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Jackpot! Caribou Jack’s Trading Co. Hits It Big In Vegas 60 VOLUME 212 • ISSUE 6 • JUNE 2017 • HARDWARERETAILING.COM

What Are Urban Retailers Doing That You Aren’t? 34 Stay On Top of Decorative Plumbing Trends 50

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HIGH-PROFIT VS. TYPICAL STORE

9.2% 3.8% NET PROFIT BEFORE TAXES AT HIGH-PROFIT STORES

NET PROFIT BEFORE TAXES AT TYPICAL STORES

INCREASING TRANSACTION SIZE 123

At a high-profit store, the average transaction size is $23, while the average at a typical hardware store is $21. If you participated in NRHA’s Cost of Doing Business Study, you would know that higher transaction size is one of the key profit variables driving bottom-line results for home improvement retailers. Do you know how your business compares in this and other key areas? Everyone who takes part in the 2017 CODB will receive a free Personalized Financial Analysis.

JOIN 1,000+ RETAILERS PARTICIPATE IN NRHA’S COST OF DOING BUSINESS STUDY TODAY!

Jackpot! Caribou Jack’s Trading Co. Hits It Big In Vegas 60 VOLUME 212 • ISSUE 6 • JUNE 2017 • HARDWARERETAILING.COM

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These Retailers Are the Future

nother group of high-achieving young retailers will grace the pages of Hardware Retailing next month, when we recognize the 2017 Young Retailer of the Year honorees. These eight retailers have opened new stores, expanded existing locations, increased sales and enhanced the customer experience—and they’re all 35 years old or younger. Read about their successes

and find out how they approach challenges as they continue innovating the world of independent home improvement retailing. Also in this issue, we introduce the pros’ edition of the Home Sweet Home Study, which NRHA conducted with Independent We Stand. The study highlights the benefits to local communities when pros shop small in the places where they live and work.

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Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

Here Are 3 More Ways to Engage With NRHA in 2017 If we missed you in the NRHA Village at the NRHA All-Industry Conference, we look forward to seeing you at other industry events and online this year!

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton FEATURES EDITOR Liz Lichtenberger

136 N. Delaware St. #200 Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: nrha.org HEADQUARTERS STAFF PRESIDENT AND CEO Bill Lee COO Bob Cutter DIRECTOR OF FINANCE AND BUSINESS SERVICES David Gowan

ASSISTANT EDITOR Renee Changnon ASSISTANT EDITOR Kate Klein ASSISTANT EDITOR Melanie Moul ASSISTANT EDITOR Chad Husted SENIOR DESIGNER Lynnea Chom GRAPHIC DESIGNER Graeme Haase GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan

MEMBER SERVICES TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org MEMBER SERVICES AND COMMUNICATIONS COORDINATOR Hilary Welter, 317-275-9435, hwelter@nrha.org MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9419, kstokes@nrha.org MEMBER GROWTH AND DEVELOPMENT MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

PRODUCTION MANAGER Nancy A. Vondersaar SALES AND PRODUCTION ASSISTANT Freda Creech

CIRCULATION CIRCULATION DIRECTOR Richard Jarrett

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

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

SALES/NRHA VENDOR PARTNER

NRHA CANADA NRHA CANADA Michael McLarney, 528 Queen St. E., Toronto, Ontario, Canada M5A 1V2; +1 416-489-3396, mike@hardlines.ca

STATE AND REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 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; AK, ID, OR, WA SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; AR, KS, LA, MO, NE, NM, TX

NATIONAL SALES MANAGER Lowell Huffman MIDWEST REGION MANAGER Tony Sarantakis, 404 Afton Circle, Barrington, IL 60010; 847-934-9515, Fax: 847-934-2494, tonytakis@aol.com WEST/MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 847-934-2494, cmiller7288@gmail.com NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9414, Fax: 317-275-9403, jharper@nrha.org GREAT LAKES REGION MANAGER Bill Mancuso, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9424, Fax: 317-275-9403, bmancuso@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org WEST REGION MANAGER Tyler Norris, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, tnorris@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

Through NRHA Programs NRHA’s Retail Leadership Institute provides educational opportunities to retailers.

That’s not everything! Throughout the year, NRHA connects with retailers all over North America in their stores, in the pages of this magazine and through association resources, like the NRHA newsletter. Visit TheRedT.com/subscribe to receive news and updates. NRHA MISSION

The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Megan Menzer, Newton’s True Value, Cherryvale, Kansas EXECUTIVE VICE CHAIRMAN T.J. Comstock, Northwest Hardware, LLC, Billings, Montana DIRECTOR Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTOR Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois DIRECTOR Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts DIRECTOR Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina DIRECTOR David Dishke, Grand River Home Hardware, Caledonia, Ontario

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

DIRECTOR Steve Fusek, Fusek’s True Value, Indianapolis

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

SECRETARY-TREASURER Bill Lee, NRHA President and CEO

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2017 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.

In Likes and Mentions Give us a shout on social media to tell us which events you are attending this year.

PRODUCTION SERVICES

RETAIL LEADERSHIP INSTITUTE

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

1 2 3

At Wholesaler Events NRHA encourages retailers to engage with their wholesalers and their association.

HARDWARE RETAILING | June 2017

IMMEDIATE PAST CHAIRMAN James Cabirac, Kief Hardware, Cut Off, Louisiana

Contents JUNE 2017 | VOLUME 212 | ISSUE 6

OPERATIONS

Retailing in the City

See how independent retailers in urban neighborhoods differentiate and find success despite expensive rent, high staff wages and small salesfloors. In addition, discover the similarities they share with retailers who serve suburban and rural communities.

60 INDUSTRY EVENT

Dreams Do Come True Caribou Jack’s Trading Co. was named the winner of the first Reimagine Retail program, awarded at this year’s National Hardware Show®. Find out more about the business and how owner Robert Lau plans to use the $100,000 prize to invest in the store.

Departments

48 MARKETING

Standing Out in Inboxes If you have been considering starting an email marketing campaign or are looking for ways to improve your current process, check out these tips for managing email e-blasts. Learn how to spice up your messages, prevent them from being marked as spam and much more.

50 CATEGORY SPOTLIGHT

Decorate With Plumbing Just like any other home decor segment, the decorative plumbing market sees trends come and go. Find out from interior designers what the hottest trends are in this category and how you can be a resource for your customers looking for a refresh or a renovation. 4

HARDWARE RETAILING | June 2017

06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 12 . . . . . . . . . . . . . . . . NRHA News 16 . . . . . . . . . . . . . . . . . . . . . Trends 20 . . . New Products by Industry Edge 28 . . . . . . . . . . . . . . . . . . Checkouts 66 . . . . . . . . .Newsmakers/Calendar 70 . . . . . . . . . . . . . . . . . . Last Word

On the Cover Robert Lau, owner of Caribou Jack’s Trading Co. in Soda Springs, Idaho, received $100,000 at the National Hardware Show® as the winner of the Reimagine Retail program . NRHA photo by Whitney Daulton

Knives that work hard. Just like you. New WKF2 Folding Utility Knife

• Ergonomically-designed dual-material grip • Solid die-cast zinc body • Quick-change blade system Comes with 11 black oxide blades, including two stored in the handle MORE HARD-WORKING KNIVES FROM WISS WKFP1 Folding Pocket Knife — Loaded with features for maximum cutting capability.

WKAR2 Auto-retract Safety Utility Knife — Automatically retracts the moment the cut is done.

www.wisstool.com

More Innovative Tools From

Lufkin Legacy Series ...a classic look ™

with high performance features

n Full 8-foot standout* for ease of use and time savings n Hi-Viz® Orange ribbed accent stripe for better grip L925

n Quad-riveted end hook* for long blade life n Matte finish nylon blade coating for no-glare durability n Also available in metric sizes *1-inch blade width models

www.lufkintool.com

On the Web RETAILER Q&A

Urban Retailers Talk Business Big or small, wide or tall, all retail operations face adversity, but most find ways to offer something special to their communities. Because of their geography, urban retailers experience especially unique circumstances that can make doing business challenging and exciting at the same time. Two urban retailers elaborate on these challenges and opportunities.

EXPERT INSIGHTS

Delivering the Best Service

Cole Hardware In an era where e-commerce retailers are a preferred vendor for city dwellers, David Karp thinks outside the box to differentiate his San Francisco hardware stores. Learn more at TheRedT.com/cole-hardware.

Gordon’s Ace Hardware With locations in the middle of downtown Chicago and surrounding suburban areas, Jeremy Melnick has a unique perspective on retailing in an urban versus suburban environment. Learn more at TheRedT.com/gordons-ace.

RESOURCES

We’re Helping You Keep It Cool Sent: Monday, June 5, 2017 at 1:00 PM To: John Smith

$ $

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Creating Emails Your Customers Will Actually Read

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Sample Email Will Brand X Go Cooler Here

Here, you can insert a brief description to convince customers they need to get a Brand X Cooler of their own during your sale.

Brand Y Cooler Are people raving about Brand Y Cooler on your social media pages? Share a testimonial to show customers what they’re missing.

HARDWARE RETAILING | June 2017

J E’S HARDWARE

The complex world of email marketing can be overwhelming. With hundreds of email marketing services and how-to articles out there, you may be asking yourself, “Where do I even begin?” To help you get started or to improve your current processes, we’ve gathered a reliable list of resources at TheRedT.com/email-resources. Check out this list to find links to information on how to start and maintain successful campaigns, email and marketing best practices, examples from industry leaders and more.

You may know your customer base, but how often do you brush up on your consumer and customer service knowledge? Keynote speakers from the NRHA All-Industry Conference sat down with Hardware Retailing to explain how retailers can get to know their customers better and deliver the best service possible. Read more at TheRedT.com/service-experts.

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is geared toward all levels of employees. Visit nrha.org/freetraining to download this month’s lesson, listed below. PDF: Plumbing Merchandising Tips You have a plumbing department, but are you utilizing displays properly? Use this presentation to review best practices with your staff to make sure your plumbing department displays are maintained and effective.

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

comfort, room by room

www.marsdelivers.com

Independent Thinking

What Game Are You In?

“Small business is

about finding creative ways to grow with very limited resources, often in crowded, competitive environments.

”

o, it’s OK to worry about the big, scary competitors out there. Home Depot and Lowe’s had combined sales of $147 billion in 2015, giving them control of about 43 percent of the retail home improvement market. They have continued to see healthy sales growth through 2016. The big, scary online competitor, Amazon, sold about $136 billion in 2016, and saw a whopping 27-percent jump from fiscal 2015. But consider this: A Home Depot store, on average, pulls in almost $39 million in annual sales. That’s almost $750,000 in sales per week. The median hardware store in NRHA’s Cost of Doing Business Study does about $32,000 per week, or about $1.7 million per year. Are these big guys our real competitors? Or do we need to quit focusing on them and get our heads into a totally different game? Small business is about finding creative ways to grow with very limited resources, often in crowded, competitive environments. We are all constrained by limited time, energy, money, knowledge, experience and staff competence. So, let’s make sure we know what game we’re really in. For family-owned, independent businesses, wealth-building over a lifetime is a reasonable game to play. One of the biggest contributors to long-term wealth building would be store expansion—either adding needed square footage or additional locations. Growth requires considerable risk, and often, we’re not ready for expansion. Expansion will require the people and systems in place that free you to work on the business, not be in the business. You will need to demonstrate to investors that you can carry the added load with some degree of assurance. In the process of preparing for growth, you will inevitably improve your current business performance. By working to maximize store performance, you will create immediate short-term financial gains. But before you begin, you must devise a personal game plan for your business, and you must be willing to commit. What’s your three-year, five-year and 10-year vision for your business? There are a few must-haves in your preparations for growth. Ask yourself: Do you have SOPs that keep your current store in tiptop shape? Is store appearance flawless? Cleanliness, merchandising, signage and exterior maintenance all have to be A-plus; you need a model to replicate and a staff that understands your expectations. Take a look at your inventory. Do you really understand how to maximize inventory performance? You’re going to need every penny working hard if you plan to grow. Do you have enough stock? Many retailers are seriously under-inventoried. Is your staff prepared for growth? You can’t do this on your own; that’s a recipe for burnout. Whatever it takes, find and grow a solid management team and get them excited about your game plan and what it will mean for their future. And, train, train, train your sales associates. Remember, you’re preparing for the days when you’ll be focused on the next new store; you can’t be everywhere at once. In the process of overcoming your current constraints, you will have created a more profitable business, have a clearer understanding of the game you’re really in and be better positioned for growth. The coming years will present more opportunities than we can imagine for the independent retailers ready to grab them. Those prepared for calculated risk-taking will build long-term wealth for themselves and their families.

Bill Lee, President and CEO

blee@nrha.org

HARDWARE RETAILING | June 2017

All Re adR eIat d! All t Ab o u ut It!

AALL RR TU AU NT EA E N THTH

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all up Aliens Caug “I just wloinokdoed left. I justhat filled them feweders and o. That’s w

ttacking uirrel is a rowing sq th Midwest! e e m th a fl s t os s acrsquirrel is attacking A gian rmin faw er g ow fl n su ro corn andt flame th e Midwest!

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er with I corn and sunflow ede t th ole’s to ouok ”led C “I just lo so mad. themes alml e up w them fil sa d t an d ak ha w w m camera an o. That’s out the windo said”Mark Cole’s grto abbed my mad as sopicture .justI I methis and saw them Drew as hemakestook anu,d if ll yo d a te k er be l ar m ri I’l M ca . sc id ft y de sa mle d ey gr asgun rreabbeth juystshot bede m grab ctur Drew as he the bizato a, thhaisd pi myu,caifmIer ent heok of ev ed d yo rib ea ll sc st de BQ ft. I’ll te ien B d.ey lein n’ al vish n es seth ha n it e gu be w rr ot d za e' bi w y the ed,d grabbednom y landha era, ght w.” he t he even“T mysteadri of my cam all in ok to . BB ed alLieSn O n’ VEQR w it ne ss vi ha be e'd S EL nded, AILwSTORE ” w. “They laL T ht no BIRD SEED! say MAalLl RmEy Frig E’S farmers ok just toS should Terrified 0 O COL uirrel

ve crop the massi cover up sulting re e th loss and ices by pr n ai gr sq increase in issing crops $167,00in Canton, said hethe store’s name monster s e it th h m it e ore l no change e fields w the saying th hen hasi etas A small st ve crop t 40 blasts th R-Us. W rtedthfoerm vours dirveup uses abou to Cole’swer coeve es then de he e details vGeorgia am y oor or lting go fl fl sa . m su n r re s io of fo T st uct and the s. er odss oprm feet prlo presse shdouylddeclju ted crfa rrif asie square ined sayd rrtoel ieui id he saer prices by sell ov litel e’s name go Te ro n sq as tr ai h po n, gr to to er t he in st an e en se C on m ac storneeded to sp e in increa ole’s thge he s theernm A small stor 67,0ou of the C change in ith its missing crop W shnelves. blasts the fields w $1 ab 00t 40 s.e se ery ole’s-R-U edhe es saying the nol feed evto k th e ha C th oc et rd or s st r Georgia us brand biflo re ur fo vo ed ils de ner deta of were divert flames then store’s owpressed for more square feetyear. Theov The gover ll oduction. clined sayted crops.

OVER TORE SELLS S IL TA E R L SEED! SMAL OLE’S BIRD C F O 0 0 ,0 $167 se space to the Cole’s $167,000 of ed every fe rd brand bi e’ or s owner year. The st

he politely de ed to go ing he need ed shelves. se e restock th

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The Real Shocker! One of these stories is actually true!

SMALL STORE IN CANTON, GA SELLS OVER $167,000 OF COLE’S BIRD SEED EVERY YEAR! That’s an amazing amount of bird seed. Even more amazing, the whole store is only 2,000 square feet and the Cole’s products use a mere 40 square feet. Do the math. That’s over $4,000 per square foot of retail space. Is this one lucky store owner? No, luck has nothing to do with it.

IS THIS STORE THE TOP COLE’S RETAILER? NO, NOT EVEN SECOND OR THIRD! — BUT WAIT, THERE’S MORE — Not only is this store selling Cole’s at an unbelievable rate, but - are you ready for this it rarely, if ever, puts Cole’s on sale!

They sell 11,000 bags a year at full price.

That’s a lot of sales. That’s a lot of profit! ®

Stocked in the Warehouse for

1-877-426-8882 • ColesWildBird.com

Taking Care of Business

Things Are Even Brighter Downtown

“To meet these specific consumer demands, these urban-based retailers really have to know their markets.

”

ore than a decade ago, I wrote a column in this magazine about the resurgence of urban retailing. In that column, I (in)famously quoted the lyrics of the highly relatable Petula Clark song, “Downtown.” Strangely, my obscure 1960s pop reference didn’t exactly cement my street cred. And I guarantee you my entire editorial team has already Googled Petula Clark just to figure out what the heck I’m talking about (and likely to make fun of me). Well, a lot has changed since the last time I wrote about downtown retailing. For starters, I’m tons cooler than I was back then. I mean, really, who would throw a Petula Clark lyric into their column nowadays? The entire concept of downtown retailing has changed a lot as well. The last time we wrote about it, we focused on how to earn and retain all the commercial and industrial accounts that were ripe for the picking. But visit any major city today, from Indianapolis to Pittsburgh, and you will find a completely different environment than you did a decade ago. While there are still plenty of apartment superintendents, schools and businesses to be served in downtown markets, the entire urban landscape has changed. Cities that used to be home to mostly businesses and commercial properties are now teeming with residents—and those residents need home improvement and maintenance products. Today, you have scores of upwardly mobile millennials, well-heeled hipsters, families, Gen X professionals and just about everyone in between living downtown. As a result of the broad consumer base living in cities, today’s urban hardware retailers need to worry about a lot more than just selling paint in five-gallon buckets and renting industrial-strength carpet cleaners. These retailers have to focus on meeting the needs of all the new downtown residents looking for the same products your typical suburban dweller might also be in the market for—paint, gardening supplies, builders’ hardware, safety items, decor accessories and more. Unlike the suburbs, however, the typical downtown customers pose some additional challenges. For example, many urban dwellers won’t drive to their local hardware store. They will walk. This means arranging delivery. Also, many urban residents want products and services that mesh with the downtown lifestyle and aesthetic, which can vary greatly from that of the suburbs. To meet these specific consumer demands, these urban-based retailers really have to know their markets. Another challenge urban retailers face today is the constant battle they fight with balancing product assortment with available floor space—which in downtown locations usually comes at quite a premium. This often means combining thoughtful merchandising techniques and a little bit of good old-fashioned street smarts. This month, Hardware Retailing will focus on this new-generation of urban retailers. We will share their stories and some of the retail secrets they utilize to thrive in what can be highly challenging environments. In the process, I would also echo the sentiments of an artist that may be a little more on trend than Petula Clark: Jay Z (if you are over 35, Google him), who famously wrote, “One hand in the air for the big city... No place in the world that can compare.”

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | June 2017

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NRHA News

In Review: 2017 NRHA All-Industry Conference

he 2017 NRHA All-Industry Conference, co-located with the National Hardware Show®, was an opportunity for independent retailers and channel supporters to be in one place to celebrate the industry’s successes and learn how to innovate to ensure future success. Check out the snapshots of the conference here and plan to join the fun next year!

1. Representatives from the National Hardware Show, the North American Retail Hardware Association (NRHA), Lancaster and the Paint and Decorating Retailers Association helped ring in the start of the show on the NRHA Village Stage. 2. NRHA president and CEO Bill Lee congratulated the 21st annual Young Retailer of the Year honorees. 3. Representatives of DAP Products Inc. celebrated their Packaging and Merchandising Awards.

4. The NRHA Village provided a space for all independent retailers and channel partners to network together and support the industry. 5. The winner of the National Hardware Show’s Reimagine Retail program is Robert Lau, owner of Caribou Jack’s Trading Co. in Soda Springs, Idaho. Learn more about his plans for the $100,000 award on Page 60.

6. Presenter Dustin Kaehr provided insights into what customers are really thinking about retail. 7. This year’s Top Guns Awards went to Young Guns, next-generation leaders in the independent industry. Go to TheRedT.com/top-guns-2017 to read more about these innovative retailers.

HARDWARE RETAILING | June 2017

NRHA News

The Alternative Options

What’s Going on With Health Insurance?

ecently, there’s been a lot of talk about health insurance. While there’s no way to predict the future, Bob Chiesa, president and CEO of Custom Benefits Insurance Group Inc., reminds retailers what issues they should pay attention to and what it could mean in the future.

• If you currently offer a group medical plan, consider offering a second one with a higher deductible. Most carriers will allow this. It’s usually viewed as a positive by the employees, and is less expensive. Plus, the employer is only required to contribute a certain percentage to the lowest ACA-compliant plan. • Look at other carriers. You likely do this periodically with your homeowner’s and car insurance. Consider doing the same for health insurance. Certain carriers provide lower rates to certain industries, and this varies per insurance carrier.

The Facts • All U.S. citizens must be covered by a health insurance plan, whether through an employer, an individual plan or through the governmental exchange. If you are not covered by a medical plan, there will be penalties. • Children under age 26 can remain on a parent’s plan. However, whether an individual plan or an employer plan of fewer than 50 employees, there is a cost per dependent. • Employers who offer medical plans with fewer than 50 employees will continue, in most cases, to have the rates vary by the age of the employee, the age of the employee’s spouse and the number of children. To read the full list of health insurance facts from Chiesa, visit TheRedT.com/insurance-facts.

• The majority of NRHA health insurance plans are not only competitive, but they also provide composite rates. This means the rates do not vary by the ages or number of children covered on the plan. The single rate is the same for all employees, as is the employee/spouse and family rates. Custom Benefits Insurance Group, which facilitates NRHA’s insurance plan, will automatically look at various carriers on your behalf to secure the best rate. If you’re interested in learning more about NRHA health insurance, visit cbigi.com/nrha-program.

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HARDWARE RETAILING | June 2017

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Retailers Share Value of CODB Report

or 100 years, NRHA has been conducting its annual Cost of Doing Business Study (CODB). The study collects financial information from more than 1,000 independent home improvement retail businesses,

Neal Aissa, Operations Manager Tarzian Hardware What elements of the study are most helpful to you? The ratios are very helpful. We look at all the ratios so we can compare our store to the industry average. We’re in a unique market in Brooklyn, New York, so it’s a really dense market, and we have super low square footage with high transactions. Because of this, some of our numbers are out of line, but the study helps us understand true industry standards. It’s also helpful when we’re having conversations about a new store location. It gives us some real numbers to look at, and that’s very useful.

Have you used the study to make important decisions or changes to your business? It’s pushed us to try to spend more money on advertising. It’s tough in our market, but when we see that other retailers are spending a decent share on advertising, it reminds us we need to find ways to do the same, whether it’s online efforts, targeted mailing or other methods.

and from the data, industry averages are calculated. We asked retailers why they feel it’s important to participate in the CODB and how they use the results. To participate in the 2017 study, visit TheRedT.com/codb2017.

Lauren Mathews, Communications Manager Connolly’s Do it Best Hardware & Rental Have you used the study to make any important decisions or changes to your business? Most recently, we’ve used it to help guide a comprehensive inventory evaluation for our four locations. We used metrics such as GMROI, sales and inventory per square foot and inventory turnover, among others, to help us gauge where we should aim with the project. We also use it to help make everyday decisions regarding expenses such as advertising, utilities and payroll.

If you were speaking to another retailer who had never heard about the study, what would you tell them? It’s so important to regularly look at all aspects of your business to see where your best opportunities for improvement lie. The Cost of Doing Business Study is the quickest and easiest way to find “low-hanging fruit” and glaring issues. It sheds light on opportunities to better your business. We highly recommend it as one of your first steps into any improvement project.

Deﬁ e ned b ty. by quality The bra r nd trust s ed by b pro rofessionals rof & homeow o ners r ffor o ov ver 125 ye y ars r .

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June 2017 | HARDWARE RETAILING

Trends Prioritize Style and Function in Plumbing Kitchen and bath updates were some of the most popular home remodeling projects in 2016—a trend that can only be good for your business if your operation excels in plumbing. Online home improvement community Houzz surveyed more than 100,000 homeowners in early 2017 and discovered that kitchens, guest or other bathrooms and master bathrooms were among the top four interior spaces to be renovated in the past year. In addition, when homeowners invested in updates to house systems, they chose most often to upgrade their plumbing. Houzz predicts that interior renovations will continue to be important in 2017, with more than 50 percent of survey respondents planning remodels for inside spaces this year.

Applied to Retail Keep the top home renovation projects in mind as you continue to flesh out your core category inventory this year. Products for kitchen and bathroom upgrades should be important to your business throughout 2017 since they’re such popular areas to remodel. Bathrooms and kitchens are areas where plumbing can be both practical and stylish, so you can deepen your product offering by paying attention to what’s in vogue. Strengthen your operation’s market share in the plumbing category not only by carrying the basic pipes and fittings, but also by staying on top of style trends. Head to Page 50 to check out what’s hot and what’s not in plumbing fashions.

22%

Top Spaces Remodeled Inside the Home

Living/ Family Room

% 24 Guest/Other Bathroom

% 21 Master % 29 Kitchen

Bathroom

Top Systems Upgraded

28%

Plumbing

HARDWARE RETAILING | June 2017

25%

Electrical

21%

Home Automation

18%

Heating

Source: 2017 Houzz & Home Report, Houzz

FAMILY FARM & HOME WILL DOUBLE ITS STORE COUNT … because they joined OUR co-op Al Fansler and his family operated a chain of 27 stores, but they had an even bigger vision for Family Farm & Home. To expand the company, Al, Tim and Bob needed a true partner. That’s why they chose the best option—True Value®.

(Left to right) Son-in-law Bob Tarrant, Al Fansler and son Tim.

FREEDOM TO RUN THEIR COMPANY THEIR WAY WITHOUT INTERFERENCE Family Farm and Home proudly shares the business results the company achieved as a member of our co-op. (Your individual results will vary.)

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We understood the family’s long-term business strategy. Tim Fansler, co-president and chief marketing officer, says, “True Value demonstrated a level of expertise within our wide range of product categories that we couldn’t find anywhere else.” Today, the company operates 51 stores in three states with plans to keep growing with True Value. True Value offers sound business solutions and resources to ensure Family Farm and Home’s future growth and profitability. Al, Tim and Bob are more than our business partners, they’re family.

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A Joint Section Brought to You By Industry Edge and Hardware Retailing

1 One of the biggest advantages of attending the National Hardware Show® is browsing new products. The following items were selected to feature in this joint section by Hardware Retailing magazine, the National Hardware Show and its weekly digital communication, Industry Edge. Look at these products, some still in the works and others that just hit the market. For more products and trends, sign up for Industry Edge at industryedge.nationalhardwareshow.com.

HARDWARE RETAILING | June 2017

1. Smart Refrigerator

2. Wireless Lighting

The Family Hub™ 2.0 refrigerator from Samsung is controlled from a 21.5-inch Wi-Fi enabled touchscreen, which serves as the digital command center. Users can create shopping lists and expiration notices; share calendars, photos and memos; stream music and videos and more. It is available across 10 models. It also features voice recognition technology.

The Philips Hue White and Color Ambiance starter kit includes a bridge that connects to a wireless router and three Philips Hue White and Color Ambiance A19 lightbulbs. These lightbulbs feature rich blues and greens. Lightbulbs install in any standard light fixture and transform a room with access to 16 million colors. Additionally, users can sync lights with music, movies, TV shows, games and live sporting events using third-party apps.

Samsung 800-726-7864 or samsung.com

Philips Lighting 847-717-1890 or meethue.com

Join the Industry Edge Mailing List Receive new product trends, retail insights and tips delivered to your inbox weekly. Sign up at industryedge.nationalhardwareshow.com

3 3. Toolbox Liners

4. Vegetable Spiralizer

Toolbox Drawer Liners from Zerust Consumer Products are made of a patented, corrosion-inhibiting formula with a heavy-duty non-slip rubber. The odorless, nontoxic rust prevention technology and quality PVC rubber works to protect tools from rust and corrosion. The liners can be used on shelves or inside toolboxes, drawers, truck boxes and storage boxes. They are easy to wipe clean with a soapy or damp cloth. The liners can be easily cut to any size.

The Gourmia Electric Spiralizer easily cuts veggies, noodles and fruits into artistic spiral strands of various widths. The spiralizer features two speeds, has two spiralizer blades sized for spaghetti and fettuccine noodles, dispenses noodles directly into a large-capacity prep bowl and disassembles easily for fast cleanup by hand or in the top rack of the dishwasher. Users can take vegetables, such as carrots, zucchini, sweet potatoes and more, and cut them into noodle-like strips for use as a pasta replacement, or for other dishes, such as salads or chips. Additionally, firmer fruits, like apples, can be spiralized for salads or desserts.

Zerust Consumer Products LLC 330-405-1965 or zerustproducts.com

Gourmia 888-552-0033 or gourmia.com

June 2017 | HARDWARE RETAILING

Brought to you by

A Joint Section Brought to You By Industry Edge and Hardware Retailing

5. Floating Table Tennis Game

6. Kitchen Storage

The Floating Table Tennis Game from Poolmaster® is made from noncorrosive EPS foam, with built-in compartments for convenient storage. It unfolds easily for a quick setup and doubles as a tabletop game. The set includes two oversize paddles, a net with uprights and three Ping-Pong balls.

The Not-So-Lazy Susan™ Organizer is an update to the standard Lazy Susan corner unit. The organizer allows users to store their cookware with adjustable hooks, a stabilizing frame for hanging pans and a bottom tray for additional storage for lids and larger pots. The adjustable design of the unit also gives users the option for semi-customization to fit their needs.

Poolmaster® Inc. 800-854-1492 or poolmaster.com

Glideware LLC 800-558-9947 or glideware.com

Sears Hometown Store Advantage • Add new product lines with No Inventory Expense • Attract a new customer base • Leverage your existing delivery service • District Manager, Field Team, Home Office, Vendor & online support • On line access to Sears Hometown full merchandise assortment • Exterior and interior signage provided • Local and national advertising support

Additional income opportunity by adding this established Home Improvement business to your store

HARDWARE RETAILING | June 2017

7. Tile Backer Board

8. Self-Cleaning Toilet

The GoBoard® is a durable, lightweight, waterproof tile backer board from Johns Manville. Install GoBoard with sealant, and later tile that same day. The GoBoard can easily be cut with a basic utility knife without crumbling or disintegrating. It’s also much easier to handle than cement and other heavy boards. It's available in ¼-inch width for floors and countertops and ½-inch and 5/8-inch for walls, showers, ceilings and floors.

The Ultima VorMax toilet by American Standard uses one jet of water to scrub the entire bowl. The flushing system has been independently verified to clean the bowl two times better than conventional toilets. Its rim omits the overhang and holes inside the bowl where dirt and buildup can hide, while its antimicrobial finish inhibits the growth of stain and odor-causing bacteria, mold and mildew on the surface.

Johns Manville 866-426-5015 or jm.com/goboard

American Standard 800-442-1902 or americanstandard.com

Garden Discovery is yours. NEW Product Scouting & Facetime with Garden Vendors Are Yours in 2017

When you’re at IGC Show, you’re at the only event exclusively for garden goods & plants. You’ll ﬁnd everything you need for your store. Efﬁcient ordering in a three-day format allows you plenty of time with your favorite vendors and the opportunity to establish ties with new ones. And this year, we’re adding even more excitement! #IGCshow The Must-Attend Event of the Year August 15-17 | Navy Pier, Chicago RIGHT BEFORE ACE FALL • AUG 17-19

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www.IGCChicago.com | Trade Show, Keynotes, Conference 100% Garden Product Exhibitors + Over 550 Garden-Focused Booths + Largest Garden Center Event In The World

A Joint Section Brought to You By Industry Edge and Hardware Retailing

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The Amazing Fit-All Replacement Stopper

Unique ball-shift toggle system which opens and closes the drain with a simple push of the toe or finger.

9 9. Smell Deterrent Bike Lock Taking anti-theft protection in a new direction, SkunkLock™ uses the standard U-Lock design, but has a backup deterrent. It includes pressurized chemicals within the framework that create a noxious odor and can induce nausea and vomiting when the lock is breached. The deterrent will only adversely affect the thief, but may attract attention. It has replaceable keys and is guaranteed to be safe for everyday use. SkunkLock™ LLC 415-533-5520 or skunklock.com

American Made & Profitable For Over 80 Years Fit-All Stopper for Tub & Lavatory Drains • Will fit 90% of all tub drain openings and 95% of all lavatory sink drains. • Simple to install — no tools required. • Open or close with a touch of the finger or toe. • Eliminates annoying stopper assemblies and pop-up stoppers which seldom hold water. • Can be easily removed for cleaning. • Available in chrome, satin nickel, brass and antique brass finishes

800-473-1803 www.pppmfgco.com 24

HARDWARE RETAILING | June 2017

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

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

10 463371316

463672016

MORE FLAVOR Hotter temperatures vaporize and lock in juices for more flavorful meals.

MORE VERSATILITY Better heat control allows for temperature ranges unattainable by conventional grills.

MORE CONSISTENT Specialized grates separate the food from the flames distributing heat evenly.

10. Straight Flush Saw Designed to take the place of several power tools in the workshop, the Straight Flush Saw™ can make zero-clearance cuts, allowing it to make tighter and cleaner cuts with little adjustment. The handle can be pivoted to a variety of angles and can be adjusted to easily switch to an undercut saw configuration, saving the time it takes to change out one saw for another. Additionally, by changing blade types and adding either a water or CO2 hose, the Straight Flush Saw can act as a masonry or metal saw.

EXPERIENCE TRU-INFRARED GRILLING Char-Broil® TRU-Infrared Grills cook food evenly throughout, locking in natural juices and delivering unrivaled taste. TM

Cuz-D 855-528-9346 or cuz-d.com

11. Undercounter Warmer The Incogneeto™ Induction Warmer from Viking Professional is mounted directly under stone or engineered stone countertops. It keeps dishes warm when serving a crowd. Out of site when not in use, the trivet portion of the warming unit has a light indicator that displays its usable area, giving the user flexibility in placement of serving dishes. Viking Range LLC 662-451-4123 or vikingrange.com

June 2017 | HARDWARE RETAILING

Brought to you by

A Joint Section Brought to You By Industry Edge and Hardware Retailing

12 13 12. Automated Beer Brewer

13. Lantern Kit

Brewie is a self-contained, automated home brewing system for beer. The B20 Brewie machine allows users to work with multiple malt bags, and with RFID technology, users can set up various brewing recipes. A built-in Wi-Fi connection can keep users updated on the brew stages and allows them to connect with other brewers through the Brewie social platform.

Repurpose and transform any empty beverage bottle into a solar lantern with the Afterglow–Solar Bottle Lantern Kit from Echo Valley. This product consists of a solar module and integrated rubber stopper with three strands of copper wires, each containing several micro amber LEDs. A steel wire hanger is included.

Brewie info@brewie.org or brewie.org

Echo Valley 800-592-9678 or echovalley.com

Old

New

For over 40 years, Master Magnetics has brought you the most complete line of magnetic products to boost your in-store and online sales. Learn how attractive magnets can be for you at magnetsource.com/newlook or call 888.293.9190.

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HARDWARE RETAILING | June 2017

The Magnet Source® brand is a proven profit center with over 250 SKUs, trilingual packaging, customized planograms and free merchandising graphics.

Join the Industry Edge Mailing List Sign up at industryedge.nationalhardwareshow.com

15 14 14. Ceiling Fan With Bluetooth® Speaker

15. Synthetic Shutters

The Breez Integrity 70 CFM Fan with Bluetooth® Speaker from Delta enables users to enjoy music, hear real-time news, weather, traffic or sports while the energy-efficient fan quietly ventilates the bathroom. It is ENERGY STAR®-qualified with brushless DC motor technology. The product is an easy fit for both new builds and retrofit remodels.

Timberlane’s Endurian™ Shutters are highly customizable, with multiple variations of panel and trim designs and colors to fit consumers’ decor demands. The maintenance-free shutters are made of a state-of-the-art, proprietary synthetic blend that mimics wood in a variety of ways. These design details include curves, radius tops and cutouts only found in wood.

Delta Products Corp. 877-685-4384 or deltabreez.com

Timberlane, Inc. 800-250-2221 or timberlane.com/trade-professional/dealer

Sunnyside Corporation 225 Carpenter Avenue Wheeling, Illinois 60090 www.sunnysidecorp.com

June 2017 | HARDWARE RETAILING

Checkouts UNIQUE DISPLAY

These Walls Aren’t Moosin’ Around

t’s an oft-heard cliché with time-tested locations: If these walls could talk. So, first-time customers may be surprised when they walk into Seiler’s Hardware in Three Forks, Montana. The store, open for 30-plus years and under the ownership of Ryan and Brooke Pestel for the past year and a half, tells the story of multiple young employees who got their start in the workforce at Seiler’s. The murals are the lasting reminders of a long-term program first enacted under the previous owner of Seiler’s Hardware, Richard Seiler. The program was designed to bring a freshman from the local high school into the store as an employee, working each summer until their senior year and learning the ins and outs of an independent business. Then, when this young employee was ready to graduate and move on into the world, they were invited to paint a lasting image somewhere in the store. As the years have gone by, the store’s interior has taken on the personality of these employees and left the store with a unique look, too. “I was pretty much born and raised in Three Forks, so I’ve grown up with the murals at Seiler’s. They’ve just always been there, but even I didn’t know about all of them until I was interested in buying the store,” Ryan Pestel says, adding that the offices above the salesfloor feature even more artwork. The most famous of the works is probably the large forest scene in the store’s bathroom area, Pestel says. The mural, painted by two female employees after their high school years, features a large moose amongst an assortment of trees across the walls. It allows visitors to feel like they’re out in the wilderness Montana is so well known for. Other designs include a castle scene, and a more abstract piece showing the transition of day into night. Having worked in the construction business for most of his career, Ryan Pestel saw Seiler’s Hardware as the next step for him and his family. He says his son is already planning to take over the store in the future, and he wants to continue the program of bringing on high school students to learn the hardware business from the inside. And yes, maybe make a little art along the way. “Last year, I hired a freshman, so now we have a sophomore on staff. I think I’ll make this kind of hire every two years, so we’ll always have two on staff at a time. So we should be looking at a new mural every two years,” Ryan Pestel says.

One of the most well-known murals at Seiler’s Hardware is in the bathroom. It features a moose within a forest scene showing the mountain vistas Montana is known for.

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 2017

YOU REALLY CAN HAVE THE BEST OF BOTH WORLDS PRO Hardware oﬀers the progressive retailer the best of both worlds with traditional marketing – circulars, coupons, statement stuﬀers and digital marketing – web and facebook ready promotions, email specials, mobile coupons, QR codes. PRO has a program to reach both the traditional shopper and the online consumer.

O G Digital

Learn more about the PRO Hardware program by contacting Shari Kalbach, Vice President, at 303.792.3000 or shari.kalbach@pro-group.com.

The Bostwick-Braun Co. Toledo, OH • 419.259.3600

Find us online at www.prohardware.com

Wallace Hardware Co., Inc. Morristown, TN • 423.586.5650

PRO HARDWARE DISTRIBUTORS: Horizon Distribution, Inc. Yakima, WA • 509.453.3181

BUILDING THE SUCCESS OF AMERICA’S INDEPENDENT HARDWARE RETAILER SINCE 1953 Vendor Partners:

Checkouts

CUSTOMER RELATIONS

Grand Reopening is Picture Perfect

he first day a store is open for business means a lot of emotions and questions for an owner, including excitement, trepidation, pride and the always-present inner voice asking, “Will anyone show up?” So, when a plan comes together like it did for Bernardsville Hardware in Bernardsville, New Jersey, what better way to commemorate the event than in the enduring medium of paint? Owners Drew and Renee Hubiak’s expansion plan may not have come about the way they had planned, but the end result looks to be on a great track for the future. Drew Hubiak had already been in the lumber and hardware business for close to 20 years, owning Califon Lumber Co. in Califon, New Jersey. Hubiak had his eyes out for another location but hadn’t found one that both piqued his interest and made sense financially. That’s when the location for what would become his new Bernardsville location became available unexpectedly.

“The artist and I have known each other a long time, going back to when it was just our lumberyard and events we had there.

”

—Drew Hubiak, Bernardsville Hardware

Through a two-year process that included a market analysis, with the help of his co-op, Hubiak was able to purchase the location and do a complete remodel to make it a destination for new and returning customers alike. To celebrate the grand reopening, he invited vendors, customers and an old artist friend to help make May 6 a memorable day for all involved. The day included food and drinks, giveaways and much more. “We received many door prizes to give away. The response we got from both vendors and customers was almost overwhelming,” Hubiak says. “We’re excited about some of the events and programs we want to put in place.” While customers enjoyed hot dogs and vendor booths with products to try out, Hubiak had an old friend hard at work commemorating the store for the future. An abstract artist who had painted at previous events was on hand to put his own take on the Bernardsville store, bringing along his iconic, paint-covered car for an added bit of fun. Children were asked to put their own designs on the car during the event as well. “The artist and I have known each other a long time, going back to when it was just our lumberyard and events we had there,” Hubiak says. “He got in touch, and we asked if he would like to come out for the reopening,” he says. “We’re really excited, because we’ll soon have the painting ready for display in the store,” he says. “We’ll be able to put his painting up and remember what a great day that was.”

Owners Drew and Renee Hubiak recently conducted the grand reopening of Bernardsville Hardware in Bernardsville, New Jersey. The event featured an artist who painted the storefront and allowed children to paint his one-of-a-kind car, pictured on the right.

HARDWARE RETAILING | June 2017

Testing performed using a popular interior latex paint vs. competitive high pressure airless system.

IT’S NEVER BEEN EASIER TO

PAINT LIKE A PRO

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Checkouts

UNIQUE NICHE

This Collection is Hot

ime green, chocolate, baby blue—to see those colors on a charcoal grill, you may need to travel back in time a few decades. Or, you could visit the barbecue shop at Scheels Home and Hardware. While this Fargo, North Dakota, retailer has a large barbecue shop filled with the latest products from several major grill manufacturers, a large presentation of accessories and more sauces and rubs than you’ll find at most grocery stores, one of the highlights of the department is what store manager Mark Hulbert calls their Weber Museum. “Our Weber Museum is the collection of one of our longtime employees, Tom Molm, who started collecting these more than 15 years ago,” says Hulbert. The collection includes Weber grills and memorabilia from Weber and other companies, dating back as far as the 1960s. Placards identify the year the grill was made, who donated it and a note indicating if the grill was originally purchased at Scheels, which itself has been in the community for more than 100 years. There are more than 25 grills on display at the store,

Many of the pieces in the “Weber Museum” at Scheels Home and Hardware are kettle-style grills in colors popular at the time.

and Molm has many more at home. He got a lot of these grills at garage sales or auctions, or even rescued them from dumpsters. Now, people bring in donations to his collection. “The collection has a nice visual appeal that makes our barbecue shop unique,” says Hulbert. “A lot of our customers used to own some of these grills, and it’s nostalgic for some to look and remember a grill they used to have. Grilling has an important place in our history, and this display is a great way to remember that.”

SELF-FUSING SILICONE TAPE IRON GRIP® Silicone Tape is a self-fusing, repair tape that conforms to any surface while providing a water-tight seal. Silicone Tape creates a chemical, moisture-resistant barrier that fixes leaky pipes, hoses and insulates frayed electrical wires. It is easy to remove, leaves no sticky residue and protects from corrosion. Ideal for marine, automotive, plumbing and household applications, plus many more!

SEALS • PROTECTS • REPAIRS • INSULATES • 700 PSI • -85°F to 500°F • 300% Stretch • Insulates up to 8,000 volts

Repairs/insulates electrical wires

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Creates a firm grip on handle

i tape with

HARDWARE RETAILING | June 2017

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Wrap hoses for an airtight seal

PROMOTIONS

“Hello, My Name Is ...”

hen there’s a new arrival at Mark’s Ace Hardware, Camille Gibson wants to make sure everyone has a chance to see it. Gibson, general manager for the Tucson, Arizona, store, doesn’t want any new addition to her product lineup to go unnoticed. That’s why she’s created a new item board, a white board located in the employee breakroom that announces the arrival of each new product she or one of her employees brings into the store. While information on each new item is posted for all employees to review throughout the day, Gibson also makes sure each gets a proper introduction during her daily employee meetings. During those meetings, she often brings a sample of a new product and offers a quick overview of its features and benefits. The idea for the board originated when Gibson began creating a “lost sales” sheet, which was her system of tracking why customers left the store without purchasing the items they came in to buy. Once she knew why a customer didn’t make a purchase, she could address those issues in the future. “I discovered that the majority of the sales we were losing was due to items we didn’t stock,” she says. But bringing those items into the store only solved half the problem. Employees needed to understand that the new products were available and be proactive in recommending them to customers.

The new product board at Mark’s Ace Hardware holds a rotating list of the latest additions to the store’s product mix, so employees are better equipped to sell them.

“When we started bringing in those items, we needed a way to communicate to our employees and our customers that those products were now available,” she says. “The new item board has helped with that communication,” she says. “Sales on some of those items are typically strong, because employees are more likely to suggest them to customers.”

HARDWARE RETAILING | June 2017

By Melanie Moul, mmoul@nrha.org

Shop Around the Block Urban Retailers Take On Unique Challenges in the City

eople typically have opinions about whether they could “make it” in a city like New York or San Francisco. “I would love living in such a busy place! There’s always something new to see and people to meet,” some say. Or, others say, “That sounds terrible. It’s so noisy and crowded, and the traffic is awful!” Whether city living is your ultimate plan or your worst nightmare, there is one thing that everyone can probably agree on. Running a retail store in an urban environment creates unique challenges—and requires unique operations practices—that are all just part of the cost of doing business in the city.

June May 2017 | HARDWARE RETAILING

Hardware Retailing spoke to four retailers in different cities across the United States to find out how they address challenges that are unique to each of their urban spaces, such as maintaining margins despite high operating costs, merchandising a small salesfloor, determining the best product mix for urban dwellers and more. While the settings certainly differ, we discovered that urban retailers’ primary goals don’t differ much from their independent counterparts in suburban and rural areas. Urban retailers strive to provide expert customer service to their neighbors, even if there are 7 million of them. Retailers everywhere have an opportunity to learn from these urban operators who run their stores differently out of necessity.

18 Blocks Apart When Nathaniel Garber Schoen was looking to open a second store in Manhattan, he prioritized proximity to his original hardware store so he could easily move between the two locations.

The space he chose is in Chelsea, less than a mile from the original store. Retailers in suburban or rural areas would probably never consider opening a second location so close to their primary store, but for some of Garber Hardware’s customers, the stores are a little too far apart. “If we don’t have something in stock here, or if we don’t carry it, I tell them we have it at the Greenwich Village store, and instead they say ‘Can you have it sent here and I’ll come back to get it?’” Schoen says. The stores are located in two distinct Manhattan neighborhoods—the primary location has been in Greenwich Village since 1884, moving only once in 2003—so the customer bases don’t overlap, which was another one of Schoen’s considerations in opening a second location. “The neighborhood needed a hardware store, and this shop is conveniently located, compared to the original store, but it’s not so close that I would be poaching my own customers between the two locations,” he says.

Urban vs. Suburban: Gordon’s Ace Hardware to be cross-trained, because you really can’t have a paint department manager and an electrical manager standing a few feet apart from your co-workers if you’re in a 4,000-square-foot space.”

Permits & Ordinances

Located in downtown Chicago and surrounding neighborhoods, Jeremy Melnick and his father Les own and operate nine stores that span both urban and suburban locations. Because he operates businesses in both types of markets, Melnick offers a unique perspective regarding the difference between doing business in urban versus suburban environments. Here he elaborates on a few of those areas. For more insights from Melnick, visit TheRedT.com/gordons-ace.

Hiring “In an urban environment, you have to get new hires in and get them trained to understand the culture of a smaller footprint. You wear more hats when you’re working in a smaller store because you still have the same number of customers as you would have in a larger store, but you have to do the work in a much smaller space. You have

HARDWARE RETAILING | June 2017

“We recently ran a spring event at our suburban location, and we had to get the proper permits and have the health department come out. They were really easy to work with, and we had a very successful event. We did the same event in downtown Chicago last year, and we had to fill out multiple forms, pay several fees and deal with many different health department regulations, even though we’re certified to handle food. Being located downtown in a major city makes it very difficult to do business, and I’m sure retailers in New York City and San Francisco face very similar issues.”

Delivery Services “With the fast-paced environment and younger generation moving into the city right after college, they’re definitely tuned to ‘click and ship.’ Because we have five stores that are in urban communities full of high rises, we do free local deliveries on any order over $50. We also have inventory coming in every day at one of our stores, so we try to communicate with customers so we can get what they need in 24 hours. We compete by being available for face-to-face help and assistance. If you can’t come in or can’t carry the product or can’t drive, we’ll deliver it for you. We have a truck running all over the city seven days a week.”

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Left: The salesfloor of Garber Hardware in Chelsea is just 1,800 square feet, which means the store is tightly packed with merchandise. Right: Store owner Nathaniel Garber Schoen and his dog, Kang, are well-known in Manhattan, where there are two Garber Hardware locations.

Maintaining a Reputation Garber Hardware’s Chelsea location, which Schoen operates full-time, opened in August 2016. His father, uncle and cousin run the original location in Greenwich Village. “I’m fortunate that I live pretty much equidistant between the two stores,” says Schoen. “Over two or three zip codes in Manhattan, I feel like I know everybody, and they recognize me and my dog.” Because the primary location has been in Greenwich Village for more than 130 years, Garber Hardware is well established and known throughout New York City as a place to find expert advice for home improvement projects. “Every year that goes by, this business becomes more and more unique,” says Schoen, who is the fifth-generation owner of Garber Hardware. “I don’t know that there are any businesses in the city that are as old as we are that are still owned and operated by the original family.” The age of New York City’s infrastructure is something that contributes to customer needs. Many people find themselves at Garber Hardware for answers when they get stuck on certain home improvement or renovation projects. The old architecture in Manhattan sometimes stumps

HARDWARE RETAILING | June 2017

professionals who have trouble visualizing a project through an awkward floorplan or need to figure out how to plumb a new bathroom when there is one tap for the whole apartment, says Schoen. “In New York, every renovation situation is unique because all the spaces are abnormal,” he says. “The things we sell aren’t manufactured with urban dwellers in mind, so it doesn’t necessarily apply out of the box. There are a lot of larger workarounds that people need to do.” Schoen says even simple projects like window insulation are something New Yorkers need to find an alternative solution for, because windows in older townhomes can be odd dimensions that don’t match a standard box of window insulation. For these customers, Schoen recommends they buy insulation made for patio doors and have it cut to fit. “I have licensed professionals who know what they’re doing, and they’ll still come in and spend 20 minutes just brainstorming what particular issues they have at hand,” says Schoen. “They’re so thankful for the help, because this could be a $10,000 install, and they’re stuck.” Continued on Page 42

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Challenges Urban Retailers Face NEW YORK Nathaniel Garber Schoen Owner Garber Hardware Garber Hardware has been owned and operated in Manhattan by Schoen’s family since 1884. They opened their second location in Chelsea in August 2016.

CHICAGO Jeremy Melnick Owner Gordon’s Ace Hardware Gordon’s Ace Hardware is a hardware operation with nine store locations in downtown Chicago and surrounding suburban neighborhoods.

“Obviously, rent is my No. 1 challenge, as it is for any New York City retailer, and that becomes a margin issue. I may be able to charge a little bit more for things, but not to the extent that it makes up for the difference, so I’m operating at a slightly lower margin.”

“We get a lot of fake money and quick change in the city, and we don’t have that problem in our suburban stores. There are just things we deal with on a daily basis with shoplifters and customer interactions in the city that we now understand as normal.”

“When we were opening our second store, we needed a store inspection, but they wouldn’t inspect the store until we were open. So, we couldn’t apply for the certifications we needed until we were cited and fined by the agencies for not having them.”

“We have to put a lot more product in a smaller space, so it can get cramped. It’s hard to display bulk items, and it’s challenging to display grills, patio furniture and Christmas items. In the suburbs, you see bulk-stacked items, but it is more of a challenge in the city.”

“Merchandising can be a challenge, because we only have an 1,800-square-foot salesfloor in the Chelsea store. We address that by being creative with the way we organize and categorize our products.”

“One of the biggest categories at our suburban stores is spray paint, and it’s illegal for anyone to sell spray paint in the city of Chicago. It’s completely crazy, because people living in the city can go online and buy it from Amazon and have it delivered the next day.”

HARDWARE RETAILING | June 2017

Cost of Doing Business

City Ordinances

Loss Prevention

SAN FRANCISCO

Parking Access

Salesfloor & Merchandising

Employee Recruitment

SEATTLE

David Karp Inventory Manager & Assistant Director of Operations Cole Hardware Owned by the Karp family, there are five Cole Hardware locations in San Francisco and one in Oakland, California.

Willow Yoder Store Manager Greenwood Hardware Greenwood Hardware in Seattle opened its doors in 1948, and since then has had three owners. The store caters to apartment and condo dwellers.

“There’s an ordinance in San Francisco that says all windows need to be visible so people can see into your store. When we took our plans for a new store to the city, we were denied. They told us we had to move a whole wall of fixtures to comply.”

“Seattle recently raised the minimum wage to $15, so it’s difficult for us to compete with larger businesses. We aren’t required to pay that wage until 2023, but it’s pivotal that we are there at the same time as corporate companies to remain competitive.”

“Customers are always saying they wish we had parking. The reality is that every store has some parking, and those options are usually meters and free side streets. Some stores are near paid parking lots, but that’s the best we can do in a big city.”

“In this market, it seems like there are very few people looking for jobs, which creates an interesting dynamic when trying to find the right staff. We also find that someone may have all the skills we need, but maybe doesn’t have the right customer service abilities.”

“It’s challenging to find qualified people who are a good culture fit, will stick around and will deliver the level of customer service that our community expects. Now that we have a store in Oakland, it’s even harder to get people to come work in the city.”

“Perfecting product mix is timeconsuming. If people are only buying what they need, you’re not making money. It’s important to have new items, to merchandise well and to move things around so customers have to shop around the store.”

June 2017 | HARDWARE RETAILING

Continued from Page 38

This in-the-weeds customer service sets Garber Hardware apart from others, Schoen says. “A client might come to us with a problem, and we might have already solved it for three or four other people. As soon as I get a little more information, I can offer a solution.” In addition to DIY customers and renovation professionals, Garber Hardware meets the unique needs of customers who work on film, television and stage productions and in art galleries. Chelsea has a large art community, so many of Garber Hardware’s customers are from galleries that cycle through art installations every several weeks. “I get a lot of people coming in who say, ‘I have a weird question,’” Schoen says. “These galleries can have a standard art installation, and then six weeks later they need to figure out how to hang a 1957 Chevy from the ceiling.” It’s these unique challenges that Schoen enjoys helping his customers solve. “There is a lot of creative problem-solving in this business, and I think that’s why people come to us.”

Concrete Jungle Categories When he’s buying products, Schoen doesn’t focus as much on specific items as he does on creating a memorable customer experience.

Many of Garber Hardware’s customers have second homes outside the city, which helps drive axe sales in the store.

HARDWARE RETAILING | June 2017

While it’s important to have what your customers are looking for, the people who have a positive interaction are more likely to return. “We’re really focused on asking what customers need, and if we don’t have it, we can get it in two days,” he says. “Our stock and trade is in our expertise and our customer service. That’s what we sell the most of.” In addition to focusing on customer service, the store itself isn’t large enough to bring in a lot of extra product. And since the store only opened last August, it hasn’t yet been open through all seasons for Schoen to gauge what kinds of products to bring in for the upcoming summer. “The Chelsea location has an 1,800-square-foot salesfloor,” he says. “You just have to be creative. If you categorize everything the right way, it will all fit.” Both store locations have basements that allow for storage of some bulk items, but for Schoen, it’s not cost-effective to have a lot of back stock. “When you’re dealing with a smaller footprint, you can’t have as many options,” he says. “I try to keep most of my stock on a shelf or on a hook, which means we’re just constantly restocking right off the truck.” Schoen says his product mix often doesn’t line up with the seasons because customers demand a certain product all year long or because merchandising seasonal items becomes challenging in his small store. One item that he keeps in stock throughout the year is white Christmas lights. “I deal with a lot of restaurants that light with white lights, so I always have those in stock.” When it comes to merchandising, Schoen says they are always reorganizing the store to make room for the seasonal products he does sell. “When the garden products come in to the store in February, I still need to keep snow shovels out, but they’re occupying the space in the front of the store where I keep plants and pots,” he says. “I’m constantly using space that was previously the space of another item. We don’t just need to move one item out of the way. At any given moment, some department is being downsized to make space for the new items, and that process never ends.” Garber Hardware doesn’t maintain a large lawn and garden supply department because there isn’t demand for it in the city. Schoen says his customers are happy with his selection of terra cotta pots and soil. “The kinds of hobbies people do on the weekends in the suburbs just don’t happen here in New York,” he says. “I have plenty of people who I see every week for plant food and

things of that nature because they are basically horticulturists, but I don’t have to prepare for that spring rush like retailers in other areas of the country do.” While customers may not have lawns or gardens in Manhattan, many of Garber Hardware’s customers have vacation homes outside the city. “New Yorkers leave every weekend in the summer, so while we may be slower on the weekend, we benefit during the week, because no one wants to shop for their vacation homes while they’re actually on vacation,” Schoen says. Customers who are on their way out of the city stop in for items their vacation homes may need, and it’s not always only staples like lightbulbs. “We have a big collection of axes, because people need them to chop firewood at their weekend destinations,” Schoen says. Similar to retailers in other markets, Garber Hardware benefits from big-weather events,

like snowstorms, but only if they are consistent throughout the season. “This winter, we sold one pallet of ice melt because we had one storm at the end of the season,” says Schoen. “I had that pallet on hand since October.” Schoen keeps his product mix interesting by buying what stands out to him in his catalogs. He expects his customers will have the same kind of impulse reaction to those unexpected products. “We stand out for having some esoteric stuff,” he says. “I would like to think that most people who spend more than a few minutes in the store walk out with something they didn’t plan to buy.” One of the most unique impulse items that his customers can’t get enough of is horseshoes. He merchandises them on the service counter, and customers often call attention to them. “They all ask the same thing: ‘Do people really buy these?’ And I say, ‘That’s a fresh box. I sell 48 horseshoes a month.’”

Creatively Differentiating: Cole Hardware get hired, you get a bonus. If they’re still with us in six months, you get another bonus, and if they’re still with us after one year, you get a third bonus. It’s a good way to find valuable employees, and a nice perk for our current employees.”

Private-Label Products

David Karp and his family run five stores in the San Francisco area, and one store right outside the city in Oakland, California. In an era where Amazon and other online retailers are the preferred vendor for many millennials and city dwellers, Karp understands the importance of differentiating his business to drive foot traffic to his stores and keep his customers coming back. Here are a few examples of how Cole Hardware stays on San Francisco residents’ radars. Read more about the business at TheRedT.com/cole-hardware.

Family and Friends Referral Program “Some of our most successful hiring is done through our refer a friend or family member program. If you refer friends or family for a job opening and they

“We sell private-label wine and donate cases of it to community groups that are having events or auctions. Once a month we also have a happy hour in the store where we serve wine and our private-label chocolate. During the happy hour, we offer deals like $10 off a $20 purchase, or something like that. We’re always trying to do something different and interesting to drive new foot traffic into the stores and make our brand more recognizable, and I think the private labeling and events work well.”

Customer Service Via Text Message “For the past few years, we’ve been using a texting system to communicate with our customers. When people call one of our stores from a cell phone, an automated message will prompt them to push a certain number to text us instead. Then, instead of talking to us over the phone, the customer can text someone on our staff directly. You can send pictures and messages back and forth. It’s been a pretty popular service. It has a lot of potential as a lot of the younger generation becomes part of our customer base.”

June 2017 | HARDWARE RETAILING

In Support of Passion Projects Schoen approaches employment quite differently from retailers in rural and suburban stores. Schoen says knowing at the start that the employees you bring in will eventually move on to something else means you will always get good people. “I only want to hire people who I know I won’t get to keep,” he says. “The folks I hire are too good to stay with me long term. If you hire someone who is too good for you, they will make your space better.” While Schoen seeks out high-quality employees and prefers to find people with a hardware background, he also focuses on creating an experience his employees can take with them to their next endeavors. Opportunities for advancement in a small store like Schoen’s can be challenging. “I want an employee who will like working for us and will excel, but they’re going to take the experience

from working in this store and apply it to bigger and better things,” he says. “I bring on people who are actors or artists or musicians, who already have something going on in their lives. They just need a few hours a week to bring in some money while they’re working on their passion project.” Schoen says it’s nice if his hirees have some experience or knowledge in the industry, but the right person needs to know customer service. “It’s not just working in retail. It’s a little more demanding,” he says. “My customers want to be taken to the product, and they have questions about it, even if it’s just lightbulbs.” Finding the right employee who matches up with the store’s needs can leave Schoen shorthanded sometimes, but he says waiting for a good match is worth extra work on his part. “I’d rather work a seven-day week for a few weeks and find the right person for the job who can meet customers’ expectations,” he says.

Connecting With the Urban Community: Greenwood Hardware within a half-mile from big-box stores, small paint shops and lawn and garden stores, so here we have so much competition on every corner. It is highly important that we stand out. With the higher cost of doing business expenses, our prices do have to be a little higher. We have to compensate by giving our customers the best experience we can.”

A Community Hub

Willow Yoder manages Greenwood Hardware in Seattle. While there are many aspects that make the store successful, one important element that keeps customers coming back is the company’s relationship with its community. Read below to find out how Greenwood Hardware shines over its competitors by offering the store as a space for community engagement.

“Yes, we are a hardware store. But we are also the community gathering area for our neighborhood. It is an experience to come into the store. We’re an information center. When there’s something big going on in the community, residents come to the store to find out more about it. Even though we are an inner-city store, there is still a neighborhood feel. We donate a lot to the community. We go to local events, and we promote the city neighborhood association.”

Knowing the Market Superior Customer Service “Competing with online retailers like Amazon is something all retailers have to face right now. We have e-commerce through our co-op, but we are here in the store for advice and a friendly face when customers need personal help with their projects, and I think they really appreciate the in-store experience. Even with all the e-commerce competitors, there’s a sense of community surrounding the store that won’t go away. Our store is

HARDWARE RETAILING | June 2017

“We cater to the inner-city apartment and condodwelling residents. Sixty percent or more of our customers are female, and a lot of women come in to the store to do general shopping. We have large housewares and paint departments and do a lot of business in lawn and garden. We specialize in ecofriendly products, and that brings in a lot of residents who want an organic fix to something that’s going on in their home. That’s a big trend in Seattle.”

Garber Hardware merchandises seasonal products, like the limited lawn and garden products the store offers, in the display window in the front of the store.

Schoen finds most of his employees through current or former employees or through word of mouth because they understand what kind of personalities make the right fit for the store. Schoen found one of his employees through a long-time customer who no longer had enough work for all of her employees. Schoen hired him nearly immediately because he was familiar with the store as a former regular customer. “He was already coming with such a great reference, so it was an easy hiring decision for me to make,” Schoen says.

Manhattan Mainstay Schoen says the Greenwich Village store has a good amount of street credibility because it’s been in business for so long. “If you read New York City local news and see a headline that mentions a venerable New York business, you know what it’s going to say before you even read the article: ‘Such and such business in Manhattan closing after 70 years because of this or that,’” Schoen says. “I take pride in going the opposite direction of that, and it’s super special after so many generations that we’ve been able to adapt to the constantly changing New York City landscape and residency.” Schoen remembers just 30 years ago when stores like his were union shops with limited hours catering only to trades.

HARDWARE RETAILING | June 2017

While Garber Hardware’s history is impressive by itself, Schoen takes cues on how he can maintain his success with a new audience using today’s tools. “We’ve been talking about developing a new marketing strategy for the store,” he says. “We are pretty active on social media.” Schoen uses social media to interact with the community online in a relaxed, casual way that reflects what people will experience in the stores. “I think we’re all hyperaware of how not relaxed social media is lately. I really wish social media was just pictures of people’s pets, kids and vacations.” Garber Hardware uses social media to communicate sales and products, but it’s also used to reinforce that the store is a family-owned and -operated business. “We are fully run as a family business, and if someone has a kid or someone is getting married, we might have to close the store for a few random days, and we are sure to share those changes on social media,” Schoen says. The lighthearted atmosphere Schoen shares with followers on social media is not much different from what customers will find when they visit either Garber Hardware location. “We’re serious businesspeople, but it’s never too serious, and social media is fun,” he says. “The most serious we get is when we’re giving friendly advice on regular home improvement projects.”

Don’t Get Lost in the Clutter How to Craft the Perfect Marketing Email

very day, more than 225 billion emails will be sent and received around the world. Of those, almost 105 billion of them will be directed at consumers, according to a recent study from The Radicati Group, a California-based technology marketing research firm. That being said, it’s important, now more than ever, to make sure your brand is present in your customers’ email inboxes. And with more than 80 emails—that’s personal, business and commercial combined—reaching each of your customers every day, the messages coming from your brand need to be relevant, succinct and attractive. According to the Radicati report, this email overload will only continue to grow over the next two years. The firm

HARDWARE RETAILING | June 2017

predicts the number of consumers with email accounts will continue to rise, and the number of consumer emails sent and received per day worldwide will also increase by almost 13 billion by 2019. Many business owners in the home improvement industry use email as an effective marketing technique to keep customers informed about everything from special sales to new products and services. Whether you’re new to email marketing or simply looking for ways to improve, Hardware Retailing has a few tips. Follow the best practices on the following page to make your email stand out and increase the chances that your customers will open and engage with your emails.

We’re Helping You Keep It Cool

For more resources on how to develop a strategy and send great emails, check out TheRedT.com/ email-tools.

Sent: Monday, June 5, 2017 at 1:00 PM To: John Smith

$ $

SAL E $

$ $

...With BOGO Coolers This Week! Brand X and Brand Y coolers are on sale at Joe’s Hardware today until Saturday, June 10. For more information and to print the coupon, visit us online at yourwebsiteurl.com. Brand X Cooler Here, you can insert a brief description to convince customers they need to get a Brand X Cooler of their own during your sale.

Brand Y Cooler Are people raving about Brand Y Cooler on your social media pages? Share a testimonial to show customers what they’re missing.

J E’S HARDWARE

1. Subject Line

3. Design

5. Footer

Consider words and phrases that gauge interest. For example, would you be more likely to open an email that says, “June Sale” or, “We’re Helping You Keep It Cool”? It’s also important to avoid trigger words, such as “free,” “act now” and “special promotion,” which could send your emails to the junk folder.

Think about the emails you enjoy reading. It’s unlikely they include only text. Photos, bulleted lists, graphics and colors make emails easier to read and more interesting to look at. Take advantage of the templates available through your email marketing service to easily enhance your design.

This section always appears at the bottom of your email template and includes several kinds of necessary information, such as contact information, the option to unsubscribe and more. Make sure this section is accurate and up-to-date and that the links within it work properly.

2. Headline

4. Length

6. Tracking

Once your customers open your email, the first thing they see is the headline, which is the bolded line at the top of your email. Is it catchy? Does it draw attention? Is it related to the subject line? Does it accurately describe the information within the email, or is it misleading?

Your message should be concise, clear and complete at the same time. It shouldn’t take customers more than a few seconds to read your email. Instead of typing out paragraphs of content, consider using graphics, photos and links to your website or social media pages.

Utilize the analytics feature of your email marketing platform to track what’s working and what’s not. For example, you can determine what types of emails are being opened and read most often, or what type of content is causing customers to unsubscribe. To learn more about tracking your analytics, turn to Page 70. June 2017 | HARDWARE RETAILING

SINK IN TO PLUMBING

Designers Talk About What’s New in Decorative Plumbing

By Renee Changnon, rchangnon@nhra.org

HARDWARE RETAILING | June 2017

“W

hen a client is ready to update their bathroom, the first thing I want them to select is a new, upgraded toilet that not only functions well, but looks great, too,” says Ebony Stephenson, owner of Designs by Ebony in Newport News, Virginia. While the toilet may not seem like a very trendy product, Stephenson insists this necessary piece can make or break a bathroom’s design. But it’s not always a commonly discussed product. And how many of your employees can talk passionately about toilets, faucets, sinks or showers? Beyond the pipes, plumbing is a fashion-forward category, so you need to bring in the latest products trending in your area to encourage customers to turn to your business.

Whether you have a small space devoted to decorative plumbing or an entire showroom to feature the category, it’s important to pay attention to design trends so you can be the category leader in your market. Hardware Retailing spoke to design professionals from across the country, including Stephenson, to find out the latest trends in decorative plumbing. In the following pages, three designers share what trends consumers across the country are looking for today. We’ll also offer some suggestions of how you can best showcase decorative plumbing products and trends through a working on-site showroom or through an online portfolio. Be sure to read all nine showroom tips and tricks, which can help you keep customers interested.

Designer Insights For a closer look at decorative plumbing trends, Hardware Retailing spoke with three designers who have expertise in the category. Because their businesses are located in different parts off the country, they each see varied kinds of trends. Their insights can lead you toward what customers may like, but they agree it’s vital to listen to customers first.

Alana Busse Westside Remodeling Thousand Oaks, California

Photo Courtesy of Adam Gibson

Kitchen Trends Many homeowners treat the kitchen as the heart of the home. They want to make their cooking spaces functional, attractive places to gather with friends and family. Decorative plumbing is found throughout the kitchen. Whether the room has a unique faucet that matches the cabinet hardware or a secondary sink on an island to allow multiple chefs to work at once, there are many trends gaining traction, while others are becoming less and less popular. Adam Gibson of Adam Gibson Design in Carmel, Indiana, notes that apron sinks, also known as farmhouse sinks, are increasingly popular among his clients. The traditional farmhouse sink is a lot deeper than modern stainless steel undermount or top-mount sinks.

Because it’s installed under the countertop, it’s easy to wipe water or crumbs into the sink. Farmhouse sinks are frequently made of fireclay, which is a material manufactured from clay at a high temperature, which makes it resistant to scratches, staining and chipping. Porcelain is also a common material in this type of sink, and now there are more options available in stainless steel and copper. Stephenson says about half of her clients prefer sinks that are split into two equal bowls, and the other half opt for one big open sink bowl. “In the kitchen, homeowners used to just go with anything, but now they want the sink to be a showcase and a statement piece in the room,” Stephenson says. “Customers are having more fun with sinks.”

Adam Gibson Adam Gibson Design Carmel, Indiana

Ebony Stephenson Designs by Ebony Newport News, Virginia

June 2017 | HARDWARE RETAILING

Alana Busse, lead designer at Westside Remodeling in Thousand Oaks, California, says her clients tend to prefer undermount sinks as the standard in the kitchen. Popular finishes include stainless steel, composite granite, fireclay, copper, quartz, natural stone and cast iron. These are often chosen based on the aesthetic of the design and other materials found throughout the kitchen.

Photo Courtesy of Schäf Photo Architectural Photography

9 Showroom Tips and Tricks

Refresh the Space As a designer who has previously worked within showrooms, Stephenson says it’s important to keep the showroom updated every couple of months. Highlight trends that are popular in your area. If you are ready to swap something out, you can sell the showroom model at a discount.

HARDWARE RETAILING | June 2017

“We’re seeing a lot of one-bowl sinks in the kitchen, rather than the two-bowl. With one deep-bowl sink, you are less likely to spill on the floor,” Busse says. “Plus, in this very pet-friendly community, single bowl sinks provide a way for pet owners to bathe a small or medium-sized dog.” One trend all three designers see exiting the scene is the pot filler faucet, which is a swing-out faucet on a long, jointed arm mounted over a homeowner’s stove. These have been in restaurants for many years, but really made an entrance into the consumer market a few years ago. However, secondary sinks are taking the place of the pot filler in popularity. “Honestly, we don’t see many pot fillers anymore,” Busse says. “Instead, we see prep sinks coming into play. For someone with an island, they might have a secondary sink available, which works great if two people are cooking at the same time.” As a designer who is also certified in aging in place, which provides design modifications that allow older individuals to live in their own homes safely as they age, Stephenson says pot fillers could pose a hazard, especially for an elderly person filling up a pot and then trying to move that heavy pot of boiling water to drain it. Another growing trend is touchless faucets, since the technology has improved among manufacturers. With touchless faucets, the user can wave his or her hand under a sensor to turn the water on and off. Improvements to this technology also allow functions like pausing the flow of water. Touchless technology has been in commercial settings for years, but has recently been making more of a splash in homes. For Busse, the faucet, whether it contains touchless technology or not, is something she encourages her clients to invest a bit more in to ensure it will last the wear and tear of everyday use.

Organization is Key As the lead designer who utilizes the showroom when working with clients and helping them pick out pieces, Busse says the most important thing is to stay organized and know where everything is located. That way, you can easily show your customers what you have on display and highlight products you can order.

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“The faucet is one thing you use the most. I always suggest a product that can last, since it’s the workhorse of the kitchen,” Busse says. An easy addition to the kitchen is incorporating decorative strainers in sink drains, Stephenson says. People can pick something that matches the decor or theme of the space to help keep food scraps out of the sink in an attractive way. Decorative sink stoppers can be made of stainless steel and other materials, featuring unique patterns like a snowflake for wintertime or a starfish for a beach-themed home. To avoid getting their backsplash dirty, Busse says her clients have been opting for an air

Ask Questions To best assist a customer who is looking to update a kitchen, bathroom or another space, it is vital to ask them questions, Busse says. While consumers may have done plenty of online research, your job is to help break a project down and walk through it with your customers, step by step.

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button drilled into the countertop to control the garbage disposal rather than having a switch on the wall. As for finishes, brushed nickel, satin nickel, chrome, oil-rubbed bronze and gold are all common choices. Stephenson says another finish that’s becoming increasingly popular is a champagne bronze color, which has lighter gold tones and a brass gold finish, making it more subtle than brass on its own. In the kitchen, there are even innovations with finishes that eliminate the possibility of smudges with spot-resistant finishes keeping the look of rooms clean and tidy.

Out With the Old, In With the New Another tip from Busse is to eliminate products that are discontinued immediately. This ensures you won’t upset a customer who falls in love with a showroom model, only to discover they can’t purchase it. However, you could sell the model and any other discontinued inventory at a lower price.

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Overall, consumers want finishes incorporated into their plumbing that provide durability and feature a more transitional style, which combines traditional and contemporary styles and is less likely to look dated.

Bathroom Trends Whether they are eager to escape the stress in an in-home spa environment or are simply getting ready for a day at the office, homeowners like master bathrooms and powder rooms with decorative plumbing that adds a creative flare. According to Busse, the shower is the key design element of the bathroom. Rather than installing

Have Samples on Hand Stephenson says another way to give customers a better idea of the products on hand is by having samples that they can touch and feel. Samples on the wall are nice to see on display, but having something on a ring or that can be moved around is even better. Photo Courtesy of Ebony Stephenson

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the combination shower and bathtub, many homeowners prefer a large open shower, she says. “In California, people want what I call the human car wash,” Busse says. “They want the hand wand, the overhead rain showerhead and then two wall-mounted his-and-hers showerheads. They want as much water as they can legally get.” Among Stephenson’s customers, the preference is a two-person shower and a freestanding soaking bathtub—without jetted technology. “In Virginia, everything in the bathroom design is focused more on being sleek and clean,” Stephenson says. “Also, more people are looking to incorporate aging in place design concepts to this space, so they’ll have a walk-in shower and grab bars included to prepare for the future.” Many showers have at least two showerheads, and handheld body sprays are secondary features. Inside the shower, decorative shower drains are another way to make the shower look polished. “We’re seeing more and more decorative shower drains,” Busse says. “Often they are square-shaped

Stay Up to Date on Trends Since trends are always changing, it’s important for a retailer to stay aware of the latest trends and incorporate them into the showroom. “Look at your sales,” Stephenson says. “What are designers and homeowners purchasing? While magazines and blogs are great places to look, it’s important to just listen to what people are asking for.”

HARDWARE RETAILING | June 2017

shower drains with unique patterns. The old round shower drains are not as common. If someone is spending a good amount to improve the bathroom, they want a nice drain.” Showers often feature glass floor-to-ceiling walls with an opening instead of a door. Options like shower corner splashguards help prevent water from escaping. Removing the door provides a sleek look, and cuts costs on a glass door. Although the pedestal and wall-mounted sinks have been popular in the past, Busse’s customers prefer to have a sink within cabinetry. On the East Coast, Stephenson says her customers prefer undermount sinks, and square-shaped sinks are in, while oval and round-shaped sinks are out. While toilets may not seem like a trendy part of the bathroom, Stephenson says a cheap, insignificant toilet can ruin a fully redone bathroom. “As a designer, it hurts my heart to see a beautiful bathroom with an average toilet,” Stephenson says. “They will use their toilet every day, so I want it to be something they like.”

Add Working Displays Another suggestion Stephenson recommends is adding working displays to the showroom if space allows. While this may require a bit more work on the retailer’s part as far as gaining extra permits and plumbing, working displays may make the money back in additional sales, she says.

Toilet trends she sees include a preference for comfort-height elongated toilets, which are higher off the ground, as well as compact elongated toilets for small powder rooms. Technology is also improving the bathroom experience, with soft-close toilet seats, as well as night-lights and air fresheners built into the toilet. “You can invest in toilets that have all the bells and whistles,” Stephenson says. “Instead of flushing, the client can use an LED touchscreen on the wall to flush it. When you walk to the toilet, the seat opens for you and it can even heat up.” Technological advancements are incorporated in the toilet as well, like remote controls. Users can flush the toilet or close, open or heat the seat, all with the touch of a button. However, many customers may not be as likely to invest in these extras, as they may fear the advancements will change shortly after installation.

Designing a bar is one way to get creative with decorative plumbing and to showcase new ideas. Homeowners can have a little more fun with sink shapes and faucets because they’re paying more attention to looks than functionality in this space. Stephenson says her customers tend to be more confident and creative by incorporating statement faucets and sinks in a bar area. “My clients are thinking outside the box,” Stephenson says. “They’re looking for different shapes and materials, which helps make the bar sink a focal point of the space.”

Other Trends Throughout the Home Decorative plumbing trends are also featured in other areas of the home, like a laundry room, the garage or an in-home bar. While some still prefer the basics, more consumers are looking to create to a nicer laundry room, straying from the white acrylic sink and going for full cabinetry and large undermount sinks, and using remnants of another countertop project, like quartz or granite from the kitchen. For those with a large enough laundry room, they’ll add a deep sink with a pullout faucet they can use to easily rinse clothes or eliminate stains before throwing a load in the washing machine. Gibson says his clients often opt for the basics in the garage. If he’s designing these spaces, there might be a stainless steel sink with a plain pullout faucet. Adding a faucet in the garage is another great way to help keep the rest of the home clean, Busse says. “If a client works on cars or motorcycles, they’re likely going to get dirty. We add sinks to the garage often, as it allows customers to get cleaned up, or to clean off their garden tools after spending some time working in the yard.”

Photo Courtesy of Schäf Photo Architectural Photography

Create an Online Showroom If a showroom is not a possibility, there are still ways to showcase decorative plumbing and other products available for your customers, Gibson says. He recommends using a website or creating a presence on Houzz.com. Take photos of products in use and share with your customers.

Get Involved For Busse, being involved in home improvement organizations is a great way to stay aware of trends and network with others. She is the National Kitchen and Bath Association (NKBA) Central Coast and Valleys Chapter President, where she runs meetings and events with others in the industry.

June 2017 | HARDWARE RETAILING

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Category Q&A Sponsored by Fluidmaster | fluidmaster.com

Fluidmaster Reveals Magic Behind Toilet Repair here’s something special about going to the hardware store on a Saturday morning. Friendly faces and aisles full of tools and gadgets make the store full of possibilities for projects and ways to scratch items off the honey-do list.

Perhaps one of those items on the list is defeating the noisy monster living in the toilet (noisy fill valve) or making sure there is always a powerful flush in the guest bathroom (nobody wants those kinds of surprises). Whatever the toilet issue, Fluidmaster’s distinctive red and green packaging lets distraught weekend warriors and others know they’re getting the right products for their toilets. Fluidmaster pioneered the toilet repair DIY category 60 years ago by providing an innovative product (400A), and has been dedicated ever since to making it easy for consumers to do the job themselves. Of course, the company didn’t do it alone. It was only by partnering with hardware retailers that Fluidmaster has become a household name. Headquartered in San Juan Capistrano, California, Fluidmaster now provides hundreds of products servicing both consumer and professional markets in 90 countries across the globe. With over 2,000 employees worldwide, Fluidmaster remains a family-owned business, and family is still very much at the heart of the brand. Hardware Retailing visited with Fluidmaster’s Director of Marketing Dave McFarland. In this Q&A, he shares his insights on how independent retailers can play an important role in the future of toilet repair.

How has toilet technology changed in the 60 years since Fluidmaster was founded? Dave McFarland (DM): Toilet tanks have become smaller and limit water usage. In order to keep things flushing, Fluidmaster and toilet manufacturers have responded with technologies that are designed to deliver more power using less water. When consumers pop the lids of their toilets, they are finding some very strange and foreign-looking objects staring back at them. Fluidmaster has responded by developing repair parts that work with newer toilets, including the PerforMAX Fill Valve that is adjustable to distribute the right amount of water between the tank and the bowl. This ensures the consumer can maximize the flush power in a high-efficiency toilet while not wasting water. How does Fluidmaster view independent retailers’ role in toilet repair? DM: Toilet repair is a confusing category for consumers. Independent hardware stores often carry a wider array of direct replacements, meaning consumers can find an exact match for what is inside their toilet tank. Consumers will also benefit by the local knowledge and more relevant product assortments. We continue to view the independent retailer as a vital partner in providing that friendly, helpful environment that gives our consumers confidence in knowing they have found the right part to fix their toilet. What can retailers do to enhance their customers’ toilet repair projects? DM: We understand that toilet repair is a low engagement category. However, toilet trouble has a way of creating a sense of urgency to get the problem fixed. What we see is that a consumer will likely not have done a lot of research prior to arriving at the store and is prone to become frustrated if they don’t find a solution to their problem. It’s helpful if retailers can provide navigational signage and good merchandising to quickly guide the consumer to that solution. Since much of the new technology is unfamiliar to consumers, they may simply take a picture of the inside of their tank and then head to the store. If retailers have highly visual signage to guide customers to the right location, they can find the like product. By quickly directing customers to the right place, retailers can turn a negative emotional state into a positive one. What is in store for the industry in the next 60 years? DM: The good news is that the fundamental need to visit the porcelain throne will not change, and tanks will always need to flush and refill. Toilet technologies will continue to diverge, as manufacturers strive to deliver more powerful flushes using less water. Fluidmaster is working with most of the major toilet manufacturers to develop this new technology, which gives us insight into how to service these toilets once they hit the market.

June 2017 | HARDWARE RETAILING

And the Winner Is... The National Hardware Show® Awards Idaho Store $100K Through the First Reimagine Retail Program

hat would you do with $100,000 to improve your business? Perhaps you’d put your hardware store in the palm of your customers’ hands through an app featuring 3-D imaging. Or maybe you’d take your screen repair services on the road. What about creating a learning center accessible inside and outside your store for customers to become educated on everything they need to do a project on their own? The ideas are as far as your imagination can go. This year, the National Hardware Show® received nearly 200 applications for its new Reimagine Retail program,

HARDWARE RETAILING | June 2017

which was launched to invest in and support the future of independent home improvement retailers. The retailers submitted ideas that ran the gamut from tech-savvy ambitions intended to improve operations and customer experience to store refreshes that could take a traditional hardware store into the future. Prior to the show, a panel of industry professionals selected 10 finalists for the Reimagine Retail program. In the following pages, you’ll learn about the winning operation, Caribou Jack’s Trading Co. Discover more about what is in the works for the store with the $100,000 award in this exclusive Q&A with owner Robert Lau.

Hardware Retailing (HR): Can you tell us about the history of Caribou Jack’s Trading Co.? Robert Lau (RL): The business was founded in 1903 as Gagon’s Lumber, and the Gagon family owned it until the 1970s. After that family sold the business, it changed owners a few times before my family took over in 2010. Our goal has been to expand our focus to go beyond a hardware store to a general store and a community hub. HR: What drove you to enter into the hardware industry? Why did you decide you wanted to settle in Soda Springs? RL: My great-great-grandfather settled the town of Soda Springs in 1870 with three other families. My dad grew up here. While I grew up in the Washington, D.C. area, in Maryland, as a kid I visited Soda Springs often to see my grandma. After graduating from college, I spent 14 years in northern Delaware before making the decision

Finalists Share Amazing Ideas In addition to Caribou Jack’s Trading Co., nine other businesses were chosen as finalists for the Reimagine Retail Program. To learn about all of the other great ideas from the winners, visit TheRedT.com/reimagine-finalists. The applications that rose to the top came from the following retailers: • Debbie Supply in East Rochester, New York • K Hardware Stores in Idaho Falls, Idaho • La Grange Park Ace Hardware in La Grange Park, Illinois • Logan Hardware in Washington, D.C. • Mark’s Supply in Frackville and Shenandoah, Pennsylvania • Parry’s in Hamilton, New York • Sandpoint Super Drug in Sandpoint, Idaho • Shaw Hardware Store in Plattsmouth, Nebraska • Woods Hardware in Cincinnati, Ohio

June 2017 | HARDWARE RETAILING

to leave my corporate life and relocate my family to Soda Springs to own and operate my own business. I decided I wanted to come back “home,” even though I wasn’t raised here. I figured if I had another 40 years of my life working, I wanted to put it into something my forefathers believed in, which is building Soda Springs.

Caribou Jack’s Trading Co. attracts a wide range of customers, including both locals and tourists driving by on the highway.

HR: How did you learn about the Reimagine Retail program? Prior to the program, had you wanted to create the vision you presented? RL: I found out about the Reimagine Retail program from Hardware Retailing’s online newsletter; right away I knew I had to apply. For a few years, I’ve had the idea of turning the store into a place for the community to gather by adding a farm-to-table restaurant. I was just trying to figure out how to afford it. The food service industry is great, but the cost of getting into it is really high. My idea was to incorporate items sold in the store into the restaurant by cooking with Traeger Grills and various sauces, rubs and spices we sell. This way, people could come have something made for them, or buy the items to make a meal at home.

HR: How did you react when your store was chosen as one of the 10 finalists? RL: I didn’t think we were going to make it. I was told the finalists would be notified by a certain date and hadn’t heard anything. However, toward the end of the week I was scrolling through my email when I saw a message from Rich Russo, vice president of the National Hardware Show. He told me he’d been trying to get in touch with me and that our store was a finalist. I immediately started figuring out logistics so my wife and our four kids could leave work and school to attend the National Hardware Show with me. There are so many smart people in the hardware industry who have achieved so much. I know there were many great ideas submitted, so it was an honor to be among the finalists and ultimately the winner. HR: Had you attended the National Hardware Show before this experience? RL: When I applied for the grant, I decided to register myself to go to the show. I’d never gone before, but I was so impressed that the National Hardware Show was willing to invest $100,000 in an innovative store idea from an independent retailer that I decided I wanted to go. I usually can only afford to go to one market or show a year. However, I really enjoyed the show. The effort to attend was worth it. I kept finding cool new product ideas. Plus, we loved the Tailgate, Backyard & BBQ area because we could see the grills in action and taste the wide range of food that one could create. Now, my intention is to find a way to attend two shows a year, both a co-op buying show and the National Hardware Show.

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Innovation Rules Caribou Jack’s Trading Co. is a great place for locals to visit for many needs, including hardware and grilling.

starrett.com June 2017 | HARDWARE RETAILING

HR: What did it feel like when you learned your business won the Reimagine Retail program? RL: I was in shock! I think my whole family was. They announced our store won, the confetti shot into the room and Rich was shaking my hand. Then I shook hands with all the other finalists. I told them I appreciated their ideas as well. I shared the news through a picture of us winning with extended family and our employees at the store. The news is still spreading through town, but I shared the article from Hardware Retailing on our Facebook page, and the response has been fantastic.

Caribou Jack’s Trading Co. owner Robert Lau (left) was presented with the $100,000 award by Rich Russo, vice president of the National Hardware Show®.

HR: What are your thoughts now on the Reimagine Retail program? RL: I hope the National Hardware Show continues to run this program. I think it’s remarkable because for a lot of hardware stores, we’re under so much pressure from big-box stores and online retailers like Amazon and Jet.com. You may have great ideas, but unlike a large corporation, you likely don’t have the extra funds to jump into these ideas as quickly as you’d like to. It’s hard to reinvent yourself to become more relevant. However, the community around us is evolving and changing.

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If we don’t work to re-establish the importance of local retail, small and large towns will lose a lot of their shopping options. In a bind, consumers won’t have anywhere to go. If they need help with a project, As local retailers, we need to reassert our importance with customers by continuing to evolve and improve. HR: What are your plans moving forward now that you’ve won the $100,000 award? RL: I’ve been visiting with plumbers, electricians, truss fabricators and an engineer in town. I’ve also been looking at where to add on to my existing structure. I’m having conversations with the health department. In Idaho, the kitchen equipment that’s installed has to go through the plumbing inspector. My goal is to have the plan in place by Memorial Day, and I’d like to start construction in June. My goal is to be done by Labor Day. As far as operating the restaurant, I have a couple of professionally trained people in mind to help put the recipes together. I want it to be a place that people want to come back to regularly. HR: Is there anything else you’d like to share with our readers? RL: I think what this program is all about, as well as what the National Hardware Show team have done, is spark the idea of reinvesting in communities and retail around our country. The Internet is great, and big-boxes are great, but so are locally owned retail stores, which are the lifeblood of the economy. People shouldn’t forget them. The Reimagine Retail program allows a store to reinvent itself and stay relevant for years to come. This program helps shine a spotlight on smaller communities; there are thousands across the country. We don’t want people to forget those small business owners. I can’t express just how grateful, thankful and humbled I am by this opportunity. It is truly a blessing for my family and myself, and hopefully for our community as well.

“The Internet is great, and big-boxes

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”

—Robert Lau, Caribou Jack’s Trading Company

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Newsmakers

SBA Chief Is ‘Optimistic About Small Business’

Upcoming Events June 15-17 House-Hasson Hardware Dealer Market Sevierville, Tennessee

19-21 PRO Group Inc. 2017 Group Merchandising Conference Chicago

July 28-30 United Hardware Fall and Winter Buying Market Minneapolis Linda McMahon, administrator for the U.S. Small Business Administration and former CEO of World Wrestling Entertainment, speaks to small business owners in Indiana.

inda McMahon, new administrator for the U.S. Small Business Administration (SBA), believes entrepreneurship is making a comeback and the SBA can help. “I’m so optimistic about small business in America. I wouldn’t have taken this job if I wasn’t,” McMahon said during a recent speech for National Small Business Week in Indiana. President Donald Trump chose her to lead the SBA. After years of hesitancy, more and more business owners are taking risks to start companies or expand, she says. Her plan is to help make the SBA and its services, such as business financing, better known so more small companies can use them. “Whether they’re starting up or scaling up, the SBA has the resources they need,” McMahon says. “We are streamlining our processes so businesses can start, expand and succeed.” She is also talking with business owners and learning about their concerns related to taxes and federal regulations. The volume of regulations has come up as an ongoing worry, she says. McMahon spoke with Hardware Retailing about the retail sector. Retailing is a tough arena for independent, brick-and-mortar businesses, but niche operations with unique products can find success, she says. She has a soft spot for hardware stores, including Greenwich Hardware in her hometown of Greenwich, Connecticut. She says her father taught her some DIY skills when she was growing up. “I had my own toolbox. He taught me to fix things and taught me the names of all the tools,” she says. She told Hardware Retailing she is uniquely equipped to lead the SBA because of her past roles as a business owner. She is former CEO of World Wrestling Entertainment. McMahon and her husband, Vince McMahon, started the wrestling entertainment company together as a small business. They shared a desk and experienced setbacks such as bankruptcy, having a car repossessed and other financial struggles, she says. However, their business grew over the decades into the large public company it is now. “As an entrepreneur, I have truly lived the American dream,” McMahon says. She can relate to small business owners because she has been one, she says, “I can walk their walk and talk their talk,” she says.

HARDWARE RETAILING | June 2017

August 17-19 Ace Hardware Fall 2017 Convention & Exhibits Chicago

24-26 Orgill Inc. Fall Dealer Market Boston

September 8-10 Horizon Distribution Annual Conference & Trade Show Expo Yakima, Washington

8-10 HDW 2017 Fall Dealer Market Shreveport, Louisana

15-16 Blish-Mize Fall Buying Market Overland Park, Kansas

23-26 Home Hardware Market St. Jacobs Ontario

25-27 True Value Fall Reunion Chicago 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.

Explore all your health insurance options. Finding affordable group health insurance can be challenging. We’re here to help. Designed with independent retailers in mind, NRHA Health Insurance offers solid benefits at an affordable rate.

What’s your plan? Get a quote today. Offering health, dental, eye and life insurance coverage, NRHA has a variety of plans available. What are you waiting for? Contact us today at cbigi@msn.com, or call 888-201-7408.

“Selecting the right insurance plan can be confusing. You want to find the right long-term solution for you and your staff. The NRHA plan is specifically built to meet retailers’ needs and save them money.” Bob Chiesa | President & CEO | Custom Benefits Insurance Group Inc. FOR MORE INFORMATION, GO TO CBIGI.COM/NRHA-PROGRAM

Newsmakers

Ace Hardware’s Frank Carroll Departing to Lead Manufacturer Frank Carroll, vice president of merchandising for Ace Hardware Corp., is leaving the cooperative to become CEO of manufacturer Broan-NuTone. TheRedT.com/frank-carroll

posted on a Home Depot website for an unknown length of time. TheRedT.com/customer-info

US Lumberyards Expected New Tariff, ‘Domino Effect’ on Prices

HDW Making Corporate Move, Texas Expansion Hardware Distribution Warehouses Inc. has announced its purchase of a 670,000-square-foot facility in Marshall, Texas, that will serve as the company’s new corporate headquarters. TheRedT.com/hdw-marshall-tx

Home Depot Customer Information Exposed A spreadsheet containing about 8,000 Home Depot customers’ transaction details and personal information was briefly

A new U.S. tariff on imported Canadian softwood lumber, such as pine, is the latest change to an old trade debate between the two countries. TheRedT.com/lumberyards-tariff

Jet.com Founder Helps Walmart Innovate Walmart is making some noticeable company changes with the help of an e-commerce innovator it picked up with the purchase of Jet.com. The innovator is Marc Lore, founder of Jet.com–the online retailer Walmart bought for about $3 billion in 2016. TheRedT.com/jet-walmart

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Sears Holdings Corp. has now had three people serve in the role of chief financial officer in less than 12 months. TheRedT.com/sears-cfo

Ace Hardware Restructuring Its Distribution Network Ace Hardware Corp. plans to restructure its East Coast distribution network, which means closing its Emery-Waterhouse warehouses and building a new facility. TheRedT.com/ace-distribution

Lowe’s Continues Canadian Expansion With RONA Lowe’s continues expanding in Canada with Lowe’s stores and with Canadian retailer RONA-branded locations. TheRedT.com/rona-expansion

Who Will Get H.H. Gregg’s Appliance Customers? H.H. Gregg filed for bankruptcy and announced it would close all 220 retail stores, leaving up for grabs its $1.9 billion in annual sales of electronics and appliances. TheRedT.com/hhgregg

Competing for Employees in a Workers’ Market Online and big-box retailers have added another factor to the competition for workers: new and expanded warehouses that pay more than minimum wage for low-skill jobs. TheRedT.com/warehouse-workers

Exec Leaves Sears Holdings to Lead Pier 1 Imports

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Sears Holdings’ Kmart president and chief member officer Alasdair James left the company in March and is now heading up Pier 1 Imports as president and CEO. James worked for Kmart, which Sears Holdings owns, since 2014. TheRedT.com/sears-pier-1

Walmart Cuts More Corporate-Level Jobs

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After announcing 1,000 corporate job cuts in January, Walmart is making another round of layoffs at its Arkansas headquarters. TheRedT.com/walmart-corporate-cuts

Home Hardware Changes Its Marketing

Amazon Charging Sales Tax in More US States Effective April 1, Amazon started charging sales tax everywhere that has a state sales tax. TheRedT.com/amazon-sales-tax

Ace Hires Grainger VP to Oversee Wholesale Business Ace Hardware Corp. hired Grainger executive Mark Spanswick to be president and general manager of Ace Wholesale Holdings LLC. TheRedT.com/ace-grainger

Rick McNabb joined on at Home Hardware Stores Ltd. as vice president of marketing and sales just over a year ago. In that time, he has been developing a plan to help freshen the company’s brand while staying true to its family-oriented corporate culture that values tradition.

Ace Canada Team Takes Shape Amid Move to Lowe’s Toronto-Area Offices Ace’s operations are in the process of relocating, following the announced closing of Ace Canada’s Winnipeg operations later this year. The team will be relocated mainly to Lowe’s Canada’s Toronto-area offices, which previously served as Lowe’s customer support center.

Orgill Begins Shipping From Post Falls, Promises Freight Reduction to Western Canada Orgill has announced that its Post Falls, Idaho, distribution center is now fully operational and is serving customers throughout Western Canada. According to Orgill, retailers throughout the region can expect a 25-percent reduction in freight costs as well as shorter delivery times and more efficient service.

Canadian Tire Puts Push on Private-Label Products Canadian Tire has been backing its private-label products for a decade, when, under Mark Foote, the company was gaining about 25 percent of its sales from house brands and aspiring for 50 percent. For the full story of each of these briefs, visit hardlines.ca/hardwareretailing.

AD INDEX Ace Hardware....................................................37 www.myace.com; 630-990-6900

Franklin Sensors .................................... Bellyband www.franklinsensors.com; 208-918-2405

Phifer Wire..................................................... BC www.phifer.com; 800-841-9473

Ajax Wire Specialty Co.................................... 24 www.ajaxwire.com; 855-966-2529

Hillman Group....................................................45 www.hillmangroup.com; 800-800-4900

PPP Manufacturing Co.................................... 24 www.pppmfgco.com; 800-473-1803

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

Independant Garden Center Show....................23 www.IGCChicago.com

PRO Hardware ..................................................29 www.prohardware.com; 303-792-3000

Bonide ...............................................................14 www.bonide.com; 315-736-8231

IPG.....................................................................32 www.itape.com; 888-474-8273

Safety Works Inc. ..............................................11 www.safetyworks.com; 800-969-7562

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

Lincoln Products................................................39 www.lincolnproducts.com; 844-223-4770

Red Lion ............................................................55 www.redlionproducts.com; 844-250-4981

Chapin Mfg. .................................................... 15 www.chapinmfg.com; 800-950-4458

Magna Industries Inc.........................................62 www.magna-insto.com; 800-969-3334

Sears Hometown Store .................................. 22 www.OwnASearsStore.com

Char-Broil ...........................................................25 www.charbroil.com; 866-239-6777

Mars Comfort-Aire...............................................7 www.marsdelivers.com

Smanos Inc. .................................................... 33 www.smanos.com/us; 214-396-8868

Cole’s Wild Bird ................................................ 9 www.coleswildbird.com; 877-426-8882

Master Magnetics Inc. ......................................26 www.magnetsource.com; 888-293-9190

Starrett............................................................ 63 www.starrett.com; 888-674-7443

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

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

Sunnyside Corporation.................................... 27 www.sunnysidecorp.com; 800-323-8611

Dutton-Lainson Company..................................68 www.dutton-lainson.com; 402-462-4141

NRHA Cost of Doing Business .......................... 53 www.TheRedT.com/CODB2017

Threesixty Innovation Ltd................................ 54 www.360innovation.co.uk; +44(0)1773 605100

ECI Software Solutions .....................................65 www.ecirocksolid.com; 800-588-5128

NRHA Health Insurance .................................. 67 www.cbigi.com/nrha-program

Titan Tool ........................................................ 31 www.titantool.com; 800-526-5362

EZ-FLO International Inc.................................. IFC www.EZ-FLO.net; 800-486-5256

NRHA Retail Management Certification Program..71 www.nrharmcp.com

True Value....................................................... 17 www.truevaluecompany.com; 888-291-7229

Fiskars Brands Inc. ............................................47 www.fiskars.com; 866-348-5661

Old Masters .................................................... 64 www.myoldmasters.com; 800-747-3436

Wooster Brush Co.............................................13 www.woosterbrush.com; 800-392-7246

Fluidmaster...................................................58-59 www.fluidmaster.com; 949-728-2000

Orgill Inc. ................................................. 72-IBC www.orgill.com; 800-347-2860

World Pet Association .......................................54 www.SuperZoo.org

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

June 2017 | HARDWARE RETAILING

Last Word

Email Metrics You Should Be Measuring

ne way to ensure you’re using email to its full potential as a marketing tool is to regularly check analytics provided by your email marketing provider, which may be a service like Mailchimp or Constant Contact. While each email platform provides certain analytics tracking features, there are a handful of stats you should always keep your eye on. Being mindful of your email analytics helps you better understand what your customers respond to and can help you improve your content.

1. Open Rate How many people are actually opening your emails? If you see high open rates for certain emails and low open rates for others, compare the differences between the types of content. If you know your open rate, you can try new subject line structures to increase opens and use the data to evaluate what’s working with your customers.

Overview

2. Unsubscribes 250 Recipients List: Loyalty Members Subject: We’re Helping You Keep It Cool

Delivered: Mon., June 5, 2017 at 1:00 PM View Email l Download l Print l Share

1 Open Rate

38%

Click Rate

16%

List Average

37%

List Average

15%

Paying attention to your unsubscribe rate is essential to make sure your contact list isn’t decreasing too rapidly. If you’re trying something new, watch the unsubscribe rate to see how your customers are responding. If you’re noticing high unsubscribe rates, consider changing how frequently you send emails or rethink your messaging.

3. Time of Day 95 Opened

40 Clicked

1 Bounced

0 Unsubscribed

Opens

3 24-Hour Performance

Clicks

40 35

If you send your email first thing in the morning, but most of your customers don’t read the email until late in the evening, you may want to consider changing the time of day you send your messages. You want to send emails when your customers are most likely to check their inbox to ensure you catch their eye.

30 25

4. Link Clicks

20 15 10 5 0 1PM

5PM

9PM

1AM

5AM

9AM

4 Top Links Clicked

www.joeshardware.com

www.joeshardware.com/BrandXCooler

www.joeshardware.com/BrandYCooler

Top Email Clients: Desktop

65.3%

Mobile

For more information about getting started or improving your email marketing efforts, visit TheRedT.com/email-tools.

HARDWARE RETAILING | June 2017

34.7%

Are customers engaging with the links in your emails? If you’re including multiple links in a single eblast, which links are grabbing customers’ attention, and why might this be? Understanding how your customers engage with your emails can help you improve future messaging to drive more traffic to your website.

5. Device Type It’s important to note how your customers access your email, whether on a phone or a computer, if your email marketing provider offers that information. If most of your customers read your emails on a phone, but your emails aren’t designed for easy viewing on mobile screens, you could run into high unsubscribe rates or low engagement.

YOUR TEAM, YOUR BUSINESS, YOUR FUTURE

$ 6.5M COMBINED ROI FOR OWNERS

$60,000 AVERAGE ROI PER STUDENT NRHA’s Retail Management Certification Program is a six-month college-level course designed to teach key employees, future owners and new owners industry-focused business practices across all areas of running and operating a retail hardware, lumber or home improvement business. Students work on improving their businesses and providing owners an immediate ROI on their attendance (averaging five times the cost).

110+ GRADUATES JOIN THE INDUSTRY’S MOST COMPREHENSIVE EDUCATION PROGRAM

Thank you to these companies for supporting independent retailers by providing scholarships:

FOR MORE INFORMATION, GO TO NRHARMCP.COM

NOW AVAILABLE : Free Training Resources If you are looking to establish a training program or enhance your current offering, NRHA has you covered! Download these valuable FREE training resources today!

Trainer’s Guide

Financial Basics

Trainer’s Toolbox

This quick-start guide gives trainers the knowledge they need to start a formal training program, or make their existing program better.

This library of resources will help retailers and employees better understand and use the data from NRHA’s Cost of Doing Business Study.

This series of short videos, worksheets and PowerPoint presentations gives trainers easy-to-use lessons on a variety of valuable topics.

Visit www.nrha.org/freetraining to download your free training resources today!

Pro.

Con.

At Hyde Tools, quality is non-negotiable, same as it has been since 1875. That’s why our line of Black & Silver® tools are made with .055" thick, perfectly heated and tempered high-carbon steel blades. And with a durable nylon handle, ground chisel edge and secondary crack opener grind, our multi tools are ready to dig under stubborn paint and debris. These are time-tested tools for your pro and serious DIY customers — and we guarantee them forever.

WATCH OUR VIDEO TO SEE HOW QUALITY SETS OUR TOOLS APART.

Jackie and Michael Sacks Round Top Mercantile Company Texas

“Orgill is extremely professional, and we know they’re here for us. They stand behind us 100 percent.”

Orgill Stands By Us From Expansions to Programs, Orgill Helps Us Make Our Business Better

Staying Competitive

Trying New Things

“Orgill’s pricing helps us stay competitive while stocking

“Working with Orgill, we found many areas where we

the latest and greatest items.”

could expand our offering.”

Knowing What We Need

Getting the Word Out

“When we expanded, Orgill helped us every step of

“Orgill’s advertising programs help us reach more

the way, from selecting which products would work to

customers in our market, and help us increase our

merchandising the store.”

bottom line.”

Drive Up Margins with

SCREEN REPAIR Why Provide Back Room Screen Repair Services? Big box stores don’t offer it Increases your store traffic Profit margins up to 70% Opportunity to promote your other back room services

Phifer Is Here To Help! We manufacture a full line of Made in the U.S.A. products for your screen repair service, including aluminum, fiberglass, pet-resistant and sun protection screening. We can provide banners and other marketing materials to help support your screening services. Phifer has special order and drop ship programs in place for all major wholesalers, buying groups and co-ops.