Issuu

Serving Hardware, Home Center & Building Material Retailers

Adopt Your Town Five Ways You Can Embrace Your Community 36

VOLUME 210 • ISSUE 6 • JUNE 2016 • HARDWARERETAILING.COM

What’s the Buzz in Farm, Pet and Ranch? 48

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‘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, CFO and co-owner of Fix & Feed Hardware, with three locations in northeast Texas l An Orgill customer since 2006

Consistent Support “We enjoy our partnership with Orgill. Our sales rep takes care of us. No matter what we’ve needed from Orgill, their support has always remained consistent.”

Orgill’s Got Us Covered “As a business co-owner, there are a lot of little things I take care of daily, so I feel good knowing Orgill can help us handle other items, such as merchandising and pricing analysis.”

Always In Stock, Always Competitive “Orgill continues to be a good partner, and that’s what we’re looking for—a partner that has product in stock and is competitive on pricing.”

A Partner for Growth “It was an easy decision to switch to Orgill, because Orgill is so easy to work with. They support us while giving us space and helping us continue to grow.”

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In 30 days, you may need to make an important health insurance decision. Have you considered your options? Health insurance can be tricky, but the North American Retail Hardware Association is here to help. We offer an alternative program with a range of coverage options.

VOLUME 210 • ISSUE 6 • JUNE 2016 • HARDWARERETAILING.COM

To learn more, please contact Bob Chiesa at 888-201-7408 or cbigi@msn.com.

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Participate in the annual Cost of Doing Business Study to help improve your business and the overall home improvement industry.

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Adopt Your Town

“The most valuable thing I got out of the program is a confidence level that I can do this and do it well… as well or better than my peers across the country.” —James Tkacz, Friedman’s Home Improvement, California

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Five Ways You Can Embrace Your Community 36 What’s the Buzz in Farm, Pet and Ranch? 48 Don’t Miss Out! The deadline for the Fall 2016 session is July 31! These companies are supporting your success as an independent retailer by providing scholarships.

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Serving Hardware, Home Center & Building Material Retailers

Adopt Your Town Five Ways You Can Embrace Your Community 36

VOLUME 210 • ISSUE 6 • JUNE 2016 • HARDWARERETAILING.COM

What’s the Buzz in Farm, Pet and Ranch? 48

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NEXT MONTH

Learning From Next-Gen Leaders

he Young Retailer of the Year honorees have opened new stores, are beefing up existing operations and are donating their time and resources to serve their communities, all while raising families and learning how to lead businesses as they go. Don’t miss the inspiring stories of these eight independent retailers who the North American Retail Hardware Association is

honoring as the industry’s best and brightest young rising stars. You will also want to read about the journeys of new or incoming store owners who have recently taken the helm of existing businesses or will be taking over from owners who are selling. Learn from the newcomers’ perspectives on the challenges of being part of a succession plan.

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June 2016 | HARDWARE RETAILING

Headquarters Staff

PUBLISHING

NRHA MISSION

PUBLISHER, VICE PRESIDENT OF PUBLISHING Dan Tratensek

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.

COMMUNICATIONS

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

DIRECTOR OF COMMUNICATIONS Whitney Daulton ASSOCIATE EDITOR Liz Lichtenberger ASSISTANT EDITOR Renee Changnon

LEAD GRAPHIC DESIGNER Lynnea Verville

CONTROLLER David Gowan

GRAPHIC DESIGNER Graeme Haase

EDUCATION

WEB DEVELOPER Kevin Trehan

DIRECTOR OF MEMBER SERVICES Allison DeWitt, 317-275-9414, adewitt@nrha.org

MARKET RESEARCH ANALYST Sara Logel

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

PRODUCTION SERVICES

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

PRODUCTION MANAGER Nancy A. Vondersaar

MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9435, kstokes@nrha.org

SALES AND PRODUCTION ASSISTANT Freda Creech

RETAIL LEADERSHIP INSTITUTE

CIRCULATION

EXECUTIVE DIRECTOR-RETAIL LEADERSHIP INSTITUTE Scott Wright, 317-275-9430, swright@nrha.org

CIRCULATION DIRECTOR Richard Jarrett

DIRECTOR OF RETAIL OUTREACH Tom Marcum, 317-275-9430, tmarcum@nrha.org

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

NRHA VENDOR PARTNER VENDOR INTEGRATION MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org

NRHA CANADA NRHA CANADA Michael McLarney, 360 Dupont St., Toronto, Ontario, Canada M5R 1V9; 416-489-3396, mike@hardlines.ca

STATE AND REGIONAL ASSOCIATIONS MICHIGAN RETAIL HARDWARE ASSOCIATION Patrick Harrington, 4414 S. Pennsylvania Ave., Lansing, MI 48910; 517-394-1710; FAX 517-394-6754 MIDWEST HARDWARE ASSOCIATION John Haka, 2301 Country Club Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; FAX 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, or 97305 (UPS,FedEx); P.O. Box 17819, Salem or 97305 (U.S. Mail); 503-375-9024; FAX 503-375-7980; Alaska, Idaho, Ore., Wash. SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; FAX 816-561-1249; Ark., Kan., La., Mo., Neb., N.M., Texas

SALES VICE PRESIDENT OF SALES Bob Cutter NATIONAL SALES MANAGER Lowell Huffman MIDWEST REGION MANAGER Tony Sarantakis, 404 Afton Circle, Barrington, Ill. 60010; 847-934-9515, Fax: 847-934-2494, tonytakis@aol.com WEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, Ill. 60559; 630-234-3272, Fax: 847-934-2494, cmiller7288@gmail.com NORTHEST REGION MANAGER Brian Ziff, 17 Cutler Knoll, Watertown, Conn. 06795; 203-509-0125, Fax: 317-275-9406, bziff@nrha.org GREAT LAKES REGION MANAGER Brad Lyons, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9424, Fax: 317-275-9403, blyons@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, ON M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, Ind. 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00. Periodical postage paid at Indianapolis, Indiana, and additional mailing offices. POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2016 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.

HARDWARE RETAILING | June 2016

FEATURED NRHA BOARD MEMBER

ASSISTANT EDITOR Kate Klein

“Your team exists

to improve the life of those who come to your store. That’s what makes it magic to me. It’s more than just a job.

”

JARED SMITH BOARD MEMBER

Jared (Jake) Smith, owner of Jared’s Ace Hardware and Crossroads Outdoors in Bishopville, South Carolina, joined the Board in 2015. He graduated from Clemson University and was a sales representative for hardware operations in the southeast before returning full-time to his family’s store in 1981. YOU GO BY TWO DIFFERENT FIRST NAMES. CAN YOU TELL US WHY? My full name is Jared Manley Smith, IV. There were three of us named Jared, and my family decided I needed a name other than ‘Hey you.’ When I was born, my mother, still under anesthesia, said to call me Jake. I don’t know where that came from, but it’s stuck ever since.

Contents JUNE 2016 | VOLUME 210 | ISSUE 6

Features

36 COMMUNITY INVOLVEMENT

What Can You Do for Your Town? Do you want your business connected to your community in new ways? Gain inspiration and ideas from retailers who are making these connections. Whether its hosting pet adoption days, planting gardens to feed the hungry or serving as elected city officials, these retailers stay busy and give back.

48 CATEGORY SPOTLIGHT

Farm, Pet and Ranch The farm, pet and ranch category continues to grow and evolve, finding its place in rural, urban and suburban locations. To find further success in this category, try one (or all!) of these four niches to improve your farm, pet and ranch offering. The four niches are: Backyard Poultry Pet Products Beekeeping

Wild Bird Food

Departments 06 08 10 12 18 22 32 60 66

On the Web Independent Thinking Taking Care of Business NRHA News Trends New Products Checkouts Newsmakers/Calendar The Last Word

On the Cover

48 4

HARDWARE RETAILING | June 2016

Tom Klaus, owner of Keck Hardware & Hobbies in Trenton, Michigan, hosts biannual pet adoption days at his store to serve and connect with people in his community NRHA photo by Lynnea Verville.

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COMMUNITY INVOLVEMENT

ENTER TO WIN

Become an Integral Part of Your Community

How Many Dogs Can You Find?

Read this month’s feature story on community involvement, then visit the links below for additional stories and resources to help spark ideas for your store.

There are lots of dogs in this issue! Can you find them all? Send an email to Slogel@nrha.org with the number of dogs you find by June 30. Five people who submit the correct answer will win a Starbucks gift card!

Event Checklist: Use this checklist to help you prepare and plan for your next store event. Visit TheRedT.com/EventChecklist.

Video: The owner of Keck Hardware and Hobby explains the planning process for his Pet Adoption Day. View the video at TheRedT.com/PetAdoption.

Retailer Examples: In this month’s feature story, we share how five retailers help their communities. This is only a snapshot! To read more about how they’re making a difference, visit TheRedT.com/CommunityInvolvement.

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is geared toward all levels of employees. Use them at your next meeting! Visit nrha.org/freetraining to download this month’s lessons, listed below.

1 Infographic: Mosquito Control Products

2 Worksheet: Staying Safe on the Job 3

Video: Engaging the Customer and Starting the Sale

4 Video: Closing the Sale

CATEGORY TRENDS

WHAT DID YOU MISS?

Mosquito Control

National Hardware Show®

At TheRedT.com/mosquito-control, we have some strategies for selling mosquito control products and how you can respond to customers’ questions about the Zika virus.

Couldn’t make it to the National Hardware Show this year? We’ve recapped the Show with videos and photos. Visit TheRedT.com/2016NHS to see what you missed!

HARDWARE RETAILING | June 2016

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

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Independent Thinking

How Time Flies

“Our industry has

to come to a better understanding of what millennials want and need as consumers, employees and retail owners.

”

arly last month, during the National Hardware Show® and NRHA All-Industry Conference, I had the distinct honor of hosting the Young Retailer of the Year Awards. Eight young retailers under the age of 35 who have accomplished great things in their business careers were honored with this prestigious award. Next month’s issue of the magazine will profile each of these up-and-coming retailers. This was the 20th anniversary of the awards program, so it was a special milestone and an opportunity to reflect on the last 20 years’ history of our independent channel and look at where we’re headed. I’m one of a few who has had the good fortune to attend all 20 Young Retailer programs. As a baby boomer, it’s a little alarming for me to note that the first class of Young Retailer of the Year honorees I saw in 1996 included several baby boomers. The youngest boomer would have been 31 in 1996. Every one of this year’s Young Retailer honorees is a millennial. Sometimes we forget how time flies… In 1996, we were an industry in upheaval. Home Depot and Lowe’s were conquering the home center segment of the market, adding about a hundred stores per year. In 1996, they had grown to just over 900 stores combined and controlled about 20 percent of industry sales. Today, they have over 4,000 stores and almost half of all industry sales. Since the recession, the market has settled; unit growth has all but stopped. That period is history; we are in a different era. Since 1996, things have also changed in our distribution channel. Again, consolidation was the norm, and many regional distributors went the way of the regional home center chains. Only a few smart, tough regional players found ways to compete. Again, most of this consolidation process is history. So, what’s the point? While history can be instructive, the challenges of the future will be different. Young retailers today will face different obstacles. One of the major forces to be faced and understood is the power of the millennials. This year, millennials surpassed boomers in numbers for the first time. In 2016, these 19- to 35 year-olds will number 75.4 million in the U.S., and this generation is predicted to continue to grow from immigration to over 80 million in the next 20 years. In 2016, the youngest boomer will be 52 years old and the oldest 70 years old. The big spending days of the boomer generation are fading. Our industry has to come to a better understanding of what millennials want and need as consumers, employees and retail owners. Millennials will be different, but independent retailers need to know how to serve them in order to successfully compete for their business. They will drive the market for at least the next 20 years. We will also see continuing consolidation among independents. Not fewer stores, just fewer owners. It’s the natural evolution of an industry and a solution to the passing of ownership between generations. Done right, it will leave the independent channel stronger and more competitive than ever. So, it’s time to take our Young Retailers seriously. They are the next generation and will face their own unique challenges. It’s time to empower them to find their own solutions.

Bill Lee, President and CEO

blee@nrha.org

HARDWARE RETAILING | June 2016

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Taking Care of Business

More Consumers Focusing on Fowl Play

“The back-to-the

land movement is changing rapidly, and to serve this customer base, you have to stay up to date on the latest changes in consumer habits.

”

here are very few things in this world my wonderful wife actually wants for herself. If you gave the woman $1,000 and told her she had to spend it on something just for her, she would have a very difficult time figuring out what to buy. That’s why it makes me a little sad that the one thing in this world that I know she truly desires, she can’t have. I’ll wait for the jokes about a new husband to subside before I let you in on what it is she really yearns for. (And it’s not a diamond ring or a trip around the world.) Nope, my wife wants chickens. But we live in a suburban subdivision with a homeowners’ association that strictly prohibits us from owning any sort of non-domestic animals or livestock. As law-abiding homeowners, as long as we live under the blanket of HOA-imposed tyranny, our backyard must remain fowl-free. Someday, maybe in the not-too-distant-future, we will escape the iron shackles of suburban living and have a proper yard where my wife’s dreams can finally come home to roost. For now, however, she will have to be content growing her small vegetable garden, tending to some flowers and caring for her domesticated flock of dogs, kids and husband. As any of you who have read my column in the past know, I often use my wife as a trend barometer of sorts. After all, she is the archetype of the most coveted consumer demographic—a middle-aged, suburban woman with modest disposable income. So, when she is ordering seed catalogs, browsing through magazines about raising Rhode Island Reds and Googling articles about beekeeping, I know she’s probably not alone. In fact, the number of households across North America that are engaging in activities like backyard farming, beekeeping and vegetable gardening continues to increase. From the cities to the suburbs and beyond, whether they measure their outdoor spaces in feet or acres, more and more consumers are following this back-to-the-land movement. And this consumer penchant for a more agrarian lifestyle can present bountiful opportunities for home improvement retailers of all types and in all locations. Whether this means adding supplies for popular projects, hosting in-store how-to seminars or simply educating staff on the birds and bees (literally), you don’t want to miss out on what the farm, pet and ranch category can offer. Like most rapidly emerging trends, however, the back-to-the-land movement is changing rapidly, and to serve this customer base, you have to stay up to date on the latest changes in consumer habits. Learn more in the story on Page 48, where we will take a closer look at some of the trends emerging in this category, including some of the areas listed above, as well as some of the other hot outdoor topics that will be shaping the season to come. And while you read up on the latest backyard pastimes, I’ll help my wife come to grips with the fact that, at least for now, our eggs will still have to come from a carton.

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | June 2016

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NRHA News

The $100,000 Difference

he variance in profit between a typical and high-profit store is $100,000. You have an opportunity to grow your store’s profit by understanding how your business compares to other operations in the industry. “Every business needs to know the benchmarks within their industry, whether you sell groceries or lumber,” says Gary Copp, CEO of Carson City Lumber in Carson City, Michigan. “You need to know how you compare to stores in the same sector with similar sales volumes.” To benchmark his business against industry financial averages, Copp has been using the North American Retail Hardware Association’s (NRHA) annual Cost of Doing Business Study since the 1970s. He uses it to evaluate operational elements of his business, such as staffing efficiency. “We use the Cost of Doing Business Study to analyze payroll,” Copp says. “During the recession, we used it to track how much the industry was shrinking their staff size and then after the recession, how quickly the industry was adding employees back.” Not only does Copp reap the benefits of the study, he also participates annually by submitting his income statements and balance sheets to NRHA. The association then combines his information with financial data submitted by more than 1,000 home improvement stores and develops a benchmarking report that includes industry averages and ratios. Copp and other participants can then use this information to compare their businesses to the

rest of the industry. All retailers who submit financial information not only support the industry, but also receive a toolkit of resources. Copp is a big advocate of the study, and encourages other store owners to take full advantage of the data, and the helpful resources that accompany it. “The tools you receive for participating are tremendous resources every retailer can use to analyze and make decisions for the business,” says Copp. Participants get a PDF copy of the completed study and a Personalized Financial Analysis that includes ratios, what-if scenarios and other tools in an Excel document that are specifically catered to the individual’s store. The what-if scenarios include preprogrammed formulas so one can see how altering different expenses affects profit. For example, store managers can use the resource to see how decreasing payroll by 1 percent or increasing average transaction size by $1 would affect profit margin. Using tools like this can help you make smart business decisions to take your operation to the next level. There is more than $100,000 in missed profit dollars between a typical and high-profit hardware store. Implementing changes, supported by data in the Cost of Doing Business Study, can help bridge this gap and provide more money to reinvest in your business. To participate in the 2016 Cost of Doing Business Study, visit TheRedT.com/codb2016.

Missed Profit Dollars for a Typical Store: Typical Hardware Store

$45,366

$107,511

High-Profit Hardware Store

$152,877

Source: 2015 Cost of Doing Business Study, North American Retail Hardware Association

HARDWARE RETAILING | June 2016

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NRHA News

Couldn’t attend this year? See more from the conference at TheRedT.com/2016NHS.

An Event to Remember

he largest gathering of independent home improvement retailers was held May 4-6 in Las Vegas. The 2016 National Hardware Show® and NRHA All-Industry Conference offered three busy days of educational seminars, new products, award ceremonies and networking opportunities. In case you missed it, here’s a recap of the excitement.

2 1. The 2016 Young Retailer of the Year

Awards Ceremony honored eight young retailers from the U.S. and Canada. 2. Keynote speaker Charles Fishman,

author of “The Wal-Mart Effect,” discussed the future of Walmart. 3. Bernzomatic awarded $25,000 in

scholarships to students of the Retail Management Certification Prorgram.

4. Attendees browsed the Packaging

5. The Industry’s Top Guns, four

and Merchandising Award winners displayed in the NRHA Village. successful, innovative retailers, shared their thoughts during a panel discussion.

6. Retailers attended the NRHA

Independent Retailer Reception. 7. Mark Herbek, keynote speaker,

reviewed the home improvement industry’s economic recovery. 8. A retailer panel discussed their

leadership journeys and how they foster leadership development in their stores.

5 14

HARDWARE RETAILING | June 2016

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

Business is booming since Robbie left the other co-op behind to join our family. Although he’s proudly independent, Robbie never rides alone. Our team at True Value® is always at his side. We ofer Robbie sound business solutions and resources to ensure his future growth and proftability. We fuel his success. Today, Robbie has real relationships with folks who care. He no longer feels like “just another number.” After all, Robbie is family.

FREEDOM TO RUN HIS STORE HIS WAY WITHOUT INTERFERENCE

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NRHA News

10 Retailers Walk Into a Room…

nd we ask them to start talking about their businesses. What happens? People start sharing ideas on marketing, merchandising and operations. They give examples of what works and what doesn’t in their stores. They discuss best practices and common struggles. And, at the end of the day, everyone leaves inspired with a list of ideas for ways to improve their stores.

“The thing I enjoyed most about

the Young Retailer Roundtable was that all the people who attended have the same goals and ambitions I do: to make their store the best they can.

”

—Zach Coblentz, Hartville Hardware

HARDWARE RETAILING | June 2016

NRHA is providing retailers across the U.S. and Canada the opportunity to connect with other independent retailers across wholesale affiliations. Each year, your association hosts several roundtable events on a variety of topics. With agendas set by the attendees, roundtable themes include: • Marketing and Merchandising • Financial Affairs • Human Resources • Young Retailers in the Industry • And more! “The thing I enjoyed most about the Young Retailer Roundtable was that all the people who attended have the same goals and ambitions I do: to make their stores the best they can,” says Zach Coblentz, division manager at Hartville Hardware in Hartville, Ohio, and Young Retailer Roundtable attendee. “Everyone had great ideas to take their stores up a notch, and it helped me think outside the box on a lot of issues.” If you’re interested in connecting with your fellow independent retailers and learning new ways to improve your business, please contact NRHA at 800-772-4424.

Embodying the Spirit of Independents

David Snell

aving a place to call home is part of the foundation for a strong and stable family life, something that everyone deserves. Six companies in the home improvement industry are donating time and materials to The Fuller Center for Housing to help make owning a home a possibility for people in need. To recognize their abundant efforts, NRHA and The Fuller Center for Housing honored the following companies with the Spirit of Independents Award on May 5 at the NRHA All-Industry Conference and National Hardware Show®: • Ace Hardware Home Center, Round Lake, Illinois • Cardwell’s Do it Best Home Center, Indianapolis, Indiana • HDW, Inc., Shreveport, Louisiana • Stanley® Tools, New Britain, Connecticut • STIHL®, Virginia Beach, Virginia • Wooster Brush Company, Wooster, Ohio NRHA partners with The Fuller Center for Housing to help connect manufacturers, wholesalers and independent retailers with the organization to help it build and rehabilitate homes in communities across the U.S. “The time and supplies provided by these companies enhance the lives of recipients and restores their dignity,” says David Snell, president and co-founder of The Fuller Center for Housing. “Gifts like those made by the honorees of this award go a long way toward making houses more affordable.” If you are interested in getting involved with The Fuller Center for Housing, please contact Bill Lee at 800-772-4424.

redlionproducts.com

June 2016 | HARDWARE RETAILING

Trends Perpetually Spending More on Pets Americans are forking out more and more cash to care for and entertain their dogs, cats and other pets.

Outlets Consumers Purchase Animal Care Products

In 2015, 65 percent of U.S. households—or 79.7 million homes—owned a pet, according to the American Pet Products Association. These households combined spent more than $60 billion on their animals in 2015, for a steady increase over the past several years.

In order of frequency for purchasing animal products.

To offer insight on where consumers purchase their animal care products and what factors influence their decisions, Hardware Retailing polled more than 1,000 consumers. What we found was that while many consumers purchase animal care products at pet or grocery stores, there may be opportunities to capture more business from your pet-owning customer base. The data from our study also suggests that consumers are more concerned that their preferred source for pet products provides a greater variety of products over the lowest prices.

Applied to Retail: Many people who come into your store on a daily basis own pets, and you can cement their loyalty if you provide a pet-friendly store environment for them. Allow animals to come into your store, and promote the fact that they’re invited inside. Then, provide a drinking station near the pet aisle or keep treats at the cash register so your furry customers enjoy their in-store experiences. For more information on pet products and what’s trending in this category, turn to Page 48.

Primary Factors Consumers Consider When Choosing Where to Purchase Animal Care Products In order of importance to consumers.

1 2

Grocery Store

3 4

Variety of Products

Sells Products at the Lowest Prices

5 6

HARDWARE RETAILING | June 2016

Local Hardware Store Other (Farm store, discount store)

Source: 2016 Pet Products Consumer Poll, North American Retail Hardware Association

Consumers choose variety over price so you can stand out against competitors by offering a large selection of pet food rather than a few options at a low price.

Has Knowledgeable Employees

Source: 2016 Pet Products Consumer Poll, North American Retail Hardware Association

Convenience Store Big-box Home Improvement Store

$ Convenient Location

Pet Store

LOCALLY OWNED

Is a Locally Owned Business

Other (specific brands, USA made, high-quality)

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New Products

“Sloggers boots are unique and made in America. Customers like them because they are comfortable, practical, and as my wife says, ‘cute to boot.’ —Peter Ballhaussen, Town Hardware & General Store

“The Kelvin.36 has a lot of

”

screwdriver options, so you don’t need to dig through the toolbox to make quick fix. I think they also make great gifts.

”

—Nathaniel Garber, Garber Hardware

1. RAIN AND GARDEN BOOTS

2. URBAN MULTI-TOOL

Sloggers Rain & Garden Boots are designed for garden work or rainy days. Lower and wider than most rain boots, there is more room to tuck pants into the boots. The boots are made in the USA and include “All-Day-Comfort” insoles and a signature deep-lug sole for great traction in wet and muddy conditions. Sloggers boots are made from medical-grade material, so they have a soft feel, no odor and are easy to clean. The sole contains up to 50 percent recycled material, and when users are finished with the boots, they can send them back to Sloggers to be recycled into a new pair.

The Kelvin.36 has 36 tools, functions and features built into one compact design. The Kelvin.36 is made of strong aluminum, allowing it to stand up to wear and tear for years. It comes in a premium metal gift box, which is great for storage of the tool or other bits and pieces. The Kelvin.36 features a snap-action screwdriver that opens with the push of a button. It also has two locks at 90-degree angles for extra torque. It has a powerful alloy magnet to hold loose screws and nails along the driver.

SLOGGERS 877-750-4437 or www.sloggers.com

HARDWARE RETAILING | June 2016

KELVIN TOOLS 866-776-3549 or www.kelvintools.com

RETAILER PICKS These four products were selected by retailers like you! Share your favorite products by contacting Renee Changnon at rchangnon@nrha.org.

“Chicken Poop lip balm does

well at our stores. We get lots of laughs when customers realize it’s not really chicken poop. —Missy Fields, Triangle Pharmacy & Ace Hardware

”

3 “The Handl'r does really well. It's a sturdy product. You can put a lot of weight on it. You can choose team colors or custom colors.

”

—Steven Stewart, Vision Ace Hardware

3. LIP BALM

4. TUMBLER HANDLE ADD-ON

Chicken Poop™ Lip Junk by Simone Chickenbone Natural Put-Ons™ is an all-natural lip moisturizer made from high-quality, recognizable ingredients and packaged in a standard .15-ounce tube. The lip moisturizer is made of avocado oil, jojoba, sweet orange, lavender essential oil, beeswax and Vitamin E. It provides a smooth application. The name Chicken Poop comes from a joke; the lip moisturizer contains no poop.

The HANDL’R is a three-piece patent-pending add-on handle for the YETI Rambler and other similar shaped 30-ounce tumblers. It offers consumers maximum flexibility and personalization for their tumbler. It can be purchased in a variety of colors, can be taken apart and stowed when not in use and is lightweight yet durable. The product is easy to attach and remove and is cupholder-friendly.

SIMONE CHICKENBONE 316-263-7667 or www.ilovechickenpoop.com

THE536 GROUP 832-304-7171 or www.thehandlr.com

June 2016 | HARDWARE RETAILING

New Products Project Tip

SAY GOOD-BYE TO POPCORN CEILINGS In many older homes, a past trend—the popcorn ceiling—seems to date living spaces in a less-thanappreciated way. These ceilings are difficult to repair and clean, but they became extremely popular in the 1950s because it was easy to hide imperfections and finish them quickly. Customers have likely come to you before when they’re ready to bid these dated ceilings adieu. Share the tips below with your customers to help them remove and improve the look of their rooms. While there are several ways to tackle this project, scraping the ceiling is usually the most common, albeit messiest way to do it. However, it’s the most cost-effective and only requires one person. • Before a customer begins removing a popcorn ceiling, recommend they test it for asbestos. If it tests positive, scraping is not the way to go; instead, drywalling may be a better option. • If the ceiling is asbestos-free, the first step requires a 4-inch utility knife or drywall knife to chip away at the texture and create a smooth surface. • The next step is to smooth it out with a thin layer of joint compound to remove dings and imperfections. • After that, it's time to sand the surface smooth before repainting it.

Mosquito endcap Special discounts and September dating available now Kill Larvae Controlling larvae is a cornerstone to efective mosquito control. Ponds, bird baths or any place with standing water should be treated.

Repel Adults For temporary relief during outdoors events, all natural area mosquito repellents are an added level of protection.

Kill Adults Reducing adult populations is essential to overall control that will allow safer outdoor enjoyment.

Collapse entire populations Thermal fogging is so efective it will collapse entire mosquito populations providing the most efective short and long term control.

CALL: 315-736-8231 x221 EMAIL: sales@bonide.com 24

HARDWARE RETAILING | June 2016

Our local salesperson is ready to assist you

New Products How-to Sell

PROMOTE DOG-FRIENDLY OUTDOOR FUN For homeowners with a four-legged friend in the family, the backyard space is as much for the dogs as it is for the human residents. Since outdoor living continues to grow in popularity, your customers will come to you looking for ways to keep their furry family member happy and safe. • Provide Water—To keep dogs cool, recommend they have a fresh water station for them at home. They can set up a dog bowl outside or create a water feature in the landscaping for a dog to drink from. • Create Boundaries—Although some dogs may know to stay close to home, creating a fenced-in area will give them boundaries. Recommend your customers select a fencing material that works best with their landscaping. An invisible fence is another option to offer as well. • Avoid Toxins—Many plants, such as azaleas, lilies and mums, are dangerous for dogs if they eat them. Create a list of plants that might not have a good effect on dogs or train your employees to ask those shopping for plants if they have a dog. Also, lead pet owners to nontoxic landscaping materials. • A Place to Rest—Another thing animals should avoid is extended exposure to the sun. Large trees will provide shade, but selling dog houses and overhead coverings is another must. Customized dog houses are trending, so customers may make their pets a puppy mansion with a variety of materials from your store.

Thinners Solvents Reducers Retarders Removers Paint Additives Specialty Cleaners Protective Coatings Specialty Chemicals

Sunnyside Corporation 225 Carpenter Avenue Wheeling, Illinois 60090 www.sunnysidecorp.com June 2016 | HARDWARE RETAILING

New Products

5. FAUCET FILTER

6. PEST-CONTROL SCREEN

The Lita™ Filter Faucet with Xtract™ Filter Mode provides users with great-tasting filtered water. The faucet delivers filtered water two times faster than most conventional drinking water systems, due to its integrated design and technology. It features a three-function sprayhead, pause/stream functions, 1-3 hole configuration. It is offered in chrome and stainless steel finishes.

TuffScreen No-See-Um Screening is designed to keep out flying and crawling pests that find an opening into consumers’ homes. The densely woven, heavy-duty vinylcoated screen allows good ventilation, as well as daytime privacy. It is also effective in high-traffic areas. TuffScreen helps fight the battle against tiny, pesky bugs without sacrificing durability and visibility.

SPECTRUM BRANDS 800-732-8238 or www.pfisterfaucets.com

PHIFER 800-633-5955 or www.phifer.com

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w w w. a l l i e d m o u l d e d . c o m 222 North Union Street Bryan, OH 43506 USA Phone: 1-800-722-2679

HARDWARE RETAILING | June 2016

Dependable Products for Over a Century

8 7 7. GARDEN HOSE

8. WATER LEAK PROTECTION

The STANLEY® FATMAX® Professional Grade Water Hose is the first in a new series of watering products to feature built-in advanced technologies. The PolyFusion™ technology is a compounding process combining polyurethane and PVC, resulting in added durability. The FATMAX’s AntiKink™ technology provides elasticity to reduce kinking. The hose offers a lifetime warranty, an assortment of sizes, is scratch- and abrasion-resistant and can maintain its flexibility to -15 degrees.

The leakSMART™ water notification system stops water damage before it begins. The system detects water leaks throughout the home, shuts off water at the first sign of a leak, sends an alert with both audible and visible alarms and relays an app notification on a smart device—all in less than five seconds. With leakSMART™, water may be turned off from anywhere, providing security that a home and its contents are protected from water damage caused by leaks.

BOND MANUFACTURING 800-359-8665 or www.bondmfg.com

WAXMAN CONSUMER PRODUCTS GROUP 855-532-5768 or www.getleaksmart.com

June 2016 | HARDWARE RETAILING

New Products

9 9. MOSQUITO DETERRENT

10. THAWING PLATE

The Patio Egg is a safe and effective way to deter mosquitos and other biting insects from outdoor living spaces. The DEET-free Scents of Nature® formulation is made from natural oils and is safe around pets and humans. The unscented ceramic egg has an opening on top where a floral-scented formulation is added to travel through the Egg. Either sitting or hanging, the Patio Egg scent covers up to 300 square feet and is an effective source of mosquito protection.

Thaw That!® defrosts food on a countertop without using a power source. The eco-friendly product works by using the technology of built-in wave-patterned fins that optimize a biosafe heat transfer, which accelerates defrost speed. A concave surface design redirects liquid to a removable drip catcher. Thaw That! is constructed of aluminum material and is dishwasher-safe.

SCENT SHOP 800-527-4190 or www.scentshop.com

THAT! INVENTIONS 425-310-8195 or www.thatinventions.com

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HARDWARE RETAILING | June 2016

11 12 11. BEEKEEPING KIT

12. COOLING PET BED

Harvest Lane Honey’s signature product, the All-in-One Backyard Beekeeping Kit, has been developed to make keeping bees easy for anyone. With Harvest Lane Honey’s all-in-one kit, anyone can set up a hive for beekeeping. The Beekeeping Kit components are 100-percent painted, assembled and include outer and inner covers. The deep hive bodies have 20 preassembled frames with plastic foundation, a bottom board, entrance reducer and in-hive feeder.

The TheraCool™ Cooling Gel Pet Bed is designed to absorb and remove excess body heat for dogs and cats. It contains CoolPhase™ gel cell technology, functioning as a place for a pet to find a cool spot to rest. The Cooling Gel Pet Bed does not require water, is nontoxic, machine-washable and is offered in medium and large sizes to accommodate most pet breeds.

HARVEST LANE HONEY 435-840-0495 or www.harvestlanehoney.com

PET THERAPEUTICS 201-567-9299 or www.pettherapeutics.net

Super Nozzle When you stock and sell the LiƩle Big Shot® super nozzle, you support employment of a disabled U.S. Veteran. Our team of Veterans has been assembling this high-quality hose nozzle, made of solid brass parts manufactured in the USA, since the item was introduced in 2010.

40% Less Water Fully Adjustable

40% More Force Will Not Leak!

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K-CO Products,LLC • 30900 Rancho Viejo Rd. STE 150 • San Juan Capistrano, CA 92675 • (949) 276-5252

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WIFI ENABLED SMOKERS

13 14

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13. HAND TOOL CRIMPER The M18 FORCE LOGIC™ 600 MCM Crimper is a hand tool built to address challenges electricians face on the jobsite. The in-line design, quick connect and easy-open jaws allow the user to operate the 600 MCM Crimper with accuracy and reduced fatigue. The crimper features the industry’s first adaptive pressure control system, Predictive Force Monitoring (PFM™), which connects speed and accuracy. MILWAUKEE TOOL 800-729-3878 or www.milwaukeetool.com

14. WHEELBARROW ORGANIZER

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HARDWARE RETAILING | June 2016

The Little Burro organizational cover fits over a wheelbarrow and functions as another set of hands. This multi-use organizational tray carries two long-handled tools and has compartments for smaller tools, plants, bucket, drinks and a covered compartment for a cell phone, wallet or keys. Little Burro allows for full wheelbarrow functionality while carrying all the additional items needed to complete a project. LITTLE BURROS 540-222-9622 or www.littleburros.com

15. HOUSEHOLD SILICONE HOLDERS

16. SKIN BARRIER CREAM

Holster Brands products are silicone pockets that hold a variety of household objects. Holster products are designed with a base to hold items and a flap to grip smooth, nonporous surfaces. The products are heat-resistant up to 250 degrees; easy to place, move and clean; and designed with small holes in the bottom to allow wet objects to drain and dry.

True Effects™ Hand & Skin Shield™ is a nongreasy, nonstaining hand protectant that acts as a soothing moisturizing cream. The skin cream protects users working with wet/dry paint, tar and oil, grease, ink, adhesives and plant oils. The Hand & Skin Shield is available in a tube, a pump bottle and a wall-mount dispenser.

HOLSTER BRANDS 760-298-2914 or www.holsterbrands.com

TRUE EFFECTS 855-639-2850 or www.trueeffects.com

Checkouts MERCHANDISING

Reclaiming 100 Years of History

he Seright’s Ace Hardware store in Rathdrum, Idaho, is brand-new, but it has a little bit of the old mixed in. When the property for the new store, which now has three locations in Idaho, was purchased, there was a 100-year-old barn on the land, says co-owner Brett Seright. “We had to remove it to continue construction, but we thought it would be a waste if we didn’t re-use parts of it.” He spoke with the architect, and they decided to incorporate some of the lumber and galvanized siding into the store. Now, the outside of the store boasts a background of reclaimed wood behind the Ace logo, and some of the barn’s siding was used in the entryway, near where unused shopping carts sit. There’s more reclaimed wood behind the checkout area. “We will eventually put our store logo and core values on that wall as well,” Seright says. He says there were some extra labor costs associated with carefully dismantling the barn so parts could be reused, but that the extra price was well worth it. “It was an opportunity we didn’t want to pass up.” The siding and lumber aren’t the only older parts of the otherwise new store. The back wall of the store features old photos of the community that are from the local historical society. “We like to find different ways to show our ties to the community,” Seright says.

The reclaimed wood around the Ace logo at Seright’s Ace Hardware’s newest location is from the 100-year-old barn that was on the property. This is the business’s third location, and its first to be built from the ground up since the 1980s.

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

HARDWARE RETAILING | June 2016

Checkouts

CUSTOMER RELATIONS

A Day in Parrot-dise

ering’s Hardware in Houston has a feathered employee near the key counter, and he’s popular. His name is Chainsaw, and he’s a 27-year-old yellow-naped Amazon parrot. The bird has lived at Bering’s for more than 20 years, and he attracts all kinds of customers, but especially children. He can say “hello” and imitate a child crying, and watches the shoppers who stop to gawk. Chainsaw lives at Bering’s Bissonnet Street location, and he has a counterpart named Hacksaw at the business’s Westheimer Road store. The Bering family still owns the two stores, and the story goes that a family member owned a parrot and didn’t want to keep it at home. That parrot, Hacksaw, ended up taking residence in the store and has been there ever since. Now, both parrots serve as store attractions and good navigation points for employees who are directing customers around the store. After all, turning left when you see the green bird is more fun than turning at the key counter.

Chainsaw has lived at Bering’s for more than 20 years and is a favorite among customers.

MERCHANDISING

Sharing Spaces: A Win for Appliance Sales

hen Mitch and Angie Althoff wanted a better solution for merchandising their large appliances, they tried creative collaboration with another local business. Appliance sales and repair have traditionally been a strong category at Althoff Hardware Hank in Cannon Falls, Minnesota. This past year, as the Althoffs were working

The kitchen display combines appliances from Althoff Hardware and cabinets from another local business.

HARDWARE RETAILING | June 2016

through a complete remodel of the store, they wanted a way to reduce the number of appliances they had on the salesfloor while creating an eye-catching display. “When we did the store remodel, we looked for a way to spotlight the appliance area, so we set up an area that shows the appliances in the context of a complete kitchen,” Mitch says. “We don’t have space to stock every model of appliance we can sell, but we can encourage customers to think about what their kitchens might look like with a new appliance, then offer to special order if we don’t have what they want in stock,” he says. Mitch says he partnered with a local businessman who sells cabinets and countertops to create a model kitchen display at the back of the store. In the display, appliances are from Althoff Hardware, and the rest shows products from the other local business. A similar display is repeated in a showroom connected with the other business, complete with appliances from the Althoffs. Customers shopping there who ask about appliance sales get a referral to Althoff Hardware. When the Althoffs receive an inquiry from customers looking for new cabinets and countertops, they return the favor. For both businesses, it’s a great way to improve their displays and get their product in front of more customers.

1-800-841-9473 | phifer.com

HARDWARE RETAILING | June 2016

Stand Up, Stand Out Ways to Paws-itively Impact Your Community

t was noon on a Saturday, and crowds of people were walking shoulder-to-shoulder into Keck Hardware and Hobby with one thing on their minds—adopting a pet. Instead of answering questions about home improvement projects, store owner Tom Klaus was guiding animal shelter volunteers to areas where animals could be petted and played with, while guests walked around the store, gawking at dogs, cats, a litter of puppies and even some rabbits. Klaus started this biannual event a few years ago and even found his own dog, Anya, at the second event he hosted. Anya now has a permanent role on the Keck Hardware team and comes to work every day, which is even further proof that for Klaus, his animal adoption days are more than just events. Whether interacting with customers in his store on a typical day or during a busy pet adoption event, it’s clear Klaus is an animal lover and has found his passion. “I think, as a small business owner, having good merchandise and top-notch customer service is great, but your self image is just as important as

your inventory,” he says. “When your customers know you care about them, they’ll want to return to your business and give back.” To discover how retailers are building and nurturing these kinds of bonds with their communities, we spoke with retailers in the U.S. and Canada. Their stories may inspire you to expand your community outreach and prompt you to get more involved in your own town. The five ways the retailers we spoke with are helping others include: hosting community events for a cause, going beyond monetary donations, becoming involved in the local government, mentoring and providing internships for kids and young adults and supporting other independent businesses. “A caring store attracts like-minded customers who care about the community,” says John Locke, owner of Orillia Home Hardware Building Centre in Orillia, Ontario. “We don’t mind giving because our community gives back,” he says. “People tell us they shop here because we care.”

June 2016 | HARDWARE RETAILING

Store Events Unite the Community

ne of the best ways to connect with your community is by hosting in-store events, especially those that give back to a cause within your town. If executed well, a good event will cause a buzz among your customers and their friends who may have never heard of your business before. By hosting events like a pet adoption day or a ladies’ night, your business can help unite community members and ultimately show how much you care.

Events Make an Impression Twice a year, Klaus begins the task of reaching out to local animal shelters to participate in the Pet Adoption Day event he hosts in his Trenton, Michigan, store. He’ll call animal shelters in the surrounding area and see if they have any volunteers willing to bring in adoptable pets at a future event. Now in its eighth run, the event has grown, and the word has spread. Community members now associate

Keck Hardware and Hobby has been hosting Pet Adoption Days biannually for the past few years. Community members are always excited to come to the store and see animals looking for new homes.

HARDWARE RETAILING | June 2016

Keck Hardware with more than just its plumbing and hobby departments. They associate the store with kindhearted employees who want to help animals find a home. Each Pet Adoption Day takes extra time and effort, as Klaus begins planning about two months prior. First he reaches out to local shelters and sets up the date. Then, a week leading up to the event, he’ll call the shelters to get a head count of how many animals he can expect. This ranges from 10 to more than 20 animals, which people can come visit for about four hours. His employees help him take down key aisles in the store to make room for the extra visitors, and after the event ends, it’s time to clean up and get the store back in order. With crowds upward of 200 attendees at the past few events, most of the animals brought in have found their forever homes, and along the way, Klaus and the business have been able to raise money and awareness for local shelters. To Klaus, the events make a bigger impact than simply sending a check. “Donating money is always good, but when you actually see your time and effort come together, like a family adopt a dog or a family member who lost someone find a new pet, it’s a great feeling,” he says. “To be a part of something like that feels great, and my hope is that through word of mouth, people have a positive image of our business.” For Klaus, this event, along with a host of other events throughout the year, are wonderful opportunities to stay connected to the community and help local causes. Leading up to and during the pet adoption events, Klaus holds a charity drive, selling bags of candy for kids as well as dog and cat treats. All of the proceeds from these sales go to the shelters Keck Hardware partners with. To learn more about what Klaus does before, during and after a Pet Adoption Day event, visit TheRedT.com/PetAdoption. In this video, Klaus shares how he successfully executes the event. Then, for a basic rundown of how to plan and execute any event, visit TheRedT.com/EventGuide to print out a helpful PDF Event Guide. To read more about community events other retailers host visit, TheRedT.com/CommunityEvents.

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Looking Beyond the Typical Donation

eceiving requests for donations is a regular occurrence for many business owners. While it isn’t a bad idea to write a check to a deserving cause, this store finds ways to help beyond a monetary donation, which ultimately gets community members involved with the business and creates more customer engagement and awareness.

Providing for a Community Need “As a store, we believe no one should go hungry, especially a child,” says Locke. Stamp Out Hunger is Orillia Home Hardware Building Centre’s movement to end hunger in Orilia, Ontario. This movement includes a variety of events and store initiatives. “One thing we do is help our customers understand that our store donates money and food, but customers can also take a bag of top soil that costs $2, cut the top off the bag, stand it up anywhere, put a tomato plant in it and grow food,” Locke says. “From a simple bag of soil, you can create your own food and don’t have to go hungry or visit the food bank as often.” To help spread this knowledge, the store created an “Adopt a Tomato” program. The store buys tomato plants, gives them to customers, and the customers plant them at their homes. Once the tomatoes are ripe, a store employee visits the customer’s home, harvests the tomatoes and gives the crop to the local food bank. “The staff has fun doing it, and it gives employees a great interaction with customers,” Locke says. In addition, the store has eight 4-foot by 8-foot wooden boxes, or as Locke calls them, bunks, that the employees plant crops in. Then the local food bank sends their volunteers down to harvest the crop and take it back to the food bank. “Anywhere there is vacant land, we try to put bunks there and have people look after them,” Locke says. They are trying to get additional bunks on vacant industrial land across from the store. “What I would like to do is build 30 to 40 bunks, put them on the land and create a community garden where high school kids can come down to weed and water the crops,” he says. “Wherever there is vacant land, someone can raise food for their community; it doesn’t have to be in a backyard.”

HARDWARE RETAILING | June 2016

Orillia Home Hardware Building Centre has eight of these wooden boxes in the back of the store, where the staff grows food for the local food bank.

While this project hasn’t started yet, Locke says it will happen soon. If it doesn’t happen across from the store, they will place bunks on another piece of nearby land. Locke builds the bunks off the ground so he can easily move them within an hour.

Getting Others Involved Locke gets nearly 30 donation requests a month, both big and small. He says about 90 percent of them are fulfilled, and he does this in a variety of ways. Sometimes they are simply monetary donations, but he often tries to get the store involved beyond that. “Whenever possible, we try to involve the other party or raise the money at our store,” Locke says. For example, a church group wanted a new organ, and Locke said he would help, but requested that the group assist with the store’s yard sale. “We gave them $2,000 toward the new organ, and they got to see us, and we had fun together,” Locke says. To learn ways other retailers go beyond the donation, visit TheRedT.com/BeyondtheDonation.

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Local Leadership Positions Matter

he knowledge and expertise a business owner can bring to his or her community is invaluable. Serving as a city councilman, coaching the Little League team or joining the school board are all examples of ways retailers are become an even bigger part of their communities.

A Business Owner and Community Leader For Jared Littmann, owner of K&B True Value in Annapolis, Maryland, his passion for environmental causes and his concern for issues affecting small businesses led him to his current role as city alderman (or councilman). With a background of practicing law for seven years before working in hardware, he felt serving as alderman was a great way to help his community. “I’ve always had an interest in politics, had been an intern for a mayor, had worked in a small way on some campaigns, and my legal background has always drawn me to politics and creating good policy to improve the community and society,” Littmann says. “As alderman, I am focused on the

As an alderman in Annapolis, Maryland, Jared Littmann is able to connect with his local community, while keeping K&B True Value top of mind. Here, he talks with students about legislation he sponsored.

HARDWARE RETAILING | June 2016

business community, responsible fiscal policy, and as an advocate for environmental stewardship.” As a business owner in the alderman role, he says he has used his political position to keep his constituents, many of whom are customers, informed and to open a dialogue among the community. He strives to keep them aware of his stance on topics and often invites community members to the store for meetings, where he can answer questions and hear their thoughts or concerns. “Every two weeks, the council gets together for a city council meeting,” he says. “I started sending out an email to people who wanted to be on my email list to let them know what will be on the city agenda for the meeting and give them the opportunity to talk with me prior to a vote. My constituents have expressed appreciation for this transparency.” During his term, Littmann has worked on a number of legislation pieces, like budgeting, reducing the city bonds’ limit to borrow less money, improving school facilities and creating a forest conservation act. While a government role may not be the right path for every retailer, Littmann says his involvement has helped keep the store top of mind over the years. “Our customers, to the extent they’ve told me, seem to say positive things about my position as alderman,” Littmann says. “I represent them in a transparent manner. And K&B True Value may be even more top of mind to people since they know we’re involved in the community. It raises our profile and keeps us on consumers’ minds.” If political office doesn’t seem like a fit for you, think about your interests and hobbies to discover other ways you can contribute in your community. There are a wide variety of ways to make your voice heard, such as joining the hospital or school board—Littmann says anybody can get involved in ways that are personal to them. “I also coach my kids’ Little League team. All of those community-based activities can get your mind off of work for a few hours, allow you to contribute to the community in a variety of ways and help you meet people who appreciate your time,” he says. “Many of them are your customers, so it allows the community to see you in a very personal way and want to support your business.” To learn more how other retailers are involved in local leadership positions, visit TheRedT.com/LocalLeadership.

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Connecting with the Next Generation

ne way retailers show they care about their communities is by taking on the responsibility of mentoring, giving kids and young adults the opportunity to learn about running a business.

Store Interns Learn Life Lessons Jerry’s Paint and Hardware is a great example of a business making a true connection with kids, young adults and those who need a little extra guidance in the workforce. Co-owner Rob Ferraro is excited to help pass his wisdom and experience on to those in his community. In 2004, Jerry’s Paint and Hardware began an internship program with the College of Business at the University of Rhode Island. Ferraro hires one intern for about three months in the fall or spring. The unpaid intern works 20 hours per week. “We work with them on several different aspects of the business,” says Ferraro. “The intern shadows my day-to-day involvement with the store to see what it takes to run a business. They also spend some time with the guys on the floor, helping them check in orders, place orders and handle deliveries.” One year, Jerry’s transferred its accounts receivables program to a computer system, RockSolid, so the intern helped in that transition. “Interns do take up a lot of time during the day, but I think that both the intern and I get value from this program,” he says. “Several of them had full-time jobs with us for five to seven years after their internships finished. It was a great way for them to transition to the workplace after they graduated.”

Giving Young Adults a Second Chance In addition to the internship program, Jerry’s Paint and Hardware is involved in a government initiative called Workplace Integration for Young Adults. The participants in this program often have had some challenges in their lives, Ferraro says. “A lot of these kids didn’t have the same opportunities I did growing up, like parents who participated in their day-to-day activities,” he says. “This really benefits me personally as much as it helps the students.” There are usually two participants who work 30 hours a week for two months in the summer,

HARDWARE RETAILING | June 2016

Justin McCarthy, student at the College of Business at The University of Rhode Island, learns from Rob Ferraro, co-owner of Jerry’s Paint and Hardware, during his internship with the store.

helping price orders, assist with deliveries and put together products, such as gas grills. Since this program is sponsored by the state, participants are compensated. In addition to the time in the store, the program consists of one classroom day where participants recap the week and review progress reports, provided by Ferraro, on areas they can improve. Jerry’s is one of 10 local businesses that participate in the program, which was started by Ocean Tides, a local school. “The school reached out to us to join the program because they are our customers, and the program participants attend the school,” Ferraro says. The business has had some great individuals that have participated in the program, and some that weren’t a fit, Ferraro explains. However, he says they plan on continuing the program for years to come. To learn more about retailers who are putting a focus on mentoring younger generations, visit TheRedT.com/ConnectingGenerations.

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Independent Businesses Band Together

omCo Lumber & Hardware gives back to the Flagstaff, Arizona, community in many ways. But, the company makes a significant impact through its dedication to the shop-local movement.

Putting Local Businesses On Display Last year, HomCo started connecting the Flagstaff community with local businesses through the HomCo Home Show. At the event, HomCo hosts over 60 vendors, including contractors, landscapers and other companies the business works with, providing a venue to display their products and services. Over half of vendor participants are local businesses. While they charge a fee for vendors to participate, HomCo allows a handful of nonprofit organizations to occupy booth space for free. Christina Russo, marketing coordinator for HomCo Lumber & Hardware, says this is the company’s way of thanking businesses and organizations for supporting and bringing new customers to HomCo.

HomCo Lumber & Hardware hosts its HomCo Home Show annually, inviting local businesses and organizations to spread the word about their services and products.

“The vendors love it,” says Russo. “Not only do they like getting to know our customers better and spread awareness of their businesses, they also like to collaborate with one another and get to know and understand each other’s products and services.” This year, approximately 5,000 people were in attendance. During the six-hour event, HomCo provided free hot dogs, pizza samples and soft drinks. They also added a beer garden and invited local breweries to hand out samples. While the event brings awareness to local businesses and organizations, it also earns big donations for a local charity. In 2016, tip jars and a raffle at the event generated around $8,000 for the local Boys and Girls Club.

Joining the Movement Russo and other HomCo staff are involved in Local First Arizona, a group of local business owners who work together to further the shop-local message. As members of the group, Russo attends networking mixers with other members. She says it’s a great way to form relationships with local business owners in her area. “The members of the group have become very involved with our business and have been dedicated to helping us succeed and achieve some of our goals,” says Russo. For example, the Local First Arizona group helped her brainstorm ways to get more women in the store. “Being part of any community group or movement is automatically going to help you get more traffic through your door and get more people to know about you,” says Russo. “Anything we do at HomCo is based around building relationships with other businesses and with customers.” For Russo, supporting a local movement also means participating in a referral pool that helps all businesses involved grow their customer base. “As local businesses, we have to support one another so we can all keep growing and thriving,” says Russo. For more examples from retailers who support independent businesses in their communities, visit TheRedT.com/LocalBusinesses.

Hardware Retailing staffers Renee Changnon, Hilary Welter and Sara Logel contributed to this article.

HARDWARE RETAILING | June 2016

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HARDWARE RETAILING | June 2016

By Jesse Carleton, jcarleton@nrha.org

There’s a lot going on these days in the farm, pet and ranch category. Make sure you’re in on the action with the niches attracting the most attention.

hether it’s backyard farming or extravagant spending on pets, what used to be seen as “emerging consumer trends” now have mainstream appeal across customer segments and markets. Now is the time to give the farm, pet and ranch category a second look if you haven’t considered it for a while. If you want to get started, we have ideas to help. On the following pages, we’ll share how retailers are selling the hottest niches in this category and creating a buzz in their markets.

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Niches We’ll Cover: 50 Backyard Poultry It’s easy to help customers get started learning how to raise and care for chickens. 52 Pet Products Add pet services to the list of items you can offer to those shopping for pet goods. 54 Beekeeping Take the mystery out of beekeeping and create a new customer base. 56 Wild Bird Food Use this as a promotional item to drive customers to other parts of your store.

June 2016 | HARDWARE RETAILING

JOIN THE CHICKEN CLUB Cypress Ace Hardware & Feed is in suburban Houston, and sales of live chicks and supplies have tripled in the past six years. It’s an indication that urban and suburban homeowners represent prime markets for backyard poultry farming. The key to success lies in showing would-be farmers how easy it is to get started.

Create a Demand, Then Answer It When Susan Murff, who owns Cypress Ace Hardware with her husband Bill, started selling chicks, their customers had a lot of questions. “We started by raising awareness. One of the biggest surprises we had was that people were asking what they were supposed to do with chickens in the backyard,” she says. “Many of them didn’t know you could raise chickens for eggs and meat.” Once customers understood the many benefits of raising chickens, they quickly began to embrace it. Many of those same customers who knew nothing about chickens now have a backyard flock and are in the store every couple of weeks to buy feed. Murff may sell as many as 2,000 chicks in one spring. Raising chickens is easy, she says, but potential chicken farmers need a lot of education. The store’s chick day events, when she brings out the baby chickens to the front of the store, is about

education first and sales second. She created an information sheet for interested customers that covers everything from supplies needed to a reminder to check with the neighborhood association to see if it permits chicken farming. Employees are educated on raising chickens in the spring before the chicks arrive. “I train them as if they were getting a bird to take home and raise,” she says. “Whenever someone is looking at the live chicks, there is always an employee there talking to them, offering advice and answering questions.”

Sell Responsibly Murff sells baby chickens for about six weeks in the spring, except for the week before Easter. “We avoid selling them as pets,” she says. “We don’t want them ending up in someone’s Easter basket just because they think the chicks are cute.” Chickens are not pets or impulse purchases, but farm animals and must be cared for accordingly, she says. Those who would have them as pets often don’t understand how to take care of them, and that usually ends up being harmful to the animal. Part of the training she gives her employees is to be aware of the motivation behind those interested in buying chickens and to be very proactive in educating them. “I’m more concerned with the health and welfare of the birds than I am with just selling them,” she says. Some customers might have the best intentions, but sometimes they just are not able to manage raising chickens. Included on her instruction sheet for caring for new chicks is a phone number of a local farmer that will take chicks and chickens people are no longer able to keep.

Create a Selling Strategy

Employees at Cypress Ace make sure every customer interested in chicken farming understands how to care for the animals.

HARDWARE RETAILING | June 2016

If you’ve decided to sell chickens for the first time, Murff suggests a buy-one-get-one free approach to every sale. “Chickens are flock animals,” she says. “They’re healthier and happier in a group, so we price them so customers don’t take home just one.” Margins on the sale of a chick will be low, but first-time chicken farmers can easily spend more than $100 on all of the necessary (higher margin) add-on sales, such as a heat lamp, bedding and feeder. Then, those customers must make frequent return visits to pick up feed, which opens opportunities for sales of other non-related items. Chicken farmers also need fencing and material to build a chicken coop. While she stocks some coops as kits, Murff says some customers want more options, so she refers them to www.backyardchickens.com to find a pattern for the coop they’d like. Then she helps them find all of the materials they need to build it.

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PAMPERING PETS Lauren Bohnert, co-manager at Brandywine Ace, Pet and Farm in West Chester, Pennsylvania, differentiates her pet department with pet services and a staff that knows nearly as much about the dog walking into the store as they do the person behind it.

Offer Pet Services According to the American Pet Products Association (APPA), overall spending in the pet category for 2015 surpassed $60 billion, the highest in history. Spending on pet services, such as grooming and training, more than tripled the growth percentage of any other category from 2014 to 2015. Bohnert is riding that trend by offering a variety of special events and classes targeted directly at pet owners. One of the most popular is a pet-grooming service. Twice a month, Bohnert invites a local groomer into the store for a couple of hours. Dogs can get their nails trimmed and ears cleaned for $20 and customers who get their dogs groomed at the store also get a 20-percent discount on any pet accessory purchased that day. “We typically get 10 to 20 dogs for the two-hour window the groomer is here,” she says. “It’s a way for the groomer to grow her business, and it also gets new customers into the store.”

Other events include a dog first aid and CPR class, and a six-week obedience class, held several times throughout the year. That class is taught by a local trainer and usually sells out.

Other events include a dog first aid and CPR class, and a six-week obedience class, held several times throughout the year. That class is taught by a local trainer and usually sells out. Bohnert also gives pet owners a chance to have fun with their pets. Two popular events are the Doggie Ice Cream days, where both dog and owner get a free ice cream cone; and the dog food sampler days, where Bohnert sets up a buffet of new dog treats and lets doggie customers sample them.

Upsell to Premium Pet Food Pet food is what drives repeat traffic to this department, so Bohnert goes in deep. She stocks a wide variety of pet foods, ranging from discount to high-end, and including all the major brands. While she has a lot of competition for pet food in the area, she competes with a frequent buyer program, which offers a free bag of food after a certain number of purchases. Bohnert also price matches on some of the lines of food. While she sells all levels of food quality, premium foods continue to be her favorite for a simple reason: smaller packages. “Smaller food packages mean the customers are in the store more often and give me more opportunities to sell them something else,” she says. In the food category, today’s trend is towards grain-free and natural foods, but a few years ago, this may have been considered a premium category that only a small group of shoppers could afford. “There are a lot of affordable grain-free lines out there, so it’s important to educate the consumer about that,” she says. She merchandises the more affordable grain-free brands next to the standard discount brands so it’s easy for employees to show customers that there is only a small price difference between the two.

Define Customer Service with Training and Enthusiasm

Educational events involving people and their dogs at Brandywine Ace, Pet and Farm usually fill up quickly.

HARDWARE RETAILING | June 2016

In addition to hosting special events and special services for pets, Bohnert says the biggest differentiator between her and her competition is her enthusiastic employees. “We try to know all of our customers’ pets’ names and build a relationship with not just our customers, but also their pets,” she says. To get that level of customer service, ongoing training is mandatory for those employees focused on the store’s 3,000-square-foot pet department. After orientation, employees get an average of four hours of training each month, whether it’s from vendorspecific training webinars or from store meetings. “Enthusiasm sells,” she says. “So we believe it’s critical to have sales associates who are passionate about pets and selling this category.”

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THE BEE’S KNEES Whether it’s because there is an increasing awareness of the importance of honeybees in a healthy ecosystem or consumers’ desire to produce their own honey, more people are turning to beekeeping as a hobby. It is showing up in both urban and rural areas. Selling this niche requires only a few feet of shelf space, but you will want to emphasize education.

Introduce the Category with Classes When Lynn Jones, the lawn and garden manager at Sawyer True Value in The Dalles, Oregon, asked about bringing in a few beekeeping items, store owner Jared Sawyer had one requirement. “He said we can try it if you’ll teach some classes,” she says. “Having a beekeeping class for your customers is important, because raising bees is a lot more complicated than raising a cat or dog. Customers have a lot of questions about this category, and a class is a great way to get them started.” The store began carrying an assortment of beekeeping items late last year, and in January, Jones offered her first class. Given the season, she thought it might be an opportune time to promote another category, wild bird feeding. The result: The Birds

HARDWARE RETAILING | June 2016

and the Beekeeper class. “People who like one seem to like the other,” she says. “We talked about how to feed wild birds in the winter and spring, and then launched into basic beekeeping.” Jones’ classes were valuable not only for prospective beekeepers, but also employees. “I was amazed at how much interest there was among our team members,” she says. She hopes that enthusiasm will spread to customers, especially those who have an interest in beekeeping but don’t think they have the space in their yards. “It’s important for employees to have a basic understanding of how a hive setup works, because they can explain that to people who don’t think they can raise bees in a small yard.”

Consider Selling Live Bees Jones is a hobbyist beekeeper, so she drew on her own personal experience as well as that of other local beekeepers to figure out what products would be best for those starting up a new beehive. She also discovered that she could sell pieces for repairing existing hives to already established beekeepers. But what she hopes will differentiate her from others in the area selling beekeeping supplies is offering customers a place to order their bees.

“As I did my research into selling this category, I discovered we could easily get the bees here for people and offer a complete package for those wanting to get started in beekeeping,” she says. Timing is important when selling live bees. They have to be ordered several months in advance with a delivery in the spring. Jones had interested customers sign up and only ordered enough for those customers. It’s not just the beginning beekeeper who might want to order bees, either. Oftentimes, beekeepers will want to add a hive to their existing bee population, or they may lose their bees due to weather or disease.

“I started developing a list of flowers that bees like after I had some customers asking which types of flowers to plant,” says Jones, who is also a certified Master Gardener. “I’m planning to bring in those flowers and show customers which ones are best to help bees.” One way to make it easy for customers to find those products is to have a list of flowers handy or have “bee-friendly” signs to stick in flower pots.

Promote Bee-Friendly Flowers Beekeepers understand the importance of having flowers where bees can gather pollen for making honey, so many of them want to create yards and gardens that are conducive to pollen gathering. There are other customers, says Jones, who may not be interested in beekeeping as a hobby, but who understand the importance of bees to the environment and want to contribute in some way. Showing these customers the types of flowers bees like to pollinate is a great way to cross-promote categories in your store, something Jones plans to do this summer with the store’s outside garden area.

Lynn Jones, along with owner Jared Sawyer, started selling beekeeping supplies late last year.

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GIVING A LIFT TO BIRD FOOD SALES

Use Bird Food to Build Repeat Traffic

Compared to other trends, wild bird food is a fairly simple category. Shoppers need a birdhouse and some bird feed. That’s all Matthew Henery, who operates five Henery Do it Best stores in the state of Washington, needs to make this category a traffic driver, getting those bird-food customers into the rest of his store.

“Bird feeding is a fun hobby for people that has grown over the past 10 years,” says Henery. He dedicates about 80 feet of aisle space to bird feed and feeders. In some of his other store locations, he has pallets and dump bins filled with bird feed and seed. In his regular circulars, he typically has a couple of pages dedicated to bird food sales. Mass displays and low prices give shoppers a loud and clear message: Henery Do it Best has the best prices on bird feed. Continually advertising the product in his circulars gives him a way to draw in repeat customers, who he hopes will shop other areas of the store. “Bird food is a consumable, and we want to pass on the best price to our customers,” he says. “We sell about 1,500 suet cakes a month from our dump bins, and we have two or three pallets of bird food throughout the store on a sale price. That’s the key to success in a consumable product like this— having a mass quantity at a good price.”

Focus on Variety with Birdfeeders In addition to its place on the shelf, wild bird feed is a good fit for power aisle and dump bin displays.

Where volume and low price might drive shoppers to buy bird food, variety will drive them to pick up a birdfeeder. Henery starts with an

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impressive display. In addition to the feeders on the shelves, he created a cloud display with hanging feeders over the birding department to maximize his space and draw shoppers into the aisle. Bird feeders are not just functional, they’re also fashionable. They will be integrated into the design of your customers’ yards, so consumers will look for items that are colorful and unique. They don’t necessarily want the same feeder as their neighbor, either. You can distinguish your bird feeder line by seeking out new designs at trade shows and in vendor catalogs. Then, rotate in new items so your stock doesn’t get stale. One way Henery brings in unique products is through partnerships with local vendors. “We have some local craftsmen who make their own wooden bird feeders and houses,” he says. “They are popular with our customers who like to buy locally made items.”

Create a Community of Enthusiasts People who feed birds usually like to watch them, too, and those bird watchers love to swap stories. If you want to create customer loyalty in this category, make your store a community hub for bird-watching enthusiasts.

One way to start is by creating a bird watching bulletin board in the store, where you ask customers to post photos of the most unusual birds they’ve spotted. Also encourage them to post those bird sightings on your store’s social media outlets, and if the following is great enough, set up a separate social media presence dedicated to bird lovers. Since bird watchers also seek out those with like-minded interests, see if your area has bird watcher’s clubs or an Audubon Society chapter and offer them space to have their regular meetings in your store. Then ask them to host classes on bird watching or bird feeding in your store. Diversify your product mix by stocking a few bird watching books and binoculars. Many bird enthusiasts also realize the importance of having the proper plants and shrubs that attract birds. Connect with your local Audubon Society chapter to find out how homeowners can make their lawns birdfriendly. Usually, it’s as simple as using plants native to your area. You can cross-promote birdwatching in the lawn and garden department or greenhouse by labeling those plants that make for a bird-friendly yard.

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Don’t Miss Out! The deadline for the Fall 2016 session is July 31! These companies are supporting your success as an independent retailer by providing scholarships.

A Major Confidence Boost Whether you are just beginning your career in home improvement retailing or you are looking to prepare the next generation of leaders within your organization to take on more responsibility, NRHA is here to help. NRHA’s Retail Management Certification Program provides up-and-coming retail leaders with the skills they need to gain confidence in strategic planning, decision-making and leadership activities. The program offers students: • An industry-focused education • Small class sizes • Ongoing networking opportunities • Mentoring from college professors and leading industry experts • Guidance and support developing ROI-focused business improvement projects • A flexible six-month course with the adult learner in mind • Three in-person visits for hands-on learning

Watch a video of NRHA’s Retail Management Certification Program’s recent graduates explaining the value they see in this program at nrharmcp.com/testimonials.

Contact Scott Wright at 317-275-9417 or swright@nrha.org. Visit www.nrharmcp.com.

Newsmakers

Retailer Collects Goods for Victims of Ecuador Earthquake

Upcoming Events June 16-18 House-Hasson Summerfest Dealer Market Sevierville, Tennessee

17-19 United Hardware Buying Market Minneapolis

July 28-30 World and Main Fall Market Houston

August 18-20 Wilson Bastidas, owner of Chalmette True Value in Chalmette, Louisiana, has been gathering goods to send to Ecuador to help those recovering from the recent earthquake.

hen Wilson Bastidas heard that a 7.8 magnitude earthquake struck his home country of Ecuador on April 16, he was immediately ready to do what he could to help friends and family members who were affected. After about three hours of trying to get through to his father back home, he finally got his dad on the phone and learned his story of the destruction caused by the earthquake in the South American country. As the owner of Chalmette True Value in Chalmette, Louisiana, Bastidas wanted to do whatever he and his business could to help the people recover. Bastidas’ community could relate to the struggles in Ecuador because of the destruction they saw from Hurricane Katrina in 2005. “Those in Ecuador had no water, no electricity—we went through it here after Hurricane Katrina, so I knew people were in need of many goods,” Bastidas says. After speaking with his brother-in-law, who serves in the Ecuadorian Navy, Bastidas asked what he could do through his business to help people suffering after the quake. He was asked to send many items that a hardware store would have on hand. “He told me I could help by sending the things they really needed, like trash bags, gloves, cleaning items, boots and more,” he says. After getting a list of items that could help back in Ecuador, Bastidas decided to ask his customers for any support they could provide to help the cause. “I put up a sign in the store about what I was trying to send to Ecuador,” Bastidas says. “With help from the town sheriff, who is a frequent customer, the entire community learned about what I was trying to do, and the support has been great.” As word spread, Bastidas has been able to collect many items off the list—a total of about $10,000 so far in supplies, he says. With financial donations, they bought more items that would be necessary to help with the cleanup and aftermath of the earthquake. He is still collecting more goods and will ship them to Ecuador in a few weeks. “Chalmette is a very small community but is very loyal,” he says. “We try to help out the community wherever we can, and they do the same for us.”

HARDWARE RETAILING | June 2016

Ace Hardware Fall 2016 Convention & Exhibits Chicago

25-27 Orgill, Inc. Fall Dealer Market Las Vegas

September 16-17 Blish-Mize 2016 Fall Market Overland Park, Kansas

16-18 True Value Fall Reunion Denver

18-20 Home Hardware Fall Dealer Market St. Jacobs, Ontario

October 7-10 Do it Best Fall Market Indianapolis

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.

Grow Where It Counts: Loyalty, Wallet Share, And Margins Retailers that thrive today fnd more ways to serve more customers. Epicor retail software solutions, linked seamlessly with your business management system, leverage built-in retail best practices to optimize inventory, POS, and other essential retail activities. With Epicor, your retail business grows customer loyalty, wallet share, and margins. epicor.com/retail | eagle@epicor.com | 1.888.463.4700

Copyright ©2016 Epicor Software Corporation. All rights reserved. Epicor, the Epicor logo, and Grow Business, Not Software are registered trademark or trademarks of Epicor Software Corporation in the United States and certain other countries.

Newsmakers

National Hardware Show® Is Big on New Products, Ideas

he National Hardware Show® is an annual launching pad for new products, making the event a draw for everyone ranging from owners of small, one-store retail operations to major manufacturers. The 2016 Show was no different. The event, which was in May in Las Vegas, provided opportunities for inventors to get feedback on what they’re making, manufacturers to pitch new ideas, wholesalers to keep track of what’s trending and retailers to find new items to sell in their stores. Greg Schlecht, owner of Greg’s True Value in St. Francis, Wisconsin, attended the 2016 Show on the lookout for fresh ideas, he says. “I’m just here to look, (to) keep an open mind,” he says. And Tracy Brooks with Defender Key Fob of Bartonville, Texas, was launching a new product and hoping to find retailer buyers for the item, which is a pin-activated remote garage door opener. “If you’re going to launch a product, this is where you want to be,” Brooks says. For more a more detailed look at the 2016 Show, visit www.nationalhardwareshow.com. The 2017 National Hardware Show is slated for May 9-11.

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HARDWARE RETAILING | June 2016

8 8 8 - 8 9 8 -7 8 3 4 w w w. i t a p e .c o m | i n f o @ i t a p e .c o m

Do it Best Member Opening First Store in Saudi Arabia Attken Do it Center was slated to open in May, becoming the first Do it Best member in Saudi Arabia. TheRedT.com/DIB-SaudiArabia

business owners’ minds. But increases– even up to a $15 base wage–aren’t cause for intense anxiety, says retailer Gina Schaefer, who owns 11 Ace Hardware stores. TheRedT.com/minimum-wage

Professional Skills Gap Hurts Housing Market

Lowe’s and the Future of Sears’ Appliance Business

The housing market has been recovering, but reasons for the increase in the price of homes aren’t all good. A growing shortage of skilled homebuilders and construction workers is delaying building projects, shrinking building inventories and inflating the cost of homes and home-related projects. TheRedT.com/skills-gap

Financial news has continued to be bad for Sears Holdings. The company is closing 78 unprofitable stores and its clothing design office in New York City this year in efforts to improve its bottom line. The company is still the favorite seller of appliances in the U.S., but if it fails, Lowe’s might replace it as consumers’ top choice. TheRedT.com/sears-appliance

Retailer: ‘Don’t Panic; Plan’ for Minimum Wage Hikes Since California and New York approved minimum wage increases in April, minimum wage is fresh on

Sears Experts Help Promote Lawn and Garden Sales To promote its lawn and garden offering, Sears has expanded its

Meet With An Expert service to help shoppers make more informed outdoor equipment purchases. TheRedT.com/sears-lawngarden

Menards Violates Labor Laws, Says NLRB The National Labor Relations Board says Menards violated federal labor laws in the way it treated employees. The federal agency won’t take action against Menards because the company changed the policies in question. TheRedT.com/menards-labor-laws

Amazon Dash and Even More Automated Shopping A tool from Amazon called Amazon Dash has given consumers the chance to restock consumable products with the push of a button—and customers’ options for using the Dash buttons are growing. TheRedT.com/amazon-dash

June 2016 | HARDWARE RETAILING

Newsmakers

Top Executive Change for World and Main National distributor World and Main has made a corporate leadership change. Don Devine, former president and CEO, has left the Cranbury, New Jersey, company, and Bruce Fisher is now interim CEO. TheRedT.com/world-main-exec

MasterCard Offering Payment Security Alternatives MasterCard is working to increase digital payment security measures, rolling out plans to replace passwords with facial identification. TheRedT.com/mastercard-tech

Deerfield Beach, Coral Springs and Fort Lauderdale. TheRedT.com/OSH-Florida

CANADA Castle Building Centres Group Sees Growth in Atlantic Market With two recent additions to its dealer network in Atlantic Canada, Castle Building Centres Group sees the region as a good one for growth. Bruce Holman, director of business development for Castle, says Castle is strong in Atlantic markets—especially in Newfoundland and Labrador.

Home Hardware Grows in Quebec Lowe’s Orchard Supply Chain to Expand in Florida Lowe’s is taking its Orchard Supply Hardware chain to Southern Florida, with stores in the works for

As Home Hardware continues seeking to raise its profile in Quebec, it has welcomed its newest member in the country’s second-largest home improvement market. Quincaillerie Gerard-Raymond has served the community of Pierrefonds on the

West Island of Montreal for the past 40 years under the RONA banner.

RONA Takeover Inches Closer to Finalization Lowe’s bid to acquire RONA cleared another hurdle as the Superior Court of Quebec issued a judgment to greenlight the deal under the provincial Business Corporations Act. The future of the proposal rests with the federal Competition Bureau and the Investment Canada agency.

Home Hardware Recognized for Good Management Home Hardware Stores has again been named among Canada’s Best Managed Companies, an accolade the company has retained annually since first receiving the distinction in 2012. For the full story of each of these briefs, visit www.hardlines.ca/hardwareretailing.

AD INDEX

Ajax Wire Specialty Co.............................................56 www.ajaxwire.com; 855-966-2529

Envirocare ................................................................54 www.moldexbrands.com; 877-463-2628

NRHA RMCP .........................................................58-59 www.nrharmcp.com; 317-275-9417

Allied Moulded Products Inc. .....................................26 www.alliedmoulded.com; 800-722-2679

Epicor Software Corp. ............................................7, 61 www.epicor.com; 888-463-4700

Old Masters .............................................................31 www.myoldmasters.com; 800-747-3436

Apex Tool Group ........................................................5 www.apextoolgroup.com; 410-773-7800

Franklin Electric ..........................................................17 www.redlionproducts.com; 844-250-4981

Orgill Inc. .......................................................... 68-IBC www.orgill.com; 800-347-2860

Benjamin Moore & Co. ..............................................9 www.benjaminmoore.com; 855-724-6802

Gojo Industries Inc. ..................................................28 www.GOJO.com; 800-321-9647

Pacer Pumps ............................................................56 www.pacerpumps.com; 717-925-8240

Bonide ........................................................................24 www.bonide.com; 315-736-8231

Home Products International......................................27 www.homzproducts.com; 800-457-9881

Paladin Data Corporation..........................................33 www.paladinpointofsale.com; 800-725-2346

Century Drill & Tool Co. .......................................... BC www.centurydrill.com; 800-621-4776

HSI ...........................................................................41 www.hardwaresuppliers.com; 800-334-5625

Phifer Inc. ...................................................................35 www.phifer.com; 800-841-9473

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

Independent Garden Center Show ............................11 www.igcshow.com

PRO Hardware ...........................................................43 www.prohardware.com; 303-792-3000

Char-Broil ....................................................................30 www.charbroil.com; 866-239-6777

IPG ..............................................................................62 www.itape.com; 888-898-7834

Sears Hometown Store ...........................................16 www.ownasearsstore.com

Coast Products Inc. ....................................................53 www.coastportland.com; 800-426-5858

K-CO Products, LLC ...................................................29 www.kco-products.com; 949-276-5252

Sunnyside Corporation .............................................25 www.sunnysidecorp.com; 800-323-8611

Cole’s Wild Bird Products Co...................................51 www.coleswildbird.com; 877-426-8882

Master Magnetics Inc. ...............................................55 www.magnetsource.com; 888-293-9190

Top Notch Distributors Inc. ......................................13 www.topnotchinc.com; 800-233-4210

Darex .......................................................................19 www.darex.com; 800-597-6170

MFM Building Products Corp. ....................................45 www.mfmbp.com; 800-882-7663

True Value Company ................................................15 www.truevaluecompany.com; 888-291-7229

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

Midwest Fastener ...............................................20-21 www.fastenerconnection.com; 800-444-7313

Vision Grills .................................................................57 www.visiongrills.com; 877-917-4273

Duckback ....................................................................63 www.superdeck.com; 800-825-5382

MTD Products Inc. .........................................................IFC www.troybilt.com; 800-828-5500

Wooster Brush Co. .....................................................39 www.woosterbrush.com; 800-392-7246

Dutton-Lainson Company ...........................................26 www.dutton-lainson.com; 402-462-4141

NRHA CODB ............................................................... 65 www.TheRedT.com/CODB2016

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

ECI Software Solutions ..............................................47 www.ecisolutions.com; 800-588-5128

NRHA Health Insurance .............................................. 67 www.cbigi.com; 888-201-7408

HARDWARE RETAILING | June 2016

Want To Find Out How Your Business Stacks Up? Check Your Numbers.

Free Financial Analysis

Make Smart Decisions

Support the Industry

If you participate in this year’s study, you will receive a free, robust Personalized Financial Analysis that only study participants receive!

How is your business performing compared to others? Use the Cost of Doing Business Study to benchmark your business and find out.

Participate in the annual Cost of Doing Business Study to help improve your business and the overall home improvement industry.

Be a part of the 2016 Cost of Doing Business Study. Visit TheRedT.com/CODB2016.

Last Word

Cats and Dogs and Roosters, Oh My!

ets are for more than homes. Many retailers have adopted a store pet (or two), and the response from their customers is phenomenal.

Retailers’ furry (and feathered) friends do a great job at connecting with customers. At many of these businesses, customers may make a return trip without a shopping list in hand just to see the store pet.

After you’ve read about the pets below, visit TheRedT.com/rooster-george to learn more about Gecko Hardware’s store rooster, George.

Nails

Anya

George

Vickery Hardware’s Charmer

The Keck Hardware Greeter

Gecko Hardware’s Prince

“We have customers who will

come to the store just to see Nails, our cat. We have had cats in the hardware store for years. Before having a cat in the store, I would have never believed people would take time out of their day to stop and see the cat, but they do. When they come in, they end up shopping, too. Having Nails in the store humanizes Vickery Hardware. You’re not going to find a pet at a big-box store. Susan Harlan Vickery Hardware, Smyrna, Georgia

”

In addition to Anya, the resident store pet at Keck Hardware (featured on the cover and below), there are other store pets that have won over customers and made lasting impressions on their communities.

HARDWARE RETAILING | June 2016

“Anya is a boxer, pit bull

mix and she is just the most amazing dog. She’s not aggressive, loves animals and children and is always such a great greeter to our customers. She is very well-behaved and will not step out the front door unless I give her the OK. Having her in the store makes our customers happy. Tom Klaus Keck Hardware, Trenton, Michigan

”

“Before Gecko Hardware

opened, a family had bought baby chicks and named one Queen Elizabeth. When the bird was three months old, it turned out ‘she’ was a ‘he,’ and that is when George (named after Prince George) was brought to our store by his first owner, Abbi. He has been at the store since then and has become a bit of a mascot. He is the biggest draw to business I’ve ever seen, and I’ve owned businesses for over 33 years. Andrea Ridout Gecko Hardware, Dallas, Texas

”

To learn more, please contact Bob Chiesa at 888-201-7408 or cbigi@msn.com.

“We’re developing our name around being strong and independent, and Orgill gets that.” —Scott Ward, CFO and co-owner of Fix & Feed Hardware, with three locations in northeast Texas l An Orgill customer since 2006

‘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

“Orgill continues to be a good partner, and that’s what

takes care of us. No matter what we’ve needed from

we’re looking for—a partner that has product in stock and

Orgill, their support has always remained consistent.”

is 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

care of daily, so I feel good knowing Orgill can help us handle

Orgill is so easy to work with. They support us while

other items, such as merchandising and pricing analysis.”

giving us space and helping us continue to grow.”

For more information about Profit-driven Solutions, call us today!

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

Worldwide Distribution & Retail Services

GIVE YOUR CUSTOMERS WHAT THEY WANT. BETTER QUALITY

Century’s higher product standards have proven results. We have the highest customer loyalty rating (72%) versus leading competitors (55% - 58%).

MORE MADE IN THE U.S.A.

63% of consumers want made in the U.S.A. products. 40% of Century’s products are made in the U.S.A.

POWER TOOL ACCESSORIES. ABRASIVES. THREADING. HAND TOOLS. Schedule an appointment today to learn how we can improve your quality, margins and service rates.

INDUSTRIAL QUALITY SINCE 1940

CALL 1-800-621-4776 • EMAIL CENTURY@CENTURYDRILL.COM • VISIT WWW.CENTURYDRILL.COM