Hardware Retailing June 2021

Volume 220 • Issue 6 • June 2021 • hardwareretailing.com

Serving Hardware, Home Center & Building Material Retailers

Published by the th North N h American America Hardware H d re and Paint Asso Association i i n

For the People How Prioritizing Diversity Boosts Business and Morale Page 26

Cybersecurity: After the Hack Page 32

JUNE SPONSOR Scan the QR code or visit YourNHPA.org/codb to submit your information online.

Compare. Assess. Improve.

When you participate in the Cost of Doing Business Study, it can help you to identify future financial opportunities and set goals for your business. It’s free, easy and confidential.

Participate by June 30 to get a free copy.

“It’s by observing change in any metric that you can diagnose problems in your business and find ways to correct them.”

Jim Robisch | The Farnsworth Group

YourNHPA.org/codb

Cost of Doing Business Study

Volume 220 • Issue 6 • June 2021 • hardwareretailing.com

Serving Hardware, Home Center & Building Material Retailers

Published by the th North N h American America Hardware H d re and Paint Asso Association i i n

For the People How Prioritizing Diversity Boosts Business and Morale Page 26

Cybersecurity: After the Hack Page 32

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Volume 220 • Issue 6 • June 2021 • hardwareretailing.com

Published by the th North N h American America Hardw H d

Compare your business to the rest of the industry.

For the P

How Prioritizing Divers Boosts Business and M Page 26

Cybersecurity: After the Hack Page 32

Cost of Doing Business Study

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Serving Hardware, Home Center & Building Material Retailers

ware re and Paint Asso Association i i

Listen to what matters most.

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CONNECTIONS

Follow Us Online HEADQUARTERS COMING IN JULY

What Makes a Strong Leader 136 N. Delaware St. #200 Indianapolis, Indiana 317-275-9400 NHPA@YourNHPA.org YourNHPA.org

OUR MISSION

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

NHPA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois EXECUTIVE VICE CHAIRMAN Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

Each year, NHPA recognizes some of the best young retailers in the industry for the ways they have grown their businesses and contributed to the independent home improvement sector.

Hardware Retailing talks to former Young Retailer of the Year honorees about what they have learned about leadership since being honored and presents the profiles of this year’s honorees.

“Being chosen as a Young Retailer of the Year is a high honor. These retailers exemplify the determination and innovation that keep our industry growing.”

—Scott Wright Executive Director, NHPA Advanced Retail Education Programs

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES CIRCULATION DIRECTOR Richard Jarrett, 314-432-7511, Fax: 314-432-7665

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HARDWARE RETAILING | June 2021

PRODUCTS & DIGITAL EDITOR Hans Cummings, hcummings@YourNHPA.org ASSOCIATE EDITOR Lindsey Thompson, lthompson@YourNHPA.org SENIOR DESIGNER Aubrey Smith GRAPHIC DESIGNER Autumn Ricketts DIGITAL MEDIA SPECIALIST Kevin Trehan PRODUCTION MANAGER Austin Vance SALES & PRODUCTION ASSISTANT Freda Creech

MARKETING & COMMUNICATIONS EXECUTIVE DIRECTOR, MARKETING & COMMUNICATIONS Whitney Daulton CORPORATE COMMUNICATIONS MANAGER & EDITOR Julie Leinwand

NHPA SALES FIELD SALES MANAGER & SOUTHERN SALES DIRECTOR Scott Gilcrest, sgilcrest@YourNHPA.org, 317-508-7680 MIDWEST SALES DIRECTOR David Brodowski, dbrodowski@YourNHPA.org, 440-520-9551

CHIEF OPERATING OFFICER & PUBLISHER Dan Tratensek

Matt Woods, Woods Hardware, Cincinnati, Ohio

NHPA CANADA Michael McLarney, +1 416-489-3396, mike@hardlines.ca 330 Bay Street, Suite 1400 Toronto, ON, Canada M5H 2S8

TRENDS EDITOR Todd Taber, ttaber@YourNHPA.org

PRESIDENT & CEO Bob Cutter

Jackie Sacks, Round Top Mercantile Co., Round Top, Texas

NHPA CANADA

PROFILES EDITOR Kate Klein, kklein@YourNHPA.org

EXECUTIVE STAFF

Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon

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

MANAGING EDITOR Melanie Moul, mmoul@YourNHPA.org

NORTHEAST, NORTHWEST & CANADA SALES DIRECTOR Jordan Rice, jrice@YourNHPA.org, 217-808-1641

David Dishke, Grand River Home Hardware, Caledonia, Ontario

STATE & REGIONAL ASSOCIATIONS

317-275-9400, editorial@YourNHPA.org

SOUTHERN BUSINESS DEVELOPMENT MANAGER Jessi Moore, jmoore@YourNHPA.org, 260-200-0306

DIRECTORS Craig Bond, Tommy’s Paint Pot, Eugene, Oregon

SECRETARY-TREASURER Bob Cutter, NHPA President and CEO

EDITORIAL, DESIGN & PRODUCTION

NHPA Hardware Retailing (ISSN0889-2989) is published monthly by the North American Paint and Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50/year. Canada $75/year. All other countries $100/year. (Air Mail $60/year additional). Single copy $7. The Annual Report issue can be purchased for $30.

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 © 2021 North American Paint and Hardware Association. No editorial may be reproduced without prior permission of the publisher.

REPRINTS: For price quotations, contact the Editorial Department at editorial@YourNHPA.org. Printed in the U.S.

CHIEF FINANCIAL OFFICER & EXECUTIVE VICE PRESIDENT, BUSINESS SERVICES David Gowan

MEMBER SERVICES & TRAINING 800-772-4424, NHPA@YourNHPA.org

TRAINING MANAGER & EDITOR Jesse Carleton, jcarleton@YourNHPA.org RETAIL ENGAGEMENT SPECIALIST Renee Changnon, rchangnon@YourNHPA.org EVENT MANAGER & RETAIL SUPPORT Katie McHone-Jones, kmchone-jones@YourNHPA.org DATA & INFORMATION COORDINATOR Natalie Harris EXECUTIVE DIRECTOR, PAINT & DECORATING PROGRAMS LeAnn Day, lday@YourNHPA.org EXECUTIVE DIRECTOR, ADVANCED RETAIL EDUCATION PROGRAMS Scott Wright, swright@YourNHPA.org

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Volume 220 | Issue 6 | June 2021 CONTENTS

32

26

38

COVER STORY

Leading Diverse Teams The topic of diversity in the workplace is getting increased attention, but two retailers already have histories of providing safe places for people of many ethnicities, backgrounds and cultures to work and shop. See how these two businesses built company cultures focused on inclusion.

32

OPERATIONS

Protecting Your Data

Experts say the risk of small businesses experiencing a cyberattack is growing. Learn how two retailers responded to cyberattacks and the preventative measures you can take to protect your business.

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HARDWARE RETAILING | June 2021

38

CATEGORY SPOTLIGHT

Pampering Pets

Discover best practices for finding success in the pet products niche, including what to stock, how to appeal to your pet-loving customers and ways you can welcome furry friends into your store.

In Every Issue 06 ON THE WEB 08 EDITORIALLY SPEAKING 10

TAKING CARE OF BUSINESS

14

NHPA NEWS

16

TRENDS

18

NEW PRODUCTS

40 CHECKOUTS 44 CALENDAR 46 LAST WORD

BENJAMIN MOORE®

REGAL® SELECT

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CONNECTIONS

Stay Informed ON THE WEB

There’s much more to discover from this month’s issue of Hardware Retailing. Visit hardwareretailing.com/june to read these articles and find new ways to drive your business.

Find More Stories Online MARKETING

Shopping With Spot Strosniders Hardware has invited pets into its stores for over 15 years. Discover three best practices for welcoming your customers’ furry friends.

ASSOCIATION

Inside the Classroom

The Power of Inclusion Learning how to lead diverse teams can empower every staff member. Discover some key resources to help you increase and capitalize on a welcoming workforce.

Change From Within

Creating a more diverse workplace first means taking stock of your business, then figuring out how you want to change. In this conversation with an adviser for the Society for Human Resource Management, discover beneficial first steps to arrive at your goal.

Enriching Employee Training

Learning to work in a diverse store culture takes practice.

In the Trainer’s Toolbox lesson, “Serving Diverse Customers,” employees will explore three scenarios where they must make choices that will either make your customers feel welcome or risk losing them to competitors.

Follow the QR code to watch videos of NHPA’s Retail Management Certification Program (RMCP) instructors and students discussing the program’s top benefits. Plus, hear instructors and former students share their lasting takeaways from the program.

The deadline to apply for the upcoming RMCP session is July 1.

EVENTS

NHS Previews 2021 The National Hardware Show is introducing new digital components to help you access new product information and trends all year long. This year’s event is scheduled for Oct. 21-23 in Las Vegas.

Leadership in Action

Discover how Gina Schaefer, owner of A Few Cool Hardware Stores, welcomed and promoted inclusion initiatives at her stores and how those programs have given her operation the competitive edge.

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HARDWARE RETAILING | June 2021

Head to hardwareretailing.com/subscribe to sign up for newsletters on industry headlines, new products and more.

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CONNECTIONS

Send Melanie a Message mmoul@YourNHPA.org

EDITORIALLY SPEAKING

Melanie Moul YourNHPA.org/es-pod

Top-Down Security

“Do not make cybersecurity a chore you’re continually playing catch up with.”

WE’VE HAD A ROUGH TIME in our house this week keeping up on chores. I had to run towels through the wash three times because we kept forgetting to put them in the dryer. We are ignoring the dishes, and we got down to our emergency roll of toilet paper, requiring a midweek run to the store.

I know I’m not alone and that many of you have weeks like that in your home and in your business.

The problem with staying on top of need-to-do tasks is that once you get them done, they don’t stay off the list for too long after that. Mix them in with all the once-in-a-while tasks and you have another full-time job.

I’m not here to explain Management 101 to you or to scold you for pulling a clean fork out of the dishwasher as you need one instead of unloading the whole thing at once. But I do want to call your attention to a task that you should bump up the priority ladder: cybersecurity.

Ransomware, phishing, data breaches. They are all different types of cyberattacks your business can experience. And experts say they have become exponentially more common, especially for small-t0-medium size businesses.

Just today, we’re reeling from headlines about the aftermath of the Colonial Pipeline ransomware attack, and there is a new incident that has severely affected operations at Ireland’s health services.

Now, you may be thinking, “My business is not in fuel logistics or health services, so I’m not sure why these incidents are something I should be concerned about.”

In this issue, we show how this industry is at risk with stories from two retailers whose businesses were breached by ransomware attacks within the last 18 months. They each had varying levels of security and insurance policies in place, but their operations were still vulnerable. Read their stories on Page 32 and find additional resources to help you take the next step to protecting your business at hardwareretailing.com/ransomware.

One lesson these retailers want to pass on to you, their peer, is that cybersecurity is an issue that should be managed from the top down. Just like you wouldn’t ask your kid to help you refinance your house, cybersecurity management and follow through is a job for the primary decision-makers.

Do not make cybersecurity a chore you’re continually playing catch up with.

Because it will eventually catch up to you.

Melanie Moul Managing Editor

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HARDWARE RETAILING | June 2021

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CONNECTIONS

Send Dan a Message dant@YourNHPA.org

TAKING CARE OF BUSINESS

Dan Tratensek YourNHPA.org/tcb-pod

For Better or For Worse

“...remember the moments that really count. Remember that your employees were there for you when you needed them most.”

NEARLY THREE DECADES AGO, my wife and I tied the knot.

Of everything that took place in the run-up to our wedding, it wasn’t the hours spent planning the ceremony, the decorations dotting the aisle at the Hopewell Presbyterian Church or even the bachelor party that stuck with me. (Well, maybe a little.)

No, it was the advice our minister gave us prior to our wedding that left a lasting impression. He told us to remember how much we loved each other at that moment—before we traded rings, exchanged vows or left for our honeymoon. He said, when times are tough or when money is tight, think back to the feelings we had on that day and remember everything we loved and appreciated about one another.

I think this is solid advice for any relationship, and I think it is particularly pertinent right now.

I have talked to a lot of retailers over the last 18 months about the challenges they have faced and how they managed to pull through these trying times.

In most cases, the first thing they give credit to is their employees.

They list all the ways their operation is like a family and how their team members rose to the occasion and pulled together during the long shifts, busy days and the overall shadow cast by working during the pandemic.

Here’s where I’d like to return to Pastor Lee’s advice. I encourage each of you to hold on to those feelings you have right now—the respect, the admiration and the appreciation for the efforts and dedication of your team.

In the days to come, when frustrations arise and arguments about who’s working what shift or why that pallet didn’t get put away start to crop up, I want you to remember the moments that really count. Remember that your employees were there for you when you needed them most. That while your business was deemed essential to your community, your team’s hard work was essential to you staying in business.

I know this isn’t a cure-all, but so often we tend to dwell on the negative interactions we have with the people we are closest to. All I can say is, from nearly 30 years of personal experience, you build stronger relationships by focusing on each other’s good qualities and the times you were there for one another.

I’ll save the stories about the bachelor party for another day.

Dan M. Tratensek Chief Operations Officer & Publisher

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HARDWARE RETAILING | June 2021

STRATEGY & DATA-DRIVEN INSIGHTS

OPERATIONS & RETAIL BEST PRACTICES LEADERSHIP & CULTURE

Listen to what matters most.

NHPA offers three podcast series that feature interviews and insights from leading retailers, wholesale executives, industry experts and more.

Subscribe and start listening today!

YourNHPA.org/podcasts

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These features make it even easier to give our customers the convenient shopping options they expect, plus we’re getting more online business and foot traffic in our stores — it’s a win-win.

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Do it Best has four game-changing features to help you meet the needs and expectations of your customers, including same day in-store pickup, member-sourced inventory, enhanced curbside pickup, and the all new Pick N Pack app to help your associates manage online order notification, retrieval and fulfillment.

Do it Best ecommerce gives you the tools you need to reach your customers wherever they are and bring them to exactly where you want them to be — your growing business.

>> WATCH AND LEARN To learn more, call us today at 888-DO-IT-BEST (888.364.8237). doitbestonline.com

EDUCATION

Apply by July 1 NHPA NEWS

Visit YourNHPA.org/rmcp to apply or learn more about the Retail Management Certification Program.

Seeing ROI Impact of a Business Improvement Project “My project was to raise our gross margin percentage by 1.3 percent for fiscal 2021 over our three-year average. This would put us in line with the NHPA’s Cost of Doing Business Study industry average. I did this by implementing a price change rhythm and started a training program focused on the departments that mattered the most at that time of year. Our results from my Q4 2020 proof of concept were that we raised our gross margin percentage by 3.4 percent in what was traditionally our worst quarter for the metric. This led to an additional $25,201 in gross margin dollars generated in Q4 2020.”

Austin Diehl Director of Retail Operations Randy’s Hardware, Timberville, Virginia Retail Management Certification Program Class of 2020

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HARDWARE RETAILING | June 2021

Students in the NHPA Retail Management Certification Program have the opportunity to learn from industry experts and their peers in a collaborative classroom environment.

EDUCATION

Make a Strategic Investment ENROLL IN THE INDUSTRY ’S PREMIER MANAGEMENT PROGRAM I F Y O U ’ R E L O O K I N G to take your leaders to the next level in your operation, advanced training is a smart investment. The North American Hardware and Paint Association’s (NHPA) Retail Management Certification Program is a college-level course that prepares owners and key employees with profit-focused store operations education.

With real-world training and a business improvement project tailored to meet the needs of your business, the six-month program is designed to help business owners see immediate results and a return on investment (ROI).

“The Retail Management Certification Program provides methodologies, ways of thinking and systems so that these students can examine and reexamine their operation,” says program instructor Gary Petz. “As a young manager, I didn’t have that. I had all kinds of information and reports that were on my desk every single day, but I didn’t have a way to take that information and put it into a methodology. This course does that.”

Petz believes anyone in the industry can benefit from the program.

“Employee management, inventory management, learning how to set goals and budgets—all of that is as valid for a paint store as it is for a farm and ranch store or lumberyard,” he says. “This course is about finding advantages to improve your business.”

The deadline to apply for the 2021 class session is July 1.

ASSOCIATION

Explore Your Options Visit YourNHPA.org/membership to learn more about additional training and other member services.

Build a Positive Work Culture Find the activity “Serving Diverse Customers” at YourNHPA.org/trainers-toolbox.

ONE CO MP O NE N T O F G R E A T customer service is treating all customers with respect so anyone feels welcome at your business. And sometimes that takes a little training.

You can help employees learn how to respond to unknown situations by giving them sample scenarios to work through.

This month’s Trainer’s Toolbox activity, “Serving Diverse Customers,” guides learners through three possible scenarios they could encounter in a retail environment. Specifically, these scenarios focus on helping employees understand how to serve diverse customers and create a culture built on respect for others.

RESEARCH

Get a Free Business Analysis With This Year’s Study Participation in the Cost of Doing Business Study is free, easy and confidential.

To learn more or get started, visit YourNHPA.org/codb.

SU BMI T Y O UR IN F O R M A T IO N T O DAY for NHPA’s 2021 Cost of Doing Business Study.

This financial benchmarking tool delivers data and insights that allow retailers to increase profits and strategize for their financial future and success. By participating in the study, you’ll receive a free copy of the study along with a personalized financial analysis of your operation with ratios and other financial tools. See Page 43 for a quick way to submit your information online.

BUSINESS SERVICES

Access Affordable Insurance For information about the NHPA Health Insurance Program, visit YourNHPA.org/health-insurance.

D ID YOU KN O W you have access to affordable group health insurance through your association? The NHPA Health Insurance Program, managed by Custom Benefits Insurance Group Inc., is a group health insurance plan that allows independent operators to access benefits at lower rates due to the volume of retailers who participate in the nationwide program.

June 2021 | HARDWARE RETAILING

15

OPERATIONS

The DIY Factor TRENDS

Get more insight from Venveo on how DIYers are shopping by visiting hardwareretailing.com/diy-2021.

At Home With

Home Builders UNDERSTAND THE RETAIL NEEDS OF IN-DEMAND PROS

M A R K E T I N G F I R M V E N V E O teamed up with The Farnsworth Group to survey 101 residential contractors on how their shopping patterns have shifted in the past year.

The results offer valuable insight into what pros need. As monthly home starts hit their highest d d h d can put you one step ahead h d off your competitors. pace since 2006, understanding their needs

Home builders have a digital focus.

New brands are gaining traction.

Your website helps home builders find products.

Currently, 43 percent of home builders purchase home improvement products online for delivery or store pickup, much higher than in years past.

Data indicates about one-third of home builders have tried a new brand of product in the past year. Many switched because of product availability.

Home builders are looking for new brands, and 64 percent of them use supplier or retailer websites to find them. About 80 percent found products on YouTube.

PUT IT TO USE If you don’t already, speak to your wholesaler about incorporating e-commerce options on your website.

PUT IT TO USE Product availability is key.

Communicate your inventory accurately and immediately to gain customers’ trust.

PUT IT TO USE Use your website to feature YouTube videos to drive engagement—and discovery—across your online platforms.

Source: Venveo/The Farnsworth Group

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HARDWARE RETAILING | June 2021

NAVIGATE

YOUR MARKETING PROGRAM Create a destination no matter where your customers travel

With the PRO Hardware and Farm Mart programs, independent retailers can create an omnichannel marketing program that will capture customer attention no matter how and where they choose to interact with your business. With a wealth of resources from the mobile program and social media content to store signage and print advertising, customers will recognize your brand in their timelines, on their phones and as they navigate your store in person.

The PRO Hardware and Farm Mart programs guide you through the available marketing tools so you can create a program that makes your business the destination for your community and beyond.

PRO Hardware & Farm Mart Distributors: The Bostwick-Braun Co. Toledo, OH • 419.259.3600 Horizon Distribution, Inc. Yakima, WA • 509.453.3181 Wallace Hardware Co., Inc. Morristown, TN • 423.586.5650 Learn more about the PRO Hardware and Farm Mart programs by contacting Katie Westervelt, Advertising Manager, at 303.792.3000 or katie.westervelt@pro-group.com Find us online at www.prohardware.com or www.farmmart.com.

Vendor Partners:

PRODUCTS

Retailer Recommendations NEW PRODUCTS

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

Automotive Cleaner Diamond Shine™ Automotive Cleaner was invented for car restoration and detailing professionals. It is designed to remove hard water stains from windshields and rust from alloy, chrome and stainless steel. The cleaner also restores glass headlights, cleans mechanic tool sets and polishes. It is also suitable for marine cleaning and can restore brass and chrome hardware, aluminum, fiberglass and marine glass.

DIAMOND SHINE diamondshinecleaner.com or 833-444-7224

Wire Stripping Pliers ERGO™ Wire Stripping Pliers feature insulated dual-component handles and an anti-corrosion treated phosphate finish. They can strip copper wire up to 5 mm and are rated for working on live equipment up to 1000V in compliance with IEC 60900.

BAHCO bahco.com

Toilet Flange Repair Ring Oatey’s Fix-It Repair Ring™ securely repairs broken, cracked or worn-out toilet mounting flanges without replacing the flange. It is compatible with all flange and toilet installations and flooring types.

OATEY oatey.com or 800-843-7584

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HARDWARE RETAILING | June 2021

Showerhead and Wireless Speaker Kohler’s Moxie® showerhead and wireless speaker combines full-coverage spray with an IPX7-rated waterproof Harman Kardon® Bluetooth® speaker.

The speaker can be used outside the shower, independent of the showerhead, to stream music in any room for up to 9 hours on a single charge.

The showerhead features a 2.5 gpm maximum flow rate at 80 psi and the speaker is compatible with the KOHLER Konnect™ app.

KOHLER kohler.com or 800-546-5437

Self-Leveling 3-Point Laser Equipped with a green laser for enhanced visibility, Empire Level’sSelf-Leveling 3-Point Laser delivers up to four times the brightness of single diode red lasers. Three-point lasers are ideal for plumb-point transfers in floor to ceiling applications.

All laser electronics are impact protected with rugged rubber overmold and locking pendulum. It features tripod mounting points, a 125-foot range and rare earth magnets to hold the laser securely on metal surfaces. It includes a carrying case, batteries and is backed by a limited one-year warranty.

EMPIRE LEVEL empirelevel.com or 800-558-0722

LED Tape FlexTape™ is a Chip on Board, or COB, LED tape that features diodes directly mounted on a printed circuit board and a continuous fortified coating, creating a flexible, high-density LED lighting strip.

TRESCO LIGHTING trescolighting.com or 800-227-1171

June 2021 | HARDWARE RETAILING

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NEW PRODUCTS

Road Flare Kit The H.D. Classic Road Flare is a durable, 18-LED flare that is a safe alternative to incendiary flares. Constructed of crushproof polycarbonate plastic with an impact-resistant rubber housing, it features focused lenses to increase brightness. A strong magnet attaches the flare to any magnetic surface.

The flare has seven flash patterns with up to 2 miles of visibility. The kit includes four flares, eight AA batteries, two hex wrenches and a soft-sided nylon carrying bag. The flares are waterproof, float and are available in amber or red.

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Scented Firestarter Each Down To Earth Firestarter package contains 10 firestarter pods suitable for use in fireplaces, wood stoves, campfires and more. They replace kindling and are available in cinnamon, citronella, s’mores, maple bacon, whiskey woods, redwood forest and fresh cut pine scents.

NORTHERN LIGHTS CANDLES northernlightscandles.com or 800-836-8797

Safety Storage Efficiency • Improved storage capacity • Operating in aisles as narrow as 6ft • Safer long product handling • Indoor & outdoor capabilities Call 877-266-2456 for free a demo

combilift.com hardware ad amanda 7x4.875 rev 1.2.indd 1

06/04/2021 13:54:43

June 2021 | HARDWARE RETAILING

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NEW PRODUCTS

Door Hinge Tool Hinge Hero is designed to be used with spray lubricants on residential door hinges, directing the lubricant between hinge seams while containing the overspray in the tool and eliminating oily spray and drips on doors, walls, woodwork and floors.

PRACTICAL PRODUCT SOLUTIONS practicalproductsolutions.com or practicalproductsusa@gmail.com

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HARDWARE RETAILING | June 2021

Magnetic Pick-Up Tool Magnetic Pick-Up Pal™ picks up nails, nuts, bolts, screws and scrap metal up to 65 pounds. It includes a sturdy 35-inch steel handle to reach under vehicles, workbenches and tables.

MASTER MAGNETICS INC. magnetsource.com or 866-867-0941

The 1st Touch-Screen “Window and Door Parts” Kiosk for Hardware Stores!

• Store visitors can shop over 36,000+ popular and specialty window and door parts using the touch-screen online store and printed catalog.

• Choose from a Counter Kiosk station or Floor Kiosk.

• Integrate the touch-screen online parts store with your current website.

• User-friendly kiosk makes shopping for parts simple: 1. Store visitors find the part they need.

2. Add to cart.

3. Enter a credit card, and the part is delivered.

• No need to stock hundreds of regional specialty hardware items.

• Promote this service to your residential and commercial accounts to increase store traffic.

• Small enough to fit on most counters. Floor models are a perfect fit for an end-cap unit.

For More Details Call:

Counter Kiosk

Floor Kiosk

800-352-0801 Ext. 106

or email: pjpierangeli@strybuc.com June 2021 | HARDWARE RETAILING

23

PRODUCTS

See More Products NEW PRODUCTS

To stay informed about new innovations and trends, subscribe to the twice monthly Hot Products newsletter at hardwareretailing.com/subscribe.

Portable LED Lamp TURN+ is a wireless and waterproof portable LED lamp inspired by natural light and classic Japanese lanterns.

Available in black aluminum, brass and stainless steel, TURN+ features an integrated touch sensor and two types of LED segments. A simple gesture adjusts the light to one of four different gradations ranging from candlelight to reading light to intense light ideal for gatherings.

AMBIENTEC ambientec.co.jp

Construction Long Tape Crescent Lufkin’s Steel Construction Long Tape features a rugged overmold casing that surrounds the tape for greater protection and has built-in tether points to secure the reel when working at height. An extra-wide, dual-sided end hook increases surface area for a strong grip, and the dual-prong system folds up or down allowing utilization of both sides of the tape. It is available in 100-foot or 50-foot lengths, both with SAE and metric markings.

CRESCENT crescenttool.com or 800-650-8665

Garden Bag Kangaroo® Garden Bags can be used for pulled up weeds, grass clippings, gathering laundry, storing toys and more.

It folds down to 3 inches for space-saving storage. An internal spring pops it open for use. It features sturdy handles and a tear- and mildew-resistant design.

Fiskars fiskars.com or 866-348-5661

June 2021 | HARDWARE RETAILING

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WEBINAR

LEADERSHIP SERIES

Diverse Teams Strengthen Your Business Gina Schaefer, owner of 13 hardware stores in Maryland and Washington, D.C., offers insights on leading diverse teams in a webinar available at YourNHPA.org/webinars.

Welcome AT Work HOW ENCOURAGING DIVERSE TEAMS HELPS PEOPLE AND BUSINESS THRIVE

BY

P

KATE

rospective employees at Wankel’s Hardware in New York are asked an unusual interview question: “What is your American dream?”

The question is important because store owner Katherine Wankel’s goal is to provide jobs that she considers to be launch pads for immigrants.

Pursuit of social justice and inclusion are part of her company’s mission.

At Dale Hardware in Fremont, California, the question, “What is your preferred language?” is an optional application question most job applicants choose to answer. Candidates don’t have to speak English to get jobs at the store, though speaking multiple languages is a plus for serving the varied customers in Fremont.

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HARDWARE RETAILING | June 2021

KLEIN

Improving diversity in hiring and engaging in practices that actively oppose racism continue to be growing topics of national discourse in the U.S., but providing safe places for people of many ethnicities and cultures to work and shop has been a significant priority for retail businesses like Wankel’s Hardware and Dale Hardware for many years.

Leading an inclusive multicultural team is an integral part of serving a diverse community well. Meeting the needs of a multiethnic community includes employing people who reflect the demographics of the area and listening to diverse employees’ feedback on how they need to be supported and can better serve customers.

Read on to learn how Wankel’s and Dale Hardware have taken intentional steps to serve diverse people.

STRENGTH IN DIVERSITY At Dale Hardware, hiring local residents means a diverse workforce that relates to a variety of cultures in the area.

Front: Sarah Sammons (left) and Dolores Munoz Rear (from left): Chris Beresford, Fernando Valladolid, Armon King, Anderson Dang, Antonio Aniciete

BETTER TOGETHER Dale Hardware has developed a strong team of diverse employees, including cashier Dolores Munoz, who collaborate well and share new ideas for improving the ways the store serves customers.

Hiring a diverse group of employees came somewhat naturally for Dale Hardware; as the community changed, so did the ethnicities of many of the store’s job applicants. However, the operation went beyond just hiring people from different cultures and took intentional steps to recruit and welcome a variety of employees.

They created recruitment commercials for a local Chinese-language TV station, hosted a multicultural barbecue, set up a booth at a Chinese New Year’s festival and published ads in Spanish.

Responding to Change When Dale Hardware first opened in 1955, its all-white staff reflected the demographics of the Fremont community.

About 40 years later in the 1990s, the community population began to shift and progressively became more diverse. Now, more than half of local residents are Asian, and the store’s 85 employees represent 20 different countries.

“The Bay Area is a melting pot of so many different nationalities and so many languages,” says Chris Beresford, who serves as the store’s training coordinator. “We’re hiring from a very diverse group of folks.”

The store’s white workers still make up a majority of the team, but about 30 percent of the employees are Hispanic and 22 percent are Asian. English, Spanish, Mandarin and Hindi are employees’ most commonly spoken languages.

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HARDWARE RETAILING | June 2021

Purposeful Hiring Wankel’s Hardware has been in business in New York City since 1896, but the store got a new mission in the 1970s that has diversified its employee team and customer base.

The owner, Katherine, wanted to fight social injustice and considered pursuing a career outside of the family business doing service work.

Then she realized she could use the hardware store as a powerful tool for good. She began developing relationships with organizations that help refugees resettle in the U.S., aid people with disabilities gain work experience and help place ex-offenders in jobs after being released from prison.

Fifty years later, Wankel’s Hardware has a long record of providing foundational work experience for people starting new lives—especially immigrants and refugees.

“It’s our responsibility to help new Americans get settled here, establish their roots and make sure they have opportunities just like the rest of us,” vice president Sean Wankel says.

The 2,500-square-foot store has a staff of eight people that has looked very different over the years.

A map in the store is marked with the 40 different countries from which employees have emigrated during the past half century.

Employing diverse people allows Wankel’s to serve very specific populations. In fact, staff from the French consulate’s office in New York shop at the store because Wankel’s has employees who speak French.

Building Diverse Teams Both Dale Hardware and Wankel’s Hardware have built their diverse employee teams by developing hiring practices that make their operations welcoming to a variety of people.

But the traits they look for in job candidates are universal. They want to hire workers who are trustworthy and accepting of people who are different from them, and who have strong work ethics and friendly personalities.

The organizations Wankel’s Hardware works with to recruit immigrants prescreen job candidates for the store, but hiring decisions are made by store staff. Employees’ fit within the business has to do with company culture, not outside cultural factors, Sean Wankel says.

Customers notice the employees’ good attitudes and the store’s positive culture, he says.

“The employees who are refugees are generally very positive because they’re happy they were able to escape war or famine or other hardships,” he says. “That positivity influences the rest of the staff. I’m frequently told we have a very upbeat store environment with smiles all over the place.”

At Dale Hardware, diversity has made the culture more inclusive and the employee turnover lower. It has also increased the whole team’s creativity by allowing the company to incorporate unique ideas. For example, the store has an employee who owned a dollar store prior to moving from Mexico to the U.S. He has thoroughly reorganized and improved the hardware department.

“We’ve realized, as the sense of community grows within our store among people with diverse backgrounds, that everyone feels valued. Employees feel accepted when they see other people like them here,” Beresford says.

B ET TER TEA MWO RK

5 Tips for Creating a Welcoming Culture 1 | Practice fairness.

Create training programs, opportunities for advancement and rewards for good performance that demonstrate that every staff member is equally valued. Find ways for every team member to earn recognition. Celebrate employees equally on their birthdays, for holidays and when they accomplish work goals.

2 | Choose well-suited mentors.

4 | Be protective of your team.

Recruit experienced employees to serve as mentors for new workers. Link mentors based on characteristics that make them a good fit with new hires. At Dale Hardware, a seasoned staff member mentored a new employee who had the same learning disability as the experienced employee’s child. The fit helped the new worker thrive. A shared first language could be another reason for linking a mentor with an employee in training.

Watch for customers and vendors who disrespect your employees. People with disabilities and refugees can be more vulnerable to harassment and may also be less likely to report it to their bosses. Be proactive to create a culture where it’s safe to report any instance of harassment. “It isn’t right for anybody to be disrespected, especially in our workplace,” Sean Wankel at Wankel’s Hardware says. “If you don’t have open communication and trust, there are going to be difficulties.”

3 | Ask for diverse ideas.

5 | Encourage small team projects.

One of the key benefits of having a diverse workforce is creating a culture where employees share and appreciate diverse ideas.

At Wankel’s Hardware, new and creative ideas for merchandising often come f rom employees who are new Americans.

Build teamwork by asking different employees to work together on small projects that require them to communicate about goals and collaborate.

The sense of accomplishment team members feel when they complete a project together helps employees bond with each other.

June 2021 | HARDWARE RETAILING

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B R OAD EN YOUR REAC H

Nurturing Inclusion on Your Team Diversify your marketing. Find out what local TV, radio, newspaper and other media sources operate in your community in different languages. Learning what’s available may be as simple as asking your employees what TV stations are their favorites in their preferred languages. Dale Hardware’s staff identified where to advertise and then had two employees who speak Mandarin appear in a commercial on the Chinese TV station.

Use technology for quick help. When communicating with co-workers or customers who don’t fluently speak your primary language, use a mobile app to help translate what they’re asking and what you need to say. Dale Hardware employees have used apps such as Google Translate and Apple’s Translate.

Make your store environment inclusive.

Adding directional and product department signage in all of the languages spoken locally makes your store more shoppable and welcoming for customers who don’t speak English as their first language.

Communicating Across Cultures The greatest challenge of leading a diverse team is communication, according to Wankel.

Language can be a barrier, and so can differing understandings of customer service and misinterpreted task instructions.

“When working with new employees from diverse backgrounds, you need to communicate a task and an objective, and then verify they understand the objective by confirming it with them,” Wankel says. “American customer service can be very different from customer service in other cultures, so you need to start from scratch and communicate what you want the customer to experience when they come here and focus on that consistently.”

Missed social cues and misunderstood body language and tones of voice can all contribute to miscommunication within a team.

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HARDWARE RETAILING | June 2021

TRANSLATE

Providing hands-on product knowledge training, having new hires shadow experienced staff members for the first month on the job, practicing customer service skills in role play activities and providing training refreshers over time all help get the whole team on the same page about job expectations.

Asking employees to overcommunicate and give each other the benefit of the doubt if their feelings get hurt are important, too.

“Communication is an issue in most environments, no matter what,” Wankel says.

“Most of the time that’s solved very easily and it’s not a frequent problem. If somebody feels slighted by something, the problem wasn’t necessarily what the other person was trying to communicate.

I ask people to take an extra step so there’s full communication. If you feel slighted, go further and ask, ‘Is this what you meant? Because it made me feel this way.’”

“If you have a group of like-minded people, you’re probably going to generate the same or similar ideas. If you have people with different backgrounds, it helps you be more innovative and creative with things.”

—Chris Beresford, Dale Hardware

Chris Beresford

Accommodating different languages or types of communication, especially if it requires translation help from a mobile app, takes effort that improves business overall, Beresford says.

Dale Hardware has been able to rely on its diverse staff to grow its customer base. For example, the multicultural team has expanded the store’s ability to serve Chinese customers who only speak Mandarin and reach Spanish speakers through Spanish language advertising.

“We realized having a diverse team is a challenge that is worth having because it’s so rewarding. If you have a group of like-minded people, you’re probably going to generate the same or similar ideas. If you have people with different backgrounds, it helps you be more innovative and creative with things,” Beresford says. “I’m really big into the idea of inclusivity for everybody and giving everyone a fair chance and an opportunity to give jobs their all.”

WORLD-CLASS SERVICE Wankel’s Hardware has employed people from 40 different countries over the last 50 years, including current employee Sembetu Kidane who is a refugee from Ethiopia.

June 2021 | HARDWARE RETAILING

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PODCAST

Expert Opinion On the latest episode of “Editorially Speaking,” Melanie talks to Zarmeena Waseem from the National Cyber Security Alliance. Listen at YourNHPA.org/es-pod.

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HARDWARE RETAILING | June 2021

WHEN TECH

Bytes Back H OW 2 R E TA IL E R S RE SOLVED RANSOMWARE AT TACKS

I

BY

MEL AN IE

MOU L

tt’s 6 a.m. on the Friday before Memorial Day. You anticipate it will be your b ales weekend of the year. A text pings on your phone, and the busiest sales m message makes you bolt upright in bed. It’s from your IT staff member and it s hink we’ve been hacked.” says: “I think bl k a few f w times just in case you didn’t read it correctly, but it isn’t a dream.

You blink I fact, f king nightmare, and for many small-to-medium-size businesses In it’s a waking ( b curity incidents are becoming more common.

(SMBs), cybersecurity A d According to a 2019 report from business insurance company Hiscox, the proportion h have h ve experienced a cybersecurity event, like a data breach or hack, off SMBs that d 59 percent cent in one year. And the COVID-19 pandemic has only accelerated increased h incidents, d th cybersecurity firm Check Point Research reporting that ransomware the with a k doubled d bl d from the second to the third quarters of 2020. Even as this article attacks g day's headlines feature the ransomware attack that severely impacted goes to print, today's lonial Pipeline, which supplies fuel from Texas to New Jersey. operations at Colonial O the h following f ll ng pages, read two stories from retailers who have come out on the other On s d off ransomware are attacks at their operations. These retailers are sharing their stories side b h want nt their peers to know that this industry is not immune to cybersecurity because they d incidents.

We aree presenting their experiences anonymously at their request, but these s f al and occurred within the last year to 18 months. stories are factual

June 2021 | HARDWARE RETAILING

33

OPERATIONS

Know the Beast Learn the different types of malware and viruses that your operation could be vulnerable to at hardwareretailing.com/breach.

CASE STUDY 01

To Pay or Not to Pay Making a Choice Before You’re Hacked Hardware Store X had a team of professionals acting quickly to find the source of the breach and to negotiate with the malicious actors to regain access to their network. The core of that negotiation was to determine the price of the ransom Hardware Store X would pay—through their insurer—to get their data back. But paying the ransom isn’t the only option, and it’s something Hardware Store X owner Greg* says he may do differently next time.

“Before you even get into this situation, you have to make a decision about whether you’re going to pay a ransom or not,” Greg says. “There’s no right or wrong answer, but if you’re going to go the way of paying the ransom, it underscores the need of having the right type of insurance.”

On the other hand, Greg says, there’s a good reason to not pay a ransom.

“The ransoms are getting more expensive because more people are paying them, and in turn, it’s feeding the industry,” he says. “Our industry is pretty fiercely independent, and I think most people wouldn’t want to support an industry like that by paying ransoms. I like that mindset.”

So what is the key difference when you are deciding whether to pay a ransom?

Backups, Greg says.

“As a small business owner, you need to double down on data backups if you decide you’re not going to pay,” he says. “You have to do the basics no matter what. Require strong passwords, use two-factor authentication. But then you have to take your backup strategy to the next level.”

Learn more about how to protect your data at hardwareretailing.com/backups. *Not his real name

34 HARDWARE RETAILING | June 2021

Your Worst Wake-Up Call Yet That Friday morning scenario is how it really started for the head of IT at Hardware Store X, who we will call Tim. Upon reading the text message, and after notifying the store owners, he rushed to the main office. The IT employee had found a note in the system that demanded payment in order for the company’s data to be returned.

Tim’s first step was to unplug the firewall.

“The firewall is the connection to the internet, and not many people think about that hardwired connection,” Tim says. “Most people think to turn their computer off, but when you do that, you can permanently corrupt the server, and when you restart, your files will be inaccessible because they will all be encrypted.”

Turning off the internet connection breaks the access point for the hackers so the type of virus or malware they’ve installed can’t communicate with its directors anymore, he says.

His next step was to contact the insurance company. In this case, Hardware Store X’s insurance company coordinated a loss firm, a security agency and a negotiator. Their insurance policy made this multipronged response possible.

“I was so appreciative that we had an insurance policy that covered us. Not only for the financial coverage, but also for the expertise,” Tim says. “We would have jumped into this situation not knowing where to start. They held our hand for the entire process.”

The teams were on the project within two hours of Tim making the call. The security company immediately started going through the network, figuring out what had happened and when. In addition to identifying the entry point—where the hackers got into the system—the security company was also looking to see what data was impacted, in case Hardware Store X would need to notify customers or employees of the breach.

In this case, the hackers found an insecure username and password that allowed them access.

“There are a number of different ways to get ransomware,” Tim says. “For us it was a brute force attack: They found a hole in our firewall and kept trying usernames and passwords until they found one that worked and were able to break into it.”

Although this was a serious cybersecurity incident, the hackers weren’t able to access sensitive information.

“While they did encrypt some important files, they didn’t get any customer, employee or credit card information,” Tim says. “Nothing was stored where they could access it. We felt good about that because we didn’t have to notify our customers that there was an incident.”

In addition to not needing to tell customers because there was no threat to data, Hardware Store X owners also only told a handful of employees who were critical to the recovery effort.

“We didn’t know what was going on right away, so only the owners and the IT team were informed,” Tim says. “We notified our stores and the staff members who were working remotely that we were having network issues at the main office. We didn’t want rumors starting or anything to get out to customers.”

The Impact Although the incident occurred ahead of Hardware Store X’s highest sales weekend in company history, fortunately there was little interruption on the customer side. One significant effect was on e-commerce because the communication with inventory systems was down.

“We chose to shut down our ordering system so our IT team could focus on getting us out from underneath the ransomware,” Tim says. “We put a notice on our website that the online ordering system was down so customers wouldn’t try to place orders.”

The Resolution As the security team learned more about the hack, they were able to determine the organization that was behind it.

“Our team had dealt with this group before, and they were able to confidently say that if we paid the ransom, there was a good chance our files would be restored,” Tim says. “One of the fears is that you pay the ransom and they ask for more money or don’t give you the decryption key.”

After nearly an entire day of negotiations, both groups agreed on a ransom amount. The hackers asked for payment in bitcoin, a type of cryptocurrency, which is commonly used in ransomware incidents.

Once the ransom was paid, the hackers sent over the decryption software, and IT staff members got to work recovering their data.

“Decrypting took about five days,” Tim says. “We tore apart our firewall and rebuilt it. It took us a while to get everything back into place.”

“The key is to mitigate the risk and come up with better systems to create less of an impact on operations and protect sensitive data.”

The Aftermath Since the incident, Hardware Store X has made some changes to operations and systems to enhance security and make it more difficult for hackers to gain access.

“We added in endpoint detection-and-response software on every computer,” Tim says. “It’s a system that is managed 24/7 by a security team that looks for unusual activity and can stop anything before it happens.”

Additionally, they have improved the strength of passwords and implemented two-factor authentication (2FA) for anyone to access the VPN or email. Anyone who logs in needs to confirm they are who they say they are on a separate device before logging in.

Tim says they didn’t think their company was at risk five years ago, but the environment has changed a lot in that short period of time.

“Everybody’s at risk. I think we’re still at risk. You can do whatever you want with security and still be attacked,” he says. “The key is to mitigate the risk and come up with better systems to create less of an impact on operations and protect sensitive data.

Having off-site backups is critical because those could make it so you don’t have to pay a ransom.”

June 2021 | HARDWARE RETAILING

35

OPERATIONS

True or False?

Test your team’s knowledge about cybersecurity with the questions at hardwareretailing.com/cyber-faq.

CASE STUDY 02

Before the Hack 3 Steps You Can Take Today to Protect Your Business Confirm your insurance coverage. Both Hardware Store X and Y had insurance, but it’s important to confirm you have the right type of coverage. Hardware Store Y had cyber insurance, but ransomware wasn’t part of their package, which means their insurance didn’t cover the actual cost of the ransom.

Talk to your insurance broker to be sure you have the right protection.

Enact password security. One key way malicious actors find their way into vulnerable systems is through weak passwords.

Such was the case for the Hardware Store X, which had an administrator username and password that was easy for the hacker to guess. Two-factor authentication (2FA) helps mitigate hacking because it requires a person to confirm their identity on another device before they can log in. Requiring strong passwords, regularly changing passwords and employing 2FA will help make your system more secure.

Talk about the risk internally. With cyberattacks on small-to-medium size businesses only becoming more frequent, experts say it’s not about if your business will be breached, but when. Be sure everyone on your executive team and key managers understands and agrees on the risk to your operation. Buy-in from every decision-maker is critical to protecting your business.

Not Just Another Day at the Office On a Friday last fall, Hardware Store Y president Paul* got in the office early and something wasn’t right.

“I couldn’t log into my email, and our ERP systems weren’t working,” he says. “Usually when there’s an IT issue, I text our IT team, but this time I called them. My director told me it probably wasn’t too bad because everything was down. Then he discovered the ransom note the hackers had left in our system.”

The hackers were asking for more than $1 million for Hardware Store Y to recover their data. The IT staff did an internal assessment to determine what areas had been breached, and they discovered the hackers had deleted their data backups.

“We thought we were fine because we had remote, robust backups,” Paul says. “Except they were accessible by administrators, which is how the hackers got into them.”

Paul called his insurance company and discovered they had cyber insurance and kidnapping and ransom insurance, but not ransomware insurance. It was going to cost an additional $70,000 for the security team to determine the entry point, identify the hackers and address the situation.

“Because the hackers had deleted our backups, we didn’t have any other option,” Paul says.

The security team worked all day Friday to determine how the hackers had entered the system. An employee had downloaded a PDF from their personal email account they accessed on a company device on their lunch break. The PDF executed a program that allowed the hackers to access the network, where they made their way into Hardware Store Y’s admin accounts, where Paul admits password security was lacking. *Not his real name

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HARDWARE RETAILING | June 2021

The Impact Fortunately, customer-facing data and operations weren’t significantly affected. However, the hackers accessed extremely sensitive company and employee information, including tax returns and human resources documents.

“As part of their ransom demand, the hackers were threatening to release that information on the dark web, which presented a lot of liability for us,” Paul says.

Despite the hackers having that data, Paul says they felt their employees’ information was secure because the payroll system wasn’t hosted on-site.

“The number of impacted employees was low, but we did tell our team there were some minor breaches, and we talked to those people individually,” he says.

Hardware Store Y offered all employees a Lifelock subscription to give them an extra level of security, and about 40 percent of employees took that opportunity. There have been no flags or concerns that have arisen for those who opted into that program.

Although customer data wasn’t impacted, Hardware Store Y sent a letter to customers explaining the breach and the data that was impacted.

The Resolution Paul gave the negotiations team a budget for the ransom, and they spent Saturday into Sunday attempting to strike a deal. While many hacking organizations are well known to negotiators, this group apparently had broken off from a main organization. The negotiations team didn’t have confirmation they would follow through with their end of the deal upon receiving the ransom payment.

“What’s important to note about these organizations is that they are professional criminals,” Paul says. “They research companies that are vulnerable but that also have the ability to pay ransoms. They refer to you as their ‘clients’ and they have help desks that walk you through the decryption process.”

The final ransom amount totaled nearly $800,000, and the hackers showed proof that they deleted the files, but Paul says there’s no way to know if they made copies.

After receiving the decryption key, Hardware Store Y hired extra IT staff to come in to help unravel the damage, a process that took about a week to complete.

The Aftermath This incident occurred about nine months ago, and Paul says they just recently wrapped up the last step, called an “extermination event.”

“The difference between those who pay and don’t pay ransoms is secure backups.”

“We couldn’t guarantee they were completely out of our systems until we reset everyone’s user ID and password, as if they were brand new,” Paul says. “We were fortunate throughout the entire process that we were able to do business and never missed a delivery, but it took about six months to get through everything.”

And now there are systems in place that are intended to prevent another hack of that magnitude.

“In order to get ransomware insurance, we needed to have systems in place to prove we were doing everything we could to prevent another attack,” Paul says.

Hardware Store Y upgraded security, including adding what is called endpoint detection software. The programs are monitored by professionals and detect unusual activity on a network within minutes. They also implemented 2FA to access the company VPN and the backups.

“The difference between those who pay and don’t pay ransoms is secure backups,” Paul says.

In addition to enhancing password security, Paul recommends investing in a password management system, and not keeping company passwords in a spreadsheet on the network. Limiting internal access to sensitive documents is critical, too, Paul says.

“You have to segregate sensitive data. The HR folder was secured with a password, and it was still stolen,” he says.

“Just don’t keep HR data in a place where people can find it.”

Finally, security only works when people understand the risks and how the systems work. Work with your IT company or even your insurance company to set up training for your whole organization so everyone understands the risk.

Paul says these decisions need to be made and monitored by members of the executive team, not just relegated to your IT staff or vendor.

“Do not just go to your IT team and ask them if your business is safe,” he says. “As the leader of your organization, you need to be consulting with experts and following up to make sure your systems are protected.”

June 2021 | HARDWARE RETAILING

37

MARKETING

Celebrating Our Pets See our list of informal pet holidays you can use to creatively market pet products at hardwareretailing.com/pet-holidays.

C A T E G O R Y

S P O T L I G H T

Pampering

OUR PETS Tips for Growing Sales in Pet Products

F

BY

L I ND S EY

T HO M P S O N

rom puppies to parakeets, cats to chameleons, gerbils to goldfish, we love our pets. A look at anyone’s social media feed proves how devoted we are to our animal companions, but the numbers speak loudly as well.

The American Pet Products Association found pet owners spent $103.6 billion on pet-related products in 2020. The organization predicts sales for 2021 will grow 5.8 percent, well above the average annual growth of 3 to 4 percent.

It can be daunting for home improvement retailers to compete with specialty pet stores and online retailers, but there is a place for your operation in this lucrative category. Read on to discover best practices for adding pet items to your inventory, including what products to start with and how to train employees in this specialized area. And visit hardwareretailing.com/pets to learn how to welcome pets into your store and special services you can offer pet owners.

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HARDWARE RETAILING | June 2021

Spending on Pets By Category

$22.1B

OTHER SERVICES

$31.4B

SUPPLIES, LIVE ANIMALS & OTC MEDICINE

PET FOOD & TREATS

$42B

VET CARE & PRODUCT SALES

In 2020, pet owners in the U.S. spent $103.6 billion on pet products. Here’s a breakdown of spending by category.

$8.1B

Source: U.S. Pet Industry Spending Figures & Future Outlook, American Pet Products Association

Start With the Basics Since it opened in 1988, Franklin Hardware and Pet in Chambersburg, Pennsylvania, has been carrying pet products. Lindsay Deaven, assistant manager, says the store owners saw an opportunity to provide local farmers w h supplies l es not only for their farm animals, but also with f their h pets. ets. for ““The h storee opened to complement the already existing kl Feed ed and Supply Co.,” Deaven says.

Franklin “ h b n as 9,000 square feet of space has morphed “What began 0 square feet of space for lawn and garden, into 30,000 h d nd anything pet under the sun.” hardware and h 30,000 0,000 square feet, around 10,000 square feet Off that d d d to products for pets, wildlife and livestock. is dedicated kl Hardware ardware also has sections for live small animals, Franklin d b rds, reptiles and fish. domestic birds, kl Hardware’s pet department didn’t evolve Franklin h itt has been a labor of love building it to the overnight; s and d scope ope it is today. Retailers looking to get into pet size d hould start simple too, Deaven says. She suggests products should l h launching a pet product section with dog and cat food, carrying a brand that is middle of the road in price and h brand b d recognition. ecognition. She also recommends carrying core has wners need like puppy pads, treats and collars. items pet owners

“High-turn dog foods with brand recognition get people in the door, and I think a small animal section is key,” Deaven says. “Toys for small animals and treats have a high margin and are a good way to balance the low margins of dog and cat food.”

Equip Your Employees With its large selection and variety of pet products, it’s important for Franklin Hardware to employ workers who can educate customers on the different products.

Hiring employees who share a love for pets is also helpful for building relationships and trust with their pet-loving customers.

Deaven leads employee training on new products and trends, utilizing sessions offered by pet product manufacturers. She also recommends using these companies as resources when starting out in the pet product business, as most are willing to send retailers planograms and provide staff who can help with product merchandising.

“Most of the major brands have really good people working for them who are willing to give you help,” Deaven says. “You can tell them you have 3 feet of space, and they will tell you what products you need in that space.”

June 2021 | HARDWARE RETAILING

39

OUTREACH

Share Your Stories CHECKOUTS

Send your merchandising tips, event recaps, employee morale boosters and other stories to editorial@YourNHPA.org.

Managers from Morton Lumber Co. in Borger, Texas, post their cellphone numbers on the company’s Facebook page when the area experiences severe weather so customers can turn to the business for emergency help at all hours of the day and night.

Accepting Emergency Calls MANAGERS MAKE EFFORT TO HELP COMMUNITY AROUND THE CLOCK

The managers at Morton Lumber Co. in Borger, Texas, make themselves available to all customers 24/7 for emergencies.

40 HARDWARE RETAILING | June 2021

WHEN TEMPERATURES DROP below freezing for several days or storms damage buildings, general manager Jason Wright and other staff members post their personal cellphone numbers on the store’s Facebook page with reminders that customers can call if their water pipes burst or they face other emergency situations outside regular business hours.

Customers rarely call in the middle of the night, but when they do, it’s because the help they need is really urgent, Wright says. He usually lists three different employee cellphone numbers on Facebook so customers can call a different manager if he isn’t available to meet a customer quickly at the store.

Customers, even if they never need to make an emergency call to Morton Lumber, tell employees they appreciate the managers’ willingness to help around the clock.

“It’s been really good because people see that we’re here for the community and we’re here to help out in times of need,” Wright says.

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Produce to Share

Donating Safety

During the early months of the COVID-19 pandemic, Burney True Value Hardware in Aberdeen, North Carolina, partnered with a company that builds acrylic kiosks to help protect health care workers. Burney True Value donated plexiglass and other supplies and Meridian Kiosk used the materials to build protective boxes, which health care workers used as barriers to protect themselves from germs while intubating patients.

Burney True Value Hardware donated the plexiglass for local health care workers to use as protective barriers.

Calling Future Homeowners

Charlston Austin, co-owner of Ace Hardware South Fulton, is working to establish his store as a community resource in South Fulton, Georgia. Offering an event about homeownership was a way to invite area residents into the store and connect them with a local financial adviser and a local real estate agent who could share knowledge and answer questions.

Austin was available to answer questions about home maintenance. The event allowed attendees to learn about financing, buying and maintaining a home.

L.A. True Value Hardware owner Art Eickhoff enjoys gardening on the side, so he brings vegetables he grows to the store in Kansas City, Kansas, to sell.

Customers not only get to buy fresh locally grown produce at the hardware store, but they also get to admire Eickhoff’s gardening achievements, such as growing a sweet potato the size of his own head.

42

HARDWARE RETAILING | June 2021

Community members gathered at Ace Hardware South Fulton for a small in-store event about home ownership.

Scan the QR code or visit YourNHPA.org/codb to submit your information online.

Compare. Assess. Improve.

When you participate in the Cost of Doing Business Study, it can help you to identify future financial opportunities and set goals for your business. It’s free, easy and confidential.

Participate by June 30 to get a free copy.

“It’s by observing change in any metric that you can diagnose problems in your business and find ways to correct them.”

Jim Robisch | The Farnsworth Group

YourNHPA.org/codb

Cost of Doing Business Study

NETWORK

Make a Plan CALENDAR

Visit YourNHPA.org/cal to f ind more industry events online.

Industry Events 17-19 THU-SAT

21-24 MON-THU

23-26 WED-SAT

19-25 MON-SUN

11-13

WED-FRI

House-Hasson Hardware Summer Dealer Market SEVIERVILLE, TENNESSEE

Group Merchandising Conference

*This index is provided for the convenience of our advertisers and readers.

The Publisher assumes no liability for errors or omissions.

3M ............................................................................................. 3 3M.com

NHPA Podcasts........................................................... 11 YourNHPA.org/podcasts

Ames Research Laboratories ......................20 amesresearch.com; 888-345-0809

NHPA Retail Management Certification Program ........................................47 YourNHPA.org/rmcp

Benjamin Moore ......................................................... 5 benjaminmoore.com Brushtech, Inc. ......................................................... 22 brushtechbrushes.com; 518-563-8420 Combilift .......................................................................... 21 combilift.com; 877-266-2456 Do it Best Corp. ................................................. 12-13 doitbestonline.com; 833-800-5906

VIRTUAL

Eco Wood Treatment ........................................ 44 ecowoodtreatment.com; 888-738-5516

Hearth, Patio & Barbecue Expo

Generac Corp. .............................................................. 11 generac.com; 888-436-3722

VIRTUAL

The Hillman Group ...............................................BC hillmangroup.com; 360-600-0760

United Hardware Fall and Winter Buying Market VIRTUAL

MARS ...................................................................................41 coastair-ac.com Midwest Fastener Corp. ............................IFC-1 constructionscrews.com; 800-444-7313

Wallace Hardware Co. Fall Dealer Market PIGEON FORGE, TENNESSEE

Orgill Fall Online Buying Event

MON-FRI

VIRTUAL

26-28

Blish-Mize Fall 2021 Buying Market OVERLAND PARK, KANSAS

SEPTEMBER

10-12

PACOA 2021 Fall Virtual Dealer Market

21-23

Ace Hardware 2021 Fall Show

TUE-THU

ORLANDO

24-25

Emery Jensen Edge

FRI-SUN

FRI-SAT

SEPT

OCT

27-04 MON-MON

SEPT

THURS-SAT

Orgill Inc.............................................................. 48-IBC orgill.com; 800-347-28606 Paladin Data Corp. ...............................................45 choosepaladin.com; 541-803-6060 PRO Group Inc. ......................................................... 17 prohardware.com; farmmart.com; 303-792-3000 Shurtape Technologies .....................................24 frogtape.com/orange; 800-321-1733 Strybuc ............................................................................. 23 strybuc.com; 800-352-0801 Wingate Sales Solutions.................................. 25 wingatesaleinc.com; 888-480-7253

POWDERED CONCENTRATE! Profit $700 from the shelf space of

ONE

can of paint!

VIRTUAL

ORLANDO

Home Hardware 2021 Virtual Fall Market VIRTUAL

OCT

30-02

Norton Abrasives - Tekbond ......................... 7 nortonsga.us/tekbond; 800-982-0237

NHPA Cost of Doin Business .......................43 YourNHPA.org/codb

16-27

THU-SAT

Norton Abrasives - Clipper ..............................9 nortonsga.us/clipper; 800-551-4415

True Value Fall V-Union VIRTUAL

To add your event to the industry calendar, send an email to editorial@YourNHPA.org.

44 HARDWARE RETAILING | June 2021

For more information on ECO Wood Treatment: (888) 738-5516 www.ecowoodtreatment.com

OPERATIONS

The Key to Diversity LAST WORD

Learn first steps you can take toward creating a diverse workplace at hardwareretailing.com/diverse-workplace.

Diversity Pays HOW EMBRACING DIFFERENCES IMPROVES THE WORKPLACE THERE ARE MANY ADVANTAGES to having a diverse workplace. Here’s what you can expect when your employees have a variety of backgrounds and perspectives.

Better Customer Service

People feel comfortable shopping in a place where the employees look like them. Practically speaking, employees understand the language and the culture of the people shopping there.

Improved Business Performance

Companies with inclusive cultures are twice as likely to meet or exceed financial targets and eight times as likely to achieve better business results.

Source: Deloitte

Enhanced Creativity

When employees have a diverse set of backgrounds and experiences, they are likely to be more creative in solving problems and initiating innovation.

Top Talent

A survey showed 76 percent of job seekers and employees say a diverse workplace is an important factor when evaluating job offers. Employers who don’t make an effort toward diversity could be missing out on quality workers.

Source: 2020 Diversity and Inclusion Workplace Survey, GlassDoor

46 HARDWARE RETAILING | June 2021

E

A GRADU

A

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TE

M

ET

“I grew so much in what I was capable of and what I was ready to take on for our store.”

Robin Smith President & Co-owner Petersburg Hardware

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WE HAVE THE TOOLS

Power Up Your Tool Selection

Orgill is the No. 1 distributor of power tools to the independent channel. We offer the widest range of best-selling power tools and accessories from trusted brands so pros and consumers alike won’t leave your store wanting more.

Get in touch to bring real value to your store’s power tool offerings: 1-800-347-2860 Ext. 5141 | Orgill.com/powertools