Hardware Retailing February 2020

Serving Hardware, Home Center & Building Material Retailers

Going Big on the Details in Outdoor Living Page 44

“We try to hire people who want the store to be better tomorrow than it is today.”

Hire Power Level Up Your Staffing Strategies Page 36

Volume 218 • Issue 2 • February 2020 • hardwareretailing.com

Orgill’s New President and CEO Shares His 2020 To-Do List Page 54

WEBSITE

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“We try to hire people who want the store to be better tomorrow than it is today.”

Hire Power Level Up Your Staffing Strategies Page 36

Volume 218 • Issue 2 • February 2020 • hardwareretailing.com

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Serving Hardware, Home Center & Building Material Retailers

Going Big on the Details in Outdoor Living Page 44

Orgill’s New President and CEO Shares His 2020 To-Do List Page 54

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Serving Hardware, Home Center & Building Material Retailers

Going Big on the Details in Outdoor Living Page 44

“We try to hire people who want the store to be better tomorrow than it is today.”

Hire Power Level Up Your Staffing Strategies Page 36

Volume 218 • Issue 2 • February 2020 • hardwareretailing.com

Orgill’s New President and CEO Shares His 2020 To-Do List Page 54

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Headquarters Your NRHA Team

136 N. Delaware St. #200 Indianapolis, IN 46204 317-275-9400 nrha@nrha.org | nrha.org

@NorthAmericanRetailHardwareAssociation @nrha_official North American Retail Hardware Association @nrha_official

OUR MISSION

The North American Retail Hardware Association (NRHA) helps independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers.

NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts David Dishke, Grand River Home Hardware, Caledonia, Ontario Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina Matt Woods, Woods Hardware, Cincinnati, Ohio SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN TJ Comstock, Northwest Hardware LLC, Billings, Montana

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

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

At NRHA headquarters, there is a team of dedicated people who work every day to uphold the association’s mission. In this space, we’ll ask a few of them to answer a question of the month so you can get to know us a little better.

What’s the best part of your job?

“I enjoy hitting the road to see the amazing variety of retailers in this industry.”

Jesse Carleton Training Manager & Editor

HARDWARE RETAILING | February 2020

317-275-9400, editorial@nrha.org

EXECUTIVE VICE PRESIDENT & EXECUTIVE EDITOR Dan Tratensek MANAGING EDITOR Melanie Moul, mmoul@nrha.org PROFILES EDITOR Kate Klein, kklein@nrha.org ASSISTANT EDITOR Todd Taber, ttaber@nrha.org PRODUCTION EDITOR Hans Cummings, hcummings@nrha.org GRAPHIC DESIGNER Autumn Ricketts WEB DEVELOPER Kevin Trehan PRODUCTION MANAGER Nancy A. Vondersaar SALES & PRODUCTION ASSISTANT Freda Creech

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

NRHA SALES

317-275-9400, sales@nrha.org VICE PRESIDENT OF SALES & PUBLISHER Kevin Hohman, khohman@nrha.org

“I love meeting retailers and getting to hear the neat stories behind all of their stores.”

Katie McHone-Jones Event Manager & Retail Support “I love to travel the country and present our platform to current and prospective clients.”

Brad Lyons Northern Regional Director

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

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

MEMBER SERVICES

800-772-4424, nrha@nrha.org TRAINING MANAGER & EDITOR Jesse Carleton, jcarleton@nrha.org RETAIL OUTREACH COORDINATOR Renee Changnon, rchangnon@nrha.org

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

All other countries $100.00 year. (Air Mail $60.00 year additional).

Single copy $7.00. The Annual Report issue can be purchased for $30.00.

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

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

All editorial contents copyrighted 2020 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher.

REPRINTS: For price quotations, contact the Editorial Department at 317-275-9400 or fax requests to 317-275-9403. Printed in the USA.

2

EDITORIAL, DESIGN & PRODUCTION

EVENT MANAGER & RETAIL SUPPORT Katie McHone-Jones, kmchone-jones@nrha.org

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

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

Dear Dealers: Happy New Year! It’s always exciting when we drive in to the New Year with fresh ideas and renewed energy.

For STIHL, customer satisfaction remains our primary focus and we continue to make long-term investments in our facilities, products, distribution and processes to ensure that STIHL customers have an experience they cannot find at Big Box stores or Amazon.

You, the STIHL dealer, play a critical role in this experience. It is why we continue to invest in dealer training, marketing and online resources. We know that even as online shopping increases, customers still value the personal experience only you can deliver.

Remember, more than 90% of retail purchases in America occur at brick and mortar locations and you now have the ability to offer the Buy Online. Pick Up in Store option for STIHL products.

Your dedication to customer satisfaction does not go unnoticed, as evidenced by the more than 38,000 dealer reviews STIHL dealers have received on our website, earning an average rating of 4.8 stars with more than 97% of customers saying they would recommend their STIHL dealer. While we have always known this was your unique advantage in the marketplace, and why we still don’t sell through big box stores or Amazon, it’s wonderful to hear our customers confirm it.

So congratulations and thank you. We sincerely appreciate your trust and confidence as we pursue superior customer satisfaction and increase STIHL dealer sales. Together we continue to win!

Best wishes for a prosperous year.

Sincerely,

BJOERN FISCHER – PRESIDENT, STIHL INC.

Contents

FEBRUARY 2020 | VOLUME 218 | ISSUE 2

Departments On the Web . . . . . . . . . . . . . 06 Editorially Speaking . . . . . . . 08 Taking Care of Business . . . . 10 NRHA News . . . . . . . . . . . . 14 Trends . . . . . . . . . . . . . . . . . 20 New Products . . . . . . . . . . . 22 COVER STORY

36

With unemployment at historic lows, retailers consistently need to find new strategies to attract staff. See what works for Heuser Ace Hardware and two other retailers, and learn trends from the Society for Human Resource Management.

CATEGORY SPOTLIGHT . . . . . . . . .

44

SUCCESSION PLANNING . . . . . . . .

62

Outside the Ordinary

Do the Paperwork

Creative setups bring customers into Palm Springs Ace and Fruehauf’s, a high-end outdoor furniture store.

See the details that help them sell.

There are a variety of legal documents you need to have on hand as you prepare to enter or exit a business.

We’ll look at the records you should add to your files now.

RESOURCE REVIEW . . . . . . . . . . .

“Our team knows what it takes to be successful at retail and have lived it, experiencing both successes and failures.”

—Boyden Moore, President & CEO, Orgill Inc. INDUSTRY NEWS . . . . . . . . . . . . .

54

A New Day for Orgill Hardware Retailing talked to Orgill’s new president and CEO, Boyden Moore, about the company’s approach to growth in a new decade.

ASSOCIATION EVENT . . . . . . . . . .

56

Exploring the Trends Retailers discussed applying technology trends in-store and adapting to a diverse customer base at the North American Retail Hardware Association’s 2019 State of Independents Conference.

4

Checkouts . . . . . . . . . . . . . . 32

How Are You Hiring?

HARDWARE RETAILING | February 2020

64

You Need to Read This Book In this series, retailers recommend the resources that have helped them improve their approach to business.

Learn what Brian Kabat, owner of Kabat’s Ace Hardware in Arizona, gained from the book “The Servant”

by James C. Hunter.

Newsmakers . . . . . . . . . . . . 66 Last Word . . . . . . . . . . . . . . 68

More than

700

people attended Handyman Home Hardware’s annual pancake breakfast.

On the Cover In Bluffton, South Carolina, Bobby Heuser, president of Heuser Ace Hardware, takes a holistic approach to hiring.

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On the Web

OPERATIONS PRODUCTS

Bet Big on New Products Take a tour of the Kitchen & Bath Industry Show in Las Vegas with a complete photo tour of the event.

Visit TheRedT.com/kbis-tour to discover new kitchen and bath products for your business.

A Helping Hand in Hiring Hardware Retailing has a variety of hiring and employee management resources for you to use to improve your employment process. From interview guidelines to in-depth employee review worksheets, head to TheRedT.com/hiring to see them all.

“

In this market, you have to be proactive and assertive. If a store owner wants enough staff to function, they’re going to need to recruit.”

—Tony Lee, Society for Human Resource Management

ASSOCIATION EVENTS

Independents in Review Recap the 2019 State of Independents Conference with exclusive video clips from the dynamic retailer panels that highlighted independent achievement. See the videos now at TheRedT.com/soic-video.

PROFILE

PODCAST

A Retail Advocate

The Ace Advantage

In addition to overseeing a store full of outdoor furniture, Mariah Maydew is also a fierce voice in support of independent retail. Learn more about how she helps push the industry forward and inspire the next generation at TheRedT.com/retail-voice.

The latest episode of “Taking Care of Business” features a conversation with Ace Hardware president and CEO John Venhuizen. Stream it now by visiting TheRedT.com/pod.

MERCHANDISING

Merchandising Matters Want some merchandising inspiration for your outdoor furniture assortment? Visit us at TheRedT.com/outdoor-ideas to see more merchandising marvels from two retailers bringing new possibilities to the category.

6

HARDWARE RETAILING | February 2020

Stay Connected @HardwareRetailing @hardwareretail

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ER R EG I S T E O N LI N !

W O N

Editorially Speaking

Reset Your Hiring Process The People You’re Looking for May Be Right in Front of You

W

hen you reset a department or even your entire store, you likely are doing it in part to make it more appealing to shoppers. Installing brighter lights and updating inventory make the store more navigable. These types of updates are proven to improve sales numbers, and that’s not surprising. When it’s easier for shoppers to find the items they’re looking for, and they can see more of what you offer, they are likely to add more to their cart.

Believe it or not, you can—and should—apply the same philosophy to hiring.

When is the last time you revised your job descriptions, updated the About Us page on your website or developed a new job application? If your answer is, “It’s been a while,” or even more frightening, “I don’t have any of those things. I just always have a ‘Now Hiring’ sign in my window,” then now is the time to reset your approach.

At my regular grocery store, many of the cashiers’ default conversations with me seem to be how long they have been at work or counting down until they can clock out. I’ve even had cashiers completely ignore me while ringing up my items to talk to a co-worker about their next break. I don’t work at this grocery store, but I suspect it’s not a great place to work if the employees can’t wait to leave. I imagine job-seekers have that impression, too, and the store likely loses out on eager applicants because the employees don’t seem to enjoy their jobs.

If you want to attract people to work at your business, you need to create an attractive place to work.

According to researchers at the University of Wisconsin, smiling is contagious. When you interact with someone who is happy or smiling, you “try on” their facial expressions to see how it feels without even realizing it. Unfortunately, the researchers found the same to be true of frowns.

In the same way you “shop” your store to see how a customer perceives the merchandising and flow, I encourage you to walk your store to see what impression your staff gives your shoppers. When cashiers aren’t ringing up customers or when floor associates are stocking, do they still look happy to be there? What types of conversations do you overhear?

The excitement your employees have for their jobs and your company could be the key to finding engaged workers. Just ask Bobby Heuser, president of Heuser Ace Hardware, who talks about the strategies he used to staff his second store starting on Page 36. Heuser says two shoppers who later became employees were so excited about the atmosphere in the store that they asked about job openings in regular conversation with employees.

Now, you can’t ask for excitement about your company for nothing.

You need to create an atmosphere that makes people want to work there and share how great it is. In the same story, learn about how other retailers show potential employees the career opportunities and the supportive culture that exist in this broad industry.

One thing that doesn’t create a strong workplace culture is the perception that a company can’t keep people on staff.

So, if you’ve gotten to the end of this column and you haven’t taken down that “Now Hiring” sign that’s been in the window for the last decade, you should do that now. Start your new approach to hiring with a clear view.

“You can’t ask for excitement about your company for nothing. You need to create an atmosphere that makes people want to work there and share how great it is.

8

HARDWARE RETAILING | February 2020

”

Melanie Moul Managing Editor | mmoul@nrha.org

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Taking Care of Business

So Is This How It Ends?

Create Your Succession Plan Today to Go Out With a Bang

F

ar be it for me to be melodramatic about anything, but I’ve been thinking a lot lately about the future of independent retailing. Probably because I have been asked the question quite a lot lately.

Many people who aren’t familiar with this industry like to ask, “How can independent retailers survive in the face of what’s happening with Amazon and Home Depot?”

To answer this, I often illustrate all the major challenges independent home improvement retailers have overcome in the past. I also like to cite the fact that, unlike other retail channels such as drugstores or toy stores, independent home improvement retailers still number in the tens of thousands and are collectively an innovative and progressive lot.

It seems like everyone who is not affiliated with this industry is waiting for the proverbial shoe to drop. What will the category killer be for independent home improvement retailing?

In all honesty, I don’t think there is a big shoe on the horizon. I truly believe that independent retailers can adapt to new competitors, whether they be online or brick-and-mortar.

But here’s where the melodrama comes in: The decline of the independent home improvement retailer may not come at all in the form of a category killer or a change in the way consumers shop.

It may come from a self-inflicted injury.

To quote T.S. Eliot, “This is the way the world ends. Not with a bang but with a whimper.” (And who said studying English at a private university would never pay off?)

So, why do I say this?

Let’s face some simple facts. None of us—but more importantly, none of you—are getting any younger. Yet year after year, we conduct surveys that show us the number of independent retailers who have a succession plan in place for their operation is stuck around 50 percent.

The North American Retail Hardware Association, Hardware Retailing, the wholesalers, industry research groups

and service providers have been discussing this concerning trend for years and urging retailers to take action. Yet here we are.

I understand there are a lot of reasons—or excuses—not to draft out a succession plan. You think you have succession planned out in your head. Your son or daughter will suddenly decide they want to take over the business. Or, you simply have too much to do on a daily business that there is no time to start thinking about succession.

I can’t tell you how many times I have talked to individuals who have told me these same things when they are desperate to find an answer for how to sell their business when their halfbaked plans didn’t work out.

This topic is so important to the long-term health of our industry that this entire year, Hardware Retailing will be running articles about succession planning in every issue.

It’s our hope that keeping this topic in front of you regularly and providing you with insights into how to work your way through a succession plan that addresses the multiple contingencies that can impact your operation will spur you into action.

To read this month’s installment in the succession series on the documents you should prepare today, turn to Page 62.

After reading this, I implore you to begin addressing your own succession plan, no matter what stage of your career you are in.

After all, it’s probably better to put in a little hard work now than join the chorus of whimpers later.

“The number of independent retailers who have a succession plan in place for their operation is stuck around 50 percent.

10

HARDWARE RETAILING | February 2020

”

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

INDUSTRY DISRUPTERS How Today’s Leaders Are Winning the Retail Game

NRHA All-Industry Conference May 5-7 | Las Vegas

To thrive in today’s market, retailers need to be future-focused and strategic. Join us for insights from wholesale executives, successful retailers and industry experts who know disruption is the key to winning. Learn more at nrhaconference.com.

DOUBT IS Out.

DO IT BEST HELPS MEMBERS LAUNCH NEW LOCATIONS WITH CONFIDENCE. More customers, more opportunity. More risk, more challenges. Expanding your business with a new location can be a time of promise and peril. But as member-owners Tammy and Scott Moore discovered, Do it Best is ready to support you every step of the way.

The Moores started by collaborating with Do it Best on a thorough demographic and market analysis to confirm their chosen location was positioned for growth. Next, they worked with our Signature™ Store Design team to create the ideal store from the ground up. Guided by our market analysis, Tammy and Scott stocked their new location with comprehensive hardware and rental departments, along with a deep selection of outdoor living and home décor, including The Color Bar™ interactive paint department. Since their grand opening, Mountain View Home & Hardware has exceeded expectations, and the Moore family is already looking forward to their next location.

“Do it Best gave us the confidence that we had it right – they led us through the process and really took the pressure off.”

Scott Moore Mountain View Home & Hardware Patrick Building Supply

» Partner with Do it Best to grow your business without the worry.

Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestretail.com.

NRHA News

Words From Young Retailer of the Year Honorees

O

ver the last 24 years, the North American Retail Hardware Association (NRHA) has recognized the achievements of more than 150 up-and-coming home improvement industry leaders through the Young Retailer of the Year award program.

Honorees distinguish themselves through their career achievements, hardware education and commitment to their communities. Read what being a Young Retailer of the Year honoree means to past winners here.

14

HARDWARE RETAILING | February 2020

Don’t Miss the Deadline Sound Like Someone You Know?

2020 Nominations Are Due Nominations for the 2020 Young Retailer of the Year are due by Feb. 28. Visit nrha.org/yroty for more information or to nominate a young retailer.

Trainer’s Corner: 2 Ways to Use Training

A

well-rounded training strategy should include a variety of techniques. You may want employees to take formalized courses, but also spend time on the salesfloor with a mentor to learn a new skill.

Regardless of what your training program may look like, NRHA has resources to help. Here are two ways you can create an effective training program this year.

Group Learning With Trainer’s Toolbox NRHA’s Trainer’s Toolbox series makes it easy to include training in your next staff agenda. Created for use in a group setting, the series covers a variety of topics, including merchandising, selling skills, product knowledge and operations.

A typical lesson includes Trainer’s Notes, which spell out everything you need to know to lead a group discussion. Lessons can also include a video or printable document to can use as a visual aid while teaching. New lessons are released periodically and are free to all retailers.

Individual Study With Online Training While the Trainer’s Toolbox is intended as a quick-hit overview of important training topics, NRHA’s Basic Training Courses series provides a solid foundation of product knowledge and retail skills every employee needs to be successful.

The Basic Training Course in Hardware Retailing and the Basic Training Course in Building Materials Retailing cover products commonly sold in core hardlines departments. Each course offers tips for add-on sales and answers to frequently asked questions for categories throughout the store.

These courses can be accessed through NRHA’s online training portal and include a testing function so you can keep up with the progress of each employee.

These Basic Training courses, along with several other courses covering retail knowledge, are available to NRHA Training Members.

To access these resources, log in to your training account at nrha.org/training. If you’re not yet an NRHA Training Member, call us today at 800-772-4424 to sign up.

Time for a Refresh On Page 44, read how two retailers are successfully selling outdoor furniture. You can also be successful in this category by making sure you are taking advantage of all the add-on sales that can go along with the sale of each chair or table, from pillows to grill accessories.

Find the free Trainer’s Toolbox lesson called “Patio Furniture Add-on Sales” online at nrha.org/trainers-toolbox.

February 2020 | HARDWARE RETAILING

15

NRHA News

How Retailers Are Using Instagram

N

RHA follows and interacts with more than a thousand home improvement retailers via Instagram. It is a great tool to communicate with customers, so it’s easy to see why so many retailers are using it to stand out and show off their brand. Here are a few tips based on what NRHA sees from the successful operators we follow on the platform.

Put a Face to the Business Customers don’t want to buy from a faceless company. They want to buy from people they know and like.

Create content that shows off your company’s culture and people and the excellent customer service your store provides. Include photos of staff, animal visitors or even content from customers, like testimonials or product reviews.

Create Original Content Create and share original content. Personalized content will help you better speak to your customers because each store is unique and has its own customers and niche products.

16

HARDWARE RETAILING | February 2020

NRHA News Be Consistent Possibly the most important rule when it comes to managing social media content is to post content regularly. Don’t forget to engage with customers through follows, likes, comments and messages. Social media is a conversation, not a one-way street.

Create an Instagram-Friendly Space Consider creating an Instagram photo-friendly space in your store. Find a colorful area or a fun wall that also includes branded content promoting your store name. Encourage customers to snap selfies in the space and use the hashtag to get 10 percent off their purchase.

AMERICA’S BEST KEPT SECRET!

Post to Instagram Stories Instagram stories are a great way for retailers to show their personalities. Story posts disappear after 24 hours, so use them to share moments versus posts you want to keep on your profile. Story ideas include: • Day-in-the-life • Coolest products off the truck • A peek at people, events and products at markets • Events in progress

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THERE IS ONLY ONE ”Original” AND ONLY THE ”Original” DOES IT ALL.® Take Advantage of Hashtags Create a hashtag specific to your store and encourage your customers and employees to use it in posts. Use the hashtag when you repost content to your feed. Also remember to include your hashtag in your Instagram bio—this will automatically create a clickable link so people can see all the posts that use the hashtag.

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

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

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

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

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

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

Consumer Confidence

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

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

150

NOV

OCT

SEP

AUG

JUL

JUN

MAY

APR

MAR

FEB

$20

60

JAN

$30 DEC ‘18

NOV ‘19

OCT

SEP

AUG

JUL

JUN

MAY

APR

MAR

90

FEB

DEC ‘18

120

JAN

$40

$10

30

Existing Home Sales

Housing Starts

600

500

(in thousands)

400

300

200

100

DEC ‘18

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

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

20

HARDWARE RETAILING | February 2020

NOV ‘19

MARCH 2020

It’s time to make yourself uncomfortable.

In the Spring 2020 issue of High Performance Retailing, take the first, bold step toward growing your business. This special Hardware Retailing supplement dives into data that reveals new growth opportunities that lie in underserved consumer segments and how you can access them.

Make sure you’re the first to see this issue.

Sign up today at hprmag.com.

High Performance Retailing

Brought to you by Hardware Retailing magazine and The Farnsworth Group

New Products

“

Ski and Snowboard Carrier Rhino Rack’s Ski and Snowboard Carriers can hold three skis or two snowboards securely on top of vehicles. The release mechanism is designed to be opened and closed with gloved hands, saving users time fumbling with tie downs. The built-in lock ensures users will know their gear is safe and secure.

Our customers like the tape measure keychains because they can clip on to their belt loops so they don’t get misplaced. Our employees like them for that reason too, since part of our uniform is to carry a tape measure all times.

”

—Joe Bruenning, T & M Hardware & Rental

Rhino Rack 877-744-6622 or rhinorack.com

Nitrile Gloves Aurelia® Robust® examination gloves are latex free, made from 100 percent nitrile, powder free and nonsterile. They have a micro-textured finish for improved gripping action and 5 mil thickness for improved puncture resistance.

They are ambidextrous and conform to the highest international standards.

Aurelia Gloves 877-989-8886 or aureliagloves.com

Tape Measure Keychain Combine on-the-go convenience and functionality with Milwaukee’s Keychain Tape Measure. With a 6-foot blade, it features dual markings (imperial and metric), nylon blade protection and a 5-point reinforced frame for drop damage protection.

The heavy-duty keychain clip allows users to clip it to almost anything.

Milwaukee 262-790-6655 or milwaukeetool.com

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

22

HARDWARE RETAILING | February 2020

Fuel Container Scepter® SmartControl™ fuel containers eliminate frustration with an easy-to-use design.

They feature a squeeze-controlled flow rate, letting users fill equipment safely and without spilling a drop. An included flame mitigation device provides additional safety.

Dead Blow Hammers Hultafors’ Dead Blow Hammers feature urethane-covered heads and a dead blow function that uses steel balls to reduce recoil and cushion shock.

Scepter 855-857-3252 or scepter.com

Hultafors Group 888-953-8357 or hultafors.us

Protector Plate Utility Shield™ protects against side penetration from nails and screws and can be installed before or after utility placement. It is heat treated and zinc coated and eliminates the need to route studs or float drywall while preventing uneven wall texture.

BT Innovations 650-776-2842 or utility-shield.com

“Customers love the

unique books that tell the history of the area.

Arcadia probably has books for whatever area of the country you’re in.

”

—Alan Koenig, Branson Ace Hardware

Local History Books Arcadia Publishing has been publishing books about America’s hometown histories for more than twenty years.

Arcadia books feature vintage images to illustrate the memories, places, events and people that define communities.

They have thousands of books available encompassing all 50 states and Canada.

Arcadia Publishing 888-313-2665 or arcadiapublishing.com

February 2020 | HARDWARE RETAILING

23

“

Sales on this product have taken off recently. Customers love it because it is a great cleaner and supports our nation’s veterans.

— Ryan Cosman, Arrow Ace Hardware and Paint

”

Household Cleaners Hero Clean® makes a full line of household cleaners designed to eliminate odors. They’re Made in USA and purchases support programs benefiting veteran and first responder communities.

Hero Cleaners 800-451-7096 or hero-clean.com

At Mi-T-M, we pride ourselves on building mighty, damn good equipment. It’s what sets us apart from our competition. When you purchase equipment with the Mi-T-M name on it, you are buying dependable equipment that is designed, built, and tested by good people.

Mighty. Damn. Good.

Made in

USA

with Globally Sourced Components

www.mitm.com 800-553-9053

Air Compressors | Air Compressor/Generator Combinations Air Compressor/Generator/Welder Combinations Portable Generators | Wet/Dry Vacuums Cold and Hot Water Pressure Washers | Jobsite Boxes Portable Heaters | Water Pumps | Water Treatment Systems

24

HARDWARE RETAILING | February 2020

Plant Pot Elegance by Scheurich is a line of origami-inspired ceramic planters available in modern colors such as rose, green, gray and Alaska. They have a handmade look and offer a clean, fresh appearance.

Scheurich USA Inc. 312-454-0000 or scheurich.com

Foil Pan Carrier Fancy Panz 2 in 1™ is a decorative, stackable carrier for foil food pans. It’s suitable for hot or cold food, fits both shallow and standard half-size pans, includes a serving spoon and is dishwasher safe.

Fancy Panz sales@fancypanz.com or fancypanz.com

Adjustable Container Botto™ adjustable containers can change size to hold between 16 oz. and 32 oz. of food, taking up only as much space as they need to. The patented “swoosh” valve removes air when you press down on the Botto, keeping foods fresh longer. They’re top rack dishwasher safe and made of BPA-free, phthalate-free plastic which meets or exceeds FDA standards.

Botto Design hello@thebotto.com or thebotto.com

New Products Toaster Oven The Sure-Crisp™ Digital Air Fryer Toaster Oven with Rotisserie by Hamilton Beach features six settings and an air fryer convection function for fast, even cooking. It includes a metal mesh basket, bake pan, broil rack, a slide-out crumb tray and a cooking timer with auto shutoff and stay-on setting with 4-hour automatic shutoff.

Hamilton Beach 800-851-8900 or hamiltonbeach.com

Lawn and Garden Tire The Verse Turf Tire is designed with a radial construction for improved flotation, reducing turf damage during turns while improving traction. The deep tread design provides optimal performance in all soil conditions and features self-cleaning breaker bars in the tread and rounded shoulders.

Carlisle 800-827-1001 or carlislebrandtires.com

“This snowblower is all about convenience.

There’s no gas to mix, no cord to run over and it’s light enough that anyone can use it.

— Scott Marshall, Marshall Hardware Hank

”

Heavy Duty Sticky Note Post-it® Extreme Notes are specially designed to stick in freezing and hot temperatures, moisture and more. They’ll even stick to rough and textured surfaces, including brick, wood, stainless steel and more.

They’re available in regular and extra-large sizes.

C Cordless Snow S ow Shovel Snow Joe®’s S ® iON13SS ON13SS is a 13-inch snow shovel powered by p y a rechargeable chargeable 40-volt lithium-ion batteryy system.

Itt requires no cord-pulls, gas, y oil, o tune-ups p or extension cords and delivers 52 minutes of runtime m utes o u t me with zero carbon emissions.

Snow S o Joe oe 866-766-9563 orr snowjoe.com 8

Post-it-Brand post-it.com/extreme

Make it Personal

Stamp it Yourself

ImpressAr t.com February 2020 | HARDWARE RETAILING

27

New Products

Lighted Garbage Disposal Moen’s EX Series Garbage Disposals feature 6 motion-activated LED lights, providing 75 lumens of light whenever the cabinet is opened. The one horsepower, 2,800 RPM VORTEX™ motor is designed to reduce jamming, includes sound deadening insulation and has professional grade grinding power. Its compact design frees up valuable space under the sink.

Moen 800-289-6636 or moen.com

American Made & Profitable For o Over O 80 Years rs

USB Power Strip Anker’s PowerPort power strip includes surge protection, overload protection, two USB ports, a USB-C port and three AC outlets. Extra space between the AC outlets provides room for larger plugs and the space-saving 45-degree flat wall plug keeps the other wall outlets free.

Anker 800-988-7973 or anker.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 28

HARDWARE RETAILING | February 2020

Barn Door System Ideal for flexible privacy and decorative room division, Hy-Lite’s Barn-Lite Door System fits in areas with limited clearance, and is sturdy enough for high-traffic residential and commercial settings.

These doors use acrylic blocks encased in architectural grade vinyl frames supported by steel hardware and slide for easy transitions between pathways and privacy.

Hy-Lite 888-256-2599 or hy-lite.com

Merchandisers Quick-Release Grease Coupler Display Kit Patented Design

LX-4851

LX-1403

LX-1403-XL

Free Counter Display!

4’ Merchandisers - Fast Turning Products!

Hip Container

Grease Gun & Acces.

LX-401

Pumps & Acces.

LX-402

Lumax.com

Info@Lumax.com

Fluid Management LX-403

The Hip-Trug™ from Burgon & Ball and Corona Tools is a lightweight, flexible gardening container that clips to your pocket or belt, solving the problem of overloaded hands when harvesting or gardening. The soft neoprene band holds it in place even when kneeling.

Burgon & Ball 800-847-7863 or coronoatoolsusa.com

844.660.6876

February 2020 | HARDWARE RETAILING

29

New Products Remote-Controlled Work Lamp Featuring 10 high-flux LED and Golight’s proprietary P-Vex lens, the Stryker ST Remote-Controlled Work Lamp generates 544,000 candela illuminating targets up to 4,839 feet away.

These lamps are vehicle-mounted and are 33 percent more powerful than the previous model.

Golight Inc. 308-278-3131 or golight.com

Industrial Heater Comfort Zone®’s ceiling-mounted CZ220 Heater provides 5000 watts of heat from a durable, heavy-gauge steel housing. It is equipped with an adjustable ceiling bracket and adjustable louvers so heat can be directed where it is needed. It features a removable front grille, power and caution indicator lights and a built-in safety protection system.

Comfort Zone 800-621-1938 or comfortzoneproducts.com

MAKING CARGO TRANSPORTATION EASIER & MORE SECURE

• WINCHES • TIE-DOWNS • WINCH BARS • WINCH STRAPS • LIFTING SLINGS • CHAIN BINDERS • RECOVERY STRAPS • CHAIN ASSEMBLIES consumer.ancracargo.com 30

HARDWARE RETAILING | February 2020

800-626-8353

cicustomerservice@ancra.com

Post Mount Mailbox The Hillsborough Post Mount Mailbox is made of galvanized steel with die-cast aluminum accents.

It features a magnetic door latch and a powder coat in three finishes (copper, rubbed bronze and black).

Architectural Mailboxes 310-374-5700 or architecturalmailboxes.com

Piano Box Crescent JOBOX Site-Vault™ Series Chests add strength and elimate sharp lip corners with a chamfered lid design.

The lids include built-in storage bins. It features an upgraded security system with a fluorescent reflective indicator that shows if the box is not securely locked. The shelves are rated for up to 1,000 pounds and the upgraded lock system supports Master #1, #5, #175 and American 50 padlocks.

Apex Tool Group 800-650-8665 or crescenttool.com

Checkouts

Sharing Pancakes and Friendship

R

ed shirts and hundreds of pancakes are hallmarks of a community breakfast Handyman Home Hardware hosts annually.

The store is located in Conception Bay South, a small community in Newfoundland and Labrador. Handyman Home Hardware hosts the event as part of a local festival, and invites the community to eat breakfast together, listen to live accordion music and mingle.

The free meal is all about being neighborly. Store owner Christine Hand and her daughter, manager Michelle Thorup, flip pancakes alongside members of the local town council.

In a professional kitchen, a former store employee loads an industrial-size griddle with pancakes to keep up with demand.

Out in the arena where visitors are eating, volunteers such as Hand, Thorup and their families chat with guests, cook a few pancakes at a time on griddles and add chocolate chips or blueberries on top for fun.

Customers enjoy seeing the Handyman Home Hardware staff out in the commmunity and appreciate the meal and door prizes.

They are accustomed to spending money at the store, so having the business spend money on them makes them feel good, Thorup says.

Attendees wearing red to match the Home Hardware colors receive prizes, such as Home Hardware hats and sidewalk chalk.

The purpose for the event goes beyond promoting that Handyman Home Hardware is active in the community, Thorup says. In fact, sales drop at the store on the big day because 700 customers are eating breakfast, not shopping.

“There really is just the loveliest environment when people from all over the community gather together to share a meal,” she says. “It’s such a tight-knit feeling and part of what makes our community feel cozy and homey.”

Left: Deputy mayor and town council member Richard Murphy cooks pancakes with Paul Dinn, a member of the House of Assembly.

Top: Norma Kavanagh, a former Handyman Home Hardware employee, makes pancakes with volunteer Betty Morgan. Bottom: Paul Dinn, manager Michelle Thorup and town council member Darrin Bent serve breakfast.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here.

Have an idea? Send an email to editorial@nrha.org to have your story considered for publication.

32

HARDWARE RETAILING | February 2020

Secret Lives of Rescued Fish Daily, customers visit Ace Hardware of Weston Center in Weston, Wisconsin, to leave pet fish they no longer want or can’t take care of any longer. The store’s pet department has three 220-gallon tanks and many small tanks, so it accepts everything from goldfish to stingrays. The store then sells the fish, keeps them as store pets or donates them to the Milwaukee County Zoo. “Generally, people don’t go to the animal shelter looking for fish,” says Krista McRae, who oversees the pet department. “We can find homes for them faster than the shelter. When customers have to rehome something, it’s nice to give them the option to drop fish off here. It prevents people from releasing invasive species into the wild and it’s better than giving them to the wrong homes.”

Donating Family Fun Ace Hardware & Sports in Midland, Michigan, participates in an annual community fall festival and car show by hosting a movie night at the store and donating supplies for people to build their own scarecrows.

“In addition to just raising awareness about the business, I live in town here and have three kids,” says Daniel Buzzell, vice president of operations. “I want the events to be fun for my family, too. I want Midland to be a thriving community for them to grow up in.”

Grilling for the Greater Good Alper’s True Value Hardware in Port Washington, New York, hosts a yearly grilling competition and fundraiser called Karmacue.

About 1,000 people attend, and multiple amateur teams compete against each other. Community members pay to eat barbecued ribs and vote on their favorites. All proceeds—which totaled $80,000 in 2019—go to a local charity.

“We’ve always given here and there, but I wanted to put our name out there in front of something that was proactive in the community instead of just having people come ask for donations,” says Adam Novick, who co-owns the store with his parents and brother-in-law. “It’s nice to make a spectacle outside the store and it feels really good to be actively part of the community rather than having people come to us.”

Read more at TheRedT.com/karmacue.

Support Your Community Here Hartville Hardware in Hartville, Ohio, provides two large community bulletin boards near its front entrance for customers to post flyers. Store staff members review the board postings to make sure the information is current and organized neatly.

“The boards are a free service offered to local residents and customers for everything from sharing about local activities to selling furniture and used farm equipment,” says marketing director Katherine Merkle.

Frebruary 2020 | HARDWARE RETAILING

33

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HARDWARE RETAILING | February 2020

PUT IN THE WORK 3 Strategies to Handle Hiring in a Tight Job Market

By Melanie Moul, mmoul@nrha.org

R

Heuser Ace Hardware president Bobby Heuser (right) says the positive attitude that employees like Jenn Welsh portray gives a good impression to potential job-seekers.

etailers across the country have expressed similar challenges when it comes to finding long-term, qualified employees: It’s tough out there.

According to the U.S. Bureau of Labor Statistics, in 2019, unemployment was the lowest it had been in 50 years. The unemployment rate remained relatively unchanged throughout 2019, around 3.5 percent.

While low unemployment is generally considered good for the country and the economy, it does present challenges for employers, particularly in retail.

“Because the economy is good, applicants can afford to be choosy,” says Heuser Ace Hardware president Bobby Heuser. “We have a process that helps weed out the people who may not take the job seriously. On any given day, the position we need to fill the most changes, so we stay open to finding people with certain knowledge or backgrounds.”

Tony Lee, vice president of editorial for the Society for Human Resource Management and the organization’s authority on recruitment trends, says the paradigm for hiring has changed.

“It used to be that business owners could be picky and choose the applicants they thought would be the best hire in terms of customer service, knowledge or retention,” he says. “In today’s climate, all of those are important, but in many cases they are secondary to selling the opportunity to the candidate. In this market, you have to be proactive and assertive. If a store owner wants enough staff to function, they’re going to need to recruit.”

Developing a recruitment mindset for your business doesn’t have to mean hiring an agency to scout workers at other local businesses or competitors—although it could.

February 2020 | HARDWARE RETAILING

37

Read on to learn about the creative hiring strategies that have worked for Heuser and two other retailers, and learn from Lee about the untapped labor markets you should consider to find employees with staying power.

1

SEEK RELATED SKILLS

Lee says there are several groups that tend to experience higher levels of unemployment than the general population, and they shouldn’t be overlooked.

“The No. 1 strategy that seems to be working in retail is hiring nontraditional candidates,” he says.

“People with criminal histories, people with disabilities, workers who are past retirement age and veterans all have more of a struggle finding opportunities. They tend to be the most loyal employees you’re going to hire.”

Over the last five to 10 years, 35 states and more than 150 cities and counties have instituted “Ban the Box” laws, according to the National Employment Law Project, an organization that is dedicated to expanding access to good jobs. Ban the Box laws make it illegal to ask about a person’s past criminal history on job applications.

“The truth is, there is not a greater risk when it comes to hiring people with criminal histories,” Lee says.

“You can screen out people with violent histories, but most offenses are drug-related. Once you extend an offer, you can do a background check.”

Another group that already has decades of experience: baby boomers who can’t afford to retire or who don’t want to retire. Lee says there is a lot of untapped talent in these groups, and there are often organizations in communities that help connect people to employers.

“Even if you just focus on those categories, you’re going to have a very loyal employee base,” Lee says.

Putting It in Action Bobby Heuser and his parents, Renee and Bob, opened Heuser Ace Hardware in Bluffton, South Carolina, in 2014.

The town is brimming with baby boomers looking for new opportunities. To be sure they are always receiving applications from people eager to work, Heuser’s Ace set up an online application system.

“Our biggest filtering mechanism is that we require people to go online to apply,” Heuser says. “We ask them to download the application, fill it out, sign it and then email it back. In all reality, that’s simple, but people who aren’t serious about it don’t do it.

38

HARDWARE RETAILING | February 2020

Heuser Ace Hardware employees like Hunter Rice share their excitement about the company with customers.

In fact, applicants have asked about job opportunities after talking to employees.

Heuser Ace Hardware staff members, including Josh Mixson, Renee Heuser and Emily Dittle, bring a variety of skills and knowledge to the team. Several team members discovered job opportunities at Heuser Ace Hardware events.

And if they don’t want to do that much work to apply, then they won’t work out in this job.”

Heuser sees the community of retirees in Bluffton as a broad labor pool. On his staff, Heuser has two former police officers, two former teachers, a chemical engineer, a mechanical engineer, two former flight attendants and a former home inspector. He also has an employee with a Ph.D. in horticulture who is a professor at the local college and who hosts lectures and seminars at the store for customers.

“When we’re interviewing people, it’s not about what they know right now,” Heuser says. “It’s about the type of person they are, whether they will take the job seriously and if they have a thirst for knowledge.”

Heuser’s own background plays into his philosophy of hiring for the right fit instead of hiring for knowledge.

He started as a mechanical engineer, earned his MBA and then went into finance before deciding to open the store with his parents.

“If you get the right person, you can ask them to do anything, and it works,” he says. “We try to hire people who want the store to be better tomorrow than it is today.”

The strategy has worked for Heuser Ace. The store has less than 10 percent turnover per year, and most of the people who leave are seasonal workers. A majority of the management team that started when the business opened is still on staff.

So when it came time to staff their second store, which opened in January just a few miles away from the original location, Heuser started with the same approach.

“Opening a whole new store meant we were hiring for all positions, but we’re not strict with hiring for specific roles,” he says. “They way we see it, the role needs to work with the talent that walks in the door. If the person fits into the culture, then you can grow them into the right place in the company.”

Heuser says brand recognition in the community has been one of the biggest drivers for applicants as he has gone through this round of staffing for the new store.

One key opportunity he found to be successful this time around was to use in-store events essentially as job fairs.

“We hosted four events last fall, and at each one, we put up a ‘Now Hiring’ sign outside the store. After those events, we saw a big jump in the quality of applicants we received,” he says.

Heuser says he welcomes the applicants that arise from in-store events because it directly ties into the type of people he wants working in his company.

“The people who come to your events already want to be a part of your business, so they are often great employees,” he says.

While many retailers find word-of-mouth and employee recommendations to be reliable methods for finding new employees, Heuser relies on everyday interactions his employees have with customers. Two of his hires for the new store were walk-ins who, in casual conversation with associates, inquired about job openings because they liked the atmosphere in the store.

“We’ve been leaning on overall attitude and culture,” he says. “We want to load the store up with positivity because when customers see lots of smiles and everybody excited to be at work, it makes them wonder how they can be a part of it.”

In two months, Heuser hired 12 associates for his new store, and all of them came through attending an event or talking to a current associate while they were shopping the store.

“When we first started this process, we wasted a lot of time going through low-quality resumes, and we didn’t have luck using online hiring sites,” Heuser says. “We decided to double down on what’s been working for us, which is focusing on the people who come in who are aware of and excited about our brand.”

February 2020 | HARDWARE RETAILING

39

2

GO MOBILE

While retirees can be reliable employees, don’t dismiss younger generations because of lack of experience.

According to the U.S. Bureau of Labor Statistics, teenage unemployment is at about 12.7 percent, indicating there are likely young people in your community who are eager for a part-time position.

When it comes to filling full-time positions, the pool gets even deeper. According to the Pew Research Center, the youngest millennials turn 24 year this year, which means all millennials are past average college age, and the majority are closer to 40 than they are to being teenagers. It also means that the oldest members of Generation Z, who were born after 1997, are aging into the workforce.

Lee says that information should have an effect on how you approach hiring and recruiting.

“Younger millennials and older members of Generation Z, who are often the target candidates for retail opportunities, are job-hunting on their phones,” he says. “If you don’t provide information or the ability to apply on mobile devices, you’re not going to reach those groups.”

Don’t mistake a preference for job-seeking on devices as an unwillingness to communicate in person, though.

Lee says that while millennials tend to prefer to communicate over text, the younger generation prefers face to face.

“Generation Z has grown up online, so they tend not to trust everything they see online,” he says. “They don’t believe something until they hear it in person.”

Putting It in Action Wilco Stores operates 20 locations in Washington state and Oregon, where vice president of human resources Lisa Smith says they have struggled to find qualified candidates.

To find employees in a highly competitive job market, Smith says the company has developed a strategy that is centered on social media.

Three years ago, Wilco engaged a company that provides social media support for recruiting. They started focusing their attention on Facebook, Instagram and Twitter to get the word out about available jobs.

“We wanted to profile the type of store we are and show our employee group,” Smith says. “We use photos of current employees in all of our marketing, so when people come to our social media pages, they see what the atmosphere is really like.”

To support the social media outreach, Wilco also overhauled the employment section of its website.

40

HARDWARE RETAILING | February 2020

From videos showing daily life to an embedded Instagram feed displaying posts featuring the employee-embraced hashtag #OurWilcoLife, the website gives prospective employees detailed insights into what working for the company looks like.

If potential employees want to see what positions are open near them, the interactive map provides all the information they need. The mobile-friendly map shows how many positions and what types of roles are open at each Wilco store location. All the details for the jobs are available, including responsibilities, benefits and pay rate.

While this strategy hasn’t been a cure-all for Wilco’s challenges, it has helped in improving brand awareness of the company as an employer. The company has been named one of the top employers in Oregon by the Oregonian Media Group for many years running.

Smith says they are proud of the people they bring on board, even if they don’t stay long-term.

“We know that this business has turnover. We’re going to see it, and we’re OK with it,” she says. “What’s more important is that employees are engaged during the time they do work with us, and this strategy helps us identify those people.”

To attract young people to jobs, Wilco Stores encourages staff to use the hashtag #OurWilcoLife on social media.

Job-seekers can see what it looks like to work for the company.

The human resources team at Buchheit Stores meets potential hires at high school job fairs and explains the career opportunities.

3

KNOW YOUR COMPETITION

Many big-box stores, like Target, Walmart and Home Depot, have made headlines in the last two years as they have changed their approach to minimum wage, benefits and paid leave. Lee says it’s crucial that independent retailers know what other employers in their area are offering and to be as competitive as possible.

“When it comes to hourly workers, they are most concerned about compensation,” Lee says. “We’ve seen over and over again, a retailer losing five or six associates in a day because another business opens up and offers 25 cents more per hour.”

Differentiating yourself from competitors through valuable benefits can help you attract new recruits and improve your retention rates, but Lee says compensation is a key issue.

He says there has been a trend in a phenomenon called “ghosting.” People apply at a new job and accept it, only to take the offer back to their current employer to negotiate a better situation for them there and never show up to their new job. While hiring for culture fit and attitude can sometimes weed out people who do this, so can having a proactive approach to onboarding and having an honest conversation, Lee says.

“Ask them outright if they’re using your offer to increase their pay at their current employer,” Lee says. “If they’re serious about working for you, ask them to come in and work on a weekend before their official training starts to get a feel for the job.”

Putting It in Action Buchheit Stores has eight retail locations in Missouri and Illinois, along with an agriculture division, a trucking division,

a carriage house wholesale cabinet division and a metal wholesale division. The stores are in rural areas, so the biggest competition for employees is with factories and box stores.

Director of human resources Petrina Jannin says the factories in the area create the biggest challenge to offering competitive pay, so they have focused on highlighting the schedule benefits of working for Buchheit.

“Most of our stores close at 8 p.m., which means they’re not going to be working the night shift like they would at a factory,” she says. “We also offer flexible schedules, and we try to get schedules out three weeks in advance.

Our team members also rotate nights and weekends off, which is a big plus.”

Jannin says another strategy they use is to talk to young people in the area about the opportunities that exist in an operation like Buchheit.

“While we do have name recognition, a lot of younger people don’t understand where you can go in this industry,” she says. “It’s important that they understand if they start as a cashier, that doesn’t mean they will stay there.”

Representatives from Buchheit visit high school career fairs to talk about all the possible pathways that are available at the company. Students learn about opportunities in each department in the retail stores, like farm animal care, live goods, sporting goods and firearms.

“We show them that it’s not about coming to work and putting freight up on the shelves,” she says.

When it comes to gauging a culture fit, Jannin says they first start with a phone call to see why they’re interested in the position. Then the applicant has an in-person interview with the human resources coordinator and department supervisor. Finally, the candidate will talk with the store manager or assistant manager and walk the store.

“We make sure they really understand the role before they leave the interview.”

February 2020 | HARDWARE RETAILING

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Discover how creative merchandising, a focus on training and knowledge of your local community can boost sales in outdoor furniture.

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The Outside Advantage Creative Merchandising Enhances Outdoor Furniture

By Todd Taber, ttaber@nrha.org

E

levating your outdoor furniture department can be an investment that boosts sales and caters to shoppers’ increasing desire to maximize their outdoor spaces.

According to the Home Improvement Research Institute, outdoor living sales rose steadily in the last decade, with nearly one-third of home improvement customers buying outdoor furniture products in 2018.

“Outdoor furniture is gaining momentum,” says Mariah Maydew, president and CEO of Fruehauf’s, a 40,000-square-foot outdoor furniture business in Westminster, Colorado. “People are prioritizing spending time outside and they’re thinking of outdoor spaces as extensions of their houses. It’s truly another room to furnish.”

For many hardware retailers, outdoor furniture remains a reliable part of their inventory. Customer service specialist Michael Gricus oversees the outdoor furniture department of Palm Springs Ace in California. He says understanding shoppers’ needs and combining that knowledge with creative merchandising is key to capturing category sales.

“Our team is part of the community,” he says. “That connection lets us know exactly what our customers want for their outdoor spaces.”

Learn how each retailer is adapting their inventory to meet customers’ needs and using in-depth training, community insight and creative merchandising to grow sales in a blooming category.

Take a Tour Want to see more merchandising marvels from Palm Springs Ace and Fruehauf’s? Head over to TheRedT.com/outdoor-ideas to view stunning photos from the companies’ robust outdoor furniture departments.

February 2020 | HARDWARE RETAILING

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At Palm Springs Ace, effective merchandising in the outdoor furniture department often leads customers to make purchases in related categories, like housewares and pool supplies.

Michael Gricus manages the outdoor furniture department at Palm Springs Ace.

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As Goes California: Outdoor Furniture Trends In his role as customer service specialist and outdoor furniture manager, Michael Gricus says staying on top of upcoming trends is vital. Check out a few of his predictions for new outdoor furniture trends in 2020.

1

Play the blues.

Pantone named Classic Blue as its 2020 color of the year, but Gricus didn’t expect the coastal color to play well in Palm Springs, where locals favor hues like lime and orange. He’s ordering blue cushions and shades to seize the trend.

2

Have a soft spot for fabrics.

One of the major trends Gricus sees is a shift from heavy mesh cushions to softer, breathable textiles. Gricus says these cushions can make a huge difference for customers’ outside comfort and should be part of your inventory.

Creating a Merchandising Oasis A walk into Palm Springs Ace is an invitation to explore. From every angle, shoppers see new possibilities for outdoor spaces.

Gricus oversees the outdoor furniture department alongside his husband Jay. They both agree merchandising is key in this highly visual category.

“Merchandising is inherent to Jay,” Gricus says. “He's worked for different designers and furniture companies through the years and his work always gets compliments from our customers.

He's our secret weapon.”

Under their oversight, every corner of the salesfloor feels considered. Black and white vases coordinate with matching pillows to complement a neutral-color couch, delivering a complete decor package for shoppers. Outdoor dining tables are topped with place settings, tableware and unique accent pieces to inspire shoppers to think about their outdoor spaces in a new light.

The pair's commitment to merchandising is paying off. Gricus says the outdoor furniture section covers roughly 20 percent of the store, but accounts for nearly 40 percent of its overall sales.

3

Show shoppers the ropes.

Rope furniture is making inroads in Palm Springs. These pieces use cords for support, instead of blocky, heavy components. This design allows more air to circulate, which in turn helps customers beat the desert heat.

At Fruehauf’s, Maydew also prioritizes creative merchandising to boost sales and engage shoppers. Her company uses artificial flowers and plastic food to place atop grills and plates to bring shoppers one step closer to a purchase.

“Set up your products like you would use them at home,” she says. “We want to help the customer imagine using these pieces. Plus, merchandising with accessories and the giftware we carry makes the shopping experience more fun.”

Fruehauf's also features an exposed brick facade, giving sections of the salesfloor a comfortable, backyard atmosphere.

The wall is also an opportunity for the team to showcase home accents and decorations vertically, saving space for larger furniture on the salesfloor.

Both retailers agree strong merchandising not only boosts sales in outdoor furniture, but also in related categories, benefiting the entire operation.

“It's important for retailers to not only carry outdoor furniture, but also items that complement those pieces,” Gricus says. He says his store's comprehensive merchandising approach has also delivered higher sales in other categories.

February 2020 | HARDWARE RETAILING

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All Set to Sell Fruehauf’s president and CEO Mariah Maydew says encouraging salespeople to learn about shoppers’ budgets and lifestyles is paramount for success. Review some of her basic selling tips with your staff.

Ask open-ended questions.

When greeting customers, have a few icebreaker questions ready to go. Steer clear of questions with ‘yes/no’ answers and give shoppers time to explain how they want to improve their outdoor space. You’ll learn about their budget and end goal in the first moments of meeting.

Assemble products in your mind.

Take a hyper-realistic approach to selling. Imagine you’re putting together every purchase. If a customer buys an umbrella, did they also pick up a stand? Envisioning the final setup can help you suggest items for add-on sales and display your product authority to customers.

Let customers feel at home.

Maydew says clever merchandising is critical for outdoor furniture. Her team places realistic plastic food like steaks and fish on grills and full dinners on place settings to help customers imagine the possibilities to entertain guests at their homes.

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Gricus also recommends retailers utilize strong cross-merchandising strategies. Being able to lead customers shopping for outdoor dining sets for the pool area to pool cleaning supplies, inflatables and grills improves the customer experience and spurs add-on sales.

Any Budget for Success Because Fruehauf's focuses exclusively on outdoor furniture, Maydew says her customers are usually seeking high-end items. She says because people don’t shop for patio furniture every day, some of her staff’s work includes educating them on the ways different prices reflect varying levels of quality.

“All our products are high-end, but it’s important to explain what that really means to a customer,” she says.

Her team knows that when customers initially balk at a price point, explaining information about the product’s durability, design and warranty is crucial.

Maydew says all sales associates complete an off-site sales training program. In addition, sales representatives visit the store weekly to introduce the Fruehauf team to new choices in the category.

Those weekly sessions are a good opportunity to refresh all employees’ selling skills with helpful pointers.

“A lot of our salespeople have been here for many years,” she says. “We have a high retention rate, so finding ways to remind people about the basics of selling is really important to me.”

Gricus says Palm Springs' shifting weather gives his team the opportunity to stock a range of items and cater to customers at all price points.

With Palm Springs’ desert climate, Gricus is always able to sell outdoor furniture, but the main selling season runs from mid-November to late spring.

Temperatures rise above 100 degrees F by early spring, and many long-term Palm Springs residents head to cooler climates. In turn, renters and event-goers arrive in the area for major conventions and festivals. Gricus says that changeover is a prime opportunity to serve a new customer base at a lower price point.

“When summer arrives, a lot of people from out of town rent homes and want to furnish them into their own style,” he says. Gricus understands these visitors may not be interested in making expensive purchases, so he adjusts to meet their needs.

Mariah Maydew, president and CEO of outdoor furniture store Fruehauf's, says training employees on effective selling strategies is a critical piece of success with outdoor furniture.

“There are some basics any renter wants: outdoor seating, umbrellas and a dining table,” he says.

Gricus says retailers should also be on the lookout for sales outside residential spaces.

In the past, his team has provided furniture for local businesses.

Those projects then led to a sales milestone for the company. They provided the furnishings for a historic local estate which now serves as a museum. Purchases made for that project totaled close to $70,000, the single highest transaction in the store's history.

Setting the Stores Apart Both Palm Springs Ace and Fruehauf's have big-box rivals, but Gricus and Maydew say they don't feel threatened by the chains.

Instead, they say their commitment to merchandising, training and community insight gives them a competitive edge.

“It all comes back to knowing your customers and understanding what they want,” he says.

“At the big boxes, their inventory is decided by a corporate committee and doesn’t have the same pull as our what we choose to stock.”

Maydew says one defining feature of her business is its focus on stocking durable products, another point of departure from her business and national chains.

"We don’t compete with big boxes," she says. "Their focus is on getting the price point as low as possible. Our manufacturers focus on getting quality, comfort and design as high as possible. We're operating on different ends of the spectrum."

Maydew and Gricus have both seen customers cycle through outdoor furniture sets from big-box chains and come to them when they're ready to spend more for items designed to last.

Gricus says one extra way to set your store apart is to seek product ideas from local and national markets. He visits design events around Palm Springs and he and his team have also visited major product showcases, including the Kitchen & Bath Industry Show and the International Home + Housewares Show.

“Make your outdoor furniture department your own," Gricus says. “Don't try to replicate what others are doing exactly, your inventory should reflect your local market and the people you serve.”

The team at Fruehauf's uses realistic plastic food to help customers imagine new outdoor entertainment possibilities.

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February 2020 | HARDWARE RETAILING

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WHITEPAPER

Cash Is King Improving Cash Flow with Efficient Accounts Receivable The relationship between a company’s profitability and its cash flow, while straightforward, isn’t always fully understood. Many businesses, especially salesoriented companies, tend to manage operations from the bottom line, believing that if sales are increasing, the business is profitable and success is guaranteed.

The problem with this thinking is that businesses don’t pay their vendors from the bottom line, they pay from positive cash flow. Too often, sales-oriented businesses are so eager to get new clients, that the structure required to get paid for current work isn’t fully fleshed out. Suddenly, the funds needed to pay current invoices are not available, and the company is at risk of selling themselves out of business by not properly managing cash flow.

Get a grip on accounts receivable

The best course of action is to get a firm grip on accounts receivable before it becomes a problem.

This will give you enough cash on hand to stay ahead of bills and still have funds left over to invest in the future.

Until payment is received (positive cash flow generated) any transaction can’t really be considered complete. Too many outstanding customer payments lead to cash flow problems.

Getting paid should always be a priority, but before any receivables get collected, several actions are required to help guarantee receipt of that payment.

When customers owe you money, there shouldn’t be a major investment of time and manpower on your part to get paid. For any accounts receivable process to work, it starts with accurate data collection.

This includes information regarding the product or service rendered, price with tax, any discounts that might apply, expected payment date, and any other information relevant to that specific transaction. If this is a manual process or data needs to be applied to different programs, the process can be time consuming and prone to errors.

Automation makes the process more streamlined

Part of the success of any accounts receivable effort is the ability to establish the right payment terms. The amount of time you offer customers to make their payment should be considered carefully. The longer the payment term, the more credit you are extending to your customers.

Conversely, the shorter the term, the quicker you get your money—theoretically. The typical payment cycle for goods or services ranges from 30 to 90 days.

The best approach is to set terms that work financially for you, but also are fair to your customer. Perhaps you want to include an incentive, such as a discount, to clients who pay early. For example, you could offer a 2% discount on an invoice if paid within 10 days. Whatever term

works best—say it is a 30-day deadline—be sure to include that data on all future invoices.

The biggest obstacle to positive cash flow is customers who don’t pay on time. When that happens, instead of having capital available to pay your own vendors or make your own payroll, your money is tied up on your balance sheet. One of the first steps to speed payments is to set clear and concise credit policies. Set responsibilities with your sales or finance department about when to extend credit, how much credit to extend, and what penalties to impose on overdue accounts.

Then commit to process all credit applications within a specified time frame.

Think carefully about the wording of terms you decide upon—a little bit of courtesy can go a long way to speed payments. For instance, asking politely for payment within 21 days always beats a statement such as “due in full on receipt.” Knowing your clients well, as you do, and understanding what motivates their operations and payments can help you choose the best strategies to get paid while still appearing friendly.

Just as important as the information that goes into creative the invoice is the data that determines who will receive it. You need to keep track of contact information for key accounts payable contacts. You probably want to verify this information monthly to keep up with any changes. Equally important for larger businesses, is the need to have at least one additional manager’s contact information, or an owner for smaller businesses, should be there ever be need to escalate communications.

When payment is overdue you will also need an accounting department contact.

The collection processes undoubtably runs smoother when your customers undersand payment terms completely so there are no obstacles to receiving payment.

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Q&A

Changing

of the Guard

Orgill Inc.’s New President and CEO Discusses the Future of the Company and the Industry

A

t of the beginning of this year, Orgill Inc. completed the next phase in its leadership transition. Boyden Moore took the reins of the Memphis-based distributor as its new president and CEO, while the man who formerly occupied that role, Ron Beal, moved into a new position as Orgill’s chairman of the board.

Over the past three decades, Orgill has grown from a regional distributor serving retailers throughout the mid-southern U.S. to become one of the largest distribution companies in the home improvement industry.

As Moore transitions into his new position, Hardware Retailing was given the opportunity get his Boyden Moore took the thoughts on where the company role of president and and the industry may be headed CEO of Orgill earlier in the future. this year.

Hardware Retailing (HR): Tell us a little bit about your background and what brought you to your position at Orgill.

Boyden Moore (BM): Most of my career has been in retail starting in home improvement, then grocery and apparel before returning to the industry in 2000 at Marvin’s in Alabama. Much of my experience in the industry has been as a customer of Orgill, first at Marvin’s and then working together with Orgill beginning in 2009 with Tyndale Advisors and Central Network Retail Group (CNRG).

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I joined the management team at Orgill in 2015 as we further implemented the strategies of how Tyndale Advisors and CNRG could serve Orgill’s mission “to help our customers be successful.”

HR: You have a lot of retail experience. How do you think that gives you a bit of a different perspective in your current role?

BM: I do, but I’m not alone. Many of our leaders at Orgill have experience as retailers including Brett Hammers, John Sieggreen, Jeff Curler, Phillip Walker, Chris Freader, and I’m sure I’m leaving some out. It helps us really be customer-centered in our decision-making and deliver on our mission. Our team knows what it takes to be successful at retail and have lived it, experiencing both successes and failures. It’s amazing how well members of this team complement one another in retail experiences from small to large infrastructure, pro-focused to consumer-focused retailers, urban, suburban and rural businesses. I’d say our team has some of the best breadth and depth of knowledge among the independent channel. All of that enhances our ability to deeply understand and help our customers.

HR: As the new president and CEO of a venerable company like Orgill, what is on your to-do list for year one?

BM: Orgill is a very well-run company. I had the opportunity to spend a lot of time studying our business over the past year, visiting our distribution centers and talking with our logistics teams, going out to see our customers and working hard to understand their challenges and priorities and seeing firsthand how our sales team delivers value to our customers.

&A

Our customers, owners and management team expect us to improve and get better every year. So the first order of business is to keep up with that pace of constant improvement. Our industry is always getting more competitive, retail is getting more complicated, especially around technology and marketing. Our team is doing some pretty exciting things to drive competitive advantages for our customers, and we see lots of opportunities for us to do more.

HR: What changes do you see taking place in the industry that will be major disruptors for independent retailers in the next three years?

BM: Well, e-commerce is certainly a big one. Amazon and Home Depot are leading the industry and setting new expectations among consumers. We need to find ways to help independent retailers keep up with the pace of change being set by these companies and the shifting demands of consumers.

Also, the use of technology in retail in general: to understand customers better; market more effectively and efficiently to them; leverage employees’ efficiency and drive a better customer experience. Delivering competitive insights in managing your business is also a huge potential disruptor. We are working to deliver these tools to our customers to help them grow and win in the industry.

HR: How is Orgill addressing these disruptors?

BM: We’re doing something I think is very unique.

All of our customers are different, which requires a different approach than if you were developing a solution for one brand. We develop solutions for our customers using an approach we call “mass customization.”

Our customers are involved in the design of these solutions, too. In the example of e-commerce, we started a symposium three years ago and invited customers working on their e-commerce strategies to share their experience, knowledge, successes, lessons, ideas and preferences as we worked to develop solutions at Orgill that could help everyone in their efforts. We then implement tests in our own stores at CNRG where we refine and improve the tools sharing our experience and best practices as we go.

CNRG is a test lab where we can develop solutions across different formats (hardware stores, home centers, pro retailers), different brands and different types of markets. Mass customization is required inside of CNRG’s multiple formats and brands, which gives us a platform to develop and test solutions in the market more broadly.

That same approach I described in our e-commerce solutions is being applied to the other technology

This month, hear more from Boyden Moore in a new episode of the “Taking Care of Business” podcast. Head to TheRedT.com/pod to subscribe so you don’t miss it!

opportunities in marketing, customer insight, employee productivity and business intelligence.

HR: What do you feel the core differences are between running a highly efficient, successful retail operation and one that is just bumping along?

BM: There are three things that come to mind for me and have been demonstrated as we’ve worked on CNRG: raving fans, pricing strategy and administrative overhead.

The most successful retailers I’ve seen have created raving fans as their customer base, customers who absolutely love the store and team. This usually comes from great leadership and from hiring and training great people who also are raving fans about the business and their role in it.

Pricing strategy is another area where the most successful operations really stand out. This is an area where Orgill really delivers a very strong competitive advantage for our dealers. We have implemented Orgill’s more sophisticated pricing strategies in many of CNRG’s brands after acquisition and driven significant improvement in margin.

Administrative overhead is another area where I think the most efficient and successful retailers set themselves apart. Simplifying the supply chain is one area that we’ve implemented in CNRG’s brands that absolutely takes cost out of administrative expenses. Effective, affordable and efficient marketing solutions like brand-building tools and our BrandBase software we’ve developed for all of our customers. Scalable, effective and efficient technology solutions like we’ve developed for e-commerce and are refining with FanBuilder, a new customer loyalty program we’ve developed. We are currently working in the lab to deliver competitive advantages for all of our customers, and the progress I see our teams making is really exciting.

HR: Do you feel that every retailer has the ability to address those challenges?

Moore: I do, and we’re doing all we can to help our customers do so.

In January, Orgill named new members to its executive team (left to right): Eric Divelbiss; John Sieggreen; Greg Stine; Brett Hammers; Boyden Moore; and Randy Williams.

February 2020 | HARDWARE RETAILING

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Embracing Change Conference Provides Perspectives on Industry Evolution

By Kate Klein, kklein@nrha.org

I

n a retail world where customers are increasingly diverse and technology is changing by the second, adaptation is key.

Change was the dominant theme of the North American Retail Hardware Association (NRHA) State of Independents Conference, which brought together innovative retailers from throughout the U.S. to offer insight into how their independent home improvement businesses are evolving.

The conference provided an opportunity for retailers and other industry stakeholders to share ideas and discuss recent research on significant changes in the industry, such as evolving technology and increasing customer diversity.

Retailers and industry analysts served as keynote speakers, and several store owners also participated in panel discussions on challenges, growth opportunities and changes they are seeing.

Read on to see some of the new NRHA data on demographic and technology trends, as well as highlights from the retailer presentations.

At the NRHA State of Independents Conference, panel participants discussed the challenges and opportunities they are seeing in business. Left to right: Brian Kabat with Kabat’s Ace Hardware Stores in the Phoenix area; Leigh Ann Akard of Akard True Value Hardware in Zionsville, Indiana; and Dave Umber from Umber’s Do it Best in Fort Wayne, Indiana, swapped ideas about hiring, offering employee benefits and identifying growth opportunites.

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2020 Vision The State of Independents Conference allowed retailers from a variety of wholesale affiliations to network with each other and dialogue about the ways they are modifying their businesses to meet consumer expectations. Industry experts and representatives from distributors and manufacturers joined in the conversations with keynote speakers and retailer panelists.

Dan Tratensek, executive vice president of NRHA, presented research about customers’ ethnic and age diversity and their evolving use of technology. About 80 percent of retailers who responded to an NRHA survey say they are seeing demographic shifts in the customers they serve, and more than half are seeing greater ethnic diversity and increases in shoppers who are age 35 or younger.

Industry evolution, such as the ongoing growth of online retail, is not destroying the brick-and-mortar retail businesses that are in tune with their customers and continuing to meet their needs, Tratensek says.

In fact, more than 70 percent of industry retailers who participated in the NRHA research expect sales growth for the next three years. And 73 percent say emerging technology, such as new employee-facing and customer mobile apps, are impacting their businesses.

“As you think about ways you want to change in 2020, you have to pay attention to what your customers want,” Tratensek says. “Understand and be committed to what your customers want.”

Top: Woods Hardware president and CEO Matt Woods described the ways technology has improved his operation in Cincinnati.

Bottom: Dawn Ernst, director of IT for Buchheit in Missouri and Illinois, explained the software she helped develop to improve operational efficiencies and employee management.

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HARDWARE RETAILING | February 2020

Serving a Multicultural Market Addressing ethnic diversity in hiring and customer service, Matthew Mazzone, owner of three Mazzone Ace Hardware stores in Brooklyn and Queens, New York, told the story of how his family business has evolved with its neighborhood.

Mazzone’s family started the business in 1950 in an Italian neighborhood and served primarily Italian shoppers for decades. Mazzone grew up working at the family’s first hardware store, back when many business owners in the area were reluctant to serve customers from other cultures.

“If you didn’t look like you belonged there, you were not treated well,” he says.

When Mazzone took over the business from his father in the 1990s, the neighborhood had grown increasingly diverse, and Mazzone wanted to ensure that his entire team respectfully met the needs of all shoppers.

Changes he led included hiring workers who reflected the gender and ethnic diversity of the area, implementing a formal onboarding process, training the staff on excellent customer service and ensuring his staff was respectful to all shoppers. Mazzone Ace also began hosting community events that welcomed the whole community.

In 2019, about 3,000 diverse people attended an October festival Mazzone’s business hosts annually outside the Mazzone Ace location in Brooklyn.

“It took a complete culture change in our operation,” Mazzone says.

Matt Mazzone of Mazzone Ace Hardware in Brooklyn, New York, presented on the cultural shift his company made to broaden its customer base in his diverse neighborhood.

Independent We Stand co-founder Bill Brunelle (left) and NRHA executive vice president Dan Tratensek (right) honored Joe Franquinha, owner of Crest Hardware in Brooklyn, New York, with the Spirit of Independents Award for his commitment to sharing the value of shopping local.

How Retailers Say the Industry Is Changing According to respondents to the NRHA 2019 State of Independents Conference research

Have seen a demographic shift in their 80% immediate customer base.

Say they see a more ethnically diverse group 54% of shoppers in their stores.

Say they see more younger shoppers (age 20-35) in 51% their stores than before.

Say emerging technology trends are 73% affecting their businesses.

February 2020 | HARDWARE RETAILING

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Digging Into Data Technology was a major focus at the NRHA State of Independents Conference.

Dawn Ernst, director of information technology for Buchheit, spoke about the company’s proprietary software called Snapshot during her presentation.

Buchheit is an independent, multifaceted business with eight rural home and farm stores in Missouri and Illinois. Its operations include a feed manufacturing operation and logistics company.

The company has used technology to improve multiple aspects of business.

Buchheit developed its own software for creating operational efficiencies, developing consistent employee training practices and evaluating performance indicators. Ernst was heavily involved in creating the software.

“We had a lot of redundant work going on,” Ernst says. “Nobody really understood why they did it. They just knew they were told to do it.”

The company needed an array of real-time information, including store-specific price change recommendations on products; streamlined employee training programs so everyone

would be trained up to the same standards; a companywide digital communications platform; and data that was easy to interpret to improve worker productivity.

Buchheit chose to develop the program internally instead of outsourcing it or finding a ready-made solution because the company’s departments had been siloed, working too independently and too inconsistently, Ernst says.

Having Ernst and another Buchheit employee dig deeply into the data helped them understand the full business better, she says.

“Why did we build this all in house? We couldn’t afford not to,” Ernst says. “By building this system internally, we’ve really been able to wrap our arms around so many things.”

Trying Tech Solutions In addition, two retailers presented about technology innovations they have implemented. Matt Woods, owner of Woods Hardware in Cincinnati, and Eric Hassett, owner and president of Hassett Hardware in the San Francisco Bay Area, both use technology to improve employee efficiency and customers’ shopping experiences.

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HARDWARE RETAILING | February 2020

Woods provides 3D virtual reality store tours through his operation’s website as an e-commerce tool.

“It allows customers to scroll through our stores when we’re not even open,” Woods says.

He also uses technology to make sure his company’s online information is correct and store name searches bring up his business. Other technology allows him to optimize delivery routes.

Some of the technologies Hassett has experimented with have improved employee productivity at his businesss. For example, he uses a conversion metrics tool to track the relationship between employee engagement with customers and conversion rate.

Hassett Hardware also uses platforms such as Yelp to promote the business and promptly address good and bad customer reviews.

Additionally, the company uses mobile apps for a variety of tasks. The apps are useful for texting information to customers and accessing digital forms, checklists and time clocks.

“We’ve been using devices to speed up everything,” Hassett says.

To see more from the conference, watch some highlights at TheRedT.com/soic-video.

During a panel discussion, Jackie Sacks of Round Top Mercantile in Round Top, Texas, explained how her business has grown and changed to meet the needs of its evolving community.

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• Conditions and protects any wood surface, especially teak and other tropical hardwoods • Replenishes finished or unfinished dry wood surfaces on chairs, tables, benches, chests, desks, lounge chairs, etc.

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For Wholesale Pricing Call Howard Products, Inc. 800.266.9545 Or Visit Our Website www.HowardProducts.com February 2020 | HARDWARE RETAILING

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02

Check Your Files Preparing Your Succession Planning Documents

W

hile you may not like to think about it, you need to plan for what will happen if you are abruptly unable to continue in leadership. To do this kind of succession planning, there are a variety of legal and financial documents you should have on hand at all times, whether you are actively planning for succession or it’s still in the distant future.

With help from Gary Pittsford, president and CEO of Castle Wealth Advisors, this installment of Hardware Retailing’s yearlong succession planning series will help you understand a few of the documents you should have at the ready all of the time so a transfer of ownership is smooth, regardless of when it happens. You can draw up most of these with the aid of a lawyer or accountant.

Power of Attorney What: General durable financial power of attorney (POA) and durable power of attorney for health care.

Why: All business owners should have these documents, regardless of when they plan to sell. They dictate who will make important decisions for the business and for your health if you are suddenly unable to do so.

They don’t have to be the same person.

Avoid these mistakes: Assign a POA before you need it, but don’t neglect to update it when necessary.

For example, if you change your address or get married or divorced, it’s important to update the document.

Also, don’t rush to decide who you should appoint as your POA. This person will be entrusted with making major decisions if you are unable to. Make sure the person you choose is someone you would trust with your life.

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HARDWARE RETAILING | February 2020

Wills and Trusts What: Revocable living trusts and wills prepared by an estate tax attorney.

Why: These documents will outline who will control your assets when you die. They allow family members to have clear expectations about how your estate will be divided after you’re gone. A well-written trust can provide some privacy over your assets and could prevent some expensive estate taxes.

Avoid these mistakes: Remember to make a provision for everything you own in your will or trust. If a beneficiary is not designated for a particular asset, then your state laws will dictate where it will go. Include life insurance proceeds, retirement plans and trusts. Also make sure the wording in the will and trust is clear.

You don’t want the estate documents being incorrectly interpreted in court.

Business Letter What: A letter written by the business owner outlining responsibilities in case of death or illness.

Why: This letter should indicate who has the authority to continue to conduct official business if the owner is unable to do so. The letter will indicate who will have authority with the bank to sign checks and deal with vendors. It will also provide all passwords for connecting with software programs and financial institutions necessary to run day-to-day business.

Avoid these mistakes: If you know who you will appoint to conduct official business, make sure that person is an official signer on your account at the bank.

Follow the Series Online In every issue of Hardware Retailing in 2020, we will be highlighting a component of succession planning.

In addition to catching up on all of the print content, see additional resources at TheRedT.com/succession.

Passwords can (and should) change frequently, so make sure you are keeping a master list in a secure place and that a few trusted individuals know how to access them.

Financial Documents What: Income statements, balance sheets and tax documents from the past two or three years.

Why: A new owner needs to be assured that the business will provide enough cash flow to maintain profitability.

They will also use the financial statements to gauge the overall value of the business and negotiate a selling price.

Avoid these mistakes: Make sure your balance sheets are filled out properly and that you are correctly representing your assets.

It’s common for retailers to undervalue their inventory, which will affect the overall value of their business. Also make sure you’ve identified those areas where you could improve your operation. As you’re thinking about ways to improve your business, focus on gross margin. Pittsford says most retailers could boost their gross margins by at least 1 or 2 percentage points. A higher gross margin will be more appealing to a buyer.

Stock Redemption Agreement What: A contract between your business and all stakeholders.

Why: This document will control how ownership is transferred under certain conditions. Typically, it will outline what will happen to ownership in cases of certain trigger points: death, divorce, retirement, termination or disability. Creating this agreement ahead of time means you won’t be negotiating details of a buyout during a crisis. This is an agreement that needs to be in force at all times, not just when you are planning for a sale.

Avoid these mistakes: Make sure you have covered all the trigger points that could cause a change in the business ownership. Most retailers will create a plan for what will happen in case of their death, but Pittsford says retailers should also address the possibility of a disability or debilitating disease, such as cancer or Alzheimer’s.

Have a separate paragraph in the agreement that covers each of the possible trigger points, as conditions may

Check Your Numbers The Cost of Doing Business Study, available from the North American Retail Hardware Association (NRHA), provides industry averages for some of your key profit indicators, such as gross margin after rebate, inventory turnover and sales per square foot. Potential buyers want to see a business that is profitable, so you can use the study to give them a perspective on where yours stands.

To learn more about the study, visit nrha.org/codb.

be different for each. Make sure the price set for the company as stated in the agreement is current. Once a year, the owner should meet with the stakeholders and determine an updated price for the company, taking into consideration any recent changes.

February 2020 | HARDWARE RETAILING

63

RESOURCE REVIEW | BOOK

The Servant

By James C. Hunter

T

Brian Kabat operates four stores in the Pheonix area and recommends books to his staff as part of their professional development. He asks employees in leadership positions to read “The Servant” to help them grow in how they treat and lead people.

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

If you’re into leadership and management, this book is off the grid a little bit. It applies to more than business and is relevant to family life.”

— Brian Kabat, Kabat’s Ace Hardware Stores, Arizona

“The Servant” by James C. Hunter describes the journey of a businessman who learns about servant leadership in a monastery and applies the lessons on humbly leading people in work and life.

KABAT’S TAKEAWAYS

1

64

Leading Is Different From Managing “The Servant” is important because it focuses on leadership. Since we are all mainly in the people business, we manage things, but we lead people.

2

HARDWARE RETAILING | February 2020

Relationships Are Key to Doing Work Well Leadership is about getting things done through people. There will always be two dynamics involved in achieving success through a team of employees—the task and the relationship.

3

Everything You Do Impacts Other People Reading “The Servant” gives all our store team leads fresh insight into how their position impacts the people around them, not just at work but in their personal lives, as well.

4

Grow as a Leader for a Lifetime This book gives a very unique perspective on what it takes to be a great leader and evolve over a lifetime. You can immediately use the content to improve your team.

Build your bench.

Boost your bottom line.

Empower top employees to increase sales and bottom-line profits with the industry’s most complete retail management program.

Don’t miss out. Apply today.

nrha.org/rmcp

Newsmakers

A Legacy of Generosity

M

arcus Moran Jr. worked in the independent home improvement industry for nearly 50 years, but his legacy extends beyond his significant work in his family’s business.

Moran was a former president and CEO of Aubuchon Hardware, which operates more than 100 stores in New England and upstate New York. He died Dec. 1 at age 76.

In 2013, Moran encouraged the North American Retail Hardware Association (NRHA) to start a retail leadership training program specific to the independent home improvement sector.

He retired from Aubuchon Hardware in 2017, exiting his role of vice president of acquisitions after decades of helping the company expand. However, he did not leave the industry entirely.

Moran supported the NRHA Retail Management Certification Program by sending students through the training and serving as a course instructor until 2018.

“Our industry has lost a great champion,” says Bob Cutter, NRHA president and CEO. “He selflessly shared his knowledge and years of experience with students because he knew that for independent retailers to thrive, we all need to work together and learn from each other.”

Franklin Cloninger, general manager of Triangle True Value Hardware in Greenwood, South Carolina, was a program participant who appreciated how much Moran cared about his young career.

“I am not my own best advocate and he saw talents in me I didn’t see in myself,” Cloninger says. “This legend in the industry saw talent and value in me and I’ll carry that forward with me for the rest of my life. That gives me confidence to try new things and move my business forward.”

Moran cared deeply about people and the industry. “He was very passionate.

He made me proud to be in the same industry he was in,” Cloninger says.

When Moran spoke about business, other retailers paid attention, according to John Morgin, owner of Roselawn True Value in Roselawn, Indiana.

“You couldn’t help but listen and learn,” Morgin says. “He enlightened so many people with the information and experiences he shared. His perspective was that you can share anything about your business and no one is going to duplicate you.”

Rob Mathews, who is also an NRHA program instructor, says Moran’s generosity to share openly with other retailers about his business and the example he set by starting a fund to support needy Aubuchon employees have impacted the industry as a whole.

“He was a real innovator in how he approached business, particularly when they started divesting some stores and buying other stores,” Mathews says.

“He was willing to openly share that with many other people in the industry, when most leaders would hold that information tightly. He really set an example with his graciousness and giving nature.”

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Top Headlines Go to TheRedT.com/subscribe to receive Hardware Retailing’s weekly industry news digest.

Receive the latest headlines, reports from industry events and exclusive online content in your inbox.

United States

1

True Value Appoints First Chief Commercial Officer

2

Orgill Announces Executive Team Updates

3

Ace Hardware Names President of Emery Jensen Distribution

Canada

1

Key Executives Step Back at WSB Titan as Company Readies for Future

2

TIMBER MART Signs Retailers in Eastern Ontario

3

BMR Evaluates Recruitment Plans to Enhance Growth

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

Industry Calendar Visit TheRedT.com/calendar to find more information about these upcoming industry events and see what else is coming up.

Contact editorial@nrha.org to get your event on the calendar.

February 7-10 Do it Best Spring Market Indianapolis

14-16 Monroe Hardware Spring Market Myrtle Beach, South Carolina

14-16 True Value Spring Reunion New Orleans

March 22-23

13-15

1-4

Florida Hardware Spring Market Orlando, Florida

27-29 Orgill Spring Dealer Market Orlando, Florida

International Hardware Fair Cologne, Germany

12-14 Ace Hardware Spring 2020 Convention & Exhibits Chicago

Follow NRHA and Hardware Retailing on social media for live updates from industry events! @nrha_official

@hardwareretailing

PACOA Spring Dealer Market Flushing, New York

14-17 International Home + Housewares Show Chicago

19-21 Blish-Mize Spring Market Overland Park, Kansas

Ad Index Ajax Wire Specialty Co. ............................................. 28 www.ajaxwire.com; 855-966-2529

Impress Art................................................................ 27 www.impressart.com; 631-940-9530

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

Ancra Cargo............................................................... 30 consumer.ancracargo.com; 800-626-8353

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

Orgill Inc. ............................................................ 70-IBC www.orgill.com; 800-347-2860

Bee’s Wax Polish ...................................................... 17 www.beeswaxpolish.com; 844-673-3729

Iron & Oak ................................................................... 5 www.ironandoak.com/HRM; 866-281-4509

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

Brave ........................................................................... 5 www.braveproducts.com/HRM; 866-281-4421

Ironclad Performance Wear Corp.............................. 25 www.ironclad.com; 972-996-5664

Pro Hardware ....................................................... 42-43 www.prohardware.com; 303-792-3000

Coles Wild Bird Products Co. ...................................... 9 www.coleswildbird.com; 877-426-8882

Koelnmesse Inc........................................................... 7 www.eisenwarenmesse.com/tickets; +1 773-326-9925

Rust Patrol................................................................. 51 www.rust-patrol.com; 803-396-8400

Core Distribution Inc.................................................. 48 www.xtendandclimb.com; 612-330-9915

Lighthouse for the Blind............................................ 26 www.rapidfix.com; 800-542-3697

Sakrete ........................................................................ 1 www.sakrete.com; 866-725-7383

Do it Best Corp..................................................... 12-13 www.doitbestretail.com; 888-364-8237

Lumax........................................................................ 29 www.lumax.com; 844-660-6876

Sashco .................................................................. 34-35 www.sashco.com; 800-767-5656

ECI Solutions ........................................................ 52-53 www.ecisolutions.com; 800-588-5128

Maxim.......................................................................... 5 www.maximmfg.com/HRM; 888-376-0849

Soudal........................................................................ 60 www.soudalusa.com; 877-873-8739

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

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

Stihl Inc........................................................................ 3 www.stihl.com; 800-467-8445

Hardware Retailing Podcast ...................................... 60 www.TheRedT.com/pod

Midwest Fastener ................................................ 18-19 www.fastenerconnection.com; 800-444-7313

Turfco Rental ............................................................... 5 www.gnedi.com/turfco-rental; 800-822-0295

High Performance Retailing....................................... 21 www.hprmag.com

Mr. LongArm ............................................................. 49 www.mrlongarm.com; 800-821-3508

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

Howard Products....................................................... 61 www.howardproducts.com; 800-266-9545

NRHA All-Industry Conference.................................. 11 www.nrhaconference.com

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

Imperial Blades.......................................................... 31 www.imperialblades.com; 800-743-9844

NRHA Retail Management Certification Program ..... 65 www.nrha.org/rmcp

February 2020 | HARDWARE RETAILING

67

L Last W Word d

DIY Landscaping Projects Take Root

T

he Home Improvement Research Institute (HIRI) recently collected data regarding what motivates home improvement customers to tackle gardening and landscaping projects. Their data can help you strategize your inventory to best meet these

688

customers’ needs before spring weather returns to many parts of the country.

Take a look at some of the key findings below, and learn more about homeowners’ gardening and landscaping projects by visiting HIRI at hiri.org.

1

2

3

Who Are Your Customers?

Of shoppers completing gardening and landscaping projects, 59 percent are female. What’s more, around 80 percent are older than 40.

HIRI recommends using this information to guide your marketing.

A Job Well Done One of the key drivers of DIY gardening and landscaping projects is the emotional payoff shoppers feel after completing them. Notably, 95 percent of gardening projects are completed by shoppers themselves without pros.

Changes Are Afoot HIRI’s research indicates lawn and garden landscaping projects are often motivated by major life events. Nearly 20 percent of shoppers recently began a new job and 16 percent recently retired. More than 10 percent got married.

5

6

7

Product Possibilities Bloom When shopping for their DIY gardening projects, 68 percent of shoppers say they are most likely to purchase products with an attractive appearance. Durability and price are the next most important drivers.

No Matter the Age HIRI’s research indicates owners of new and older homes are completing DIY landscaping projects.

Over 45 percent of DIY landscapers live in homes built at least 30 years ago, while nearly 55 percent of respondents live in homes built within the last 30 years.

The Perfect Project Of the DIYers HIRI surveyed, 55 percent planted a garden, flowers, trees or shrubs.

General landscaping projects were completed by 40 percent of survey respondents. Around one-quarter added pavers, edging or plants as part of their landscaping.

H HARDWARE RETAILING G | February F b y 2020 020

4 Doing Their Homework Researching plants and gardening styles is important to shoppers. Roughly 60 percent of gardeners actively research the subject before making a purchase, while 23 percent use advice from friends and family to complete their projects.

8 Local Roots Grow Strong DIY gardeners prefer brick-and-mortar stores.

More than 80 percent choose brick-and-mortar retailers for their project purchases, compared to just 19 percent who choose to shop online.

BY THE NUMBERS S

69%

of DIY gardeners plant perennials, making them the most popular choice.

$892

is the average spend on a DIY gardening and landscaping project.

February 2020 | HARDWARE RETAILING G

6 69

Orgill Spring Dealer Market February 27-29, 2020 Orlando

1 Million Square Feet of New Products, Deals and Ideas Orgill Dealer Markets have everything you need to grow your business.

Don’t Miss These Highlights: • Deep Discounts From Top Brands

• eCommerce Solutions

• New Product Launches

• Workshops From Industry Experts

• Idea-Generating Concept Stores • Complete Category Showcases

• How-To Demonstrations • Full Access to Orgill’s Team of Retail Specialists

Visit orgill.com/Dealer-Market-Advantage for a look inside an Orgill Market!

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

INCREASE MARGINS WITH

SCREEN REPAIR

Why Promote Back Room Screening Services?

Big Box Stores Don’t Offer It Increases Store Traffic Produces Higher Margins Promotes other store services

phifer.com