Serving Hardware, Home Center & Building Material Retailers
Standing Together NRHA Honors 8 Young Retailers Leading the Industry Forward 48
Help Your Customers Get Organized in the Garage 66
VOLUME 215 • ISSUE 1 • JULY 2018 • HARDWARERETAILING.COM
Journey Through History With the Oldest Stores in America 72
WEBSITE
JOIN MAILING LIST
FACEB
‘Strong And Independent’ Orgill offers the prices, products and everything else our customers need!
“We’re developing our name around being strong and independent, and Orgill gets that.” Scott Ward l Fix & Feed Hardware, Texas l An Orgill customer since 2015
Consistent Support
Always In Stock, Always Competitive
“We enjoy our partnership with Orgill. Our sales rep takes
“Orgill continues to be a good partner, and that’s what
their support has always remained consistent.”
competitive on pricing.”
care of us. No matter what we’ve needed from Orgill,
we’re looking for—a partner that has product in stock and is
Orgill’s Got Us Covered
A Partner for Growth
“As a business co-owner, there are a lot of little things I take
“It was an easy decision to switch to Orgill, because Orgill is
other items, such as merchandising and pricing analysis.”
and helping us continue to grow.”
care of daily, so I feel good knowing Orgill can help us handle
so easy to work with. They support us while giving us space
For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017
Fix & Feed_SinglePage.indd 1
6/4/18 10:30 AM
Standing Together
Bring your ideas to the table. NRHA creates opportunities for conversations between independent home improvement retailers of all affiliations and sizes, so you can share your ideas and learn new ones from a variety of industry professionals.
Get involved.
NRHA Honors 8 Young Retailers Leading the Industry Forward 48
Take the first step. NRHA offers topic-focused roundtables, educational conferences, events and retail management programs. With dozens of options and ways to engage, you can explore what’s most important to you. Regardless of how involved you are, your voice matters.
We’re stronger together.
VOLUME 215 • ISSUE 1 • JULY 2018 • HARDWARERETAILING.COM
“We are all facing the same issues, and working together is going to make us, and our industry, stronger.” Scott Jerousek | Farm and Home Hardware | Wellington, Ohio JOIN US TODAY AT NRHA.ORG/MEMBERSHIP
NRHA-Membership-housead.indd 85
2/15/18 2:34 PM
Cover_0718.indd 1
BOOK
ADVERTISE
CONTACT US
Serving Hardware, Home Center & Building Material Retailers
QUAD
SELF
CLEAR
CENTERING
COATING
2X
DURABILITY
RIVET
The Crescent/Lufkin Self-Centering tape makes centering jobs easy.
DUAL
CLEAR
RIVET
COATING
The Crescent/Lufkin General Use tape is perfect for every situation.
Cool new tapes. Trusted brand. Both of these new tapes from Crescent/Lufkin® give your customers cool new features and the confidence of that comes with buying a trusted brand. Plus, our new self-centering and general use tapes offer premium design features like metal core posts for increased durability and drop strength and matte nylon-coated blades for improved readability and longer blade life. Crescent/Lufkin gives you more.
See the entire line of Crescent brand products now at www.crescenttoolco.com
© 2018 Apex Tool Group, LLC ATG-4056
You have until Jan. 1 to renew your health insurance. Finding affordable group health insurance can be challenging. Are you getting the best rate possible through your current provider? Now is the time to consider alternative options for your business.
A deadline is coming!
AD #4
Your association can help. NRHA has a variety of insurance programs available. Whether you’re looking for health, dental, eye or life insurance plans, we’ve got you covered. Get a quote now. Contact us today at cbigi@msn.com or 888-201-7408.
Help Your Customers Get Organized in the Garage 66 Journey Through History With the Oldest Stores in America 72
“The NRHA Health Insurance Program is designed with retailers in mind. It can offer lower rates due to the numbers of business owners who have bought into the program and offer the insurance to their employees.” Bob Chiesa | President & CEO | Custom Benefits Insurance Group Inc. FOR MORE INFORMATION, GO TO CBIGI.COM/NRHA-PROGRAM
6/25/18 10:16 AM
Health Insurance_HouseAd.indd 67
10/12/17 8:53 AM
JULY SPONSOR Foundations of Leadership This online course helps new and upcoming managers become leaders.
Team-Building Tactics Managers discover how to best connect with employees and solve larger issues like staff turnover and productivity.
Management Strategies Participants are taught to be innovative and creative in the workplace to create a strategic advantage.
Self-Evaluation Skills Students learn their strengths and weaknesses and how to communicate with different personality types.
“After this course, I’m confident I can leverage my strategic mindset and employee relations skills to be a successful new manager.” Josh Johnson | Assistant Manager Trainee | Ace Thrift Supply
FOR MORE INFORMATION, GO TO NRHA.ORG/FOL
Serving Hardware, Home Center & Building Material Retailers
Standing Together NRHA Honors 8 Young Retailers Leading the Industry Forward 48
Help Your Customers Get Organized in the Garage 66
VOLUME 215 • ISSUE 1 • JULY 2018 • HARDWARERETAILING.COM
Journey Through History With the Oldest Stores in America 72
THE BRAND YOUR CUSTOMERS DEMAND
LEARN MORE AT: IRONCLAD.com
QUAD
SELF
CLEAR
CENTERING
COATING
2X
DURABILITY
RIVET
The Crescent/Lufkin Self-Centering tape makes centering jobs easy.
DUAL
CLEAR
RIVET
COATING
The Crescent/Lufkin General Use tape is perfect for every situation.
Cool new tapes. Trusted brand. Both of these new tapes from Crescent/Lufkin® give your customers cool new features and the confidence of that comes with buying a trusted brand. Plus, our new self-centering and general use tapes offer premium design features like metal core posts for increased durability and drop strength and matte nylon-coated blades for improved readability and longer blade life. Crescent/Lufkin gives you more. © 2018 Apex Tool Group, LLC ATG-4056
See the entire line of Crescent brand products now at www.crescenttoolco.com
Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek
COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger
136 N. Delaware St. #200 Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: nrha.org SOCIAL MEDIA LINKS
@NorthAmericanRetailHardwareAssociation @nrha_official North American Retail Hardware Association @nrha_official HEADQUARTERS STAFF
FEATURES EDITOR Melanie Moul PROFILES EDITOR Renee Changnon ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber MARKETING AND RESEARCH COORDINATOR Hilary Welter SENIOR DESIGNER Lynnea Chom
GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan
PRODUCTION SERVICES PRODUCTION MANAGER Nancy A. Vondersaar
VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan
SALES AND PRODUCTION ASSISTANT Freda Creech
MEMBER SERVICES
CIRCULATION
TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org
CIRCULATION DIRECTOR Richard Jarrett
EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org
The North American Retail Hardware Association (NRHA) regularly posts photos and videos on Instagram and uses it as a tool to stay in touch with retailers and other professionals in the industry. If you’re on Instagram, these are the three reasons you should be following @nrha_official.
1 Instagram Stories Follow association and industry events in real time by watching NRHA’s stories, which take you behind the scenes and highlight the most exciting aspects of what your association is up to.
MULTIMEDIA DESIGNER Graeme Haase
PRESIDENT AND CEO Bob Cutter
MEMBER GROWTH AND DEVELOPMENT MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org
3 Reasons to Follow NRHA on Instagram
CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES PHONE 314-432-7511 FAX 314-432-7665
2 Event Coverage While stories disappear after 24 hours, you can go to NRHA’s Instagram profile to see photos and videos from industry events after the fact. This is helpful if you’re unable to follow along in real time.
3 NRHA Updates When you follow NRHA on Instagram, you’ll know when event registrations open, new educational resources are released and when issues of Hardware Retailing are available online.
SALES/NRHA VENDOR PARTNER RETAIL LEADERSHIP INSTITUTE EXECUTIVE DIRECTOR Scott Wright, 317-275-9417, swright@nrha.org DIRECTOR OF RECRUITMENT Tom Marcum, 317-275-9430, tmarcum@nrha.org
NRHA CANADA NRHA CANADA Michael McLarney, 528 Queen St. E., Toronto, Ontario, Canada M5A 1V2; +1 416-489-3396, mike@hardlines.ca
STATE AND REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 5000 Woodward Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, OR 97305 (UPS, FedEx); P.O. Box 17819, Salem, OR 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; AK, ID, OR, WA SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; AR, KS, LA, MO, NE, NM, TX
DIRECTOR OF SALES Lowell Huffman MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 317-275-9403, chris@millermediainc.net WEST REGION MANAGER Jon Dawson, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, jdawson@nrha.org NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9414, Fax: 317-275-9403, jharper@nrha.org GREAT LAKES REGION MANAGER Lowell Huffman, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9443, Fax: 317-275-9403, lhuffman@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net
NRHA MISSION
The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD T.J. Comstock, Northwest Hardware LLC, Billings, Montana EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina David Dishke, Grand River Home Hardware, Caledonia, Ontario
Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00. Periodical postage paid at Indianapolis, Indiana, and additional mailing offices. POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2018 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.
2
HARDWARE RETAILING | July 2018
Steve Fusek, Fusek’s True Value, Indianapolis SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas
JOIN US
AUG.15–18, 2018
REGISTER @ myace.com 630-990-6900 TXT
Contents JULY 2018 | VOLUME 215 | ISSUE 1
84 INDUSTRY EVENT
Bettering the Business Matt Woods, president and CEO of Woods Hardware, won the $100,000 2018 Reimagine Retail award. Learn how he’ll use the money to integrate an immersive virtual reality shopping experience at his business.
88 LEGISTLATIVE REPORT
48
INDUSTRY AWARDS
Introducing Tomorrow
The Young Retailer of the Year program honors the outstanding young hardware retailing professionals who are leading the industry forward. From growing their businesses to enriching their communities, these young retailers are making their marks on the industry. Meet this year’s class and learn more about the traditions they’re keeping and the trends they’re setting.
Regulations and Small Business In this edition, learn how small businesses are affected by recent changes to federal banking regulations. The report also reviews the current state of international trade and tariffs.
Departments
66 CATEGORY SPOTLIGHT
A Greater Garage Custom garage renovations are helping homeowners see new possibilities for one of the most practical rooms in the home. Learn from a garage renovation expert to discover how you can help your customers give new life to their garages through storage solutions, upscale renovation projects and more.
72 HISTORY
Centuries in the Making Hardware Retailing speaks with owners of some of the oldest lumberyards and hardware stores in the country to get their perspectives on the generational, social and economic challenges of operating centuries-old businesses. 4
HARDWARE RETAILING | July 2018
RECEIPT
80 OPERATIONS
Show Me the Receipts Crafting a return policy that’s fair for customers, easy for employees to navigate and prevents fraud is challenging, but necessary. Learn what Zach Coblentz from Hartville Hardware recommends to ensure your business is handling returns efficiently.
06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 12 . . . . . . . . . . . . . . . . NRHA News 20 . . . . . . . . . . . . . . . . . . . . . Trends 22 . . . . . .Retailers’ Choice Products 40 . . . . . . . . . . . . . . . . . . Checkouts 90 . . . . . . . . .Newsmakers/Calendar 94 . . . . . . . . . . . . . . . . . . Last Word
On the Cover The 2018 Retailer of the Year honorees (front row) Diana Newton, Byron Clouse, Sean Angelo, Ronna Kilts, (back) Taylor Baker, Megan Zarbano, Nate Ludwig and Mike Wilson celebrate the future of the industry . NRHA photo by Lynnea Chom
POWERFULLY SIMPLE
POINT OF SALE SOLUTION The power of
EASY in today’s complicated world
Paladin offers a dynamic, yet easy-to-use point of sale solution, equipped with cutting-edge tools and services to keep your retail business growing and successful in today's ever-changing market. • Simple, easy-to-use interface • Intelligent and powerful inventory management
541.803.6060 paladinpointofsale.com/?NRHA
On the Web
RETAILER INSIGHT
Retailer Philosophies on Returns Students of the spring 2018 session of NRHA’s Retail Management Certification Program share their approaches to return policies and how to make the process easy for customers while also protecting their businesses. Read their thoughts at TheRedT.com/returns-insights.
VIDEO
360 Degrees of Reimagine Retail Matt Woods, owner of Woods Hardware in Cincinnati, has $100K to put toward his business after winning the National Hardware Show’s® Reimagine Retail program. Read Woods’ story on Page 84, then watch the 360-degree video of the ceremony at TheRedT.com/rr-video to experience the program from every angle.
PROFILE
Retailer’s Dog Is a Treat for Customers and Employees When customers walk into Oak Hill Hardware in Scarborough, Maine, they are often welcomed with big smiles and a wagging tail. Visit TheRedT.com/rivet to read how the family dog, Rivet, is one of the many reasons customers and their children are excited to shop at the store. 6
HARDWARE RETAILING | July 2018
PROFILES
The Industry’s Best and Brightest Starting on Page 48, you’ll meet this year’s NRHA Young Retailer of the Year honorees. To read more about these outstanding individuals and their amazing accomplishments and to view their honoree videos, visit TheRedT.com/yroty-2018.
SOCIAL MEDIA LINKS
@HardwareRetailing Photo courtesy of Justine Johnson
@hardwareretail
SCREENING UPSELL.
SEE THE VIEW, NOT THE SCREEN More optical clarity for a sharp, more brilliant outward view. Enhanced insect protection. Upsell opportunity compared to standard screening. Now available in a variety of kits.
Contact us for your screening needs and dealer support. 800.841.9473 | phifer.com
Independent Thinking
An Inspirational, Educational Event
I
“Each story and
each operation is unique, and that’s the beauty of independent retailers. They find success through their differences.
”
n my role with the North American Retail Hardware Association (NRHA), I’m on the road quite a bit. Actually, it’s not unusual for me to spend 100+ days a year traveling visiting retailers, distributors and manufacturers or attending conferences. During these travels, it never ceases to amaze me the misconceptions we still hear regarding the independent home improvement channel. Sometimes it’s the guy sitting next to me on an airplane or someone you run into at an event, but many times the misconceptions are expressed by individuals within the channel. “The big boxes own the market.” “Independent stores are dying.” “Young people just aren’t interested in running hardware stores.” In all of these instances, I see it as a big part of my job to relay the truth about independents to whomever I am engaging with. I make it a point to let them know that independent retailers still control sales of roughly half of all merchandise flowing through the home improvement channel. I tell them that despite the emergence of big boxes or Amazon, independent home improvement retailers are alive and well and are driving innovation at retail throughout the industry. And when it comes to the discussion about whether young people are interested in a career in hardware retailing, it’s always my pleasure to point to the long list of bright, energetic and confident leaders NRHA has recognized through our Young Retailer of the Year award program. In fact, I don’t think any singular event could do more to change anyone’s mind about the present and future health of independent retailers than hearing the stories of our Young Retailer of the Year honorees. In May, we celebrated the 22nd year of our Young Retailer of the Year awards in Las Vegas on the eve of the National Hardware Show®. There’s a reason we hold this event at the National Hardware Show the night before the show floor opens. First, we think it is a great way to start the show off on a positive note. Second, we think the National Hardware Show, the place where all the industry channel partners gather, is the perfect opportunity to showcase the successes young people are finding within the hardware landscape. This year, we honored eight young honorees from across North America. You can read their stories starting on Page 48. Each story and each operation is unique, and that’s the beauty of independent retailers. They find success through their differences. Each one brings something unique to their marketplace that resonates with their customers. As unique as these young retailers are, there are also similarities. While they are all young, they are also very determined, bright and full of energy. It struck me during the award presentation how each made sure to recognize their families, employees and communities for their successes. To say that the event is inspiring is an understatement. It’s also a chance to see why independent home improvement retailers have remained such a strong force in the market, regardless of competition. And it affirms that there is no sign of that changing any time soon.
Bob Cutter, President and CEO
bcutter@nrha.org
8
HARDWARE RETAILING | July 2018
The Better Bird Feeder! Y
Saving American jobs one feeder at a time.
Coming Soon!
NATURE’S GARDEN™ Hummingbird nectar
Naturally sweet, just the way nature intended!
tube feeders have the amazing
Quick-Clean Base ®
®
™
DEN NATURE’SbirdGAR nectar
Humming naturally in based sugars found ™ With the same plant is a high energy Nature’s Garden wildflower nectar, or artificial colors. with no preservatives nutrient-rich nectar intended!
the Naturally sweet, just
way nature
Net Wt. 48 fl
oz.
www.ColesWildBird.
, P.O. BOX 440173
com
KENNE SAW,
GA 30160
1-877-426-8882 • coleswildbird.com
Taking Care of Business
Weighing Your Return Options
O
“Independent
retailers who hang their hats on providing intimate, personalized, customer service have to consider all aspects of customer service.
”
ne of the many soapboxes I like to climb atop when it comes to the retailing industry relates to the concept of customer service and how today’s retailers perceive their ability to deliver it. I’ve mentioned in this column before one of my favorite exercises when I get the opportunity to talk to retailers in a group setting is to ask how they differentiate their businesses from the competition. Of course, customer service is one of the most frequent answers. When I hear that answer, I scratch the surface a bit deeper to ask, “What does customer service mean to you?” My point is to try to illustrate that today’s customer defines customer service in a variety of different ways that go well beyond product knowledge or knowing them by name. In fact, the concept of customer service has changed even more since game-changing retailers like Amazon have emerged on the scene. Case in point... A while back, my wife and I decided to try to eat healthier (honestly, we are still working on this). In order to do this, we decided we needed a fancy electronic food scale. Since it was the dead of winter and a Sunday morning, we chose to search for the product on Amazon. (I hear the impending gasps as I write this.) Well, two days later, thanks to Amazon Prime, we received the scale and, excited to begin weighing our broccoli and beetroots, we put in the batteries. To our disappointment, nothing happened. The scale was obviously defective. OK. Crap. Now we couldn’t be healthy. And, we also had to log back on to Amazon to print out the return label. To my surprise, when I went back into our account to try to print said label, I got a message saying the item was nonreturnable. I was now poised for a fight. I contacted (via chat) Amazon and was told “not to worry about returning it.” They would simply credit my account and I could dispose of the nonworking item. Wow! To me, on that snowy day, that was customer service. In fact, retailers often overlook the importance a return policy can play in the big picture of customer service. That’s why, in this issue of Hardware Retailing, we take a look at how one very large independent retailer has sought to update their return policy to both protect the store from loss but to also make the process as easy as possible on customers. I don’t call attention to this story to illustrate yet another thing that Amazon does well (there are plenty of things they don’t do well), but instead to point out, yet again, how independent retailers who hang their hats on providing intimate, personalized, customer service have to consider all aspects of customer service. I can’t tell you how many times I have visited an independent retailer only to be greeted by a large sign at the service counter saying, “No Receipt, No Return!” What better way to tell customers right up front that you think they are out to rip you off. Please take a look at the returns policy story we have starting on Page 80 to learn how one retailer put some genuine thought into how their return policy impacts customer service. In the meantime, I’ll go weigh some carrots for my afternoon snack.
Dan M. Tratensek, Publisher
dant@nrha.org
10
HARDWARE RETAILING | July 2018
It’s a real
Game Chan er. The solution for your grill category
sweet spot.
Now here’s a great reason to smile. Broil King® is the best choice for profitable grill sales between $300 - $699. That’s over 40% of the market! Broil King® provides you with a competitive advantage offering an extensive line up of quality North American made grills that will appeal to customers who are looking for quality, performance and value. See why hundreds of independent and specialty retailers have increased sales and profit by selecting the right line up of Broil King® grills within these price ranges. broilkingbbq.com/become-a-partner
‘‘
‘‘
atched multiple m at th ills gr e th of ity al qu e Th tly what we felt our price-points was exacRan dy Saunders n Pines, NC ner of Ace Hardware in Souther Ow . ed ed ne s customer
Please contact Tim Brideau tbrideau@omcbbq.com for more details on becoming a successful Broil King® dealer. BaronTM S590 model shown.
NRHA News
Improve These 4 Aspects of Your Business
E
12
mployee training is essential to any business, and it doesn’t always need to be time consuming. As a way to kick-start or supplement your employee training efforts, the North American Retail Hardware Association (NRHA) offers quick downloadable video and PDF resources on various topics
related to selling skills, operations, merchandising and product knowledge in its Trainers Toolbox series. Below are some of the most popular lessons you can use this summer to give your staff a knowledge boost. Access these and more than 50 other lessons at nrha.org/trainers-toolbox.
Merchandising
Selling Skills
These lessons cover many ways to improve the look of your store.
Lessons in this category teach employees what they can do to increase transaction sizes.
• Maintain Your Merchandising. Use this infographic to review some simple ways employees can maintain effective merchandising. • Effective Cross-Merchandising. This worksheet can help employees understand cross-merchandising and why it’s so important.
• Tips for Add-On Selling. This infographic gives your employees some pointers for encouraging add-on sales. • Closing the Sale. With this video, employees learn how to overcome objections customers might have about purchasing an item.
Product Knowledge
Operations
These lessons teach employees about different products and how to share knowledge with customers.
This category covers a variety of topics like loss prevention, human resources and business financials.
• Tips for Selling a 4-Step Lawn Care Program. This video reviews product knowledge your employees need to know when selling a four-step lawn care program. • Tips for Selling an Exterior Paint Project. This video reviews information that can help employees assist customers preparing for an exterior painting project.
• Making Your Store Safer, a Loss Prevention Checklist. This lesson allows employees to review the ways they can help make the store less attractive to shoplifters. • Team Communication Exercise. Use this simple activity to help your employees improve their communication skills.
HARDWARE RETAILING | July 2018
DRIVEN TO BE THE BEST.
SELLING COLOR WITH CONFIDENCE. At Do it Best Corp., we are Driven to Be the Best in every aspect of our business. Redefining the paint shopping experience for Do it Best customers is just one way we’re helping co-op members lock in customer satisfaction while boosting their bottom line. The Color Bar lets you become the go-to destination for expert color advice and quality paint products. The striking, modular system features a modern design workstation, eye-catching room visualizers, one-stop project stations and much more. Our team of store design experts works to deliver profit-maximizing interior and exterior solutions that are proven to fuel your growth. When you succeed, we succeed. IT’S WHAT DRIVES US TO BE THE BEST. “Get ready to connect with your customers in a whole new way. The Color Bar gives you a re-envisioned department that empowers your staff and builds your paint customers’ confidence, while turning the heads of everyone else walking into your store.” — Cherié Jacobs Design Production & Implementation Supervisor
Call us today at 888-DO IT BEST (364-8237). independentsdoitbest.com
NRHA News
NRHA Launches Updated Website
T
his month, NRHA is officially launching an updated version of its website packed with brand new features to better serve members. Visitors to nrha.org will be able to find specific training programs, association news and membership options much more easily, says NRHA web developer Kevin Trehan. “The most important aspect of updating the website is improved usability for retailers,” he says. The updated website will showcase four core association offerings: training, business services, research studies and upcoming events. An updated membership section will explain the many benefits of an NRHA Training Membership for you, your employees and your operation. The website’s revamp will allow visitors to quickly access more than 50 free Trainer’s Toolbox lessons and promote numerous tools and guides. In addition, accessing online training will be much easier, allowing retailers to quickly find the lessons they need to ensure their operations run smoothly.
14
One of the most exciting features of the updated NRHA website will be the new retailer forum. It will give members the chance to connect with one another instantly and discuss important industry events candidly. Trehan says the forum will be free for all retailers to use. A training membership will not be required to access its content. The forum is still in development and will launch in the coming months. According to Trehan, updating the NRHA website was a critical part of keeping the association current with industrywide trends and technological advances, but fulfilling the members’ needs was always the central goal. “The single best feature is easier discoverability and navigation of the site,” Trehan says. “It’s cleaner and organized in a more structured way.” Although the website will be getting a facelift, NRHA’s central goal of advocating, educating and associating remains unchanged. Retailers can contact nrha@nrha.org with any questions about where to locate information on the new website.
NRHA’s Mission
Other Resources
Featured Content
Navigation Bar
From NRHA’s goals to information about products and services, the new site has the information you need.
The new site offers quick access to Hardware Retailing, Member Services, the NRHA Store and more.
Rotating sliders keep you informed about important association deadlines and updates you don’t want to miss.
Find everything from training tools to research studies to event information in the user-friendly toolbar.
HARDWARE RETAILING | July 2018
ATTENDING THE HIRI INSIGHTS CONFERENCE WILL MAKE A SIGNIFICANT DIFFERENCE. Learn from industry experts and make better business decisions. Join other industry leaders as experts share fi nely honed home improvement forecasts, trends and exclusive insights. Diving deep into what moves consumer and trade audiences will help sharpen your focus and improve your planning.
September 18–19 Oak Brook, Illinois Register at hiri.org before August 6, 2018, to receive a $100 discount.
HIRI is a nonprofit home improvement research organization guided by members for members.
SPEAKERS
hiri.org
NRHA News
Imperial Home Hardware Wins NRHA Contest
A
t the 2018 NRHA All-Industry Conference in Las Vegas, attendees snapped selfies and shared their photos at the Sharingbox photo booth in the NRHA Village. Everyone who took a photo was entered into a contest to appear in the pages of Hardware Retailing, and NRHA has selected the winner. Joe Cimicata, owner of Imperial Hardware Supply (left), and Rick Kenny from KS Solutions Sales and Services Inc. are pictured here. “This was my first time attending the NRHA All-Industry Conference and the National Hardware Show®, and wow, what a great show,” Cimicata says. “I met some great vendors on the show floor, and I already had two new products in my store ready to sell in less than a week after I returned home.” NRHA thanks attendees and everyone who stopped to snap a photo at the conference. For more photos from this year’s event, including all the shots from the photo booth, see the album at TheRedT.com/conference-photos.
WHAT’S HOT IN BARBECUE RIGHT NOW
INTRODUCING BBQ PELLETS
FULL FLAVORED
The next generation in grilling is here, and it’s fueled by wood pellets. Smokers and pellet grills are perfect for barbecue enthusiasts who want to up their game. People love to follow the competitive BBQ scene, and today’s grilling market has made it easy to capture the fun and excitement of wood-fueled cooking.
Great taste is what inspires amateurs and competitors alike. Research shows that, now more than ever, grillers are excited about flavor exploration and experimentation. Griller’s Gold delivers by offering five all-natural varieties, each with a distinctively delicious flavor profile.
MARKETING SUPPORT THAT SIZZLES At Griller’s Gold, we help retailers drive sales through consumer marketing including brochures and an active social media presence. The Griller’s Gold blog is full of great tips on wood pellet grilling, recipes and techniques, the tasty facts about wood as a grilling fuel, what’s new in outdoor living, and reports about BBQ competitions across America. We’re proud that our blog, packaging and website have been recently recognized with Awards of Excellence from the National Barbecue & Grilling Association.
BECOME A GRILLER’S GOLD RETAILER: CONTACT INFO@GRILLERSGOLD.COM
NRHA Program Facilitates Mentorship
C
areer mentors can play a large role for an individual at any step of their professional journey, says Paula Coate, manager of Hagersville Home Hardware in Hagersville, Ontario. Her mentor and boss, David Dishke, who also owns Grand River Home Hardware in Caledonia, Ontario, has helped her grow in the two-store business for 18 years and counting. Now, Coate has become a mentor to Hagersville Home Hardware assistant manager, Darcie Bryczka. Coate and Bryczka have worked together at the company for four years, but their relationship as a mentor and mentee was strengthened by NRHA’s Foundations of Leadership Program. Coate and Dishke thought the program could enhance Bryczka’s skills as she prepared for her role as assistant manager of the company’s new, second location, where she would lead a new staff that was inherited with the store. Bryczka developed a foundational understanding of communications techniques, leadership skills and team-building best practices during the 16-week online course. Coate mentored Bryczka to help her apply what she learned directly to the business. The women identified three positive results from their mentorship relationship. Fore more information at the Foundations of Leadership Program, visit nrha.org/fol.
1 2 3
Honest Feedback “As a mentor to Darcie during the Foundations of Leadership Program, I got insights and truthful feedback about how I manage and lead people on my team. It was nice to hear input on some of my shortcomings as well as some of the things I do well,” Coate says.
Encouragement and Support “In my day-to-day job, it’s nice having someone there to help me learn from daily situations and challenges that arise. It’s important to know you’re not alone and that you have support when you’re struggling at work,” Bryczka says.
Strengthening Relationships “We support each other to make sure we’re performing as strong leaders. The NRHA program helped affirm our relationship and what we knew about each other and helped us grow so we could better lead our team,” Coate says.
BBQ WITH ATTITUDE Help your customers grill like champions with five 100% natural wood flavors. Order Griller’s Gold BBQ Pellets to stock your shelves today!
competition fruitwood MAPLE , CH E R RY & APPLE
PR E M I U M B BQ PE LLETS FOR USE IN ALL PELLET GRILLS, SMOKERS, AND BARBEQUES
A L L N ATU R A L I N G R E D I E NT S A D D F L AVO R TO YOU R G R I L L E D FOO D COO K L I K E A PRO F E S S I O N A L
MAPL E , H I C KO RY & C H E R RY
PR E M I U M B BQ PE LLETS FOR USE IN ALL PELLET GRILLS, SMOKERS, AND BARBEQUES
A L L N ATU R A L I N G R E D I E NT S A D D F L AVO R TO YO U R G R I L L E D FOO D COO K L I K E A PRO F E S S I O N A L
PR E M I U M B BQ PE LLETS
PR E M I U M B BQ PE LLETS
FOR USE IN ALL PELLET GRILLS, SMOKERS, AND BARBEQUES
FOR USE IN ALL PELLET GRILLS, SMOKERS, AND BARBEQUES
A L L N ATU R A L I N G R E D I E NT S A D D F L AVO R TO YO U R G R I L L E D FOO D COO K L I K E A P RO F E S S I O N A L
OAK , H I C KO RY & M E SQU ITE
PR E M I U M B BQ PE LLETS FOR USE IN ALL PELLET GRILLS, SMOKERS, AND BARBEQUES
A L L N ATU R A L I N G R E D I E NT S A D D F L AVO R TO YOU R G R I L L E D FOO D COO K L I K E A P RO F E S S I O N A L
A L L N ATU R A L I N G R E D I E NT S A D D F L AVO R TO YOU R G R I L L E D FOO D COO K L I K E A P RO F E S S I O N A L
Use Promo Code JULY18 to get 10% off your first order.
THE
STORY
Keysmart was born in 2013 as a personal solution to an uncomfortable, bulky key ring. Originally posted on Kickstarter, the KeySmart became one of the most successful campaigns of all time, raising over $330,00! Fast forward to 2018 and over 4 million KeySmarts have been sold in 190 countries around the world! As inventors of the category, we are the premier brand and continue to develop innovative products to make our customers’ lives easier and more organized. At KeySmart we’re committed to Evolving Your Everyday Carry™.
90%
Of People Carry at Least 2.5 Keys
249.5M People Over the Age of 18 in the U.S.
4M
KeySmart Units Sold
Join the KeySmart revolution with this exclusive offer! Get 10% off your first wholesale order at go.curvgroup.com/hardware
Retailers’ Choice Award 2018 National Hardware Show The KeySmart Pro with Tile™ bluetooth tracking technology is the ultimate key organizer. The free Tile™ app will show your KeySmart Pro on a map or ring it to search via sound. Also, if you misplace your phone, double tapping the Tile™ button on the KeySmart Pro will make it ring. The KeySmart Pro holds a charge for two months and recharges with an included micro-USB cable.
Fully Stocked at
Here are some of our major retail partners:
Curv Group, LLC 860 Bonnie Lane Elk Grove Village, IL 60007
For retail sales inquiries contact sales@curvgroup.com or visit www.curvgroup.com
Trends Investing in Home Organization Home organization products compose a growing category, and DIYers are the most frequent buyers of the cabinets, benches and other storage items they need to put their houses in order. Packaged Facts, a consumer research firm, projects that home organization sales will reach $19.5 billion in 2021, reflecting consistent market expansion in the U.S. Packaged Facts also reports that about 80 percent of sales in the category are for DIY organization projects. In keeping with that trend, consumers say they are more likely to do their own work on home organization projects than hire professional help, according to recent research from Home Innovation Research Labs.
Applied to Retail About 75 percent of consumers install their own closet and garage storage, Home Innovation Research Labs reports. Organization products for closets and garages range from metal hooks and plastic totes to countertops and cabinetry. Many of the most popular items for garages, such as storage for tools and garden equipment, likely complement your store’s product offering. If your business already sells a range of organizational tools and the materials needed for creating full shelving or drawer systems, then consider creating a single display that showcases the capabilities of these types of products. If your operation hasn’t dabbled in the category yet, then starting with hooks, small shelves and bins may help you gauge if your customers are eager for bigger and more complex organization products. For more on garage storage trends, flip to Page 66.
Most Popular Features of Garage Storage Systems Cabinets with shelves or drawers
45%
Tool storage
40%
Workbenches or countertops
30%
Garden equipment storage
25%
0%
10%
20%
30%
40%
50%
Source: Home Innovation Research Labs Annual Consumer Practices Survey, 2017
The Home Organization Marketplace Sales of DIY organization products account for
80 percent of the market. Source: Home Organization in the U.S.: General Purpose, Closets, Garages, and Storage Sheds, 4th Edition, Packaged Facts
20
HARDWARE RETAILING | July 2018
QUICKSCREWS THE #1 SELLER OF WOODWORKING SCREWS IN AMERICA
Quickscrews Retail Program is the perfect fit for Lumber Yards, Hardware stores, and Big Box stores. Our Retail Program is available in multiple quantities with a wide selection of screws for a variety of applications. The labeled clamshells feature our Icon System and Color Coded Application System, created to make it easier than ever for customers to find the screws they need.
CONTACT YOUR SALESMAN TO ORDER
(800) 743-6916
www.quickscrews.com
CABINET INSTALLATION
DRAWER FRONT ADJUSTING
CABINET ASSEMBLY
HARDWARE
EXTERIOR
POCKET HOLE
DRIVE BITS & MORE
Retailers Honor Products at the 2018 National Hardware Show® With Retailers’ Choice Awards
F
or the past 52 years, the North American Retail Hardware Association (NRHA) has held its Retailers’ Choice Awards, which recognize some of the standout products on display at the National Hardware Show®. The ceremony, which brings together manufacturers and retailers to showcase new products hitting the market, is set amid the glitz and glamor of the Las Vegas strip. The program honors manufacturers for their innovation and provides retailers and distributors with new products to check out on the last day of the show. The Retailers’ Choice Awards differ from most award programs in that they rely on the opinions of actual retailers who know what their colleagues need in a product to attract customers.
22
HARDWARE RETAILING | July 2018
Products selected at the show this year include a diverse range of standards and outside-the-box ideas. The judges, all independent home improvement retailers, included: Deborah and Tracy Everson of Everson’s Hardware Hank in Minnesota; Diana Newton of Bay Hardware in California; James Cabirac of Kief Hardware in Louisiana; April Rembert and Jake Smith of Jared’s Ace Hardware in South Carolina; Ronna Kilts of Mattson’s True Value Hardware in Michigan; and David Dishke of Grand River Home Hardware in Ontario. The retailer panel was asked to walk the show as they usually would and select products they felt were unique, interesting and held great promise for sales in their businesses. Continue reading to discover which products were considered the best among retailers in the industry at this year’s show.
TRUTH:
IT’S TIME TO TAKE CONTROL. Our competitors talk about independence, but we walk the talk. You’re the boss of your store. You know your community, so you make the decisions. There’s no forced participation, no penalties. Use the True Value® brand name or use your own. Either way, you get our full commitment in service, training and support. ❯ No stock requirements or program mandates ❯ The strength of an iconic national brand ❯ Complete flexibility
IF YOU’RE READY FOR A TRANSFORMATION, VISIT TRUEVALUECOMPANY.COM/TRUTH OR CALL 1.888.291.7229. ©2018 True Value Company LLC. All rights reserved. TVRG-14274
Retailers’ Choice Awards 2018
Doorstop Replacement The Doorstop Upgrade adds features such as a post and a mating screw to improve on standard doorstops. The installer drills a hole through the receiving door, inserts the doorstop through one side and the mating screw through the other. Unlike other doorstops that bend or come loose, this approach produces a superior assembly which significantly resists failure. Innovious info@doorstopupgrade.com or doorstopupgrade.com
7
Toter two-wheel carts are designed and built for function, with craftsmanlike attention to detail. With ideal handle height, rugged wheels and bestin-class ergonomics, maneuvering is a breeze – even when completely full. Constructed using Toter’s Advanced Rotational Molding™ process – no seams means superior strength. Toter carts are built to keep working long after others fail — more than 2X longer. They’re backed by a 10-year warranty, the best in our industry.
www.Toter.com
24
HARDWARE RETAILING | July 2018
Reversible Snow Shovel The Shark Snow Shovel has a two-in-one design to tear up hardpacked snow with the “Shark Teeth” on one blade while the other works as a standard snow shovel with a smooth blade. The blades easily change with the built-in swivel mechanism. Shark Industries admin@snowsharkshovels.com or snowsharkshovels.com
Tool Carrying Assistant Handzy is a multipurpose tool designed to carry everyday objects more comfortably and efficiently, thereby reducing pain and stress on fingers and hands. It can be used for carrying grocery bags, clothes, paint cans, propane/freon tanks, 5-gallon buckets and more. It is made in the U.S. Coastal Business Solutions 361-500-4302 or gethandzy.com
Mouse in the house? NO ESCAPE® ª
REPELS MICE ✓ Great for stored boats, campers, RV’s cars, farm equipment and more ✓ Natural ingredients ✓ Lasts for weeks Toilet Squeegee The LOOEEGEE Hygienic Toilet Squeegee features a hygienic, nonstick silicone pad that integrates 30 squeegee blades to remove stains with less scrubbing. The flexible silicone is designed to conform to the smooth, curved surface of a toilet bowl and cleans a bowl in its entirety.
Scent Pack
used People & Pet Safe aswhendirected
Contact us: sales@bonide.com (315) 736-8231
Better Living Products 800-487-3300 or looeegee.com
July 2018 | HARDWARE RETAILING
25
Retailers’ Choice Awards 2018 Tape Organizer The Tape Thing is a patented magnetic tool that secures a roll of tape to metal surfaces like tool boxes or truck bodies and allows it to spool off by hand. It works in conjunction with The Tape Thing Caddy, which holds other metal items, velcro items, razor blades and painter rags. Collision Edge 770-328-5666 or thetapething.com
LED Stud Finder The ProSensor T9 has eight precision sensors to find studs in a home’s walls. The T9 has a max detection depth of 1.6 inches and its 4-inch wide LED display shows the stud’s center and edges. It features proximity indicators which illuminate when approaching a hidden object and also provides a convenient pencil caddy. It runs on AAA batteries. Franklin Sensors 208-918-2403 or franklinsensors.com
POWER BEYOND THE PRODUCT
NATIONWIDE
REP SERVICE
98% FILL RATE
MERCHANDISING
AND POP SUPPORT
PLANOGRAM ASSESSMENT
See what the full power of the most promoted plumbing brand can do for your business.
1-800-345-3358 l deltafaucet.com/independentretailers
26
HARDWARE RETAILING | July 2018
Fire-Starter Logs Bag of Fire logs have InstaFire™ starter material infused inside to burn long and hot. InstaFire is an easy lighting fire starter that burns in virtually any condition. Bundled with a 100 percent natural kiln-dried fire log for a long-burning fire, InstaFire-infused hickory logs are easy to light and offer a hickory aroma. InstaFire 888-482-4868 or instafire.com
Personal Item Holder The Buddy is a plastic beverage holder with two caddies to hold small personal items such as sunglasses, cellphones, wallets or keys. It can be used at the beach, at picnics, while camping, tailgating or at outdoor concerts and sporting events. The Buddy can be put into sand, grass, hard dirt and even snow. Beach Buddy USA 504-909-0999 or beachbuddyusa.com
©ShurTech Brands, LLC 2018/76062
Retailers’ Choice Awards 2018
Flipping Grill Attachment The Flippin’ BBQ is an attachment that fits on an existing grill top. The enclosure can flip 50-100 wings at once and can also be used for shrimp, fish, vegetables and many types of meat. The custom-fit grates have five height levels that lock the food in place. With the Flippin’ BBQ you can grill food as thin as bacon and as thick as an ear of corn. This product is made in the U.S. out of food-grade 304 stainless steel. Flippin’ BBQ info@flippinbbq.com or flippinbbq.com
American Made & Profitable For Over 80 Years
With a variety of clearly marked spring assortments, Ajax offers your customers ease of selection for their specific needs. Each assortment comes in their own unique case. Our storage cabinets and kits, provide assortments of Steel Lock, Brass Lock, Music Wire, Stainless Steel, Extension, Compression and more, each making dispensing efficient and economical. Ask for our Product Catalog which provides product descriptions and size specifications.
Toll Free: 855-966-AJAX (2529) www.ajaxwire.com ajaxwire@aol.com 119 Bloomingdale Road, Hicksville, NY 11801
28
HARDWARE RETAILING | July 2018
Drain Clog Remover The Drain Weasel has a patented “micro-hook” tip that snags hair clogs on contact. Its slim shape is designed to slide past most drain stoppers without any drain disassembly. It comes with two disposable or reusable wands to lessen cleanup and lessen the use of chemicals. FlexiSnake 309-274-6223 or drainweasel.com
Water Plunger The Johnny Jolter® PRO Power Plunger forces water, not air, to clear clogs without the need for a plumber. It draws water into a chamber and then forces it back out to clear a toilet blockage. The Johnny Jolter is easy to clean and maintain with no cartridges to replace. K-CO Products 949-276-5252 or kco-innovations.com
INVEST IN YOUR FUTURE
Founded by a painting contractor frustrated with complaints and callbacks caused by coating failure on repaint jobs, we set out to make a primer that solved most paint problems. With 55% solids, 300% elongation and 300 PSI adhesion, we engineered an exterior acrylic bonding primer that locks down and encapsulates all peeling, cracking and damaged substrates, remains ptermanently flexible and breathable, and blocks rust and tannin bleed with two coats.
Ergonomic Paint Roller E-Roller is an ergonomic alternative that uses a proprietary design to take the stress off the wrist so a painter doesn’t experience pain for days after painting. E-Roller is able to apply consistent pressure utilizing the user’s major muscle groups including the upper arm, shoulder and back when painting. E-Roller/Hanniver Innovations ryan@eroller.com or eroller.com
Dura-Prime saves time and money by reducing prep and application time, eliminates complaints and callbacks, and provides the most stable surface for unmatched top-coat durability and longevity.
Made by painters, for painters “Dura-Prime can be used to prime most everything, like wood, aluminum, gutters, steel, and more. In my opinion, it is the best primer on the market for exterior applications.” ~ Bob Halla, Cowls Building Supply
Available only to independent retailers www.maddogprimer.com July 2018 | HARDWARE RETAILING
29
Retailers’ Choice Awards 2018
Grill Cleaner Tool The Q-Swiper Grill Cleaner uses a moist Q-Swiper Grill Cleaning wipe in combination with the Q-Swiper Grill Brush. It safely removes grease and grime for a clean and healthy grill. The Q-Swiper is bristle- and wire-free. Available in a kit (one grill brush and 25 wipes), 40-count refill and also as a grill brush sold separately. Proud Grill Co. 877-317-7875 or proudgrill.com
Kitchen Waste Bin Greenlid is a compostable and disposable kitchen food waste bin made from recycled cardboard. It is leak-proof and smell-proof, and as it breaks down with compostable waste, it produces nutrient-rich soil. The same bin can be used multiple times until it begins to biodegrade, and then it can be tossed in a compost pile or put it in the trash. Greenlid Envirosciences 888-876-6561 or mygreenlid.com
Insect Trap The Flylight Insect Trap provides up to 600 square feet of protection against flies, mosquitoes and other flying insects. It utilizes DynaTrap’s proprietary AtraktaGlo™ Technology to produce a UV light, which is attractive to insects. The nontoxic StickyTech™ Glue Card then traps the bugs and conceals them. Dynamic Solutions Worldwide 877-403-8727 or dynatrap.com
Outdoor Tablet The Moultrie Field Tablet is an Android tablet that features a 7-inch touch screen. It lets a user view their game camera images in the field while functioning as a full-featured tablet. It has 4 GB of internal memory, can be connected via Wi-Fi or Bluetooth connections and has a 3.5 mm earphone jack. Moultrie Products 800-648-2059 or moultriefeeders.com
30
HARDWARE RETAILING | July 2018
Surfacing Material Pour-in-Place rubber surfacing is suitable for a variety of applications, including pathways, playgrounds, pool surrounds, garden sheds, utility vehicle beds, ramps, stairs and any area requiring an attractive, impact-absorbing, nonslip surface. It is porous, which makes it suitable for many landscaping uses such as around trees. Sandleford Holdings pourinplace.com.au
Toy Displays Toy Towers™ is a shopping display featuring a variety of premium impulse products, chosen for their novelty, quality and value. Streamlined and simple to merchandise, the Toy Towers system offers customizable and versatile options that maximize space and value for all retail spaces. Toysmith 800-356-0474 or toysmith.com
All-Weather Paper and Pen Rite in the Rain paper products have a special coating that allows them to remain legible and writeable when exposed to water or other liquids. The paper is available in a variety of bindings, including flip books, spiral notebooks and loose-leaf sheets. Rite in the Rain also produces pens able to write on wet paper along with kits for a variety of fields like tactical, agricultural and public safety. JL Darling 253-922-5000 or riteintherain.com
Flavored Drink Straws Water Magic Straws flavor water as a user sips. After dipping a straw in water and taking a sip, the flavor beads are activated and the effervescent tabs start to add bubbles. The straws contain less than 5 grams of sugar and 20 calories. Reach Cos. 866-848-8999 or magicstraws.com
July 2018 | HARDWARE RETAILING
31
Retailers’ Choice Awards 2018 Portable Workstation The Plan Station Portable Desk and Workstation is a portable, wall-hanging workstation and desk that provides a 24-by-48-inch workspace. It has over 20 pockets available to carry a laptop and other essentials. It quickly folds up and hangs flat on the wall to save space when not in use. Nielsen Products 800-217-1114 or planstation.biz
Battery-Powered Glue Gun The cordless PRO2-60 glue gun is powered by a Ryobi 18-Volt Lithium Ion compact battery that provides user efficiency and versatility. Powered with a PTC heating system, this glue gun delivers consistent working temperatures and a longer run time. It uses full size 0.43-inch (10.9 mm) glue sticks. Surebonder 847-487-4583 or surebonder.com
CHISELED JAWLINE
™
BUILT STRONG. WORKS HARD. WON’T QUIT.
When your customers gotta Get a Grip® on round stock and tubing, they need the CHANNELLOCK® 442 12" V-Jaw Tongue & Groove Plier. Its unique jaw design creates more points of contact, giving your customers more control—all with the legendary strength of a CHANNELLOCK® Tongue and Groove Plier.
channellock.com (800) 724-3018 ©2018 CHANNELLOCK, Inc. Meadville, PA, U.S.A.
32
HARDWARE RETAILING | July 2018
Tick Removal Tool The Original Tick Key™ is a tick removal device that uses natural forward leverage to remove the entire tick, head and all, from a person or pet without touching or smashing the tick’s body. It is fabricated from high-strength anodized aluminum and is available in 19 metallic and matte finishes. The flat design makes it easy to store in a wallet, on a keychain or on a pet’s leash. Tick Key Products 860-618-3072 or tickkey.com
Wi-Fi Enabled Rodent Trap The Victor® Wi-Fi Enabled Electronic Mouse Trap uses smart circuit technology to quickly sense and humanely dispatch a rodent once it enters the trap. Once a rodent is caught, a kill alert is sent to the user’s mobile device. This electronic trap offers easy setup, a No-Touch, No-See experience and 100 percent efficacy. Woodstream 855-584-2867 or victorpest.com
CABLE PULLERS AND FENCING INSTALLATION PRODUCTS quality built for durability & performance you can count on
Dual Drive Gears Galvanized 3/16” Aircraft Cable
Drop Forged Steel Slip Hooks with Safety Latches
High Strength Electro-Plated Steel
ONE TON
TWO TON
FOUR TON
ONE TON
TWO TON
STANDARD
STANDARD
STANDARD
PROFFESIONAL SERIES
PROFFESIONAL SERIES
3/4 -Ton Rope Puller
1-Ton Strap Puller
Fence Pliers
1/2-Ton Wire Grip
Contact Ancra Consumer / Industrial Sales Group at 800-626-8353
Woven Wire Stretcher
cicustomerservice@ancra.com
Fencing Wire
Stretcher
consumer.ancracargo.com July 2018 | HARDWARE RETAILING
33
Retailers’ Choice Awards 2018
Door Stopper The Pocket-Stop can hold doors open or closed to provide a deterrent to intruders. It has been tested on a wide variety of doors, from standard home doors to 12-foot fire doors with heavy-duty closures. It can be used in homes, building maintenance, hotels, movers and contractors. The Pocket-Stop folds into a smaller form for easy portability. CQ Innovations 707-696-1474 or pocket-stop.com
Scrubbing Soap Surly Soap is a hand soap for removing paint, dirt and grime. Designed with a built-in finger rail that reaches hard-to-get places, it combines a cleansing soap with an infused scrubber for cleaning hands. The scrubber works to penetrate stubborn compounds and reveals itself the more it is used. Surly 800-208-9168 or surlysoap.com
Phone Microscope The Clip-On Microscope works with any smart device, phone or tablet. The microscope aligns with a clip over the front-facing camera to examine a slide or specimen, and the image is shown on the phone’s screen at 200 to 400 times larger. The image can then be taken as a picture and shared through a phone. Science Wiz 510-222-2638 or sciencewiz.com
Door Pin Remover and Nail Set The Paint Pro Pak consists of one 32R12-1 nail set and a door pin removal tool that can remove any door pin without using a hammer or screwdriver that could damage wood molding around hinges. These tools are the size of a pen for easy transportation around job sites. Springtools 509-926-1541 or springtools.com
July 2018 | HARDWARE RETAILING
35
Retailers’ Choice Awards 2018 Hammock Display Eagles Nest Outfitters hammocks offer a variety of options for one or more people to enjoy a swing above the ground. The retail hammock display offers a full collection of Eagles Nest Outfitters hammocks in a few feet of salesfloor space. The line includes selections from ultralight backpacker hammocks to fully insulated camping options. Eagles Nest Outfitters 828-252-7808 or eaglesnestoutfittersinc.com
Key Organizer The KeySmart Pro holds up to 10 keys and features Tile™ Bluetooth-tracking technology so keys are never lost. The free Tile app will show a KeySmart Pro on a map. Also, if the user misplaces a phone, double tapping the Tile button on the KeySmart Pro will make it ring. It holds a charge for two months and recharges with an included micro USB cable. KeySmart sales@curvgroup.com or getkeysmart.com
Propane Pizza Oven The Pizzeria Pronto® reaches cooking temperatures of over 700 degrees and cooks a pizza in five minutes. This outdoor portable pizza oven can be used for tailgating, camping or a family pizza night. Simply hook it up to a propane tank, let it preheat for 10 minutes, and it’s ready to be used. Pizzacraft 866-682-2060 or pizzacraft.com
Pressurized Hose/Shower RinseKit is a pressurized, portable shower that can wash away dirt, sand and more from people, pets and gear. It is available in a hard or soft case and a heating element can be added. The case holds 2 gallons of water and can provide pressurized water flow for six minutes. RinseKit 800-613-5764 or rinsekit.com
36
HARDWARE RETAILING | July 2018
Bulb Changer The Lickety Split lightbulb changer is a system that allows users to safely and efficiently change hard-to-reach recessed lightbulbs. The patented adhesive pad will last for many bulb changes, and additional replacement pads are sold separately. For bulbs out of reach, simply screw the lightbulb changer on to any threaded extension pole to reach ceilings up to 16 feet. Gatski Enterprises 866-321-0809 or mylicketysplit.com
Paint Tray and Storage Container Paint Tray Solution is a paint tray with a rubber gasket and easy clip-on cover that has an air-tight feature to prevent paint and paint tools from drying during the application process. It also stores paint with or without the paint roller and can stay fresh for at least four months. The tray is clear to easily identify paint color, it’s stackable and it’s made with a versatile material that withstands wear and tear. Paint Tray Solutions 516-243-2102 or painttraysolutions.com
Decorative Light Aid The ELF | Easy Light Feeder™ is a no-ladder solution for decorating trees with holiday lights. It allows the user to safely hang lights on all types of trees (evergreen, deciduous or palm) in minutes, and it can reach heights greater than 20 feet. It attaches to any extension pole with standard ACME threads and works with most light sizes. Light strings feed tangle free from the included shoulder bag. Moonlight Concepts 800-579-4352 or elfeasy.com
Rolling Storage Tote UpCart® City is a multiwheel cart that provides a smooth ride on any supporting surfaces and improves stability while adding the ability to roll up and down staircases. Patented technology allows the UpCart City to fold completely flat for easy storage. It is lightweight but strong and can haul up to 77 pounds. No assembly is required. TriFold 800-539-3653 or upcart.com
July 2018 | HARDWARE RETAILING
37
Advertisement
Checkouts PROMOTIONS
Guess Again
S
taff members at O’Connor True Value Hardware in Billerica, Massachusetts, were looking for a new way to engage with customers through Facebook when another local business, a butcher, got a big boost to its social media engagement with a contest. The butcher offered a free prize to the 140th person who liked a post. Geoff Capra, a sales associate at O’Connor True Value, thought that was a good start to an online campaign, but there was more that could grow the store’s social media presence and entertain customers. The first contest centered around the Super Bowl, in which the local favorite New England Patriots were playing. Capra asked followers to guess how many yards Patriots quarterback Tom Brady would throw in the game. The person who guessed the closest, liked, shared and commented on the post would receive a gift card to the hardware store. “It really covered all the bases with the way people share posts on Facebook,” Capra says. “By engaging with likes, shares and comments, it involves the customer more and makes sure their friends also see the contest and the store.” The Super Bowl post garnered around 1,000 likes, prompting the staff to come up with another contest. The business shared a photo of a bin full of tennis balls and asked followers to guess how many were in the bin. That post garnered 3,000 likes, and with a boost through Facebook’s advertising program, over 175,000 people saw the post. Capra and O’Connor True Value Hardware have posted three contests so far. At Easter, they asked followers to guess how many jelly beans were in a container for a chance to win a Yeti-brand thermos. “Some people don’t get excited about a gift card, but you put something like a Yeti in as the prize, and that could really spark their interest,” Capra says. “We really like how engaged we’ve gotten with customers through these contests, but we are trying to keep them spaced out with a few months in between. We want to keep it special.” Due to the success of the contests, Capra is looking forward to learning more about internet marketing and how it can help the business. “There are some classes my manager and I have been looking into. There are so many platforms we can use, and I’m excited to see what other ways we can get the word out about the store,” Capra says.
Store associates at O’Connor True Value Hardware in Billerica, Massachusetts, have boosted the store’s online profile with games and contests. Participants like and share the store’s posts for a chance to win prizes.
Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Contact Melanie Moul at mmoul@nrha.org to have your story considered for publication.
40
HARDWARE RETAILING | July 2018
SQUEAK-PROOF
™
Quiet - Clean - Smooth™
Door hinges that make quiet time...quiet.
Innovative, patent-pending design ensures quiet, clean and smooth operation with no metal-to-metal contact.
Available in multiple finishes and corner radii.
The Hillman Group, Inc. | Cincinnati, OH 45231 | www.hillmangroup.com
Checkouts
PROMOTIONS
A Cat Walked Into a Hardware Store
T
o help connect with customers and contain mice in the store, the owners of Kelly’s True Value Hardware in Newburyport, Massachusetts adopted a feline employee. The cat came to the store with the name JackKnife, but they changed his name to Flynn in honor of an employee named John Flynn who died. “When we first got Flynn, the rescue told us to leave him in the office for two days to get him accustomed to his new home,” says vice president Lisa Kelly. “But when he got to our store, he made himself comfortable within an hour. He sauntered out to the salesfloor and plopped on the tile floor.” Flynn is now a well-known figure in the aisles of Kelly’s. Customers come into the store specifically looking for him, and on sunny days, they usually find him enjoying sunshine coming in through the skylights. Because Flynn was such a popular part of the Kelly’s team for customers who visit the store, Lisa thought
putting him on the company Facebook page would be another way to engage their base. “People love Flynn in the store, so I sent pictures of him to our social media consultant,” Lisa says. “I also found a smartphone app that allows you to make it look like he’s talking, so we made videos of him sharing sales and specials. It’s a fun alternative for advertising since we’ve started cutting back on our print ads.” The consultant developed the hashtag #FridaysWithFlynn, and customers now anticipate a post each week to see what Flynn is up to that day. Engagement on the company’s Facebook page increases every time he makes an appearance. “Lisa saw how much Flynn was accepted by the customers the minute we got him. It’s become almost part of our trademark,” says president Pete Kelly, Lisa’s father. “Connecting with the community is how small retail keeps its foothold, and interestingly, Flynn has become a big part of that.”
Flynn the cat is a permanent resident of Kelly’s True Value Hardware, where he controls the mouse population and brings customers in the doors. Through the hashtag #FridaysWithFlynn, he has also helped boost the business’s reach and engagement on Facebook.
42
HARDWARE RETAILING | July 2018
Checkouts
COMMUNITY RELATIONS
Sewing for Soldiers
I
n the weeks leading up to Memorial Day, Mark Shook got his customers thinking about how they could give back to veterans. Shook, manager at Waters True Value in Emporia, Kansas, joined forces with two other businesses in town to sponsor the local Quilts of Gratitude fundraiser. Quilts of Gratitude was started by members of the local quilters guild to make quilts that are donated to veterans. To help pay for the expenses involved in making the donated quilts, members of the organization made a “Thank You Troops” quilt, which was raffled off in May. Tickets were available at any of the three sponsoring businesses, which included Waters True Value, the local radio station and a local restaurant. Each business had a chance to display the quilt. It hung near the paint department at Waters True Value for about six weeks. The fundraiser has been a good way for Shook and his staff to be connected with a community project, in addition to having a nice piece of handiwork to show off in the store. “We’ve always been supportive of the community,” he says. “The quilt is a nice display, but it also offers an opportunity to those who are interested in donating to veterans.”
One lucky raffle winner received the “Thank You Troops” quilt over Memorial Day weekend. The fundraiser raised more than $3,300 to help local quilters make quilts for veterans.
COMMUNITY RELATIONS
Asking for a Hand
T
odd Kirschner is proud of how Trio Hardware has bought into the community near Plainview, New York. The store has built a strong following in the community through its support of local organizations. That following made an appearance when dozens of volunteers showed up to help Trio Hardware move to a new location. This kind of outreach isn’t unprecedented for the Plainview community or the business. Under the original owners, volunteers helped Trio Hardware move to a new facility in 1987. This time, the move was over a greater distance and it required moving far more products than in the ‘80s. “We’re big on social media, so we made a Facebook video announcement,” Kirschner says. “There were a few thousand hits on that video, and then we put out a sign-up sheet at the store for anyone interested in helping us move.” On moving day, representatives from organizations that Trio Hardware sponsors joined community members in unloading trucks. Volunteers signed waivers before handling any products, and each one received a T-shirt for their efforts. Enthusiasm was high throughout the move, which took two days over a weekend. The store reopened for business in its new location on the following Tuesday. “Everyone had a lot of fun with the process,” Kirschner says. “They told us, ‘It’s the least we can do. You have been in the community forever, so we’re happy to help when we can.’”
Volunteers assisted staff members at Trio Hardware in Plainview, New York, when the business moved to a new location a little more than a mile down the road.
Protection from the inside out
PROTECT. PRESERVE. ENHANCE. SUPERIOR PROTECTION AGAINST WATER, MOLD, & DECAY Ask us about our complete line of
high margin wood and masonry protection products.
BECOME AN EXCLUSIVE DEALER TODAY 1-888-363-2628
marketing@seal-once.com
© 2018 SEAL-ONCE is a registered trademark of U-C COATINGS, LLC BUFFALO, NY
July 2018 | HARDWARE RETAILING
45
Exceeding Expectations. One Fastener Destination at a Time!
“ Making a change in fastener suppliers was a highly researched and well thought through decision that has added several benefits for our customer base. We worked closely with our local Midwest Fastener rep to expand product offerings and enhance our display to make us the destination for Fasteners in our area. I want to thank Midwest Fastener for being a true partner for our business”
Owners, Cindy and Scott Jerousek Ashland, OH
For your very own fastener destination, contact Glen @ 800-444-7313 x 120
800.444.7313
fastenerconnection.com
48
HARDWARE RETAILING | July 2018
By Jesse Carleton, jcarleton@nrha.org, Hilary Welter, hwelter@nrha.org
The Future Is Now NRHA Celebrates 2018 Young Retailer of the Year Honorees
T
urning struggling businesses into success stories, recovering from disasters, leading expansions and modernizing workforces—the next generation of independent home improvement retailers is coming in hot, and they’re not slowing down. Eight of the industry’s most dedicated and innovative retailers age 35 and younger were named 2018 Young Retailer of the Year honorees by the North American Retail Hardware Association (NRHA). Not only are these retailers paving the way to a strong future for their businesses and the industry, but they’re also making a difference in their companies and communities every day. This year’s honorees care deeply about continuing to build their businesses by remaining strategic, creative and passionate, and NRHA honored them for their outstanding success. Additionally, these young retailers are working to strengthen the industry, their neighborhoods and themselves. They invest in educational opportunities, business development and community initiatives, setting examples as leaders in every aspect of their lives. “This year’s eight honorees are proof that the future of the independent home improvement industry is in good hands,” says Scott Wright, executive director of the Retail Leadership Institute at NRHA. “They’re not just preparing for the future; they’re making a huge impact right now. Their business acumen, inventive attitudes and commitment to their communities makes them excellent. They truly represent the future of the industry.”
The eight honorees were celebrated May 7 in Las Vegas prior to the NRHA All-Industry Conference, which is held in conjunction with the National Hardware Show®. The evening kicked off with a reception, sponsored by Arrow Fastener, where honorees and other members of the industry could mingle and share their stories. Attendees included retailers, manufacturers, wholesalers and other industry professionals. Following the reception, the Young Retailer of the Year awards program recognized the honorees in three categories: stores with less than $2 million in annual sales; stores with more than $2 million in annual sales; and multiple-store operations. You can read more about each honoree on the following pages. For a full profile and video presentation of each 2018 Young Retailer of the Year honoree, visit TheRedT.com/yroty-2018.
Thanks to All Our Sponsors
July 2018 | HARDWARE RETAILING
49
50
HARDWARE RETAILING | July 2018
Ronna Kilts Manager Mattson’s True Value Hardware Howard City, Michigan Under $2 Million in Annual Sales
“My roots run deep,
not only in the business but in the community as well. I think it’s important for customers to know we’re involved in their schools and their lives.
”
R
onna Kilts has deep roots in the hardware retailing industry, having grown up helping her parents in the business her grandparents started in 1963. It’s little surprise that, at the age of 25, she practically runs the back office of her parents’ store, Mattson’s True Value Hardware in Howard City, Michigan. She has already implemented major changes that will impact the future of the business. Earlier this year, Kilts directed a complete store remodel that included reorganizing departments, resetting merchandise and remodeling the store’s interior. Through it all, Kilts had to deal with a tight budget and many other demands on her time. In addition to working at the hardware store, she works part time as a cosmetologist at a local beauty salon. She also handles the bookkeeping for her brother, Ricky, who operates a party rental business. On top of it all, she’s finishing up her master’s degree in business administration. Despite her busy schedule, Kilts handled the remodel deftly. Mattson’s True Value Hardware has a large craft department and one of her goals was to encourage customers shopping the craft side of the business to visit the hardware side, and vice versa. To do that, she drew up a plan for reorganizing the layout of the salesfloor. By making the merchandising in certain areas more efficient, she was able to increase the number of products the store carried. After carefully planning each facet of the remodel, she then became a tireless cheerleader to get the staff on board to help with all the work that needed to be done. Kilts and her staff painted the entire store, installed new checkout counters and reset merchandise. She also expanded the store’s fasteners department, one of its most popular areas, and improved the presentation of the craft area and lawn and garden department. In addition, she began implementing a new inventory control process to improve the store’s efficiency and profitability. Kilts has put her organizing skills to work in the community, too. In 2016, she and her brother organized a buck pole contest, where local hunters compete for prizes during deer hunting season. The event has continued to grow and now has the participation of 20 local businesses. Kilts applied for and received a grant from True Value’s Painting a Brighter Future program. Through the grant, Tri County Area Schools, a local school district, received 40 gallons of free paint to be used toward any project of their choosing.
July 2018 | HARDWARE RETAILING
51
52
HARDWARE RETAILING | July 2018
Megan Zarbano Owner Handy Hardware & Rental Valley City, North Dakota Under $2 Million in Annual Sales
“It isn’t easy to keep
small-town America thriving, especially with big-box stores and e-commerce so readily available, but what we offer is so much more than that: exceptional customer service, industry expertise and a familiar face.
”
M
egan Zarbano may have only been 23 years old when she purchased a hardware store in Valley City, North Dakota. But in the nearly 10 years since the purchase, she’s shown that even at a young age, she has the talent to build a strong business. Zarbano’s family operated a pharmacy, so she had spent many hours working alongside her parents, learning the ins and outs of retail. But when she was a 16-year-old high school student, her parents encouraged her to find some experience outside the family business. They helped her find a job at a local hardware store. Within two weeks of working for the business, she was closing the store with her own set of keys. Zarbano worked at the store through college, and later in her senior year, a severe illness prevented the store’s owner from participating much in the business. Zarbano began running the store herself, despite not having much operational training. It wasn’t long after that the store’s owner decided to retire and offered to sell the business to Zarbano. In January 2009, just a few days after turning 23 and less than a year after graduating from college, Zarbano and her husband Tony purchased the business and renamed it Handy Hardware & Rental. The store’s former owner had recently completed a store remodel and expansion, but it wasn’t long before Zarbano needed more room for merchandise. In 2011, she expanded the building again and reset the aisles to make the store easier to shop. The paint department greatly benefited from the redesign. The company now ranks No. 4 among all of United Hardware’s Valspar paint sales. The reset proved to be a very profitable move. Average sales have been up significantly since their reset. Zarbano has continued to increase sales by developing innovative niches and through strengthening her core categories. Zarbano also makes community involvement a priority. Through her Rotary Club activities, she has helped with several community fundraisers. As the mother of two young children, she encourages programs that will benefit youth and literacy. She’s currently involved in securing and administering a grant for her area that will fund the purchase and distribution of a Rotary Club book designed to teach ethics to children.
July 2018 | HARDWARE RETAILING
53
54
HARDWARE RETAILING | July 2018
Sean Angelo General Manager Budget Home Supply Longmont, Colorado Over $2 Million in Annual Sales
“I understand the
challenges that small family businesses face while transitioning from generation to generation, and I’m determined to continue the tradition and legacy of the company.
”
S
ean Angelo began his career as a plumber, a trade he learned growing up in his grandfather’s plumbing business. In 2008, Angelo’s father-in-law, Butch Vernon, approached him about working for the family business, which has operated since 1984. Angelo started as a buyer. As he gained experience, he took on additional responsibilities. In 2011, he was promoted to general manager, and now he oversees the entire operation. Since his first day on the job, Angelo has remained dedicated to serving his community, successfully running the business and leading his team effectively. In 2013, Angelo worked closely with company stakeholders, including his wife Vernetta and his in-laws Bev and Butch Vernon, to revitalize the business after a flood caused significant damage. He considers this to be one of his greatest career achievements as a retailer, as he played a large role in creating and implementing a five-year strategy to rebrand, remerchandise and reset the store after the disaster. The process included changing the company’s name from Budget Home Center to Budget Home Supply. Angelo led the company in updating the business logo and shifted its focus to better serve pro customers. Additionally, he helped coordinate capital improvements, including updating the bathrooms, lighting and flooring in the store to make it a more welcoming environment for shoppers. The plan Angelo helped create and implement has resulted in an 82 percent increase in sales so far. As part of his plan, Angelo also began new initiatives to grow business with custom deck builders. Among that customer demographic, sales are up 450 percent over the past few years. Angelo prides himself on always keeping inventory fresh and staying current with industry trends. As a 2018 Young Retailer of the Year honoree, he looks forward to bettering the business for years to come. In addition to continuously improving his business and providing the highest quality service to customers, Angelo values giving back to the community and ensures that Budget Home Supply stays involved in community outreach programs. The company holds an annual Deck Trade Show, Ladies in the Lumberyard event, a golf tournament and a Customer Appreciation Banquet. Angelo also leads Budget Home Supply in giving back to numerous organizations in his local community.
July 2018 | HARDWARE RETAILING
55
56
HARDWARE RETAILING | July 2018
Taylor Baker Owner Foothills Hardware & Builders Supply Pilot Mountain, North Carolina Over $2 Million in Annual Sales
“I’m an attitude guy.
We look at attitude when hiring someone because we want to surround ourselves with people who have a positive outlook.
”
T
aylor Baker grew up working in his father’s hardware business and has been dusting shelves and cleaning counters since he could walk. He wasn’t sure that he wanted a long-term career in the home improvement industry, but after he earned his business administration degree, Baker’s family friend and Orgill president and CEO, Ron Beal, offered him a job at the distribution company. After many years working in marketing and later as a corporate accounts manager for Orgill, Baker and his family moved back home to North Carolina. They purchased a local surplus salvage yard in January 2015. Baker began transforming it into the company he now successfully operates, Foothills Hardware & Builders Supply. He worked with his distributor to completely reset and remerchandise the store. In only a few weeks, he successfully updated all of the store’s inventory, got rid of old products and filled the store with a diverse assortment of goods. Baker takes pride in providing his customers with the products and services they need, and is consistently updating his inventory accordingly. One of Foothills Hardware’s top departments is lumber and building materials, and contractor sales are continuing to rise. Baker prides himself on offering some of the best building materials in the county. Baker offers a variety of high-quality outdoor power equipment brands and is vastly growing his paint department. Additionally, he offers cabinets, flooring, windows, doors and a kitchen and bath design center to provide customers everything they need to complete large-scale projects affordably and efficiently. Baker’s efforts have proven successful. The business is thriving and continues to grow quickly. Leading a team of approximately 25 employees, Baker works hard to be a positive role model, and he always hires people who share his customer-centric outlook. He fosters an environment of positivity and believes that attitude can go a long way. In addition to running a successful business and leading a passionate team, Baker and the Foothills Hardware & Builders Supply team regularly give back to the community. They work with Boy Scouts and Eagle Scouts by donating materials for various projects. They sponsor the local high school football and Little League teams. Additionally, Baker and his staff work with the local Young Life group and EMS and fire departments, and they participate in the local Christmas parade and other community events.
July 2018 | HARDWARE RETAILING
57
58
HARDWARE RETAILING | July 2018
Mike Wilson General Manager/Dealer-Owner Wilson’s Home Hardware Building Centre Barrington Passage, Nova Scotia, Canada Over $2 Million in Annual Sales
“There’s a sense of pride ingrained in the history of this business that puts serving customers above all else. There’s no such thing as an insignificant detail.
”
M
ike Wilson started working for his family’s business, Wilson’s Home Hardware Building Centre, in 2008. In 2012, he took over day-to-day operations as general manager. In 2014, he became the fourth generation to lead the 94-year-old company when he became a co-owner as part of a formal succession plan. Since then, the company has grown by leaps and bounds. Wilson has increased efforts in the lumber and building materials category. He purchased a new boom truck, led a lumberyard expansion, oversaw the construction of a new warehouse, expanded the parking lot and added three staff members dedicated to this section of the business. As a result, sales in the lumber and building materials category have grown dramatically. Wilson is highly in tune with his community’s needs, and in addition to offering traditional categories, he maintains many niches to make his store a one-stop shop. These categories include a fresh flower shop, a Bell cellphone store, flooring installation services, a complete garden center, a home furniture shop, a trophy and engraving service and a heating department. In addition to offering customers the products they need, he understands the importance of authentically connecting and engaging with customers. He has led his team in implementing a Facebook marketing strategy. The company also hosts several annual events and sales. In only a few years, Wilson has established himself as a true leader of his 65-person team. As many of his established managers retire, he’s hired almost an entirely new management team. He has developed high standards for his employees to maintain a focused and detail-oriented staff prepared to serve customers. Wilson prides himself on fostering a healthy workplace, and he implements fun initiatives like his “Person of the Week” program, regular sales incentive contests, performance bonuses, exciting staff functions and more. Wilson brings a high level of energy and ambition to the business. He’s willing to work hard and holds himself to the same high standards he sets for employees. Wilson’s hard work and dedication has paid off. Top-line sales have increased every year since 2012. In addition to serving his community’s home improvement needs, Wilson and his staff give back to many causes and organizations. They support the local chamber of commerce, the fire department, the Salvation Army, local schools and many more organizations.
July 2018 | HARDWARE RETAILING
59
60
HARDWARE RETAILING | July 2018
Byron Clouse Owner Lewiston Ace Hardware Lewiston, Michigan Multiple-Store Operation
“I truly believe you
make a living by what you earn, but you make a life by what you give.
”
B
yron Clouse is one of those retailers who is not afraid to think big and think outside the typical boundaries of a hardware store. A fourth-generation retailer, he grew up working for his family’s business, which included both a hardware store and grocery store. He dreamed of owning his own business since he was a young teenager, so it’s no surprise that by the time he was 20, he was helping the family open and manage a brand new hardware store in Lewiston, Michigan. Then, in 2012, he and his father began looking at a retail building in Oscoda, Michigan, as a potential site for a new location. The 43,000-square-foot building was large enough, Clouse told his father, to house a hardware store along with a full grocery store. While the family had experience running both types of operations separately, combining them was an ambitious idea. Clouse was certain it would work and took the lead to make it happen. He began studying similar store setups across the country to craft his vision. He also acted as general contractor to renovate the building, plan the layout, fill the store with merchandise and hire 50 employees, all within four months. Today, the store has a 10,000-square-foot Ace Hardware store and a 33,000-square-foot grocery store, complete with a full deli, beer cave and even a gift shop. With the new store in Oscoda up and running, Clouse and his father purchased an existing hardware store in Gladwin, Michigan, in 2015. His newest store is in Hillman, Michigan. While expanding to new locations is part of Clouse’s strategy, he continues to strengthen his existing stores to best serve customers. After his combination grocery and hardware store proved successful, he also successfully integrated a full NAPA Auto Parts store into his Lewiston location. Each of his locations has a gift shop, sporting goods and nurseries—truly offering something for everyone. Clouse also strongly believes in improving his community. He has been involved with the Lewiston Chamber of Commerce for more than eight years, where he has made a big impact by taking leadership of its Timberfest community festival. The festival was at risk of being canceled due to lack of interest of leadership and low revenue. Clouse volunteered his business acumen and community relationships to turn it around. He brought in new vendors, entertainment, and attractions for children. The first Timberfest Clouse oversaw netted $10,000, and in the years since, has earned more than $65,000 for the chamber and the community of Lewiston.
July 2018 | HARDWARE RETAILING
61
62
HARDWARE RETAILING | July 2018
Nate Ludwig General Manager Dazey’s Building Center Garberville, California Multiple-Store Operation
“We’re not just here
to make money, we’re giving back to our community. It’s who we are; that’s just part of our makeup. We look forward to continuing this tradition in the new communities we are expanding into.
”
W
hen Nate Ludwig took control of a failing lumber and building materials business in the small town of Garberville, California, he turned it into a booming business practically overnight. But his story of overcoming obstacles starts much earlier in his life. Ludwig was only a teenager when his father suddenly lost his sight due to diabetes, leaving him unable to work. Seeking a way to support his family, Ludwig went to work on a construction crew full time. Then after high school, he landed a part-time job at a nearby lumberyard, which turned out to be an opportunity that would change his entire career path. Darren Tomasini, the store’s general manager, who became his friend and mentor, saw Ludwig’s potential and offered him a job as manager at the company’s second location, Arcata Lumber. In 2011, Ludwig left the business to return to construction, but a passion for retail was in his blood. In 2014, he had the opportunity to become the manager of the newly formed Dazey’s Building Center in Garberville. The facility consisted of a dilapidated building in a town of 1,100 citizens. The business needed a fresh start and an enthusiastic leader to guide it to success. For the next two and a half months, Ludwig poured his energy into remodeling the store. He also studied his customer base and realized their needs were unconventional. Most of his customers were in remote locations with little access to traditional goods and services, such as utilities. That meant many of them needed a wide range of products, including semi loads of ready-mix concrete, water tanks and industrial water filtration systems. The results were unconventional, too. The business had rung up $1 million in annual sales under the previous owner. Ludwig finished his first year with $4 million in sales. In the years that followed, growth continued, as Ludwig made property improvements, added a category in custom metal buildings and opened two more locations. By 2017, sales at Dazey’s had increased to $10 million. Despite all the work required in building a successful business, Ludwig still finds ways to spend quality time with his wife and seven children and give back to his community. For 10 years, Ludwig was a youth pastor at his church in Eureka, California. He currently serves as one of nine sectional youth directors for the United Pentecostal Church International, where he helps plan camps and conventions for youth throughout the state. At the store, Ludwig oversees fundraisers for local schools and fire departments.
July 2018 | HARDWARE RETAILING
63
64
HARDWARE RETAILING | July 2018
Diana Newton Vice President Bay Hardware Seal Beach, California Multiple-Store Operation
“I really love what
I do. I love that no two days are ever the same. Every day I wake up and feel like I have a purpose, a reason for being here.
”
D
iana Newton grew up in her family’s home improvement business, Craftwood Lumber & Hardware, north of Chicago. By the time she graduated high school, she was handling managerial responsibilities. After pursuing her teaching degree, Diana returned to the family business part time while also serving as the director of a local tutoring center. In 2009, Newton and her parents, David and Cynthia Brunjes, visited Bay Hardware in Seal Beach, California. A few months later, the family finalized the purchase of the store, and Newton began running the business. Newton spent the first year turning the store into a place the Seal Beach community could depend on. She bolstered inventory, added thousands of items and modernized the computer system. She did a total re-inventory of the store and completely overhauled the pricing structure. She also added niche items she knew her customers would find useful. Newton was only 25 years old when she took over Bay Hardware. She says the new responsibilities pushed her to work hard to prove herself to employees and customers. After only one year, she transformed the struggling hardware store into one that was voted best hardware store in Orange County in 2010. Sales shot up by $100,000 her first year, customer count rose and margins increased. Sales at the Seal Beach store are now over $1.4 million, representing a 65 percent increase under Newton’s management. In 2013, Diana and her family decided to purchase Lunada Bay Hardware in Palos Verdes Estates, California. The store was in poor shape when she acquired it, but she dove in to achieve another successful retail turnaround. Her first steps were to install a computer system and get an accurate inventory count. Then, she completely filled the understocked shelves. Newton revamped the fastener section by adding 3,000 new SKUs and she brought in a new line of paint. She brought in modernized fixtures and completely rearranged the store layout to improve the customer experience. Sales at the store tripled within the first two years and continue to climb steadily. From the beginning, Newton immersed herself and her businesses into her tightknit community. She’s served as secretary and president of the Seal Beach Chamber of Commerce, and is a member and former director of the Seal Beach Lions Club. She also founded a local Business Network International chapter. Additionally, Newton and her team donate supplies and time to many organizations in both Seal Beach and Palos Verdes Estates.
July 2018 | HARDWARE RETAILING
65
By Chad Husted, chusted@nrha.org
Ordering Up Organization How Retailers Can Bring Solutions to the Garage
G
arages were added to homes in the 1920s and 1930s as vehicle ownership became more common. In the early years, the sole purpose of a garage was to house vehicles, work on repair projects and keep equipment protected from the elements. As garages became more important to the daily life of the family, homebuyers began seeking attached garages that were more fully integrated into the design of the house. Many modern homeowners continue to use their garages for those traditional purposes.
66
HARDWARE RETAILING | July 2018
Yet the creativity of homeowners and organizational professionals has led to more projects in the space. For many homeowners, the garage has become the main portal to enter the home, rather than a front door from the porch. In addition, the areas of the home a garage entrance may lead to will vary depending on a home’s layout, from laundry and mud rooms to more lived-in spaces like living rooms or kitchens. This variation of entrance options from the garage may also affect the ways in which the garage is used.
Style & Security Shipped Same-Day Kwikset offers homeowners door hardware designs that feature sleek, contemporary styling and dependable security that provides peace of mind. HSI offers retailers the entire Kwikset line with same-day shipping from five locations, expert tech support and hassle-free service. Call HSI for the Special Order Kwikset hardware that your customers demand.
HSI Hassle Free Service
5 Warehouses Nationwide
Same-Day Shipping
In-House Keying
Kwikset Camino Handleset shown in Polished Chrome (26) Finish
hardwaresuppliers.com | 800-334-5625
“The garage in the modern home is indicative of how homeowners see themselves,” says Paul Greskovich, owner of Garage Craft Interiors in Holmdel, New Jersey. “It’s what they see when they leave in the morning, and it’s the first thing they see when they arrive home.” Given the increased importance of the garage, homeowners are taking a more evaluative approach to how the space is used. Home improvement retailers should keep in mind the many uses for garages, such as storage space for vehicles and large lawn-care items or dedicated showcases for prized cars and other toys. To evaluate how homeowners are choosing to rework their garage spaces, Hardware Retailing spoke with Greskovich, a renovation professional who specializes in organizing and rehabbing garages and other areas of the home. Whether designing for function or style, consumers are taking on garage projects with a passion. Retailers who are ready to harness that enthusiasm have an opportunity to assist customers with DIY-level garage projects.
A Place for (Almost) Everything When it comes to spacious garages, the options for storage are almost unlimited. This strongpoint for garages is also, somewhat predictably, a problem for many people. As the garage can be seen as an open space with room for large vehicles, outdoor equipment like power tools, lawnmowers and other home improvement tools, it can transform into a cluttered catch-all. Lack of organization and inefficient use of space in the garage can contribute to buildup that frustrates homeowners who want to utilize the space creatively. For Greskovich, every garage renovation has to start with a thorough decluttering of the space.
“The area around the
The garage is a great space to store extra food. These before-and-after project photos feature installed cabinets and a refrigerator.
68
HARDWARE RETAILING | July 2018
door into the home can become its own space with storage options necessary for one function, while another corner can be dedicated to something else, such as space for a hobby.
”
—Paul Greskovich, Garage Craft Interiors
Retailers can be instrumental in offering products to assist homeowners in tackling garage clutter and also providing knowledge on DIY projects in the garage, such as making it part of the living space or adding storage.
The act of purging unused or underused items can even be cathartic. A retailer’s knowledge and supplies can help in that aspect. “Retailers can talk to their customers about how to best store the items they’ve decided to keep after cleaning out a garage,” Greskovich says. “They can also be a resource for supplies involved in the cleaning project, because most garage projects are going to require items like degreasers, gloves and brooms to fully complete.” Garage Craft Interiors concentrates on top-of-the-line remodels in the New Jersey area, especially residential neighborhoods catering to high-income households outside New York City. While his business serves a market that isn’t often interested in DIY projects, Greskovich says all garages have potential, no matter the scale. In some cases, the scale is over the top and includes extensive renovations. Vehicle enthusiasts may choose to install car lifts or create showrooms for their vehicles. These types of projects may be outside the scope of average homeowners’ skills, while other projects, such as overhead storage, can be limited by the age and physical capabilities of the homeowner. These projects may be beyond the skill level of a DIYer, but they represent just a portion of the kinds of projects homeowners are undertaking. Not everyone wants or needs a parking space fit for a king, but they could be looking to find tidy storage options or items needed to renovate a portion of the garage for another purpose.
Given the garage’s position as a common entryway of many homes, homeowners are eager to keep messy items outside the home until they can be washed. In this pursuit, the conventional mudroom is being moved into the garage, complete with large multipurpose sinks and storage options for clothing and equipment, such as sports uniforms and hunting gear. “Many homeowners want to compartmentalize the space of their garage. It doesn’t have to be one large room with cars and tools,” Greskovich says. “The area around the door into the home can become its own space with storage options necessary for one function, while another corner can be dedicated to something else, such as space for a hobby.” One of those options includes creating a workout center in the garage, which can be a good solution for homes that don’t have a spare room or basement to store bulky workout equipment. Greskovich says the diverse options available from retailers can be an asset for these kinds of projects. Home improvement centers won’t necessarily sell items such as free weights, but they do have the necessary products to turn what is normally a bare, poorly lit garage area into a more comfortable space. Flooring materials, like molded interlocking foam pads that cushion concrete floors is a common need, Greskovich says. Other opportunities to greatly improve garage aesthetics that remain firmly in DIY territory July 2018 | HARDWARE RETAILING
69
include lighting and wiring to create a more lived-in look. Air conditioning and heating equipment are also needed to make a garage more comfortable. “Lighting is something many hardware retailers have invested in, and it’s one of the simplest ways to improve the garage space,” Greskovich says. Surface-mounted LED lighting options along with more electrical outlets and wiring for comfort items like TVs and cable connections are all ways to improve the space. Homeowners also want their garages to have more aesthetic appeal, which is another area where retailers can help. The expertise and product assortment that retailers offer can be a strong counterpart for DIYers or consumers who work with consultants to make their garages an extension of their living space. Renovations also offer opportunities for retailers to partner with other businesses in the garage innovation market to bring the best of both operations to these projects.
Storage That Grows With You Many homeowners want to transform a section of their garage or go for full makeovers to create a more livable space, but others simply want a
better way to tame an area of the home that is underutilized for its storage capabilities. Retailers can offer solutions such as pegboard storage, custom cabinets, shelving and workbench setups. Hanging repurposed kitchen cabinets is also a common project. Retailers who already focus on special orders should be able to thrive on these types of products. Merchandising a few examples to draw in customers looking at garage projects can open the door to the custom options that are available. Garage projects, like other home improvement projects that might stretch an owner’s skillset, also present opportunities for retailers who include installed sales in their portfolio. The projects needed to install storage in the garage are closely related to common installed sales projects throughout the rest of the home. An item ubiquitous in home storage solutions in the garage are slat wall products that work with tongue and groove mounts to provide storage options for bikes, cabinets and tools. Wall-mounted storage systems also offer scalability. One panel might work for new homeowners, but a growing family can steadily expand to need more panels and accessories.
Slat walls can offer a variety of storage opportunities in the garage, from shelving and baskets for larger items to hooks for hand tools and bikes.
70
HARDWARE RETAILING | July 2018
“The same items you’ll be storing when the kids are 11 and 12 aren’t what you’ll be wanting to store when they’re in high school,” Greskovich says. The issue of scalability also extends to ceiling storage options. Going vertical with storage can be as heavy duty as installing a pulley system to raise and lower a shelf to a DIY setup of beams placed above the rails for the garage door.
Dangers of DIY Greskovich cautioned retailers to get as much information about a customer’s intended project and to be ready to offer advice should a project be beyond the customer’s comfort zone or skill. Retailers are often on the lookout for a customer who might be in over their head on a project, but the garage has its own obstacles that consumers might not see coming. A common project Greskovich has seen DIYers miss the mark on in garage renovations is epoxy flooring. With its professional feel and high-gloss sheen, many homeowners looking to enhance the style in their garages have attempted adding a floor coating. It doesn’t always end the way they hope. “Floor coatings are all about preparation, and if you don’t have experience in that prep, you won’t get the end result you want,” Greskovich says.
Garage floors will often have imperfections and stains that must all be removed prior to application of the coating. If the preparation is done improperly, coatings can peel and look messy. Greskovich recommends mats and other nonbinding flooring alternatives for inexperienced DIYers, adding another option for retailers to offer their customers the best solution for their skill level and ambition. Home improvement retailers already have many of the products and knowledge needed to assist homeowners in both project goals. With a bit more focused knowledge and the right mix of products on display, hardware stores can be a go-to option for the professional garage renovator or DIYer looking to add some wow to a garage. “Retailers can be a great asset for storage options with their customers, and garages just need a bit more specialized knowledge,” Greskovich says. “It’s all about value analysis, both with what a customer wants to keep in the garage and what kind of solutions they want to install. Retailers can help customers do it right and be a lot happier with an important part of the home.”
Train the team. Educated employees sell more. Employee training helps grow your bottom line. It also leads to better customer service, lower staff turnover and more confident and productive employees. Invest in your staff to advance their careers and your business.
“We do a lot to educate our staff, and it’s so important for business. NRHA is an avenue for that and provides a variety of great resources.” David Dishke | Grand River Home Hardware
JOIN US TODAY AT NRHA.ORG/MEMBERSHIP
July 2018 | HARDWARE RETAILING
71
The
s e r o t S Oldest in Guiding Businesses Through the Centuries
I
ndependent home improvement retailers have, literally and figuratively, helped build America, and at least one existing operation predates the Declaration of Independence. But what does it take to guide businesses through the centuries and establish generational success? What changes have owners of some of America’s oldest hardware stores seen through the years, and what can other operations learn from their businesses’ longevity? Hardware Retailing spoke with owners of some of the oldest independent home improvement businesses in the country: Cowls Building Supply, founded in 1741 in Amherst, Massachusetts, and Tinsman Bros. Inc., founded in 1785 in Lumberville, Pennsylvania. Today, the businesses’ owners are still mindful of the decades of hard work and dedication their ancestors contributed to ensure each business thrived through the years. Cowls Building Supply’s start in 1741 was a time when the U.S. was still under British rule and Massachusetts was 47 years away from becoming a state. Tinsman Bros. was established less than a decade after the U.S. declared independence and used its proximity to the Delaware River to accrue valuable lumber that helped build the burgeoning nation.
72
HARDWARE RETAILING | July 2018
Both businesses persevered through transfers in family ownership and massive industry transitions (they’ve come a long way from selling horseshoes and handmade nails). They have even outlasted the battles that have made the U.S. a nation. Through it all, however, these businesses remained focused on serving their community’s needs. There are an endless number of retailers with an impressive history who could take up every page in the magazine. To read additional profiles on the history and hardships of some of the country’s oldest hardware stores and lumberyards, visit TheRedT.com/oldest-stores. There, you’ll find a full selection of profiles on some of the country’s oldest operations. If you believe your business should be included in this roundup of history, contact Hardware Retailing profiles editor Renee Changnon at rchangnon@nrha.org. Through tectonic political and economic changes, technological advances and the daily challenges of operating a home improvement business, members of the families who have operated Cowls and Tinsman discuss how history has shaped their businesses, day by day, century by century.
Foundations of Leadership This online course helps new and upcoming managers become leaders.
Team-Building Tactics Managers discover how to best connect with employees and solve larger issues like staff turnover and productivity.
Management Strategies Participants are taught to be innovative and creative in the workplace to create a strategic advantage.
Self-Evaluation Skills Students learn their strengths and weaknesses and how to communicate with different personality types.
“After this course, I’m confident I can leverage my strategic mindset and employee relations skills to be a successful new manager.” Josh Johnson | Assistant Manager Trainee | Ace Thrift Supply
FOR MORE INFORMATION, GO TO NRHA.ORG/FOL
Cowls Building Supply In 1741, before the American colonies became the United States, Jonathan and Hannah Cowls acquired a home farm and some timberland in an area now known as Amherst, Massachusetts. In 1768, their son David Cowls built the home farmhouse that every generation has lived in ever since. It has served as Cowls’ corporate headquarters for nine generations. Today, W.D. Cowls Inc., a real estate and timber company and Cowls Building Supply, its lumber and building materials subsidiary continue to be led by Cowls’ descendants. Cinda Jones and her brother Evan Jones are the ninth generation at the helm. While they share ownership of both companies, Cinda is the president of W.D. Cowls and Evan is the president of Cowls Building Supply.
Helping Build a New World Although the family is celebrating 277 years at the same location, Evan says they are able to trace their family roots back to the early 1600s when John Cole (Cowls) left England. More than 100 years later, Jonathan Cowls moved from Hatfield across the Connecticut River to what’s now Amherst. He grew trees, cut timber, sold lumber and raised livestock.
By the 1800s, the farm grew into a dairy operation and a forest management, lumber manufacturing and selling operation. Portable sawmills were taken into the woods to mill lumber. Walter Dickinson (W.D.) Cowls drove the business to even more prosperity in early 1900s, and the company was named for him when the business was incorporated in the 1950s. Throughout the 1900s, Cowls was the largest individual lumber dealer in western Massachusetts. W.D. and his wife Etta had one child, Sarah Etta Cowls, who married Gerald Denison Jones. The last name of the Cowls family has been Jones ever since.
Lumber, Cattle and Innovations While Sarah and Gerald ran the business, Sarah became a well-known cattle farmer who also bred sheep, pigs, chickens, Dalmatian dogs and screaming peacocks. Gerald helped Sarah’s father run the tree farming and lumber business. Sarah and Gerald had one child, their son Walter Cowls Jones, who ran the family’s corn, tobacco and potato farm. In the 1940s, Walter C. Jones developed a log concentration yard, sawmill and planing mill. He is credited with building the first electric sawmill, perhaps in the country, Cinda says. Walter married Sarah Hartman, and they had three children who grew up working on the farm. Their son Paul C. Jones was the eighth generation to work in the business, where he continued the sawmill and tree farm operation, and built Cowls retail store.
This is a photo of Cowls loggers out in the woods in 1900. Cowls was the largest individual lumber dealer in western Massachusetts. The sawmill was a major part of the home improvement business, but the family closed it in 2010.
74
HARDWARE RETAILING | July 2018
Left: This entry in a Cowls account book from 1859 shows poet Emily Dickinson’s brother and father were Cowls customers. Right: Cowls Building Supply remains relevant by modernizing operations while honoring the past.
“My father opened Cowls Building Supply, expanding on the wholesale lumberyard and sawmill business the company had been running for generations,” Evan says. “It is touted as the first full-service lumberyard or hardware store in the country to open fully computerized. The mainframe cost $60,000 in 1979 and had limited memory.” Cowls’ 1940s sawmill was hit by lightning and burned to the ground in 2002. The rebuilt mill was closed in 2010. “It must have been a hard day when generations had to discontinue different ventures, like selling the dairy cows or in our case, closing the sawmill,” Evan says. “But imagine if they had not. Opportunity for progress would be lost. Businesses that don’t change with the times don’t last nine generations.”
Respecting the Past, Embracing the Future Having a family business that dates back nearly 300 years is something Evan says he is extremely proud of, yet it can also be overwhelming. “It’s both an honor and a lot of pressure to be one of the oldest lumber dealers in the country,” he says. “Each generation has realigned the business model to suit their interests and strengths, as well as the market. I hope the next generation can do that as well.”
On school vacations and in the summer, Evan’s three children ages 12, 14 and 16 years old help out at Cowls Building Supply, giving the 10th generation a taste of the family business. Cowls Building Supply currently employs 35 people, several of whom have been with the company for decades. “Our store manager has been here 38 years,” Evan says. “He started working here right out of college stacking lumber in our sawmill and then worked his way up the ranks in the store.” As the centuries-old business grew, Evan says they have strived to be modern and ahead of their time. “We have a great web presence, and we exist alongside the big boxes just fine,” he says. Evan says focusing on high-quality materials and employees has been key, in addition to expanding and growing in manageable, calculated steps. In the next few years, the main goal is to continue to grow their customer base, since customers are getting older and retiring. One of the biggest challenges the business has faced over the years is finding and retaining the right sales staff, Evan says. “We have a great team here and it’s an enjoyable place to work,” he says. “Providing a stable, enjoyable place to work for hundreds of families over the past nine generations is what I would consider to be our greatest achievement.” July 2018 | HARDWARE RETAILING
75
Tinsman Bros. Inc. A 330-year-old chestnut tree grows outside Bill Tinsman’s office. Tinsman is president and co-owner of Tinsman Bros. in Lumberville, Pennsylvania, a business established in 1785. The tree is a daily reminder of the patience and fortitude it takes to keep the business successful across generations. “Everyone at Tinsman Bros. knows how special the business is and what its taken to keep it thriving throughout the decades,” he says.
A Revolutionary Start As the Revolutionary War drew to a close in 1783, U.S. Col. George Wall settled land in eastern Pennsylvania, calling the settlement Wall’s Landing. Located right on the banks of the Delaware River, its settlers had direct access to the river’s lucrative natural resources and trade routes. Wall established himself as a leader and businessman in the area. The retired colonel opened two sawmills, and Wall’s Landing quickly became a destination for brokers to bid on lumber that floated down from the Lehigh and Upper Delaware rivers.
In 1869, Tinsman’s great-great grandfather, William Tinsman, purchased the business and it has remained in the Tinsman family ever since. After 233 years of continuous operation, it is still thriving in what is now known as Lumberville, Pennsylvania. Brothers Bill and Tom Tinsman are fifth-generation co-owners and both men are committed to strengthening the business and preparing it for the future.
Persevering Through the Past Tinsman’s father and uncle both fought in World War II, flying aircraft throughout the European Theater. While they were serving the country, their father oversaw the business, keeping it stable, even as the world plunged into international conflict. Eventually, both men came home to Lumberville safely, able to return to Tinsman Bros. and prepare the business for the decades ahead. “I don’t think there was anything more impactful for the business since the Great Depression than World War II,” Tinsman says. “When my father and uncle came home, it was quite a celebration for the entire family.” Though the business had relied on it since its earliest days, proximity to the Delaware River has been a double-edged sword through the years, Tinsman says. Continued on Page 78
Tinsman Bros. has been delivering lumber and building materials for centuries. Employee Walter Smith loads a carriage full of lumber to deliver to construction sites and railways circa 1890.
76
HARDWARE RETAILING | July 2018
Retailer Profiles Take Readers on a Trip to the Past Are you a history buff, a lover of hardware or both? Hardware Retailing has a growing collection of articles featuring some of the oldest independent retail operations in the country. Visit TheRedT.com/oldest-stores to step back in time.
Maze Lumber Peru, Illinois
Placerville Hardware Placerville, California
Maze Lumber was founded by Samuel Nesbit Maze in 1848 in Peru, Illinois. He located his modest lumberyard on the banks of the Illinois River. The business is run by fifth-generation descendants of Maze and the sixth generation is working in the business now, too.
When the state of California was welcoming miners eager to strike gold in the 1800s, Placerville Hardware sold the supplies they needed. The business is considered the oldest hardware store west of the Mississippi, having been founded in 1850.
Henne Hardware New Braunfels, Texas
Trilling Hardware Sheboygan, Wisconsin
Henne Hardware opened in 1857 and is one of, if not the oldest, hardware stores in Texas. The store is housed in a building that was constructed for the business in 1893. The structure still has many of its original features including wooden floors, sliding ladders and a pulley system.
Trilling Hardware has been a staple in Wisconsin since 1850. The business was founded by August Trilling, a first-generation German immigrant who opened a general store. In the early days, the business supplied customers with hardware, turpentine and even whiskey.
July 2018 | HARDWARE RETAILING
77
Daniel Tinsman, second-generation owner of Tinsman Bros., stands in front of the original office of the lumberyard. His son, William Tinsman, was the grandfather of current co-owners Bill and Tom Tinsman.
Continued from Page 76
“We’ve faced many trials and tribulations from the Delaware River. In 1955, we had a flood of record in our area. Our buildings were totally flooded; we lost products and were basically devastated,” Tinsman says. After the historic flood, Tinsman’s father decided to move the company to nearby higher ground. The original location of Tinsman Bros. was subsequently used for storage and as an art studio.
Embracing Modern Challenges Though the business is more than 200 years old, it’s not immune to modern challenges like e-commerce and big-box competition, Tinsman says. “Big-box competition is huge, but that’s nothing new,” he says. “Fortunately at Tinsman Bros., we focus on the quality of our materials and the level of service we provide to back it up.” Today, the lumberyard provides western red cedar, cypress and Douglas fir lumber. In addition, it also offers a selection of both domestic and internationally made tools to distinguish itself from big boxes. Tinsman is proud of the company’s website and Facebook page, which he says create many sales leads for his team. He regularly uses the company’s reputation as one of the oldest lumberyards in the country in marketing materials to remind shoppers that the business has called Lumberville home for two full centuries.
78
HARDWARE RETAILING | July 2018
Planning for the Future Tinsman says retailers who want their own businesses to reach 233 years of operation should truly invest in their communities. “We’ve all been involved in the greater Lumberville community,” he says. “My brother is a volunteer firefighter and I was an elected official for many years. I think it comes down to community pride, that’s what it takes to keep a business going.” This year, Bill and Tom celebrate 30 years of running the company as president and vice president, respectively. Tinsman says they both feel lucky to work side by side with their sons each day, teaching them the lessons they learned from their own father and the businessmen who came before him. In the years ahead, Bill and his brother plan to transfer ownership of Tinsman Bros. to their sons, who will be the sixth generation of Tinsmans to run the company. Tinsman says he hopes the two cousins draw on the centuries of hard work and dedication previous owners have given to the business to keep it viable in the years ahead. Tinsman says it’s difficult to describe how it feels to run a business that dates back to the 18th century. “We know how special the business is and what it’s taken to keep it going for so many years,” he says. “We’re truly blessed.” Hardware Retailing staffers Renee Changnon, Kate Klein and Todd Taber contributed to this article.
This Email Is All You Need
Exclusive Articles
Quick Hits
Just a Start
Discover original stories like:
Spend 10 minutes every week catching up on: • The latest big-box and retail news • Industry trends • New products • And more
Along with news and business tools, sign up to receive: • Training opportunities • Conference and event info • Exclusive industry research • And more
• Retailer profiles • Operations articles and resources • Independent and wholesaler news • And more
“I enjoy receiving the Hardware Retailing newsletter. I like to see what the latest news is in the hardware industry and look at new products, marketing ideas and industry trends.” Tom Townsend | Taylor’s Do it Center SIGN UP TODAY AT THEREDT.COM/INDUSTRY-INSIDER.
Process & Procedure: Returns
RECEIPT
By Melanie Moul, mmoul@nrha.org
Proof of Purchase Required Keep Customers Happy and Your Business Protected With a Strong Return Policy
E
arlier this year, outdoor apparel retailer L.L. Bean converted its no-questions-asked lifetime return policy to a one-year policy, receipt required. In a letter dated Feb. 9 on the company’s Facebook page, the retailer said it needed to make the change because of customers who were “interpreting [the] guarantee well beyond its original intent.” Another challenge independent retailers face when it comes to returns is the convenience that competitors like Amazon offer. By simplifying their process, retailers will see less fraud and more dedicated customers.
80
HARDWARE RETAILING | July 2018
Hardware Retailing spoke to Zach Coblentz from Hartville Hardware, an independent business in Hartville, Ohio, that recently updated its return policy to make the process smoother for customers and simpler for staff to understand and execute. Read Coblentz’s advice on the following pages and take some cues from your competition to make sure you are living up to your service-focused reputation. For additional insights on returns from retailers enrolled in the North American Retail Hardware Association’s Retail Management Certification Program, visit TheRedT.com/returns-insights.
Create a policy that is easy to understand.
Trust your staff to make smart decisions.
Inside Hartville Hardware is seven acres of retail space, where the company houses 12 departments, from traditional hardware and outdoor living to apparel and farm and pet. In such a large operation, it’s crucial that all associates have the same information, especially when it comes to the store’s return policy, says Coblentz. “Store associates need more direction out of a return policy,” he says. “Sometimes, a customer will bring in a return and ask the first person they see if they can return it, and that person just tells them to take it to the customer service desk. Salesfloor associates don’t consider whether the item is actually returnable.” All store associates are expected to know the policy, even though returns can only be made with customer service associates at the service desk, not with cashiers at registers. The new policy at Hartville has three primary components. • Unopened merchandise can be returned with a receipt no matter how old it is. Returns made after one year will be credited with a gift card. • Opened, unused merchandise can be returned within 90 days with a receipt. • If a customer uses a product and isn’t satisfied with it for any reason, it can be returned within 30 days with a receipt. “When it comes to returns, there are a lot of gray areas,” Coblentz says. “When we encounter one, generally we will side with the customer, but this policy tries to make everything a little clearer.”
Coblentz says the core of the company’s return policy is that they want to be able to return or exchange any product. “We don’t want a customer to have anything they’re not happy with,” he says. The new policy helps all customer service associates who process returns understand what decision to make when a customer brings in a product to return it. But there are some situations that require additional oversight. To help address customers’ needs and respect the return policy, Hartville Hardware department managers have the final authority to decide whether a product can be returned, even if it doesn’t meet the standards of the policy. If an associate has a question about a return, they consult the department manager, who can authorize or reject the return. “We had a customer come in who wanted to return a pair boots he had been wearing. He had been wearing them for 40 days, which is 10 days past our 30-day used merchandise return policy,” Coblentz says. “But the customer wasn’t happy with them, and we don’t want to make it so cut and dry that we would miss out on a future sale. The department manager chose to accept the return so the customer could find something that worked better for him.”
Rely on technology to help reduce fraud. When the ambiguities aren’t easily distinguishable for a return, customer service associates and department managers at Hartville Hardware let the registers help.
What Hartville Hardware Doesn’t Take Back Many retailers put limits on items that can’t be returned, and Hartville Hardware is no exception. This list encompasses all the products Hartville doesn’t accept for returns, but Coblentz says even these items sometimes fall into a questionable area. The department manager is consulted when returns are requested for any of these items. • Items from Hartville’s bargain basement department • Gift cards • Delivery, installations or repairs • Cut bulk items, such as wire, chain or tubing • Special orders • Toilet seats • Major appliances • Generators • Utility trailers
July 2018 | HARDWARE RETAILING
81
The company recently upgraded its system with its POS vendor to track credit card purchases back 18 months, instead of just seven months like the prior system. Coblentz says the majority of purchases at the store are made with credit cards, so only a fraction of purchases aren’t tracked. He says the company does experience return fraud, and having the technology to support their new policy will help them weed out the customers who want to take advantage. The new system also lets associates scan customers’ IDs, which provides an additional layer to confirm someone’s identity. He remembers one customer who attempted to make a return without a receipt. They realized the customer had multiple accounts in the system with different names and addresses. To prevent this type of fraud, the new policy requires all customers to provide a photo ID to make returns. “Part of the new policy is theft prevention,” he says. “We want to return the item, but we need to verify the purchase.” Store associates have the ability to search for customer name, SKU or credit card number in the system, which will bring up an image of the receipt if the product a customer wishes to return was purchased legitimately. From there, associates can determine how or whether to proceed. From picking receipts out of the trash to requesting a different payment method in return, customers get creative to get cash. To help associates identify return fraud in action, the policy outlines various forms so they can be prepared to spot it.
Have a positive attitude and think long term. Coblentz recognizes that retailers at smaller operations who work the floor and also set the return policy may be more stringent about returns because they see fraud happen more often than he does. “We have some managers who have seen people abuse the return policy,” he says. “They remember that and think, ‘We can’t let this happen.’ It’s a little easier to make the policy when you are removed from it.” At the same time, he says it’s important to develop a policy that serves the business, the customers and the employees. He helped develop the Hartville Hardware policy based on the company’s guiding principles, which is something he recommends all retailers consider when developing their own policies. “We are long-term focused,” he says. “That means it’s not about one single sale. If our attitude is that if we return this $40 item, we’re in the hole, that’s short-sighted. You have to do what fits your business for 95 percent of your returns.” In addition to considering Hartville Hardware’s guiding statements for the new policy, the management team also considered big-box competitor Home Depot. “We want to keep customers coming back, which is what this policy is really about,” he says. “We looked at Home Depot because they’re our largest competitor, and they have a reputation for easy returns.”
Customer service associates can use the POS systems at Hartville Hardware to help them find purchases a customer is attempting to return. The technology provides another defense against return fraud.
82
HARDWARE RETAILING | July 2018
Taking a Big Cue on Returns To help independent retailers evaluate their return policies, Hardware Retailing considered the policies of big-box home improvement retailers Home Depot, Lowe’s and Menards and online retailer Amazon to create a checklist of return policy components. See snapshots of
these companies’ policies here and compare them to your own to determine how easy—or complex—returns are for your customers. Download this checklist for a quick reference at The RedT.com/big-box-returns.
Amazon
Home Depot
• Items purchased directly from Amazon (as opposed to a third-party seller) can be returned within 30 days of receipt. Refunds may take up to five business days to process, and customers may be responsible for return shipping costs. • Unopened electronics, such as computers or tablets, that are not Amazon-branded items can be returned within 30 days. • Live plants and insects, pet food and grocery items are not returnable, but may be refundable. • Products from Amazon brands, which include household items, baby products, snack foods and other categories, are refundable for a year after receipt if a customer is unsatisfied.
• New, unopened merchandise is returnable within 90 days, with a receipt. Items purchased on The Home Depot credit card or through commercial accounts can be returned one year after purchase. • Purchases using credit or debit cards or checks can be found in the POS system up to 90 days after purchase. • Live goods—perennials, trees and shrubs—are guaranteed for one year. Plants purchased online that arrive damaged or dead can be replaced within three days of receipt. • Paint can be returned for color correction or replacement within 30 days of purchase if a customer isn’t satisfied.
Lowe’s
Menards
• Merchandise can be returned for the same payment method with a valid receipt within 90 days of purchase.
• General merchandise can be returned within 90 days of purchase for a refund in the original method of payment with a receipt. Customers who wish to return an item after 90 days will be issued store credit.
• Lowe’s doesn’t require a receipt if a customer purchased an item using a credit card, cash or check because its POS tracks purchases through credit card numbers or phone numbers for those purchases. • Customers without a receipt may be issued store credit for the item’s current selling price. • Major appliances, outdoor power equipment and highway trailers can be returned within 30 days. • Winter seasonal items, such as Christmas decorations, can be returned on or before Dec. 26 of the same season.
Sources: amazon.com, homedepot.com, lowes.com, menards.com
• Customers who no longer have their receipt can retrieve it at the Returns Kiosk if they made the purchase with a check or credit card. • Special-order items can be returned on a case-by-case basis and will incur a 25 percent restocking fee. • Unused appliances in original packaging can be returned within 30 days of purchase. • Opened chemical items can be exchanged, but the store will not take the opened product back.
July 2018 | HARDWARE RETAILING
83
A Winning Idea Woods Hardware Wins $100K for Business Improvement Project
M
att Woods, president and CEO of his family business Woods Hardware in Cincinnati, had an exciting idea for improving his operation. However, like many retailers, money was a limiting factor in realizing his dreams. Recognizing the many financial obstacles owners are up against, the National Hardware Show® created the annual Reimagine Retail program in 2017 to help finance one retailer’s dream each year. This year, entrants like Woods were asked how they would use the prize money to implement technology to streamline their operations, satisfy customers and boost sales.
84
HARDWARE RETAILING | July 2018
Retailers submitted a 250-word entry detailing how technology could improve various facets of their businesses, from inventory management systems and the checkout process to marketing initiatives, e-commerce and training programs. The National Hardware Show narrowed down the submissions to select five deserving retailers who considered how technology could shape their business and position them for ongoing success. In the following pages, you’ll learn about the winning business, Woods Hardware. Discover how Woods plans to square off with competitors like Amazon through virtual reality and a seamless e-commerce platform in this Q&A.
Hardware Retailing (HR): Can you tell us about the history of Woods Hardware? Matt Woods (MW): My family opened ACME Lock in 1933 as a lock services business. In 2007, my parents decided to add a retail hardware division to our company, which began as a small convenience hardware store. I wasn’t in the business originally. I attended college in Florida and worked for a few years in finance. Then, my wife Kira and I decided to move to Ohio with our kids so I could join the family business. I’m the fourth generation to work in the business, and I now run the day-to-day operations alongside my parents. A few years ago, we decided to rebrand the hardware portion of our business to Woods Hardware. We also acquired a four-store hardware chain in October 2016 and opened up a brand new Woods Hardware in Cincinnati in January 2017.
Reimagine Retail Finalists In addition to Woods Hardware, four other finalists were chosen to present their business improvement plans during a panel discussion at the National Hardware Show® in Las Vegas. To learn more about each of the finalists’ unique and creative ideas, go to TheRedT.com/rr-finalists-2018. For more information on the Reimagine Retail program, go to nationalhardwareshow.com/reimagine-retail. The applications that rose to the top came from the following retailers: • The Color House in Wakefield, Rhode Island • Just Grillin Inc. in Tampa, Florida • La Grange Park Ace Hardware in La Grange Park, Illinois • Weeks Home Hardware in Waterdown, Ontario
July 2018 | HARDWARE RETAILING
85
HR: How did you learn about the Reimagine Retail program? MW: I learned about the Reimagine Retail program last year when it was first introduced for the 2017 National Hardware Show. In February 2017, my wholesaler sales representative suggested I submit an idea he knew we had been working on to the program. We submitted a working demo of a virtual tour of our store and our pitch of the retail improvement project and made it into the top 10. We didn’t win last year, but when the program was announced again this year, I applied again. I did some fine-tuning to my project and created a new pitch. This year, our project was chosen as the winner!
“Our plan is to allow
our customers to virtually tour our store and then make purchases in that virtual store.
”
—Matt Woods, Woods Hardware
HR: Can you explain your virtual reality tour and e-commerce idea? MW: Before I had even heard of the Reimagine Retail program, I started toying around with a new idea for the e-commerce side of our business. My friends own a virtual reality touring company, which uses technology to create real estate touring. They asked if it was something I’d be interested in trying in our business. I’m a very visual person. When I go into a store, I go in for one thing and then I might see three other things I need or want. After learning about the services my friends’ company could offer, I realized it would help meet a need I saw in our e-commerce platform. When people shop online, they’re looking for the specific thing they need, so I thought having a virtual store tour would help us promote add-on sales and impulse shopping for our online consumers. Our plan is to allow our customers to virtually tour our store and then make purchases in that virtual store. If they’re located within three miles of the store, we’ll even deliver orders the same day. With the help of my director of online operations and my friends’ company, we were able to create a virtual tour of the store and share it online.
Woods Hardware president and CEO Matt Woods won the National Hardware Show’s 2018 Reimagine Retail program with his idea to create a virtual online store. He plans to invest the $100,000 award into his new downtown Cincinnati store, which has been in operation since 2017.
86
HARDWARE RETAILING | July 2018
Woods’ business improvement plan will allow customers to browse the store and buy products online via an online tour.
HR: How did you react when your store was chosen as a finalist and then the winner? MW: I was extremely excited when we were selected as finalists again this year. However, I was nervous about the outcome this year more than the previous year. I wanted to make sure we did an even better job of presenting our project. Our application opened up saying, “This is how we beat Amazon.” It was a good hook and it worked in our case! There was stellar competition this year, and we were definitely among like-minded peers. So when Woods Hardware was announced as the winner, I felt very fortunate and a bit surprised. My mind immediately went into overdrive, like I had chugged an energy drink. My first thought after thinking “Holy cow, we won this!” was to start working through our business improvement project wish list. HR: What are your plans moving forward now that you’ve won the $100,000 prize money? MW: The next step for our project is to find the right point-of-sale provider. That’s our integral database to get it all started. Then we’ll want to make some adjustments and tweaks to our virtual tour. The goal is to roll our service out live by September or October this year. We’re going to start the virtual tour and e-commerce plan with our downtown Cincinnati store. We’ll launch it there, work on any bugs we might encounter, and then go from store to store to implement it in all our retail locations. We want to walk, not run. Currently, our shoppers can go to our website and take a tour of our virtual stores. In the future, it will indicate that customers can make purchases through that virtual store.
We will also have an app included and customers can shop on a mobile browser or via a desktop. Those customers who just want to make a purchase can forgo the virtual tour and immediately find what they need and buy it. Delivery will be same-day, and being in the downtown area, this service creates convenience more than anything else. The overall vision we have is that our idea can be implemented in all retail hardware stores. We’d love to integrate this with POS systems and do this in other operations. And once we have done the background work, it won’t be hard for other stores to implement the virtual reality tour, e-commerce and delivery in their own businesses. This setup will ensure we can all be relevant no matter how small our footprint is. If anyone has an idea on how to make our vision better or just wants to talk about it, please reach out to me. Our goal is to bring Amazon-like technology to the local retailer. HR: What does the Reimagine Retail program offer independent retailers? MW: I think this program is tremendous. It’s kind of like the TV show “Shark Tank.” Just like on that show, independent retailers are often entrepreneurs with great ideas they’re sitting on. However, finding a funding source can be difficult. For our industry, I think the Reimagine Retail program will continue to allow independents to present bigger and better ideas year after year. Perhaps some of the finalists from this year will refine their ideas and apply again next year, like I did. Winning $100,000 for your business is instrumental in turning a dream into reality.
July 2018 | HARDWARE RETAILING
87
Legislative Report
Banking Reform and Tariff Updates To keep retailers more informed about the legislative issues that may impact their businesses, Hardware Retailing will be providing regular updates in future issues and online.
F
or nearly a decade, banking regulation has loomed over small businesses in the U.S. Following the 2008 recession, Congress hoped to increase accountability in business and consumer banking. To achieve this goal, it passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Sen. Mike Crapo, R-Idaho, chairman of the Senate Committee on Banking, Housing and Urban Affairs, believes Dodd-Frank was well-intentioned but ill-advised. In April, Crapo introduced the Economic Growth, Regulatory Relief and Consumer Protection Act, also known as the Crapo bill. The bipartisan legislation was signed by President Donald Trump on May 24 after being passed by Congress. The bill amends the Truth in Lending Act and the Bank Holding Company Act of 1956. Institutions with less than $10 billion in assets are allowed to waive mortgage provisions such as repay requirements. Banks with assets valued at less than $10 billion are excluded from the Volcker rule, which prohibits banks from proprietary trading. The bill also promotes alternative credit scoring models for mortgage companies and lifts regulatory burden on community banks and credit unions to refocus energy on lending money.
88
HARDWARE RETAILING | July 2018
The legislation will also require credit agencies to provide an extension of free credit freezes and require the Department of the Treasury to work directly with Congress regarding a range of financial and cybersecurity issues. The Wall Street Journal reports banks with less than $250 million in assets will receive excemptions from costly stress tests.
A Bipartisan Approach There is no one-size-fits-all banking solution. Rep. Jim Banks, R-Ind., asserted that Dodd-Frank gave community banks no choice but to fail due to the burden posed by big banks. Following the House vote for the Economic Growth, Regulatory Relief and Consumer Protection Act, Banks said, “This important bill will roll back some of the most damaging of these regulations and enable financial institutions to better serve their customers and communities.” As voting was taking place, Congress reiterated that it is vital for local banks to succeed on their own by investing, lending and meeting the particular needs of small businesses in their communities. The Crapo bill garnered bipartisan support. In a statement, Sen. Mark Warner, D-VA, says, “This bill is the result of years of tough
negotiations between Democrats and Republicans and will help small lenders provide mortgages and other credit to hardworking Virginians and small businesses.” The Trump administration believes the rollback of Dodd-Frank marks a long-overdue solution to what they felt were numerous overcorrections made during the financial crisis.
Looking Ahead to Steel and Aluminum Tariffs President Trump, amid North American Free Trade Agreement (NAFTA) renegotiations, has sought to isolate trade deals concerning metal imports in a move he hopes will shore up the country’s steel industry, agriculture and the small business markets. In addition, the Department of Commerce and the president wish to address the growing concern that the country’s reliance on steel and aluminum imports represents an increasing financial liability and national security risk. In March, President Trump imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, which largely affected imports from China. Initially, the president granted exemptions to Canada, Brazil, the European Union, Australia
and Argentina. The administration negotiated individual agreements with South Korea, Brazil, Argentina and Australia, and the tariffs were exempted for those countries. On May 1, the president extended the tariff exemption period to the European Union, Mexico and Canada, but that exemption expired on June 1 because the countries did not reach an agreement with the U.S. The three groups have responded with in-kind tariffs on U.S. imports, The New York Times reports. In a press briefing in April, press secretary Sarah Sanders says the administration is confident that they can leverage American ingenuity and global influence to bring fair negotiations to the table. Jeff Cardwell is the deputy director of communications for the Lincoln Roundtable, a conservative grassroots political organization. He interned in the Office of the Vice President for Vice President Mike Pence and is on the advisory council for the People Helping People Network, a nonprofit that assists Central Americans affected by natural disasters.
July 2018 | HARDWARE RETAILING
89
Newsmakers
Are Big-Box Stores Shrinking?
Upcoming Events July 27-29 United Hardware Fall & Winter Buying Market Minneapolis
August 11-12 Florida Hardware Fall Market Orlando, Florida
14-16 Independent Garden Center Show Chicago
16-18 Ace Hardware Fall 2018 Convention & Exhibits Chicago
23-25
F
or many big-box retailers, bigger floor plans are no longer synonymous with being better. In fact, many traditional big-box chains are shrinking their footprints in order to better compete for the attention of today’s consumer. Target, for example, has begun opening stores that are smaller than 50,000 square feet— a dramatic difference from the company’s more typical stores, which are 170,000-plus square feet. To get a better grasp on the small footprint strategy and to find ways your business can continue to compete with these retailers, Hardware Retailing spoke to Laura Kennedy, a vice president of retail, sales and shopper practice at Kantar Consulting, an organization with a team of researchers, analysts, consultants and other retail, sales, shopper brand and marketing specialists. In the following Q&A, Kennedy shares her insights on shrinking stores and what she predicts the future of retail will bring.
Orgill Inc. Fall Dealer Market Las Vegas
September 2-4 Spoga+Gafa Cologne, Germany
7-9 Horizon Distribution Inc. HDI Annual Conference & Trade Show Yakima, Washington
14-16 Hardware Retailing (HR): Can you tell us about your expertise and your company? Laura Kennedy (LK): Kantar Consulting delivers insights into a variety of areas, which include an emphasis on the consumer and retail. We focus our research on retailers and channels and also drive insights on the shopper across various data sources. Our clients are generally suppliers to retailers, and include many of the retailers, as well. I have been with Kantar Consulting for seven years. I broadly lead our big-box team, and my expertise is on Walmart in the U.S. I also oversee our research on Target and big-box home improvement retailers, as well. HR: Would you agree that more big-box retailers are testing smaller footprint stores? LK: I think there are a couple different things happening right now. Almost two-thirds of the sales growth we’re seeing in brick-and-mortar over the next five years, through 2023, will be from retailers in boxes under 50,000 square feet.
90
HARDWARE RETAILING | July 2018
HDW Inc. Fall Market Shreveport, Louisiana
14-16 Monroe Hardware Fall Market Myrtle Beach, South Carolina
Find more details about these events and others online at TheRedT.com/calendar. To have your event added, contact Kate Klein at kklein@nrha.org.
My overall belief is that brick-and-mortar retail isn’t going to go away. However, retailers need to give customers a reason to visit. When we look at our forecast, that’s where more than half of the growth is coming from. And that growth is largely from retailers that are native to the smaller store size, like drug stores or dollar stores. Another thing to note is that shoppers are prioritizing convenience, ease and general movement away from a big, less convenient experience, which is driving a lot of that growth in smaller stores. Then, among big boxes, Target and Kohl’s are both testing out smaller store footprints. While Target is opening smaller-format stores, Kohl’s is specifically trying to shrink its space within existing stores to make use out of less space and use the remaining space for other business operations. HR: Why are companies shifting from supersized stores to small salesfloors? LK: Retailers overall are looking for ways to be more strategic with their salesfloors and the products available in store. For example, Target’s strategy with its smaller-footprint stores is to move away from the gargantuan store experience to a more convenient option. These small-format stores are mainly found in urban areas or near college campuses to get new shoppers into the fold. While they only represent a small share of Target’s overall sales, the small-format stores offer potential growth. In other cases, consumers no longer want to buy things like toiletries or household cleaning products in stores, so retailers are adjusting, offering those items online or in-store pickup to reduce space on the salesfloor. More broadly, Kohl’s represents the issues facing big-box stores today—a lot of wasted space. The company is shrinking many of its existing stores to make sure the salesfloor is more productive. Walmart is another example of a big-box retailer considering new ways to use floorspace. The company is trying to be tighter on inventory to clear up backrooms, which are likely turning into staging areas for online pickup orders. This is all part of rethinking the layouts of thousands of stores. HR: What is the advantage of having a smaller salesfloor? LK: I think retailers opening smaller stores or adjusting their existing stores are aligning with what today’s customer wants. Time as currency has risen to the top as a major convenience lever, and smaller stores are helping consumers save time. I also think smaller stores force a retailer to specifically consider why someone comes to their store instead of wanting to try to have everything.
Overall, price-oriented value and good deals are still No. 1 and No. 2 in importance among consumers. However, the next priority among today’s consumer is having a stress-free shopping experience. One retailer that is really moving in a good direction in the brick-and-mortar realm is Best Buy. The company is doing a good job of rethinking its retail space and making its stores destinations. Customers go to the store for expertise and to look at products in person. As a retailer, your retail location must have a value proposition. If it’s just there for inventory, then you need to reconsider what you’re doing. HR: What does the shift to small-format stores signal about the health of brick-and-mortar retail? LK: My overall belief is that brick-and-mortar retail isn’t going to go away. However, retailers need to give customers a reason to visit. I think big-box stores like Nordstrom and Best Buy are good examples of companies that give their customers a reason to visit. In general, brick-and-mortar retailers need to realize their physical stores can’t be the be-all and end-all. Consider a retail location like a spoke in the wheel in addition to a company’s e-commerce platform. HR: Why do you think some small-format stores failed? What are some examples of retailers that have done a good job adapting to a smaller format? LK: I think Best Buy Mobile stores were a little redundant and that’s something Best Buy acknowledged. These stores were introduced when mobile phone purchasing was expanding. While there was a boom initially, the issue is that once people have their phone they won’t need to return to the store until it’s time for a new phone a few years down the road. Walmart Express only had about 100 stores before it closed them all. I think the company never quite executed this retail venture. They didn’t dive into the role it played to complement the overall business. I’m not surprised the company ended up closing those locations to focus on more profitable retail ventures. I don’t have evidence to support this, but Kohl’s is the most fascinating company adjusting store footprint in my opinion. They’re using big space and making it smaller. I also think Target’s small-format stores are doing pretty well.
Laura Kennedy is the vice president of retail, sales and shopper practice. She leads Kantar Consulting’s Walmart and home improvement research team. She also leads Kantar Consulting’s coverage of the home improvement retail industry, heading a team that studies the operations of Home Depot and Lowe’s, as well as other diverse hardware store and specialty retailers. Learn more about her work at consulting.kantar.com.
July 2018 | HARDWARE RETAILING
91
Newsmakers Orgill Honored With Presidential Export Award Orgill Inc. was one of 43 U.S. companies that received the E Star Award for Exports. The award is given to companies that make a significant contribution to expanding U.S. exports. TheRedT.com/orgill-award
Lowe’s Earnings Rise in Q1 2018 Lowe’s reported net earnings of $988 million in its first-quarter 2018 financial results. This is a 64 percent increase over the same period in 2017. TheRedT.com/lowes-q1-2018
Lowe’s Names New President and CEO Marvin Ellison, former chairman and CEO of J.C. Penney Co., is now Lowe’s next president and CEO.
Award Winning Fastener
Destinations
Ph:800.444.7313
fastenerconnection.com
92
HARDWARE RETAILING | July 2018
He is replacing Robert A. Niblock, who announced his retirement in March. TheRedT.com/lowes-ceo
roughly 170 warehouses and distribution centers throughout the U.S. TheRedT.com/hd-internal
Ace Hardware Reports ‘Record Sales Growth’
Sears to Close 63 Stores
In the first quarter of 2018, Ace Hardware Corp. reported increases in revenue and sales, including double-digit sales growth. President and CEO John Venhuizen says there was a 34 percent increase in online sales. TheRedT.com/ace-q1-2018
Home Depot Invests $11B in ‘Internal Improvements’ Home Depot will spend billions on “internal improvements,” including the construction of more distribution centers. The company plans to open
After closing 400 stores in the last year, Sears Holdings Corp. has announced it will shutter an additional 48 Sears stores and 15 Kmart locations by September. TheRedT.com/sears-63
Ace Hardware Hires Former Gamestop Exec Ace Hardware Corp. has announced John Tovar, former vice president of merchandising for video game and electronics company Gamestop, will now serve as the company’s vice president of retail operations and new business. TheRedT.com/ace-exec
Lowe’s Bans Harmful Chemicals Lowe’s will no longer sell paint solvents that include chemicals linked to dozens of accidental deaths. The company pledges to introduce safe alternatives to customers in the coming months. TheRedT.com/lowes-chemicals
Former NRHA President Dies Blair Douglas, former president of NRHA and the Canadian Retail Hardware Association, has died in Caledonia, Nova Scotia. He was 65 years old. TheRedT.com/blair-douglas
CANADA Expanded Role for Home Hardware CEO Terry Davis Terry Davis, current CEO of Home Hardware, will now also
serve as the company’s president, succeeding Paul Straus in the role.
Lee Valley Tools Plans First Store in Quebec Lee Valley Tools is expanding its brick-and-mortar presence by opening its largest and first store in Quebec. Robin Lee, head of Lee Valley Tools, says his company is currently working on its next store along Autoroute 15 in Laval, Quebec.
Groupe BMR Adds New Sales Rep, Programs Groupe BMR is returning to the Ontario market. The buying group and wholesaler is developing business outside its home province of Quebec. This expansion includes the appointment of Gilles Parenteau
as BMR business development adviser. The group ceased expansion efforts in that province after La Coop fédérée bought Groupe BMR at the beginning of 2015. The next three years found the company focused on reorganization closer to home.
Canadian Tire CEO Commits to Growth At its annual general meeting, Canadian Tire Corp. announced CEO Stephen Wetmore had signed another three-year commitment to the company. It also announced the acquisition of outdoor apparel brand Helly Hansen and the launch of the Triangle Rewards program.
For the full version of these news briefs, visit hardlines.ca/hardwareretailing.
AD INDEX Ace Hardware............................................................3 www.myace.com; 630-990-6900
Hillman Group Inc....................................................41 www.hillmangroup.com; 800-800-4900
Paladin Data Corporation ...........................................5 www.paladinpointofsale.com/?NRHA; 541-803-6060
Ajax Wire Specialty Co. ...........................................28 www.ajaxwire.com; 855-966-2529
Home Improvement Research Institute..................15 www.hiri.org; 317-982-3979
Phifer .........................................................................7 www.phifer.com; 800-841-9473
Apex Tool Group........................................................1 www.apextoolgroup.com; 410-773-7800
HSI...........................................................................67 www.hardwaresuppliers.com; 800-334-5625
Quickscrews............................................................21 www.quickscrews.com; 800-743-6916
Benjamin Moore.....................................................BC www.benjaminmoore.com; 855-724-6802
Indeck Ladysmith ...............................................16-17 www.grillersgold.com; 715-532-3042
S-Line by Ancra International ................................33 www.ancra.com; 800-626-8353
Bonide .....................................................................25 www.bonide.com; 315-736-8231
International Products Group...................................26 www.ipgsales.net; 561-948-4632
Seal-Once .............................................................45 www.seal-once.com; 888-363-2628
Broil King Barbeques ...............................................11 www.broilkingbbq.com; 800-265-2150
IPG.....................................................................35, 92 www.itape.com; 888-898-7834
ShurTech Brands LLC..............................................27 www.frogtape.com; 800-321-1733
Channellock Inc. ......................................................32 www.channellock.com; 800-724-3018
Ironclad Performance Wear Corp.......................... IFC www.ironclad.com; 844-200-5664
SureCan ...................................................................34 www.SureCanUSA.com; 801-827-0500
Cole’s Wild Bird.........................................................9 www.coleswildbird.com; 877-426-8882
Merrifield Paint Co...................................................29 www.maddogprimer.com
Tacoma Firelogs ......................................................44 www.tacomafirelogs.com; 253-272-4107
Curv Group LLC..................................................18-19 www.curvgroup.com
Midwest Fastener ........................................46-47, 92 www.fastenerconnection.com; 800-444-7313
Taiwan Hardware Show .....................................38-39 www.hardwareshow.com.tw; +886-2-2595-4212
Delta ........................................................................26 www.deltafaucet.com; 800-345-3358
NRHA Employee Training .......................................71 www.nrha.org/membership
True Value Company ...............................................23 www.truevaluecompany.com; 888-291-7229
Do it Best Corp........................................................13 www.independentsdoitbest.com; 888-364-8237
NRHA Foundations of Leadership Program ............73 www.nrha.org/fol
Wastequip LLC........................................................24 www.toter.com; 800-424-0422
Fluidmaster..............................................................32 www.fluidmaster.com; 800-631-2011
Old Masters.............................................................43 www.myoldmasters.com; 800-747-3436
*This index is provided for the convenience of our advertisers and readers. The Publisher assumes no liability for errors or omissions.
Hardware Retailing Newsletter ...............................79 ThereDT.com/Industry-Insider
Orgill Inc. ..........................................................96-IBC www.orgill.com; 800-347-2860
July 2018 | HARDWARE RETAILING
93
Last Word
Can You Name That Tool?
T
he North American Retail Hardware Association (NRHA) has an interesting collection of old tools displayed throughout its Indianapolis headquarters. Some of the items may look familiar, and others may be completely new to your eyes.
Can you tell us what the following tools are? If so, let us know at TheRedT.com/name-tools. Five people who correctly identify the home improvement store treasures pictured here will receive a Starbucks gift card. Don’t delay; name that tool today!
2
1
3 94
HARDWARE RETAILING | July 2018
4
5
6
7 July 2018 | HARDWARE RETAILING
95
Scott Ward Fix & Feed Hardware Texas
“We’re developing our name around being strong and independent, and Orgill gets that.”
‘Strong And Independent’ Orgill offers the prices, products and everything else our customers need!
Consistent Support
Always In Stock, Always Competitive
“We enjoy our partnership with Orgill. Our sales rep takes
“Orgill continues to be a good partner, and that’s what
care of us. No matter what we’ve needed from Orgill,
we’re looking for—a partner that has product in stock and is
their support has always remained consistent.”
competitive on pricing.”
Orgill’s Got Us Covered
A Partner for Growth
“As a business co-owner, there are a lot of little things I take
“It was an easy decision to switch to Orgill, because Orgill is
care of daily, so I feel good knowing Orgill can help us handle
so easy to work with. They support us while giving us space
other items, such as merchandising and pricing analysis.”
and helping us continue to grow.”
For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017
©2017 Benjamin Moore & Co. Benjamin Moore, Paint like no other, and the triangle “M” symbol are registered trademarks licensed to Benjamin Moore & Co.
When you join the Benjamin Moore retailer network, it’s your store, not a franchise. Which means no franchise fee, and 100% of your investment goes into your own store. Go to benjaminmoore.com/newdealers to learn more.