customers fairly.”

Following the rebuilding efforts, Emmett expanded the business into a second location in Texas City, Texas. He discontinued the roofing business in 1964 and developed what is now McCoy’s Building Supply. Over the next several decades, the company expanded into dozens more locations throughout the Gulf Coast region.

Emmett ran the business until he retired in 1997, and his sons Brian and Mike McCoy were co-CEOs until Mike retired in 2001.

When they took over in the late 1990s, Brian and Mike recognized the need to establish a comprehensive strategy to ensure McCoy’s could compete against big-box stores in the professional market.

“At the time, we didn’t offer credit or other services typical of a lumberyard that serves builders and contractors, so we weren’t completely a pro lumberyard or completely a hardware retailer,” Jones says.

As part of its modernization strategy in the early 2000s, McCoy’s implemented credit and

1950s-1960s

Sustaining a Legacy

February 2017 | HARDWARE RETAILING

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delivery services and grew its professional sector customer base. The company now employs outside sales representatives to manage professional sector sales. “We earn the business of our professional customers because we can price competitively, and our services are more robust and efficient than big-box stores,” says Jones.

Professional contractors make up about onethird of McCoy’s varied customer base. The other two-thirds of their customer base is split evenly between repair and farm and ranch tradespeople and DIY retail customers. With this model, the company benefits from being able to focus on different sectors when new home construction is slow or if retail isn’t strong in a particular market.

But the focus has always been on ensuring builders of all kinds have access to quality products. McCoy’s developed a purpose statement to hone in on this focus. The new mission is simple: “To make life easier and more fulfilling for those who build.”

Customers are only part of what contributes to McCoy’s success. The people who work for McCoy’s and commit to the mission every day are crucial.

Taking Care of Employees As many independent businesses did, McCoy’s had to cut jobs during the recent recession. But the company has seen a significant rebound over the past several years. Since 2009, McCoy’s has added 600 jobs.

“For all of us who are running businesses in this industry, job creation and being an employer is something we should be really proud of, no matter how many people you’re putting to work,” Jones says. “Ours is an industry that I have a lot of love and admiration for in large part because the people are hardworking and kind, and they care about the community and the work that they do.”

McCoy’s Building Supply values the time and care its employees give to the business, and the company makes every effort to ensure time is used wisely. “We focus on how we can be good stewards of the time and resources we’ve been given, the people who have chosen to work with us and for us and the environment and communities we serve in,” Jones says. “We are asking ourselves, if we care about people and the markets we serve, how do we keep making decisions in light of that?”

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McCoy’s encourages store managers to engage with their communities and initiate philanthropic events that will resonate with their markets, such as blood drives or animal adoption drives. “Our hope is that when you walk into a McCoy’s store, it feels like a local store,” Jones says. “That tone is really set by the manager and their team.”

In support of valuing employees’ time, all McCoy’s stores are closed on Sundays. Changing that has never been a topic of discussion, Jones says. “This was really my grandfather’s decision years and years ago—that our team members needed a reliable day off to be with their families, to worship if they choose and to recharge. And we carry that forward,” she says.

Jones has had the opportunity to work in a wide variety of roles in the company since she was a child, and from those experiences she puts great stock in the people of McCoy’s.

“I’ve had some great bosses here,” she says.

“With each job I’ve had, there have been people who have taken it upon themselves to help me improve. At each hurdle, my gratitude and passion for the work grew. That’s as much, if not more, a credit to the people I’ve gotten to learn from.”

McCoy’s Building Supply store managers and their teams establish atmospheres that appeal to their local communities.

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Leadership Quest Retail Leadership Institute Focuses on the Next Generation

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ne of the key roles of the North American Retail Hardware Association (NRHA) is to bring together independent home improvement retailers, regardless of wholesale affiliation or business size, to share ideas and best practices and foster meaningful connections. NRHA’s unique ability to bring together the resources of channel partners, including retailers, wholesalers and manufacturers, preserves the continued viability and success of the industry’s 35,000 independent hardware stores, home centers and lumberyards.

In 2013, NRHA launched the Retail Leadership Institute to fulfill these initiatives by providing a lineup of high-touch, high-impact, retail-focused programs designed to develop key managers and future retail owners. The reason for developing the institute was simple. Individually, independent retailers (even those with large, multi-unit operations) do not, by themselves, have the resources to build world-class educational and networking programs to develop their key employees.

So, NRHA founded the Retail Leadership Institute

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to serve independent retailers, for the benefit of their operations and the industry.

Today, NRHA continues to add new and innovative programs to the Retail Leadership Institute that will be instrumental in developing future industry leaders.

The programs included in the Retail Leadership Institute are: • The NRHA Retail Management Certification Program, which launched in 2013; • The Retailer Roundtable series, which launched in 2012; • And the Foundations of Leadership Program, which will launch in April 2017, and its associated conference.

All of these programs provide advanced educational and networking opportunities for key managers and owners. NRHA developed the concepts for these programs in response to retailers expressing their need for NRHA to provide the programs to the industry and their commitment to helping develop and support the programs.

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NRHA Retail Management Certification Program

T

he NRHA Retail Management Certification Program is designed to provide retail business owners with an avenue for developing their key employees’ leadership and management skills. The six-month program uses college-level curriculum that was developed in conjunction with Ball State University’s John H. Schnatter Institute for Entrepreneurship and Free Enterprise.

The management training course includes three visits to NRHA’s Indianapolis headquarters over the course of six months for an intensive, interactive learning experience with 15 to 20 students from across North America. Program topics focus on leadership, problem-solving, business strategy, advanced retail operations, project management, financial management and human resources management.

Each student in the program is required to develop a major business improvement project that provides a return on the owner’s or sponsor’s investment in sending the student through the course. To date, the 110 students who have graduated from the program have conservatively returned over $6.5 million to their companies through these projects, either through sales gains or expense reductions.

The ideal candidate for the training program is a retail manager or owner who has a minimum of three years of experience managing a home improvement retail operation.

Management experience is a course prerequisite so students can share their career experiences and successes with classmates in a roundtable-style learning environment.

Students are currently completing the program’s seventh class. NRHA is recruiting for the spring 2017 course, which has the following schedule: • Application deadline: Feb. 28 • Visit 1: April 11-14 • Visit 2: June 13-16 • Visit 3: Aug. 8-11 • Course completion: mid-October 2017 “We have come a long way since the launch of the first class four years ago,” says Scott Wright, executive director of the Retail Leadership Institute. “We have continued to make tweaks to the program since we started. We recently switched university instructional partners to Ball State because we felt they were a perfect fit for the program and for our industry.”

The lead instructor for the program, Rob Mathews, is director of the Schnatter Institute for Entrepreneurship at Ball State and grew up in the hardware business. “Rob’s parents owned and operated hardware stores in central Indiana and southwest Florida. Until last year, Rob owned and operated a home center in Pendleton, Indiana,” Wright says. “He has the university instructional experience focused on helping develop entrepreneurs, as well as practical industry knowledge. We’re very fortunate to have someone with his unique skillset leading the course’s instructional and curriculum design efforts.”

In addition to Ball State, which oversees more than half of the course instruction, NRHA provides and sources training using industry experts in key instructional areas, making the program uniquely focused on needs specific to independent retailers.

Supporting the Cause In 2014, NRHA developed a scholarship program for students attending the NRHA Retail Management Certification Program. To date, 46 students have received half-tuition scholarships totaling $292,000 to attend the program thanks to scholarships from NRHA and the following manufacturers, wholesalers and co-ops: Benjamin Moore & Co., Bernzomatic, Blish-Mize Co., The Bostwick-Braun Company, Do it Best Corp., Fulton, Home Hardware Stores Limited, Hyde Tools Inc., Intertape Polymer Group, MiTek Builder Products, National Hardware Show®, PACOA, PRO Group Inc., Simple Green, Stanley Black & Decker Inc., Trimaco LLC, Wallace Hardware Co. and The Wooster Brush Co.

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NRHA Retailer Roundtables

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aunched in 2012, NRHA’s Retailer Roundtable series continues to grow in scope and in the number of networking events held each year.

The roundtables are structured discussion group meetings where retailers come together to network with other noncompeting retailers. Roundtable groups are organized based on the functional areas and retail core competencies participants share.

Roundtable members commit to meeting annually to discuss their functional areas and learn from others within their group.

“The key to these meetings is that participants agree to confidentiality and complete openness in sharing their successes and best practices,” says Wright, who moderates several of the meetings.

“NRHA assists in forming, moderating and administering the meetings, and meeting agendas are developed by an agenda-planning committee within the group of attendees to ensure that the conversations are relevant and meaningful to attendees.”

Kim Tarrant, human resources manager at Family Farm and Home in Michigan, says meeting to discuss shared issues and best practices is a huge help. “At NRHA’s Human Resources Roundtable, I got different perspectives from a variety of retailers, which provided me with insights for my day-to-day business,” she says.

The current roundtable lineup is listed below: Marketing & Merchandising Roundtable Participants include retail marketing and merchandising professionals. Discussion topics include advertising, marketing, pricing, merchandising, sourcing, technology and online initiatives, new products, loyalty programs, co-ops and competitor monitoring.

CFO Roundtable Participants include chief financial officers and other finance professionals. Discussion topics include finances, operating expense management, employee benefits, compensation, technology, key performance indicators, legal issues, acquisitions and working capital management.

“I got different perspectives from a variety of retailers, which provided me with insights for my day-to-day business.”

—Kim Tarrant, Family Farm and Home

Human Resources/Training Roundtable Participants include human resources and training professionals. Discussion topics include employee incentives, benefits, compensation, technology, training and government regulations.

Young Retailer Roundtable Participants include former NRHA Young Retailer of the Year honorees and nominees.

Discussion topics vary.

CEO Roundtable Participants include presidents or CEOs of large multi-unit home improvement retail chains.

Discussion topics vary.

IT Roundtable Participants include information technology professionals. Discussion topics are various IT-related issues.

Retail Management Certification Program Reunion Roundtable Participants include graduates from NRHA’s Retail Management Certification Program.

Discussion topics focus on updates on students’ business improvement projects.

Women’s Leadership Roundtable Participants include women who are retailers and distribution and manufacturing professionals.

Discussion topics vary.

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NRHA Foundations of Leadership Program T

he latest addition to the Retail Leadership Institute is the Foundations of Leadership Program. The program is being developed by NRHA, Ball State University, STIHL Inc. and a consortium of independent retailers, including Aubuchon Hardware, Buchheit, Friedman’s Home Improvement, Foxworth-Galbraith, Jerry’s Home Improvement, Sunshine Ace Hardware and Wilco Farm Stores.

The program, which will be delivered online, is designed to train next-generation leaders by providing a high-quality, flexible introductory course on key concepts of leadership and personal development.

Topics will include personal assessments, leadership vision and values, problem-solving, communication skills, talent development and team building.

The pilot course is scheduled to launch in early April. Each of the eight modules will be covered in two-week periods and will be administered online using Ball State’s Learning Management System. The culmination of the program will be the NRHA/STIHL Foundations of Leadership Annual Conference, which is scheduled for Aug. 1-3 in Indianapolis. The conference will feature presentations from leadership experts at Ball State University and industry-focused panel discussions. Graduates of the Foundations of Leadership Program, the NRHA Retail Management Certification Program and all former Young Retailer of the Year honorees are welcome to attend for free.

“We are very excited about how this new course and event will serve the mission of NRHA and prepare the next generation of retail leaders in our industry,” Wright says.

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STIHL Named Exclusive Sponsor of NRHA Foundations of Leadership Program In December, the North American Retail Hardware Association (NRHA) and STIHL Inc. announced a partnership and sponsorship at the NRHA 2016 State of Independents Conference in Chicago. STIHL presented NRHA with $100,000 to help fund the NRHA Foundations of Leadership Program. STIHL was also named the exclusive sponsor of the program.

STIHL will also be the exclusive sponsor of the Foundations of Leadership Annual Conference in 2017 and 2018. The 2017 event will take place Aug. 1-3 at NRHA’s headquarters and conference center in Indianapolis.

“We retail our products exclusively through servicing dealers, and hardware retailers are an ever-increasing part of our dealer network,” says Roger Phelps, corporate communications manager for STIHL. “These businesses have always been at the heart of our success, so investing in their future is a perfect fit for our brand.”

“We are proud to be working with STIHL to develop this exciting industry leadership initiative,” says NRHA president

From left to right: Scott Wright, executive director, Retail Leadership Institute, NRHA; Roger Phelps, corporate communications manager, STIHL; and Bill Lee, NRHA president and CEO.

and CEO Bill Lee. “Time and again STIHL has demonstrated its unwavering support for independent retailers, and this is just one more example of how they are taking a stake in the future success of the independent channel. We can’t thank them enough, and we look forward to a long partnership.”

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Hardware Paradise Rural Farm a Mecca for Tool Enthusiasts There are few industries as indelibly linked to the building of North America as farming and hardware.

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HARDWARE RETAILING | February 2017

Some images courtesy of Lone Oaks Farm

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hese two pursuits go hand-in-callousedhand with one another when it comes to forging a new nation. Early pioneers literally bet their lives on their ability to raise cattle and crops, and the tools they used to support these pursuits were indispensable.

Perhaps it is because of this industrial synergy that it is particularly apt to find what is arguably the nation’s largest tool museum tucked away on an idyllic farm in rural Tennessee.

Anyone with links to either farming or hardware should be drawn to this unique location, where both the agriculture and hardware history of the pioneers are honored.

For the average hardware store owner, who carries on the proud tradition of the tool peddlers that came before them, this hidden gem is as much a tribute to their trade as it is a curiosity.

Hardware Retailing recently got the opportunity to visit this beautiful place, and in the following pages we will share some of its breathtaking scenery with you.

The Farm This rolling 1,200 acres of prime pasture, grass and woodlands carries the somewhat beguiling name of Lone Oaks Farm and is located about an hour and half east of Memphis.

Lone Oaks Farm is many things—a working cattle ranch, a corporate retreat, a wedding destination and a place for college students and local youth to study agriculture.

The farm, in its current state, was borne from the minds of developers Scott and Kathy Ledbetter. They originally acquired the property as a rural retreat from their busy lives.

Slowly, they began developing the rough-hewn property into more of a living homage to the rural lifestyle, agriculture and, yes, tools.

The Ledbetters, together with local land management experts and planners, added facilities to the land, developed a road system so the area could be easily traveled and forged a long-term vision for what Lone Oaks Farm could become.

Every tool a hardware junkie could imagine has a place somewhere in the sale barn at Lone Oaks Farm.

In addition to functioning as a working auction center for cattle and a tool museum, the sale barn is also available for corporate functions and meetings. It features a sleeping facility and a full kitchen.

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HARDWARE RETAILING | February 2017

1

2 1. This antique scale arm hangs above the entrance to the sale barn at Lone Oaks Farm and is dated 1776.

2. The sleeping facility located above the main floor of the sale barn is dubbed the “plane room,” and in addition to luxury accommodations also houses a collection of, yes, antique planes.

3. The range of antique tools on display at the Lone Oaks Farm tool museum is truly staggering.

From iron workers’ tools and barrel-making tools to stone-cutting equipment, it is a visual history of the tools that helped forge North America.

4. Most of the tools were originally owned by an employee who collected tools as a hobby. The current owners later purchased the collection from the farmhand’s family.

5. The upper floor of the sale barn houses many of the bench-tools, and everything from jigsaws and coffee grinders to a rope braider can be found on display.

3

4

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Lone Oaks Farm provides a tranquil retreat about an hour and a half east of Memphis.

Several years ago, the Ledbetters sold off the majority of the property to the University of Tennessee Extension, a unit of the school’s Institute for Agriculture. The school was looking for a suitable site for a world-class 4H Center in Western Tennessee. One could hardly imagine a more fitting destination for young people to learn about agriculture than Lone Oaks Farm.

According to the UT Extension website, they see the property becoming “the national model for connecting youth and adults to the land and using the outdoors to encourage a deep appreciation for the land, conservation and agriculture.”

The Tools Every building you walk into at Lone Oaks Farm holds its own set of surprises for visitors. From an antique stained-glass church window that now provides light to poultry in a working chicken coup to the reclaimed wooden floors from a 17th-century church that were used in the Farm’s log cabin, there are discoveries to be made at every turn.

But of all the shrines housed within the facilities at Lone Oaks Farm, by far the most impressive is the tool collection that covers the walls within the “sale barn.”

This sale barn is a working facility where cattle are brought in for auction, but it looks far more like a rustic lodge than any cattle barn.

Honey-colored wood walls provide a fitting backdrop to the panel after panel of tools that dot the walls.

Above the entrance to the facility hangs a scale dated 1776, and that’s just one of the thousands of tools and implements on display.

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HARDWARE RETAILING | February 2017

Electricians’ tools, barrel making tools, cobbling tools, stone cutting tools; every tool a hardware junkie could imagine has a place somewhere in the sale barn at Lone Oaks Farm.

According to the Ledbetters, the tools were originally owned by one of their employees who had a penchant for tool collecting.

He would buy the tools from various sales, and eventually he put them on display panels and traveled around with these panels to show off his collection at various tool and implement shows all around the country, according to Kathy Ledbetter.

When their devoted farmhand passed away, his family wasn’t quite sure what to do with their father’s collection of thousands of tools.

At one point, they even considered selling the pieces off individually on eBay, Kathy says.

That’s when the Ledbetters stepped in and decided to purchase the entire collection and put it on display at Lone Oaks Farm. Here, this tool collector’s life’s work would have a suitable home—a home where it could be shared for generations with visitors passionate about hardware, farming and building.

The tools on display in the sale barn are just part of the collection, though, according to Kathy. The couple is still considering how to show off the other tools that are currently being kept in storage.

For more information about Lone Oaks Farm, please go to www.loneoaksfarm.com or call 731-376-0882.

This Valentine’s Day

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By Chad Husted, chusted@nrha.org

Success Across Generations Ohio Store Builds Toward Future, Maintains Classic Looks

F

rom restored furniture to vintage clothing stores, it’s a hip time to embrace the old. And with a family history and community support behind it, hardware supply company Dwyer Bros. is making the most out of its vintage look and feel.

Founded in 1888 at the same location on the main street of London, Ohio, Dwyer Bros. is now owned by Aaron and Drew Dwyer. They lead a company that has expanded its footprint and offerings as the demands of the modern retail hardware customer has grown. Taking over from their father TJ two years ago, the brothers are the fourth generation to lead what has become an institution in the area for its look as well as the place to grab a hard-to-find item in a pinch.

“We’re in a small area, and the more we can offer, the more we can sell. It all means more inventory,” TJ says. “We do just about everything.

We don’t say no to anybody.”

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HARDWARE RETAILING | February 2017

Dwyer Bros. Hardware owners Aaron Dwyer, left, and Drew Dwyer, right, stand with father and former owner, TJ Dwyer.

Never a No That mantra of customer service and varied products has led to multiple expansions for Dwyer Bros., eventually growing from a small portion of the still-standing original building (which once included a hotel, amongst other businesses) to the current 14,000 square feet of sales space and 5,000 square feet of warehouse space.

Filling that space is a variety of products and services, far more than what a customer might expect after glancing at the sign displaying the store name, which hangs above the door on London’s Main Street. The signage is reminiscent of the original hanging above the same door in the 1890s, hung there by Aaron and Drew’s great-grandfather Thomas J. and his brother Michael.

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Founded in 1888 by Aaron and Drew Dwyer’s great-grandfather, Thomas J., and his brother, Michael, Dwyer Bros. Hardware has steadily expanded to a now 14,000-square-foot salesfloor and a 5,000-square-foot warehouse.

The combination of an old-school look and new-school convenience is not lost on the Dwyers, nor their 23 employees, whom the owners credit with filling multiple roles to accommodate their customers.

“Our staff does nothing but help people.

I don’t care what your job is, if you see someone, go talk to them. Find out what they need and help,” TJ says. “We’ve been lucky thus far, as usually every employee has an expertise. If the person that’s helping doesn’t know what a customer needs, they can find someone who does.”

That ability to fill needs has led to several specific expansions for Dwyer Bros., most noticeably the attached paint store offering a wide variety of Pratt & Lambert paints. That kind of specialty supply helps in supporting the “of course we have that” attitude.

“It just builds the inventory,” Drew says.

Vintage Feel The years may have changed the variety of services and products at Dwyer Bros., but they haven’t altered its appearance too much. If the signs don’t lure a customer in, the original wooden floors or old clippings displayed on the walls will definitely fuel their nostalgia for times gone by.

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HARDWARE RETAILING | February 2017

“We do have a big

inventory, and that’s why we’re successful. We don’t let our old building hold us back from the times, but the building helps us sell it at times.

”

—Aaron Dwyer, Dwyer Bros.

The theme continues throughout Dwyer Bros., with the same vintage sign hanging over the main entrance decorating the paint store door.

It sits right next to a modern sign advertising the store’s paint selection, showing even further the balance the company has achieved between comforts of the past and needs of the future.

However, the Dwyers are quick to dispel the idea that the store is living in that bygone era. The atmosphere of the store might draw in the occasional historian, with the Dwyers often entertaining weekend travelers looking to glimpse the store for themselves, but getting a sale is still the focus.

“I still see people come in on weekends. Most Saturdays I’ll meet someone that drives out to

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see an old hardware store. But we try to keep up with the times,” Aaron says, adding that the vintage feel comes along with a packed house.

“You can’t sell it if you don’t have it,” he says.

“We do have a big inventory, and that’s why we’re successful. We don’t let our old building hold us back from the times, but the building helps us sell it at times.”

Inventory and a classic approach aren’t all of the store’s charm either. It’s also an attitude that a customer’s problems are the store’s problems, and a survey conducted several years back proved to the owners that their approach was what London and the community wanted.

“Our customer base did not want to see us move anywhere. A lot of them were really adamant about it. The old building is just part of our image,” TJ says. “We have people who take the time to show customers how to finish a project or where to find that last item they need.

You don’t get that anywhere else. We’ll fix your problem, and everybody’s happy.”

Fulfilling Area Needs Located roughly half an hour west of Columbus, Ohio, London is near a multitude of

competitive interests. Whether it’s big-box stores or online sites that can put a product on someone’s doorstep the next day, Dwyer Bros. has expanded its offerings to keep up with its competitors.

A large part of that push has been expanding sales from homeowners and individuals to the contractor customer base.

Aaron calls the store a kind of wholesaler for the surrounding community, and it’s a role that has only grown as the needs of its customers have changed.

Specifically, plumbing and electrical have been areas of need for pros that Dwyer Bros. has fulfilled.

“We go very deep into commercial sales in plumbing and electrical,” Aaron says. “We act like our town’s wholesale house in those departments. We’ve broadened our image to be so much more than an old hardware store with vintage wooden floors.”

That attitude of fulfilling the community’s needs is also a driver behind Dwyer Bros.’ newest endeavor: lumber. When an area competitor closed, the London area was left without a local supplier, Aaron says. This was something that the Dwyers didn’t want to see continue. Their answer was to add a lumber

One of the largest expansions for Dwyer Bros. Hardware has been an attached paint store. More recently, the store opened a lumber department after an in-town competitor closed its doors.

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department to fill the need for customers working on smaller projects, as well as common lumber needs.

“To keep people in town, we started a convenience lumberyard. We aren’t out to sell a house package, but it offers a nearby option for most needs,” Aaron says.

“I’ve had contractors thank me for doing it,” TJ says. “Small contractors really got hurt when (the lumberyard) moved.”

Future Projects Given its ever-expanding list of departments and services, Dwyer Bros. is in a unique position to attract the current generation of customers while harkening back to the days of the corner store it used to be.

The next step into the future will be a rewards program through its co-op, Aaron says, which is a move he says he believes is just a logical step in the efforts to keep up with the store’s evergrowing competition.

“I think the rewards program can really boost our sales next year,” he says. “We’re just moving with the times; anything we can give back to customers helps.”

Along with original signage, Dwyer Bros. Hardware keeps its charm with original wood flooring and posted clippings and photos from its history.

February 2017 | HARDWARE RETAILING

99

Newsmakers

Remembering a Legend

Upcoming Events February 10-12 Monroe Hardware Spring 2017 Dealer Market Concord, North Carolina

11-12 Florida Hardware Dealer Market Orlando, Florida

16-18 Orgill Spring Dealer Market New Orleans

17-19 True Value Spring & Rental Reunion Anaheim, California The independent home improvement industry lost a legend with the death of Walter Hachborn (fourth from the right), co-founder of Canada’s Home Hardware.

2-4

W

alter Hachborn, co-founder and former president of Home Hardware Stores Limited, died Dec. 17, 2016, at age 95. Hachborn left a significant mark on the home improvement retailing industry in Canada.

In the early 1950s and 1960s, about 900 independently owned hardware stores closed throughout Canada. At the time, Hachborn co-owned a private hardware wholesale company, and his customers approached him with concerns about the state of the industry. His solution was to establish a retailer-owned independent hardware store company.

Hachborn established seven principles as the core of his new business: the company is retailer-owned; retailers are equal regardless of store size or how many locations; all stores are branded as Home Hardware; retailers work together as a buying organization; the company provides a broad wholesale assortment; the company sells its own private-label paint; and the company promotes strong alliances within the industry.

“I think the brilliance of Walter is that he forged a new way of a dealer-owned company that was different than anything else that was out there,” says Home Hardware CEO Terry Davis. Davis has worked for Home Hardware for nearly 50 years, starting in the distribution center and moving up until becoming CEO in 2014.

One of Hachborn’s strengths was his strong appreciation for self-sufficiency, which may have stemmed from observing the independent nature of the Mennonite community in St. Jacobs, Ontario, where the company is headquartered.

“Even though he wasn’t Mennonite, that culture helped form Walter’s strong do-it-yourself attitude,” Davis says.

Hachborn demonstrated that attitude when Home Hardware’s private-label paint manufacturer announced it was going into retailing in 1979. Hachborn didn’t want to compete against his company’s own manufacturer, so he decided that Home Hardware would make its own paint instead.

Continued on Page 102

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HARDWARE RETAILING | February 2017

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16-18 Ace Hardware Spring 2017 Convention & Exhibits Atlanta

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18-21 International Home + Housewares Show Chicago

April 1-4 Home Hardware Market St. Jacobs, Ontario Find more details about these events and others online at TheRedT.com/calendar.

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Newsmakers

Continued from Page 100

In addition to taking on new business endeavors, Hachborn strongly believed in developing Home Hardware staff and retailers and promoting from within. “Walter felt that you can find people with great attitudes and give them challenges,” Davis says. “He was a big cheerleader for dealers and corporate staff constantly.”

The company has invested in business management and service skills training to ensure equal opportunities for staff and retailers. “We want to continue what Walter started,” Davis says.

Hachborn also prioritized high-quality customer service and maintaining Home Hardware’s reputation throughout Canada. “Customers still want to understand that when they shop, whether it’s online or in store, that they are cared about as a customer. We’re known for our service and we will continue to do everything we can to remain the best in the industry,” Davis says.

“Personal success to him wasn’t anything to do with money or prestige. He was successful if the dealers were successful.

—Terry Davis, Home Hardware CEO

”

Hachborn received dozens of awards and honors throughout his career. For example, he was named the Canadian Hardware Retailer of the Century in 1999, received a Lifetime Achievement Award from the Retail Council of Canada in 2007 and was inducted into the Canadian Business Hall of Fame in 2015. Hachborn appreciated those honors, especially since they came from within the industry, but he was a humble and frugal man, Davis says.

“Personal success to him wasn’t anything to do with money or prestige. He was successful if the dealers were successful,” he says.

When the company was planning a 50th anniversary commemorative book in 2016, Davis knew where he wanted Hachborn to sit for his photo—in his original chair from 1964, which he was still using in his office. “Here’s someone who could have had the fanciest office you could imagine, and he had this ratty old chair that was falling apart. The arms were gone because he kept picking away at them,” Davis says.

“That was good enough for him. Making sure the dealers were taken care of was what he wanted.”

Davis reported directly to Hachborn in the 1980s, and one memory from that time comes back to him often. “Hachborn came into the office one day and put an acorn on my desk and said, ‘Always remember what great things can come from small beginnings,’” Davis says.

Hachborn credited the success of Home Hardware to the retailers and staff. “He was very proud of Home Hardware, but he was proud of all the people and what the dealers accomplished,” Davis says.

Home Hardware CEO Terry Davis (right) remembers the commitment of co-founder and former president Walter Hachborn (left) to ensuring Home Hardware retailers were successful and supported as independent business owners.

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HARDWARE RETAILING | February 2017

Stanley Buying Craftsman Tool Business in $900M Deal Stanley Black & Decker is buying Sears’ iconic Craftsman tool brand in a deal valued at about $900 million.

With the acquisition, Stanley will own the rights to develop, make and sell Craftsman products.

TheRedT.com/stanley-buys-craftsman

Sears Announces 150 Additional Store Closures Sears is planning to close 150 additional Sears and Kmart stores in an attempt to “enhance liquidity and stabilize operating performance,” according to the company. At the end of 2016, Sears had previously announced an upcoming closure of 30 other stores.

TheRedT.com/sears-store-closures

Menards Investigated for Possible Labor Law Violation The National Labor Review Board has filed a labor law violation claim against Menards for classifying its drivers as independent contractors instead of employees. Menards denies the allegations, saying the company has received no complaints from the companies it contracts with to deliver its products to customers.

TheRedT.com/menards-labor-law

J.C. Penney Continues Experimenting in Home Improvement Sector In 2016, J.C. Penney experimented with multiple product categories that compete directly with home improvement retailers. The Texas company began selling heating, ventilation and air conditioning systems in November in test stores in partnership with the manufacturer Trane.

TheRedT.com/jcpenney-sells-hvac

Lowe’s Goal: Triple Ace Hardware’s Canada Presence Lowe’s Canada has plans for expansion that include growing the

Canadian company RONA and roughly tripling Ace Hardware’s store count.

TheRedT.com/lowes-canada-ace

Stanley to Sell Mechanical Security Business in $725M Deal Stanley Black & Decker will sell a majority of its mechanical security business, but will retain its electronic security and automatic doors businesses. The company intends to focus on advanced analytics, cloud solutions and new technologies in its remaining security categories.

TheRedT.com/stanley-sells-security

Ace Hardware Collaborating With The Grommet Ace Hardware and The Grommet, a product-launching platform for innovative consumer products, recently announced a collaboration that brings 20 unique products from 15 local makers into more than 160 Ace Hardware retail stores.

TheRedT.com/ace-grommet

Consultant: Sears, Like Titanic, ‘Looks Set to Sink’ Sears’ third-quarter earnings followed the company’s downward financial trend, inspiring conjecture about the possibility of the company’s demise. Retail consultant Neil Saunders compares the company to the ill-fated oceanliner, Titanic.

TheRedT.com/sears-sinking-ship

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New Law Allows Small Businesses to Offer Health Benefit Small business owners in the U.S. can now get and give a new employee benefit, courtesy of a bill President Barack Obama signed into law. A provision in the 21st Century Cures Act eliminates IRS fines for small businesses that want to offer health reimbursement arrangements to their employees to help cover the cost of insurance premiums.

TheRedT.com/health-benefit

February 2017 | HARDWARE RETAILING

103

Newsmakers

Amazon Has Started Delivering by Drone Amazon made its first successful delivery by unmanned drone to a customer in the U.K. The online retailer has been limited in its drone testing opportunities by the Federal Aviation Administration in the U.S., but the Civil Aviation Authority in the U.K. allowed tests for several months before the first delivery.

TheRedT.com/amazon-drone-delivery

CANADA RONA Conversions, Support for Affiliates All Part of Lowe’s Growth Strategy Starting this spring, Lowe’s Canada plans to convert some of the 40 existing RONA big-box stores to the Lowe’s format, 23 of which are outside Quebec. The conversion of RONA stores within Quebec, meanwhile,

is hampered by systems software conversion, which won’t be resolved any earlier than 2018. However, by 2019, another 17 big-boxes in Quebec are slated for conversion.

BMR Classifies Its Stores With New Banner Options Groupe BMR has unveiled a new marketing strategy for its member dealers. Starting early this year, BMR stores will gradually be segmented into four banners. The aim, says the company, is “to better serve customers” and “position dealers BMR will cover the costs of the conversions for dealers.

Kent Buys Up Central Home Improvements Central Home Improvements, a fixture in Nova Scotia since 1976,

became part of Kent Building Supplies as of Jan. 1. Noting that the company had reached “a crossroads,” founder Steve Smith says “demographics are changing, and with [that] has come greater pressures to invest heavily in infrastructure and technology in order to grow and expand.”

RONA Completes Tree-Planting Project Ahead of Schedule RONA recently announced it has fulfilled its commitment to planting 1 million trees in Alberta’s boreal forests near Slake Lake. The project was initiated in 2011 through Totem Building Supplies. The company was eventually acquired by RONA. The planting commitment was originally scheduled for completion by 2021.

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

AD INDEX Ajax Wire Specialty Co.......................................... 80 www.ajaxwire.com; 855-966-2529

HSI................................................................... 46-47 www.hardwaresuppliers.com; 800-334-5625

NRHA Retail Management Certification Program ..... 97 www.nrharmcp.com

Allway Tools ...................................................... 17, 57 www.allwaytools.com; 800-422-5592

Hy-Ko ....................................................................... 20 www.hy-ko.com; 800-292-0550

NRHA Young Retailer of the Year....................... 105 www.nrha.org/yroty

Brave..................................................................... 81 www.braveproducts.com/HRM; 866-281-4421

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

Old Masters .......................................................... 67 www.myoldmasters.com; 800-747-3436

Caterpillar......................................................... 24-25 www.cat.com; 888-614-4328

Iron & Oak ............................................................... 66 www.ironandoak.com/HRM; 866-281-4509

Orgill Inc. ......................................................108-IBC www.orgill.com; 800-347-2860

Century Brass Plumbing ....................................... 22 www.luminance.us.com; 800-794-0224

Jrco.......................................................................... 34 www.jrcoinc.com/HRM; 866-537-6216

Paladin Data Corporation................................. 19, 63 www.paladinpointofsale.com; 800-725-2346

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

K-CO Products LLC ............................................. 7, 83 www.kco-innovations.com; 949-276-5252

PRO Hardware ................................................. 68-69 www.prohardware.com; 303-792-3000

Char-Broil ............................................................ 103 www.charbroil.com; 866-239-6777

Magna Industries Inc............................. 31, 33, 35, 37 www.magna-insto.com; 800-969-3334

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

Convenience Products .......................................... 36 www.touch-n-foam.com/pest; 800-325-6180

Mars Comfort-Aire..................................................... 5 www.marsdelivers.com

Sears Hometown Store ........................................ 53 www.OwnASearsStore.com

Delta Faucet.................................................... 27, 73 www.deltafaucet.com; 800-345-3358

MAX USA ................................................................ 44 www.maxusacorp.com; 800-223-4293

ShurTech Brands LLC.............................................. 87 www.frogtape.com; 800-321-1733

Diamond Brite....................................................... 30 www.diamondbritepaint.com; 773-254-7600

Maxim...................................................................... 21 www.maximmfg.com/HRM; 888-376-0849

Simpson Strong-Tie Co. Inc. ................................. 49 www.strongtie.com; 800-999-5099

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

Midwest Fastener............................................ 58-59 www.fastenerconnection.com; 800-444-7313

SureCan USA ................................................... 38-39 www.surecanusa.com; 801-827-0500

Dosko ...................................................................... 86 www.dosko.com/HRM; 866-418-0474

Mr. LongArm ........................................................ 32 www.mrlongarm.com; 800-821-3508

True Value....................................................... 11, 13 www.truevaluecompany.com; 888-291-7229

DynaTrap ................................................................ BC www.dynatrap.com; 877-403-8727

National Hardware Show ...................................... 51 www.nationalhardwareshow.com

USP Structural Connectors...................................... 23 www.uspconnectors.com; 800-328-5934

ECI Software Solutions ..................................... 43, 77 www.ecirocksolid.com; 800-588-5128

No-Spill Inc....................................................... 14-15 www.nospill.com; 913-888-9200

Wallace Hardware................................................. 95 www.wallacehardware.com; 800-776-0976

Fiskars ................................................................. 9, 55 www.fiskars.com; 866-348-5661

NRHA All-Industry Conference............................ 101 www.nrhaconference.com

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

Howard Products Inc............................................... 99 www.howardproducts.com; 800-266-9545

NRHA Membership............................................... 93 www.nrha.org/membership

Wooster Brush Company................................ 41, 89 www.woosterbrush.com; 800-392-7246

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

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HARDWARE RETAILING | February 2017

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Last Word

Love and Hardware

T

he February issue of Hardware Retailing seems just the right time for telling a hardware love story.

February is not only the month of Valentine’s Day, but it’s also the month retailers Michael and Jackie Sacks got married in 2006.

The couple’s story starts like this: Jackie interviewed for a job at Round Top Mercantile in Round Top, Texas, when she was 16 years old. On that January day in 2000, her life plans included graduating from high school and becoming a teacher.

She never dreamed she would fall in love with the boss’s son at the home improvement and grocery store or go on to work there for the next 17 years. She just wanted to earn money to buy gas for her pickup truck.

But when Jackie walked into Round Top Mercantile for her job interview, her future husband was leaning against the store counter. Michael Sacks was seven years older, a new college graduate and the owners’ son.

Seventeen years later, Jackie and Michael Sacks are celebrating their 11-year wedding anniversary and own and operate Round Top Mercantile together.

“It was really magic,” Jackie says. “It just happened.”

In the Beginning When Jackie got the job at the store, Michael became one of her supervisors. They didn’t talk much and weren’t friends for nearly two years, Jackie says.

“I had no intentions,” Jackie says. “I didn’t ever really imagine dating the boss’s son. That was kind of off-limits.”

At the time, their work relationship was too distant for them to realize they had many interests in common.

However, in December 2001, Jackie learned they both wanted to attend a high school football playoff game in Houston. As a friendly move, she suggested they go together and bought tickets for the two of them.

Michael and Jackie Sacks, who together own and operate Round Top Mercantile in Round Top, Texas, met at the store in 2000 when Jackie was 16 years old.

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HARDWARE RETAILING | February 2017

“We do our best to portray

professionalism. That’s kind of been our rule from the get-go.

—Jackie Sacks, Round Top Mercantile

”

Michael paid for dinner before the game, and as they talked, they discovered they shared interests beyond football and the store. For example, they both enjoy old-fashioned music, such as German polka, and going dancing. Both of them also wanted to live close to where they grew up.

Michael made the next move, taking Jackie to a Christmas party. Then he went as her date to her high school prom.

“I guess we never said, ‘Hey. Let’s go out.’ It just kind of happened,” Jackie says. “I was still in high school.

I was just the kid who swept the floors and stocked the shelves.”

Her plans changed as Michael became increasingly important in her life. When she graduated from high school, she went with Michael to visit Texas State University and met his former professors. She ended up attending his alma mater and pursuing a business degree instead of teaching.

The couple got married in 2006 and bought Round Top Mercantile from Michael’s parents in 2014.

Not Quite Business as Usual Jackie and Michael set some rules early on that have helped them navigate their overlapping work and personal lives.

Initially, they kept their relationship a secret from customers. However, Michael’s parents weren’t concerned because the pair was committed to keeping their interactions professional at the store.

Jackie and Michael implemented a rule that they wouldn’t publicly display affection for each other at work, and Michael treated Jackie like other employees if she made mistakes.

A professional scolding from Michael could make a date at the end of the day a little less fun, Jackie says.

However, they still prioritize leaving work at the store and keeping their personal lives outside of the business.

That means they don’t talk about personal issues once they walk through the door to work, Jackie says.

“We do our best to portray professionalism. That’s kind of been our rule from the get-go,” she says.

Top: Michael Sacks took Jackie to her high school prom in February 2002.

Middle: Six years after meeting for the first time at Round Top Mercantile, Michael and Jackie married on Feb. 11, 2006.

Bottom: Michael and Jackie Sacks’ two daughters, Rebekah, 6, and Gretchen, 8, help at the store when they aren’t in school.

February 2017 | HARDWARE RETAILING

107

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Orgill’s Retail Right Lawn & Garden Program gives you the products, pricing and support you need to be more profitable in this growing category.

A Growing Opportunity

This ensures that retailers have access to assortments that

The Lawn & Garden category is one of the fastest-growing

meet the unique needs of their markets and offer customers

opportunities for home improvement retailers, which also

breadth of selection and highly competitive price points.

means the category is highly competitive.

A Comprehensive Offering Orgill’s Retail Right Lawn & Garden Program allows you

With thousands of SKUs included in the Retail Right

to differentiate your assortment from other retailers,

program, retailers have access to a complete range

while establishing a dominant market position.

of assortments to meet their customers’ needs in areas such as:

An Integrated Approach

• Lawn Fertilizers

• Plant Food

Unlike traditional programs in this category, Orgill’s Retail

• Grass Seed

• Mulch and Weedblock

Right Lawn & Garden program thoughtfully integrates national,

• Lawn and Garden Chemicals

• Soil and Amendments

regional and private-label brands into its assortments.

• Pest Control

• Spreaders and Applicators

For more information about how Orgill can help you grow your business, contact us today!

1-800-347-2860 ext. 373 • information@orgill.com • www.orgill.com • Orgill, Inc. P.O. Box 140, Memphis TN 38101-0140