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Volume 230 • Issue 1 • January/February 2026 • hardwareretailing.com

Serving Hardware, Home Center & Building Material Retailers

Published by the North American Hardware and Paint Association

Industry Snapshot NHPA’s 2026 Market Measure Report Offers Insights Into the Year Ahead Page 20

CLOSING THE GAP How Top Retailers Turn Comparison Into Competitive Power Page 40

BOTTOM LINE ABLAZE Light Up Sales With Custom Fireplace Services Page 60

A BRIGHT FUTURE Nominations are open for the 2026 Young Retailer of the Year Awards

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Volume 230 • Issue 1 • January/February 2026 • hardwareretailing.com

Serving Hardware, Home Center & Building Material Retailers

Published by the North American Hardware and Paint Association

Industry Snapshot NHPA’s 2026 Market Measure Report Offers Insights Into the Year Ahead Page 20

CLOSING THE GAP How Top Retailers Turn Comparison Into Competitive Power Page 40

BOTTOM LINE ABLAZE Light Up Sales With Custom Fireplace Services Page 60

A BRIGHT FUTURE Nominations are open for the 2026 Young Retailer of the Year Awards

Based in Kalamazoo, Michigan, Midwest is a family-owned hardware supplier that services customers all over the country, from Alaska to Hawaii. We have a long-standing reputation in the fastener, hardware, and electrical aisle for being a knowledgeable, responsive, and trusted partner. We accomplish this through a fully customer-focused approach by offering quality products and keeping commitments. Our national sales force is dedicated to servicing local hardware stores, lumberyards and more. Our business is your hardware.

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CONNECTIONS

COMING IN FEBRUARY

Dig Into Spring Market Season 1025 East 54th St. Indianapolis, Indiana 317-275-9400 NHPA@YourNHPA.org YourNHPA.org

OUR MISSION

In this special digital-only February issue of Hardware Retailing, preview all the major markets, hear from fellow retailers on how they prep for spring market season, discover the best ways to gain margin by making smart purchases at the shows and learn how to engage with vendors and build those relationships.

The North American Hardware and Paint Association (NHPA) helps independent home improvement, paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.

DIRECTORS Christian Herrick, Randy’s Do it Best Hardware, Jackson, Virginia Michelle Meny, Meny’s True Value, Jasper, Indiana Jeremy Peterson, Family Hardware, Florida Katie Prus, Abbotsford Paint and Decorating, British Columbia, Canada Michael Sacks, FLC Holdings, LaGrange, Texas Emily Wood, Wood’s Ace Hardware, Bolts & Brews SECRETARY-TREASURER Bob Cutter, NHPA President and CEO

CHIEF OPERATING OFFICER Dan Tratensek CHIEF FINANCIAL OFFICER & EXECUTIVE VICE PRESIDENT, BUSINESS SERVICES David Gowan VICE PRESIDENT OF CONTENT DEVELOPMENT & PUBLISHER Scott Wright, swright@YourNHPA.org

CONTENT AND PRODUCTION

317-275-9400, editorial@YourNHPA.org EDITOR AND DIRECTOR OF CONTENT DEVELOPMENT Lindsey Thompson, lthompson@YourNHPA.org DIRECTOR OF SALES & MARKETING Austin Vance, avance@YourNHPA.org

NEWS & DIGITAL EDITOR Jacob Musselman, jmusselman@YourNHPA.org CONTENT DEVELOPMENT COORDINATOR Annie Dameworth, adameworth@YourNHPA.org SENIOR DESIGNER Autumn Ricketts PRODUCTION & DESIGN ASSISTANT Samantha Mitchell

CHAIRMAN OF THE BOARD Joanne Lawrie, Annapolis Home Hardware Building Centre, Annapolis Royal, Nova Scotia

IMMEDIATE PAST CHAIRMAN Ned Green, Weider’s Paint & Hardware, Rochester, New York

PRESIDENT & CEO Bob Cutter

MARKETING MANAGER Olivia Shroyer

NHPA BOARD OF DIRECTORS

EXECUTIVE VICE CHAIRMAN Ash Ebbo, Clement’s Paint, Austin, Texas

EXECUTIVE STAFF

MARKETING & DIGITAL CONTENT ASSISTANT Cassie Reed Hardware Retailing (ISSN 0889_2989), Copyright© 2026 by the North American Hardware and Paint Association (NHPA), is published eight (8) times per year (January/February, March, April, May, June, July/August, September/October, November/December) by the North American Hardware and Paint Association, 1025 E 54 St, Indianapolis, IN 46220. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50/year. Canada $75/year. All other countries $110/year. Single copy $7. The Annual Report issue can be purchased for $30. Business and Editorial Offices: 1025 E 54 St. Indianapolis, IN 46220 Accounting and Circulation Offices: The North American Hardware and Paint Association, 1025 E 54 St., Indianapolis, IN 46220. Call 317-275-9400 to subscribe. Periodicals postage is paid at Indianapolis, IN and additional mailing offices. POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209.

STATE & REGIONAL ASSOCIATIONS

SALES & PRODUCTION ASSISTANT Freda Creech

SALES REGIONAL SALES DIRECTOR Jordan Rice jrice@YourNHPA.org | 217-808-1641 SENIOR BUSINESS DEVELOPMENT REPRESENTATIVE—WEST COAST Renee Changnon rchangnon@YourNHPA.org | 217-621-7363

ASSOCIATION PROGRAMS

800-772-4424, NHPA@YourNHPA.org DIRECTOR OF EDUCATION & TRAINING Cody Goeppner, cgoeppner@YourNHPA.org TRAINING MANAGER & EDITOR Jesse Carleton, jcarleton@YourNHPA.org OPERATIONS COORDINATOR—ADVANCED EDUCATION & TRAINING Amy Hayes, ahayes@YourNHPA.org

MIDWEST HARDWARE ASSOCIATION Jody Kohl, 201 Frontenac Ave., P.O. Box 8033 Stevens Point, WI 54481-8033 800-888-1817; Fax: 715-341-4080

NHPA CANADA SUPPLY-BUILD CANADA Rebekah Doerksen, Executive Assistant Direct: 204-953-1692 | Cell: 204-990-3536 Toll-Free: 1.800.661.0253 ext. 103 102-226 Osborne St. N. Winnipeg, MB R3C 1V4

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES CIRCULATION DIRECTOR Richard Jarrett, 314-432-7511, gcscs8@gmail.com

Scan the QR Code to Access the Guide

BIGGER, BETTER & DIGITAL Discover the hottest products and innovations in the 2026 Hot Products Buying Guide—tools and tech to help independent retailers grow and stay competitive.

HARDWARE RETAILING | January/February 2026

No strings. Just firepower for your store. Turn up the heat with our retail-ready grill partners.

Volume 230 | Issue 1 | January/February 2026 CONTENTS

DEPARTMENTS 06 ................................ ................................Taking Care of Business 08 ........................................... Editorially Speaking 10............................................... Industry Viewpoint 12 .................................................................................. Trends 14.............................................................. ..............................................................New Products 66................................................................ ................................................................Newsmakers 70........................................................................... ...........................................................................Calendar 71 ......................................................................... .........................................................................Last Word 20

COVER STORY

The Right Foot Forward With expert insights and data highlighting the performance and projections for the home improvement channel, the North American Hardware and Paint Association’s Market Measure Report is your key resource for 2026.

TRAINING

OPERATIONS

Close the Gap Taking the time to conduct a gap analysis is a crucial checkbox for independent retailers to prioritize actions, allocate resources and develop strategies that drive measurable improvement.

HELMETS TO HOME IMPROVEMENT

Smart Training, Smarter Teams

A Military Mindset

For Parry’s owner Gwenn Werner, NHPA’s new RetailWise training videos have provided an effective and efficient way to get customer service training in the hands of her employees.

Facing a life-changing list of obstacles while serving in the U.S. Marines, Scott Morath gained a toolkit of skills that he now utilizes in his current leadership role at ALLPRO.

PRODUCTS

CATEGORY SPOTLIGHT

Stay Vital With Live Goods

Heat Up Sales

A live goods category can bring tons of color, life and vibrancy to your operation. Industry expert Darrell Baker shares best practices on sourcing, merchandising and successfully selling the live goods department.

See how one retailer creates customer loyalty and generates revenue through a custom fireplace program, guiding customers through the installation process, starting with design and following up with routine service checks.

HARDWARE RETAILING | January/February 2026

TAKING CARE OF BUSINESS

Fortune Favors the Bold D id your business grow last year? I know it is only January, and you’re likely still waiting on the final financial reports to come back from the accountants, but my guess is you have a pretty good yes or no answer to my question. But in any case, let me take a guess. If you are like the majority of the home improvement industry, your business was likely flat in 2025. Maybe up a bit, maybe down a bit, but few retailers were setting the world on fire over the past 12 months. (If you want a full accounting of how the industry performed last year and a peek into how we think it will perform this year, turn to our Market Measure Report starting on Page 20.) I say “few” because there were definitely some outliers last year who managed to grow operations despite a market filled with headwinds. As we start 2026, I think another question you might want to consider is, “how did these other businesses manage to grow in a stagnant market?” Which leads to the question, “how do I do that?” Hopefully, I can shed a little light on both those questions by telling you some of the common traits we saw from retailers who posted strong growth last year. First, most of the growth we saw in 2025 did not come “organically,” by simply selling more to existing customers. Instead, most organizations who expanded their top-line sales did so through addition—by acquiring new customers, opening new locations and adding new product lines and niches. While this might not seem too surprising, in many ways it goes against a lot of folks’ business instincts. When the markets are tight, people tend to buckle down and not want to spend money, hoping for the dark clouds to clear.

But whether it is the stock market or a home improvement retailing business, so often it is the winners who buck their natural instincts, who invest while others are selling. We don’t see the market changing too much this year, which means, if you want to grow, you are going to

“Any plan for growth in 2026 should include more additions than subtractions, because as our CFO here at NHPA tells us all the time, ‘you just can’t cut your way to prosperity.’” have to tighten up your shoelaces and buck against some of those conservative instincts. Any plan for growth in 2026 should include more additions than subtractions, because as our CFO here at NHPA tells us all the time, “you just can’t cut your way to prosperity.” Hopefully, that answers your question of, “how do I do that?” It isn’t easy. It takes some thoughtful planning, the willingness to lean into advice from partners and some good old-fashioned business bravery. So, instead of sitting around hoping for growth this year, are you going to be brave? Remember, fortune favors the bold.

Dan M. Tratensek Chief Operating Officer

HARDWARE RETAILING | January/February 2026

About Dan Dan Tratensek is the chief operating ofﬁcer for the North American Hardware and Paint Association (NHPA), a trade organization representing the $300 billion retail home improvement industry in the U.S. and Canada. In his role, Tratensek works with retailers, wholesaler representatives and other channel partners to establish strategies to help NHPA work toward its mission of helping retailers become better, more proﬁtable operators.

CONNECT

Send Dan a Message dant@YourNHPA.org Dan Tratensek

BUILDERS & CONTRACTORS TRUST TITEBOND

EDITORIALLY SPEAKING

Change Is Coming H

appy New Year! With the calendar pages switching to a New Year, many people are looking to make positive changes in their lives by setting New Year’s resolutions. I used to set New Year’s resolutions each year, but got so frustrated with myself for breaking them that I decided instead to choose a word to focus on throughout the year. Change is hard for many of us, myself included. Falling into predictable patterns provides comfort and safety and creates calm in chaos. Knowing what to expect soothes anxious nerves. Avoiding change protects against getting hurt, feeling stupid and losing control over the things around us. Or so I used to think.

December. The February, August, October and December issues will be digital-only and the remaining issues will be the traditional format you’ve been used to the last few years—a print edition with a digital issue. So what is the “why” behind our changes? The double print issues will allow us to expand on our content pieces, providing additional insights and information we aren’t able to fit into a single issue. We will also have additional space to add in timely pieces that speak to the topics that retailers need to know about right now. The digital-only issues will provide the space for even more content and offer a platform for us to explore

“The value proposition you receive from Hardware Retailing—timely, high-quality and comprehensive content—is here to stay.” The reality is, change is inevitable offering video, audio, links and other and being reluctant to embrace change digital means to connect with readers. or even attempting to avoid it forever Our mission—to help you be better is fruitless and can cause more harm and more profitable—isn’t changing, than good. While I’m not great at it and the value proposition you receive yet, I’ve been working on being more from Hardware Retailing—timely, open to change. One way I’ve been high-quality and comprehensive better at embracing change is by content—is here to stay. We are excited understanding the why behind to offer all this in new and exciting ways. the change. Here’s to a New Year and to Going into 2026, the North American Hardware and Paint Association (NHPA) embracing what’s next. is embracing a number of important changes that I’m really excited about. Depending on how closely you pay attention, you may have already noticed one of the changes—this issue is a double issue. In 2026, we’ll publish four double issues of Hardware Retailing Lindsey Thompson in January/February, July/August, Editor and Director of September/October and November/ Content Development

HARDWARE RETAILING | January/February 2026

About Lindsey Lindsey has been with NHPA since 2021, starting with the association as an associate editor. In her current role as editor and director of content development, Lindsey oversees strategy and production of NHPA content under its two media brands. She covers all aspects of the industry, creating content that helps independent retailers become better and ore proﬁtable operators. Lindsey’s favorite part of her job is getting to meet all of the incredible retailers who make up the independent channel.

CONNECT

Send Lindsey a Message lthompson@YourNHPA.org Lindsey Thompson

SAVE THE DATE.

The Retail Sourcing Show. MARCH 30-APRIL 2, 2026 LAS VEGAS CONVENTION CENTER LAS VEGAS, NV

LEARN MORE AT NHS26.COM/NHPA-RSVP

OPERATIONS

The Best Defense INDUSTRY VIEWPOINT

Retailers share their strategies to protect against margin erosion and guard the bottom line at hardwareretailing.com/margin-protection.

Beyond Percentages: The Real Story Behind Gross Profit Margin W

elcome to the first article in the Inside The Margin series, where I will be taking a deep dive into the many and varied things that happen in your business every day and the impact they have on your gross profit margin result. It is important to remember at this early stage that we do not bank gross profit percentage, we bank gross profit dollars. The intended outcome for you should be to achieve the optimum level of gross profit margin on every item that banks you the most gross profit dollars every day, week, month and year. We will be breaking this series up into categories and focusing on what is best practice in each area. The first category is the level of margin that is on your items as they arrive in your business from delivery and get put on the shelf. This is often referred to as your back door margin and is driven by what retail price you put on each item. Having disciplined retail pricing processes in your business is crucial here to prevent underpricing and overpricing problems from occurring. The things we will look at are: • Following vendor suggested retails and where you need to adjust • Accurate item segmentation to account for price sensitivity levels • Using a margin matrix to set your own retails • Margin versus markup • Tailored price rounding

• Using a Competitive Price Index (CPI) to match your competition The next category is the level of margin that is on your items after they are purchased by customers. This is the margin that shows on your daily and weekly sales reports and is often referred to as your front door margin. The things we will look at are: • Category price plans for contractors and account customers • The perils of unnecessary and unchecked discounting • Poor purchasing and inventory control that leads to markdowns and clearance pricing (and just FYI—overpricing items in the category above will impact you here, too) The third category is the margin that shows on your yearly profit and loss statement and is often referred to as your final margin. The things we will look at are: • Inventory write-offs • Incorrect levels of freight recovery • Correct handling of vendor rebates and commissions How you handle each category and how to minimize the errors will determine your performance. I look forward to taking you Inside the Margin and helping you improve your gross profit result.

Mike Aylen

Industry Expert and NHPA Strategic Consultant

HARDWARE RETAILING | January/February 2026

About Mike Mike Aylen has been working with hardware store owners in Australia and the U.S. to help them improve their retail pricing for over 15 years. With a no-nonsense approach, he guides retailers in using his SMART Pricing Program to develop more accurate and disciplined pricing strategies. These will grow sales and margin dollars on all items in the business, and importantly give retailers more confidence in their overall pricing direction.

CONNECT

Send Mike a Message mike@bloomretail.net Mike Aylen

Scan the QR Code to book a consultation with Mike.

YOUR ADVANTAGE IN EVERY AISLE. For more than a century, House-Hasson has supported independent hardware stores, home centers, and lumberyards across our region. We understand the realities independent retailers face and our job is to make that easier. with support you can reach directly, pricing and programs that strengthen your bottom line, and a selection shaped by what your customers need. From hands-on guidance to flexible solutions built around your business, we’re here to help you stay profitable, solve challenges quickly, and keep your store moving forward. If your business grows, so do we—and that’s the measure we care about most.

OPERATIONS

The First Step TRENDS

When it comes to attracting pro customers, retailers who have found success in this area suggest starting small. Learn more at hardwareretailing.com/b2b-start.

Macroeconomic Challenges

Contractor Obstacles How Economic Pressure and Market Sensitivity Are Impacting ontractor onﬁ ence ccording to the Q3 2025 Quarterly Contractor Activity Tracker released by The Farnsworth Group and the Home Improvement Research Institute (HIRI), contractors have felt the impacts from recent economic pressures in the home improvement industry, most notably through slower timelines, increasing material costs and project cancellations. Independent retailers can support pros through some of these macroeconomic challenges by keeping their prices as low as possible while still protecting margin and keeping lumber and building materials well-stocked. Assuring your store carries the lumber and building materials products pros and contractors need is one way you can support them through project challenges, as product availability is the biggest challenge when it comes to projects. As increasing competition is another major concern, consider promoting your top contractors to customers to help them gain new customers. With labor shortages abounding, your operation can also help your pro and contractor customers by advocating for the trades. This can be done by partnering with trade schools, hosting trade events and supporting organizations that drive careers in the trades.

HARDWARE RETAILING | January/February 2026

Material costs

59%

Economy

56%

Labor

42%

Tariffs

39%

Availability

31%

Project Challenges Material Costs

51%

Labor

44%

Competition

36%

Engagement

26%

Regulations

22%

Labor Challenges Availability

60%

Quality

59%

Costs

55%

Retention

33%

Training

32%

Source: Q3 2025 Quarterly Contractor Activity Tracker, The Farnsworth Group and Home Improvement Research Institute

EISENWARENMESSE.COM

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Kym Selph, Koelnmesse Inc. Cologne International Trade Fairs – North America 8770 West Bryn Mawr Avenue, Suite 1300 Chicago, IL 60631, P: 312 546 3957 k.selph@koelnmesse.us www.koelnmesse.us

BU Y S T I C KE T

PRODUCTS

Retailer Recommendations NEW PRODUCTS

Send a note to editorial@YourNHPA.org about products you can’t keep on the shelf. Include your name, your business name and why you love it.

Socket Set This 48-piece set includes standard and deep 6-point sockets in both SAE and metric sizes. It features SK’s SureGrip design that applies torque to the side of fasteners not the corners, reducing risk of rounding. Sockets are finished in high-polish SuperKrome for corrosion resistance. SK Tools | sktools.com

Soft-Sided Cooler The ArcticZone 16-Can Zipperless Cooler from Titan is a soft-sided cooler, featuring a flip-open lid for quick access. This cooler features a radiant heat barrier and frozen base with a can liner to separate food from drinks. Arctic Zone Products | arcticzone.com Photo Courtesy of CA Innovations

Corrosion Inhibitor Patches The FP-10 Presaturated CLP Patches from Shooter’s Choice are soaked with the FP-10 Lubricant Elite CLP formula. In packs of 100, these patches clean the bore, apply lubrication to metal surfaces and protect firearms or muzzle-loaders against corrosion. Shooter’s Choice | shooters-choice.com

HARDWARE RETAILING | January/February 2026

Car Wash Liquid Gear Hugger Eco Car Wash is bio-based and nontoxic. It’s formulated with agave and eucalyptus extracts to create a foam that lifts dirt, grease and wax. It is safe for all vehicle surfaces, including paint, plastic, clear coat, glass, metal, chrome and rubber. Gear Hugger | gear-hugger.com

Barbecue Sauce Blazing Star BBQ Original Sauce is made with tomato puree, sugar, honey, soy sauce, cider vinegar and a hint of chipotle puree. Mustard, molasses and a mix of chili pepper, onion, garlic and spices round out the flavor. It has a balanced, multicultural taste, not tied to any regional barbecue style. Blazing Star BBQ | blazingstarbbq.com

Deck Fastening System The Collated Cortex is a hidden-fastening plug system for decking from FastenMaster. Collated Cortex plugs come on pre-aligned strips to speed up installation and match the grain of the deck boards. This system is designed to work with AZEK, Trex, TimberTech, WOLF, Fiberon and more. FastenMaster | fastenmaster.com

January/February 2026 | HARDWARE RETAILING

Chicken Swing Set The Chicken Swing Set from Win World International has six perches that move freely so birds can perch or balance. The frame is weather-resistant and fits most coops and runs. It installs with basic hardware. Win World International Trade | winworldintl.com

Concrete Cutter The Concrete Cutter MPC 350 is a gas-powered floor saw designed for precision cuts in concrete, featuring a Honda GX270 engine and a 10-liter water tank. This concrete cutter is built for job site stability and maneuverability. Menegotti North America | mgtamerica.com

HARDWARE RETAILING | January/February 2026

Scent Diffuser The Car Diffuser from Sparta Candle Co. is an 8-mm diffuser designed for vehicles that comes in a wide range of scents and can be strung up under the rearview mirror. Sparta Candle Co. | spartacandleco.com

Indoor Planter Box The Vego Garden self-watering herb planter box with trellis features a 17.5-by-7.3-inch planting area, 0.66-gallon water reservoir with indicator, breathable inner pot and a curved trellis for vertical growth. It is available in Fog Gray, Sage Green or Cream White. Vego Garden | vegogarden.com

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January/February 2026 | HARDWARE RETAILING

S P O N S O R E D

C O N T E N T

Generations of Innovation The Wooster Brush Company Celebrates 175 Years of Excellence in the Independent Channel

Weathering a dynamic home improvement industry and changing manufacturing landscape for the last 175 years, The Wooster Brush Company has updated processes and products along the way. But one thing hasn’t changed: the heart of Wooster Brush and its commitment to the customers and employees who make it successful. Adam Foss founded what was then Wooster Brush Works in 1851 at the age of 29, after he bought a crate at an unclaimed freight auction in Cincinnati containing hog bristles. With the help of his brother, he used those

bristles to make and sell the first Wooster paintbrushes door-to-door in Ohio. From those first primitive paintbrushes to the current innovative offerings, quality has always remained No. 1 for the company. “We will never sacrifice quality for efficiency. If we can’t do it more efficiently at the same or better quality, we won’t do it,” says The Wooster Brush Company president Ben Maibach. “We improve and adapt products over time to adjust to the industry and customer needs, but within those changes, we want each product to offer the same high-quality performance every single time.”

A History of Excellence 1851

The Wooster Brush Company founded

1937

Wooster invents the angle paintbrush

HARDWARE RETAILING | January/February 2026

1941

During World War II, Wooster uses synthetic filament to provide nylon brushes to the U.S. military

1964

Wooster introduces synthetic fabrics for roller covers

While products have been crucial to the company’s bottom line, it’s Wooster’s people—employees and customers—who have truly driven growth and success, sustained in a strong company culture. The Wooster Brush Company’s culture is established in the concept of “do the right thing.” “It might cost us a nickel here, or more than a nickel there, but we know that if we do the right thing over time, it will be good for our employees, it’ll be good for our customers and good for everyone who is associated with us,” Maibach says. When asked about what’s next, Maibach’s simple answer is, “More of the same.” “To some, that might sound negative, but this isn’t an ‘if it ain’t broke, don’t fix it’ scenario. We are not 175 years old because we make brushes a certain way

or make perfect decisions in all cases,” Maibach says. “We are 175 years old because our focus has been, and will continue to be, people. At the top of that list of people are our employees and their families. For 175 years, this has been the true glue that has held our company together and allowed us to thrive.” Maibach believes that many independent retailers have a similar story, and he and his company are proud to serve the independent channel. “They are people who work both on and in their business,” he says. “If we continue to put our people first, they will continue to do what they’ve always done—innovate, improve processes and take pride in what we’ve accomplished, yet never be satisfied that we are ‘there.’ Our culture, together with our quality is what is behind us and what is in front of us.”

The Wooster Brush Company’s 175-year legacy is founded in the company’s commitment to its people—customers and employees—and a passion to serve the independent channel with innovative products.

1999

Wooster unveils the Shortcut, a short-handled paintbrush

2019

Wooster launches a redesigned logo and product packaging that boldly embraces red—the company’s primary color

2024

Wooster launches GripTech MAX, an innovative handle technology featuring a rubberized soft-grip texture extending up and around the handle

January/February 2026 | HARDWARE RETAILING

2026

LOOKING BACK, MOVING FORWARD Dig Into the NHPA 2026 Market Measure Report

s you dive into this year’s Market Measure Report, things might look a bit different than they have in the past, particularly when you browse the size of market numbers and market breakdown. The numbers themselves aren’t radically different from what the DAN TRATENSEK North American Hardware and Paint Association (NHPA) has published in the past, but we have revised our estimates on the makeup of the industry in terms of store counts, unit breakdown and sales contribution. The reasoning behind these changes is pretty simple—the industry is changing rapidly. We have said it before in this report and in our presentations that the

speed of change the industry has seen over the last five years has been nearly impossible to keep up with. The models we built 20 years ago to determine size of market, unit counts and contribution simply couldn’t keep pace with the rapid evolution of the home improvement retail landscape. Add to that the emergence of online players and the increasing sales of hardlines and home improvement through general merchandise retailers, and it’s easy to see how quickly old methodology can become outdated. To account for that, we have revised our industry unit counts. Instead of trying to force retailers into one of three buckets (hardware stores, home centers, lumberyards), we have built new, more inclusive buckets. Now, our breakdown looks at independent hardware, paint, farm supply and allied retailers in

HARDWARE RETAILING | January/February 2026

one category, and then has separate categories for independent home centers, independent lumber and pro dealers and national home improvement chains. On the sales contribution side, we have taken the overall market sales estimates and put them through a similar process. Instead of cramming those numbers into the three categories we have used in the past, we took a deeper look at contribution by type and added a separate category for general retail to the mix. We think all of these changes give a much more accurate picture of the industry’s makeup and make it easier to understand how sales of products flow through the channel. No model is perfect, and we will continue to revise this model as we move forward, but we are confident that the new presentation of the data will be much more useful for everyone who interacts with the data.

INSIDE THE REPORT From the Association ........................................................................... 20 Industry Breakdown ..............................................................................22 Financial Profiles ......................................................................................25 Canadian Retail Report....................................................................... 26 Home Improvement Research Institute................................. 28 Independent Retailer Index ............................................................ 30 Cost of Doing Business Study ..........................................................31 Ace ......................................................................................................................32 Do it Best and True Value ..................................................................33 Hardlines Distribution Alliance ..................................................... 34 Orgill ..................................................................................................................35 Economic Insights.................................................................................. 36

Ups and Downs Average Out to Stagnant Growth It’s not a cop out, but since the home improvement industry was upended by the COVID-19 pandemic, there is little about industry performance that has been easy to predict. Yes, the pandemic is now edging into six years ago, but the ripples of the pandemic and the “pandemic adjacent” impacts still working their way through the global economy continue to drive uncertainty, particularly in the home improvement space. After three years of rapid expansion, the home improvement industry entered a massive cool-down period at the start of 2024 that showed the industry posting its first year-over-year sales declines in more than a decade. So, as 2025 began, NHPA was anticipating a return to modest growth for the industry somewhere in the mid-2% range for the year. And while there are some positive numbers being reported, when you strip out inflation and look at organic growth, the industry is still sitting on the launch pad, awaiting lift off. Industry performance in the first half of 2025 was essentially flat, with NHPA reporting 0% growth through June and U.S. Census data estimating a slight 0.5% dip during this period. Key performance indicators showed customer transactions down 0.4% while average ticket rose 0.2%, signaling softer foot traffic but resilient spending per visit. Major chains mirrored those trends: Home Depot posted small gains

year over year, while Lowe’s hovered between flat and slightly negative. Outside of sales growth, we are still seeing businesses try to cope with the post-pandemic operational challenges that are impacting net operating profits. From 2020 to 2022, hardware stores, home centers and LBM dealers enjoyed double-digit increases in top-line sales, but they also posted some of the highestever net operating profits. And similar to how sales have cooled sharply in the last two years, profitability has also normalized: hardware stores’ profit before taxes peaked above 9% during the pandemic but has since settled to 4.7%—still above pre-2020 norms but well below recent highs. Retailers are responding by concentrating investments in core categories including paint and sundries (48%), lawn and garden (43%) and hardware and fasteners (38%). Many plan more aggressive inventory strategies in 2026 as they anticipate improving demand. Because we saw some incremental improvement in the third quarter and favorable weather patterns emerging in Q4, NHPA’s forecasts for the industry in 2025 point to “slightly up” year-over-year performance. Once again, when you try to mitigate inflation’s impact on sales increases and look at organic growth, we feel the year will end slightly positive, with growth of just below 1% (0.89%). This malaise is being driven by a number of factors that seem unfortunately persistent: consumer sentiment, rising costs of living, elevated interest rates and potential tariff-driven

price increases still creating headwinds for channel growth. On the positive side, as we head into 2026, a cooling inflationary environment and added interest rate relief could help stimulate discretionary project spending. Because of these potential positives, outlook for the industry strengthens in 2026, when both NHPA and the Home Improvement Research Institute (HIRI) expect conditions to improve. NHPA projects 2.4% sales growth if weather patterns remain favorable. HIRI’s projections are somewhat more optimistic, estimating 3.8% total market growth, with the consumer segment expanding 4.3% and the professional segment up 2.9%. Over the following three years, HIRI anticipates a return to long-term normalized growth of roughly 3.5% annually and NHPA’s outlook is slightly more guarded, anticipating growth of approximately 2.7%. Macroeconomic indicators seem to support the cautious optimism. S&P Global expects U.S. GDP growth of 1.7% in 2025 and 2.4% in 2026. Inflation is easing, CPI rose only 0.2% in July, though core inflation remains above 3%. Employment continues to soften, with July’s 73,000 job gain falling below expectations and unemployment edging up to 4.2%. Taken together, the data signals an industry emerging from a period of correction and preparing for slow but steady improvement over the longer term—driven by macroeconomic stabilization, gradual increases in consumer confidence and renewed investment at the store level.

January/February 2026 | HARDWARE RETAILING

INDUSTRY BREAKDOWN

2025

2023-2028

Home Improvement Sales by Month

Sales by Store Type

Outlets

(in billions)

January February March April May

$32.9 $31.5 $39.8

$46.8 $43.9

July

$43.2

2025

$40.4

October

—

Independent HI*

18,780

$36.8

Home Centers

4,640

LBM/PRO

$86.8

LBM/PRO

5,675

Chain

$285.0

Chain

10,890

General Retail

$56.8

TOTAL

$61.6

Home Centers

$37.0

January

0.95%

February

-6.13%

March

3.48%

April

1.15%

May June

-2.82%

2027

TOTAL

August

-5.35%

September

0.81%

October

—

YTD

-0.89%

2029

HARDWARE RETAILING | January/February 2026

$530.6

2026

18,760

Home Centers

4,610

LBM/PRO

5,625

Home Centers

$38.2

Chain

LBM/PRO

$90.4

TOTAL

Chain

$292.8

Independent HI*

18,730

General Retail

$59.2

Home Centers

4,595

$543.3

2027

10,900

39,895

LBM/PRO

5,610

Independent HI*

$63.8

Chain

Home Centers

$39.8

TOTAL

LBM/PRO

$94.4

Independent HI*

18,710

Chain

$302.2

Home Centers

4,575

LBM/PRO

5,595

$60.5

2028

10,900

39,835

Chain

$560.7

10,880

Independent HI*

$66.9

TOTAL

Home Centers

$41.6

Independent HI*

18,685

LBM/PRO

$95.8

Home Centers

4,545

Chain

$312.2

2029

$63.3

$70.3

Home Centers

$40.2

LBM/PRO

$98.9

Chain

$325.4

General Retail

$65.8

$600.6

Independent HI*

3.0%

Home Centers

1.8%

LBM/PRO

2.6%

Chain

2.7%

General Retail

3.0%

2.7%

Compound Annual Growth Rate 2024-2029

39,760

LBM/PRO

5,575

Chain

10,860

TOTAL

$579.8

Independent HI*

TOTAL

39,955

Independent HI*

$62.7

TOTAL

Compound Annual Growth Rate 2024-2029

$58.1

Independent HI*

General Retail

-1.39%

5,650 10,900

$88.5

TOTAL July

LBM/PRO

$285.4

TOTAL

1.22%

4,630

Chain

General Retail

2028

18,775

Home Centers

LBM/PRO

TOTAL

Sales Growth 2024 vs. 2025

2025

39,985

Independent HI*

Chain

TOTAL

2026

2024

$526.1

Independent HI*

General Retail

$40.3

September

$60.7

Home Centers

TOTAL

$45.0

June

August

2024

Independent HI*

39,665

Independent HI*

-0.5%

Home Centers

-2.0%

LBM/PRO

-1.8%

Chain

-0.3%

TOTAL

Sources: U.S. Department of Census, Monthly Retail Sales Report NAICS 444 and NSA and NHPA calculations *Includes independent hardware, paint, farm supply and allied retailers

INDUSTRY BREAKDOWN

LEGEND

Sales

U.S. Home Improvement Industry Sales

YOY Growth

North American Hardware and Paint Association Projections

Compound Annual Growth 2024-2029 = 2.7%

700

IN USD BILLIONS

600 500 400

$526.1

$530.6

$543.3

-3.4%

0.9%

2.4%

2025

2026

$560.7

$579.8

$600.6

3.2%

3.4%

3.6%

2027

2028

2029

300 200 100 0 2024

Home Improvement Product Sales Performance Home Improvement Research Institute/IHS/Current Prices

Compound Annual Growth 2024-2029 = 3.7%

700 600

IN USD BILLIONS

500 400

$573.2

$587.4

$609.7

3.6%

2.5%

3.8%

2024

2025

2026

$633.0 3.8%

$660.1

$688.0

4.3%

4.2%

2028

2029

300 200 100 0 2027

Home Improvement Retail Sales U.S. Department of Census Monthly Retail Sales Report NAICS 444/NSA

Compound Annual Growth 2019-2024 = 4.9%

600

IN USD BILLIONS

500 400

$477.8

300

$384.5

$425.6

200

1.9%

10.7%

12.3%

$514.5 7.7%

$495.2 -3.8%

$488.5 -1.4%

100 0 2019

2020

2021

2022

2023

2024

January/February 2026 | HARDWARE RETAILING

INDUSTRY BREAKDOWN

Top Chains: Individual Performance 2024 Sales (in billions)

Stores at End of FY2024

Stores in 2025 (as of Q3 2025)

The Home Depot

$159.5

2,347

2,356

Lowe’s

$83.6

1,748

1,756

Menards Inc.

$13.2

341*

341

Sherwin-Williams

$23.1

Tractor Supply Co.

$14.9

2,296

2,364

Atlanta

Mooresville, North Carolina

Eau Claire, Wisconsin

Cleveland, Ohio

Brentwood, Tennessee

≠ Paint Stores Group in U.S. and Canada stores only *Sources: Company reports and NHPA research

Market Share Profile Top Chains: Industry Share Sales

No. of Stores

(as % of total industry)

2020

50.7%

15.6%

2021

51.1%

2022

Top Chains: Combined Performance Net Sales

No. of Stores

(in billions)

(at the end of FY)

2020

$210.2

9,379

18.0%

2021

$251.9

9,475

53.7%

29.5%

2022

$304.2

10,992

2023

53.3%

30.7%

2023

$290.2

11,243

2024

55.9%

28.8%

2024

$294.3

11,505

Source: NHPA calculations Top Chains include The Home Depot, Lowe’s, Menards, Sherwin-Williams and Tractor Supply Co.

HARDWARE RETAILING | January/February 2026

FINANCIAL PROFILES

2025 Financial Profiles of Leading Publicly Held Chains Home Depot

Lowe’s

Number of Stores (at end of FY2024)

2,347

1,748

Distribution Centers

500

120*

130-plus

103,749

112,000

—

Total Sales

$159.5 billion

$83.6 billion

$23.09 billion

Total Asset Investment

$96.1 billion

$43.1 billion

$23.63 billion

Total Inventory

$23.5 billion

$17.4 billion

$2.28 billion

Sales Per Square Foot

$655

$428

—

Inventory Turnover

4.8x

3.3x

5.15x

Net Sales to Inventory

13.9x

20.5x

9.9x

Total Sales Per Employee

$339,289

$309,630

$360,781

Average Size of Transaction

$89.31

$103.37

—

Gross Margin Return on Inventory

240.0%

162.5%

484.8%

Net Sales

100%

Cost of Goods Sold

66.6%

51.5%

Gross Margin

33.4%

33.3%

48.5%

Total Operating Expenses

19.9%

12.5%

32.1%

Net Income (Before Taxes)

12.1%

10.9%

14.9%

Cash

1.7%

1.1%

Receivables

5.1%

1.1%

10.1%

Inventory

24.2%

40.3%

9.6%

1.9%

2.1%

Fixed Assets

67.0%

52.7%

77.1%

Total Assets

100%

Current Liabilities

29.8%

43.5%

28.8%

Long-Term Liabilities

63.3%

89.4%

54.1%

Shareholder Equity

6.9%

-33.0%

17.1%

Total Liabilities and Equity

100%

Average Size of Selling Area (sq. ft.)

Sherwin-Williams

Income Statement

Balance Sheet

Other

Source: Company annual reports ≠ Paint Stores Group in U.S. and Canada stores only n ludes re ional distri ution enters Cs lat ed distri ution enters ross do ter inals s and ul ill ent Centers Cs

Cs i

port distri ution enters

ul distri ution enters

January/February 2026 | HARDWARE RETAILING

CANADIAN RETAIL REPORT

CANADIAN INDUSTRY CONTINUES POST-COVID DOLDRUMS By Steve Payne, Editor-in-Chief, Hardlines Inc.

he health of the retail hardware and home improvement industry in Canada had its ups and downs both during and following the COVID-19 pandemic. In 2023, industry sales declined by 3.7%, and in 2024 sales dropped a further 2.3%. The Canadian industry ended up at C$57.317 billion in 2024—still up 14.2% from the last pre-pandemic year of 2019, but a far cry from the giant 21.2% leap that Canadian retailers in this industry took during the pandemic. Now, Canada’s retail home improvement industry is experiencing two challenges. Inflation is a common problem both in Canada and the U.S. The pandemic brought to both countries government-stimulated economies that ended up being inherently inflationary. Canada went from 0.7% inflation in the

first year of the pandemic to a high of 6.8% in 2022. Canada’s current rates of inflation are now running closer to 2%. Tariffs are also having an impact. Canada exports 77% of its goods and services to the U.S., while only 18% of U.S. exports go to Canada. In particular, sizable American tariffs on car parts, aluminum and steel have damaged the economy of Ontario—38% of the Canadian economy. Fortunately, an estimated 90% of this industry’s products still cross the border tariff-free, thanks to the U.S.-Canada-Mexico Agreement (USCMA). However, the USCMA deal is up for renegotiation in 2026. In this industry, the 2.3% drop in retailer revenues in 2024 was not felt by all the types of stores that Hardlines measures, of course.

HARDWARE RETAILING | January/February 2026

Canada’s 3,179 building centers, still running on from the COVID-era construction boom—and added by building materials inflation—posted a 0.6% shrink. They did better than other types of retail measured in our industry. Home goods retailer Canadian Tire, a category unto itself in Canada, posted a decline in revenues of 2.8% in 2024. (Hardlines measures only the home improvement side of Canadian Tire’s diversified retail sales from 502 Canadian Tire stores). Canada’s 293 big boxes suffered largely from a consumer confidence deficit, as they continue to do in the U.S. We measure them losing 4.2% in sales in 2024. Finally, hardware stores shrank the most, with a negative 5.4% in sales from their 896 units across the country in 2024.

CANADIAN RETAIL REPORT

Canadian Sales by Store 2024 *The industry, as measured by Hardlines, consists of sales at retail by all hardware stores,

Big-Box Stores

Building Centers

27.4%

53.0%

Canadian Tire

Hardware Stores

13.1%

6.6%

Looking ahead, hardware stores, with their convenience aspect and their connection to small communities and urban neighborhoods, are expected to remain destinations for cautious consumers. They do, however, face tough competition from discount chains and dollar stores. Building centers will be the most sensitive to the slowdown in housing and resales. Big boxes, and Home Depot Canada in particular, are expected to make gains next year after slower growth in 2025. One of the big trends all home improvement retailers must adapt to is the changing consumer. As demographics evolve, product assortments must change as well. The ageing Baby Boomer consumer has fueled the growth in safety and convenience products. These can include grips inside showers and even walk-in tubs. Younger consumers, representing a generation that is not comfortable fixing and repairing, require dealers to provide convenience LBM assortments, time-saving products and space-saving ideas. While the Bank of Canada is forecasting GDP to grow as much as 2.5% in 2025, the major banks are being more cautious, setting target growth at 1.5 to 1.8%. Meanwhile, affordability remains an issue, meaning demand will ease, compounded by a slowdown in immigration. In addition, unemployment rates have climbed through the middle of 2025, hovering at almost 7% this year, the highest it’s been since 2016. Our target for growth in 2025 is flat to 1.4% and slightly stronger in 2026, in anticipation of an easing of tariff concerns.

Canadian Home Improvement Industry Sales

IN USD BILLIONS

*The industry, as measured by Hardlines, consists of sales at retail by all hardware stores, building centres and big box stores in Canada, including estimated related hardware/home improvement/seasonal sales by Canadian Tire stores.

LEGEND

Sales YOY Growth

60 50

$52.5 40

$45.5

-3.0%

$58.5

$60.9

$58.6

$57.3

$58.1

$59.0

11.3%

4.2%

-3.7%

-2.3%

1.4%

1.6%

2022

2023

2024

2025

2026

15.5%

20 0 2019

2020

2021

January/February 2026 | HARDWARE RETAILING

HOME IMPROVEMENT RESEARCH INSTITUTE

2026 HOME IMPROVEMENT OUTLOOK: A YEAR OF REBOUND AND REALIGNMENT By Dave King, Executive Director of The Home Improvement Research Institute

fter a period of muted growth across 2024 and 2025, 2026 is shaping up to be a growth year for the home improvement industry. With several key economic and behavioral drivers aligning, retailers, manufacturers, and service providers can prepare for renewed momentum.

A Turn in the Housing Cycle Modestly declining mortgage rates are expected to increase existing home inventory and boost housing turnover, a trigger for home improvement activity. As homes change hands, demand

HARDWARE RETAILING | January/February 2026

for both necessary repairs and personalization projects will climb. Many homeowners are also sitting on historically high levels of home equity, which they’re more likely to tap into as borrowing becomes more affordable and the “lock-in” effect persists.

HOME IMPROVEMENT RESEARCH INSTITUTE

Spending Power Shifts

Dave King leads the Home Improvement Research Institute (HIRI) as executive director, a role he assumed in 2022 after belonging to HIRI as a member and subsequently serving on HIRI’s Board. He brings more than 25 years of experience in research, strategy and advanced analytics, with a dedicated focus on the home improvement market since 2013. HIRI, founded in 1981 as a cooperative of six manufacturers and retailers, has grown into the leading nonprofit research organization serving many of the industry’s largest brands. Members receive approximately $1 million of proprietary research annually, with roughly 50 deliverables that track contractor and homeowner behavior, forecast category dynamics and translate insights into practical guidance for product, pricing and go-to-market decisions.

The days of pandemic-fueled cash cushions are largely behind us. In 2026, growth will stem from wage gains (though this is under threat) and wealth accumulation. With real disposable income forecasted to rise 3.3%, homeowners are expected to cautiously return to project spending, particularly those in the top 20% of income earners, who continue to account for roughly half of all home improvement spend. Category performance will vary considerably, and nuances matter. DIY and emergency-driven spending will remain strong, while pro-led segments will see slower momentum due to labor challenges and cost pressures. That said, over half of contractors still anticipate revenue growth, reflecting resilience even amid tighter competition. “2026 will be defined by homeowners re-engaging with projects they’ve put off, not because of sudden confidence, but because waiting any longer no longer makes sense,” says Dave King, executive director of HIRI. “With increased access to financing and more homes changing hands, the industry should prepare for a lift, especially among high-income households and strategic remodels.”

The Cost Question While tariffs are expected to continue inflating the cost of building materials in 2026, only about one-third to

one-half of that inflation is currently being passed on to consumers. That gap may shrink in the year ahead, with suppliers absorbing less of the burden. Higher prices will contribute to greater overall dollar volume, though they may also lead to more deliberate purchasing behavior.

Looking Ahead After two slower years, the industry is entering 2026 with pent-up demand and conditions primed for a rebound under threat. Stakeholders who stay agile and customer-focused will be best positioned to capture that demand.

Stay Ahead With HIRI In a dynamic market shaped by economic shifts, consumer behavior and evolving channel preferences, access to accurate, forward-looking data is essential. HIRI members gain exclusive access to proprietary forecasts, in-depth homeowner and contractor studies, product category tracking and macroeconomic indicators that impact every corner of the home improvement industry. Whether you’re a manufacturer, retailer, distributor or service provider, HIRI delivers timely insights that help you make smarter business decisions, identify growth opportunities and understand your customers more deeply. Join hundreds of industry leaders who rely on HIRI to stay informed, competitive, and ready for what’s next. Learn more at HIRI.org.

“After two slower years, the industry is entering 2026 with pent-up demand and conditions primed for a rebound under threat. Stakeholders who stay agile and customer-focused will be best positioned to capture that demand.” —Dave King, HIRI

January/February 2026 | HARDWARE RETAILING

INDEPENDENT RETAILER INDEX

A MEASURE OF SUCCESS

ooking at how fellow independent home improvement operations are performing throughout the year gives retailers in the channel the data to make improvements to their operations. Since 2022, the North American Hardware and Paint Association (NHPA) has partnered with The Farnsworth Group to produce the Independent Retailer Index, which tracks key performance metrics quarterly. Every quarter, the index asks independent home improvement retailers to share year-over-year changes in: • Transaction size and count • Inventory investment • Cost of goods

• Profit margin dollars • Future operational investments The most recent Independent Retailer Index released in Q4 2025, shares some insight on how retailers are performing amid economic uncertainty. According to the index, which fielded responses from 57 different companies, representing hundreds of independent stores across the U.S., 57% of respondents reported increased sales growth year over year, up 29% from Q3 2024 and continuing the upward trend from 2023. “The third quarter was a small bright spot in an otherwise mediocre year for independent retailers,” says

ACCESS THE INDEX Be sure you’re on the list to receive the newest data from the Independent Retailer Index quarterly. Head over to YourNHPA.org/research/retailer-index to subscribe today.

HARDWARE RETAILING | January/February 2026

Dan Tratensek, NHPA chief operating officer. “The majority of our respondents indicated that sales were up year over year during the quarter, on average, about 2%. However, when you factor that 73% of our respondents were reporting increases in cost of goods, a fair bit of this positive momentum is likely due to rising prices. A stronger indicator of potential market momentum might be found in the second straight quarter, where we are registering an increase in transaction count from 2024. If dealers can continue to drive more transactions, it could be one key to breaking out of the malaise the industry has been in.”

COST OF DOING BUSINESS STUDY

EVALUATE YOUR OPERATION he 2025 Cost of Doing Business Study presents the orth erican ar are an aint ssociation s ann al financial an operational profile of independent hardware stores ho e centers l ber an b il ing aterials o tlets an paint an ecorating o tlets. etailers can se this ata to eas re their o n perfor ance against in str a erages. he ata e elops bench ar s retailers can se to establish financial plans to i pro e profitabilit .

Hardware Store Highlights O O O

Sales Per Customer of $39 is an all-time high roﬁt efore a es of 4.7% dropped for the thir ear in a ro Gross Margin After Rebate of 42.6% is the highest since

b t is the ﬁfth highest on recor

Home Center Highlights O O O

Comp Sales were down 1.18% n entor rno er . an ales er n entor . are the lowest levels ever recorded pical store ross argin fter ebate of 32.4% is the same as the prior year

LBM Outlet Highlights O O O

Comp Sales were up 1.57% rchase ebates of 2.0% is the highest e er recor e Sales Per Employee of $521,494 is the third highest since the st

began

Paint Outlet Highlights O O O

Owners’ Salary (0.4%) is the lowest since the paint seg ent beca Comp Sales were down more than any other segment at 2.22% plo ee ea co nt is up +2 the highest le el since

e part of the st

Hot Topics Highlights O O O

o erce an eli er erage percentage of sales online across all seg ents as 2% and the median was 1% n entor an oss re ention hrin e pense as a percent of sales across all seg ents was an average of 1.7% and median of 1% taff an ages plo ee rno er across all seg ents as at an average of 28.4% and median of 27%

January/February 2026 | HARDWARE RETAILING

WHOLESALER UPDATES

A CONVERSATION WITH ANDY SCHMITT FROM ACE What are some of the biggest challenges you feel independent retailers faced this past year? Across store tours and owner discussions, several consistent operational pressures stood out. Many retailers struggled with increased labor costs and the difficulty of finding and keeping qualified employees. Owners also highlighted the ongoing complexity of keeping up with pricing as tariff impacts and rising product costs continued to affect operation margins. Retailers also ANDY SCHMITT felt growing Vice President of tension between Retail Operations and New Business what customers expect. Shoppers increasingly want fast service, accurate inventory availability and seamless convenience, whether that’s quick checkout, easy fulfillment of online orders or fast delivery. For many retailers, meeting those expectations meant adopting new processes and adjusting operations. Owners shared that while they see the value in these changes, the pace can feel challenging when layered on top of day-to-day demands.

What were some of the biggest opportunities for independent retailers you saw develop this past year? At Ace, we launched a new store concept called Elevate, designed to create an experiential shopping environment that makes the customer experience easier and more enjoyable. We’re already seeing strong adoption, with a record number of Ace retailers embracing this format—and it’s driving double-digit sales growth. In addition, new partnerships with DoorDash and Affirm are giving our retailers more tools to meet evolving customer expectations, making it easier than ever to offer convenience, speed and flexibility.

What do you see as the challenges and opportunities in the coming year? The quest for speed in delivery will continue to be both a challenge and an opportunity for our retailers in the year ahead. On one hand, customer expectations for fast, convenient delivery are higher than ever, putting pressure on retailers to adapt their operations, manage inventory efficiently and meet demand without sacrificing in store service. On the other hand, this shift creates a significant opportunity to differentiate their stores, build stronger customer loyalty and drive incremental sales by offering solutions that their competitors may not provide.

How would you recommend retailers budget for 2026? From a top-line perspective, Ace retailers should plan for modest growth next year. While we remain optimistic about opportunities ahead, winning consumer loyalty and capturing discretionary spend will continue to be a challenge in a competitive retail landscape. To succeed, retailers will need to focus on operational efficiency and smart resource management. One key area of focus will be labor productivity. Leveraging smart scheduling tools can help our retailers ensure the right team members are in the right place at the right time, reducing labor costs while maintaining excellent customer service.

What were some of the specific highlights from your company in 2025? From a supply chain perspective, we continue to expand to better serve our

retailers. In July, we opened a new 1.5 million-square-foot retail support center in Kansas City, enhancing our ability to deliver products quickly and reliably across our network. From a growth perspective, we plan to open 175 new Ace Hardware stores and complete over 500 store projects this year, with many of these locations adopting the new Elevate store concept to create a more engaging and convenient shopping experience for customers.

What are you focusing on in 2026? In 2026, our focus will continue to be on service, convenience and quality. For quality, we will prioritize a fresh, differentiated assortment with the best brands that drive sales growth, ensuring in-stock and accurate inventory—critical for both in-store and e-commerce fulfillment. Convenience will center on fast, frictionless fulfillment and speed in delivery, leveraging our physical stores, which are already close to most homes, through our Red-Vested Heroes or partnerships like DoorDash. Deep digital engagement will further strengthen customer loyalty. Finally, service remains key, with in-aisle assistance driving sales. By training associates to actively help customers and fostering a customer-first sales culture, stores that invest in training see higher performance and stronger engagement.

How are you encouraging growth in 2026 and beyond? The combination of our Higher Ground Retailer growth strategy and the ingenuity of local owners continues to drive success. We focus on equipping retailers with the right tools—marketing, training, store design, digital convenience and operating methods—to help them compete and grow.

Read the full Q&As with wholesaler execs at hardwareretailing.com/Market-Measure-2026

HARDWARE RETAILING | January/February 2026

WHOLESALER UPDATES

A CONVERSATION WITH DAN STARR FROM DO IT BEST AND TRUE VALUE What are some of the biggest challenges you feel independent retailers faced this past year? Across the industry, retailers undeniably felt the impact of a softer retail environment and the roller coaster of tariffs. Inflationary pressures, higher borrowing costs and inconsistent consumer confidence created a year of volatility that tested everyone’s ability to adapt. But the real story is how effectively they were able to navigate those challenges with the strength of a united Do it Best and True Value team behind them. DAN STARR Consumer CEO behavior also shifted significantly. People are still spending, but they’re more discerning, seeking value, trustworthy service and businesses that deliver a strong local connection. That’s where independents have a distinct advantage—we’ve been intentional about equipping them to win.

What were some of the biggest opportunities for independent retailers you saw develop this past year? One of the greatest strengths of independent retailers is their deep connection to their communities and an ability to leverage those connections. Now they have a unified team behind them that amplifies those strengths with better tools, better programs and better buying power. Even in a year of economic uncertainty, retailers partnered with us made decisive moves to personalize the shopping experience to reflect their unique markets.

What do you see as the challenges and opportunities in the coming year? The broader economic landscape will remain challenging in the short term, from consumer caution to any potential lingering supply and cost pressures in trade. But the outlook is strong for independents, and I’m optimistic about what lies ahead. Consumers are increasingly choosing to shop local, repair or improve before replacing and invest in quality, service and expertise. Those values align perfectly with what independent home improvement dealers stand for.

How would you recommend retailers budget for 2026? This is the time to be strategic. Focus your investments where they’ll make the most impact. I always encourage our store owners to prioritize loyalty: loyalty from your customers and loyalty to your brand. Invest in programs and services that make it easy for your customers to find your store, connect with you and purchase from you, whether that’s through e-commerce, digital marketing or in-store experiences. The right brand presence can make a huge difference when competition is tight.

What were some of the specific highlights from your company in 2025? 2025 was a strong year for Do it Best and True Value. We delivered an industry-leading $132.1 million rebate to members—another powerful example of how the co-op model directly supports dealer profitability. We also launched three branding programs designed to meet the needs

of any independent dealer, giving them the most comprehensive and flexible brand offering in the industry. Our Do it Best e-commerce platform saw a 28% increase in digital sales and the relaunch of Destination True Value has exceeded expectations.

What are you focusing on in 2026? Our focus is on innovation, optimization and brand strength. These are the three pillars that will define the next phase of our growth. We’re investing in innovative technology to make doing business easier and more profitable for our dealers. We’re optimizing our distribution network and systems integration to improve efficiency, reduce costs and strengthen service reliability. And we’re doubling down on brand support to help every store, whether Do it Best or True Value, maximize the power of their brand to win in their local market. We’re guided by a simple principle—keeping our dealers at the forefront of everything we do.

How are you encouraging growth in 2026 and beyond? Our purpose has never changed. We’re here to serve our members and retailers and help them grow. Every initiative we develop, every system we modernize, every partnership we build is designed to maximize their profit and position them for long-term success. The “how” of that varies across our network of more than 9,000 independent dealers. For some, it’s expanding into new categories. For others, it’s modernizing store formats, building e-commerce capabilities or leveraging private label brands. But the common themes are clear: meet your customer where they are, understand your local market and manage your inventory smartly.

January/February 2026 | HARDWARE RETAILING

WHOLESALER UPDATES

A CONVERSATION WITH SHARI KALBACH FROM HDA What are some of the biggest challenges you feel independent retailers faced this past year? Some of the main challenges independent retailers faced in 2025 were navigating price increases and volatile tariff policies. These fluctuations made it difficult to adjust pricing while keeping an eye on rising inflation rates. In addition, inflation SHARI KALBACH and increased costs President of doing business made it difficult to retain staff and invest in training and advancement.

What were some of the biggest opportunities for independent retailers you saw develop this past year? Independent retailers are in unique positions to respond to market changes quickly. Therefore, there are so many opportunities for retailers to invest in and emphasize local niche categories and products. They also have the ability to offer unique or in-demand services that differentiate their store from big box competition.

repair and maintenance demands will remain steady as some homeowners choose to tackle urgent projects on their own.

How would you recommend retailers budget for 2026? Retailers might look beyond static annual budgets and instead focus on flexible models where spending can be adjusted depending on multiple criteria including demand, ROI, costs and personnel. In a market with persistently high costs, investing in areas that directly impact margins and increase efficiency can be helpful.

What were some of the specific highlights from your company in 2025? In addition to continuing to enhance the existing financial resources available to our group, we searched for a strategic acquisition that would create opportunities for growth and broaden collaboration within the independent channel. With that goal in mind, we completed the agreement in November 2025 that unites HDA

What do you see as the challenges and opportunities in the coming year? If lending rates continue on a downward trend, upward pressure on the housing market will create opportunities in both new construction and DIY home projects and remodeling. We remain optimistic that

34 HARDWARE RETAILING | January/February 2026

with North American Tool Suppliers (NATS), a buying group that specializes in the automotive category and compliments the hardware and farm members we serve.

What are you focusing on in 2026? In 2026, we are looking forward to integrating the merger with NATS and dynamically responding to the needs of our members, vendor partners and independent retailers.

How are you encouraging growth in 2026 and beyond? The merger with NATS presents us with several opportunities to boost growth including streamlined collaboration, combined conferences and events and access to a broader range of resources and programs. We are optimistic that with these resources, we can position the HDA network to quickly respond to market fluctuations, implement technology and programs that increase efficiency and pursue manufacturer partners that allow them and their retailer customers to grow and evolve.

WHOLESALER UPDATES

A CONVERSATION WITH BOYDEN MOORE FROM ORGILL What are some of the biggest challenges you feel independent retailers faced this past year? I would say the ongoing uncertainty in the economy has been the overarching challenge facing the entire channel for most of 2025. Continuing on what we saw in 2024, home improvement in general faced continued headwinds throughout 2025, with interest rates BOYDEN MOORE remaining high, President & CEO disruptive weather patterns and continued inflation all playing a role in restricting consumer spending on their homes.

What were some of the biggest opportunities for independent retailers you saw develop this past year? While it has been a tough year to find growth, we’ve seen retailers create opportunities. Many retailers are examining new ways to drive growth and profitability regardless of external market conditions. Right now, we are supporting hundreds of store reset projects, new store openings and conversions. All of this suggests that retailers aren’t waiting for the broader economy to drive their growth, they are creating their own momentum. They are identifying opportunities within their own communities, strengthening the in-store experience and positioning their businesses to capture demand wherever it emerges.

What do you see as the challenges and opportunities in the coming year? Looking ahead, we don’t expect a sudden shift in the market volatility that we are seeing. We can hope that interest rates continue to moderate and that

this moderation will spur some organic growth for home improvement activity. That being said, retailers will need to continue to be vigilant and aggressive in the way they run their operations. Success will depend on staying hyperfocused on assortment planning, buying right, streamlining operations, adopting technology where it makes sense and honing their multi-channel approach to interacting with customers.

store improvements, we’ve supported numerous initiatives to strengthen retailers’ online presence, enhance their loyalty programs and sharpen their marketing messages. And of course, one of the biggest milestones for us in 2025 was the opening of our new Innovation Center. This one-of-a-kind facility was designed from the ground up to serve retailers—giving them a dedicated space to explore emerging technologies, test new merchandising concepts and see firsthand how innovative tools and strategies can enhance their operations.

How would you recommend retailers budget for 2026?

What are you focusing on in 2026?

Every retailer’s plan should start with a clear understanding of the realities in their local market. This is an area we work closely with many of our customers—helping them evaluate opportunities in their specific markets, identifying opportunities for growth and then enabling them to make the changes they need to strengthen their businesses. All that being said, we anticipate modest, single-digit growth in 2026 for the industry. But it’s important to remember that growth can come in many forms. Retailers can grow by refining their assortments to better reflect customer needs, adding high-potential niche categories, enhancing their selling space or opening new locations in underserved markets.

As we look ahead to 2026, our focus remains the same as it has always been: “helping our customers be successful.” That’s not to suggest that we won’t continue to push improvements and innovations, but I also think it is important that we don’t lose our focus on aligning the products, programs and services we offer to meet the real-world needs of our customers. It is so easy to be distracted if you stray from your core mission. Our promise to customers is that we will not allow this to happen at Orgill. We will remain 100% focused on how we can do a better job of supporting their growth.

What were some of the specific highlights from your company in 2025? There is no doubt that, despite the market being relatively flat, 2025 was a big year for Orgill. And as always, the highlights for our company begin with the progress we’ve helped our customers achieve. One of the clearest indicators of that progress is the record number of store resets and conversion projects we completed in 2025. Beyond physical

How are you encouraging growth in 2026 and beyond? Growth for Orgill starts and ends with our ability to help our customers grow. No matter what the economy brings, our role is to support retailers as they navigate real-world challenges and uncover new opportunities. To do that, we’re focusing on being the most efficient and cost-effective distribution partner we can be. We’re investing in our distribution network and working closely with our vendor partners to ensure we deliver the products, programs and pricing to help our customers be successful.

January/February 2026 | HARDWARE RETAILING

ECONOMIC INSIGHTS

THE PATH TO PROGRESS: HOUSING AFFORDABILITY KEY TO UNLOCKING GROWTH

n mid-December the Federal Reserve took measures to lower interest rates for the third time in 2025, by an additional quarter point, attempting to bring inflation rates back down to 2% long term and as insurance policy against a weakening labor market due to policy uncertainty and tariffs. In a press conference detailing the measure, Fed Chair Jerome Powell noted that activity in the housing sector remains “weak” and supply remains low, with many homeowners “locked-in” to low-rate mortgages around 3%. He also indicated that the U.S. has not built enough housing, leading to affordability challenges due to a structural housing shortage. At time of publication, the 30-year fixed mortgage rate stood at approximately 6.2%, down from the 6.8% average recorded in the second quarter of 2025. While the home improvement industry has been fixated on how a third rate drop in 2025 would impact housing activity, how the additional quarter point rate drop factors into a housing market recovery remains unclear, especially since other factors, including historically high home prices, lagging wage growth and inflation, may play a bigger role in overall housing affordability. Noting that homebuying levels are at a 30-year low, the Harvard Joint Center for Housing Studies (HJCHS) reported in November that it’s not simply high interest rates alone, but high home prices that serve as the major barrier to housing affordability today. “Mortgage payments on the medianpriced home in the U.S. are more than double what they were in 2020, and

for the typical first-time homebuyer loan with a 3.5% downpayment, mortgage costs soared from $1,200 per month in 2020 to over $2,500 per month in mid-2025,” says Harvard Center for Joint House Studies senior research associate Daniel McCue. “The annual income needed to afford these costs has nearly doubled from under $70,000 in 2020 to over $130,000 in 2025, pricing out millions of potential first-time homebuyers.” According to the National Association of Realtors Housing Affordability Index, the qualifying median family income needed to afford the median priced existing single-family home has increased from $84,720 for a $392,800 home in 2022 to a $101,376 income for a $420,700 home in Q3 2025. While varying widely by region, the data suggests that home turnover will have to come from a slowdown in the growth of home prices so household incomes can “catch up,” which further delays entry into homeownership for first time homebuyers. Currently the average age for a first-time homebuyer is 40 years old, up from 32 years old pre-pandemic.

“The decline in interest rates is a positive step for millions of potential first-time homebuyers facing historically low affordability. But for homeownership to be attainable long term, far more needs to be done to increase the supply of modestly priced homes affordable to those with median incomes,” McCue says. McCue says the half-percentage point reduction in the interest rate that took place between May and October had the same effect on monthly mortgage payments as a 6% decline in home prices. “Another full percentage-point decline in interest rates (to 5.2%) would reduce monthly payments as much as a 10% drop in home prices,” McCue says. “Helpful, but nowhere near offsetting the impact of the surge in home prices since 2020.” He says it would take reducing interest rates to nearly zero to bring the monthly mortgage payment on the median-priced home back to its 2020 level. “But even then, total monthly costs would still be higher than in 2020 due to rising property taxes and insurance premiums,” he says.

“Another full percentage-point decline in interest rates (to 5.2%) would reduce monthly payments as much as a 10% drop in home prices. Helpful, but nowhere near offsetting the impact of the surge in home prices since 2020.” — Daniel McCue, Harvard Center for Joint House Studies

HARDWARE RETAILING | January/February 2026

ECONOMIC INSIGHTS

Annual Income Required to Afford US Median-Priced Home JCHS tabulations of Freddie Mac, Primary Mortgage Market Surveys; National Association of Realtors, Existing Single-Family Home Sales

140,000

2025, $103,678

IN USD

120,000

$526.1

100,000

-3.4%

80,000 60,000 2020, $68,350

40,000 20,000 0

00 002 004 006 008 010 010 012 014 016 018 020 022 024 2 2 2 2 2 2 2 2 2 2 2 2 2

Notes: Shows annual income needed for monthly housing costs (PITI) on the median priced home in the US to be no more than 31 percent of a household’s annual income. Monthly payments on the median priced US home assume a mortgage with a 3.5% downpayment on a 30-year fixed rate loan with zero points and 0.55% mortgage insurance, 0.35% property insurance, and a 1.15% property tax rate.

Nationally, according to the quarterly House Price Index (HPI) released by the Federal Housing Finance Agency, U.S. home prices rose 3.3% in the third quarter of 2025, compared to the same period in 2024, representing the slowest year-over-year price appreciation since 2013. While home prices are still appreciating, albeit at a lower rate, this indicates home prices are cooling off following a decade of robust price growth.

Remodeling Activity Set to Grow in 2026 According to Harvard Joint Center for Housing Studies Leading Indicator of Remodeling Activity (LIRA) annual expenditures for home improvement and maintenance are projected to remain steady into the middle of 2026, which is good news for independent home improvement

retailers catering more to repair and maintenance projects. The LIRA projects that year-over-year spending on home renovation and repair will rise by 2.4% in early 2026 before easing to 1.9% in the third quarter of next year. The director of Harvard’s Remodeling Futures Program, Rachel Bogardus Drew says that demand will remain stable in 2026, and remodeling spending is expected to reach $524 billion early in 2026, which is a new record high. “If the housing market begins to show signs of momentum, remodeling could be poised for stronger growth into 2027,” she says. “However, sluggish housing starts and uncertainty in the broader economy, which are factors in predicting remodeling expenditures, are creating headwinds to larger gains in renovation and repair spending.”

Home Depot on Housing Recovery At its 2025 Investor and Analyst Conference in early December, Home Depot’s executive VP and CFO Richard McPhail stated its market recovery case reflects performance expectations “once we see momentum in housing activity and increased spend on larger projects driven by pent-up demand.” “We believe that the pressures in housing will correct and provide the home improvement market with support for growth faster than the general economy, and we expect to continue to grow faster than our market,” McPhail says. “In our Accelerated Recovery Case, we could see sales and earnings per share grow faster in the event of a sharper housing recovery.”

January/February 2026 | HARDWARE RETAILING

2026

GROUP MERCHANDISING CONFERENCE

MAY 4 - 7, 2026 Embassy Suites Downtown at Centennial Park Atlanta, GA As one of the most interactive events in the industry, HDA’s Group Merchandising Conference is designed to maximize face-to-face interaction and drive the formation of business relationships. Featuring 30-minute, scheduled appointments with HDA member distributors, attending vendors have the opportunity to set up an entire hotel suite with displays, sample product, literature and digital presentations. Combined with networking receptions and meals, there are countless opportunities to discuss program information, demo product and form business and social connections that drive growth.

For more information or to register for the GMC, please contact Michele Simes at 720.875.2219 (direct) or at michele.simes@hdaworks.com www.groupmerchandisingconference.com HDA Vendor Partners

SCAN ME

to hear from past GMC attendees

RESOURCES

The True Costs OPERATIONS

Purchase your copy of NHPA’s Cost of Doing Business Study to see how your company compares to the industry at YourNHPA.org/CODB.

Engaging in regular gap analyses has allowed leadership at Vermont Outlet True Value: Home Improvement Center to address operational shortfalls and encourage continued growth.

CLOSING THE GAP BY LINDSEY THOMPSON

Lean Into Gap Analyses to Effectively Compete and Grow

40 HARDWARE RETAILING | January/February 2026

n life, comparison is the thief of joy, but when it comes to business, comparison is a key component to evaluate progress and gauge success. In the independent home improvement industry, running a gap analysis is one of those tasks high-performing retailers tackle on a regular basis and a crucial task to see blind spots and points of improvement in an operation.

To aid retailers in the process of conducting gap analyses, the North American Hardware and Paint Association (NHPA) annually conducts the Cost of Doing Business Study, which provides detailed financial information from hardware stores, home centers, lumber and building materials (LBM) outlets and paint and decorating outlets in the U.S. In each segment, data is presented for the typical store, for high-profit stores, for single-unit and multiple-unit companies and for sales volume categories. In addition, there is a five-year historical trend for typical stores in each segment, including paint. For over 100 years, independent home improvement retailers have used the Cost of Doing Business Study to benchmark their business against industry averages, identify ways to reduce costs and increase profits, uncover hidden growth opportunities and plan for long-term financial success. “The Cost of Doing Business Study allows retailers to see direct results between their income statement and balance sheet versus the rest of the industry,” says Dave Gowan, NHPA chief financial officer. “They can use the ratios included in the study to guide a plan for revenue growth and to help cut expenses.”

Analysis in Action Started as an Army Navy Surplus Store by John and Nellie Samore, Vermont Outlet True Value: Home Improvement Center opened in Los Angeles in 1949. A few years later it became an outlet store, selling paint, plumbing, tools, ceramics, clothing, hardware and other merchandise at a significant discount. John and Nellie’s three sons—John, Ron and Jim—have been active in the business at various times throughout the history of the Vermont Outlet. Today, Ron is the president and chief

operating officer, Jim has retired but still provides guidance and John assists in a consulting role, increasing the efficiency, productivity and modernization using his over 50 years of experience as a CPA, including 21 years as a partner with Arthur Andersen. “Our growth over the years can be attributed to the fact that our customers are not only treated with respect, but our product knowledge helps them quickly solve their problems,” John says. “Our prices are reasonable, and our store size makes customers feel comfortable and makes it easy for them to find what they need.” Taking part in gap analyses using the Cost of Doing Business Study has allowed for continued growth and improved the operation’s bottom line by focusing on the matrices and indices that enhance pre-income tax profits. John compares his operation’s data with the high-performing retailers’ numbers presented in the

study and also looks at The Home Depot’s numbers for another angle. “Even though it is billions of dollars bigger, The Home Depot has two locations three miles away in each direction of our store, so it’s important to look at those numbers as well to best compete in our market,” he says. “Also, because it is a public company, information is available on The Home Depot from the Securities and Exchange Commission and its website, such as annual and quarterly reports, to help me.” John conducts a gap analysis four times a year, and along with the Cost of Doing Business Study and Home Depot reports, he utilizes the True Value Work Bench. When looking at the data from these different sources, John hones in on sales, cost of goods sold, gross profit, sales per square foot, customer count and sales per customer and others mentioned in the study.

“Our growth over the years can be attributed to the fact that our customers are not only treated with respect, but our product knowledge helps them quickly solve their problems.” —John Samore Jr., Vermont Outlet True Value: Home Improvement Center

January/February 2026 | HARDWARE RETAILING

“Our team members are focusing on add-on sales by looking at what the customer is buying and then making recommendations.” —John Samore Jr., Vermont Outlet True Value: Home Improvement Center

42 HARDWARE RETAILING | January/February 2026

Meaningful Growth Growth at Vermont Outlet True Value happens thanks to knowledgeable employees and a wide product assortment combined with an emphasis on always striving to improve in all operational areas.

As a result of the most recent gap analysis, John has taken steps to improve declining sales, one of the operation’s major issues. The operation’s annual sales goal is to increase sales by 10% and have a gross profit margin of . “Our team members are focusing on add-on sales by looking at what the customer is buying and then making recommendations. Upselling is also part of it, but much less so,” John says. Even though sales are even with , ermont utlet’s average gross profit is down y ecause sales to professionals are down. Being in Los Angeles, John says they can’t rely solely on DIY. “Pro counts are down. So is DIY, but the pro hurts more. We would be out

of business if we depended on DIY. The same holds true for Home Depot, Lowe’s and others,” John says. “We all need the pros, which is why both Home Depot and Lowe’s are making major pro-related acquisitions.” As it looks to woo additional pro customers, John says the business is restrategizing business development because of numerous changes in the store’s urban market, from government regulations to economic conditions to natural disasters. “Our two business developers are continuing to visit job sites, increasing contact with representatives at management companies and renewing relationships,” John says. “We are making our name known and showing them we can be competitive in pricing.”

Getting frontline employees onboard with new expectations and strategies needed to close gaps starts with leadership providing more transparency. “Employees attend monthly team meetings and receive full financial transparency, so they each feel they own a part of the ermont utlet,” John says. “ ur various financial incentives keep them in the game from the top to the bottom as a team and individually. We empower employees to do the work that needs to be done to grow. The goal is to keep everyone thinking like an owner, which is why the Cost of Doing Business is invaluable and shared with our associates.”

January/February 2026 | HARDWARE RETAILING

OPERATIONS

Training That Speaks Your Team’s Language TRAINING

RetailWise is now available in English, Spanish and French-Canadian. Sign up today at YourNHPA.org/retailwise.

TRAINING SMARTER, NOT HARDER NHPA’s New RetailWise Features Microtraining Videos to Deliver Low-Effort, High-Impact Results BY

L I NDSEY

THO M P S O N

s it continually strives to make independent home improvement retailers better and more profitable, the North American Hardware and Paint Association (NHPA) is leaning into technology to bring efficient and time-saving training to the channel. The new RetailWise program delivers fast, high-impact two-minute training videos developed with artificial intelligence that are designed

to strengthen the frontline skills of independent hardware, paint and lumber retailers. Built for use in team huddles, during shift meetings and throughout the onboarding process, this series will help improve performance, culture and consistency—without disrupting store operations. Designed for today’s fast-paced retail environment, RetailWise delivers 52 professionally scripted video lessons.

Right on Time At Parry’s, employees utilize NHPA’s RetailWise microtraining videos to learn during the times most convenient for them.

January/February 2026 | HARDWARE RETAILING

“Two minutes may seem short, but when that time is intentional and focused, it becomes incredibly powerful. These micro-lessons help retailers strengthen their teams without pulling them o the sales oor,” says ody oeppner, NHPA director of education and training. “Independent retailers need training that moves at the speed of their stores. RetailWise was designed to deliver meaningful development in the moments when teams actually have the time—right before a shift, during a huddle or even etween customers.” Expanding the reach of the program and meeting employees where they are, the videos are available in English, Spanish and rench- anadian. “Offering RetailWise in English, Spanish and rench- anadian ensures training is accessible to entire teams—not just a few individuals,” oeppner says. “ hen everyone can learn in their preferred language, the whole operation wins.” RetailWise training categories include customer experience and sales techniques; leadership and people development; operational excellence;

46 HARDWARE RETAILING | January/February 2026

“RetailWise was designed to deliver meaningful development in the moments when teams actually have the time—right before a shift, during a huddle or even between customers.” Cody Goeppner Director of Education and Training, North American Hardware and Paint Association

Learn Your Way The entire RetailWise video library from NHPA is available through NHPA’s learning platforms with 100% device accessibility—watch from mobile, tablet or desktop.

WATCH Scan the QR Code to preview RetailWise microtraining lessons in action.

January/February 2026 | HARDWARE RETAILING

merchandising and inventory; marketing and local promotion; safety and risk management retail tech simplified store culture and team engagement. “Training isn’t just about skills, it’s about culture,” Goeppner says. “RetailWise helps reinforce what great customer service looks like, how teams communicate and how employees show up for each other. That consistency builds stronger stores.”

Training in Action A second-generation family-owned store, Parry’s in Hamilton, New York, is continually growing to meet the needs of its DIY and professional customers. Owner Gwenn Werner added the RetailWise program to the operation’s

training o erings in late after seeing RetailWise advertised in NHPA emails. “I subscribed immediately,” Werner says. “Since we already utilize other NHPA training programs, this felt like a natural extension of our current training resources.” For Werner, the short-form videos are especially valuable because they work well when the team has limited time and because the bite-sized format leads to better retention. “ ach employee learns di erently,” Werner explains. “These quick videos let us train whenever we have a few spare minutes, and our employees retain far more from short, focused lessons.” Werner says she has been using videos in all of the program’s eight categories.

“The selection provides a nice assortment of content for both our hourly employees and our managers,” she says. “I particularly appreciate the customer experience and sales techniques categories, as they serve as great reinforcement for what we already teach in the store.” So far, Parry’s employees have been watching the videos independently on their own time, and Werner has received positive feedback from employees, who have appreciated that the videos are relevant, short and to the point. “Ultimately, our main goal is to maintain the reputation of having the best employees in town, and RetailWise is another valuable tool to help us achieve that,” Werner says.

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SCAN TO VISIT WEBSITE

MISSION DRIVEN

Scott Morath Brings a Military Mindset to the Independent Channel BY

acing a life-changing list of obstacles and challenges while serving in the U.S. Marine Corps, Scott Morath uses the toolkit of skills he gained during his time in military service in his leadership role today in the independent channel. Morath’s military journey began when the Marines sparked his interest while he was searching for next steps after high school and learned his cousin had enlisted.

A N N I E

PA L M E R

“The Marines sounded like a fun option, so I went to the recruiter and told him I wanted to enlist,” he says. Morath served for eight years in the . . arine orps, first as a ri eman at Camp Lejeune, North Carolina, where he was deployed throughout the Mediterranean. While deployed, he participated in Operation Sharp Edge, a noncombatant evacuation of the American Embassy in Monrovia, i eria, during the first i erian civil war. Morath was then deployed to

50 HARDWARE RETAILING | January/February 2026

Operation Desert Shield and Storm in Saudi Arabia. Upon his return, he re-enlisted and was reclassified as a legal specialist in 1992, working in various roles for the sta udge advocate’s office in uantico, irginia. After his time in active duty, Morath worked for Headquarters Marine Corps for six years before moving back to Tampa, Florida. There, he found a marketing role at ALLPRO through a staffing agency. e was hired for the position and went back to

ASSOCIATION

An Honor to Serve

NHPA will share the stories of these hometown heroes in all of its media brands. Visit YourNHPA.org/veterans to learn more and nominate a veteran from your business to honor.

A New Way to Serve NHPA Program Honors Military Veterans Who Have Served Our Country, Channel While there is no way to repa the sacriﬁces made by veterans of the armed forces, the North American Hardware and Paint Association (NHPA) recognizes that not only have these individuals made a lasting impact on their country, but they are also a prominent an positi e in ence within the home improvement industry. NHPA honors the ongoing impact military veterans make throughout the home improvement industry through its Helmets to Home Improvement recognition program, with the National Hardware Show as the progra s ofﬁcial fo n ing sponsor and venue partner.

January/February 2026 | HARDWARE RETAILING

ASSOCIATION

Nominate a Veteran Help us honor those who have served our country and our channel. Visit YourNHPA.org/veterans to nominate a veteran from your business to be recognized.

school shortly after to earn a degree in marketing and communications. Today, Morath serves as ALLPRO’s vice president of marketing. The variety of the independent channel is one of Morath’s favorite aspects of working in the industry. “Everyone here at ALLPRO has a broad range of responsibilities,” he says. ”Plus, I don’t know if you’ve looked around this industry lately, but there’s a colorful cast of characters out there and this office is no di erent. t ma es coming to work every day fun.” Morath says the thick skin and “never say die” mindset he gained during his time in the military have brought him far in the independent channel. “The independent channel is full of obstacles and challenges, and I think having that military mindset goes a long way in dealing with those,” he says. Morath discovered a profound purpose during his time serving as a Marine. He carries that purpose into not only his current role at ALLPRO, but into his life. “My favorite part about serving was when I found the most meaning or purpose,” he says. “We evacuated over 2,600 people in Monrovia during a bloody coup and later secured Iraqi positions as we pushed through Kuwait in the Gulf War. Moments like those are what we trained for and the ones I reminisce about the most.” Morath believes a veterans’ motivation and ideology are qualities that equip them well for the independent channel. “I believe we served because we are idealists at heart and wanted to contribute to the good fight,” he says. “I think that ideology is what makes veterans a good fit for the independent channel. Independents are out there every day believing in themselves and their team, fighting to make their community a better place for themselves, their families and their employees.”

Scott Morath (right) discovered a deep purpose during his time serving in the U.S. Marine Corps that he brings to his role at ALLPRO today.

T H A N K YOU TO O U R PR O GR A M S PO N S O R S

52 HARDWARE RETAILING | January/February 2026

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DA R R E LL

BAK ER

hile many hardware retailers have been selling plants for a long time, some have just started recently and others have avoided the extra work and complexity of this category. Whatever the case for your operation, live goods can be a strong profit generator for your stores. Customers and employees thoroughly enjoy live plants; there’s something special about having color and vitality injected into a hardware operation that brings excitement and joy to many. However, that’s probably not at the forefront of the minds at the big-box stores when they invest in plant sales. For them, the category of “garden” rakes in about $20 billion in sales annually, which happens to be their single biggest department. Although they don’t publish a breakdown to show the exact amount of live goods that fit into the category with soils, grills and patio furniture, estimates show live goods make up half of the category’s sales. Regardless of the number, local independent retailers can compete with the big-box stores in assortment, selection and quality of product.

54 HARDWARE RETAILING | January/February 2026

PRODUCTS

Flowering Sales OPERATIONS

Stocking its greenhouse with all local vegetable, fruit and herb starts, one retailer found success in live goods. Learn more at hardwareretailing.com/local-goods.

Colorful Sales Live goods bring color and life to an operation and help add to sales in any season.

January/February 2026 | HARDWARE RETAILING

With some exceptions, most hardware stores can enefit from selling plants, ut you’ll need to consider seasonality, space allocation, staffing needs and suppliers. i e other categories, local considerations must also e ta en into account, as guidance for the ortheast is going to e a it di erent than the outhwest. f you have a nursery or greenhouse operation within yards of your store, selling plants may not e for you. ut if you ust have a grocery store or discount store with a few rac s out front, you can pro a ly win with live goods.

Supply Meets Demand There are two approaches with regard to supply consignment or standard purchase approach. f you’re ust starting out, consignment may e a lower ris approach. f you have a supplier in your area, li e onnie lants, you can set up with rac ing and locally focused, seasonally appropriate assortments that you only pay for when you sell them. ou’re still responsi le to eep the plants healthy, ut you have ero shrin . The limitations with this method is that typically you are restricted from selling any other plants and you’ll li ely e restricted from pic ing your selection. good local rep can lend their e pertise to timing, assortment and pricing. t’s a little harder to di erentiate

HARDWARE RETAILING | January/February 2026

yourself from the other stores that carry onnie, ut running with a consignment model for a couple of seasons is a low-ris way to test your mar et and see what ind of customer reaction you can cultivate. n contrast to consignment, you can also uy plants outright. nli e nails and tools, plants have a very short shelf life, providing you the opportunity to dou le your margin percentage, assuming you can mitigate shrin caused y plants dying efore they sell. Typically, it’s ideal to have multiple suppliers. any growers have particular strengths in a few categories. or instance, one might have great si -pac vegeta les, annuals and hanging owers, ut do very little with perennials. ou’d need at least a couple of vendors to fill the asics, and depending on your local circumstances, you may want to have several suppliers. iven minimum order and fi ed delivery charges, consider a enchmar of a out , in purchases per supplier per location to ma e it worth adding them. efore uying from a grower or distri utor, visit their location, meet their sta , review their goods and as them lots of uestions to help guide you to start out or e pand your assortment. deally, these visits should ta e place the year efore you want to ump in, ut don’t delay a whole year ecause a visit didn’t wor out.

Find Your Source Sourcing live goods takes place in two main ways: consignment where you only pay for what you sell and standard purchasing where you pay for the products up front. Each has its pros and cons, so do your research before engaging in either method.

January/February 2026 | HARDWARE RETAILING

A Sure Sell Hanging flower baskets provide visual interest and are one of the easiest live goods to sell.

Seasons of Sales Plant sales are highly seasonal, so when starting out, begin with the lowest risk seasons and add more as you gain success. For instance, in many climates, pansies and violas are the first source of color, a hugely important concept in plants. If a plant isn’t in bloom when it’s at your store, it’s harder to sell. Most suppliers will email a weekly availability list that will indicate level of color. Try to land products just before they are in full bloom. Pansies are great to get the plant area set up, build excitement for customers and

pave the way for what’s to come, but don’t go too heavy as the second wave of color comes fast and pansies don’t last long. One of the safer bets in plants is hanging owers. ven the contractors coming through your lumber or paint departments will grab a $20-$30 hanging ower pot to ring home. Hanging baskets are relatively easy to display and maintain and a great way to increase your average ticket at the register. Plus, they make the store look great from the street if you can display them strategically. They will need to get soaked daily in most cases, so

HARDWARE RETAILING | January/February 2026

make sure you have a ready source of water available for all plant operations. Mother’s Day is a huge opportunity for hanging owers. The next category to bring in will be six-packs and smaller annuals and vegetables. Typically these sell in multiples, and they require a bit more attention as they can dry out quickly in hotter weather. Quart-size vegetables will sell for peppers and tomatoes, but the price tag needed will limit sales. Perennials can be a challenge at the beginning, but are a great category to build toward. These are particularly challenging to sell when they are not

CONNECTION

Expand Your Know-How Darrell has nearly 15 years of experience in plant sales. If you’d like to know more about how to grow your live goods, contact Darrell at darrell@prescottba.com.

sometimes the local discount store will be selling arborvitaes cheaper than your distributor. One exception might be rose bushes. If you can find a good supplier with a brand like “knock out” roses, you could do well with a couple racks of them to try out. The good thing is they have a longer shelf life and are less likely to die on your watch. The bulk of sales are likely to occur in spring, but fall can be an important season as well. Depending on your area, mums, pumpkins, gourds and corn stalks may sell, but watch out for low price sellers of these goods in your market, as it may be tough to keep a good price perception in the fall categories. Christmas trees and trim are another opportunity if there’s a void in your market, but it’s a very short season and difficult to turn fast enough to eep profita le.

Live Operations

showing color, but a more sophisticated customer base, coupled with a knowledgeable salesperson in the garden area can make perennials a very successful category. erennials may re uire a di erent supplier than your annuals and hanging basket distributor in your area. Look to gradually grow into perennial sales if you’re starting out, and once you establish assortment and quality, you’ll get repeat customers and grow your reach. Nursery goods like bushes, trees and shrubs would be the last subcategory to add to the assortment in most cases as it’s a higher tic et and harder to di erentiate. Research your market before jumping in;

Beyond products, you’ll need to thin a out people. taffing the plant area is critical. Sales are guaranteed to e significantly higher when you have a knowledgeable and personable associate tending to and selling plants. Most of the public is unsure of plants and may not know the di erence etween an annual and a perennial; having someone help them succeed with plants is critical to increasing turns. great way to find a seasonal plant person is to look amongst your customers for someone who is informed, personable and would love short-term e i le hours. If you’re starting with 24-feet of consignment, you probably don’t need to hire an extra person part time. But you need to have one or two sta who “own” the live plants area and understand how critical it is to keep the plants looking good and look for every opportunity to engage with customers about the plants.

In terms of operations, there are some unique things to keep in mind with live goods. First, there will be shrink due to dead plants, requiring constant attention. If you lose track of maintenance for a week or two (or even one really hot holiday weekend), you could end up with 20% shrink on the season. But with proper maintenance, you could keep it to 5%. Inspect your deliveries when they come o the truc , and if your customer won’t buy it, send it back with a note on the packing list. Most growers take pride in their product and want you to be successful, so if you treat them fairly and communicate with them, they will support you. Think about pricing and signage; the simpler the better. Unless you’re doing consignment, I don’t recommend trying to keep inventory on every item. You’ll start the season at zero and zero out any quantities left in the system at the end. Group similar cost items together and price them as one. For instance, put all your 1-gallon perennial plants together but don’t name them “gallon” because many suppliers use pots slightly smaller. Instead, call them “large perennial plants.” Providing a “tally sheet” in the garden center that the customer can bring to the register allows your plant experts to identify the correct SKUs and save the cashiers from trying to figure it out with a line at the register. The final ig win of plant sales is the market basket impact. You’ll find that plants drive non-plant sales like soils, pots and fertilizer, and plants are a great add-on to everything you sell. With a little luck, solid preparation and operational execution, you could grow your plant sales to one of your most important departments.

January/February 2026 | HARDWARE RETAILING

TRENDS

Upkeep Essentials CATEGORY SPOTLIGHT

Discover top home maintenance products DIYers can use for a variety of projects at hardwareretailing.com/home-maintenance-products.

SALES ABLAZE

Complement Your LBM Category With Custom Fireplace Services BY

lumber and building materials category is a great addition to a hardware operation, providing a new source of revenue and opportunities for growth. Many retailers have faced difficulty in this category recently, however, as significant tariffs on lumber and building materials entered the scene. In October 2025, a 10% tariff on foreign softwood lumber and timber and a 25% tariff on kitchen cabinets, vanities and upholstered wooden furniture were

ANNIE

PALM ER

imposed, with increases taking place at the beginning of 2026. At the highest levels since 1933, tariffs are increasing costs for consumers in significant ways, bringing an estimated $2,200 per household in added expenses, according to the Home Improvement Research Institute and Datavations. Raw materials like lumber, steel, aluminum and electrical products have surged in price, affecting project frequency and delaying project timelines.

60 HARDWARE RETAILING | January/February 2026

To attempt to soften the tariff blow, offering custom and niche products within the LBM category can bring in additional revenue that offsets the price fluctuations from lumber tariffs. At Village Hardware & Home Center, with locations in Leipsic and Findlay, Ohio, a cozy sub-category exists among the plywood and timber. The store offers custom fireplace services, walking customers through the entire process of bringing a new fireplace into their home or business.

Getting Warmer From conception to completion, Village Hardware & Home Center offers custom fireplace services to customers.

January/February 2026 | HARDWARE RETAILING

Village Hardware & Home Center serves both DIYers and professionals with a full-service fireplace niche within LBM.

Start to Finish Village Hardware offers fireplaces for both residential and commercial customers, providing a range of products from gas, wood, pellet and electric fireplaces to outdoor fireplaces and firepits, gas logs, patio heaters and garage and shop heaters. Owner Jeff Evers keeps the whole process in-house, with two employees assisting with scheduling, ordering and managing projects and three on the installation team. “Our team does the entire project from design and planning to the finishing touches,” Evers says. “We will install the mechanicals, frame the walls, install facades, build or source barn beams and custom mantels, remove any existing fireplace and if necessary, install TVs—we do whatever the project takes to build a beautiful fireplace for our customer’s home.”

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26JanNHPA v.5.indd 1 HARDWARE RETAILING | January/February 2026

12/2/2025 4:37:10 PM

The process begins when customers bring in their ideas. The Village Hardware staff works with them to hone their vision, offering expertise in selecting the right materials and design. “It usually starts with a quick and simple sketch of an idea,” Evers says. “Our team will make a site visit to look over the project and discuss details. We then complete and send the customer a contract with all those details for approval, order the materials and begin building any custom pieces that need to be constructed in our wood shop.”

Following Through At Village Hardware, demand for fireplaces stays consistent throughout the year, with peak in-season demand spanning from August to February.

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Post-installation services establish an ongoing relationship with Village Hardware & Home Center customers, creating long-term loyalty and repeat business.

64 HARDWARE RETAILING | January/February 2026

THE ART OF ® MERCHANDISING

“In season, demand times extend out eight to 12 weeks, and in the off season we are typically scheduled four to six weeks out,” Evers says. Evers and his team follow customers not only through the design and installation process, but also after installation for fireplace service. Adding post-installation

services establishes an ongoing relationship with the customer, creating long-term loyalty and repeat business. “We offer service for all brands, a yearly service program, chimney inspections and sweeping,” Evers says. “These services bring in great revenue and are in high demand.”

January/February 2026 | HARDWARE RETAILING

RESOURCES

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Stay updated with the latest news and trends by subscribing to our daily newsletters at hardwareretailing.com/subscribe.

INDUSTRY Q&A

Inside IHF 2026 T

he International Hardware Fair (IHF) is setting its direction for 2026 with a steady mix of familiar formats and new ideas. IHF show director Sebastian Hein outlined how the event is growing, what themes are taking hold and how the show is adapting to changes in the industry. Hardware Retailing (HR): What are the key themes or focus areas for this year’s IHF? Sebastian Hein (SH): The International Hardware Fair is organized by product categories. We cover the areas of hand tools, power tools and accessories, industrial supplies, fasteners and fixings and home improvement and DIY supplies. These categories are complemented by a wide portfolio of SEBASTIAN HEIN sourcing products. This provides retailers with a clear trade fair structure for efficient business. HR: How has IHF evolved or expanded compared to previous years? SH: Since 2012, IHF has seen steady growth, highlighting its position as the global central platform for the tool and hardware industry. Like all trade shows, IHF was not left untouched by the COVID-19 pandemic. However, with our restart edition in 2022 and the subsequent 2024 edition, we were able to return to and surpass previous levels. In 2024, a total of 3,270 companies from 57 countries

participated in the fair, offering trade visitors a comprehensive representation of the industry. At IHF, we always align our themes with the needs of the industry to create added value for all participants. Currently, the importance of integrating professional end users is increasing, and we will reflect this with a new format within the trade fair. HR: What are the new exhibit categories or special feature areas? SH: IHF already had a very broad scope, so we have not added any specific product segments for 2026. Instead, we regularly create special formats to focus on relevant topics. A good example of this is the DIY Boulevard. With this new format, we offer an authentic representation of product presentations at the point of sale in DIY and home improvement stores. This concept is well received by manufacturers and retailers and was fully booked early for the upcoming edition. A new format for 2026 is the EISENworkshop. Content creators from the hardware industry will run live demos to show how manufacturers’ products work. It speaks to the growing role of end users and helps connect with them. Proven formats continue to be featured, such as the EISENforum, curated by Michael Atug. This section offers a practical exploration of topics including digitalization, artificial intelligence, market trends and sustainability. Additionally, the EISENaward, powered by ZHH, will highlight innovations and provide important momentum for the industry.

HARDWARE RETAILING | January/February 2026

HR: What new categories or product lines are generating the most interest? SH: Right now, four main innovation areas are drawing attention. Sustainable solutions are moving fast, from -reduced production and recycla le materials to tools that support the energy transition, like equipment for solar installation. Multifunctional products are also on the rise, combining several steps into one device. Tools that speed up work, including better handling and quick-change systems, are seeing strong demand. Digital features are also growing fast, with smart measurement tools and software that track tool use. HR: Are there opportunities for networking and education at IHF? SH: The IHF offers an extensive program for networking, knowledge transfer and targeted business development. In addition to personal meetings at the booths, formats such as the EISENforum, the DIY Boulevard and the EISENparty on the first evening provide attractive opportunities for exchange and new connections. At the same time, we support digital dialogue, particularly through the matchmaking tool in the IHF app, which suggests suitable business contacts based on interest profiles and enables direct appointment scheduling. In this way, we combine personal conversations with intelligent, data-driven networking to ensure a highly efficient and inspiring trade fair experience. In addition to these formats and tools, several industry associations representing manufacturers and retailers are present in dedicated lounges. This creates a forum for high-quality exchanges among industry professionals.

INDUSTRY NEWS

Round Up Retail Penny Shortage Pushes Stores to Adjust Prices and Change Systems

n February 2025, President Donald Trump announced that the U.S. Mint would stop minting pennies, citing their high production cost. According to the U.S. Mint, it cost 3.7 cents to make one penny in 2024. Now, retailers across the country are facing a penny shortage and adapting their pricing and rounding practices for cash transactions in their stores. Canada made a similar move in 2012 when the Royal Canadian Mint ended penny distribution. Although the coin remained legal tender, the government encouraged consumers to redeem or donate their pennies and guided businesses on new rounding practices. Cash totals were rounded to the nearest five cents after taxes and fees, while electronic payments continued to be processed to the exact cent, according to the National Retail Federation (NRF). As U.S. retailers adjust to the end of penny production, many are experiencing shortages while waiting to update point-of-sale systems and pricing structures. An NRF survey in late 2025 found retailers are taking a variety of steps to manage the shortage and continue serving customers paying with cash. Many are updating POS systems, training employees and posting in-store notices to inform shoppers. Some stores are temporarily rounding in the customer’s favor to avoid disputes and compliance issues. At Family Hardware, which has two locations in south Florida, owner Jeremy Peterson learned about the shortage

during one of his twice-weekly change runs to his bank, when he was told the bank would no longer issue pennies. Because Family Hardware operates on its own point-of-sale system, the switch was simple. Peterson sent a reference photo from McDonald’s to his developer, who built a feature that automatically adjusts cash totals to the nearest nickel. The update went live the next day. “We reacted quickly because we were able to,” he says. “It was not an overly complicated change to implement, and we knew if we weren’t going to get pennies, we didn’t have a choice.”

The store kept prices the same, most ending in 99 cents, and posted a short notice explaining the change. Peterson says customers haven’t complained. After the switch, Peterson reviewed 405 cash transactions totaling $5,300 and found the rounding difference was just $1.80. “You’re going to win some and lose some,” he says. “It’s negligible. It’s not going to change the world, but it’s one less coin to manage.” Peterson says some retailers are concerned about how rounding affects sales tax but so far he has not seen an adverse impacts.

January/February 2026 | HARDWARE RETAILING

“We reacted quickly because we were able to. It wasn’t an overly complicated change to implement, and we knew if we weren’t going to get pennies, we didn’t have a choice.” —Jeremy Peterson, Family Hardware

“Worst case, I’ll just give the whole $1.80 if we ever get audited. It’s such a small amount, it’s not worth complicating,” he says. Because Family Hardware uses a custom POS, Peterson could make the change immediately, something many retailers can’t do. “If the computer doesn’t do the rounding for you and it falls on the cashier, that’s when it gets messy,” he says. “Your drawers would be off by a penny every day.” Cash makes up about 27% of Family Hardware’s sales. Peterson says the switch isn’t about money; it’s about efficiency. “Not using pennies makes everything quicker,” he says. “It’s one less thing to deal with at checkout.”

68 HARDWARE RETAILING | January/February 2026

RECOGNIZE EXCELLENCE Do you know a young retailer who is shaping the future of the independent home improvement industry? Maybe it’s someone you work with—or maybe it’s you! Passion and dedication to advancing the home improvement industry

Nominate a Retailer That Showcases: Outstanding leadership in their business or community

Innovative contributions to the independent retail channel

Submit your nomination by March 29, 2025. Learn more at YourNHPA.org/yroty.

Learn More Scan the QR Code to watch the 2025 Young Retailer of the Year Award Ceremony at the IHI Conference.

NETWORK

Make a Plan CALENDAR

Visit YourNHPA.org/cal to find more industry events online.

FEB Orgill Spring Online Buying Event

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

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February 2-16 | VIRTUAL

Orgill Spring Dealer Market February 5-7 | ORLANDO, FL

NAHB International Builders’ Show

Do it Best and True Value .................................................. 3 doitbest.com

February 17-19 | ORLANDO, FL

Epicor ..................................................................................................... 5 epicor.com

February 17-19 | ORLANDO, FL

Franklin International ............................................................ 7 franklininternational.com

Kitchen & Bath Industry Show Ace Hardware Spring Convention February 24-26 | LOUISVILLE, KY

Hardlines Distribution Alliance .......................... 36-37 hdaworks.com

MAR

Hot Products Buying Guide.............................................. 2 YourNHPA.org/hpbg

EISENWARENMESSE International Hardware Fair

House Hasson ......................................................................11, 49 househasson.com Howard Products ..............................................................................70 howardproducts.com International Hardware Fair ...................................................13 eisenwarenmesse.com Knox Fertilizer Company..................................................64 knoxfert.com MAX USA Corp. ..........................................................................48 maxusacorp.com Mayhew Tools .............................................................................. 16 mayhew.com Midwest Fastener Corp. ..............................................IFC-1 fastenerconnection.com NHPA Young Retailer of the Year Awards..........................................................................69 YourNHPA.org/yroty NHS Concept to Commerce..................................................... 9 nhs26.com/nhpa-rsvp Orgill Inc. ............................................................................ 72, IBC orgill.com Paladin Data Corp. .................................................................. 17 paladinpointofsale.com Trion Industries ................................................................................... 65 triononline.com Uline ................................................................................................................. 63 uline.com Wallace Hardware Company ....................................... 62 wallacedistribution.com Wooster Brush Company .......................................... 18-19 woosterbrush.com

70 HARDWARE RETAILING | January/February 2026

March 3-6 | COLOGNE, GERMANY

Do it Best and True Value Spring Market March 6-8 | DENVER, CO

OPERATIONS

A Retail Crystal Ball LAST WORD

See the predicted consumer experience trends expected to shape the retail landscape in 2026 at hardwareretailing.com/cx-trends-2026.

Future in Focus Retailers Share Anticipated Challenges and Emerging Opportunities Heading Into 2026

new year brings with it both fresh opportunities and ideas, as well as anticipated and unexpected challenges and roadblocks. Hardware Retailing consulted two experienced retailers about the opportunities they are most looking forward to and the specific challenges they expect to face going into the year ahead. From returning to a culture of discipline to committing to excellence in their operation, see what these retail leaders are hoping for in 2026.

Alex Porter, Chief Operating Officer, Porters Building Centers Ace Hardware The biggest challenge that is also an opportunity for Porters Ace Hardware and hardware retailers everywhere is getting back to a culture of discipline.

The post-COVID wave is long over and the financial cushions in operations have gone with it. Those who fail to be disciplined will suffer and PORTER those who can execute with discipline will be ready to capitalize on anything that comes their way.

Corby Russell, Sales Manager, PaulB Hardware Our first core initiative is the continued expansion of our PaulB Pro division. PaulB Pro operates within our retail businesses by having an outside sales person represent each of our locations to the contractor at the job site or business headquarters. This focus on strong relationship building will continue to be a primary driver of increased product

placement and customer satisfaction. It is amazing to watch this initiative grow by leaps and bounds. We will also focus on committing to excellence RUSSELL in our overall customer experience, leveraging our current e-commerce platform and actively building upon it and prioritizing the growth of internal product experts and leaders while also actively recruiting top external talent. As PaulB Hardware continues to expand, we require high-quality employees who fully embody our mission and vision statements. Since everything we achieve revolves around our people, developing them into stronger leaders is paramount for PaulB Hardware’s continued future success.

January/February 2026 | HARDWARE RETAILING

Innovation Starts Here FEB. 5-7, 2026 | ORLANDO, FL

Don’t Miss the 2026 Orgill Dealer Market

Join us this February in Orlando, FL to experience nearly 1 million square feet of innovative retail solutions, exclusive products, promotions, and industry-leading workshops. Connect with top vendors, retailers, and retail experts, and see firsthand how Orgill can drive your business forward. Whether you're a valued Orgill customer or exploring new opportunities, our commitment to your success has never been stronger.

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Hardware Retailing January/February 2026