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Hardware Retailing June 2018

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Serving Hardware, Home Center & Building Material Retailers

Generations in Harmony Promoting Teamwork at Every Age 36

Smart Technology Is Transforming Plumbing 56

VOLUME 214 • ISSUE 6 • JUNE 2018 • HARDWARERETAILING.COM

Investing at Home Is Where Independents Beat Amazon 64


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VOLUME 214 • ISSUE 6 • JUNE 2018 • HARDWARERETAILING.COM www.mitm.com 800-553-9053

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Serving Hardware, Home Center & Building Material Retailers

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© 2018 Apex Tool Group, LLC ATG-4056

ons ony

Could you be running your business more effectively? Participating in the Cost of Doing Business Study gives you access to tools that can help you evaluate your business. With the study, you can determine how your average transaction size, payroll expenses and profits measure up to other retailers.

e 36

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Access valuable resources. When you participate, you receive a copy of the 2018 Cost of Doing Business Study (valued at $499) for free. Plus, NRHA will give you a Personalized Financial Analysis complete with what-if scenarios, your ratios, composite financial statements and a strategic profit model. Don’t miss out on these tools!

Smart Technology Is Transforming Plumbing 56 Investing at Home Is Where Independents Beat Amazon 64

“Comparing the industry average ratios to our store helps when we’re having conversations about a new store location because it gives us real numbers to look at.” Neal Aissa | Tarzian Hardware FOR MORE INFORMATION, GO TO THEREDT.COM/CODB.

5/22/18 10:20 AM

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Invest in your managers. The Foundations of Leadership Program is a 16-week, college-level online course. It teaches new and upcoming home improvement retail managers to be stronger leaders and communicators so they can work toward solving business issues like employee engagement, productivity and turnover. June 20 is the application deadline for the summer session.

FOR MORE INFORMATION AND TO APPLY, VISIT NRHA.ORG/RLI.


Serving Hardware, Home Center & Building Material Retailers

Generations in Harmony Promoting Teamwork at Every Age 36

Smart Technology Is Transforming Plumbing 56

VOLUME 214 • ISSUE 6 • JUNE 2018 • HARDWARERETAILING.COM

Investing at Home Is Where Independents Beat Amazon 64


Why Provide

Screen Repair Services? Big Box Stores Don’t Offer It Increase Store Traffic Increase Margins Opportunity To Promote Other Store Services


QUAD

SELF

CLEAR

CENTERING

COATING

2X

DURABILITY

RIVET

The Crescent/Lufkin Self-Centering tape makes centering jobs easy.

DUAL

CLEAR

RIVET

COATING

The Crescent/Lufkin General Use tape is perfect for every situation.

Cool new tapes. Trusted brand. Both of these new tapes from Crescent/Lufkin® give your customers cool new features and the confidence of that comes with buying a trusted brand. Plus, our new self-centering and general use tapes offer premium design features like metal core posts for increased durability and drop strength and matte nylon-coated blades for improved readability and longer blade life. Crescent/Lufkin gives you more. © 2018 Apex Tool Group, LLC ATG-4056

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Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger

136 N. Delaware St. #200 Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: nrha.org SOCIAL MEDIA LINKS

@NorthAmericanRetailHardwareAssociation @nrha_official North American Retail Hardware Association @nrha_official HEADQUARTERS STAFF

FEATURES EDITOR Melanie Moul PROFILES EDITOR Renee Changnon ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber MARKETING AND RESEARCH COORDINATOR Hilary Welter SENIOR DESIGNER Lynnea Chom

GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan

PRODUCTION SERVICES PRODUCTION MANAGER Nancy A. Vondersaar

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

SALES AND PRODUCTION ASSISTANT Freda Creech

MEMBER SERVICES

CIRCULATION

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

CIRCULATION DIRECTOR Richard Jarrett

EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

NRHA would like to introduce T.J. Comstock, owner of Northwest Hardware in Billings, Montana. In May, Comstock was elected as the incoming chairman of the NRHA Board of Directors. He will serve in the position for the next 12 months. As chairman, Comstock looks forward to helping the association serve its mission by contributing to the development of valuable educational resources and new programs for retailers.

MULTIMEDIA DESIGNER Graeme Haase

PRESIDENT AND CEO Bob Cutter

MEMBER GROWTH AND DEVELOPMENT MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org

Welcome, T.J. Comstock!

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES

“NRHA is important to our industry because it connects retailers across wholesale affiliations. The association provides the timely and relevant information we need to stay informed and improve our businesses.”

PHONE 314-432-7511 FAX 314-432-7665

SALES/NRHA VENDOR PARTNER RETAIL LEADERSHIP INSTITUTE EXECUTIVE DIRECTOR Scott Wright, 317-275-9417, swright@nrha.org DIRECTOR OF RECRUITMENT Tom Marcum, 317-275-9430, tmarcum@nrha.org

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

STATE AND REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 5000 Woodward Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, OR 97305 (UPS, FedEx); P.O. Box 17819, Salem, OR 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; AK, ID, OR, WA SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; AR, KS, LA, MO, NE, NM, TX

DIRECTOR OF SALES Lowell Huffman MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 317-275-9403, chris@millermediainc.net WEST REGION MANAGER Jon Dawson, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, jdawson@nrha.org NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9414, Fax: 317-275-9403, jharper@nrha.org GREAT LAKES REGION MANAGER Lowell Huffman, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9443, Fax: 317-275-9403, lhuffman@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

NRHA MISSION

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

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00. Periodical postage paid at Indianapolis, Indiana, and additional mailing offices. POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2018 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

2

HARDWARE RETAILING | June 2018

Steve Fusek, Fusek’s True Value, Indianapolis SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas


Contents JUNE 2018 | VOLUME 214 | ISSUE 6

36

OPERATIONS

Generation Collaboration

Retailers across the country are hiring employees from multiple generations. As the silent generation, baby boomers, Generation X and millennials mingle, independent home improvement retailers are learning that age diversity in the workforce poses plenty of obstacles and opportunities. Hardware Retailing spoke with employees from all generations to get their perspectives.

64 RESEARCH

Out of the Jungle Do your customers know they enrich their community when they choose to shop local businesses over Amazon? Learn more about the effect shopping local has compared to Amazon in the newly released Home Sweet Home: Locals vs. Amazon study.

Departments 06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 12 . . . . . . . . . . . . . . . . NRHA News 16 . . . . . . . . . . . . . . . . . . . . . Trends 20 . . . New Products by Industry Edge 32 . . . . . . . . . . . . . . . . . . Checkouts 70 . . . . . . . . .Newsmakers/Calendar 74 . . . . . . . . . . . . . . . . . . Last Word

48 OPERATIONS

Prepping the Next in Line For many retailers, passing the business along to their children is a long-held dream. But each generation has its own notions of success. Two retailers provide their perspective on successfully transitioning businesses from one generation to the next. 4

HARDWARE RETAILING | June 2018

56 CATEGORY SPOTLIGHT

Siri, Start the Spin Cycle If you haven’t considered how smart plumbing products and accessories can differentiate your business, you could be flushing money away. Learn about some of the latest smart plumbing products and what’s next for the smart plumbing category.

On the Cover Gwen Maffei (left) and Donna Minnick of Akard True Value in Zionsville, Indiana, both know that businesses that choose to embrace the skills of different generations bloom bright . NRHA photo by Kelsey Truex


BUILDING THE SUCCESS OF INDEPENDENT RETAILERS FOR 65 YEARS

$6.25 Billion • 79 Distributor Members • Thousands of Retailers Since 1953, PRO Group, Inc. has followed the same philosophy – develop marketing strategies and support programs to help distributors, manufacturers, and retailers successfully meet the competitive challenges of this ever-changing marketplace. By continually analyzing current and prospective markets, PRO Group pinpoints opportunities that will strengthen the network and benefit the bottom line of all members. From digital and print advertising to annual meetings and events, PRO has the tools to help distributor, manufacturer, and retail partners remain competitive, boost sales, and adapt to change.

ADVERTISING

MERCHANDISING

MEETINGS

Learn more about PRO Group, Inc. by contacting Shari Kalbach, Vice President, at 303.792.3000 or shari.kalbach@pro-group.com. Find us online at www.pro-group.com


On the Web

SHOP LOCAL

You vs. Amazon: Spread the Word Do your customers know that, as an independent hardware business, you recirculate seven times more of your revenue to the local economy than Amazon? Download free resources at TheRedT.com/local-impact to start spreading the word so your community thinks twice before they choose Amazon over a local retailer.

PROFILE

South Dakota Retailers Partner to Give Back When they realized their local food pantry was low on supplies, Dakota Hardware and Heisler’s Hardware came together to host a friendly competition between their two communities to see which could collect more food items. See what the two retailers learned about community outreach at TheRedT.com/food-drive.

EXPERT INSIGHT

Management Tricks for Different Generations With five generations currently in the workforce, managing morale in your operation may be a challenge. Visit TheRedT.com/generations to learn from Mark Harris, a human resources consultant, about which management styles resonate with each age group and how to be an effective leader for all generations. 6

HARDWARE RETAILING | June 2018

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is made for all employee levels. Visit nrha.org to see what’s available and to download lessons. Prepare Your Staff for Summer It’s time to refresh your employees’ selling skills and product knowledge on some of the most popular summer DIY projects. This month’s Trainer’s Toolbox videos will present a few retailer tips on what your staff needs to know this season.

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail


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Independent Thinking

The Path to Excellence

A

“Start by investing

in your key people and in their ongoing education. Get them invested in serving not only your customers, but your community.

”

s we go to press, we have just returned from the National Hardware Show® and North American Retail Hardware Association (NRHA) All-Industry Conference in Las Vegas with a tablet full of notes, a wallet full of new business cards and the memories of a productive show still fresh in our minds. The highlight of the show for me was the Young Retailer of the Year award ceremony, which took place the night before the show started. This year’s event was inspirational in so many ways. First, the eight honorees for 2018 represent a strong cross-section of our industry, with all different store types, wholesaler and co-op affiliations, geographic locations and various market types represented on one stage. Each of these young men and women was honored for their career accomplishments, their ongoing education and the dedication to serving their communities. While it is always humbling for me to hear all of their accomplishments and educational pursuits at such an early stage of their careers, what resonates most for me is how they go above and beyond in serving their communities. All of the ways these young retailers lead, support and serve their communities to keep them vibrant and thriving are simply amazing in the context of everything they are doing to grow their businesses. They plan and execute charity events; they sit on the boards of local government and civic organizations; they sponsor countless community groups and teams—the list goes on and on. What I’ve come to realize by listening to their stories is that community service is embedded in their DNA. It starts by serving customers in the aisles of their stores and then extends into the communities they serve. These Young Retailer of the Year honorees embody the idea of servant leadership, a concept we teach students through the Retail Leadership Institute, in both our Foundations of Leadership program and the Retail Management Certification Program. It goes beyond leading employees. It’s about taking responsibility for the people in your community and leading by example. It’s what sets independent retailers apart from the competition, and whether you realize it or not, it’s your competitive advantage in the marketplace. At NRHA, we understand how difficult it is to find and retain good employees. Like you, we constantly hear all the “noise” about millennials, their work ethic and the employment challenges of this particular generation. But from our vantage point, it’s an inaccurate generalization. Along with getting to know our Young Retailer of the Year honorees each year, I’m fortunate to get a firsthand glimpse into the future of our industry with every student who comes through NRHA’s Retail Management Certification Program and the students who participate in the Foundations of Leadership program. Some of these students were honored with the Young Retailer of the Year award this year, which made this event even more rewarding for me, as someone who has been a part of their journey. I encourage you to follow the path to excellence that our Young Retailer of the Year honorees have taken. Start by investing in your key people and in their ongoing education. Get them invested in serving not only your customers, but your community. Be a servant leader to their ongoing development. Who knows? Perhaps you have a future Young Retailer of the Year who just needs to be inspired.

Scott Wright, Executive Director, Retail Leadership Institute

swright@nrha.org

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HARDWARE RETAILING | June 2018


Taking Care of Business

The More Things Change…

W

“Each generation

has its own set of experiences that shape their worldview, and this worldview shapes the way they approach things like communications and work.

”

hen I was a teenager, hard rock music was turning most of my friends into devil worshippers. Those of us who weren’t turned were entitled, greedy, self-indulgent sheep who did nothing but watch TV for hours and didn’t know the meaning of a hard day’s work. Of course, most of these shortcomings were brought on by the fact that we were all raised by hippie parents and we came of age during an era where “greed was good” and even Coca-Cola was “new.” If you asked most “adults” in the 1980s, the outlook for the future was pretty dire once my MTV-watching, Atari-playing, Ozzy Osbourne-listening, Walkman-wearing cohorts hit the workforce. When my generation did get jobs and moved from employees to supervisors to managers to business owners, it turns out the world didn’t come to an end. For some of you reading this, it was probably my generation that worried you. But for your parents, it was the long hair you had or the miniskirts you wore or whatever it was you may have smoked that labeled you and your contemporaries as the generation that would ruin it all. I guess someday, there will inevitably be a generation that does take society down, but for now I think, for all the bluster about how things are so different from one generation to the next, not much has really changed. In this month’s issue, we take a look at managing employees across generations and hopefully provide some insights into how to make the most out of your multigenerational teams. This issue looks at all of the generations that are in today’s workforce, which includes the silent generation, baby boomers, Generation Xers (that’s me!), millennials and the incoming Generation Z. It’s no surprise there can be miscommunication or conflict in the workplace when you consider that, in any given operation, you might have employees who were born before the world knew who The Beatles were to employees who are too young to know who The Beatles are. It’s important to note that this may be one of the first times the labor pool has shown such age diversity. While this range of experiences can be challenging, it is also a fantastic opportunity if you can tap into the best aspects of every generation. The first step to doing this is to keep an open mind. Remember that, regardless of when someone was born, there are some fundamental practices that motivate most people to do a good job. Things like showing respect for their time, ideas, input and contribution to the success of your operation can help foster better communication with employees of any age. It is true that many of the younger folks today operate with a different set of sensibilities than those in my generation or my mom’s generation. This can be hard to understand but it is nothing new. Each generation has its own set of experiences that shape their worldview, and this worldview shapes the way they approach things like communications and work. If you want to communicate with and motivate any generation, you might not understand their perspective but you have to respect it. For more on motivating across generations, read the article on Page 36. While you do that, I’m going to crack open a cool Crystal Pepsi, listen to some of my albums backward and play Donkey Kong.

Dan M. Tratensek, Publisher

dant@nrha.org

10

HARDWARE RETAILING | June 2018


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NRHA News

2018 NRHA All-Industry Conference

T

he 2018 North American Retail Hardware Association (NRHA) All-Industry Conference, held in conjunction with the National Hardware Show® in Las Vegas, brought together the independent industry for networking, education and fun. Look at the highlights and read a recap of the annual event at TheRedT.com/2018-conference.

1. The Young Retailer of the Year program honored eight retailers ages 35 and younger with the award that celebrates industry achievements. 2. The NRHA Village, home of the NRHA All-Industry Conference, was the place for attendees to learn more about the association. 3. A panel of retailer judges scoured the show floor to find new and interesting products during the 52nd annual Retailers’ Choice Awards. 4. Three keynote speakers took the stage during the conference, including Mina Starsiak Hawk and Karen E Laine of HGTV’s “Good Bones.” 5. Retailers spent time networking with their peers and vendors on the show floor and in the NRHA Village. 6. In their panel discussion, the 2018 Top Guns talked about the future of the independent industry and how retailers can differentiate their businesses.

1

2

3

5 12

HARDWARE RETAILING | June 2018

4

6


BEAUTY IS ONLY SKIN DEEP. IT’S WHAT’S INSIDE THAT MATTERS.

YOU CAN SERVICE IT OR CHAMPION IT. It began with a spark; one that ignited a will to win and a brand like no other. Now that same spark inspires our new line of batteries, filters, wipers, lighting and spark plugs. Four wheels, two wheels or no wheels—if you want to bring out the best in your machine, choose Champion®.

CHAMPIONAUTOPARTS.COM


NRHA News

Management Program Questions, Answered

T

hinking about investing in your future leaders? NRHA’s Retail Management Certification Program (RMCP) is designed to enhance the retail operations knowledge of top-performing employees. It provides leaders with the skills they need to engage in strategic planning, decision-making and high-level leadership activities. Below, we answer some of retailers’ most frequently asked questions about RMCP.

I’m not sure how this program applies to my business. What topics does it cover? RMCP is a college-level program designed specifically for independent home improvement retailers and staff. Over six months, the program covers topics including finances, marketing, merchandising, human resources and more.

I haven’t been in a classroom in years. How do I know I’ll be able to learn this way? This isn’t a course that requires writing papers and taking tests. It involves simulations, small group activities, case studies, role-playing exercises and best practices sharing sessions that are directly applicable to your business.

How is it different from any other management program? The independent home improvement industry is unique. While students come from different business types, professional backgrounds and geographic locations, everyone in the room speaks the same retail language. Because of this, the program is much more applicable to your specific professional needs than other advanced leadership training programs and courses.

Join a Live Q&A June 21! Want to hear it straight from the source? On June 21, NRHA is hosting a live Q&A webinar with program graduates to allow interested retailers and their employees to ask questions in real time. Want to know more about the workload? Time commitment? Business improvement projects? Biggest challenges? This unscripted session is your chance to get honest answers. Register at TheRedT.com/rmcp-qa.

Register TODAY!

Join us at the:

SAVE $100 with Code HR100 Retailers, Co-ops and Wholesalers REGISTER NOW at www.eretailersummit.com

November 7-9, 2018

Hear from and meet

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Retail eCommerce Leaders

Brian Fricano

Joe Derochowski

Ryan DeChance

Alyssa Steele

Founder/CEO SustainableSupply.com

The NPD Group

The Grommet

eBay

Sponsors:

Media Sponsors:

Manufacturers and Distributors: Interested in participating? To request your invitation contact Sonya Ruff Jarvis at 203-295-3385 or sonya@eretailersummit.com


5 Financial Points You Should Be Watching

W

hen it comes to the financial side of your business, are you paying close attention to the metrics that have a large impact on your bottom line? Below are five ways participating in NRHA’s annual Cost of Doing Business Study can help you accurately evaluate your business. The only way to access the study (valued at $499) and its accompanying resources for free is to participate by June 30 at TheRedT.com/codb.

1 2

Average Transaction Size The 2017 Cost of Doing Business Study shows that the average transaction size at a high-profit hardware store is $30 and $22 at an average store. It’s time to evaluate ways to increase transaction size at your business.

Net Profit Before Taxes Last year, net profit at a high-profit hardware store was 10.4 percent, while at an average store it was 4.2 percent. Determine how you can make adjustments to hit a similar net profit before taxes this year.

3 4 5

Payroll Payroll expenses make up 22.2 percent of annual income at a high-profit hardware store, while average stores dedicate 20.2 percent to payroll. Are there ways you could be more effective with your payroll dollars?

What-If Scenarios Participants receive a tool to help them think through financial scenarios. For example, if you think your cost of inventory may increase by 1 percent, you can manipulate other areas to see what changes need to be made.

Hot Topics Do you wonder what other retailers spend on expenses like health insurance, employee training and wages? The 2018 Cost of Doing Business Study will report data on these hot topics and more.

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June 2018 | HARDWARE RETAILING

15


Trends

Sponsored by HIRI | HIRI.org

Home Improvement Products U.S. Home Improvement Market Annual Growth Graph represents data from both consumers and professionals Market Shows Growth The Home Improvement Research Institute (HIRI) has released its Home Improvement Products Market Forecast Update. The study provides updated estimates of the size and overall value of the home improvement market. It also sheds light on the growth of key categories and changes in consumer and professional home improvement trends.

10% 8% 6.5%

6%

Overall, the pace of growth of home improvement product sales is expected to rise by 5.3 percent in 2018. HIRI’s study reveals that lumber and building materials saw the biggest year-over-year growth in 2017.

5.7% 5.5%

4.8%

4% The annual growth rate of the U.S. home improvement products market rose from 5.5 percent in 2016 to 5.7 percent in 2017. HIRI predicts it will grow to $386.6 billion in 2018, reflecting a 5.3 percent growth rate. HIRI also estimates that, by 2022, sales could reach as much as $445.6 billion.

6.2% 6.0%

5.3%

3.5%

2% .5%

0% -2% -4% -6% -8%

2018

2017

2016

2015

2014

2013

2012

-9.3%

2011

-10%

2010

Though the rate of growth for home improvement product sales is expected to decline toward 2022, independent home improvement retailers should take note that HIRI estimates overall sales will continue to climb. Retailers should continue to cater to both professional and DIY customers, the data indicate.

2009

Applied to Retail

Source: Home Improvement Products Market Forecast Update

Home Improvement Product Sales by Category HIRI tracks several categories in its market forecast reports. Below are four that apply to hardware retailers and suppliers. For access to additional categories join HIRI at HIRI.org.

Hardware

Plumbing Supplies

2017 sales: $14.6 billion 2018 expected sales: $15.3 billion

2017 sales: $24 billion 2018 projected sales: $25.6 billion

Tools

Electrical Supplies

2017 sales: $18.5 billion 2018 projected sales: $19.5 billion

2017 sales: $25.4 billion 2018 projected sales: $27 billion

Source: Home Improvement Products Market Forecast Update

HIRI is a member-driven nonprofit dedicated to conducting home improvement research exclusively for its members. Covering contractors and professionals, categories and channels, HIRI’s efforts help leading manufacturers and retailers evaluate market conditions to inform their businesses. To learn more about HIRI and to become a member, visit HIRI.org. 16

HARDWARE RETAILING | June 2018


comfort, room by room

www.marsdelivers.com


DRIVEN TO BE THE BEST–

OF BOTH WORLDS Some think of Do it Best as the industry leader in hardware distribution and retailing expertise. Others know Do it Best as the co-op that serves the largest and most successful lumber dealers in the country. The fact is, both are correct. Do it Best is the only co-op that serves as a single-source provider with industry leadership in both hardware and LBM. Why do we work so hard to maintain relationships, deliver proven programs and support members with dedicated expertise on both sides of the industry? Because we want to give all members a simpler, streamlined ordering process, backed by strategic purchasing power and sophisticated business strategies. As a result, we offer incredible opportunities for growth, regardless of the types of customers our members serve. It’s an approach that has proven to be just as successful for single-location retailers as it is for large multi-location businesses. FROM LBM TO HARDWARE AND BEYOND, WE’RE DRIVEN TO BE THE BEST – IN EVERYTHING WE DO.

Call us today at 888-DO IT BEST (364-8237). independentsdoitbest.com

“ Do it Best is driven to help growth-minded entrepreneurs serve their customers with outstanding service and unbeatable selection.”


— Nick Talarico Vice President of Sales & Business Development


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

2

1 Seeing new products is one of the greatest advantages for retailers attending the National Hardware Show®. In order to capture that initial excitement you get when imagining adding a new product to your stock, Hardware Retailing, the National Hardware Show and its weekly digital communication, Industry Edge, collaborated to feature this joint section. For more products and trends, sign up for Industry Edge at industryedge.nationalhardwareshow.com.

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HARDWARE RETAILING | June 2018

1. Tick Removal Tool

2. Organic Fertilizer

The Original Tick Key™ is a tick removal device that uses natural forward leverage to remove the entire tick, head and all, from a person or pet without touching or smashing the tick's body. It is fabricated from high-strength anodized aluminum and is available in 19 metallic and matte finishes. The flat design makes it easy to store in a wallet, on a keychain or on a pet’s leash.

Final Stop® Yard & Garden Insect Killer Spray is a solution of natural ingredients that works to kill insects immediately and delivers continued protection for weeks. Active ingredients include rosemary, sesame, peppermint, thyme, cinnamon and garlic oils. The spray comes in a 24-ounce ready-to-spray bottle, a 24-ounce concentrated formulation and a 32-ounce hose-end spray bottle.

Original Tick Key 860-618-3072 or tickkey.com

Dr. Earth 707-448-4676 or drearth.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

4

3 3. Solar Garden Light

4. Locking Tie Down Straps

The Poppy Solar Garden Light is made with all-weather steel construction to light gardens, pathways, planters, flower boxes and more. Two LEDs with 20 lumens of output allow for a 10-hour runtime after a six-hour charge. No wiring is necessary, and the light automatically turns on at dusk. A replaceable AA rechargeable battery is included.

Lockstraps Tie Down Straps are straps that prevent theft with a combination locking carabiner on both sides of the strap. A stainless-steel cable on the inside of the Lockstraps strengthens it. This product secures boating, fishing, camping and landscape equipment and many other tools and items commonly left outside.

Desert Steel 316-282-2244 or desertsteel.net

Lockstraps 951-434-0064 or lockstraps.com

June 2018 | HARDWARE RETAILING

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

5

6

5. Compacting Tool

6. Gutter Protection

The AmpTamp™ is a compacting tool that uses a granular damping chamber to amplify tamping efficiency while reducing fatigue, recoil, injury and breakage. The weight can be altered by adding water, sand or steel ball bearings to the hollow chamber, which also brings more energy into the ground upon impact.

Gutter Cups® stop leaves, pine needles and other debris from clogging gutters and allow free flow of rainwater even when completely covered by debris. The individual segments fit end to end inside the gutter, forming a multiple-barrier protection system. Gutter Cups cannot be seen from the street and fit standard residential gutters. No tools or clips are required for installation.

AmpTamp 831-854-7696 or amptamp.com

Supernova Products 858-997-3240 or guttercupsguard.com

QUICKSCREWS THE #1 SELLER OF WOODWORKING SCREWS IN AMERICA

Quickscrews Retail Program is the perfect fit for Lumber Yards, Hardware stores, and Big Box stores. Our Retail Program is available in multiple quantities with a wide selection of screws for a variety of applications. The labeled clamshells feature our Icon System and Color Coded Application System, created to make it easier than ever for customers to find the screws they need.

CONTACT YOUR SALESMAN TO ORDER

(800) 743-6916

www.quickscrews.com 22

HARDWARE RETAILING | June 2018

CABINET INSTALLATION

DRAWER FRONT ADJUSTING

CABINET ASSEMBLY

HARDWARE

EXTERIOR

POCKET HOLE

DRIVE BITS & MORE


OUTVALUE THE NATIONAL CHAINS

TOP BENEFITS...

INCREASE STORE TRAFFIC NATIONALLY-RECOGNIZED BRAND EXCLUSIVE GIFTWARE PROGRAM CARD$MART RETAILER NETWORK STORE LOCATOR LISTING EXCLUSIVE “CARD SHOP” DEPARTMENT SIGNAGE

BRING CARD$MART INTO YOUR HARDWARE S TORE C A L L F O R A F R E E C ATA L O G T O D AY ! 8 0 0 . 6 5 4 . 6 9 6 0 W W W. C A R D S M A R T S T O R E I N A S T O R E . C O M

#CARDSMART


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

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24

8

7. Multipurpose Smart Alarm

8. Multi-Use Bags

The USI Electric MI106S Hardwired Smoke and Fire Alarm responds to both fast-flaming fires and slow, smoldering fires. The alarm provides the benefits of both photoelectric and ionization alarms in one device. The 120-volt AC hardwired alarm is suitable for houses, apartments and mobile homes. The battery will last for 10 years with no need for replacement.

True Liberty® Bags are all-purpose home and garden bags that are FDA-approved, BPA-free and made of 100 percent food-grade nylon. The bags can store food to extend its shelf life or to cook food, such as turkeys, in many ways. The Flock O’Bags contains a variety of bag sizes, including two chicken, two turkey and two goose bags along with 10 quail bags.

Universal Security Instruments 630-816-9066 or smokealarms.com

True Liberty Bags 888-800-2680 or truelibertybags.com

HARDWARE RETAILING | June 2018


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

9

10

9. Multifunction Flashlight

10. Bird Food

The MecArmy SGN Self Defense SGN7 model is a rechargeable flashlight with a personal attack alarm and can be used as a portable power bank to charge other electronic items. The alarm siren can reach 120 decibels and has a strobe light to attract attention. The SGN7 model of the SGN Self Defense flashlight comes in gold, black, silver, red, rose and blue.

Songbird Food from Wild Delight is a blend of seeds, nuts and dried fruits designed to attract species like grosbeaks, finches, cardinals, doves, nuthatches, thrushes, songbirds and other outdoor animals. The feed can be used in tube feeders with large holes, hopper feeders, platform feeders or spread on the ground. Songbird Food also includes added vitamins and minerals.

MecArmy mecarmy.com

D & D Commodities 800-543-3308 or wilddelight.com

SOLUTIONS

YOU CAN STICK WITH! Stucco masking tape is a durable, moisture resistant polyethylene backed tape with a rubber-based pressure-sensitive adhesive that bonds well to most surfaces. Stucco masking tape is designed to offer a high degree of conformability without excessive stretch. It is great for many construction jobs including seaming poly, floor and surface protection.

•

Tears easily

•

For exterior insulation and finish systems (EIFS) and stucco applications

•

UV resistant

•

Performs well in hot and cold conditions

8 8 8 - 8 9 8 -78 3 4

w w w. i t a p e .c o m | i n f o @ i t a p e .c o m


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

11

12

American Made & Profitable For Over 80 Years

11. Decorative Stones Stepping Stones from Spoontiques are highly detailed stones, approximately 10 inches in diameter, that can be used outside as part of garden decorations or hung inside using provided hardware. There are over 200 designs available along with both floor and counter display options. Spoontiques 800-225-5826 or spoontiques.com

12. Cordless Tiller/Cultivator

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

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HARDWARE RETAILING | June 2018

The Mantis 58-volt cordless tiller/ cultivator features two-speed, smart-digging technology that allows it to start instantly, run quietly and provide sufficient power to dig up existing garden beds or break ground for planting new ones. The tiller runs up to 30 minutes on a full charge and weighs 26 pounds. Schiller Grounds Care 800-366-6268 or mantis.com


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

13

13. Colorful Teapots The Price & Kensington Brights Teapot lineup consists of a range of 2-, 6- and 10-cup teapots in a variety of colors. The teapots are made from fine stoneware and can be used with or without the Price & Kensington filter. They are microwave- and dishwasher-safe.

14

World’s Highest Pressure Rating!

Working Pressure:

15,000 PSI

Heavy-Duty Quick-Release Grease Couplers

Burst Pressure:

22,000 PSI

Patented Design

LX-1403

Typhoon Homewares 866-598-0309 or typhoonhomewares.com

14. Wall Repair Kit RK Plasterplug is a patented wall repair solution designed specifically for drywall, where the empty space behind the wall is normally a problem. Plasterplug restores the wall integrity as opposed to a cosmetic patch. The end result is a flat surface, which can be drilled similarly to other nonrepaired walls. Wessel Industries 914-909-5285 or plasterplug.com

Single-Hand Operation

LX-1403-XL

Installation

Removal

• Innovative Design enables Quick-Release Coupler to firmly latch onto the Grease Fitting, enabling Hands-Free Greasing. • Integrated Non-Return Valve enables unit to be Disconnected Easily at Pressures up to 15,000 PSI (1034 Bar). • Integrated 1/8” NPT Connection. • High-Performance Hydraulic Seal. – No need to buy Spare Kits! Lumax.com | 844-660-6876

FREE

*

Demo Counter Merchandiser

*Inquire for Details

June 2018 | HARDWARE RETAILING

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

15

16 15. Elevated Pet Bath The Booster Bath® is a pet bath designed for home and light commercial use. It features a patented three-point harness to keep a pet stationary in the tub and has a U-shaped entry/exit area for the animal. A rubberized no-slip mat keeps the pet from slipping, and optional legs raise the tub to a higher level to ease the stress on the washer. Booster Bath 888-300-5139 or boosterbath.com

16. Bug Repellent Bug Soother is a natural bug repellent that uses a blend of vanilla and lemon scents to repel bugs. It is DEET-free, safe for children and pets and qualifies as an EPA-exempted product. It leaves no oily residue when applied and can be used for activities like fishing, hiking, golfing and camping. Bug Soother comes in 2-, 4-, 8- and 16-ounce sizes. Simply Soothing 319-728-7070 or simplysoothing.net

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HARDWARE RETAILING | June 2018


Brought to you by

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

17

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

18 Retail Magnetism

17. Paint Pail Hand Truck The Pail Lifter is designed to ease stocking and moving 5-gallon buckets like those used for paint. It features U-shaped recesses that allow the unit to move next to a 5-gallon pail and securely support it under the top lip. This design allows users to access an entire stack of pails (up to three high) or any portion of the stack without any manual lifting or repositioning. The user can press a button to raise pails from floor level to an under clearance height of 35 inches. Retail Handling Solutions 866-593-3053 or retailhandlingsolutions.com

18. Licensed Tool Boxes Goboxes designs tool boxes fashioned after popular automotive manufacturer logos such as Chevrolet, Dodge and Ford. There are also custom designs. Tool boxes come constructed of either 20-gauge stainless steel or as canvas bags and can carry items such as small hand tools or car detailing supplies. Goboxes 419-512-0350 or goboxes.com

Our magnets attract customers and profits. You can rely on over 40 years of experience and over 250 products to support your continued success. Let us show you how the retail power of magnetic attraction can work for you. Call 888.293.9190 or visit magnetsource.com/retailsupport

Your Best Source in the Magnetic Field

magnetsource.com

June 2018 | HARDWARE RETAILING

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Exceeding Expectations. One Fastener Destination at a Time!


For your very own fastener destination, contact Glen @ 800-444-7313 x 120

800.444.7313

fastenerconnection.com


Checkouts COMMUNITY RELATIONS

Giving Back(packs) to Nature

S

ometimes it’s important to take a look around and be inspired by what you have to help your community. Ace Hardware & Sports general manager Daniel Buzzell joined a community leadership group which was part of his chamber of commerce in Midland, Michigan. Also part of the group was Andrea Foster, the programs manager for a nature preservation group that teaches children in the community about nature. “Part of the leadership program includes developing a class project,” Buzzell says. “Andrea suggested giving outdoors supplies to the kids, but it didn’t pan out as part of the group. I still thought it was a great idea, and we jumped at the chance to help.” Buzzell says he’s always looking for opportunities to work with kids and support local initiatives through his role at Ace Hardware & Sports. The nature preservation group is similar to other philanthropic activities the business is engaged in, such as sponsoring several Little League teams

and supporting drama and robotics teams at community high schools. “We stock everything in the store that the kids in the nature group need, and we had the ability to support them,” Buzzell says. Each child in the group received a backpack from Ace Hardware & Sports filled with a first-aid kit, a bandana, a water bottle, a reusable trash bag, bug spray, sunscreen and other essentials they may need on hikes. Buzzell says they wanted to support the program because not only would it help the kids, but their customers appreciate local businesses that want to help preserve local outdoor areas. “We have a lot of customers who are hunters and fishers, and nature conservancy is important to those groups,” he says. “If you’re in that market, I think nature conservancy is something that’s important to think about and support.”

Children who are part of a local nature conservancy program in Midland, Michigan, received backpacks filled with hiking essentials from Ace Hardware & Sports. General manager Daniel Buzzell is always looking for new opportunities to support his community.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Contact Melanie Moul at mmoul@nrha.org to have your story considered for publication.

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HARDWARE RETAILING | June 2018


TRUTH : YOUR BUSINESS IS LOCAL. YOUR MARKETING SHOULD BE TOO.

Fact: 81% of hardware shoppers live within ten miles of their local store. Yet some of our competitors blow ad dollars on national marketing—lowering the chance to win more local consumers. We call BS on that. We target all of your ad dollars to your local market instead of scattering them all around the country. ❯ No national promotional fee ❯ Flexible marketing programs ❯ Geo-targeted digital media

IF YOU’RE READY FOR A TRANSFORMATION, VISIT TRUEVALUECOMPANY.COM/TRUTH OR CALL 1.888.291.7229. ©2018 True Value Company, LLC. All rights reserved. TVRG-14218


Checkouts

EVENTS

Planting Seeds in Soil and in Youth

G

rabill Hardware brings kids together to play in the dirt. In March each year, the business in Grabill, Indiana, hosts a Kids’ Seed Planting Day, and the event attracts more than 200 children from the community, which is quite a turnout for a service area with about 1,700 homes. Store owner Claude Schrock says they have been hosting Kids’ Seed Planting Day for about 12 years. He says the idea for the event came from his team of employees wanting to do something special for the kids in the community. “We figured, since we have garden seed, why not encourage kids to come in and learn all about planting?” he says. Advertising for the event starts several weeks before. Grabill Hardware promotes it through the local newspaper and they post about the event on

While children are waiting to plant seeds during the Grabill Hardware event, they spend time doing arts and crafts projects.

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HARDWARE RETAILING | June 2018


the store’s Facebook page. The business also relies on other groups in the community to spread the word. Schrock says about a week before the event, the local schools in the area distribute flyers to students and their families. During the event, Grabill Hardware provides children with flower or vegetable seeds and the soil and pots to plant with. As they plant, members of the local garden club teach the children about the seeds and how to care for their plants as they grow. When they have finished planting, the children take home their pots of seeds and care for them until the flowers or vegetables grow large enough to plant in an outdoor garden space or larger pot. The business also offers crafts, refreshments and an in-store game for children who are waiting to plant. Children can “Find Pugsly,” a stuffed pug dog that appears in various spots throughout the store. When children find the dog, they can come to the front of the store and receive a treat. “Every year, the kids look forward to it,” Schrock says. “They come back again, and then when they’re older, they bring their younger brothers and sisters.” While the event is called Kids’ Seed Planting Day, the rest of the family and community members without children aren’t forgotten during the annual event. The business offers promotions on garden items, and all shoppers receive a special sale flyer when they come into the store.

The annual Grabill Hardware Kids’ Seed Planting Day brings in families of all ages, and the local garden club teaches children about the different types of seeds and how to care for them.

Stock The Product That Will Be Leaping Off Your Shelves! FrogTape® is the only painting tape treated with PaintBlock® Technology which delivers sharp paint lines the first time, every time. Available in off shelf displays, make sure your store has FrogTape® stocked so customers can experience the FrogTape® difference!

FrogTape.com

© ShurTech Brands, LLC 2018/74571


By Chad Husted, chusted@nrha.org

Learning From Each Other Employees Bring Insights From Across Generations

A

verage employee ages can range across industries. In many businesses, there is a common, gradual progression from entry-level employees to more advanced managerial positions. For these industries, progression and advancement can be a regimented process that takes an entire career to work through. Retail, however, doesn’t follow these kinds of linear patterns. Younger members of the workforce may still enter the home improvement industry at entry-level positions in order to acquire the necessary skills, but employees can range from part-timers in high school to people retired from other careers who are re-entering the workforce decades later.

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HARDWARE RETAILING | June 2018

With this wide range of age groups and experience levels, retailers are forced to address the dynamics between generations within their employee base. Work experience is just one part of that puzzle, as life experiences have changed drastically over the last 70 years. For many family-owned businesses, the chance to advance an employee and utilize their skills often takes precedence over age or other factors. For more information about managing multiple generations in the work place, visit TheRedT.com/generations to learn from a human resources consultant about management styles and how to be an effective leader.


Performance in the field and on the shelf.

Introducing the new Simpson Strong-Tie® anchor retail sets. Our code-listed, high-strength anchoring solutions address the needs of professional contractors and DIYers alike. Our program comes with eye-catching displays and POP collateral as well as informative packaging to drive sales. Combined with our multiple pack sizes and price points, the new retail sets make it easier than ever to put Simpson Strong-Tie® anchors in your customers’ hands. To learn more, contact your local sales representative at (800) 999-5099.

© 2018 Simpson Strong-Tie Company Inc. ANCHDISP18


Hardware Retailing sat down with several employees to discuss how different generations in the current retail workforce have altered the retail landscape. Employees in the modern retail environment are in constant interaction throughout the day, and those interactions can shape how tasks are accomplished and whether the business thrives or struggles. Editors hosted a roundtable for employees to talk about their experiences as employees working with other generations. The discussion centered on how different generations can work together in a retail environment and what complementary skills are associated with a diverse workforce. According to the U.S. Census Bureau, baby boomers, who were born between 1946 and 1964,

are the oldest generation still working full or part time in retail. However, some members of the silent generation, born between 1928 and 1945, are still in the workforce. Generation X (1965-1980) is the next youngest, followed by millennials. Millennials (1981-2000) make up a growing portion of the workforce, with the generation overtaking baby boomers in 2015, according to the U.S. Census Bureau. This generation can include full-time professionals in their 30s to students and entry-level applicants in retail. Representatives of these generations met for the Hardware Retailing roundtable and discussed a range of topics, and each brought a unique perspective based on how they have experienced the hardware industry.

Meet Our Generations

Silent Generation

38

Baby Boomer

Generation X

Millennial

Donna Minnick Age: 80 Akard True Value

Gwen Maffei Age: 57 Akard True Value

Michelle Ashley Age: 50 Fishers Do it Center

Zachary Badger Age: 20 Fusek’s True Value

Donna learned about customer relationships while working with patients as a hospital administrator and seeing how an understanding listener could help turn around a bad day. Since retiring from the medical field, she has worked for Akard True Value co-owner Leigh Ann Akard, who hired Donna to help with the expanding gift and housewares section in the hardware store.

Gwen brought a host of product knowledge with her when she joined the Akard True Value team two years ago. She began working in a New York hardware store in 1991 and moved to the Indianapolis area to be closer to her two grandchildren. She knew she wanted to continue working in hardware retailing, calling the combination of hardware products and helping a community her passion.

Michelle has worked in retail for 19 years, including the last six at Fishers Do it Center. As office manager, her experience centered around human resources responsibilities and co-worker interactions. As a member of Generation X, she saw how younger generations harnessed technology to become a tool in retail as well as how older generations have adapted.

Zachary began his career in hardware retail at a big-box retailer in the summer of 2017, but his childhood interests of repairing old equipment and devising new technologies had him frequenting independent retail stores far before he began working for them. In October 2017, Zachary began working at Fusek’s True Value while studying engineering in Indianapolis.

HARDWARE RETAILING | June 2018


Zachary Badger works part time at Fusek’s True Value in downtown Indianapolis while attending a local university. As one of the youngest employees at Fusek’s, Badger has worked to grow his skills and experience while evading stereotypes associated with younger generations.

What Attracts a Generation A retail business should be a welcoming place for customers and employees alike. Workplace satisfaction has to be a common topic for anyone owning or managing a business, as employee morale and attitude will inevitably affect customer satisfaction and business efficiency positively or negatively. So knowing how to attract and invigorate employees with wildly different backgrounds and motivators is key for any employer, particularly a retailer. For Michelle Ashley, employee morale strongly affects her work as office manager at Fishers Do it Center in Fishers, Indiana. Ashley, 50, falls under Generation X and has worked with co-workers across many other generations while managing human resources responsibilities as well as salesfloor duties. In Ashley’s experience, the youngest and oldest employees in a store are actually

similar in their desires from a position within retail. Both often place flexible schedules at a premium, even if it is for different reasons, and like to be praised for a job well done. That need for acknowledgment shows itself in different ways, however. “Young people do get their feelings hurt at times, which means you have to tone it down a bit when considering work reprimands and performance evaluations,” Ashley says. “Older workers want respect for their knowledge and abilities, so that can be tricky as well. The older generations hold a lot of the industry knowledge, but transferring that knowledge to other generations can be difficult sometimes.” That knowledge is often one of the greatest assets of older generations. Not only do older employees carry life experiences with them that can prove useful for customers and co-workers, they have had more opportunities to experience the hardware industry and its many demands.

June 2018 | HARDWARE RETAILING

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For Gwen Maffei, a baby boomer with 22 years in retail hardware, it was appreciation of that experience that drew her to Akard True Value in Zionsville, Indiana, when she moved into the area to be closer to family. Having worked for years in a small hardware store in New York, Maffei felt she could offer plenty of advice, assistance and cheer to offer customers and wanted to work with a group that felt the same way about customer service as she did. “From the beginning, the people at Akard True Value showed me I was valued and my experience was needed in the store,” Maffei says.

“If your experience is validated,

even when you’re older than other employees and a new employee in the store, then it shows how much you’re valued as an employee and as a person.

”

—Gwen Maffei, Akard True Value

“I enjoy helping customers, I enjoy using my time in the industry to help others solve their problems. If your experience is validated, even when you’re older than other employees and a new employee in the store, then it shows how much you’re valued as an employee and as a person.” Zachary Badger, the youngest participant in the Hardware Retailing roundtable and a millennial, knows how much a flexible schedule can help in daily life. Badger works as a customer service rep at Fusek’s True Value in downtown Indianapolis while also pursuing a degree full time at a local university. As a busy college student, making sure he has the ability to complete his studies without affecting his time at work is of great concern for both himself and his employer. “I’ve always been met with a great understanding of my role as a student. My managers have said, ‘We want school to be your focus, but while you’re here at the store, your focus needs to be here for that time,’” Badger says. “I respect that attitude, and I want my co-workers to have their focus at work as well. That’s how you get the best results.”

Akard True Value co-owner Leigh Ann Akard (left) and employees Donna Minnick (center) and Gwen Maffei (right) have worked to foster a strong co-worker dynamic at the Zionsville, Indiana, business.

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HARDWARE RETAILING | June 2018


Advertorial Broil King | broilkingbbq.com

The Secret Ingredient for Barbecue Flavor hen a customer walks into your store ready to buy a grill, what they are really looking to buy is the taste, smell, sound and outdoor experience grilling brings them. We know grilling excites the five senses and beyond, but it’s the flavor of the food that consumers rank as most important for their grilling experience. Knowing this means your retail team should be ready to guide customers through the “flavor story” for each grill with confidence. Everyone knows that not all grills are created equal in creating that amazing grill flavor in food! In many cases, success is determined by the knowledge your staff possesses on how a grill works to create great barbecue flavor and how one grill is different from the next. That knowledge will help the consumer complete their purchase journey in your shop rather than leaving to buy from your competitor. Customers coming to browse the selection of grills in your store have already done their research. Studies show more than 80 percent of customers go online first to start their purchase journey. They just need your team to help finalize the buying decision.

W

Industry research shows that the taste of grilled food— barbecue flavor—is the most important reason people grill. This applies to all consumer segments: The sizzle matters from your opening price point to the most deluxe model on the floor.

What creates grilled flavor? Food juices hitting a hot surface and vaporizing create the grilled flavor your customers want. Some grills are designed to capture food juices at a number of points in the grill, vaporizing juices and infusing food with barbecue flavor. Other grills have gaps between surfaces, allowing juices to run directly to the grease tray—which is lost flavor—or flat grids with wider spaces between them and/or lighter material, allowing juices to fall through to the grease tray.

So what should your retail team know? Heavy cooking grids get hotter than thin grids and have enough mass to retain that searing heat and vaporize juices right at the cooking surface. Grids that are V-shaped will vaporize food drippings right at the grilling surface. Reversible cooking grids that are also heavy will have troughs that pool juices and vaporize at the cooking surface. Drippings that fall from the cooking grids need to hit a hot surface and vaporize to infuse food with that unmistakable barbecue flavor. A Flav-r-Wave™ that fills the entire cookbox offers even heat and opportunity for vaporization. Gaps or spaces below the cooking grids allow food juices to escape to the grease tray. Heat is the engine that drives the entire cooking system. You need a grill that gets hot, really hot, and stays hot! The source of the flame, number of rows of flame, and flame evenness define performance and flavor. Complete heat control enhances the whole cooking experience. Not only can you sear at high heat, you can also roast low and slow or grill anywhere in between. Your customers’ culinary imaginations have no limits with a grill that empowers them to sear, grill directly, grill indirectly, rotisserie grill, smoke, roast, bake or plank. After flavor, consumers are concerned with the quality of construction and the price/value of their potential purchase. Quality and features are the essential final pieces of the puzzle that strengthen the buying decision. Broil King features North American quality grills from $199 to $3,000, a great warranty and a grill designed to deliver flavor. Sell the experience the customer is looking for and fire up their senses. Give customers a sense of pride in making the right choice and a sense of excitement knowing that there are no limits to their grilling imagination. Your best grilling experience begins with Broil King: Great barbecue flavor, every time.

June 2018 | HARDWARE RETAILING

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Gwen Maffei has worked in retail hardware for 22 years, starting at an independent retail business in New York. She often looks to convey her years of product knowledge and experience to younger employees who are interested in developing their retail skills.

What Motivates a Generation Motivation can be a moving target for retailers. Encouraging employees requires delving into the personal ambitions and attitudes of individuals and finding the areas that can best move that person toward both their and the business’s goals. Different generations respond to motivational techniques in different ways, requiring a sometimes tailor-made program to push employees toward good work habits. Donna Minnick, as part of the silent generation, represents a still-vital part of the retail hardware workforce. Employees who were born and lived through the turbulent 1940s are still looking to work and be valued in the public arena, Minnick says, especially in an area that allows them to interact with people from all generations. A big motivator for Minnick is a desire to continue working in an environment that can accommodate the needs of older employees

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while utilizing their skills. Minnick, who has worked at Akard True Value for three years, has worked out a schedule that allows her to make doctor appointments and other standing obligations while still getting the positive boost she feels from contributing to the team environment in the store. That team atmosphere is extended to working with younger employees, Minnick says. Often the youngest generation at Akard True Value is high school students working part time before moving on with their career plans or possibly enrolling in higher education. While these employees might not be interested in retail hardware as a career, their presence inspires Minnick, as do the stories she hears from young people who return years after they worked at the store in their teens. “When you get a bit older, you seek ways to contribute to your community. For me that’s working and helping people in the store,”


Minnick says. “Then there’s added benefits, like when you hear stories from young families that have so many memories from years past spent at this store. The Akard family is very involved in helping the community through events like fundraisers and farmers markets, so to have a work family like the one we have here is very important for me.” Badger feels his attitude toward motivation is an example of others in his situation and age bracket. He enjoys his work and taking on new tasks, and he isn’t afraid to show his lack of experience in a task by asking questions. He’s motivated by conquering those early failures and acknowledgement from those he looks up to. He feels generational stereotypes can sometimes play a greater role in the evaluation of younger workers than the actual facts. Acknowledgement of an employee’s progress and proficiency should be noticed and commented on, he says. For example, he recently assembled and properly outfitted his first reset of power aisle displays and merchandising structures, a task which was thought to be beyond his experience level at the time. If his manager hadn’t taken the time to impress on him how much his work was appreciated, he would have been discouraged. Badger sees his drive to take on new challenges as a benefit of working with people of his generation who are often not hindered by a fear of roadblocks or stumbles in the workplace. “I’m not afraid to fail. I see the advantage of it, because it means I’m learning something,” Badger says. “I know my generation gets a bad rap. People think we’re lazy and we’re entitled. That motivates me to push back on those stereotypes, to be better than what others will assume when they see a young person in a job like ours. But if I show how wrong the stereotype is and it doesn’t change anything? It makes it harder to still hold that attitude.”

In her role as office manager at Fishers Do it Center, Ashley has seen the positives and negatives associated with pairing off older employees with younger ones. If the fit is right, with an older employee eager to share their accumulation of skills with a receptive partner, it can be a match that will drive a store to new heights and serve as an example for other employees, she says. However, not all employees are looking for this kind of relationship. Ashley has seen examples of older employees who have little patience for teaching, while Maffei will often see younger Akard True Value employees drift off as she is demonstrating skills like pipe fitting or tool selection to a customer. Both sides of this dynamic can have motivations that lean away from collaborating with co-workers, so retailers would do well to evaluate the attitudes of employees before instituting cooperative training programs like mentorships.

What Discourages a Generation Motivation is a two-way street with traffic that never stops. On top of managing the constant fluctuations in employee moods and attitudes, retailers must also recognize that not every employee is in the same motivational lane. The same actions that can set up one generation for success can stifle another or cause resentment among employees. One example that multiple roundtable participants cited as a difficult hole to thread was the possibility of mentorship and passing on skills from experienced employees to younger, less experienced co-workers.

As the office manager at Fishers Do it Center, Michelle Ashley has worked with a wide array of age groups in her 19 years of retail experience.

June 2018 | HARDWARE RETAILING

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“A younger person is more likely to question the ‘why’ of situations or practices. For someone a bit older and experienced, that can come across as disrespectful,” Ashley says. Maffei says she understands that not all younger employees are interested in a career in the hardware sector and therefore she doesn’t resent employees who don’t seek deeper product knowledge. However, something she will actively seek to correct is a mistake involving sales skills and customer service. Having experienced hands like baby boomers on staff can fill the product knowledge gaps, she says, but nothing can fix a store that has inattentive employees.

“If there’s any focus that every

generation can be involved in, it’s how we value the customer and serve community members that seek out our help.

”

—Gwen Maffei, Akard True Value

Badger’s experience at Fusek’s True Value has reflected that focus on customer service. As a younger employee, he’s been trained throughout his time in retail hardware on the importance of customer service in the independent sector, and based on that emphasis, he has made great efforts to succeed in that area. Both younger and older generations have seen a lack of motivation for quality customer service inhibit an entire staff. If an age difference is involved, either with an older, more seasoned employee lacking motivation or a younger employee showing a disinterest in putting their best effort into customer interactions, it can exacerbate the issue. “Big boxes have a lot of advantages over us, but they don’t have the employees that we do,” Maffei says. “That’s each generation, because I’ve seen customers enjoy interacting with young people while they’re shopping, and I’ve seen younger customers getting great lessons from experienced hands. If there’s any focus that every generation can be involved in, it’s how we value the customer and serve community members that seek out our help.”

Gwen Maffei (right) interacts with co-workers from multiple generations in her duties at Akard True Value, including co-owner Leigh Ann Akard. The business employs associates from a broad range of age groups and experience levels.

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By Jesse Carleton, jcarleton@nrha.org

Born Into the Business How to Prepare the Next Generation of Retailers

H

ome improvement retailing is a business where there’s a lot of longevity. It’s not unusual to see a business in its second or third generation, with some dating back even further. More than likely, when a business shifts from one generation to the next, it doesn’t happen overnight or without forethought. It’s a process that starts long before the outgoing family member’s last day. The incoming generation is successful when it’s properly prepared for the responsibilities of ownership. Each generation offers new perspectives and new ideas, and they all inevitably initiate changes that will allow them to put their mark on the business. Everyone needs to be aware of what the other has to offer, to treat each other with respect and trust, and be aware of their own limitations. Hardware Retailing spoke with two retailers who have either been through the transition from one generation to the next or are currently going through it. Sisters Julie Buchkowski and Tricia Dauwalder-Luna are thirdgeneration retailers who bought Paul’s Ace Hardware, an operation with eight locations in Arizona, about 10 years ago. For Barry Hill, the transition is still a few years away as he currently works alongside his father as co-owner of Hills Hardware Hank in Wabasha, Minnesota. Their stories can help you navigate the potential pitfalls and opportunities that come with a transition of leadership.

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June 2018 | HARDWARE RETAILING

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Paul’s Ace Hardware A

bout a decade ago, sisters Julie Buchkowski and Tricia Dauwalder-Luna bought Paul’s Ace Hardware from their father, Don. They are third-generation owners of the business which was established by their grandfather, Paul, in 1956. Today, Paul’s Ace is an eight-store chain in the area surrounding Scottsdale, Arizona. The sisters have been responsible for adding three of those locations and have continued to build on the successes of their family. For them, a transition in leadership didn’t slow down the forward momentum of the business. Rather, they have been able to build on the successes of the past. That’s been possible because their family has a commitment to communication and willingness to embrace change.

Find What’s Missing Buchkowski and Dauwalder-Luna say it’s difficult to pinpoint a day when they started preparing for what is now their careers. It was an ongoing process that started when they were very young. “Working in a hardware store was just something we grew up doing,” says Buchkowski. “You learn a lot just by being there and watching others.” When the sisters started to get serious about future ownership, they began to identify aspects of the business where they needed more training. Buchkowski says she needed to know more about finances so she started taking classes at

a community college. That experience was so valuable, she ended up recommending it to several other employees. Although the importance of a strong grasp on finances may seem obvious, not all retailers leading a company understand the basics of accounting. Buchkowski believes it’s critical not to minimize the necessity of that skill. “You need to know how you make your money and that everything you do affects your profitability,” she says. That learning process doesn’t stop, either. Even after they became owners, the sisters say they still look for opportunities to learn, whether it’s through product training vendors provide, seminars at their co-op’s buying markets or by networking with other retailers. And there’s usually a takeaway they can use to make the operation better. “I feel like I’m always learning,” says Buchkowski. “We both make an effort to get together with other retailers when we can. I always enjoy hearing how another store does a certain process or procedure.”

Change With the Times Retailers passing a business on to their children should realize there are many skills they can teach, but it’s impossible to prepare for every situation, especially in a changing retail landscape. The best mindset is to not be afraid to adjust to the realities around you, even if that means making changes to the comfortable habits of the past.

Julie Buchkowski (middle left) and Tricia Dauwalder-Luna (middle right) both have children who are already taking an interest in hardware retailing and helping out around the business.

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“It’s important for the younger generation to appreciate the knowledge the older generation has, to find their strengths and limits, and then find a good balance.

”

—Tricia Dauwalder-Luna, Paul’s Ace Hardware

Today, one of those realities is online competition. Customers are more apt to price shop, which has altered the way Buchkowski and Dauwalder-Luna think about their stores’ prices. Before, they had always been fairly confident in their pricing strategy. Now, shoppers increasingly scrutinize their prices. Another big change comes from an expanded store count, which has necessitated a shift in management styles. While past generations have taken a more hands-on approach, Buchkowski and Dauwalder-Luna are learning to step back and let their store managers take more control. In fact, their overall approach to their staff is more open than it was with their parents or grandparents. “We are a lot more open to sharing information with our employees than our dad may have been,” says Dauwalder-Luna. “We want everyone to know what’s going on in the company.” Employees who understand how and why the business operates the way it does are more likely to support changes and contribute to growth. “It’s not effective to just tell your employees, ‘This is how we’re going to do it because I said so.’ It’s better to communicate why you’re doing what you’re doing,” says Buchkowski. Open communication from the top down promotes ownership and collaboration among rank-and-file employees, a way of management that is perhaps more common in business today than it was in previous generations.

Keep Listening Don Dauwalder has retired, but like many small business owners, it’s been difficult for him to step away completely. He still has plenty of ideas for the business. He still shows up at one of the stores eager to put that plan into action. Sometimes those plans line up with what his daughters want for the business; sometimes they need convincing. Usually it takes some time to talk it through, a delay that can be frustrating to someone eager to move forward.

Dauwalder-Luna (right) and Buchkowski have continued to adapt to their customers’ needs while remaining faithful to the business’s core values.

For some families, that could be a recipe for tension, making the transition of leadership more difficult. Fortunately, for the Dauwalders, there’s a good relationship between father and daughters. They want their dad to enjoy his retirement, but also give him opportunities to contribute to the business when he wants to. The key to making it work is mutual respect on all sides. “It’s important for the younger generation to appreciate the knowledge the older generation has, to find their strengths and limits, and then find a good balance,” says Dauwalder-Luna. “It takes patience on both sides. It’s important that we both understand that we’re like-minded and understand what’s happening. We treat each other with respect.” A careful approach to change is a philosophy that has benefited the sisters beyond family relationships. Some of the stores they’ve purchased have been from retailers retiring. Instead of immediately dropping their own ideas into a well-established business, they tap into the retiring owner’s wealth of knowledge. Why have they run the business the way they have? What has worked in the past, what hasn’t, and why? Before they can be effective in changing what has been done before, say the sisters, it’s important they understand and appreciate the way things were done. There’s much to learn from the previous generation and their ideas can help shape the business going forward.

June 2018 | HARDWARE RETAILING

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Hills Hardware Hank F

ather-son duo George and Barry Hill have been working together as co-owners of Hills Hardware Hank in Wabasha, Minnesota, for a couple of years now. George bought the business in 1998 when his children were in high school. While Barry worked in the store on and off through college, he never thought of it as part of his career path. He pursued a degree in political science and public administration, then tried a handful of different jobs, but nothing seemed to be the right fit. Then, a management position opened up in the hardware store. Barry decided to give it a try. After a couple of years, he bought half of the business from his mother and became a co-owner. Since then, Barry has initiated an expansion to the business with the purchase of the building adjoining their store. He also introduced new categories and implemented a new POS system to help run the business. Eventually Barry plans to buy the other half of the business as George eases into retirement. They’ve already been talking with the bank so they’re ready for the financial portion of the transition. When it comes to operating the business, they’ve also been taking a methodical approach that will help avoid some of the potential pitfalls of two generations working side by side.

Divide Responsibilities When Barry decided he wanted to buy into the business, with the intention of someday purchasing his father’s remaining share, he realized he had a lot to learn. He may have been familiar with the day-to-day operations, but now he needed to take a big-picture look at the business. He also had a lot of ideas for how to make the business better. The best way for him to do both, they decided, was to divide up his responsibilities. “We’ve given ourselves clearly defined duties,” says Barry. “My dad controls the purse and the administrative part of the business. I run the store. As he gets closer to retirement, we’ll start moving more things off his plate and onto mine.” They communicate with each other regularly so they know what is going on in all parts of the operation. But having distinct responsibilities has made them a good team. It also helps Barry understand what he still needs to learn and gives him more freedom to implement changes. For example, it didn’t take long for Barry to realize that updating the store’s technology would go a long way to increase efficiency. He installed a POS system that would help with ordering and store processes, such as managing returns. His father fully supported the move, but when it comes to actually using the system, he’s just as happy to let the younger generation do the work.

When Barry Hill became active in Hills Hardware Hank, he initiated the purchase of an adjoining building to make room for better merchandising and new categories.

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Cut Ties Gradually

Find Mentors to Help You

Dividing responsibilities between himself and his son will ease the transition when George decides to exit the business completely. Like any retailer who has given a lot of blood, sweat and tears to their business, it could be tempting to want absolute control until the very end. “For anyone who has always had tight rein on their business, letting go can be tough. It’s become part of your life,” he says. “I think it’s easiest to deal with that by letting go in small doses instead of all at once.” Instead of dictating every move, he lets Barry run with his own ideas. “Barry is a go-getter and I don’t want to slow him down,” George says. “If I were always dictating to him how to do something, this transition would be tough.” Putting all of the responsibilities of running a business on Barry all at once would be a recipe for burnout. George is also hoping the business will not consume as much of Barry’s life as it did his own 20 years ago. He wants to see Barry be able to spend more time with his children. Fortunately, by automating many of the store’s processes, Barry is working smarter, not harder, which helps his time management as he takes on more responsibilities.

For Barry, thinking about full store ownership has changed a lot about the way he views the business. He appreciates the take-it-slow approach and has looked to his father to teach him much of what he needs to know. But he’s also found it has been valuable to find mentors outside of the business, too. When Barry saw the opportunity to purchase the building adjoining the store last year, he got an exercise in creating a business plan, and then heading to the bank to secure financing. Not only did he get a loan, but he also established a valuable relationship with his local banker, who taught him some important lessons in finances. Through the process, Barry found invaluable resources at his local small business development center and his wholesaler. “I remember being at a meeting of local business owners and asking, ‘What is the No. 1 thing I need for my business to succeed?’ The person told me it was a mentor,” says Barry. “To anyone looking to business ownership, I think it’s critical to find those people you can call anytime you need advice.”

HARDWARE RETAILING | June 2018

Realistic Expectations George is proud to have his son work alongside him, but when he got into the business 20 years ago,


that wasn’t his expectation. “Like most retailers, I bought this business for myself, for my future,” he says. “I didn’t expect my children to be a part of it. I never wanted to lay that burden of expectation on them, as that could have prompted resentment.” Not every child wants to run their parent’s business, or they just don’t have the personality or skills to do it. Rather than projecting your own dreams for what you want them to be, says George, it’s important to honestly ask, “Will this really be a good fit for my kid?” George doesn’t want the pressures of business or his own expectations to damage his relationship with his children. When he exits the business, George plans to cut all financial ties so the success, or failure, of his store will not affect his own retirement “I don’t want to be in a position where I need anything from the store and won’t be a burden to them or foster any resentment,” he says. George, of course, is proud of Barry’s decision. “I could have just slapped a price tag on the store and walked away when I was done,” George says. “Exiting gradually might take more work, but it gives me a huge satisfaction that my kids and maybe even grandkids will be a part of this.”

Barry Hill (left) and his father George co-own Hills Hardware Hank. The plan is for Barry to eventually buy his father’s half of the business.

June 2018 | HARDWARE RETAILING

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Smart Home Dashboard

By Renee Changnon, rchangnon@nrha.org

Get in Sink With Technology How Smart Home Technology Is Taking On the Plumbing Category

I

magine the home of the future five, 10 or 20 years from now. What do you see? If your vision doesn’t include advancing technology or an interconnected smart home, think again. According to a report by research firm Zion Market Research, the global smart home market was valued at around $24 billion in 2016 and is expected to surpass $53 billion by 2022. The plumbing category is finding its footing in the smart home environment, with products like smart showers, voice-activated toilets and app-controlled washing machines hitting the market today. In this article, Hardware Retailing will highlight some of the latest smart plumbing trends that are

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catching consumers’ attention. We will bring you up-to-date on all of the latest innovations and evolving technologies. To discover how big-box retailers like Lowe’s, Home Depot, Kohl’s and Best Buy are investing in this niche, visit TheRedT.com/smart-box. Whether consumers are clueless about what smart plumbing products they should integrate into their homes or you have customers who have done their research and are well aware of the products they want and need, you need to be knowledgeable. Knowing the trends will ensure your business does not fall behind and allows you to stay current with smart home technology.


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A Smart Cook in the Kitchen

I

n the kitchen, smart home products enhance decor and provide added convenience. According to the 2018 U.S. Houzz Kitchen Trends Study, 9 in 10 homeowners replace all or some of their appliances during a kitchen remodel. Knowing this and wanting to stay ahead of the competition, manufacturers are creating

more appliances that integrate smart technology into their functionality, with 25 percent of new appliances including high-tech features, the Houzz study reports. Outside of smart appliances, the kitchen is also becoming a space for the home assistant, which can control different devices through voice commands.

It’s more than an average refrigerator.

Photo courtesy of Samsung

In recent years, appliance manufacturers have begun offering smart appliance options. For example, an internet-connected refrigerator is priced higher than traditional units, ranging from $1,000 to $6,000. A few manufacturers are testing out ways to make the refrigerator even more of a kitchen necessity. Currently, there are a few models of smart refrigerators that connect to Wi-Fi and communicate through smartphone apps or touch screens. The high-tech features found in today’s smart refrigerators include the ability to play music, make shopping lists, share calendars and even watch TV on the door monitor.

Voice-activated faucets keep hands free and the kitchen clean.

Photo courtesy of Delta

“Alexa, turn on the kitchen faucet.” More homeowners are utilizing voice-activated assistants, whether it’s Amazon’s Alexa, Google Assistant, Apple’s Siri or Microsoft’s Cortana. Several manufacturers are taking note and are integrating these smart assistant capabilities into their products. Smart faucets are another product that are starting to get their footing, even allowing a user to turn the faucet on and off just using their voice. Through smart assistant Amazon Alexa, users can request to turn the water on and off, measure specific quantities of water and even warm water. As a backup, many of these faucets also work through touch.

What is a smart home? Coldwell Banker Real Estate and CNET, an online source of consumer technology news and reviews, partnered up to define smart home. ”A home that is equipped with network-connected products (i.e., ‘smart products,’ connected via Wi-Fi or Bluetooth®)

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for controlling, automating and optimizing functions such as temperature, lighting, security, safety or entertainment, either remotely by a phone, tablet, computer or a separate system within the home.”


Stay connected and informed with a smart dishwasher.

Photo courtesy of GE

With the many tasks a homeowner has to manage on a day-to-day basis, keeping track of different household chores can be tedious. To waste less time and get more done, many companies are designing a suite of kitchen appliances that communicate with the homeowner. The dishwasher is earning its place in the modern smart home. A handful of manufacturers are creating their own version of a smart dishwasher, which connects the appliance to Wi-Fi and communicating to users through an app. Smart dishwashers cost anywhere from $500 to $2,000. However, for some consumers, the convenience may be worth it. This type of product allows users to monitor the cycle time and status, lock and unlock controls and it can even reorder detergent pods online all from their phone.

Smart filtration systems ensure water is pure.

Photo courtesy of Franke

For many homeowners, filtered water is essential in the kitchen, whether it’s built into the refrigerator or is attached to the sink. Several manufacturers have introduced products that fill this need. For example, there is an under-sink filtration system that can deliver filtered water for a variety of tasks, like rinsing, prepping and cleaning. This type of faucet filtration system uses Bluetooth connectivity and communicates through the manufacturer’s smartphone app. Following up on the trend of consumers looking to monitor and collect data on a variety of everyday habits, a popular feature of smart filtration products is ability track the amount of water a homeowner goes through. Plus, many of these products can reorder filter replacements for the user.

What is a smart home device? Smart home devices are products that connect via Wi-Fi or Bluetooth. The appliances and products highlighted in this article are all smart home devices. Additionally, other examples of these types of devices include products like a

smart thermostat, lightbulbs, door locks, garage door openers and smart speaker systems. Once a customer purchases various smart home devices, acquiring a smart home hub will streamline various products through one device. June 2018 | HARDWARE RETAILING

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The Technology-Enhanced Bathroom

S

mart plumbing and related products are expected to continue being integrated into bathrooms. According to the 2017 U.S. Houzz Bathroom Trends Study, “the demand for high-tech features in toilets and showers grew 19 percent and 26 percent, respectively, from 2016 to 2017.” Many of these features are attracting the

attention of homeowners, which has led to more manufacturers creating product lines that connect smart products, from the toilet to the bathtub. Attendees at the 2018 Kitchen & Bath Industry Show earlier this year got a taste of this, seeing the bathroom of the future prominently displayed in several manufacturer booths.

The smartest toilets on the block.

Photo courtesy of Kohler

Many manufacturers have sought new ways to advance and enhance the toilet. No longer is this just a standard porcelain throne. Smart toilets integrate many features consumers can get excited about. However, this luxury doesn’t come without a cost. The price tag for smart toilets can range from a couple hundred dollars to as high as $11,000. These high-end toilets have unique many features, including colored lighting, music synced through Bluetooth technology and heated seats. Users can control the toilet by using a voice command, an app or a remote. Other features often include automatic flush, a bidet and a toilet that cleans itself.

Bathtubs where stress floats away and relaxation is a given.

Photo courtesy of Toto

As consumers continue to seek a spa-like bathroom retreat, the bathtub is an element not to be disregarded. Plumbing manufacturers are taking the spa preference to the next level, creating stand-alone bathtubs that help users relax. A new zero-dimension flotation bathtub relieves stress on joints. The tub has a system called hydrohands, which is a dynamic water massage system that flows to targeted muscles. It gives the stimulating sensation of a massage and is free of bubbles and noise. Another smart bathtub that will be rolled out to consumers this year has the ability to be filled and have several factors controlled all from the manufacturers app on a phone.

What is a smart assistant? Smart speakers have been rising in popularity in recent years among consumers. In fact, nearly 1 in 5 U.S. adults has access to a smart speaker, according to the March 2018 Smart Speaker Consumer Adoption Report by Voicebot.ai.

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These devices feature voice-activated smart assistants, like Amazon’s Alexa, Google Assistant, Apple’s Siri and Microsoft’s Cortana. To attract shoppers, manufacturers are making smart devices that can be accessed through a smart assistant.


Wash your hands, no handles required. Touchless faucets have been common in public restrooms for years, but now more hands-free faucets are available for the consumer market as well. Homeowners are adding faucets to the bathroom that rely exclusively on sensors and have no levers or buttons. The user simply waves their hand over the sensor that operates it. As voice-activated kitchen faucets are popping up, this same technology will likely be available in the bathroom soon, too.

Photo courtesy of Moen

The shower system that gives you what you want. Smart shower systems are intended to make the task of getting ready for the day or winding down in the evening easy and relaxing. Using a smartphone app, voicecontrol technology or the system’s wall controller, homeowners can turn on, stop or pause the shower, and select the temperature. To create a custom schedule, users can set the amount of time the shower will last and set an alert to know when the shower is on and at the desired temperature.

Photo courtesy of Toto

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Made by painters, for painters “Dura-Prime can be used to prime most everything, like wood, aluminum, gutters, steel, and more. In my opinion, it is the best primer on the market for exterior applications.” ~ Bob Halla, Cowls Building Supply

Available only to independent retailers www.maddogprimer.com June 2018 | HARDWARE RETAILING

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Leaks, Laundry and Beyond

S

mart technology in the bathroom and kitchen have kept people buzzing about smart home improvements, yet there are many other rooms in the house where technology is enhancing and helping the homeowner. For example, major appliance brands have begun creating smart home ecosystems, with several

products that can communicate with each other and the user all from one smartphone app. Manufacturers are thinking of innovative ideas that a consumer would want and need, whether a product is designed to save time or protect your home, like a leak or frozen-pipe detection system.

A sprinkler system that knows what to do, rain or shine.

Photo courtesy of Rachio

Just as the inside of the home is becoming smarter every year, so is the outside. Smart sprinkler systems connected to Wi-Fi are more common than ever. What is unique about smart sprinkler systems is that it is able to act as a personal watering assistant, helping users create a watering schedule. The system also uses local weather updates to adjust accordingly. These features save or reduce outdoor water use while keeping plants healthy. To set up or start watering the yard, a user can access their smartphone app or use voice-control technology to complete commands.

A smarter way to heat the water.

Photo courtesy of Rheem

Another household must-have is now available with smart technology is the water heater. Several manufacturers have been working on bringing smart water heaters to the residential market, providing the smartest, quietest and most efficient water heaters that can also help save money in the long run. With Wi-Fi connectivity, this kind of water heater can send alerts for anything out of the ordinary, like spills or leaks or reminders on service notifications directly to a mobile phone. This technology is also popular among consumers looking to save on water heating costs and ultimately save energy.

What is a smart home hub? A smart home hub is a hardware device that connects with all smart home devices, making it easy to control everything from within one app, according to the Internet of Things (IoT) technology website, IoTAgenda.

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HARDWARE RETAILING | June 2018

The smart home hub user controls operations of devices through a smart home app, allowing them to monitor the environment, automate, schedule and control tasks. Popular examples include Samsung SmartThings, HomeSeer, Nest and Vivint.


Keep tabs on multiple loads of laundry. When it comes to chores, manufacturers are providing ways to make them easier. Instead of building a schedule around laundry, homeowners can simply go about their day. For example, there is a washing machine that can run two loads at once. It is connected to Wi-Fi and users can monitor the remaining cycle time and receive updates through an app. It also answers voice-activated commands to control the machine or order replacement laundry detergent online.

Photo courtesy of GE

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Track and maintain your home water system. Several manufacturers are taking leak detection seriously, creating smart tools to alert a homeowner before a major disaster occurs. One of the most comprehensive home water systems available today features a smart water assistant that sends real-time mobile notifications and can turn off the water source remotely through the app. The water system features a built-in shutoff valve to turn the water off in the event of a leak.

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June 2018 | HARDWARE RETAILING

63


By Kate Klein, kklein@nrha.org

Up Against Amazon Study Showcases Dramatic Local Economic Impact of Independents vs. Amazon

F

or years, Amazon has been racing to compete with and beat brick-and-mortar retailers in selling nearly every product category, while setting a breathtaking pace for sales growth. The company has also cemented itself in consumers’ minds as convenient and inexpensive. For many shoppers, Amazon is the ideal in-your-pocket price checker, product search engine and ordering tool, available on the devices they use every day. In a recent filing with the U.S. Securities and Exchange Commission, Amazon CEO Jeff Bezos reports that the company has surpassed 100 million paying Amazon Prime users worldwide, who subscribe to a service that includes free two-day shipping on many products and discounts at brick-and-mortar Whole Foods stores. The growth of online retail has changed customers’ expectations for in-stock position, prices, convenience and experiences within brick-and-mortar stores.

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HARDWARE RETAILING | June 2018

What has not changed is that independent home improvement retailers offer expertise; immediate help for homeowner emergencies; high-quality, specialized products; competitive pricing in many areas; and a contribution to local communities that has always outstripped Amazon. The North American Retail Hardware Association (NRHA), shop-local organization Independent We Stand and the Paint and Decorating Retailers Association (PDRA) commissioned the study, which quantifies the difference between what Amazon can offer a community compared to independents. The study, Home Sweet Home: Locals vs. Amazon, reveals that sales from locally owned home improvement businesses contribute a local economic impact that is nearly seven times more than Amazon’s contributions. The following pages detail the study findings and how retailers can use them to highlight the significance of what their independent businesses offer communities.


Could you be running your business more effectively? Participating in the Cost of Doing Business Study gives you access to tools that can help you evaluate your business. With the study, you can determine how your average transaction size, payroll expenses and profits measure up to other retailers.

Increase Profits Access valuable resources. When you participate, you receive a copy of the 2018 Cost of Doing Business Study (valued at $499) for free. Plus, NRHA will give you a Personalized Financial Analysis complete with what-if scenarios, your ratios, composite financial statements and a strategic profit model. Don’t miss out on these tools!

“Comparing the industry average ratios to our store helps when we’re having conversations about a new store location because it gives us real numbers to look at.” Neal Aissa | Tarzian Hardware FOR MORE INFORMATION, GO TO THEREDT.COM/CODB.


Methodology & Findings

Methodology

T

o analyze the local economic impact of independent home improvement stores versus Amazon, research firm Civic Economics worked on behalf of NRHA, Independent We Stand and PDRA. Civic Economics used prior research, including its study Prime Numbers: Amazon and American Communities; public company data from Amazon, Home Depot and Lowe’s; and NRHA’s 2017 Cost of Doing Business Study. Civic Economics’ research compares the economic impact of the typical independent hardware store, which has average annual sales of $1.9 million, to big-box competitors and Amazon. To quantify the advantage customers gain from buying home improvement products at local stores, Civic Economics considered the four major ways businesses contribute to a local economy: labor, profit, procurement and charity. Spending on local labor generally includes a larger share of operating costs for a locally owned operation than for an outlet of a national chain. Online retailers, including Amazon, have little or

no local labor force in many U.S. cities. The larger companies consolidate administrative functions, such as bookkeeping, at a national headquarters. Independents often carry out those functions in-house, resulting in a larger share of sales being paid to local residents in wages and benefits. Local businesses also tend to hire local attorneys, financial advisers and technology professionals. Amazon’s operations take place in its headquarters and in sporadically placed distribution centers and data centers, which, unlike independent hardware stores, do not employ residents in most U.S. communities. Purchases from large public companies, such as Home Depot or Amazon, generate profits that are reinvested in national or global operations or are distributed to shareholders. An independent retailer’s profits may be reinvested in the business or community. Owners often procure goods and services locally and contribute to local causes that interest their families and staff.

Findings

T

he Home Sweet Home: Locals vs. Amazon study tells a story that every small business owner should promote loudly—independents keep a vastly greater proportion of their revenues in local economies than Amazon, the giant. The average independent hardware store with $1.9 million in sales recirculates at least 30 percent, or about $577,600, of its sales each year into its community. In comparison, Home Depot and Lowe’s recirculate 13.2 percent of $1.9 million in sales

Locally owned hardware stores beat Amazon nationwide at a dollar value that is 676 percent higher than what Amazon offers communities. 66

HARDWARE RETAILING | June 2018

and Amazon only contributes 3.9 percent of the same amount. Payroll is one of a business’s largest financial contributions to a community. The average independent hardware store or home center pays wages that are about 20 percent of store sales. Amazon needs strikingly fewer employees to generate vastly more revenue, operating with disproportionately lower labor costs than small businesses do. On average nationwide, Amazon employees’ wages are only 3.9 percent of the company’s sales. In the states where Amazon doesn’t employ anyone, the company essentially contributes nothing to local economies. Locally owned hardware stores beat Amazon nationwide at a dollar value that is 676 percent higher than what Amazon offers communities. Small business owners contribute by hiring their neighbors, spending their profits where they live, paying for goods and services locally and giving donations to their local churches, 4-H Clubs and Little League teams.


Proportion of Every Dollar Spent That Remains in a Local Economy Through labor, profit, procurement and charitable giving

30.4%

Local

13.2%

Chain

Labor Procurement Profit

3.9%

Online

Charity

0%

5%

10%

15%

20%

25%

30%

35%

Source: Home Sweet Home: Locals vs. Amazon, NRHA, Independent We Stand and PDRA

Local Businesses Contribute a Far Greater Economic Advantage (Graph shows % difference in contributions to local economy. States without Amazon employees are not included.)

Amazon Wages as a % of Sales

% of Independents’ Local Advantage

Minnesota

3.2%

840%

208%

Nevada

8.4%

263%

4.9%

519%

4,057%

2,108%

New Hampshire

0.7%

Colorado

1.4%

Connecticut

4.1%

633%

New Jersey

4.5%

571%

Delaware

3.3%

834%

North Carolina

1.7%

1,696%

Florida

2.5%

1,135%

Ohio

3.1%

874%

Georgia

4.0%

653%

Oregon

1.4%

2,079% 242%

Amazon Wages as a % of Sales

% of Independents’ Local Advantage

United States

3.9%

676%

Arizona

9.9%

California

State

State

Illinois

4.5%

582%

Pennsylvania

8.9%

Indiana

13.0%

134%

South Carolina

8.2%

273%

Kansas

8.3%

264%

Tennessee

9.2%

231%

Kentucky

26.6%

14%

Texas

3.1%

878%

Maryland

2.8%

998%

Virginia

4.1%

634%

Massachusetts

3.4%

804%

Washington

10.2%

199%

Michigan

0.5%

6,364%

Wisconsin

2.7%

1,014%

Source: Home Sweet Home: Locals vs. Amazon, NRHA, Independent We Stand and PDRA

June 2018 | HARDWARE RETAILING

67


New Marketing & History

New Marketing Material

Y

our business makes a significant economic difference in your community because you invest in employees, products, services and charities where you operate. Be sure to let your customers know how much more you contribute locally than Amazon does. Showing customers how important your business’s impact is could go a long way in convincing them to buy from your business instead of shopping online. NRHA and Independent We Stand have created a collection of marketing materials to help retailers promote the findings of the Home Sweet Home: Locals vs. Amazon study. The new posters, social media posts and other informational online graphics are available for free. They can be downloaded at TheRedT.com/local-impact. Free marketing materials are also available for retailers to use to promote their businesses’ local economic impact compared to big-box stores. These posters, social media graphics, shelf talkers and other signage are targeted to consumers or professionals, so you can choose your audience or market to both customer segments. See below for more information.

A Library of Research

N

RHA and Independent We Stand have produced research that provides hard numbers retailers can use every day.

Consumer Research In 2015, NRHA and Independent We Stand introduced the Home Sweet Home Study, which showed the positive impact consumers have on their local economies when they shop at locally owned independent home improvement stores.

The research shows that every dollar spent on project materials at an independent retailer generates twice as much local economic impact as Home Depot or Lowe’s. 68

HARDWARE RETAILING | June 2018

The research shows that every dollar spent on project materials at an independent retailer generates twice as much local economic impact as Home Depot or Lowe’s. To read about the original research, visit TheRedT.com/hsh-consumer. Marketing materials for the study are available for download at TheRedT.com/shop-local.

Pro Research In 2017, the organizations expanded on the original Home Sweet Home Study to provide retailers with data on the impact pro customers’ spending has on a community. The project, Home Sweet Home: Pros’ Edition, found that for every dollar contractors and other pros spend at independent home improvement businesses, twice the money remains in a local economy than when they buy from national chains. Read more of the pro research at TheRedT.com/hsh-pros. Marketing materials for the study are available to download at TheRedT.com/pro-shop-local.


Evaluate Leadership

Master the Fundamentals

Managers will learn about their strengths and their personality types and how the two work together.

Students learn different leadership styles, workplace innovations and ways to improve their management skills.

Strengthen Your Staff

Solve Business Issues

Course participants become better managers by learning communications skills they can use to create stronger connections with staff.

Leaders gain the skills needed to make better hiring decisions, build excellent teams and reduce turnover.

Invest in your managers. The Foundations of Leadership Program is a 16-week, college-level online course. It teaches new and upcoming home improvement retail managers to be stronger leaders and communicators so they can work toward solving business issues like employee engagement, productivity and turnover. June 20 is the application deadline for the summer session.

FOR MORE INFORMATION AND TO APPLY, VISIT NRHA.ORG/RLI.


Newsmakers

The Industry Celebrates at the National Hardware Show®

Upcoming Events June 11-13 NRF Protect Dallas

14-16 House-Hasson Hardware Summer Dealer Market Sevierville, Tennessee

18-20 PRO Group Inc. 2018 Group Merchandising Conference Atlanta

July 27-29 United Hardware Fall & Winter Buying Market Minneapolis Thousands of attendees from all over the world searched the show floor for the latest industry innovations at the 2018 National Hardware Show®, May 8-10 in Las Vegas.

D

uring the second week of May, thousands of professionals from throughout the home improvement industry gathered at the Las Vegas Convention Center for the National Hardware Show®. Attendees and exhibitors had the chance to network, learn about new products and see the latest and greatest industry trends. “The 2018 National Hardware Show was a successful one,” says Rich Russo, vice president of the National Hardware Show. “With three busy days full of excitement and enthusiasm, we were thrilled to see such a great turnout and hope everyone left feeling inspired by the ideas, best practices, insights and new connections made at the show. It was inspiring for us to see so many industry professionals from across the country and all over the world gather together here at NHS.” The 73rd annual National Hardware Show featured new exhibitors, new specialty areas and new products for attendees to explore throughout more than 3 million square feet in the convention center. The show highlighted trends in the industry, including how smart home technology is affecting home improvement and the rise of tiny homes as an option for young homeowners and a housing solution for veterans. Returning favorite areas included International Sourcing, Inventors Spotlight and Tailgate, Backyard & BBQ. Attendees explored those three sections of the show floor to find out what products are taking off around the world; what new ideas will hit the market next; and how to bring the backyard alive for entertaining. The Reimagine Retail program also returned this year. The National Hardware Show awarded $100,000 to an independent retailer who presented a business improvement project focused on in-store technology. Matt Woods, CEO of Woods Hardware in Cincinnati, won this year’s award. Read more about Woods’ project at TheRedT.com/woods-hardware, and stay tuned to Hardware Retailing for more in-depth coverage on his progress.

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HARDWARE RETAILING | June 2018

August 11-12 Florida Hardware Fall Market Orlando, Florida

14-16 Independent Garden Center Show Chicago

16-18 Ace Hardware Fall 2018 Convention & Exhibits Chicago

23-25 Orgill Inc. Fall Dealer Market Las Vegas

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.


The International Sourcing Area gives North American attendees an opportunity to see the home improvement industry from another perspective.

Entrepreneurs have a chance to present their ideas to a large audience and pitch their products to industry representatives in the Inventors Spotlight area.

Tailgate, Backyard & BBQ always draws a large crowd. Attendees and exhibitors mingle, enjoy food and explore products outside in the sunshine.

The nonprofit organization, 2x4’s for Hope, was on-site to share how they help veterans in need of shelter. Showgoers could make donations for future projects.

The Smart Home Virtual Reality Experience was a brand new offering at the show. This area allowed attendees to experience the latest smart home trends.

Matt Woods, CEO of Woods Hardware in Cincinnati, won $100,000 for his business through the National Hardware Show’s Reimagine Retail program.

June 2018 | HARDWARE RETAILING

71


Newsmakers True Value 2017 Financials Show Slight Decline

Reimagine Retail Winner Opens Restaurant

Ace Hardware Partners With 4 Giant Eagle Grocery Stores

True Value Co. has released its final annual financial report as a cooperative. The 2017 financials revealed a decline from 2016 levels. The company ended the year with $1.49 billion in total revenue, a 0.9 percent decline from the previous year’s levels. TheRedT.com/tv-2017-financials

In May 2017, Robert Lau became the winner of the first-ever Reimagine Retail program. He received $100,000 to fund a business improvement plan for his operation. After a year of hard work, he opened Caribou Jack’s BBQ at his Soda Springs, Idaho, hardware and sporting goods store. TheRedT.com/caribou-jacks-bbq

Ace Hardware has announced it will open hardware stores within four existing Giant Eagle grocery stores across Pennsylvania, including locations in the Irwin, Allegheny Towne Center, McIntyre Square and Shaler areas. The companies say they are on track to open the first of these stores this summer.

Walmart, Home Depot Invest in Technology Workers

CEO Says Prime Members Surpass 100M

Both Walmart and Home Depot have launched separate hiring initiatives to recruit technology talent to their businesses. Walmart Labs is focusing on hiring tech workers in and around the San Francisco area while Home Depot looks to add 1,000 employees to its ranks. The RedT.com/tech-workers

Amazon CEO Jeff Bezos recently revealed information that was once held secret. Amazon’s Prime membership program, which provides members with free two-day shipping and streaming audio and video content for a fee, now has more than 100 million active members. TheRedT.com/prime-members

TheRedT.com/giant-eagle

True Value Members Vote to Proceed With Sale After the company conducted 15 roundtable sessions, thousands of individual conversations and specialized communications with members, True Value shareholders have voted to approve the sale of 70 percent of the company’s stock to private equity firm ACON Investments, ending its status as a co-op. TheRedT.com/tv-sale

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Dependable Products for Over a Century 72

HARDWARE RETAILING | June 2018

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We Make Doing Business Easier

The North American Retail Hardware Association has relationships with service providers to save you money on services, including credit card processing, hiring, health insurance and more. FOR MORE INFORMATION, GO TO NRHA.ORG/BUSINESS-SERVICES


CEO Retires From 121-Store Westlake Ace Hardware Chain

CANADA

Home Hardware Recognized for Management Practices

Tom Knox, CEO of Westlake Ace Hardware, has retired. Joe Jeffries, who was previously the company’s president and COO, replaces him. TheRedT.com/westlake-ace-retires

BMR Unveils Urban Concept Store in Downtown Montreal

For the sixth consecutive year, Home Hardware Stores was named one of Canada’s Best Managed Companies. The program recognizes innovative business practices among Canadian companies. Applicants are evaluated by an independent judging panel.

Blish-Mize Executive Retires John H. Mize, executive chairman and chairman of the board of Blish-Mize Co., retired after 56 years. He plans to spend time with family and study Spanish. TheRedT.com/mize-retires

Renovations Spur Retail Hiring As homeowners opt to renovate as opposed to buy new homes, their decisions are contributing to recent growth in retail hiring figures. TheRedT.com/renovations-retail

Groupe BMR has opened the pilot location for its urban concept store La Shop in Montreal’s Griffintown neighborhood. “We are determined to be the reference point for urban hardware,” Martin Lecomte, BMR’s vice president of retail, says.

Ace Hardware Opens 100th Store in Canada Sexton Group Adds 2 Dealer Members, New Rep Sexton Group welcomes Tarpin Lumber & Truss, one of Ontario’s largest familyowned building supply companies, and Tampa Hall Ltd., from Ayr, Ontario, which manufactures structural wood framing systems. Mike Fraser has taken on the newly created role of commodity wood products manager for Eastern Canada.

Ace Hardware recently opened its 100th retail location in Canada. The store, Owen Sound Ace Country & Garden is owned by the Huron Bay Co-operative, which is adding the Ace brand to its FS co-op location. For the full story of these briefs, visit hardlines.ca/hardwareretailing.

AD INDEX Ajax Wire Specialty Co. ...........................................26 www.ajaxwire.com; 855-966-2529

Home Improvement eRetailer Summit ...................14 www.eretailerssummit.com; 203-295-3385

NRHA Health Insurance ..........................................75 www.cbigi.com/nrha-program

Apex Tool Group........................................................1 www.apextoolgroup.com; 410-773-7800

HSI.............................................................................7 www.hardwaresuppliers.com; 800-334-5625

Old Masters.............................................................54 www.myoldmasters.com; 800-747-3436

Benjamin Moore.....................................................BC www.benjaminmoore.com; 855-724-6802

Impress Art..............................................................55 www.impressart.com/diy; 631-940-9530

Orgill Inc. ..........................................................76-IBC www.orgill.com; 800-347-2860

Bonide .....................................................................63 www.bonide.com; 315-736-8231

International Products Group...................................22 www.ipgsales.net; 561-948-4632

Phifer ..................................................................... IFC www.phifer.com; 800-841-9473

Broil King Barbeques ...............................................41 www.broilkingbbq.com; 800-265-2150

IPG...........................................................................25 www.itape.com; 888-898-7834

PRO Group Inc. .........................................................5 www.pro-group.com; 303-792-3000

Cole’s Wild Bird.......................................................53 www.coleswildbird.com; 877-426-8882

Lumax......................................................................27 www.lumax.com; 844-660-6876

Quickscrews............................................................22 www.quickscrews.com; 800-743-6916

Designer Greetings .................................................23 www.cardsmartstoreinastore.com; 800-654-6960

Mars ........................................................................17 www.marsdelivers.com

Seal-Once .............................................................15 www.seal-once.com; 888-363-2628

Distribution America................................................45 www.daonline.com; 704-940-4801

Master Magnetics Inc. ............................................29 www.magnetsource.com; 888-293-9190

ShurTech Brands LLC..............................................35 www.frogtape.com; 800-321-1733

Do it Best Corp...................................................18-19 www.independentsdoitbest.com; 888-364-8237

Merrifield Paint Co...................................................61 www.maddogprimer.com

Simon Rack .............................................................24 www.simonrackusa.com; +34-976-628-537

Dutton-Lainson Company........................................72 www.dutton-lainson.com; 402-462-4141

Metaltech Scaffolding .............................................34 www.metaltech.co; 800-363-7587

Simpson Strong-Tie .................................................37 www.strongtie.com; 800-999-5099

Federal-Mogul Motorparts.......................................13 www.championautoparts.com; 800-334-3210

Midwest Fastener ..............................................30-31 www.fastenerconnection.com; 800-444-7313

SKM Products.......................................................28 www.skmproducts.com; 800-851-8464

Fiskars PRO...............................................................9 www.fiskars.com; 866-348-5661

NRHA Business Services ........................................72 www.nrha.org/business-services

SureCan .....................................................................3 www.SureCanUSA.com; 801-827-0500

Flexon ......................................................................57 www.flexonhose.com; 800-327-4673

NRHA Cost of Doing Business Study .....................65 www.theredt.com/CODB

Taiwan Hardware Show .....................................46-47 www.hardwareshow.com.tw; +886-2-2595-4212

Hillman Group Inc....................................................11 www.hillmangroup.com; 800-800-4900

NRHA Foundations of Leadership Program ............69 www.nrha.org/RLI

True Value Company ...............................................33 www.truevaluecompany.com; 888-291-7229

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

June 2018 | HARDWARE RETAILING

73


Last Word

4 Ways to Simplify Your Training

O

nline courses should be an important part of your company’s overall training program. That’s why many retailers have turned to NRHA’s arsenal of courses, designed for every level of employee, on topics such as basic product knowledge, selling skills and loss prevention.

1

74

2

Managing training doesn’t have to be difficult, either. Earlier this year, NRHA introduced a new tool to help you monitor employee activity throughout all of the association’s online training courses. The tool, called a learning management system (LMS), is easy to use for both trainers and employees. Here are some of the ways it will simplify your training.

3

4

Convenient Access

Customized Curriculum

Easy Reporting

Fast Setup

NRHA has 240 training modules grouped together in eight separate courses. With NRHA’s LMS, all of those courses are available on one easy-to-use website. Each employee has a separate username and password. When they log in, they can tell at a glance what courses they’ve taken and which they still need to take. The course is online, so employees can access training anywhere.

NRHA’s LMS has tools to help you manage all of your employees’ training and guide them through a course curriculum customized for their specific training needs. Each employee creates their own login using an email and password. Assign students specific courses and even set due dates for course completion. Employees will get email notifications when the due date is getting close.

For each course, employees will take tests to measure their knowledge of the topic. NRHA’s LMS offers a variety of reports to measure their progress through each course. For example, if you want to know how many of your employees have completed the selling skills test, you can find the answer in just a few clicks. Or, get a customized report emailed to you on a regular basis.

To access the LMS, you must first be an NRHA Training Member. Then, getting started is easy. You can start by contacting NRHA’s member growth and development manager Marci Taschler at 317-275-9421 or mtaschler@nrha.org. She can help you become an NRHA Training Member, if you’re not already, and then walk you through the simple setup process.

HARDWARE RETAILING | June 2018


Are you offering health insurance to employees? In today’s competitive market, providing health benefits can make a big difference to potential employees and could determine whether they accept your job offer or a competitor’s offer.

Stay Competitive We’re here to help. We know health insurance can be expensive, so we designed the NRHA Health Insurance Plan specifically for independent home improvement retailers. The plan offers great benefits and numerous perks at a reasonable price. Get in touch to learn more today.

“We’ve helped so many independent home improvement business owners save money on health insurance with the NRHA plan. The first step is getting a quote. What do you have to lose?” Bob Chiesa | President & CEO | Custom Benefits Insurance Group Inc. FOR MORE INFORMATION, GO TO CBIGI.COM/NRHA-PROGRAM


Discover fantastic buying opportunities with deep discounts from thousands of vendors, walk through fully merchandised concept stores and explore special product showcases!


Come See Why an Orgill Dealer Market is Different From All the Rest The industry event that has everything you need to increase your profitability.

The Best Deals

Bring Ideas Back to Your Business

Retailers from more than 50 countries come together

As you shop the Dealer Market, you’ll find model stores

each spring and fall to take advantage of all that Orgill

that offer real-life merchandising ideas, suggested

Dealer Markets have to offer. Our show provides a unique

product assortments and ideas for different store layouts.

opportunity to see vendors showcasing their best and

Take a walk through those stores to see Orgill’s retail

newest products, all at outstanding promotional prices!

programs and services in action.

Held in prominent cities across the country, the Markets

Take some time to browse the product showcases highlighting

include floor space as large as 1 million square feet. Along

the breadth of product Orgill offers and talk with vendors

with Market-only deals, retailers find e-commerce solutions,

and other retailers to learn more about industry trends and

free educational seminars, networking opportunities,

new products. At an Orgill Dealer Market, there are plenty of

retail services and more!

new ideas to take home and implement in your business!

Join us August 23-25 for our Fall Dealer Market in Las Vegas! Register online or give us a call today! 1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017


©2017 Benjamin Moore & Co. Benjamin Moore, Paint like no other, and the triangle “M” symbol are registered trademarks licensed to Benjamin Moore & Co.

When you join the Benjamin Moore retailer network, it’s your store, not a franchise. Which means no franchise fee, and 100% of your investment goes into your own store. Go to benjaminmoore.com/newdealers to learn more.


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