Hardware Retailing February 2019 by NHPA

Serving Hardware, Home Center & Building Material Retailers

DISTRIBUTOR PROFILE SERIES

Prepare to Grow How Orgill Helps Lead Its Customers to Success 39 What Your Customers Want From Your Business 55

VOLUME 216 • ISSUE 2 • FEBRUARY 2019 • HARDWARERETAILING.COM

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Orgill Makes Success Personal Reliable Relationship, Sharp Pricing

“Orgill’s people are smart and they care. You can call them any time and they always know who you are.” Bobby Fuller l Fuller & Son Hardware, Arkansas l An Orgill customer since 2002

Why We Like Working With Orgill: • Competitive pricing • Deep discounts and new items at the Dealer Markets • Personal relationships

Watch the video to learn how buying from Orgill makes Fuller & Son more successful!

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

DISTRIBUTOR PROFILE SERIES

ALL-INDUSTRY CONFERENCE May 7-9, 2019 — Las Vegas

Discover. Connect. Grow.

Prepare to Grow How Orgill Helps Lead Its Customers to Success 39 What Your Customers Want From Your Business 55

Join the industry’s most successful retailers for three days of industry insights, networking and thousands of new products at the NRHA All-Industry Conference at the National Hardware Show®.

VOLUME 216 • ISSUE 2 • FEBRUARY 2019 • HARDWARERETAILING.COM

nrhaconference.com

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Serving Hardware, Home Center & Building Material Retailers

Educated employees sell more. Employee training helps grow your bottom line. It also leads to better customer service, lower staff turnover and more confident and productive employees. Invest in your staff to advance their careers and your business.

Train the team. What resources are available to you? NRHA offers a variety of online training courses and tools to help you educate your staff on topics like product knowledge, selling skills, operations and merchandising. We have everything you need, from quick guides to in-depth training programs.

“We do a lot to educate our staff, and it’s so important for business. NRHA is an avenue for that and provides a variety of great resources.” David Dishke | Grand River Home Hardware JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

Are you offering health insurance to employees? In today’s competitive market, providing health benefits can make a big difference to potential employees and could determine whether they accept your job offer or a competitor’s offer.

Stay Competitive

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“We’ve helped so many independent home improvement business owners save money on health insurance with the NRHA plan. The first step is getting a quote. What do you have to lose?” Bob Chiesa | President & CEO | Custom Benefits Insurance Group Inc. FOR MORE INFORMATION, GO TO CBIGI.COM/NRHA-PROGRAM

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Serving Hardware, Home Center & Building Material Retailers

DISTRIBUTOR PROFILE SERIES

Prepare to Grow How Orgill Helps Lead Its Customers to Success 39 What Your Customers Want From Your Business 55

VOLUME 216 • ISSUE 2 • FEBRUARY 2019 • HARDWARERETAILING.COM

ALL-INDUSTRY CONFERENCE May 7-9, 2019 — Las Vegas

Discover. Connect. Grow. Join the industry’s most successful retailers for three days of industry insights, networking and thousands of new products at the NRHA All-Industry Conference at the National Hardware Show®.

nrhaconference.com

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Headquarters Staff

COMING IN MARCH

PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF MARKETING AND COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger

136 N. Delaware St. #200 Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: nrha.org SOCIAL MEDIA LINKS

FEATURES EDITOR Melanie Moul ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber SENIOR DESIGNER Lynnea Chom GRAPHIC DESIGNERS Kelsey Truex Marcel Cornett

@NorthAmericanRetailHardwareAssociation

WEB DEVELOPER Kevin Trehan

@nrha_official

PRODUCTION SERVICES

North American Retail Hardware Association

PRODUCTION MANAGER Nancy A. Vondersaar

@nrha_official

SALES AND PRODUCTION ASSISTANT Freda Creech

HEADQUARTERS STAFF

CIRCULATION

PRESIDENT AND CEO Bob Cutter

CIRCULATION DIRECTOR Richard Jarrett

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan EXECUTIVE COORDINATOR Marci Taschler

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES

MEMBER SERVICES

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

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

SALES/NRHA VENDOR PARTNER

RETAIL OUTREACH COORDINATOR Renee Changnon, 317-275-9442, rchangnon@nrha.org EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

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

STATE AND REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 5000 Woodward Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, OR 97305 (UPS, FedEx); P.O. Box 17819, Salem, OR 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; AK, ID, OR, WA

WEST REGION MANAGER Jon Dawson, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, jdawson@nrha.org NORTHEAST REGION MANAGER Lowell Huffman, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9443, Fax: 317-275-9403, lhuffman@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org BUSINESS DEVELOPMENT MANAGER Brad Lyons, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9424, Fax: 317-275-9403, blyons@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

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 2019 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher.

HARDWARE RETAILING | February 2019

In the March issue, we will continue our distributor profile series by highlighting Ace Hardware. Learn how the co-op is evolving to serve the changing needs of retailers and their customers.

MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 317-275-9403, chris@millermediainc.net

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00.

Growing and Going Strong

DIRECTOR OF SALES Lowell Huffman

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; AR, KS, LA, MO, NE, NM, TX

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

Ace Hardware

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 TJ Comstock, Northwest Hardware LLC, Billings, Montana EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina David Dishke, Grand River Home Hardware, Caledonia, Ontario Steve Fusek, Fusek’s True Value, Indianapolis SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas

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Contents FEBRUARY 2019 | VOLUME 216 | ISSUE 2

78 PROFILE

The Hardware Beat At Harry’s Hardware & The Den in Cabot, Vermont, the cha-ching of cash registers harmonizes with the strum of guitars. Hear from owner Bobby Searles about how he and his co-owners got the idea for The Den. This pub and live music venue is now a must-visit location for tourists and locals alike.

82 PROFILE

Use Your Imagination At the 2018 National Hardware Show®, Matt Woods won the $100,000 Reimagine Retail program to discover what it took. Hear what it took to create a one-of-a-kind shopping experience and what’s next for Woods Hardware.

86 OPERATIONS

DISTRIBUTOR PROFILE

Orgill: A Strategy of Precision

Throughout its 172-year history, Orgill has adapted with the times, focusing on helping retailers in more than 60 countries meet customer needs. Hear from Ron Beal, Orgill chairman and CEO, and other key executives as they talk growth strategies, logistical improvements and more. Plus, learn how Orgill customers are using the company’s Dealer Markets to assist in growing their businesses.

Small Space, Big Possibilities At Kendall’s Ace Hardware locations in Minnesota, owner Kendall Crosby didn’t let a small retail space put a damper on sales. Discover how he transformed a cramped salesfloor into a powerful retail space designed to highlight hardware. Learn his tips to boost your sales per square foot.

Departments

55 RESEARCH

Wisdom of the Ages Ensuring your business caters to every generation is paramount. In this article, get insights from four generations of home improvement shoppers to learn what you can do to capture business from baby boomers, Generation Z and every shopper in between.

62 CATEGORY

Kitchens Flipped Inside Out Outdoor kitchens are becoming increasingly popular. Before the busy remodeling season starts, read this overview of the latest trends in outdoor kitchens to cater to homeowners who want to bring new possibilities to outdoor living spaces. 4

HARDWARE RETAILING | February 2019

72 INDUSTRY EVENTS

Where They’re Growing Gain insight from the 2018 NRHA State of Independents Conference, where retailers, manufacturers and industry observers gathered to discuss where and how independent home improvement businesses have opportunities to grow.

06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 14 . . . . . . . . . . . . . . . . NRHA News 22 . . . . . . . . . . . . . . . . . . . . . Trends 24 . . . . . . . . . . . . . . . New Products 34 . . . . . . . . . . . . . . . . . . Checkouts 88 . . . . . . . . .Newsmakers/Calendar 92 . . . . . . . . . . . . . . . . . . Last Word

On the Cover Taylor Baker, owner of Foothills Hardware & Builders Supply, is using Orgill programs to further his business’s reach. Photo by Adele Gibson

FIRST CHOICE. BEST CHOICE.

BEST OF BOTH WORLDS Some think of Do it Best as the industry leader in hardware distribution and retailing expertise. Others know Do it Best as the co-op that serves the largest and most successful lumber dealers in the country. The fact is, both are correct. Do it Best is the only co-op that serves as a single-source provider while leading the industry in both hardware and LBM. Why do we work so hard to maintain relationships, deliver proven programs and support members with dedicated expertise on both sides of the industry? Because we want to give all members a simpler, streamlined ordering process, backed by strategic purchasing power and sophisticated business strategies. As a result, we offer incredible opportunities for growth, regardless of the types of customers our members serve. It’s an approach that has proven to be just as successful for single-location retailers as it is for large, multi-location businesses. From LBM to Hardware, Do it Best is focused on being the first and best choice in everything we do. “At Do it Best, we want to help growth-minded entrepreneurs serve their customers with outstanding service and unbeatable selection.” — Nick Talarico Vice President of Sales & Business Development

Call us today at 888-DO IT BEST (364-8237). independentsdoitbest.com

On the Web

PROFILE

A Big Imagination Learn more from Matt Woods about the journey from winning the Reimagine Retail program at the 2018 National Hardware Show® to implementing an innovative e-commerce idea at his business at TheRedT.com/woods-rr.

DISTRIBUTOR PROFILE

Operation Orgill With 172 years of experience under its belt, Orgill has seen the ebbs and flows across the independent home improvement market. Visit TheRedT.com/orgill-qa to read our full Q&As with a few Orgill executives and learn about the company’s recent endeavors. See what’s next as Orgill looks forward to excelling in 2019.

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is made for all employees. Visit nrha.org/training to download this month’s lesson, listed below.

The Retailers Behind Orgill Each day, retailers who choose Orgill continue to rely on the distributor to strengthen their operations. After Zarsky Lumber Co. endured damage from Hurricane Harvey in Texas and Grayco Inc. withstood pounding wind and heavy rain from Hurricanes Matthew and Irma, the two retailers found a helping hand from Orgill as they rebuilt.

Grill Time Anyone looking to buy a grill these days has a lot of choices. This month’s Trainer’s Toolbox compares the basic types of outdoor grills on the market today so employees can help shoppers understand all their options.

Clear Skies: As it rebounds from hurricane damage, find out what’s next for Zarsky Lumber Co. at TheRedT.com/zarsky-profile.

New Opportunities: With locations in South Carolina and Georgia, learn why Grayco Inc. partners with Orgill at TheRedT.com/grayco-profile.

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail

HARDWARE RETAILING | February 2019

Why Provide

Screen Repair Services? Big Box Stores Don’t Offer It Increase Store Trafﬁc Increase Margins Opportunity To Promote Other Store Services

Independent Thinking

Budgets? We Don’t Need No Stinking Budgets!

“If you want to ensure you have the money to support your key business objectives, and possibly even create a tool to incentivize your employees, then you definitely want to have a budget.

”

he first time I heard it, I was in junior high. My mom told me, “You have champagne taste on a beer budget.” My first thought was, “Why is my mom talking to me about drinking alcohol when I am 12?” But then it quickly went to, “What in the world is a budget?” In her dumbed-down-for-a-12-year-old form, my mom explained to me that a budget is an estimate of income and expenses for a period of time. It assures people have enough money for future expenditures or things they like to buy. She suggested I do a budget for my allowance, and I quickly realized I spent way too much on Atari games and Bub’s Daddy bubble gum. Since that time, I have always put together a personal budget, and in my career, we’ve always had a budget. In fact, I’m not sure how I could operate without one. By now, you’ve heard me say that some people make money in spite of themselves. If I didn’t have a budget, I feel like I would fall into that category. Look, I get it; perhaps you don’t have a budget. You’re busy, and it is so easy to get bogged down in the day-to-day operations of the business. However, in my opinion, budgeting is one of the most critical tools for business success. Now, my dad taught me that opinions are like armpits: Everyone has a couple, and most of the time, they stink. So, perhaps you don’t agree with me. If you don’t have a budget, then you don’t have controls in place for spending. And with no controls in place for spending, how can you plan? And if you can’t plan, then how do you grow the business? How do you know you can meet long-term goals? How do you make sure you have enough money for future projects? Hint: You don’t, you’re winging it. So, how do you get started? Look, I’m dumb as a fence post, so it doesn’t need to be complicated. If you’ve never done it, start with last year’s numbers as a guide and adjust for inflation and other known items. If you know that economists, wholesalers and distributors are projecting industry revenues to rise 4 to 5 percent next year, then that’s what you should increase last year’s revenue number by to give you a starting budget. Adjust for things you know, like road construction, store remodels or increased hours. So, maybe revenue is flat for your budget, or perhaps it’s up 8 percent, but be as realistic as possible. Go through this same process with cost of goods sold, fixed cost and overhead. Really take time to work on each and every line item to make sure it makes sense. And definitely involve the right people in putting together your budget. At the North American Retail Hardware Association (NRHA), while I do all people-related expenses like salaries and benefits, our department heads are required to put their revenue and expense budgets together because they know their business better than anyone. Once I receive them, if there are any issues, then we talk through them. Finally, there are so many benefits of having a realistic budget to shoot for. It restricts any spending that is not part of the budget. Trust me, and ask any of my colleagues here, I use the excuse many times when someone wants to spend money, “Sorry, it’s not in the budget.” You will learn to love that phrase. It also helps everyone understand the company priorities, and if you compare your actual numbers to your budgeted numbers, it will show you your strengths and weaknesses. If you want to ensure you have the money to support your key business objectives, and possibly even create a tool to incentivize your employees, then you definitely want to have a budget. Believe me, you do need a stinking budget!

David Gowan, Vice President of Finance and Business Services

dgowan@nrha.org

HARDWARE RETAILING | February 2019

Color is transformative. It inspires. It soothes. It excites. But, it’s not art until it’s had a proper shake and mix—that’s where we come in. The only way to ensure a proper paint job is to shake it up with the best—a Radia machine. Your customers deserve that. From paint chip to “WOW” on the wall.

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Taking Care of Business

Technical Realities

“Consider whether you are truly embracing how technology can help your operation better connect with today’s consumers.

”

y granddaughter turned two this month. In all regards she is pretty much like every other happy, healthy two-year old. She loves fruit snacks and Moana, and she destroys just about everything she comes in contact with. (I don’t want to tell you about the things we have found under our couch cushions.) There is one other thing she does that I would guess is like most other toddlers these days. Just about every night, after she’s finished her dinner and taken her bath, she wants one thing before storytime and bed—the red iPad. On one hand, it’s truly amazing to see a two-year-old able to power up and whip through applications to find the videos she wants to watch or games she wants to play while I literally struggle to turn the ringer on and off on my phone. On the other hand, it is a bit startling the role technology plays in everyone’s lives these days to the point where someone as young as Carter seamlessly interacts with personal electronic devices. I’m not going to spend any time debating whether the influence of technology on our lives is good, bad or somewhere in between. We could most certainly discuss that for hours. What I am going to do is point out the fact that a reliance on technology is just one of the realities we must address if we want our businesses to have any relevance in the future. In this month’s issue, we take a look at the different generations and share some insights into how they shop and what role independent retailers can play in that regard. While I don’t even know what Carter’s generation will be called yet, I do know that technology is impacting the shopping habits of baby boomers, millennials, generation Xers and Generation Z. So what can we do about all of this? The first step is accepting it and understanding it. All too often, I talk to independent home improvement retailers who intentionally shy away from technology because they say they want to create a feeling of that “old-time store.” But this view is so short-sighted. It is OK, and in many cases the right thing to do, to create an in-store environment that is built around nostalgia. That doesn’t mean you can’t find ways to use technology to promote your business, communicate with your customers and share your unique old-time store environment with the widest audience possible. In this issue, we also profile two different hardware operations doing truly unique things, and both are utilizing technology in different ways. First, we look at Woods Hardware in Ohio, where the owners are creating a virtual showroom for customers to browse through the entire store online. We also stop by Harry’s Hardware in Vermont, where they have created The Den, a music venue, in their store. While Harry’s is a pretty traditional hardware store, their website promoting their uniqueness is top-notch. These operations have fairly traditional in-store experiences, but they are both using technology to differentiate or promote their operations. They understand that technology is a tool to augment their operations, not fundamentally change them. I encourage you to read through these articles and consider whether you are truly embracing how technology can help your operation better connect with today’s consumers. While you are doing that, I might just give one more check under my couch cushions.

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | February 2019

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CUSTOMER SUCCESS STORY

MUUS LUMBER & HARDWARE Transition from Epicor to RockSolid MAX POS Software Adds Ease, Simplicity, and Real-Time Information

it didn’t take Steve too long to find one: RockSolid MAX® POS software for lumber and hardware stores from ECi Software Solutions.

BEFORE SWITCHING TO ROCKSOLID MAX POS IN AUGUST 2018, MUUS HAD BEEN A LONG-TIME EPICOR HOUSE

The dollars and cents involved made a compelling case for RockSolid MAX just by themselves. Steve’s monthly support fee was practically cut in half when he moved to RockSolid MAX. And the one-time conversion fee was significantly less than what Epicor was going to charge for the new system they said Muus needed.

f you’re still using an Epicor system to run your business, you might just want to spend a few minutes with Steve Heidrich, owner of Muus Lumber and Hardware in Minot, North Dakota.

The company bought its first Epicor system in 1994 and since then, Steve admitted that the amount of money he spent on upgrades alone was oppressive to his business. Upgrades had always been costly with Epicor but in recent years, he reports, the cost of ownership at Muus had climbed to the point where Steve finally decided enough was enough. “With Epicor, our monthly support fee just kept going up and up and we were also getting hit more and more with additional fees because what we were asking for wasn’t covered anyway,” he recalls. “I already had a significant monthly support payment, and then they told me what we had was too old and needed to be replaced with a costly new system!”

WHEN COSTS RISE FAR ABOVE BENEFITS, IT’S TIME TO TRANSITION TO A NEW ERP For any small business owner, it’s always tempting to stay with what you know, particularly on the technology front. But for Steve and his team, the cost and the hassle of working with Epicor just got too much and they started looking for a better option. Not surprisingly,

THE BUSINESS ACHIEVED ROI FROM THE WORDS “GO LIVE” “When we made the switch to RockSolid MAX, I probably got my money back the moment I turned it on,” says Steve happily. And, he adds, when the Muus team made that switch, they did so in a way that was totally transparent to customers and that came with the absolute minimum of stress. “When we were gearing up for the move to RockSolid MAX, our support person directed us to their online video training library to help us get ready,” Steve recalls. “The library features a series of presentations on various aspects of the program. And because it’s all online, it’s easy to work through them and get up to speed on your own schedule.” The result according to Steve: The Muus team hit the ground running with RockSolid MAX on their go-live day problem-free. And once the team was live? “We had been Epicor users for so long that we really didn’t know what we had been missing out on all that time,” Steve says.

A lot of what he and the rest of his team had been missing—in addition to all the hard-earned dollars they were sending Epicor’s way—can be summed up in three of the most important benefits Muus gained when they switched to RockSolid MAX: greater ease of use, increased flexibility, and 24/7 access to detailed, real-time information on just what was happening in the business.

A NATURAL, INTUITIVE WINDOWS-BASED SYSTEM ENABLES EVERYONE TO HIT THE GROUND RUNNING “Unlike Epicor, RockSolid MAX is a true Windowsbased system,” explains Steve. “Everything works the way Windows is supposed to work, the dropdowns and searches all work like they’re supposed to work, and that makes everything so much easier,” he says. “If you wanted a report with Epicor, you either needed someone on your staff with special training or you had to pay for one of the Epicor technical support people to build the report for you,” he says. “With RockSolid MAX, you just go to the reports menu, click on the one you want and it’s right there. And not only is it so much easier to get your reports from RockSolid MAX than Epicor, but you’re also seeing real-time information and that can make a big difference.”

WHEN SOFTWARE IS DESIGNED BY HARDWARE STORE VETERANS, THE DIFFERENCE IS EASY TO SEE As an example, Steve cites the way RockSolid handles special orders. “If somebody was working on a special order in Epicor, the cost of the product would be kept from the last time we had placed an order for that product,” he explains. “The price may have gone up or down since then but that wouldn’t be reflected in the system and that made for real problems when we paid our sales rep his commission on the sale. With RockSolid, it updates our cost information on the special order as soon as we receive it so we get a true profit number on that sale. That has been huge for us—particularly these days when prices are changing so dramatically.” Steve also gives RockSolid MAX kudos for its powerful search capabilities. “We sell Regal Railing and Benjamin Moore’s Regal Select paint line,” he explains. “With Epicor, if you did a search for either of them, you’d get items from both manufacturers and you’d have to visually sort through all of them to find the product you were looking for. With RockSolid, all you have to do is create two keywords, ‘Regal Railing’ and ‘Regal Paint,’ and any future searches will generate exactly what you want to see and nothing more.” For more RockSolid MAX success stories, visit: https://www2.ecisolutions.com/rocksolidmax-stories

GET ADVANCED TECHNOLOGY WITHOUT BREAKING THE BANK! RockSolid MAX® cloud-based software for hardware stores and home centers, can transform your business without a huge upfront investment. Get cutting-edge technology, at an affordable, fixed monthly price—no servers or special equipment needed. UPGRADE YOUR BUSINESS. SIMPLIFY YOUR BILL. www.ECiSolutions.com/RockSolidMAX

RockSolidMAXInfo@ECiSolutions.com

800.588.5128

NRHA News

Words From Young Retailer of the Year Honorees

or 23 years and counting, the North American Retail Hardware Association’s (NRHA) Young Retailer of the Year program has cast a spotlight on the skills and successes of the industry’s young leaders. Nominations for the 2019 program are now being accepted. Honorees benefit by joining a network of progressive retailers, enjoying industry recognition and exclusive educational opportunities. To nominate an inspiring and forward-thinking young retailer, visit nrha.org/yroty. Don’t delay—all nominations are due by Feb. 28. Before you meet the next crop of retail leaders finding new ways to push the industry forward each day,

“Like many of you, I live in small-town America. You understand how a hardware store is a cornerstone business in a small town. I provide tools for my community to build and grow, and in return, my community gives me support through their patronage.”

Megan Zarbano Owner, Handy Hardware & Rental Valley City, North Dakota

“I’m blessed to have the opportunity to be honored as a Young Retailer of the Year. I’m living my dream—we’re five stores now, and I want six more, 10 more, as many as my wife will let me have.”

Byron Clouse Owner, Lewiston Ace Hardware Lewiston, Michigan

HARDWARE RETAILING | February 2019

take a look back at a few of the members of the 2018 class of Young Retailer of the Year honorees. From California to Nova Scotia and points in between, the 2018 honorees clearly demonstrated the power and potential of the independent channel. They increased sales and introduced new programs for customers and also found new ways to expand their businesses. The 2018 Young Retailer of the Year Honorees took the independent home improvement channel in new, exciting directions that continue to inspire the industry. To learn more about last year’s honorees and their achievements, visit TheRedT.com/yroty-2018.

“This industry has no shortage of its unique challenges and obstacles. They can be overcome with grit and determination. We find that with a clear vision and focusing on the relationship with all parties involved, the opportunity for success can be achieved.”

Sean Angelo General Manager, Budget Home Supply Longmont, Colorado

“I really hope to see more and more young people move into this industry. I know there are a lot of other job opportunities out there, but there’s something really special about the hardware industry specifically.”

Diana Newton Vice President, Bay Hardware Seal Beach, California

NRHA News

5 Financial Figures Every Retailer Should Know

ow comfortable are you with understanding the metrics and figures used in your business’s accounting files and financial statements? If you have trouble differentiating your defensive interval from your EBIT, you’re definitely not alone. Take a moment to review five key figures that can help you take control of your operation’s finances.

For more financial information you can use to benchmark your business, dive into the 2018 Cost of Doing Business Study at nrha.org/codb. This annual resource provides an overview of the facts and figures retailers can use to compare their business to typical and high-profit counterparts. Review upcoming issues of Hardware Retailing for information on contributing to the 2019 Cost of Doing Business Study.

Reviewing Key Financial Terms Net Operating Profits This figure represents the money you put in your pocket every month and provides a clear way to measure the overall health of your operation. The typical hardware store’s net operating profit in 2018 was 3.6 percent, while high-performance operations saw a 9.1 percent rate.

Gross Margin Return on Investment This figure reveals how much money you earn for each dollar you invest and is a great way to evaluate products, categories or your overall inventory. Any figure above 100 means you are earning more than you have invested. Average hardware stores last year saw a rate of 169.5 percent, while high-profit stores observed 194.3 percent.

Transaction Size Even incremental increases in this metric can lead to better overall performance. Increasing the average transaction size at your operation is one of the most direct ways to boost profits. According to last year’s research, typical hardware stores saw $22 per customer, and high-profit stores sold $23 per customer.

Payroll Expense Your operation’s payroll expenses are likely one of its biggest expenditures. Because of its overall size, even small changes in payroll can have a major impact on your operation. The average hardware store’s payroll expense was nearly 22 percent in 2018, and high-profit stores observed a rate of 18.7 percent.

Customer Counts This figure represents how successful your marketing and advertising efforts are in drawing new customers to your business. Observing customer counts gives you the information you need to better manage other aspects of your business.

HARDWARE RETAILING | February 2019

March 26–28, 2019

myace.com • 630-990-6900 myace@acehardware.com TXT

NRHA News

NRHA Launches New Products E-Newsletter

oming this month, NRHA will be delivering a new e-newsletter featuring the latest home improvement products and trends. Hot Products Hub, produced by Hardware Retailing magazine and the National Hardware Show®, will deliver 10 to 12 new products across all hardlines categories every two weeks. In addition to specific products, the newsletter will also feature trends stories to keep you current on what’s happening in the home improvement world. According to research NRHA recently conducted, retailers reported adding new categories and new niche products as two of their top three growth opportunities in the short and long term. Hot Products Hub is a simple, free solution to help retailers achieve that goal and grow their businesses. The newsletter complements to the New Products section that you already see in Hardware Retailing magazine.

“Hot Products Hub will

provide insights into the products and trends that independent retailers need to be aware of in order to compete in today’s market. —Dan Tratensek, NRHA

”

This newsletter offers you the opportunity to potentially discover hundreds of new products over the course of the year. “Hot Products Hub will provide insights into the products and trends that independent retailers need to be aware of in order to compete in today’s market,” says NRHA executive vice president and Hardware Retailing publisher Dan Tratensek. “We’re excited to be able to deliver this information for free because of support from industry partners like the National Hardware Show.” Visit TheRedT.com/subscribe to sign up to receive Hot Products Hub in your inbox. With this new resource, you can increase your operation’s opportunities to bring innovative new products to your customers and explore new avenues.

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February 2019 | HARDWARE RETAILING

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Trends Returns and the Customer Service Experience The weeks and months after the winter holidays tend to be heavy on returns—and retailers’ return policies can greatly impact future customer loyalty. Retailers, on average, expect 11 percent of their 2018 annual sales to be returned, the National Retail Federation reports. More than 70 percent of consumers say a positive experience when making a return impacts their future shopping habits, according to recent research from Optoro, a U.S. technology company. Optoro works with retailers to help reduce financial losses due to returns and excess inventory. The Optoro research also shows that customers value flexible return policies and may change where they shop if they think a return policy is too rigid.

Applied to Retail Like every other interaction with a shopper, a return provides retailers an important customer service opportunity. Consider how you can make the return experience positive, even if a customer’s request seems unreasonable. To satisfy a customer making a return, look for ways to offer in-store credit for items you might not normally take back. For example, having an equipment rental department may give you some flexibility. If a frustrated customer wants to return a used power tool, you could accept the return, give store credit and then use the tool in the rental department.

The Impact of Returns

58% of shoppers say a retailer’s return policy impacts their decision-making when they consider online purchases.

$380 billion in products is how much Optoro estimates Americans return annually.

Source: State of Retail Returns 2018: Insights on the Returns Industry, Optoro 22

HARDWARE RETAILING | February 2019

71% of consumers say a good experience returning a product encourages them to be repeat shoppers.

TOUCHSCREEN. REDEFINED FOREVER. IRONCLAD’S PROPRIETARY TOUCHSCREEN TECHNOLOGY IS INTEGRATED INTO THE FABRIC OF OUR GLOVES. THIS MEANS THAT UNLIKE OTHER GLOVES, OUR TOUCHSCREEN WON’T WEAR OR WASH OUT FOR THE LIFE OF THE GLOVE. YOUR HANDS ARE EXTREMELY IMPORTANT. DEMAND THE BEST. DEMAND IRONCLAD. LEARN MORE AT: IRONCLAD.com BVA VISIT US AT: WORLDWIDE • SHOT SHOW • EMERY WATERHOUSE • ORGILL • ACE • TRUE VALUE • DO IT BEST NATIONAL HARDWARE SHOW

New Products

“LockNLube does a great

job of merchandising grease couplers for add-on sales. We place them by the register and they fly out the doors.

”

—Al Behselich, Pittsville Farm and Home Center

“The quality of Ironclad gloves

drew us along with their price point. We had lightweight gloves, but these offer a lot of dexterity while also providing more protection.

”

—Gregg Collins, S.W. Collins

1. Grease Coupler

2. Safety Gloves

The LockNLube Grease Coupler is rated to over 10,000 PSI and will not leak or pop off. The 1/8-inch NPT connection works with all grease guns and four steel jaws can adjust to any grease fittings. The Grease Coupler is also rebuildable, adding to its longevity.

The Limitless Leather™ Impact Driver Glove has proprietary 360-degree cut resistance, patented impact protection and newly patented technology that increases visibility and hand safety awareness. The leather won’t dry or shrink when washed, while Kevlar® stitching increases the lifespan of the glove, resulting in a long-lasting, cost-saving hand safety solution for almost any industrial site.

LockNLube 603-795-2298 or locknlube.com

Ironclad Performance Wear 844-200-5664 or ironclad.com

HARDWARE RETAILING | February 2019

Retailer Picks These four products were selected by retailers like you! Share your favorite products by contacting Chad Husted at chusted@nrha.org.

“The HomeRight Spray Shelters are great. I only wish I had gotten one earlier so I didn’t have to look at my now tie-dyed garage floor after a project. It easily folds up when not in use, so it doesn’t take up much space at all.

”

— Grant Umber, Umber’s Do it Best Hardware

“The Power Pro One screws

offer great versatility for builders working with different materials. The packaging is also beneficial. You can grab a few screws for a job and not buy such a large quantity. —Sandy Hess, Merickel Lumber

”

3. Spray Shelter

4. Multi-Material Screw

The Spray Shelter is a tent-like structure that provides a safe area to spray paint or stain. It can be used with aerosol cans, airless paint sprayers or HVLP sprayers. The curved, three-sided design helps direct paint and stain overspray toward the ground instead of floating back at the user or onto surrounding areas. Exhaust vents are located along the bottom perimeter of the Spray Shelter to increase airflow.

Power Pro One screws are developed to outperform and replace standard wood, sheet metal and concrete/masonry screws. Power Pro One screws come in interior and exterior varieties with multiple head options. Common applications for the interior wafer head screw include cabinet installation, low-profile applications and where a wide bearing surface is required.

HomeRight 763-780-5115 or homeright.com

The Hillman Group 800-800-4900 or hillmangroup.com

February 2019 | HARDWARE RETAILING

New Products

6 5. Heated Hoses PIRIT Heated Hoses come in 12-, 25-, 50- and 100-foot varieties and are electrically heated to prevent the liquid inside from freezing. The inner surface is made with food-grade PVC materials approved by the FDA for potable water. They have nickel-plated brass fittings and draw 180 watts. Sykes Hollow Innovations 802-549-4671 or pirithose.com

6. Woven Storage Baskets The 4WV Series of woven nylon baskets can be used in 15- and 18-inch base cabinets and are available with natural maple or walnut side-mount rails. Each basket is easy to clean and removable with built-in handles. The baskets are installed with four screws and come with one machine-washable canvas liner. Rev-A-Shelf 502-499-5835 or rev-a-shelf.com

HARDWARE RETAILING | February 2019

8 7

Cutting Board Cleaner

7. Seed Coat Soil Moist Seed Coat is a crosslinked polyacrylate and graphite compound designed to increase the germination of grass and other types of seeds. The polymer compound retains moisture from water and humid air which softens the seed’s tissue to promote faster germination. Using 8 ounces of Seed Coat material treats 50 pounds of grass seed. JRM Chemical 800-962-4010 or soilmoist.com

8. Extension Cord Connector ShurePlug Cord Connector maintains a positive connection between two cords. Its low-profile design adapts to any size plug and maneuvers around obstacles. ShurePlug eliminates frayed cords, adds zero weight, absorbs up to 50 pounds of pull pressure and remains fixed to the extension cord. They can be used anywhere an electric extension cord is needed. Arcane 540-760-5411 or shureplug.com

• Specially designed to clean wood cutting boards - No harsh chemicals that can weaken wood fibers • Great for cleaning and preparing wood surfaces before applying Cutting Board Oil or Butcher Block Conditioner • Cleans and neutralizes odors on well-used cutting surfaces and wooden utensils • Safe to use on any wood surface that may come into contact with food • Helps to maintain your wooden kitchen items to keep them looking great and lasting for years • Freshens and cleans wood surfaces with real coconut soap and lemon oil

Cutting Board Oil

• A deep penetrating 100% Pure USP Food Grade Oil that is tasteless, odorless, colorless, and will never go rancid • Rejuvenates dry wood, including: cutting boards, butcher blocks, countertops, wooden bowls and utensils • Perfect for the initial “oiling” or “seasoning” of cutting boards and butcher blocks • Made in USA with strict quality controls – No contact with nuts, gluten or other potentially allergenic materials

Butcher Block Conditioner

• Butcher Block Conditioner is a revitalizing blend of beeswax, Brazilian carnauba wax, and pure USP Food Grade Mineral Oil (that exceeds U.S. FDA regulations for direct and indirect contact with food) • Ideal for conditioning and maintaining all wooden butcher blocks, cutting boards, wooden bowls, and utensils • Helps to rejuvenate the wood, prevent drying, and even repair knife marks in the wood • Regular use helps season and protect the wood by keeping the mineral oil in and the moisture out • The mineral oil used • Made in USA with strict quality controls ~ Available Through Most Co-Ops and Distributors ~ For Wholesale Pricing Call Howard Products, Inc. 800.266.9545 Or Visit Our Website www.HowardProducts.com February 2019 | HARDWARE RETAILING

New Products

10 Professional Grade Grease Guns A Grease Gun Designed to Suit Every Application!

9. Outdoor Coffee Brewing Set The Collapsible JavaDrip’s expanding silicone cone brews fresh, delicious coffee and collapses to a 1-inch disc for travel. Users set the filter above a container, add any brand of disposable filter, spoon in grounds and add water for coffee. The adjustable ceramic burr grinder allows for customized coffee grounds. It has a foldable handle and nests to conserve packing space. GSI Outdoors 800-704-4474 or gsioutdoors.com

10. Decorative Lawn Artwork Cazador-del-sol® is made from a designed acrylic material with fluorescent substances. Depending on its proximity to a light source and how bright the light is, the discs appear to glow in the dark. Cazador-del-sol discs are 6 inches in diameter and come in three colors— yellow, red and green.

WORLD’S BEST Quick Release Grease Couplers

Lumax.com 28

Cazador-del-sol 973-607-3153 or cazador-del-sol.com

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HARDWARE RETAILING | February 2019

844.660.6876

12 11. Battery-Powered Multitool The LED Multi Tool is a rechargeable multitool that, in addition to being a 13-in-1 tool, also features an LED light and USB charging port. Other features include long-nose and bent-nose pliers, wire cutters, saw, rope cutter, knife blade as well as four screw bit pieces and a hammer. A nylon pouch provides storage for carrying. Mayhew Tools 800-872-0037 or mayhew.com

12. Large Container Dolly Potwheelz are designed to pick up pots and other large, unwieldly items for easy transportation. They reduce the risk of injury to users as well as the risk of damage to pots and plants while allowing a single user to move items more efficiently. The no-flat tires keep Potwheelz from being damaged, and the handle tilts for storage. They are available in standard and industrial versions. Global Energy Specialists 844-393-6559 or potwheelz.com

limitless options. same-day shipping. Baldwin is about creating a signature look that seamlessly blends hardware with a style unique to the homeowner. No limits. No boundaries. HSI offers products from each of Baldwin’s three portfolios with same-day shipping and no minimum order requirements. A world of customization, just a phone call away. Offer your customers more with Baldwin from HSI.

Estate • Reserve • Prestige

The Residential Hardware Experts

800-334-5625 | www.sld-hsi.com February 2019 | HARDWARE RETAILING

New Products

13. Garden Decorations

15. Ready-Made Hedges

The Blob House® brand by artist Gesine Kratzner consists of funky characters in varying sizes that hold tillandsia (air plants) and succulents in small sizes and larger flowers or plants in the larger pieces. Blob House® planters and statuary are funny, quirky, slightly irreverent and can boost add-on sales.

InstantHedge is designed to have ready-to-go hedges available without waiting years for them to grow to the appropriate height. Each InstantHedge is an evergreen or deciduous hedge sold in panels that have been pruned multiple times each year using GPS tracking equipment to provide extraordinary density. The hedges arrive on-site in biodegradable cardboard containers or traditional pots ready to plant.

Georgetown Home and Garden 877-213-6279 or georgetownusa.com

14. Furniture Feet Protectors Clear Sleeve™ Floor Protectors prevent damage normally caused by moving furniture across hard flooring. The transparent, flexible sleeve forms to the size and shape of chair or table legs, eliminating the need for adhesive. The cushioned felt tip lasts longer than standard felt pads, dampens noise and distributes weight evenly for better furniture wear. Available in both brown and beige tips. Expanded Technologies 888-654-7720 ext. 104 or expandedtechnologies.com

HARDWARE RETAILING | February 2019

InstantHedge 503-587-0102 or instanthedge.com

16. Adhesize Tape The DuPont™ FlexWrap™ EZ is a flexible adhesive tape that creates a seal when installed around penetrations of all different shapes and sizes. It is an easily installed solution to reduce the small air leaks and improve the energy efficiency and durability in residential and commercial buildings. It comes packaged in ready-to-use 2 ¾-inch wide and 15-foot long rolls. DuPont dupont.com

17. Deer Attractant Odin’s Innovations™ Deer Attractant is made from a biodegradable polymer that absorbs large amounts of liquid scents. It includes natural fibers to provide outdoor color and texture, making the attractant almost invisible when dispersed on the ground. The pellets retain their scent over an extended period and through heavy dew and rain. They are also biodegradable.

American Made & Profitable For Over 80 Years

Odin’s Innovations odinsinnovations.com

18. Hard-Sided Hunting Shelters Lazyman Outdoors offers a variety of hunting shelters which can be assembled or bought fully constructed. The shelters offer both gun- and bow-oriented windows and sizes ranging from solo shelters to versions capable of housing multiple hunters. They can be attached to a variety of bases. Lazy Man Outdoors 501-681-6629 or mylazymanstands.com

With a variety of clearly marked spring assortments, Ajax offers your customers ease of selection for their specific needs. Each assortment comes in their own unique case. Our storage cabinets and kits, provide assortments of Steel Lock, Brass Lock, Music Wire, Stainless Steel, Extension, Compression and more, each making dispensing efficient and economical. Ask for our Product Catalog which provides product descriptions and size specifications.

Toll Free: 855-966-AJAX (2529) www.ajaxwire.com ajaxwire@aol.com 119 Bloomingdale Road, Hicksville, NY 11801

February 2019 | HARDWARE RETAILING

“With multiple store locations and diverse markets, the demands of our business take us in so many directions everyday. Whatever the needs of our business, I know I can depend on the partnership and the expertise of the Midwest Fastener team.” - Stephanie Bland - Merchant, Central Network Retail Group

Exceeding Expectations. One Fastener Destination at a Time!

pictured left to right: Devon Targgart – Midwest Fastener Sales Representative Stephanie Bland - Merchant, Central Network Retail Group Robert Williams- Regional Vice President, Marvin’s David Positano - District Manager, Marvin’s

For your very own fastener destination, contact Glen @ 800-444-7313 x 120

800.444.7313

fastenerconnection.com

Checkouts COMMUNITY RELATIONS

Retailer Trio Tops the Radio Charts

ot every retailer gets an audience of a few million consumers at once. But that’s just a regular Saturday morning for Andy Amrhein, owner of Evey True Value Hardware in Bethel Park, Pennsylvania. For more than 25 years, every Saturday morning from 10 to 11, Amrhein sidles up to the microphone in the KDKA studio in Pittsburgh to help callers with their home improvement questions. Most Saturdays, he’s joined by his co-hosts, Mike Broniszewski, owner of Sarver True Value Hardware in Sarver, Pennsylvania, and Ed Pfeifer, owner of Pfeifer Hardware & Supply in Mars, Pennsylvania. The True Value Home Improvement Hour is a mixture of conversation about seasonal home improvement projects, discussions of new products and answers to questions for those who call in. According to KDKA, the show can have as many as 4 million listeners on any given Saturday, in 22 states across the east coast and Midwest, making it one of the

station’s most listened-to shows. Recently, Amrhein started streaming the show on his store’s Facebook page and posting podcasts of the show, which has brought in thousands more listeners and allowed him to reach anyone in the world. “We’ve been on the same station for more than 20 years, which is unusual for a call-in show,” says Amrhein. “That has given us a huge amount of credibility as being the experts in the industry.” What do the three retailers do with that fame? The show drives a lot of business to their stores, says Amrhein. But with such a broad reach, he has a much larger purpose. “The bottom line here is that we are promoting independent hardware stores and telling consumers about the expert service and advice they can get from the independent retailer,” he says. “This has been a great way to promote the strength of the True Value name, which helps stores all across our listening area.”

The True Value Home Improvement Hour gives Andy Amrhein (front) of Evey True Value, Ed Pfeifer (left) of Pfeifer Hardware & Supply and Ed Broniszewski of Sarver True Value Hardware a chance to share their hardware expertise with a wide audience.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Contact Melanie Moul at mmoul@nrha.org to have your story considered for publication.

HARDWARE RETAILING | February 2019

Checkouts

SOCIAL MEDIA

Like-a-Thon Is Trending at Turkstra Lumber

t Turkstra Lumber, a business with 11 locations around Ontario, Canada, the familiar telethon got a makeover. Last October, Mitch MacLellan, social media and marketing director, and Jamie Crickmore, manager of the company’s trim and door division, sat down in front of a camera for their first-ever Like-a-Thon. For about an hour and a half, MacLellan and Crickmore livestreamed their Like-a-Thon on the company’s Facebook page. They had a table full of prizes, such as store gift cards and tickets to a local sports game. Whenever they reached a pre-determined number of likes (usually every 5 to 10 minutes) they gave away another prize. Winners were chosen at random from those commenting on the company’s Facebook page during the event. MacLellan and Crickmore used the event to talk about Turkstra Lumber’s current sales promotions and services. “We were very pleased with the way it turned out,” says MacLellan. “People loved the prizes and they gave a lot of shout outs to their favorite Turkstra employees. This is something we will do again. Next time, we’ll probably tie the event to a donation for a charity along with the giveaways.”

Turkstra Lumber’s Facebook page got 300 likes from customers during the company’s Like-a-Thon last fall.

COMMUNITY RELATIONS

Don’t Be So Robotic

isitors to Jerry’s Hardware in Edina, Minnesota, in November might have thought they traveled to the future where robot assistants can aid their shopping. In reality, it was just the work of skilled high school students that brought the future to them. Customers at the hardware store got the chance to see the robotic creation of Edina High School’s robotics team. The machine, which is conceptualized and built by the team and then entered into state and nationwide competitions, was designed to throw a basketball through a hoop, and it did so on command for any visitor who wanted to see it in action, says manager John Connolly. “The robotics team has been bringing their robots in every year since 2010. It really is impressive to see what each new year brings and what the kids on the team can accomplish at such a young age,” Connolly says. The team has an open account with Jerry’s Hardware, and the team often uses the store to supply items like small nuts and bolts as well as tools, Connolly says. The store makes a yearly donation to the team and offers a discount on purchases. “It’s really fun to see how far the team has progressed over the years. It’s gotten to the point where the high school team is so advanced that they mentor a junior high school team as well as create their own robot,” Connolly says. “The team has a lot of community support, and there’s always a lot of interest in mentoring Jerry’s Hardware manager John Connolly (third from left) stands these students.” with the Edina High School robotics team and the team’s robot.

February 2019 | HARDWARE RETAILING

Young Retailer Year of the

LEARN MORE OR SUBMIT A NOMINATION TODAY AT NRHA.ORG/YROTY

Sponsored by:

HARDWARERETAILING.COM

SPECIAL PROFILE ON ORGILL INC.

Serving Hardware, Home Center & Building Material Retailers

2019

Orgill

Putting the Focus on the Customer

DISTRIBUTOR PROFILE SERIES

Service by Design Continually Striving to Grow and Improve

n its 172-year history, Memphis, Tennessee-based Orgill Inc. has witnessed many changes impacting the home improvement industry. Long recognized as an industry leader, Orgill now services independent retailers in more than 60 countries from its seven distribution centers in the U.S. and Canada. In the following pages, hear from some executives at Orgill as they talk about serving their customers, company growth and what’s planned for the future. Then, hear from one Orgill customer, an independent retailer who talks about the importance of the company’s biannual Dealer Markets and the positive impact they have on his business’s performance. Finally, go online to read extended versions of these Q&As and profiles of several other Orgill customers throughout the U.S.

Table of Contents 41 . . . . . . . . . . . . . . . . . . . . . . . . . Ron Beal 42 . . . . Bryce Abbott and Vic Price 43 . . . . . . . . . Rebecca Rainer Partee 44 . . . . . . . . . . . . . . . . . . . . Mark Scheer 45 . . . . . . . . . . . . . . Foothills Hardware & Builders Supply

Extra, Extra! Online Exclusives This special section on Orgill Inc. is published by Hardware Retailing magazine, which holds and reserves all copyright on the content contained herein. This special Hardware Retailing supplement is part of a yearlong series profiling the home improvement industry’s distributors.

HARDWARE RETAILING

For full Q&As with Orgill executives, visit TheRedT.com/orgill-qa. To read additional retailer profiles, visit TheRedT.com/orgill-profiles.

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

A Proactive Approach Orgill Provides Its Customers With Tools for Their Success Hardware Retailing (HR): What in your strategy has allowed for the growth Orgill has experienced recently? Ron Beal (RB): Our strategy is pretty simple: Take care

HR: Orgill has seen some changes in its leadership structure. Do you consider these changes evolutionary? RB: Without a doubt. Certainly our leadership team continues

of our customers every day and execute at consistently high levels at everything we do. We continually remind ourselves that the easier we make it for our customers to do business with us, the more time they have to concentrate on their own operations. We also strive to provide our customers with choices. We focus on offering our customers options, not rules, because we have a very high regard for their ability to select and make the decisions that are right for their businesses. Given the right support and tools, most independent retailers will do what is required to be successful. That entrepreneurial mindset is a major reason why there are still so many successful independent retailers throughout our industry.

to evolve. Joe Orgill (who passed away last spring) was a strong presence in the industry and within the company. Many years ago, he and his business partner, Mike McDonnell, laid the foundation for an orderly and successful transition from a family-run business to a company overseen by an experienced executive team. We see that same kind of planning and implementation going on now. The executive team that works directly with me has expanded responsibilities in 2019. Each member brings many years of unique experience to these new roles. This group, along with our other senior staff, has for many years functioned well together as a team. These changes have been planned for a long time and will make us even more effective. It is also vital that transition planning extends to all levels of management. We make sure this happens. People who come to work for Orgill tend to stay here. We have a real mix of veteran employees who provide stability and hands-on experience, along with newer members of the team who bring new ideas and energy.

HR: Do you see anything about your strategy or approach to the market changing? RB: Change is a fact of life. We want to be proactive versus reactive to the needs of our customers. We want to be disciplined in our approach and deliver continuous, incremental improvement in everything we do. The industry is always evolving, but rarely at a rate that requires dramatic, short-term, disruptive change. That being said, I don’t think there is another distribution company in this industry that embraces new technology more than we do. When you look at the advancements we have made with our delivery fleet, distribution centers, e-commerce programs and the systems inside our organization, you’ll quickly see how consistent we’ve been in making the investments and improvements that make sense for our company and our customers.

HR: Has this approach always been the case for Orgill? RB: Being proactive and methodical seem to be in our corporate DNA. We embrace the idea that we want to be evolutionary rather than revolutionary, and that holds true with basically everything we do. It’s certainly true when you look at the fact that our company has been around for 172 years. During that time, change has always been a constant. We welcome change and plan for it, and are rarely caught by surprise. We don’t have a history of having to operate in crisis mode.

HR: How does Orgill focus on continuous improvement? RB: A core objective for us as a distribution company, something we know we have to do, is to always find ways to get products to our customers more efficiently and less expensively. This is one area where incremental improvement is incredibly important. Every single day, we have to focus on how we can buy better, deliver product more efficiently and help retailers grow their margins. The cumulative impact of this continued, incremental improvement in the way we operate over a period of three years, five years or 10 years can be profound—not just for Orgill, but more importantly, for our customers.

Ron Beal Chairman and CEO Beal joined Orgill in 1985 and served as a senior vice president and general manager before becoming president and CEO in 2005, and chairman in 2013. In 2019, he stepped down as president, but remains the chairman and CEO.

HARDWARE RETAILING

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

Learning From Others Vice Presidents Discuss Growth, Collaboration Between Locations Hardware Retailing (HR): What growth has each of you seen in your respective distribution centers over the past few years? Vic Price (VP): I oversaw building our first few distribution centers. Our center in Kilgore, Texas, opened 11 years ago, and I’ve been there ever since. We’ve more than doubled in size in 11 years due to the growth our company has experienced.

Bryce Abbott (BA): The Tifton, Georgia, distribution center was home to the first building expansion in 1995, and we’ve seen growth ever since. We’re in a good location, close in proximity to a number of our customers. And we’ve set up a number of systems internally to provide our customers with what they need. For example, we can shuttle trucks to meet drivers part of the way into the route, which means those drivers can head out and start delivering more quickly.

HR: How do the distribution center managers work together and learn from each other? VP: We meet frequently, and we look at a lot of different metrics. If one location has found a more effective way to do something, I want to learn more about it so my location can improve, too. For example, I wanted to do some additional training with my inventory control team, so a number of them went to Tifton for a week. It’s a bit of a friendly competition. We all have the same end goal, but at the same time, we all want to see what we’re doing the best.

customers with any assistance that they can. Our drivers are also an integral part of the process. Our other warehouses will step in and fill some of our regular routes so we can dedicate more drivers to those customers affected by the hurricane. That’s in addition to them providing product for us. The sales team also has a buddy system so if one sales rep is dealing with a natural disaster, his buddy can help him and his customers. Corporate is a huge help for us. Rebecca Rainer Partee, our director of North American sales support, and her team provide whatever we need during times we’re dealing with natural disasters. The whole warehouse is involved, too.

VP: It’s especially important to make sure you have enough product in stock when a hurricane comes through. Orgill has a whole system in place. We let customers know what items we’ll have in stock, and we tell them what we consider the must-haves. We’re also lucky to have a good group of employees in the warehouse. In our business, it’s hard to say what a set end time will be. Whatever the customer ordered the night before is what we’re filling today. Our employees have to be willing to stay and work those longer days. It’s important to get the right people in and train them right. When there’s a hurricane or other natural disaster, we’ve come in early on Saturdays and Sundays, and we’ve asked our teams to stay past midnight before. We always have people who are willing to stay and help.

BA: Sometimes you get in a rut if you only see what you’ve been doing, so it’s good to go elsewhere. When Orgill implements a new process or program, it’s usually done at one distribution center that serves as the pilot location for that program. Then, when everything is in order, we can roll it out to other facilities. Employees from the pilot location will visit the other distribution centers to train employees there.

HR: When a natural disaster occurs, what plans go into effect to make sure customers are provided with everything they need in a timely manner? BA: The key is great transportation managers. Our team works closely with our sales team. When something happens, they’re working at all hours to provide our

HARDWARE RETAILING

Bryce Abbott Vice President of Distribution—Southeast Bryce Abbott joined Orgill in 1995 and is vice president of the company’s southeast distribution center in Tifton, Georgia. Abbott manages the day-to-day operations of the warehouse and its employees. Vic Price Vice President of Distribution—Southwest Vic Price serves as vice president for Orgill’s southwest distribution center in Kilgore, Texas. He joined Orgill in 2000 and oversees all operations at that warehouse, which will expand to nearly 1 million square feet in 2019.

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

Prepared for Anything How Orgill Supports Its Customers During Difficult Times Hardware Retailing (HR): What’s the importance of having effective emergency preparation plans in place? Rebecca Rainer Partee (RRP): Retailers need to have the right mix of supplies to meet the needs of their customers before, during and after a storm hits. They need to be able to depend on their suppliers to not only have that mix, but also have the ability to get that product to them in a timely manner. In order for retailers to be a source of help in their community after a storm, they must have a supplier that has processes in place so both the retailer’s needs and the community’s needs can be met.

HR: How does Orgill handle its internal logistics when a natural disaster occurs? RRP: No one can control the weather, but Orgill can help our customers be prepared to handle disasters when they hit. Communication is always important. This is especially true during a disaster. When we’re dealing with natural disasters, each department sets up daily conference calls. Sometimes the calls are needed more than once a day. The focus of the call is always how Orgill can best help our customers in their time of need.

HR: How does each department play a role during a disaster? RRP: The sales support team works as the coordinator between the departments when disasters hit. Our merchandising services team works on making sure items that have been defined as “emergency goods” are in stock in the necessary warehouse, depending on the location of the natural disaster. This sometimes means transferring goods from one of our distribution centers to another. We’re lucky to have a great group of employees who are willing to expanded hours to get those emergency orders out the door. Our sales team acts as Orgill’s eyes in the field. They let the home office and distribution centers know what is happening in their area after a disaster. Weather can change rapidly, and we depend on them to let us know what’s going on and what our customers’ different needs may be.

“We’re here to provide our

customers with the items they need in a timely, efficient manner, and getting feedback like those letters lets us know the processes that we have in place for a disaster are working well.

”

Our customer service team is always a vital part of Orgill’s disaster response. They take calls and coordinate with the distribution centers what they are hearing from customers.

HR: Can you give some examples of how Orgill has successfully served its customers during one of these times? RRP: The damage that storms cause communities is devastating. However, it’s so rewarding to know Orgill is able to directly help those affected through our work. It’s during emergencies like these that items found at hardware stores become a necessity. We recently received some letters from our customers who were pleased with Orgill’s responses after Hurricane Michael and Hurricane Florence last year. Specifically, those customers mentioned that they appreciated Orgill’s assistance in getting product to their stores as quickly as possible, and said the extra deliveries really helped them keep up with consumer demands. We’re here to provide our customers with the items they need in a timely, efficient manner, and getting feedback like those letters lets us know the processes that we have in place for a disaster are working well.

Rebecca Rainer Partee Director of North American Sales Support Partee joined Orgill in 2005 and worked as a marketing analyst and marketing operations manager before taking on her current role as the head of sales support, where she works closely with the sales and IT teams.

HARDWARE RETAILING

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

Looking for a Change? Orgill Talks New Stores, Expansions and Conversions Hardware Retailing (HR): What kinds of programs do you offer to customers who want to expand their businesses? Mark Scheer (MS): Unique to Orgill is our Market Driven Retailing program. It is a market-specific approach that allows us to develop analytics for a retailer for their market. It provides measurable data to assist the retailer in focusing on their customer, and what the consumer’s expectations are when they shop for home improvement products. The Market Driven Retailing process begins when we provide the retailer with demographics so they can compare their market to similar markets across the U.S. The process also includes collection of data from other businesses within their market. At the conclusion of that data collection, our customer sees the results and knows specifically what it will take to compete with those other stores. I think our Market Driven Retailing study is one of the things that sets us apart from other distributors in the industry. It shows exactly what a retailer needs to do when constructing a new location or updating an existing location—everything from a floor plan to product selection to what categories help make them a destination for the consumer. We look at retail pricing and know exactly what prices a store should be at. We don’t want retailers to miss any opportunities for their customers. The Market Driven Retailing study allows our customers to let their market be their compass.

HR: How do you address retailers who want to convert to Orgill? MS: The process is a bit different for retailers who want to convert their stores to Orgill. We are dealing with an established retail environment, so we have the benefit of knowing a retailer’s purchase history and their place in the market. With a conversion, we go through the business’s product selection and convert any products necessary to

“Stores often see an enhancement

in sales after a conversion, and one reason may be due to the changes in how customers see the store.

”

HARDWARE RETAILING

match up with the SKUs offered through Orgill. The retailer often has some products from a different supplier that are identical to what we offer, and in other categories, there might be more opportunities for them to try new products. Additionally, we evaluate their inventory to identify any missing key assortments. We plan for most conversions to take about a week. We expect the store to stay open; we don’t want to have a negative impact on business. During the conversion, we remove any old product, switch bin labels, change out signage and provide the new data to their POS company. Stores often see an enhancement in sales after a conversion, and one reason may be due to the changes in how customers see the store. Products might have moved around, or there might be new products with different packaging.

HR: What resources does Orgill provide during these projects? MS: We have a full store planning staff that assists with our Market Driven Retailing program. Our team captures data, and our store analysts study it. We have store planners who put together store layouts. For anyone who wants to convert, we have a complete team of conversion managers. These retail development managers are strategically placed across the country, and their focus is to work through conversions, which have many components. We don’t want to impact the retailer’s ability to service their regular customers, so our team works with POS providers to compare the retailer’s file to the Orgill database. We also encourage retailers to get their POS provider engaged in the process, just to make sure there’s a smooth transition. Smart Start is also an integral part of the conversion. This program helps replace tired products with fresh, complete assortments. It’s very helpful in determining that we have the right product selection. Retailers understandably want to take a close look at any changes in inventory. We make sure their items, especially the top-selling ones, aren’t compromised.

Mark Scheer Director of Retail Development Scheer leads the conversion team as they set stores for retailers who have converted to Orgill. He also helps retailers look closely at their markets to ensure they are accurately targeting their customer base.

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RETAILER Q&A

Never Miss a Show North Carolina Retailer Talks About the Importance of Orgill’s Dealer Markets

Hardware Retailing (HR): Do you and your team attend every Dealer Market? Taylor Baker (TB): We do. I go to every spring show and most of the fall shows. I try to get our employees involved, too, whether it be our general manager, purchasing manager, members of our sales team or our associates. It’s a great opportunity for our employees to see another side of the business. They work every day to sell items to our customers, so I want them to see what it’s like to go to a show and buy those items we sell. There are so many vendors and other opportunities at the Dealer Markets. I feel like the shows really tell the story of all Orgill has to offer, and I always appreciate when our employees have an opportunity to see that, too.

HR: How do you prepare for the shows? TB: The Dealer Markets offer plenty to see and do over three short days, and you absolutely have to go in with a plan.

One of the first things we do at the show is walk the floor, just to make sure we don’t miss anything. We make notes of any booths or areas we want to come back and look more closely. Then we go to the promotional areas. That’s in the morning of the first day. That afternoon, we visit the concept stores and the Product Showcases. For each show, we choose a couple of departments to focus on. It might be a department that’s currently struggling, or maybe a new one we just added to our store. We take some time to make sure the product selection we have for those particular departments is exactly what it needs to be. We talk with vendors and find out about trends and new products in those categories. We also look at seasonal merchandise. At the spring shows, we look at lawn and garden items and spruce up that category however it may need. At the fall shows, we focus on heating, plumbing and electrical so we can make sure we’re ready for the upcoming winter.

HARDWARE RETAILING

DISTRIBUTOR PROFILE SERIES

“The markets offer us the

opportunity to buy products at great prices. We can get into a new category or try a new planogram at a huge discount—it’s a way to try something new with just a small financial investment.

”

We also attend at least one or two of the seminars at each Dealer Market, and we spend some time learning about all of Orgill’s products and services. This will be especially helpful for us at the show in Orlando later this month, since we’ll want to take advantage of many of these programs as we set our new store. That area provides a good opportunity for retailers to take a closer look at these programs and find a new idea they may want to capitalize on.

Taylor Baker attends Dealer Markets to learn about new products and find new merchandising techniques he can implement in his stores.

We try to focus on just a few categories at each Dealer Market to ensure we really cover those well. It’s about quality over quantity. We do some pre-buying every year, which is helpful. Not only do we get good prices on items we know we’ll be buying anyway, but that way, we have a little more time when we get to the Dealer Market.

HR: Are there any particular areas you always visit? TB: We really like the model stores. Sometimes when you’re looking at a product in a vendor’s booth, it’s hard to visualize how it would look in your store. The model store is a great way for us to see many of those products in a real-life setting, right there on the market floor. And they give us ideas, too—the model stores might feature products or even categories we don’t currently have, and they allow us to see how a store flows and how the categories are set up. We just purchased a new store a few months ago, and we are actually basing its layout off of a model store we saw at the Dealer Market last spring. We have some changes to make, of course, but we’re using that model store as a starting point as we fix up our newest location. The Product Showcases are really helpful for us, too. These areas show the breadth of product Orgill offers in those particular categories, and again, they always give us some good ideas. We always walk through each of those at every show.

HARDWARE RETAILING

HR: How do the Dealer Markets help your business be more profitable? TB: The markets offer us the opportunity to buy products at great prices. We can get into a new category or try a new planogram at a huge discount—it’s a way to try something new with just a small financial investment. The different promotional areas have so many great deals, too. Orgill puts everything together so well and gives us opportunities for great buys. We always make sure to take advantage of that. Plus, the Dealer Markets offer us an opportunity to revisit other facets of our business. We can meet face-to-face with the experts at Orgill and talk about pricing or product selection. Orgill offers programs for each of these areas, and we can learn more about any adjustments we might need to make. We actually just went back through our pricing structure with Orgill to make sure our prices are where they need to be. Without Orgill, we wouldn’t have come as far along as we have these past few years. We’ve taken a couple of stores that were in pretty bad shape and really turned them around, without a huge investment. We’re continuing to improve and grow our businesses, and Orgill and their Dealer Markets have been a big part of our growth, and our success.

Taylor Baker Owner of Foothills Hardware & Builders Supply Baker bought his first store in Pilot Mountain, North Carolina, in 2015, and expanded the business in 2018 with the purchase of a second store in Mount Airy.

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Challenging Assumptions Consumers Across Age Groups Talk Retail Innovations

s you look around your store, who are your customers? More than likely, your business caters to a diverse customer base—people from different backgrounds and age groups who all need the products, services and insight your business provides. Hardware Retailing gathered a focus group of 10 consumers from the four most active retail age demographics to gauge their thoughts on the independent channel. In planning the event, Hardware Retailing staffers believed the four generations would be decidedly divided by age lines: What Generation Z desired would be a non-starter for a baby boomer. In fact, the evening showed unexpected unity between the age groups. In many cases, what works for one age group would prove successful for another. In the following article, you’ll discover the specific insights the focus group yielded. Review their suggestions and decide what’s best for you and your business. From general impressions of independents to desires for rapid delivery, robust online inventory and online video tutorials, the event provided many interesting takeaways retailers should heed. Perhaps most importantly, remember to not focus too heavily on any specific retail demographic; the focus group proved the retail cornerstones of employee knowledge, rich inventory and stellar service transcend generations.

February 2019 | HARDWARE RETAILING

General Home Improvement Views Members of the consumer focus group began by discussing their general impressions of independent home improvement stores. Nels Olson, a millennial homeowner, says convenience and familiarity are big motivators for where he chooses to shop. “Independent businesses make you feel appreciated. I see the same people working there, and they recognize me. I feel like they actually have an interest in the projects I’m doing, and I don’t get that at the big boxes I visit,” he says. Melissa Tratensek, the group’s sole Generation Z participant, says she doesn’t have much experience with home repair projects, but when she has visited independent operations, she feels welcomed. “Every time I go to an independent, I find someone who actually listens and can help me, versus visiting a big box and leaving without even talking to someone,” she says. Heather Kauffman-Peters, a Generation X participant, says she often finds special items when she shops at independent businesses. “You can find unique items when you shop independents,” she says. “I’ve seen a lot of local and homemade products, which I really like.” Hal Dickenson, a baby boomer who works as a contractor, says employee knowledge is much higher at independent operations. “At independent stores, it’s always easy to find help, and they know what they’re talking about,” he says. “At the big-box stores, they run from you when they see you coming. As a contractor, I know what I’m looking for; I just might not know where to find it. So when I have to hunt someone down, that’s not a good impression for me.” For Lynnette Husted, a baby boomer homeowner who worked in retail as a teenager, one of the main advantages of choosing independents is working directly with the business owner. She says seeing a business owner on the salesfloor gives her confidence that the management team has a true stake in the satisfaction of its customers. Another advantage independents have according to the focus group was their community investment. Millennial Eric Burns says seeing independent businesses support the community promotes visibility and makes him more likely to choose independents.

HARDWARE RETAILING | February 2019

Meet the Generations The focus group included representatives from the four most active age groups in retail, according to the Pew Research Center. Among them were new homeowners, DIYers and independent service providers, including masons and arborists. • Baby boomers are the oldest active retail group. Its members were born between 1946 and 1964. • Generation X have been active consumers for some time. Its members were born between 1965 and 1980. • Millennials are increasingly prominent in retail. Its members were born between 1981 and 1996. • Generation Z is the youngest retail cohort. Its members were born between 1997 and 2015. Hal Dickenson . . . . . . . . . . . . . . . . . .Boomer Lynnette Husted . . . . . . . . . . . . . . . .Boomer Dan Vernon . . . . . . . . . . . . . . . .Generation X Heather Kauffman-Peters . . . . . .Generation X Eric Burns . . . . . . . . . . . . . . . . . . . Millennial Nels Olson . . . . . . . . . . . . . . . . . . . Millennial Mike Long . . . . . . . . . . . . . . . . . . . Millennial David Dickenson . . . . . . . . . . . . . . Millennial Amy Baldwin . . . . . . . . . . . . . . . . . Millennial Melissa Tratensek . . . . . . . . . . . Generation Z

“I think it’s great when independent businesses support their community,” he says. “The big boxes aren’t out there supporting softball teams, but when independents do it, it raises their visibility.” Husted says in-store events are a major draw for her and other members of her cohort. She described a local independent operation that regularly stages Christmas open houses that include special sales and craft tutorials. She says these events are targeted toward women, but they were powerful ways to get customers like her through the doors and ready to spend money. “I look for that postcard invitation to come every year. It’s something I really look forward to,” she says.

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General Home Improvement Views For several focus group participants, one drawback of independents is their small footprint and occasionally limited inventory. Some said if they were searching for a more specialized item, they may skip independents entirely and visit big boxes, preferring to avoid losing time visiting an independent only to find a specific item isn’t in stock. Generation X participant Dan Vernon works as the general manager for a small tree care business, and he shops whichever store can get him the tools and equipment his business needs to get back to work. “I’ve got a clock ticking in my head—it’s just dollar signs on fire. I go to big boxes sometimes just because I assume they’ll have an item. What I can’t afford is going to a store and learning they don’t have what I need,” he says. To maximize inventory and become a one-stop destination, Vernon suggests independents meet with local small business owners to learn more about the specific tools and equipment they need to do their jobs. By stocking specialty items or at least becoming more familiar with key tools, retailers can enjoy closer relationships with local service providers.

Put It to Use • In-store treats were incredibly popular for all generations. Explore easy-to-prepare snacks you could provide to customers. Also consider inviting food trucks to your parking lot—many participants say food trucks pique their interest. • The group did express worries that independents may have smaller inventories. If you do face inventory restrictions, train employees to quickly suggest special orders to satisfy customers and clinch sales. Also, advertise that you can get most products from warehouses in as little as two days. • Many members said seeing business owners on the salesfloor was an important element of shopping at independent businesses. Nametags that include titles can be an easy way to instill trust among your customers that the business owner is directly involved with day-to-day operations.

Heather Kauffman-Peters (left), Melissa Tratensek (center) and Hal Dickenson shared their views on independent businesses.

HARDWARE RETAILING | February 2019

Online Opportunities For many consumers, choosing where to shop comes down to finding the lowest online price and knowing a particular item is in stock exactly when and where a shopper needs it. Millennial and Generation Z participants all stressed the importance of browsing online inventories, though they say they understood many independents face logistical challenges that prevent them from presenting their inventories online. “I look online for just about everything before I actually go to a store,” says Amy Baldwin, a millennial. “I need to make sure the store has what I’m looking for, because I don’t want to go to multiple places to find one item.” For Olson, using a big box’s buy online, pickup in store (BOPIS) feature has been a major draw, but he says even major chains need some work before their BOPIS programs are reliable. “One of the reasons I shopped at a Lowe’s recently was because of Lowe’s in-store pickup program. You can buy something online, then pick it up in-store. At least that’s how it’s supposed to work,” he says. Olson says he’s zero for five with Lowe’s BOPIS program. Other millennials expressed skepticism on the reliability of big boxes’ online inventories. Millennial Mike Long says he has experienced multiple instances of an item being advertised as in stock at his local big box, only to arrive and learn the store doesn’t carry it. “Online inventories, buying things online and picking them up at the store—they’re great ideas, but a lot of times it’s not as seamless as they make you think,” Long says. “I’ve learned not to rely on it.” Husted says she believes her generation isn’t as concerned about online innovations.

“I do check things

online, but at the end of the day, I’m more likely to just visit a store in person and see what they have in stock.

”

“I do check things online, but at the end of the day, I’m more likely to just visit a store in person and see what they have in stock,” she says. There are other online opportunities retailers should consider in addition to BOPIS and online inventory, however. Several focus group participants saw value in retailers exploring social media opportunities and establishing regular e-newsletters. Both initiatives enable retailers to share sales information, new products, DIY tutorials and general store information. Olson says he unsubscribes from many email lists that no longer deliver value. He and other participants say they’d subscribe to a home improvement e-newsletter that included a mix of product information, how-to advice and other relevant information. Across generations, the participants agreed daily e-blasts would be an annoyance. Many members within the group recommended retailers who start an e-newsletter program focus on providing quality content once a week. Vernon, who represented Generation X, says money-saving coupons would be a great addition to e-newsletters.

Put It to Use • Consider starting a convenient BOPIS program for VIP customers. Even a system as simple as having an order ready when certain customers call can safeguard sales. Participants expressed frustration with big-box BOPIS programs, so set your business apart by piloting and then implementing a BOPIS program local consumers can count on. • Even if you can’t represent your entire inventory online, be sure your website has a thorough overview of your different departments so consumers can have a good idea whether you’ll carry the equipment they need. • Empower your employees to explore opportunities to begin an e-newsletter or ramp up your business’s social media presence. A project like this can incentivize employees to invest in the company’s long-term success and help them develop new skills.

—Lynnette Husted, Baby Boomer February 2019 | HARDWARE RETAILING

Speedy Checkout, Dashing Delivery Across the generations, all participants indicated their time was a motivating factor in choosing whether to shop at independents or big boxes. Retailers who can provide speedy delivery options or streamline the checkout process for customers could win new sales. Participants across generations saw value in independent operations establishing rapid delivery programs that could enable professionals to stay at job sites even when key pieces of equipment needed to be replaced. Vernon reiterated the importance of maximizing time he can devote to his tree care customers. “Every minute I’m spending going back and forth from a store is time when I’m not actually working on a job,” he says. “Getting deliveries sent directly to a job site would be a huge benefit for me.” Even participants who don’t work in the trades saw great value in improved delivery options. Several millennials described undertaking home improvement projects and learning the hard way that the tools or equipment they had weren’t right for the task at hand. Many millennials in the focus group said having the ability to get in touch with a store’s staff and initiate a delivery to their homes instead of making two or three trips to a store would be a game-changer. Even if retailers can’t establish a delivery program for pros and DIYers, exploring technology that can greatly reduce customer wait times is important, participants agreed. Many focus group participants supported mobile checkout programs enthusiastically. Vernon called mobile checkout “masterful,” a clear sign retailers should research what it takes to bring that technology to their business. Burns says mobile checkout would be especially useful when customers were purchasing larger items. “I think it would be beneficial to have floating salespeople who were ready to help customers check out as soon as possible,” he says. “Especially for items like mulch and lumber, no one wants to haul that all over a store.” Credit card swipers can be attached to tablet devices and enable associates to bust long lines by helping customers quickly pay for their purchases. In other scenarios, associates could leave the store to bring products to customers curbside and quickly process their payments, enabling pros to return to a job quickly.

HARDWARE RETAILING | February 2019

Put It to Use • Even if you only offer it to professionals, ensure your business has the resources necessary to make quick deliveries within a reasonable radius. • Advertise the service to professionals who frequent your store to make your business top of mind when they’re at a job site and need a piece of equipment as soon as possible to keep their project on track. • Establishing a service area in which your company can make deliveries is critical. Ensure that service area encompasses areas of construction activity to net as many sales from pros as possible. • Consider delivering products outside your service area for an additional delivery fee. This policy enables professionals to stay working at a job site with the tools they need while your business enjoys a higher transaction size.

Nels Olson (left) and Eric Burns say mobile checkout options would encourage them to shop independents.

Knowledge in Motion In each of the four generations represented in the focus group, online video tutorials from knowledgeable staff members were identified as major opportunities for independents to share their knowledge and attract new customers. After commending IKEA for showing practical applications for its products in videos and marketing materials, Long recommended independents follow that lead. “I think a project showcase would be really helpful to a lot of consumers. I think the key is letting customers imagine the product in their own homes,” he says. He suggests retailers use marketing materials from product manufacturers to merchandise not the products themselves, but the finished product they can achieve to inspire homeowners. Even if retailers don’t choose to merchandise project applications, millennial Olson saw immense value in online video tutorials. “Most of the time when it comes to home improvement projects, I’m in the dark, and there’s a lot of trial and error,” he says. Every member of the focus group says they have watched an online how-to video before, and they agreed that retailers who begin creating their own collection of videos stand to benefit. Millennials Long and Olson agreed that if retailers were to create a bank of quick, informative how-to videos and post them on their website or social media, customers like them would learn about specific products in an independent’s inventory and come to see that retailer as a source of knowledge. “We’ve said before that the independents have a more knowledgeable staff, so they should be the ones putting these kinds of videos together,” says David Dickenson, a millennial who works for a chimney service company that buys power tools and other products from home improvement stores.

“If retailers with the

know-how want to increase their sales or just give back to the community, using social media to give information is really important.

”

He recommended retailers make these videos available far and wide—on their own websites as well as every social media platform they operate. “Social media is how you’re going to reach millennials,” Dickenson says. “Millennials want to do a lot themselves—maybe it’s to save money, maybe it’s just for the satisfaction of doing the job. If retailers with the know-how want to increase their sales or just give back to the community, using social media to give information is really important.” Burns also confirmed that on video-sharing sites like YouTube, videos can be monetized, meaning retailers can choose to place ads before or during their videos. As viewers watch the videos, the retailer who uploaded the video receives compensation for those ad impressions. Perhaps the most important aspect of these videos to Generation Z participant Tratensek is the personal connection they provide. “If I could watch a video made by a local hardware store, and then go into the store and see the person who was in the video actually working at the store and able to answer my questions,” she says, “that would be a huge selling point for me.”

Put It to Use • Ask yourself what home improvement questions your team fields most often from customers. Compile a list of the top three and develop an outline to walk customers through these common projects. Gather the supplies a customer would need, grab your smartphone and start recording. • In 30 minutes or less, your business can create a video that advertises your store, solidifies your reputation for staff knowledge and encourages shoppers to stop in and start buying. • Share that video on your company’s website, as well as on its social media platforms. Facebook prioritizes posts that include original videos, so sharing your how-to tutorial on social media can garner new leads for your business, while encouraging customers to try their hands at a new project.

—David Dickenson, Millennial

February 2019 | HARDWARE RETAILING

By Renee Changnon, rchangnon@nrha.org

Photo courtesy of NatureKast

HARDWARE RETAILING | February 2019

Take It Outside Must-Have Elements of an Outdoor Kitchen

he sun is shining, the birds are chirping and the smell of meat and vegetables cooking wafts through the air. This may seem like the scene of a vacation getaway, but for many homeowners, it’s a yearlong reality now that outdoor kitchens and living spaces have become popular home improvement projects. In fact, 1 in 10 outdoor renovators invests in outdoor kitchen equipment, such as grills, special cookers, built-in cabinetry, sinks and appliances, according to the 2017 U.S. Houzz Landscape Trends Study. For a designer’s perspective on these trends and why retailers should consider selling this home improvement project, Hardware Retailing spoke to Michael Erickson,

co-owner of Inside Out Kitchen and Bath, a construction company that serves homeowners throughout Florida’s west coast. “Homeowners I work with want to be outside while also being able to enjoy the comforts of the indoors,” Erickson says. “My company helps them by designing a space that is an extension of their home and flows from the inside out. Homeowners want to entertain, cook and enjoy their space, and I help them achieve those goals.” Read on to learn the four main trends displayed in today’s outdoor kitchen and the products that make the space desirable. Discover how you can incorporate these types of products into your outdoor lawn and garden departments to gain these customers.

February 2019 | HARDWARE RETAILING

Photo courtesy of NatureKast As outdoor living remains a popular project for homeowners, establishing a well-rounded cooking area is at the top of many remodelers’ lists. Homeowners may want a standard grill, a specialty cooktop (above) or a combination of both.

Grills and Special Cookers One thing homeowners will think about when it comes to creating an outdoor space is the type of cooking source to choose. But grills are not one-size-fits-all. Today’s homeowner has a variety of products to choose from. Some manufacturers are creating high-end grills that allow users to switch between, depending on how they want to cook their food. One of the fastest-growing segments of outdoor living is specialty grills, according to the market research firm The Freedonia Group. These include pellet grills, kamado grills and smokers, which all allow the chef to focus on different ways to add distinct flavors to their food. When a customer hires Erickson’s company to build a new outdoor kitchen, they may have a basic space that was created when the house was built that they want to gut and make their own. “Most of our customers want to remove the previous work a builder has done to create more space and to meet their specific design preferences,” Erickson says. “I’ve found those that move to Florida from the Midwest or east coast are

HARDWARE RETAILING | February 2019

more likely to want an outdoor kitchen because they had one back home.” As more homeowners are finding ways to prepare meals outside, outdoor kitchens will include built-in gas grills connected to a home’s natural gas line. People who want an outdoor kitchen but aren’t as interested in grilling, might install the same type of range outdoors as they use indoors.

In Your Store To ensure customers continue shopping at your operation for their grilling needs, be sure your employees can explain the different grill options and how to cook with them. • Establish a team of grilling experts and consider focusing a high-profile area of your store on grills and smokers. • When the weather is nice, take it outside and host cooking demos for customers.

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Appliances and Plumbing Depending on a homeowner’s outdoor space and budget, another segment of the outdoor kitchen that brings the convenience of cooking into nature is outdoor-rated appliances and plumbing options, like sinks. Installing a sink in the cooking area can help with cleanup and during the food prep process, like washing vegetables. Some homeowners may want to take cleanup a step further by adding a dishwasher to the outdoor kitchen. However, consumers should make sure they select a dishwasher that is designed to withstand weather in all seasons.

It’s also important for them to be aware of building codes and other requirements. Erickson says any appliance used outside must meet specific building codes. “Any appliance that can be used inside can be used outside, but it needs to be rated for the outdoors, even if it’s in a completely enclosed area,” Erickson says. “In Florida, we have to do this because salt can corrode appliances if they aren’t rated for the outdoors. Up north, winter is the issue, so homeowners need to keep winterization in mind and have appliances that can stand the cold.” Instead of wading through codes and requirements, connecting an outdoor sink to a cold water connection might be all a homeowner needs to do to get the job done, Erickson says. “If they want to incorporate basic plumbing like adding a sink, depending on their community’s code, running water off the outdoor cold water line might be the best way to move forward with their project,” he says. Some homeowners might also want to designate a bar area in their outdoor kitchen layout, which might include a separate icemaker or a wine cooler. Another appliance customers might consider adding is a minifridge designed for the outdoors. For homeowners who want to create an outdoor kitchen but want to finish the project quickly, Erickson says there are several different manufacturers that create modular, moveable counter islands, which include storage, a sink, a counter for preparing a meal and a cutout to fit specific grills or cookers. This might be a preferred option than a built-in design.

In Your Store To help customers pick out the appliances and design features they want for their outdoor kitchen, be sure to ask questions and find out what the customer’s intended use of the space will be. • Some items may need electrical or plumbing hookups, so be familiar with any accessories or add-ons that would support the project. Remind customers to check local codes before they make electrical or plumbing hookups outdoors.

Photo courtesy of NatureKast Appliances like dishwashers may be something a homeowner wants to include outside. However, these appliances must meet building codes.

HARDWARE RETAILING | February 2019

• If your operation doesn’t sell appliances but you have the option to special order what they want, make sure you explain that to your customers early on so they don’t take their business elsewhere.

Cabinetry, Countertops and Storage In order to prep and cook a meal conveniently, every kitchen needs countertops. When selecting a countertop for the outdoors, homeowners must take into account the different materials. Porous stones like marble, limestone and bluestone stain easily and would be better to avoid, according to an article by HGTV. One of the most durable options to choose is granite, as it doesn’t absorb stains or odors and shouldn’t fade in the sun. Soapstone is another option, and while the colors are limited compared to granite, it is resistant to heat, stains and bacteria. A design style that Erickson prefers when designing outdoor kitchens for his clients is concrete countertops. “To ensure that concrete countertops remain durable outside, professionals can add steel rods to reinforce it, providing tension,” he says. “Concrete is less likely to crack if a homeowner takes these precautions. They can also add different colors or glass to concrete and then add a polish on top. It’s a very versatile style.” As outdoor kitchens become a more common project, there are more manufacturers that create cabinetry designed specifically for the outdoors. Popular types include weatherproof cabinets made of a specialty resin material that looks and feels like wood. These can come in a variety of finishes and styles. Plus, many are constructed to allow homeowners to select cabinets for appliances and provide storage spaces.

Metal cabinets are also popular as they can withstand changing weather, rot and insects. These cabinets come in a variety of styles, providing the opportunity to customize a kitchen’s finished look. Some cabinet manufacturers create systems that fit specific grills and cooking units, while others make customized cabinetry. According to Erickson, modular kitchens can allow a homeowner to do it themselves. “Many modular kitchens are stainless steel setups that can be mixed and matched,” he says. Storage keeps outdoor kitchens organized, so homeowners don’t have to run inside for tools. These may include hidden drawers for trash bins, pull-out cutting boards and drawers to store cooking tools.

In Your Store If your business offers more extensive cabinet and countertop offerings, you should consider cross-merchandising items that are designated for outdoor spaces. • If cabinets and countertops are not your specialty, consider offering standalone, modular equipment. This might be easier to stock or special order, so make sure their employees are able to show customers those options.

Photo courtesy of Inside Out Kitchen and Bath Michael Erickson’s Florida-based construction business Inside Out Kitchen and Bath specializes in helping its customers get the outdoor kitchen of their dreams. Erickson says stainless steel cabinetry is a trend he prefers in outdoor kitchens.

February 2019 | HARDWARE RETAILING

Heating, Cooling and Ventilation It’s important to consider the regional temperatures to keep an outdoor kitchen and living space comfortable. When Erickson first began completing construction jobs five years ago, he was living in the Chicago suburbs where outdoor kitchens were a popular request among homeowners looking to extend their time spent outside. “I learned the ways to make an outdoor space warm in cooler temperatures in Illinois but that translates to Florida as well for colder evenings,” he says. “Many of my customers add propane heaters, and some may want an infrared heater, which I recommend if they have a covered roof.” For homeowners who intend to use their outdoor kitchens as long as they can, combining a variety of items to keep the space warm can make it accessible almost all year. One way almost any retailer can keep outdoor living areas warm is by adding a fire pit into the design, Erickson says. These can range from something as simple as a wood-burning fire pit to stationary setups with fire rings and glass. An outdoor fireplace is another way to heat up the space and bring a homeowner’s design preferences to the space. In many designs,

the fireplace becomes the focal point, and it also can provide storage and built-in seating areas. “Adding an outdoor fireplace is a high-end addition to this project,” Erickson says. “If a DIYer has enough experience, there are some manufacturers that provide a kit for fireplaces, but I recommend most homeowners use a professional mason to complete this project.” Three years ago, Erickson moved to Florida to start Inside Out Kitchen and Bath with his brother. Erickson says he is now frequently asked by customers what to add to keep outdoor living areas cool. If it gets hot outside, an outdoor ceiling fan can help promote circulation. Homeowners should pick out options that are wet, dry and damp-rated outdoor fans. These are waterproof and can handle the outdoors. Wall-mounted outdoor fans are also an option for customers whose outdoor kitchens aren’t covered by a roof or other structure. According to Erickson, he often will add misting fans to his outdoor projects to provide relief from intense humidity. To prevent smoke from blowing in guests’ faces or clouding the cook’s focus, a vent hood is also a smart addition. The hood should be larger than the grill so it can catch smoke easily.

While outdoor kitchen remodels can be as basic or extensive as a homeowner desires, this project will continue to be on many wish lists in the years to come, Erickson predicts. “As people continue to invest in their homes, those that finish indoor projects will be more likely to take on outdoor living projects, like kitchens,” he says. “Retailers should find out what their customers’ plan is and help or recommend professionals to get difficult tasks knocked off their to-do lists.”

In Your Store Find ways to connect with other local businesses or contractors if you can’t expand into all the necessary categories that create outdoor kitchens. Some projects may require a professional. • Be sure to check with your distributor to find out what special-order options you have to meet customers’ needs if they come to you for the perfect finishing touch that you don’t normally stock.

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Photo courtesy of Inside Out Kitchen and Bath Inside Out Kitchen and Bath helps customers add a variety of projects to their outdoor kitchen, like this fireplace installation with built-in seating.

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February 2019 | HARDWARE RETAILING

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Growth on the Horizon NRHA Conference Explores Innovative Retail Strategies

he home improvement sector is outstripping the growth of the overall retail industry— and independent retailers are finding creative and ambitious strategies to fight off giant competitors. These successes were evident through the research and stories of independent home improvement retailers presented at the North American Retail Hardware Association (NRHA) 2018 State of Independents Conference. Growth was the theme of the event, which was held Dec. 6 in Chicago. At the fourth annual conference, NRHA presented new research that helped flesh out discussions of thriving retailers’ plans for growth and the product categories where they’re finding and forecasting success. The association surveys retailers annually to gauge

HARDWARE RETAILING | February 2019

where their businesses are growing, how they expect to expand and what their obstacles to growth are. According to the 2018 research, nearly 70 percent of independent home improvement retailers are expecting to grow their businesses in 2019 by adding product niches, expanding product lines, increasing salesfloor space, exploring new locations or a combination of the four strategies. The State of Independents Conference provided discussions of the research and opportunities for retailers to network with operators from a variety of wholesale affiliations. Retailers also gained a platform to explain their triumphs and dialogue with peers, manufacturers, distributors and industry observers. Read on for more details about the research and retail success stories shared at the event.

Competing and Growing The conference began with data and analysis of the economic environment in which independent retailers are working to thrive. Weather, tariffs and challenges in finding skilled labor all had an impact on the home improvement industry in 2018. However, retail overall still expanded, according to Dan Tratensek, executive vice president of NRHA and Hardware Retailing magazine publisher. “Retail saw modest growth, with relatively strong growth for home improvement retailers,” Tratensek says. “No one has a crystal ball, but we project the home improvement sector will outpace general retail in 2019.”

“Independent retailers have found out how to compete with the big boxes. Now, they’re all asking, how do we respond to this online threat?

”

—Dan Tratensek, NRHA

NRHA’s survey asked retailers what their single biggest competitor is and—for the first time in the history of NRHA’s research—the most respondents ranked Amazon at No. 1. “Independent retailers have found out how to compete with the big boxes,” Tratensek says. “Now, they’re all asking, how do we respond to this online threat?” Jim Robisch, senior partner with market research and consulting firm The Farnsworth Group, noted that small businesses continue to be strong contributors to the U.S. economy, driving much of the job growth seen in recent years. “Small businesses continue to hire,” Robisch says. The economic outlook for the near future looks good for home improvement, though there might be a softening in 2020 and beyond due to rising interest rates, housing affordability, worker shortages, trade tensions and other factors, he says. According to Robisch, the remodeling market is particularly strong. This strength benefits industry retailers because while some people may not be buying new homes, many are investing in upgrading their current living spaces, he says. “Remodeling is on fire,” he says. “We’re very, very positive and bullish on remodeling.”

Retailers Expect to Keep Growing Independent store operators answered survey questions about current and expected growth. Do you plan on adding new product lines in the coming year?

Yes

Which core categories do you feel have the biggest potential for growth? Retailers could select more than one answer.

Lawn & Garden

48.6%

Paint & Sundries

42.2%

Outdoor Living

27.8%

Plumbing

27.2%

Building Materials

22.0%

64.2% No

Do you plan on expanding existing product lines in the coming year?

Yes

88.4% No

10%

20%

30%

40%

50%

% of Survey Respondents Source: NRHA 2018 State of Independents Conference Research

February 2019 | HARDWARE RETAILING

Robisch predicted continued omnichannel growth for retail and an expanding need for independent retailers to improve the online experiences they offer to remain competitive. “The store remains a very important part of the shopping experience,” he says. “However, you can’t take online out of the equation because 50 percent of purchases start online.” Big-box competitors, such as Home Depot and Menards, are gaining traction with customers by working to improve the product and project knowledge of their employees, Robisch says. As a result, independents cannot assume they’re beating the big boxes in areas, such as customer service, where they have traditionally stood out, Robisch says. Use employee training, strategies for improving price image and relationships with existing customers to grow business, he advised conference attendees. “Be open to new ideas and change,” he says.

Expanding Categories The NRHA research also provided insight into the product categories retailers are growing and expecting more expansion from. New product lines, new products and niches are areas retailers list as the top three pathways to growth, Tratensek observed from the research. Independents have an advantage in that they are more easily adaptable than large corporations and can position themselves as innovators who can tailor their product mixes very specifically to their markets, Tratensek says. “Independent retailers are emerging as category curators,” he says. “They have to know their markets better than anyone else.” The top-performing categories in the past year for many independent home improvement retailers were lawn and garden, paint and paint sundries and plumbing, according to the data. Research participants think lawn and garden and paint and paint sundries have the most potential for growth.

Niche Categories Show Big Sales Potential Survey responses revealed the role niche categories are playing in retailers’ growth plans. What niche categories do you feel offer the biggest potential for growth?

Outdoor Power Equipment

Gifts

Paint & Sundries

Which niche categories are you currently offering? Retailers could select more than one answer.

Cleaning Supplies

77.5%

Food, Candy, Drinks

67.6%

Automotive

59.5%

Outdoor Power Equipment

50.3%

Holiday/Seasonal

48.0%

Pool Supplies

47.4%

Safety

42.2%

Lawn & Garden

Plumbing Specialties

Grilling

Source: NRHA 2018 State of Independents Conference Research

HARDWARE RETAILING | February 2019

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Matt Woods (left) of Woods Hardware, Jamie Gentner (center) of Center Hardware and Joe Franquinha of Crest Hardware share ideas for how to identify opportunities for growth in new products and categories.

The top way retailers identify where to add to their product selections is by listening to customers, according to the NRHA data. Retailer panelists who discussed hot growth areas affirmed the research, while also offering other ideas for staying on top of what customers want. For example, Matt Woods, owner of Woods Hardware in Cincinnati, has taken contractors out for coffee to get their input on new products and categories to grow. “They’ve been my best resources for trends and niches,” he says. Joe Franquinha, owner of Crest True Value Hardware and Urban Garden Center in New York, also finds trade shows and industry publications helpful for staying abreast of new and growing trends. In addition to doing as Woods and Franquinha recommend, Jamie Gentner, chief operating officer for Center Hardware & Supply in San Francisco, looks to her knowledgeable staff and local artisans for insight into what her product mix should be.

HARDWARE RETAILING | February 2019

Finding Big Success Three successful retailers took the stage during the conference to provide in-depth discussions of how they have grown their businesses through expansion projects. Their keynote presentations spotlighted three approaches to growth—adding a new destination department; adapting a large operation’s business model to work in small locations; and creating a high-end customer experience that can be replicated in many new and acquired stores.

Blooming in the Garden: Crest Hardware Franquinha saw potential for a lawn and garden department at his family’s store and found a multifaceted approach for expanding the business. In 2006, Crest Hardware had a 4-foot section for lawn and garden products, such as fertilizer. The next year, Franquinha added live plants and hardscaping materials. In 2009, he oversaw construction of a 5,000-square-foot garden center.

Crest Hardware now has a 900-square-foot greenhouse that sells live plants year-round, in addition to the outdoor garden space. The garden department attracts customers who want houseplants, outdoor garden products, pottery and other products. Plus, the space is so beautiful, community members use it to host events, including weddings, parties, fundraisers and small concerts. Expanding the department has attracted new customers who are now loyal shoppers. “Test your ideas and take calculated risks,” Franquinha recommends.

Going Smaller: Hartville Hardware Hartville Hardware in Hartville, Ohio, is known for its 300,000-plus-square-foot store, but the company is growing by scaling down its business model to open smaller locations, starting with Hartville Hardware 2. Zach Coblentz, who is a division manager at Hartville Hardware, helps operate the main hardware store. During his presentation, Coblentz talked about a path to sustainable growth, which, for him, has included growing as a leader within his company and planning for purposeful business expansion. Opening a second hardware store that is 10,000 square feet, provides new opportunities, according to Coblentz. Hartville Hardware 2 opened during the third quarter of 2018 and will allow the company to experiment with omnichannel options. “We see it as a research and development store,” Coblentz says.

Executing a Vision: JC Licht JC Licht, a Chicago paint and decorating company with 38 stores, is on an ambitious growth trajectory. The reason is a person: Elliot Greenberg. In 2015, Greenberg bought the business from paint manufacturer Benjamin Moore and set lofty goals to become the best in the market and grow at a double-digit pace. He hired an executive team, set out to create an energetic company culture that could be duplicated at every store, looked for opportunities to add store locations and diversified the business. Greenberg’s vision is to turn JC Licht into a paint-selling powerhouse with the best contractor customer experience in the Chicago area. The plan includes a focus on hiring and making the business’s success personal for employees and customers. For example, he has grown his outside sales team from nine to 19 people and sends them to visit every paint contractor in the market. JC Licht has also hosted events that draw up to 200 contractors at a time.

Top: Zach Coblentz of Hartville Hardware describes his company’s new small store model. Bottom: Elliot Greenberg, owner of JC Licht, explains his vision for making company success personal for employees and customers.

February 2019 | HARDWARE RETAILING

By Renee Changnon, rchangnon@nrha.org

Hardware, Beer and Beats Vermont Retailer Serves Music, Drinks and Home Improvement Goods

hen customers enter Harry’s Hardware & The Den in Cabot, Vermont, they might be greeted by the sounds of musicians jamming and friends enjoying beers while they pick up items on their shopping list. While the hardware store has been in existence since the late 1800s, its most recent addition, The Den, has helped the business diversify its operations since it opened in the summer of 2017. The New England town is well-known for tourist attraction Cabot Creamery as well as the famous foliage people come from all over the world to observe in the fall. So creating a destination where tourists and locals could gather just made sense, says business owner Bobby Searles, who runs the operation with his wife, Stephany Searles, and their co-owners, Rory and Johanna Thibault. “Even before Rory and Johanna came on board, I kept thinking about ways we could make our store an even bigger gathering place in the community,” Bobby says. “I was considering adding a brewery or a coffee shop, but those ideas eventually led to the concept of a pub serving local Vermont beers and offering live music inside our store. That’s how The Den became a reality.”

HARDWARE RETAILING | February 2019

Joining Forces to Create a Destination Bobby and Stephany have owned and operated the town’s grocery store since they moved to Cabot in 2006. They relied on the hardware store in town for projects in their home and in their grocery business. So when the hardware store shut down in 2012, they knew the community had a great need. “Stephany and I reopened Harry’s Hardware in the spring of 2013,” Bobby says. “Our business is a fully functional hardware store and gas station, both of which our town was missing when the former hardware and gas station closed. However, it’s hard to be a profitable small town hardware store, so we knew expanding our store offerings was the next thing we needed to focus on.” Hardware, seasonal items, lawn and garden goods and gas from the pumps make up most of the sales at the 3,000-square-foot hardware store. They also have a sporting goods section with equipment for hunting and camping. To serve the out-of-towners who come searching for souvenirs, the store also sells T-shirts and artisan items, like maple syrup to top their pancakes at home, Bobby says. When the Thibaults moved to town, they were frequent shoppers at Harry’s Hardware. The couples quickly go to know each other, and they talked about ways to strengthen the business.

February 2019 | HARDWARE RETAILING

Harry’s Hardware & The Den in Cabot, Vermont, has been in business since the 1800s as a hardware store. Recently, the operation expanded its offerings with The Den, a space inside the store where customers can enjoy Vermont beers and listen to live music.

“The Den has been a great addition to the business. It’s an added income stream, and it has even boosted our hardware business.

”

—Bobby Searles, Harry’s Hardware & The Den Eventually they decided to become business partners. Rory and Johanna bought their share of the business in April 2017. “Before we could make The Den a reality, we knew we had to adjust the hardware store and trim down on areas that weren’t as important to make room inside the store,” Bobby says. “The four of us evaluated our inventory and what our customers were buying and not buying to decide what needed to stay or go.”

HARDWARE RETAILING | February 2019

Serving Local Flavor and Enjoyable Music In the summer of 2017, the owners launched The Den, which is located inside the store near the checkout counter. It features a 12-foot granite bar top and is built of hardwood, evoking a traditional Vermont style. The Den’s drink lineup includes Vermont craft beers on tap, as well as wine, and other nonalcoholic beverages, including locally made kombucha on tap. The owners decided to exclusively sell Vermont craft beer in an effort to support other local businesses. “We have had a really good response from community members and visitors,” Bobby says. “During the last busy fall foliage season, many visitors stopped by to check out our store, enjoy a beer and listen to music. The bed-andbreakfasts and other local businesses recommend visitors stop by Harry’s Hardware & The Den, and that has really helped us widen our reach.”

In addition to becoming a fun place for people to grab drinks and catch up, music became an additional offering at The Den that has continued to grow since the first musicians stepped on stage. “We thought it might be cool to have musicians come play here, but the live music organically became part of the experience here after we had someone ask to play here,” Bobby says. “We initially thought Saturdays would be the one day we’d have live music, but quickly people requested to play, and now we book up weeks in advance.” Additionally, on Sundays, the store has anywhere from two to 10 musicians that will come and jam together from noon until 2 p.m., which helps draw in customers who come enjoy the music and a beer while the musicians practice and improvise. “The Den has been a great addition to the business,” Bobby says. “It’s an added income stream, and it has even boosted our hardware business. People come to grab a beer and listen to music, and they’ll remember they had items they forgot to buy that they can get from us, or they might impulse shop.” Throughout the year, the business hosts a few large events, bringing live music, local artisans and food trucks to the community. “If you come in the summer, we host a music festival that has attracted over 500 people to our store,” Bobby says. “In the winter, we host an outdoor holiday market, with vendors selling local goods under tents with lights strung along. We set up heaters and hobo barrels to keep shoppers warm while they browse. Anything we can do create a gathering spot in our small town is huge.” For retailers who have considered other ways to diversify their business, whether adding a new niche or opening a bar, Bobby says it’s important to figure out how to keep customers coming back for more. “I used to hear from my customers, ‘I can get this item cheaper at Home Depot,’” Bobby says. “Now they tell me, ‘I like coming here because I can get what I need and drink a beer at the same time. We have strengthened our business by focusing on the hardware store items our customers actually want and showcasing The Den, our passion project that has really brought people together.”

Both locals and visitors of Cabot, Vermont, enjoy going to Harry’s Hardware & The Den to shop and enjoy drinks while listening to music. Once the owners (bottom right) decided to put an emphasis on live events, they trimmed down their salesfloor to the most important goods customers need.

Photo courtesy of Stefan Hard of Business Vermont

February 2019 | HARDWARE RETAILING

HARDWARE RETAILING | February 2019

By Todd Taber, ttaber@nrha.org

Virtual Vision Reimagine Retail Winner Explores Tech Opportunities

att Woods, president and CEO of family business Woods Hardware, says his favorite part of being an independent retailer is being able to decide what’s best for his company. “I like having the freedom to do what’s most important for the business,” he says. “I feel like I’m in control of my own destiny, and I get to see the direct impact of my business decisions.” Woods decided to roll the dice and enter last year’s Reimagine Retail program. The National Hardware Show® presents the annual program, which has awarded independent home improvement operators with $100,000 to make a business improvement plan a reality for their company. (In the March issue of Hardware Retailing, we will explore how the Reimagine Retail program has been updated in 2019.) As he stood on stage at the 2018 National Hardware Show in Las Vegas, Woods says that even after his name was called, it took a moment before he realized his business had won. Reality sunk in, and Woods began sorting through what his business would have to do to make his idea of a virtual e-commerce walk-through a viable addition to his business. His goal was to bring customers within his Cincinnati service area an entirely new way to shop.

‘This Is How We Beat Amazon’ In February 2017, one of Woods’ friends showed him a demo of a project his company had been working on. It was a virtual touring program, which allowed real estate agents and homeowners to virtually map homes for sale to provide a lifelike walk-through of properties on the market to prospective buyers.

February 2019 | HARDWARE RETAILING

Woods was instantly intrigued by the idea, but wondered if the touring technology could be used alongside e-commerce applications to bring new opportunities to his business. Woods envisioned a virtual walk-through of his business’s downtown Cincinnati location, which would allow customers to view online replicas of his store’s aisles and inventory and grab items to purchase online. Woods applied to the first Reimagine Retail program, but says he and his team hadn’t quite perfected their 30-second elevator pitch. “In that first year, I don’t think we had really refined our proof of concept,” he says. “We were still early on in our discussions, so I think we still had a few things to work out.” Woods perfected his plan for the virtual walk-through by adding a free same-day delivery component to the virtual walk-through. As he applied for the 2018 Reimagine Retail cycle, he framed his pitch around the word on the tip of every retailer’s tongue. “I started our second Reimagine Retail application with: ‘This is how we beat Amazon.’ The point of our virtual touring is that we want to be a micro e-retailer,” Woods says. “Within a 45-minute drive of Cincinnati are 3 million people, and I’m sure most of them use e-commerce, so why not focus our e-commerce on those 3 million people?” His strategy paid off—to the tune of $100,000. With the second Reimagine Retail program’s prize in his pocket, Woods returned to Cincinnati to make the business’s vision a reality.

First Steps, First Clicks Woods says finding time to devote to getting the project off the ground while still overseeing six busy retail operations was sometimes difficult. “It’s been a challenge to fully focus on this initiative without leaving the rest of the company behind,” Woods says. “This is a fun project, but it’s not a revenue-producing project just yet, so I’ve got to make sure every other part of the business is healthy and sustainable.” Woods says one of the first orders of business was to connect with the third-party IT provider that would build the business’s new website and incorporate e-commerce functionality into the virtual touring platform. To accommodate real-time inventory updates across the business, Woods also invested in new POS systems. To ensure associates were familiar with the new systems and that the store’s inventory is accurately displayed online, Woods says the store manager of his downtown Cincinnati location worked closely to train employees on the new machines. Although Woods’ idea of interactive e-commerce required major technological somersaults, combining it with on-the-ground, same-day delivery provided its own set of logistical obstacles. Namely, Woods had to find drivers to bring the online orders directly to customers within one business day. Woods plans to use store staff for deliveries and eventually hire full-time drivers. He expects

At Woods Hardware, customers can browse a full assortment of hardware and home improvement staples, alongside paint, live plants, grills and cleaning supplies. Now, customers can browse and buy items from the assortment using the virtual tour.

HARDWARE RETAILING | February 2019

At Woods Hardware’s downtown Cincinnati location, employees have benefited from extra training on new POS systems to facilitate the company’s new e-commerce opportunities.

to make some of the initial same-day deliveries himself to see that side of the project firsthand and ensure his business is providing seamless service from its online interface to its on-site delivery. By the end of December, Woods and his team had created a workable demo of the business improvement project for internal testing. By mid-February, Woods will open the program up for a small collection of customers to work out final bugs before the project officially launched to the public in March. Woods thinks DIYers will benefit from the virtual e-commerce and rapid delivery service his company is innovating, but it also provides many advantages to busy pro customers. “With same-day delivery, they don’t have to go off-site; they don’t have to pay someone $20 an hour to pick up a hammer downtown,” he says. “This program gives them the ability to focus on what they do best, and I think it adds a huge convenience factor. Even though we may be more expensive than a big box, we’re saving them time and money in the long run.”

As the 2019 Reimagine Retail program kicks off, Woods encourages retailers to think big and capture new opportunities. “Be passionate about your idea,” Woods says. “Being able to articulate why your vision is going to shake the industry is critical.” Woods says he will eventually roll out the e-commerce program to all Woods Hardware locations. But he isn’t sitting idle; he is already thinking of other new ways his company can innovate in 2019. “By the end of the year, we’d love to have a few of our stores be 24/7 operations,” he says. “Some of our best customers would have a key fob and be able to visit after hours to do self-checkout and get what they need.” For now, Woods Hardware is exploring its new e-commerce innovation and examining its impact. “We think this program is going to be a huge value-add for the business,” he says. “It’s all about seeing how we can pass that value to our customers.”

Delivering Value to Customers According to Woods, the journey from winning Reimagine Retail to launching his e-commerce program has been a great benefit for his company. “We’re still evaluating how the program is going to do. Does it raise business by 10 percent? Do 20 percent of customers adopt it? We just don’t know yet,” Woods says. “No matter what, this has been a huge marketing benefit. We got a lot of buzz from local press, so trying to pass that value on to our customers is really important.”

Are You Next? This year, the Reimagine Retail program has been reimagined itself. Four independent retailers could win $20,000 to spend at the National Hardware Show® and benefit from an additional scholarship to fund travel. For more information on this year’s program, visit nationalhardwareshow.com and look ahead to the March issue of Hardware Retailing.

February 2019 | HARDWARE RETAILING

HARDWARE RETAILING | February 2019

By Chad Husted, chusted@nrha.org

How I Did It ... Driving Sales in a Small Space

ig or small, retail businesses can be compared by one metric: sales per square foot. At Kendall’s Ace Hardware in St. Paul, Minnesota, that number is the guiding light for success. With two locations in St. Paul, Kendall’s Ace serves a variety of consumer groups. Its east side location, situated in a lower-income neighborhood, moved to a smaller location several years ago and downsized its square footage from 7,500 to 5,300 square feet. After owner Kendall Crosby made changes to refocus the store, it was able to achieve a high of $422 in sales per square foot in 2018. According to the North American Retail Hardware Association’s (NRHA) 2018 Cost of Doing Business Study, a high-profit store averages $240 in sales per square foot, making Kendall’s Ace Hardware nearly double the industry average for top independent hardware and home improvement stores. Crosby has done this by focusing on inventory management, putting department managers in charge of their own buying and identifying core hardware departments that can have the most impact on his sales. “We first moved this store’s location in order to have better visibility, but the smaller salesfloor was giving us problems,” Crosby says. “With a smaller area for products, we realized we were selling the wrong items for this neighborhood.”

Although other hardware stores were selling high-ticket grills, lawn mowers and houseware items, Crosby was watching those same goods take up valuable space in his store and not be purchased by customers. To fix this, he began buying core hardware categories like fasteners, hand tools, hinges, bolts and paintbrushes. On these categories, Kendall’s Ace Hardware is achieving 51.7 percent gross margin rate on hardware items and is on pace to achieve 96 percent accuracy rate on its inventory in 2019. “We decided to make our inventory numbers a priority. Not only no empty hooks, but no thin hooks with just one or two products on it. This store will be filled, because we can’t miss a sale when we’re selling smaller items,” Crosby says. “You have to spend money to make money, and we’re committed to making sure our inventory levels reflect how much effort we put into our stores.” To achieve those inventory management numbers, Crosby has put a larger emphasis on training and employee retention. He has seven department managers, all of whom do their own ordering and maintain their own inventory levels. This keeps any one person from being overwhelmed and not being intimately aware of their department inventory level. “At most businesses, when they need to cut costs, they cut payroll,” Crosby says. “I decided to increase training and increase sales through that. It’s made all the difference.”

Kendall Crosby Kendall’s Ace Hardware 2 Locations in St. Paul, Minnesota

Problem Resolved Maximizing a small salesfloor and driving sales in a lowerincome neighborhood. Achieved a high of $422 in sales per square foot in 2018, nearly twice as much as high-profit stores reported in the 2018 Cost of Doing Business Study.

Key Takeaway “Your store needs to be bursting with inventory when you sell the way we do. The worst thing you can see in a store is an empty hook, and second-worst is one item on a hook. Think about it like a grocery store: If you see one box of crackers sitting on an endcap, you’re not likely going to buy it. The assumption is something is wrong with it. We can’t let that happen.” —Kendall Crosby

Future Plans Kendall’s Ace Hardware plans to increase its gross profit by furthering education efforts for all of its employees.

February 2019 | HARDWARE RETAILING

Newsmakers

NRF Executive Discusses Loss Prevention

ost independent retailers would say business is personal. Whether it’s stocking the shelves with the latest products or training employees to provide next-level customer service, retailers are doing more than lining their pockets. However, if a retailer isn’t aware of the threats that surround their business on a daily basis, all their hard work will hit them where it hurts—lost profit dollars. Hardware Retailing spoke to Bob Moraca, vice president of loss prevention for the National Retail Federation (NRF) to get a better understanding of internal and external theft in a retail operation and why retailers need to protect their business from all sides. Hardware Retailing (HR): Why should retailers prioritize loss prevention? Bob Moraca (BM): Retail store owners put their lifeblood and sweat equity into their business. They want to create a profit to take care of their family and employees. Establishing a strong loss prevention procedure will help avert profit loss to retail criminals. Loss prevention can’t be ignored.

Upcoming Events February 7-9 HDW Inc. Spring Market New Orleans

8-10 Florida Hardware Spring Market Orlando, Florida

15-17 HR: What can retailers do to address internal theft? BM: Retailers should invest in a good digital closed-circuit security camera system. These aren’t as expensive as they were in the past. They also provide peace of mind, as retailers can do a remote look-in to see what’s going on even when they’re away from the operation by viewing a live video recording through an app on their phone. If an employee argues the retailer doesn’t trust them, that’s because they can’t give them full trust. In fact, a retailer may bring someone in, train them and treat them like family only to discover the employee is committing fraud. I encourage owners to have tight control of their operation no matter who they employ. Do a local background screening on all new hires. Always rely on dual control for things like finances. Don’t have the same person who is the bookkeeper rectify the books and checks. By utilizing two people for a system of checks and balances, you can better prevent internal theft. They can also use their POS system to track employees ringing up sales, showing red flags like voids and returns or other differences between employees.

Monroe Hardware Spring Market Myrtle Beach, South Carolina

HR: How can retailers protect their business from external theft? BM: The best thing a retailer can do to prevent external theft is to think globally but act locally. I’d recommend building a relationship with local law enforcement. Offer police officers a discount so they visit more often. By building these kinds of relationships, officers might stop by in uniform, sending a message to potential thieves. Using electronic article surveillance on items like power tools is another way to prevent theft. If you make it difficult for thieves to steal, they’ll go elsewhere.

March

HR: How can retailers track loss prevention? BM: Retailers need to understand inventory control and their shrink rate. It should ideally be under 2 percent of sales. Perform an audit to determine where losses and potential vulnerabilities are in your operation. Keeping track of these details will ensure you know everything that’s happening in your business.

Bob Moraca is the vice president of loss prevention for the National Retail Federation (NRF). He is responsible for directing NRF’s loss prevention and asset protection research, initiatives and programs including NRF’s annual loss prevention conference, the NRF Loss Prevention Advisory Council and the NRF Investigators’ Network.

HARDWARE RETAILING | February 2019

19-21 NAHB International Builders’ Show Las Vegas

21-23 Orgill Spring Dealer Market Orlando, Florida

22-24 True Value Spring Reunion Dallas

2-3 PACOA Spring Market Flushing, New York

21-23 Blish-Mize 2019 Spring Buying Market Overland Park, Kansas

26-28 Ace Hardware Spring 2019 Convention & Exhibits Orlando, Florida

Fine more events online at TheRedT.com/calendar. To have your event added, contact Kate Klein at kklein@nrha.org.

Newsmakers UNITED STATES

Hardware Distribution Warehouses Inc. to Close Distribution Facilities

Sears Chairman’s Hedge Fund Wins Bankruptcy Auction ESL Investments, the hedge fund managed by Sears chairman Edward Lampert, has prevailed in a bankruptcy auction to save Sears from liquidation. The bid is valued at more than $5.2 billion and is more than $150 million higher than a previous bid from Lampert. If the bid is approved by bankruptcy judges, the proposal would save approximately 45,000 employee jobs and keep 425 locations open across the U.S.

On Jan. 4, Hardware Distribution Warehouses Inc. (HDW) announced the closure of both its warehouses. The company operated warehouses in Marshall, Texas, and Greenwood, Mississippi. HDW serves more than 2,000 retailers across the southern U.S. Jimmy Horne, vice president of corporate communications at HDW, says all retailers were informed of the warehouse closures on Dec. 17. He says the company is now in the process of liquidating all assets.

Lowe’s, Home Depot’s Differences Began Early Home Depot is about 30 years younger than Lowe’s, but is now by far the home improvement industry leader in overall sales. In a Business Insider article, managing director of equity research at Wedbush Securities Seth Basham outlines key differences between the two big-box home improvement rivals. Home Depot earns more store sales than Lowe’s, but Lowe’s lower sales and operational inefficiencies are in some part “a function of how the company grew up,” Basham says.

Home Depot’s total sales were $100.9 billion in fiscal 2017 and Lowe’s total sales were $68.6 billion in fiscal 2017, according to company annual reports.

AD INDEX Ace Hardware............................................................. 17 www.acehardware.com; 630-990-6900

Imperial Blades........................................................... 18 www.imperialblades.com; 800-743-9844

Phifer ......................................................................... 7 www.phifer.com; 800-841-9473

Ajax Wire Specialty Co. .............................................. 31 www.ajaxwire.com; 855-966-2529

IPG....................................................French Door Cover www.itape.com; 888-898-7834

PRO Hardware .................................................... 70-71 www.prohardware.com; 303-792-3000

Allway Tools ........................................................ 35, BC www.allwaytools.com; 718-792-3636

Iron & Oak .................................................................. 65 www.ironandoak.com/hrm; 866-281-4509

ProBarrow................................................................ 65 www.gnedi.com/hrmpb; 866-425-3442

Ancra Cargo.......................................................... 19, 69 www.ancracargo.com; 800-626-8353

Ironclad Performance Wear Corp............................... 23 www.ironclad.com; 844-200-5664

Radia .......................................................................... 9 www.radiaproducts.com; 800-221-1083

Bengal......................................................................... 36 www.bengal.com; 225-753-1313

Lifetime ................................................................. 20-21 www.lifetime.com; 801-882-1326

Red Lion Products ..................................................... 3 www.redlionproducts.com; 844-250-4981

Better Ultimate Adhesive ........................................... 37 www.betterglue.com

Lighthouse for the Blind............................................. 48 www.rapidfix.com; 800-542-3697

Rust Patrol ................................................................. 1 www.rustpatrol.com; 713-244-8755

Brave .......................................................................... 49 www.braveproducts.com/hrm; 866-281-4421

Lumax......................................................................... 28 www.lumax.com; 844-660-6876

Scepter ....................................................................... 51 www.scepter.com; 855-857-3252

Coles Wild Bird........................................................... 47 www.coleswildbird.com; 877-426-8882

MARS .................................................................. 11, 75 www.coastair-ac.com

Sika Corporation ......................................................... 91 usa.sika.com; 800-933-SIKA

Do it Best Corp............................................................. 5 www.independentsdoitbest.com; 888-364-8237

Maxim......................................................................... 49 www.maximmfg.com/hrm; 888-376-0849

Southwire ................................................................... 57 www.moonrays.com; 888-770-5155

Dosko ......................................................................... 65 www.dosko.com/hrm; 866-418-0474

Midwest Fastener ................................................. 32-33 www.fastenerconnection.com; 800-444-7313

SureCan USA.............................................................. 68 www.surecanUSA.com; 801-827-0500

Dunn Mfg. .................................................................. 52 www.dunnmfg.com; 800-868-7111

Mi-T-M Corporation .................................................... 52 www.mitm.com; 800-553-9053

Turfco ......................................................................... 65 www.gnedi.com/hrmtr; 866-397-8648

ECI Software Solutions ......................................... 12-13 www.ecisolutions.com; 800-588-5128

Mr. Longarm............................................................... 48 www.mrlongarm.com; 800-821-3508

United States Hardware Manufacturing Inc............... 50 800-221-8476

Franmar ...................................................................... 50 www.franmar.com; 800-538-5069

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

Wastequip .................................................................. 53 www.toter.com; 800-424-0422

Howard Products Inc.................................................. 27 www.howardproducts.com; 800-266-9545

NRHA Young Retailer of the Year ............................. 38 www.nrha.org/yroty

Woodland ................................................................... 26 www.pinecar.com; 573-346-5555

HSI.............................................................................. 29 www.SLD-HSI.com; 800-334-5625

Orgill Inc. ....................................................... 54, 94-IBC www.orgill.com; 800-347-2860

Wooster Brush Company ..................................... 15, 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.

HARDWARE RETAILING | February 2019

CANADA

BMCC Makes Gains With Recruitment Platform

Housing Markets Expected to Slow in Coming Years, With Renovations Staying Stable After strengthened activity in 2016 and a 10-year recorded high in 2017, housing starts in Canada slowed through 2018, new data reveals. That downward trend is forecast to continue into 2020, according to a report from Canada Mortgage and Housing Corp. The slowdown will be “more in line with a moderating economic outlook and demographic conditions,” particularly as income and job growth slows, the report states. Notably, home renovation activity is expected to grow in the years ahead.

According to Denis Melanson, chair of the Building Material Council of Canada (BMCC), the aging workforce in the lumber and building materials channel is inhibiting growth. According to his data, 25 percent of the workforce in lumber and building materials is age 55 and over. That figure, he says, should serve as a wake-up call for the entire industry. The BMCC has been rallying sponsor support and investing in recruitment tools to attract a new generation of workers into professions associated with building materials. Melanson says an online job board launched in June 2018 now serves as the “go-to website” for the industry.

Castle Unveils Updated Website Buying group Castle Building Centres Ltd. has redesigned its website to achieve a mobile-friendly design and offer a selection of roughly 30,000 products from Orgill’s catalog. The website (castle.ca) also includes a store locator, which can guide customers to the nearest location.

For the full story on these briefs, head over to TheRedT.com/0219-news. To read the Canadian briefs, visit hardlines.ca/hardwareretailing. For the latest independent home improvement news, interviews, trends and videos, visit hardwareretailing.com.

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February 2019 | HARDWARE RETAILING

Last Word

Dresses, Hardware and Other Legacies

ussey’s General Store has a history of tradition-making. The “everything store,” as manager Kristen Ballantyne calls it, opened in 1923 in Windsor, Maine. Locals have relied on the business for hardware, groceries and clothing for decades. Even the founder’s son and Ballantyne’s grandfather, Elwin Hussey, is part of the tradition. He still works at the store at age 95. But one of the traditions that attracts visitors from throughout the state and inspires shoppers to pull out their cameras is the store’s bridal department. Brides who buy their dresses at Hussey’s often head to the store for pictures on their wedding day. Once, an entire wedding party—bride, groom, bridesmaids and groomsmen, all decked out for the big occasion—drove to the store on four-wheelers. They jumped off and posed for pictures, drawing the attention of shoppers who also snapped photos of the group.

Guns, Gowns, Cold Beer The Hussey’s General Store sign by the street describes the store’s product assortment as guns, wedding gowns and cold beer. However, Hussey’s largest department is hardware, which takes up the entire basement of the 30,000-square-foot store. The business sells groceries on the main level and operates a gas station outside. On the top floor of the two-story building is a 1,500-square-foot bridal shop that neighbors the clothing department and the sporting goods section. The little boutique has sold wedding gowns since 1955 when store co-founder Mildred Hussey decided to sell formalwear. These days, Ballantyne oversees all things bridal at the store, paying attention to fashion and working to stay in tune with the styles her customers want.

Making Memories The bridal department is not a joke, as many customers think before they walk into it. Rather, it is a serious enterprise with large racks full of bridal gowns. The store also sells bridesmaid dresses, mother-of-the-bride dresses, shoes and jewelry.

Brides-to-be often come and tell stories about how they’re following family tradition because their mothers or grandmothers bought their wedding gowns at Hussey’s. 92

HARDWARE RETAILING | February 2019

Wedding photos by Courtney Elizabeth Photography Kristen Ballantyne, whose family operates Hussey’s General Store, posed for wedding pictures at the store with her husband Andrew.

The shop recently hosted a trunk show with previews of a new dress line from a well-known designer. Ballantyne also chooses dresses to have professionally modeled for a Maine wedding magazine and has set up a booth at many bridal shows throughout the state. Ballantyne is all business about her bridal operation, but that doesn’t mean she doesn’t see the humor in buying a formal dress where customers can also buy a jug of milk and a pound of nails. In fact, when she got married in a Hussey’s dress in 2016, Ballantyne joined in on the fun that many customers have and went to the store wearing her bridal finery. She and her husband Andrew posed for wedding pictures with a gun from the sporting goods department. She also showed off a six-pack of beer with her lacy Hussey’s dress. Ballantyne loves that the store is a wedding tradition for many Maine brides. She thinks her great-grandmother would have enjoyed seeing how the business has developed since 1955. Brides-to-be often come and tell stories about how they’re following family tradition because their mothers or grandmothers bought their wedding gowns at Hussey’s. “It makes the experience that much more meaningful,” Ballantyne says. “I think if brides can make that personal connection while wedding dress shopping, it’s extra special to them.”

Hussey’s General Store in Windsor, Maine, is a destination for its bridal shop, which Kristen Ballantyne oversees. Ballantyne (top) got her wedding dress at the store.

February 2019 | HARDWARE RETAILING

Bobby Fuller Fuller & Son Hardware Arkansas

“Orgill’s people are smart and they care. You can call them any time and they always know who you are.”

Orgill Makes Success Personal Reliable Relationship, Sharp Pricing

Why We Like Working With Orgill: • Competitive pricing • Deep discounts and new items at the Dealer Markets • Personal relationships

Watch the video to learn how buying from Orgill makes Fuller & Son more successful!

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

Innovation Since 1935

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