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Essential Stories From Your Peers, Your Wholesalers and Industry Supporters Page 34

Volume 218 • Issue 6 • June/July 2020 • hardwareretailing.com

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Essentia Stories From Your Peers, Your Wholesalers and Industry Supporters Page 34

Where do you grow from here? In challenging times, leaders emerge. Don’t lose momentum. Volume 218 • Issue 6 • June/July 2020 • hardwareretailing.com

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Serving Hardware, Home Center & Building Material Retailers

Essential Stories From Your Peers, Your Wholesalers and Industry Supporters Page 34

Volume 218 • Issue 6 • June/July 2020 • hardwareretailing.com

Mike Kimball, CEO - Ian Williams, COO Fresno Ag Hardware, Fresno, California

“Our philosophy as a company is to always be an asset to our community. That means it’s up to us to make sure we’re working with suppliers that best serves our customer’s and client’s needs. Midwest Fastener continues to exceed expectations by providing an amazing product selection, competitive pricing and quality customer service that you can’t find anywhere else.” – Mike Kimball, CEO

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Headquarters EDITORIAL, DESIGN & PRODUCTION

Lessons Learned From a Pandemic

136 N. Delaware St. #200 Indianapolis, Indiana 317-275-9400 nrha@nrha.org | nrha.org

@NorthAmericanRetailHardwareAssociation @nrha_official North American Retail Hardware Association @nrha_official

OUR MISSION

The North American Retail Hardware Association (NRHA) helps 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 Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts David Dishke, Grand River Home Hardware, Caledonia, Ontario Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

f there is one thing I’ve seen firsthand during the COVID-19 crisis, it’s the resilience and innovation within the independent channel. You have demonstrated why you were deemed essential, and that in extreme circumstances, you are able to meet your customers’ needs when they need you the most. Your team members also rose to the occasion. Everyone from frontline sales associates to key managers have been through an ordeal like nothing we have experienced before. There was no COVID-19 playbook to reference, and more often than not, you had to make it up on the fly. I’m sure there are stories to tell future generations on how we all got through it and the lessons we learned. During all of this, I’m sure you have seen future leaders emerge. Now is the time to invest in your people to further strengthen the cohesion of your team and the skills of individual team members. I encourage you to visit nrha.org/rli to learn more about what NRHA’s Retail Leadership Institute has to offer. Whether you need a better understanding of your team dynamic and to employ organizational development best practices or have specific team members in mind who would benefit from learning advanced leadership or management skills, developing your team has never been more important than it is right now.

Matt Woods, Woods Hardware, Cincinnati, Ohio SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN TJ Comstock, Northwest Hardware LLC, Billings, Montana

Scott Wright Executive Director NRHA Retail Leadership Institute

317-275-9400, editorial@nrha.org

EXECUTIVE VICE PRESIDENT & EXECUTIVE EDITOR Dan Tratensek MANAGING EDITOR Melanie Moul, mmoul@nrha.org PROFILES EDITOR Kate Klein, kklein@nrha.org TRENDS EDITOR Todd Taber, ttaber@nrha.org PRODUCTION EDITOR Hans Cummings, hcummings@nrha.org SENIOR DESIGNER Aubrey Smith GRAPHIC DESIGNER Autumn Ricketts DIGITAL MEDIA SPECIALIST Kevin Trehan EDITORIAL & RESEARCH PRODUCTION COORDINATOR Natalie Harris PRODUCTION MANAGER Nancy A. Vondersaar SALES & PRODUCTION ASSISTANT Freda Creech

MARKETING & COMMUNICATIONS DIRECTOR OF MARKETING & COMMUNICATIONS Whitney Daulton CORPORATE COMMUNICATIONS MANAGER & EDITOR Julie Leinwand

NRHA SALES

317-275-9400, sales@nrha.org VICE PRESIDENT OF SALES & PUBLISHER Kevin Hohman, khohman@nrha.org NORTHERN REGION SALES DIRECTOR Brad Lyons, blyons@nrha.org BUSINESS DEVELOPMENT REPRESENTATIVE Matt Caruso, mcaruso@nrha.org SOUTHERN REGION SALES DIRECTOR Scott Gilcrest, sgilcrest@nrha.org BUSINESS DEVELOPMENT REPRESENTATIVE Jordan Rice, jrice@nrha.org CANADA John Magner, 500 Queens Quay W., #101W Toronto, ON M5V 3K8 416-598-0101 x220; Fax: 416-598-9191, jmagner@yorkmedia.net

EXECUTIVE STAFF PRESIDENT & CEO Bob Cutter VICE PRESIDENT OF FINANCE & BUSINESS SERVICES David Gowan

MEMBER SERVICES

800-772-4424, nrha@nrha.org

STATE & REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 201 Frontenac Ave., P.O. Box 8033 Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080

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.

NRHA CANADA

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

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

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2020 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: For price quotations, contact the Editorial Department at 317-275-9400 or fax requests to 317-275-9403. Printed in the USA.

HARDWARE RETAILING | June/July 2020

TRAINING MANAGER & EDITOR Jesse Carleton, jcarleton@nrha.org RETAIL OUTREACH COORDINATOR Renee Changnon, rchangnon@nrha.org EVENT MANAGER & RETAIL SUPPORT Katie McHone-Jones, kmchone-jones@nrha.org

RETAIL LEADERSHIP INSTITUTE EXECUTIVE DIRECTOR Scott Wright, swright@nrha.org

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

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Contents JUNE/JULY 2020 | VOLUME 218 | ISSUE 6

“I can’t tell you how often somebody looks me in the eye and says, ‘Thank you for being open. We appreciate you so much.’” —Douglas Brown, Cloverdale Ace Hardware

Departments On the Web . . . . . . . . . . . . . 06 Editorially Speaking . . . . . . . 08 Taking Care of Business . . . . 10

NRHA News. . . . . . . . . . . . . 12 COVER STORY

The Essential Stories Since the COVID-19 pandemic was declared in mid-March, Hardware Retailing and the North American Retail Hardware Association have been collecting retailers’ stories of taking action and keeping the industry connected. Read some of those stories here and get updates from how wholesalers have flexed their operations. Also, discover guidance from industry experts on leading during crisis and why small businesses matter at times like these.

RESOURCE REVIEW

MERCHANDISING

Trends . . . . . . . . . . . . . . . . . 16 New Products . . . . . . . . . . . 20 Checkouts . . . . . . . . . . . . . . 30 Newsmakers . . . . . . . . . . . . 86 Last Word. . . . . . . . . . . . . . . 90

SUCCESSION PLANNING

Listen Up

Displays That Sell

Make These Plans

P. Brett Thorne of Thorne Lumber Co. recommends “The Behind Your Back Podcast” for refreshers on the importance of using sales training and sales techniques in independent businesses.

Refresh your merchandising knowledge so you are ready when customers can browse your aisles again. Learn how to use displays to create unique experiences and shape the way customers buy.

If you’re not ready to put together a formal succession plan, you should still ensure your business can operate in unexpected circumstances. Mitigate business-related stress during emergencies by taking these steps.

SPECIAL ISSUE

Uncertain Horizons COVID-19 has pushed everyone in the home improvement industry to adapt to new roles and routines while planning for a future that seems unclear. In this issue of High Performance Retailing, housing, economic and employment experts evaluate the pandemic’s long shadow and what lies ahead for the retail sector.

HARDWARE RETAILING | June/July 2020

On the Web

PODCAST

SPECIAL SERIES

Get Your Pep Talk In the special series podcast Pep Talk, NRHA executive vice president Dan Tratensek has interviewed home improvement industry leaders to learn how the industry has responded to the pandemic and how it can grow and thrive beyond it. Visit TheRedT.com/peptalk to hear these conversations and learn how you can safeguard employees and community.

PEP TALK WITH DAN TRATENSEK RECENT GUESTS • Bill Brunelle

• Jim Robisch

Independent We Stand

• Jonathan Mize Blish-Mize

• Melanie Moul NRHA

The Farnsworth Group

• Mick Terrell Taft Law

• Scott Wright NRHA

RESEARCH

OPERATIONS

The Pulse of the Industry

Staying the Course

Recently, the North American Retail Hardware Association asked hundreds of retailers how COVID-19 has changed their operations. Read some of the most striking findings on Page 86 and visit TheRedT.com/covid-survey to learn how industry peers have adapted during the pandemic.

COVID-19 shouldn’t keep you from continuing regular human resources activities like hiring and performance evaluations, says Julie Schweber, senior knowledge adviser for the Society for Human Resource Management. Learn more about the benefits of upholding HR protocol amid a pandemic by visiting HPRmag.com/covid-hr.

OPERATIONS

Being the Example Scott Compton of Forrester Research Inc. highlights how essential businesses can serve as models for other retail sectors as many areas start to reopen and serve customers. From enhancing contactless payment options to prioritizing employee safety, learn from Compton how to continue the new operations methods you’ve developed through the next phase. Visit TheRedT.com/reopening to read more.

40%

of retailers have turned to additional suppliers during the pandemic.

STAY CONNECTED

@hardwareretailing

HARDWARE RETAILING | June/July 2020

@hardwareretail

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Editorially Speaking

Take It for a Spin Let’s Talk About How We Can Help Each Other

y son loves things that spin. Whether it’s one of his million linking ring toys he twirls on his finger or his empty snack cup he has figured out can spin sideways on the coffee table, he will find a way to make nearly anything go round and round. He even loves to watch the ceiling fan. To further his delight, my mom got him a classic metal top last year for Christmas. It is everything he has ever wanted in a toy, the pinnacle of spinning things. And the mechanics of it are simple yet extraordinary. What I’ve noticed about this top is that when it’s spinning, it’s actually completely silent. The only thing we hear is the whir of the air moving around it. It only starts to tinker if it gets shifted off its path and is starting to topple. Think about everything in your business that may have been spinning perfectly over the the last fews months, the last year or even a longer time. From the pandemic to protests to just managing standard operations, there are plenty of things that have been poking at your tops recently. Some things may still be spinning, but others may be wobbling and still others may have stopped completely, far removed from their point of origin. Listen carefully for the tops you think are still in good shape, but may actually be starting to falter. Sometimes, even when a top is just slightly tapped, the best way to right it is to stop it completely and start over. You may need to clear your surface or adjust your spinning technique to get it going again. Depending on how big the obstacle in its path, you may not be able to make things right again by yourself. You may need to ask your mom for help. (Or your staff, customers, wholesaler or association.)

I think we can all agree that planning for the future isn’t easy right now. My job requires me to predict what might be relevant to you several months to up to a year in advance, which seems impossible given how much has changed in just the last three months. Here at Hardware Retailing, we are already looking well ahead to 2021. I want to be sure the content we have in the magazine is topically relevant while also being sensitive to how your needs have changed and what areas of your business you may need help righting. So right now, I need your help so we can help you better your business. Every few years, we ask you for your input on what type of content you want to see in Hardware Retailing. Your responses help us get a sense of what you need in this publication and its various digital components. We’re inviting you to send us your feedback again this year in a brief readership survey. Let us know what you want to see in future issues of Hardware Retailing and how it serves you at TheRedT.com/readership-2020. You can also send me an email if you would like to talk one-on-one. I look forward to your feedback to continue creating a resource that helps you keep your business spinning now and into the future.

“I want to be sure the content

we have in the magazine is topically relevant while also being sensitive to how your needs have changed and what areas of your business you may need help righting.

HARDWARE RETAILING | June/July 2020

”

Melanie Moul Managing Editor | mmoul@nrha.org

Taking Care of Business

A Closer Look at Leadership Enhancing Our Skills Through Observation

n this issue of Hardware Retailing, we talk how important strong, decisive leadership is during a time of crisis. One might argue this type of leadership is important at any time, but the qualities of a good leader are only magnified when times are difficult. And there is little doubt that we have been under one hell of a magnifying glass since February. It is probably because of this enhanced focus on the qualities of leadership that I have found myself thinking, writing and talking about this subject quite a bit recently. Let me start by saying that while I think there are a handful of things I might do well, I do not necessarily think leadership is one of them. I’m not trying to be self-deprecating here. I just feel I have much to learn when it comes to being a good leader and that the length of my leadership journey may extend beyond the length of my career. That being said, one of the things that I do think I’m pretty okay at is observing things. This might be one of the qualities that led me to become a journalist. I notice and remember details about situations and people that make them unique. So, while I might not be a great leader, I definitely notice strong leadership qualities when I see them. And since the current crisis began, I have seen my share of good leaders and I thought it was a great time to share some of those stories with you. I want to start with a story about a young woman I interviewed for one of my podcasts named Kelsee Colgrove. Kelsee is a high school student who works at Heisler’s Hardware in Spearfish, South Dakota. (Listen to the full episode at TheRedT.com/peptalk.) While many older folks these days like to amplify what they see as negative qualities of the younger generations, people like Kelsee demonstrate the empathy, compassion and selflessness present in her generation that we could all learn from. When the owners at Heisler’s Hardware heard the local food bank needed some help because of the increase in need brought on by the COVID-19 outbreak, they decided to hold a fundraiser. During the fundraiser, Kelsee donated an entire

paycheck to the cause. She didn’t do it for Facebook likes or to boost her Instagram followers. She quietly donated the money because she wanted to help her community. That is the act of a selfless leader! I’ve been on many phone calls with store owners and managers since this outbreak began, and without naming names, I can’t tell you how many of these individuals’ first thoughts during this crisis didn’t go to sales or profits but instead to, “How do we protect our employees and help our communities?” Those are the reactions of caring leaders! I heard about one small business owner who was literally in tears every night because she was going to be forced to shut down her operation during the pandemic. She wasn’t worried about her business, but rather how the shutdown would affect her employees who would be losing their source of income. Following the shutdown, she called her employees regularly to see if they needed anything, help them file for unemployment and just make sure they were okay. Those are the acts of a compassionate leader! So as you read about leadership in this issue and ponder how you can improve your own skills, might I suggest that the first thing you do is become a better observer. Look carefully at the actions of those around you who come from all walks of life. By observing how they act selflessly, with care and with compassion, you will likely learn more about being a leader than you can from any book, Ted Talk or article on the subject.

“As you read about leadership

in this issue and ponder how you can improve your own skills, might I suggest that the first thing you do is become a better observer. Look carefully at the actions of those around you who come from all walks of life.

HARDWARE RETAILING | June/July 2020

”

Dan M. Tratensek Executive Editor | dant@nrha.org

How capn? we hel

How clapn? we he

YOU ARE ESSENTIAL Thank You for Supporting Your Communities

At PRO Hardware and Farm Mart, we are continuously astounded by the innovation and entrepreneurial spirit of all independent retailers across the country. Now more than ever, it is that spirit that has been so vital as we face the uncertainty and hardships of a global pandemic. Your dedication to helping others has allowed people to access the tools and supplies they need while simultaneously keeping themselves and their families safe. So, we want to say thank you. Thank you for showing up to work each day, for offering additional services, for being a dependable resource and for supporting your employees. And, thank you for all of your hard work to help every single person in your community. You are and always have been essential. 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 Shari Kalbach, Vice President, at 303.792.3000 or shari.kalbach@pro-group.com Find us online at www.prohardware.com or www.farmmart.com. Vendor Partners:

NRHA News

Retail Management Program Adopts New Format

n a break from its previous three-visit model, the North American Retail Hardware Association’s (NRHA) upcoming Retail Management Certification Program will feature two in-person class visits. Students will still benefit from the same number of in-person instructional hours, but a classroom session has been added to the two visit dates—and students will present their final business improvement projects virtually. “While the decision to move from a three- to a two-visit format was made to reduce the travel burden for students, it is something that we have been considering even before COVID-19,” says Scott Wright, executive director of NRHA’s Retail Leadership Institute. “The number of total classroom hours will remain the same, but we feel it will come as a relief to students and their sponsors not to have to make a third trip to Indianapolis in January. Maintaining the safety of our students and instructors is our primary motivation.” The deadline to apply for the upcoming session is Aug. 1. The first program visit will take place in September in Indianapolis. Visit nrha.org/rmcp to learn more or apply, or email Scott Wright at swright@nrha.org.

About the Retail Management Certification Program The Retail Management Certification Program is the only program in the industry that prepares owners and key employees with profit-focused store operations training. This six-month training program is designed to allow students and their stores to see a return on investment through class training and homework, an individual business improvement project and Quick Wins.

Course Curriculum This program dives into the core components of operating an independent hardware store, home center or lumberyard, including: • • • •

Leadership and team-building Business strategy Advanced retail operations Finance and accounting

• Human resources management • Marketing, sales and customer service

UPCOMING SESSION DATES • Visit 1 (In-person) Sept. 8-12 • Visit 2 (In-person) Nov. 9-13 • Visit 3 (Virtual) Jan.13-14, 2021

Stream NRHA’s Virtual Town Hall Sessions

RHA has hosted biweekly virtual town hall sessions to help independent home improvement retailers and channel partners stay informed amid COVID-19. If you haven’t been able to attend these Zoom sessions, you can stream them by visiting TheRedT.com/town-hall. To ensure you’re the first to hear about upcoming NRHA town halls, subscribe to Hardware Retailing’s e-newsletter at hardwareretailing.com/subscribe or follow us on social media.

HARDWARE RETAILING | June/July 2020

Previous NRHA Town Hall Sessions • May 21: Labor and employment law expert Mick Terrell of Taft Law answered questions from retailers about the Paycheck Protection Program, FFCRA and wearing masks in stores. • May 7: Retailers shared how they have implemented new policies to safeguard their customers and employees. • April 22: NRHA spoke with home improvement retailers about their efforts to stay on top of state guidance and keep customers safe in their stores.

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NRHA News

Evaluate Your Business With Help From NRHA

o you know how your operation stacks up against typical and high-performing retailers? NRHA is now collecting information from independent U.S. hardware stores, home improvement centers and lumberyards for the 2020 Cost of Doing Business Study. From sales per square foot to sales per customer, the study can give you insight into your operation’s financials and help you strategize for the future. Check out these three reasons why you should participate in the 2020 Cost of Doing Business Study, and then visit nrha.org/codb to get started.

1. The Cost of Doing Business Study can help you identify new financial opportunities for your business. You’ll gain access to the results of the study along with a personalized analysis of your business. 2. Your participation will help improve the study’s results— which benefits independent retailers like you. The more retailers that participate in the study, the stronger and more reliable the data will be. 3. Participating in the study is free and confidential. You can easily submit your information in a matter of minutes.

What is the Cost of Doing Business Study? Conducted annually for more than 100 years, the study looks at financial data from more than 1,000 stores across the country and is the independent home improvement channel’s only inclusive, industry-specific benchmarking tool. Business owners can use it to compare their financial performance to industry averages in areas including sales, profits, operating expenses and more. The deadline to participate in this year’s Cost of Doing Business Study is July 15.

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HARDWARE RETAILING | June/July 2020

NRHA News

Trainer’s Corner: Effective Project Displays

roject displays are effective because they can inspire customers to start projects and can help raise your average transaction size. These displays should be regular features of your endcaps and power aisle. This month’s Trainer’s Toolbox teaches employees the basic elements involved in creating project displays. Employees who understand the basic elements involved in putting together effective merchandising are better equipped to maintain them—and even come up with creative ideas on their own. The Trainer’s Toolbox is a free, 5-minute teaching tool designed for use in an employee meeting. You can find the complete series, including this month’s featured lesson, Effective Project Displays, at nrha.org/trainers-toolbox. After reviewing the Trainer’s Toolbox with your staff, make sure they take NRHA’s Basic Course in Retail Merchandising. This course offers the foundational knowledge every employee needs to understand the different types of retail merchandising and how they affect sales and customer service. It is available to NRHA Training members. Find more information at nrha.org/training.

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Trends Monitoring the Market Use the following industry metrics to anticipate emerging trends and opportunities in the channel. Data is not seasonally adjusted, meaning these graphs represent real-time shifts in the market.

Analyze total retail sales for building material and garden equipment centers to track your business’s performance against national averages.

Understand consumers’ desire to save or spend by gauging overall consumer confidence levels.

Serve customers renovating or upgrading homes more effectively by observing housing starts and existing home sales.

Consumer Confidence

Monthly Home Improvement Sales (Building material and garden centers; in millions)

(Measured by surveys sent to U.S. households; in basis points)

150

APR

MAR

FEB

DEC

NOV

OCT

SEP

AUG

JUL

JUN

$20

JAN ‘20

APR

MAY ‘19

$30 MAR

FEB

JAN ‘20

DEC

NOV

SEP

AUG

OCT

JUL

MAY ‘19

120

JUN

$40

$10

Existing Home Sales

Housing Starts

600

500

(in thousands)

400

300

200

100

MAY ‘19

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN ‘20

FEB

MAR

Sources: The Conference Board; U.S. Department of Commerce, NAICS 444; National Association of Realtors; U.S. Census Bureau

HARDWARE RETAILING | June/July 2020

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Finders, keepers.

HOW TRIO HARDWARE KEEPS CUSTOMERS COMING IN — AND COMING BACK. Customers in Plainview, New York, know that when they walk into Trio Hardware, they’re going to find exactly what they need. Member-owners Todd and Ritsa Kirschner know that when those customers leave, they’re already planning their next visit. That’s the kind of relationship that can happen with help from Do it Best. When the Kirschners built their new store, they turned to the Do it Best Signature™ Store Design team to maximize their space and stock it from floor to ceiling with a wide range of the products they knew their customers would buy. Next, the Kirschners launched the Best Rewards loyalty program to give their shoppers a compelling reason to come back again. SM

19 45

2020

“Do it Best offers us the product mix we need to draw customers in and the rewards we need to keep them coming back.” Todd & Ritsa Kirschner

Trio Hardware

Together, the Kirschners and Do it Best have developed an effective system to attract and retain customers. As a result, Trio Hardware serves a steadily growing base of loyal shoppers — again and again.

» Partnering with Do it Best can help you attract more customers and keep them coming back. Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestretail.com.

New Products

Insect Control Sprayer Garscentria Insect and Pest Control is an indoor and outdoor spray or fog treatment for mosquitoes and ticks. The broad-spectrum solution is a unique blend of 100 percent essential oils and 300 percent concentrated garlic liquid. It is safe for use around pets and has no aquatic toxicity. It also repels browsing pests like deer and rabbits. Bare Ground Solutions bareground.com or 888-800-8356

Portable Propane Skillet The FIREDISC® Original Skillet is a portable cooker designed to disassemble for flat, easy storage with no screws, nuts or bolts to wrestle or lose. Using large or small propane tanks, the FIREDISC® Skillet features a cooking surface that seasons like a cast iron skillet and cleans in minutes. It includes a flexible stand that adapts to uneven outdoor surfaces and is available in red or black. FIREDISC Cookers firedisccookers.com or 281-857-3711

Cleaning Sheet Mr. Clean Magic Eraser Sheets have the cleaning power of Magic Eraser in a disposable sheet. They’re thin and flexible to clean in hard-to-reach places and work with just water. Ideal for cleaning greasy stovetop knobs, tough microwave stains, grimy fridge handles and more. Proctor & Gamble mrclean.com or 800-867-2532

Send a note to editorial@nrha.org with the details about products you can’t keep on the shelf. Include your name, your business name and a few reasons why you or your customers would love it to be considered for publication.

HARDWARE RETAILING | June/July 2020

Ratcheting Load Binder The DoRa ratcheting load binder features a patented spindle-in-a-spindle configuration allowing it to be 20 percent shorter than standard load binders. When extended, the longer spindle length gives users twice the tensioning distance of other load binders, allowing them to start with a tighter chain and perform multiple retensionings without the need to disengage the binder's clevis hooks. Doleco USA doleco-usa.com or 203-440-1940

Drain Tube Simple Drain is a 30-inch self-plunging drain hose that installs with just a pair of scissors. It won’t leak like plastic when bumped and it is resistant to chemicals and high temperatures. It fits most drain applications and is suitable for the home, garage, outdoors, marina and more. Crushproof Tubing simpledrain.com or 800-654-6858

Personal Fan The WOOZOO® personal fan uses a unique blade design to create a powerful vortex of airflow. By increasing and lengthening the angle of attack, it pushes more air with every revolution and generates an airflow pattern that gets larger as it moves away, engaging more of the air in a room. WOOZOO is available in oscillating and nonoscillating versions and all models feature a built-in carrying handle. IRIS USA irisusainc.com or 800-320-4747

June/July 2020 | HARDWARE RETAILING

New Products

Hand Sanitizer Uncle Bud's Hemp Hand Sanitizer is unscented and suitable for all skin types. Seventy percent ethyl alcohol eliminates up to 99.99 percent of harmful germs and bacteria. It is high in Vitamins A, D and E and omega fatty acids to help maintain healthy skin. Uncle Bud’s Hemp unclebudshemp.com or info@unclebudshemp.com

Knife Set Cangshan Cutlery's S1 series uses high-alloy German steel which takes a sharp edge and boasts superior edge retention. This five-piece set includes a bamboo knife block designed to fit in a drawer, freeing valuable counter space. Cangshan Cutlery cangshancutlery.com or 909-628-2345

“We picked Poo-Pourri

it Hand Sanitizer because of its nam portable size and catchy name. It has the requisite amount of sanitizing alcohol to ensure sanitizing. I would be lying if I did not say it was the first available during our supplies shortage.

”

—Mark Flottmeyer, Kroner Hardware

H Hand Sanitizer Poo-Pourri Hand S Sanitizer is made with natural essential oils and has 65 p percent ethyl e y alcoholl content. It of illness-causing in 15 I kills 99.9 percent p g germs g 5 seconds with its no-rinse, no rinse, quick-drying quick drying spray formula. It includes moisture-replacing ingredients to reduce drying and redness, leaving hands soft and germ-free. It is free of synthetic fragrances, triclosan, phthalates, benzalkonium and EDTA. Poo-Pourri poopourri.com or 972-752-8930

BORN ON THE JOBSITE 30+ Distribution Centers with Same Day/Next Day Shipping on Replenishment Orders Full Customer Service Department for Technical Calls & Customer Satisfaction

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Strong Margins From High-Quality Gloves TO BECOME A DISTRIBUTOR CALL: 844.200.5664 | www.IRONCLAD.com June/July 2020 | HARDWARE RETAILING

New Products

Expandable Bar Clamp The Jorgensen heavy-duty E-Z HOLD Expandable Bar Clamp boasts a clamping force of up to 600 pounds. It features an ergonomic grip lever handle and a maximum reach of 3 5/ 8 inches from the edge of the bar. It includes a patented feature that allows two E-Z HOLD Expandable Bar Clamps to be joined together to make a single clamp with a greater opening capacity. It can also be converted to a spreader clamp. Pony Jorgensen ponyjorgensen.com or 800-776-2228

Dishwasher Cleaner Glisten® Dishwasher Cleaner & Freshener removes odor-causing buildup from dishwashers. Tablets can be added to a normal dishwashing cycle and keeps the surfaces and hidden areas of the machine clean when used as directed. Summit Brands summitbrands.com or 888-476-6688

Job Site Storage Chest Constructed of arc-welded, 16-gauge steel, the BETTER BUILT® Job Site Chest features ergonomic, recessed handles with 90-degree stops for maximum leverage. A locking spreader secures the lid in open position to prevent accidental closure. Its powder coat finish provides corrosion protection and long-lasting durability. ¼-inch thick solid lock tangs provide pry bar assistance (locks not included) and the chest is prepunched for a grommet to provide electrical power cord access for battery charging while tools are safely locked inside the chest. Available in multiple sizes. Better Built lifebetterbuilt.com or 800-366-8269

HARDWARE RETAILING | June/July 2020

NHS Connects is a year-round digital platform designed specifically for the hardware & home improvement community to be the dedicated place to source industry content, connections and products. Use NHS Connects to stay up-to-date on leading industry topics and education, connect and set up direct appointments with leading suppliers and source new, trending products to get on your store shelves while expanding your current product offerings. Visit nationalhardwareshow.com/NHS-Connects to access all of the NHS Connects resources!

PPE MARKET

PPE Market, a part of NHS Connects, is a newly launched dedicated matchmaking program to connect retailers and distributors in need of PPE (Personal Protective Equipment) with manufacturers that are part of the NHS community and are currently supplying PPE products.

NEW & TRENDING PRODUCTS

This section of the NHS Connects platform will showcase all products that are a part of the NHS Awards, in addition to Made in USA, New Product Launch and New Product World.

EDUCATIONAL CONTENT & RESOURCES This section offers industry-sourced education & articles to help you navigate the marketing, business and administrative challenges you may be facing due to the pandemic.

CONNECT & NETWORK

Utilizing a NEW technology called Jublia, NHS is helping to facilitate direct and virtual appointment setting for buyers and retailers with NHS suppliers and manufacturers to ensure that business continues to be done between now and the Show in September. To use this tool, you must either be registered to attend the 2020 National Hardware Show or be an exhibiting company as profiles will be created for you based off of that information.

WEBINARS & STREAMING

NHS worked diligently alongside our partners to establish a comprehensive resource that aggregates upcoming COVID-19 virtual events, webinars & podcasts to prepare you for the challenges of the current climate. Be sure to check the schedule of upcoming events and the archive of pre-recorded resources!

HEALTH & WELLNESS

While providing resources for navigating your businesses during this unprecedented time is our main priority, we also know how important it is to focus on your wellbeing. Please take advantage of some of our health & wellness resources that we’re happy to offer you!

September 1-3, 2020 Las Vegas Convention Center Register at nationalhardwareshow.com!

New Products

Emergency Light The American Red Cross Blackout Buddy Color by Eton is an emergency LED blackout flashlight that doubles as a motion-activated night light. It can be left plugged in to a wall outlet to act as a night light or fold up the prongs and used as a single LED flashlight. Fully charged, it provides 50 lumens of light for up to 4 hours. Eton Corp. etoncorp.com or 800-872-2228

Cleaning Solution Formulated to clean phones, tablets, computer touchscreens, keyboards, car touchscreens, wireless earbuds, VR glasses, covers, cases, cables, chargers and more, HÄNS Ultra-Clean solution was developed specifically to clean today's tech. It includes an antibacterial-treated washable cleaning cloth. HÄNS Swipe hans-swipe.com or contact@hans-swipe.com

HARDWARE RETAILING | June/July 2020

Erasable Memo Pad WEMO is an erasable, silicone band to write notes on with regular pens or markers. The unique coating erases with one rub of a finger or an eraser. Developed specifically for nurses as an alternative to writing vital notes directly on their skin, WEMO is suitable for any application where handy note taking is desirable without carrying a lot of supplies. Lux Kami luxkami.com

Fire Pit and Patio Heater DualHeat is the first combination fire pit and patio heater. It can also be used as an outdoor dining table. The upper fire pit burner provides 30,000 BTUs and the infrared patio heater burner provides 11,000 BTUs for a combined output of 41,000 BTUs. It uses a standard LP grill tank and the table insert stores on the inside door of the fire pit. It includes bronze fire glass, table insert and protective cover. Mr. Bar-B-Que Products LLC dual-heat.com or 800-762-1142

Multi-Surface Formula Learn More at FrogTape.com ©Shurtape Technologies, LLC 2020/81911

Wireless Meat Thermometer MEATER is a wireless meat thermometer. It features dual sensors to measure the internal temperature of food and the ambient temperature. Temperatures can be monitored from the app and cooks can receive alerts remotely with almost unlimited range using MEATER Cloud. The charger is made of wood to match any kitchen or outdoor decor and charges the MEATER probe up to 100 times using one AAA battery. MEATER meater.com

Absorbent Pet Pad KOCHO Ultra Absorbent Potty Pads feature an embossed surface to absorb liquids quickly and evenly. Even absorption prevents wet surfaces. Polyethylene film on the bottom prevents tears and leaks and the pads contain a layer of activated carbon to absorb odors, eliminating ammonia smells. KOCHO Co. kocho.us

Wheelbarrow Caddy The Burro Buddy is a compact version of the Original Little Burro. While allowing users to use the full cavity of the wheelbarrow, it provides holders for short- and long-handled tools, a water-resistant cell phone compartment and a drink holder. Burro Buddy fits most wheelbarrows. The Little Burros littleburros.com

HARDWARE RETAILING | June/July 2020

Checkouts

Socially Distanced Fun

hen the local Easter egg hunt got canceled, Dawne Ramshaw of Ramshaw’s Ace Hardware in Mount Shasta, California, printed Easter egg coloring pages to give away. She invited the community to decorate the paper eggs and hang them in their homes and business windows. On the Friday and Saturday before Easter, families drove around town looking at windows and reported back how many eggs they spotted for the chance to win prizes from the store. Families enjoyed finding hundreds of the eggs around town and posted pictures on the store’s Facebook page. “A lot of people were really thankful we gave them something to look forward to that weekend,” Ramshaw says.

“A lot of people were really thankful we gave them something to look forward to that weekend.” —Dawne Ramshaw, Ramshaw’s Ace Hardware

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Send an email to editorial@nrha.org to have your story considered for publication. 30

HARDWARE RETAILING | June/July 2020

A Good Deed Rewarded In April, the local land conservation district approached Mayfield True Value manager Susan Norman and asked if the store in Mayfield, Kentucky, could provide a location for the district’s annual tree giveaway. Norman was glad to help. The store had stayed open and could support the conservation district, despite COVID-19. Norman didn’t anticipate that people would start arriving before the trees were unloaded from the delivery truck and trickle in all day until all 3,000 seedlings were gone. People who showed up for the freebies also shopped in the store’s lawn and garden department. “I didn’t know what to expect and I couldn’t believe the turnout,” Norman says. “It helped get our name out there.”

Social Media Success Ackerman Supply, which has two locations in Kansas, has bolstered its social media following with popular product giveaways. Shelby Ackerman, who handles marketing for her family’s stores, regularly publishes social media posts promoting product giveaways. Customers only have to click like on a post for Ackerman to add them to a random drawing for a prize, such as a garden hose. The prize posts showcase products the stores carry and have helped grow the operation’s Facebook following from fewer than 400 people to nearly 2,000, with an even larger reach. “It’s very important for us to build awareness and have people see online the wide variety of things we’re offering,” Ackerman says.

Pretty and Portable David Strano, general manager of Ambridge Do it Best Home Center in Ambridge, Pennsylvania, perpetually looks for ways to add artistic touches to his store. Portable merchandisers made from wooden pallets were a recent inspiration. He asked his team to build the displays for attractive seasonal products and add wheels so the merchandisers can be moved wherever needed in the store. The displays are as practical as they are appealing.

June/July 2020 | HARDWARE RETAILING

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CRISIS A N I N D U S T RY AT WO R K D U R I N G C OV I D - 19 BY M E L A N I E M O U L A N D K AT E K L E I N

ver the last few months, the world has seen remarkable acts of courage from people who are still going to work every day because they work in essential fields. Health care professionals, grocery stockers, shipping facility workers and hardware store staffers are all part of the vast spectrum of people who have kept businesses running during the pandemic. Home improvement operations across North America were deemed essential operations early on when stay-at-home orders were issued. The result for many operations has been an increase in business, although it may look a little different these days. As people are staying safe at home, they are discovering new hobbies and taking on new home improvement projects, which has significantly boosted sales

in lawn and garden and paint, among other categories. In addition, retailers have found themselves to be key suppliers for personal protective equipment and cleaning products when other common avenues have run out of stock. Hardware Retailing editors and staff have been talking to retailers from the beginning to find out how they have amended operations to serve their communities and continue exceeding their customers’ expectations. On the following pages, get insights into some of these retailers’ stories and learn how wholesalers are responding to retailers’ needs and expanding their supplier relationships. In addition, get insights from industry experts into how you can share how vital small businesses are right now and how to lead during crisis.

Visit hardwareretailing.com/covid for even more retail stories and the latest industry-related COVID-19 news and updates.

HARDWARE RETAILING | June/July 2020

June/July 2020 | HARDWARE RETAILING

Serve Fresh Ways to

hen the spread of COVID-19 began changing the lives of residents in Winston-Salem, North Carolina, Cloverdale Ace Hardware was quick to find new ways to serve. Store owner Douglas Brown scrambled to ensure his business could continue operating, while accommodating employees who were afraid to work. He also worked hard to source products that were in high demand. More customers than ever needed Brown’s store, but businesses throughout the U.S. were being forced to close as the virus spread. “I had lost sleep, I can’t even tell you how many nights, not knowing what it would mean,” Brown says. “We weren’t even sure if we would be deemed an essential business.” But the state government classified hardware stores as essential, and Brown has been working side-by-side with his employees every day, making changes to cleaning protocols to keep employees safe while adjusting services to help customers.

HARDWARE RETAILING | June/July 2020

One of Brown’s latest initiatives is a partnership with a local tech business to provide a new mobile app to customers. Brown uses the app to answer customer questions via text message or video chat.Customers can call Brown through the app and show him what’s broken on their toilet and ask for advice on how to fix the problem and what they need to buy. “There’s a lot of expertise found in a store our size. This just gives us one more way of communicating and being responsive to our customer base,” he says. Cloverdale Ace has also promoted curbside pickup, delivery to homes and deliveries to the guard gate at a gated retirement community. Sales have shot up because the store is meeting community needs in every way it can. “I’m burning the candle at both ends to be sure we’re doing everything we can do,”Brown says. “I can’t tell you how often somebody looks me in the eye and says, ‘Thank you for being open. We appreciate you so much.’”

Douglas Brown of Cloverdale Ace Hardware in North Carolina uses a mobile app to walk customers through repairs.

June/July 2020 | HARDWARE RETAILING

Retailers Respond Gardening Kits for Kids North Webster Ace Home Center in North Webster, Indiana, has done its part to help pay for community meals and provide products customers need during the pandemic. Giving gifts to local children who were pulled out of school and learning to cope with social isolation was an additional way the store staff wanted to serve. Employees put together planting kits in decorated paper bags containing seedlings and small amounts of compost and soil. They set the kits outside the store’s front door for parents to pick up for their kids while maintaining social distancing. “It’s just something they can pull up and grab. People have liked it,” store owner Dennis Wagoner says. “It’s fun.” The store advertised the free kits on social media and have made them available on an ongoing basis. Families have delighted in watching their plants grow and have posted pictures on Facebook to show the progress of the plants.

Offering Buckets of Goodness South Fork Vodka, a family-owned distillery in Grass Valley, California, began making hand sanitizer for nearby hospitals and homeless shelters in April to meet desperate needs for sanitation supplies due to COVID-19. The business needed 5-gallon buckets to deliver 250 gallons of the antiseptic. To help the cause, Hills Flat Lumber in Grass Valley donated 50 buckets. Jason Pardini, co-owner of Hills Flat, saw the partnership with another local business as a natural way to help health care and other professionals who serve vulnerable populations. “We’re one of the largest employers in town and some people look to us for direction,” Pardini says. “We’ve been part of the fabric of the community for 99 years, so we’re always here to help when any need arises.” Once the distillery was able to manage the bulk hand sanitizer needs, it began bottling smaller quantities for consumer use. Doing so helped Hills Flat Lumber, which had not been able to source high-demand hand sanitizer until it gained the local partnership and started stocking the sanitizer the distillery produced. “It’s flying off the shelf,” Pardini says. “Availability is key in this day and age.”

HARDWARE RETAILING | June/July 2020

Hardware Retailing wants to hear your stories. Reach out to us at editorial@nrha.org to let us know how you have adapted operations to continue serving customers during the pandemic, how you have given back to frontline workers in your community or if you just have a great story to tell about your business.

Roof Camping for a Cause As businesses in Spearfish, South Dakota, closed due to COVID-19, the need for food pantries in the community grew. Local entrepreneur Rick Radliff helped start a temporary food pantry and approached Heisler’s Hardware about assisting with an unusual fundraiser to pay for food to stock it. Radliff volunteered to camp on the highly visible store roof until the community raised $15,000 to sustain both the temporary and a permanent food pantry in town. Store co-owner Pam Heisler welcomed the idea. Heisler’s Hardware, which is located at one of the busiest intersections in Spearfish, used its scissor lift to get Radliff and his camping gear onto the store roof. Heisler’s also provided heaters to keep Radliff warm on nights when the temperature dipped as low as 28 degrees. The community embraced the project. Radliff was prepared to stay on the roof around the clock for a week or longer, but donors together contributed more than $17,000 in four days via cash and a GoFundMe page. Some people dropped hundreds of dollars in cash in a bucket at the store and others gave smaller amounts that were equally sacrificial. “It was so much fun and so humbling,” Heisler says.

Delivering Kindness LC Ace Hardware is working hard not only to take care of customers through the COVID-19 pandemic but also to help other local businesses succeed. The store is located in Lake Crystal, Minnesota, which has a population of about 2,000 people and only has a handful of local businesses to serve them. The hardware store and grocery store are both deemed essential businesses and are still open to the public, but other businesses have been closed or can offer pickup service only. LC Ace co-owner Dan Buss thought of a way he could serve both customers and other businesses. “We’re all friends in a small town,” he says. “I decided we were going to labor up and drive for them.” Buss called on friends and employees to pitch in to help make weekend store deliveries to Lake Crystal residents’ homes—and pick up those residents’ grocery or restaurant orders on the way. And if residents just ordered from Dairy Queen, then Buss was willing to send a delivery driver to pick up food and deliver it without a hardware store purchase. “We want to see everyone succeed,” Buss says.

June/July 2020 | HARDWARE RETAILING

Pulling Together at Petersburg Hardware

he employees at Petersburg Hardware in Petersburg, Indiana, have taken their roles as essential workers and community servants seriously. They have accommodated major changes to how their store serves customers, and they have pulled together as a team to take care of their neighbors with pride during the COVID-19 pandemic. Coming together has involved extra work to implement and follow new cleaning and social distancing procedures. They have also started taking orders via phone, Facebook messenger and at the cash register, serving as personal shoppers. In March, the store began closing two hours early every day to allow time for deep cleaning and stocking the shelves without customers in the building. One employee has sewn 500 cloth masks so the staff and other people in the area can stay safe. Employees used a laundry room sink and garden hose to set up an outside hand-washing station for customers to use before walking in the store. Employees posted signs asking shoppers to wash their hands before entering. In April, store owners Dennis and Sherry Bishop decided to make hand-washing mandatory for all customers and limited the number of shoppers inside to 10 at a time to make social distancing The employees all easier and help employees feel more comfortable. They assigned an employee to stand at the front see that we’re here to door to enforce the hand-washing rule and limit the serve our community. number of customers coming in. For several weeks, the staff split into two teams They’ve all come that alternated shifts without overlapping at the together because they store so one team would be available to keep the store open if someone from the other team realize they need to became ill. If one person from a team had gotten sick, the rest of the team would have needed to be here to keep our quarantine at home. community running. The employees no longer work on small separate teams, though, because the schedule was exhausting them, says Petersburg Hardware Robin Smith, vice president, vice president Robin Smith. Petersburg Hardware “You could just see it on their faces,” she says. “They’re energetic, but that level of energy had decreased.” So few residents in their county contracted the virus that going back to a more typical work schedule seemed like the best way to take care of the staff. “The employees all see that we’re here to serve our community,” says Smith. “They’ve all come together because they realize they need to be here to keep our community running.”

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HARDWARE RETAILING | June/July 2020

June/July 2020 | HARDWARE RETAILING

Read these excerpts from distributors on how they are managing communications and supply chain logistics during the pandemic, and read their complete comments at TheRedT.com/wholesaler-responses.

S E C U R I N G T H E S U P P LY C H A I N

COMMUNICATION We have an online communication hub where our retailers can find COVID-19 information and resources, real-time inventory and supply chain updates as well as various programs they may be able to participate in, like the CARES Act. In addition, we’re hosting online webinars and regularly communicating updates through emails and videos.”

“Our field team is actively engaged with our store owners on a regular basis. We filled our member website with pandemic response information as well as supply chain updates. We also quickly launched a text service for LBM members so they could stay current on rapidly changing situations at the mills and manufacturers.” —DENT JOHNSON

Vice President of Merchandising, Do it Best

“We are fortunate to have many points of contact with our retailers. Our sales team is the best starting point for most Orgill customers as they are closest to them and they have the most current product information from the appropriate distribution center. Also, our customer service team is fully functional and operating as normal with our regular service hours.” —BOYDEN MOORE

President and CEO, Orgill Inc.

—LYNDSI LEE

Senior Vice President, Supply Chain, True Value “We pride ourselves on being available for our members. The entire Distribution America network can help each other. Whether it’s questions or concerns about products and vendors or sharing best practices, chances are, if one member has an experience worth sharing, another member will benefit from the information.” —DAVE CHRISTMAS

President and CEO, Distribution America

HARDWARE RETAILING | June/July 2020

“Our communication has been focused on how distributors and retailers can respond to the crisis. We have a ton of information posted on an extranet website that everyone, whether they are a manufacturer, distributor or retailer, can access. For example, we posted a list of best practices for retailers to combat COVID-19. It’s a good checklist for retailers to follow so they know they can be open for business and not put their staff or customers in danger.” —STEVE SYNNOTT

President and CEO, PRO Group

SM A L L B U S IN E S S E S A R E T HE

Essential Economy BY BILL B R UNEL L E Small businesses are often called the backbone of the American economy, but never has that truth been clearer than during this pandemic. In addition to sickening millions of people, the outbreak abruptly crippled much of the global economy. The downturn quickly revealed to policymakers and everyday Americans the essential role small businesses play in their communities. Long hailed as a backbone, these businesses rapidly became the essential economy. Within days of the outbreak surging in the U.S., state and local governments began to order the closure of nonessential businesses, including movie theaters, car washes and fitness centers. Public schools, daycare centers and universities also closed their doors. What remained was a network of essential businesses, including grocery stores, pharmacies and many hardware stores. These businesses, lawmakers said, would sustain the country through the most significant and widespread crisis many Americans had ever seen. For uneasy Americans, these essential businesses also became a symbol of stability. Shelves went bare at first but soon returned to normal as the supply chain stabilized. As customers settled into their new routines at home, the essential businesses were a reminder that some things would not change. Indeed, many hardware stores gave customers the inspiration and materials they needed to make their house feel more like a home during the crisis.

Closed, But Not Forgotten

Even those small businesses not deemed essential by law were not forgotten. They, too, became a vehicle for relief. The federal government’s Paycheck Protection Program ushered support to individual Americans through the country’s small businesses, who employ a majority of American workers. Meanwhile, the Small Business Administration began making Economic Injury Disaster

Loans available for small businesses in need of advances in funding. Together, these relief programs have allowed small businesses to continue making payroll and to offset other COVID-related losses. This support for small businesses is telling. It is a recognition that, open or closed, small businesses play a profound role in the lives of everyday Americans. They create jobs, pay taxes, reinvest in the community and are essential to keep the country going.

Local Impact

In particular, small businesses are essential for their local impact. They create value first and foremost at the community level. While national chains and big businesses funnel their profits away from local communities to their national headquarters, small businesses keep their proceeds in the local economy. Research from Independent We Stand, the North American Retail Hardware Association and Civic Economics has shown that locally owned hardware stores, in particular, reinvest revenue with a rate of return that is 130 percent more than chain retailers. The research also indicates that locally owned hardware stores reinvest 30.4 percent of their revenues locally, for a local advantage that is 676 percent higher than Amazon provides. During a crisis, this local impact is key—and the coronavirus pandemic illustrates why. Throughout the pandemic, the national economy has been bolstered by the Federal Reserve, which has cut interest rates and bought government bonds to encourage investment and prevent panic in the stock market. Those are important measures for the national economy, but they do very little for local economies across the country. Instead, local economies rely on local businesses to keep their workers employed and their consumers spending. That’s what it means to be the backbone of the American economy. Throughout the pandemic, small businesses will sustain the country to the extent they can remain open and adapt. Once it ends, small businesses will rebuild the country, one community at a time.

Bill Brunelle is the co-founder of shop local movement Independent We Stand (IWS), which educates communities about the benefits of supporting locally owned businesses. IWS inspires small business owners to celebrate their locally owned status and helps consumers understand their value. IWS is sponsored by STIHL, Do it Best Corp. and PPG Paints.

June/July 2020 | HARDWARE RETAILING

S E C U R I N G T H E S U P P LY C H A I N

LOGISTI C S We are assisting our members with their supply chain needs, including finding new sources as well as monitoring and managing shortages from current suppliers. We also have a vetting process designed to ensure that all new suppliers are credible sources.” —DAVE CHRISTMAS

President and CEO, Distribution America

“Our team is working diligently to meet demand, and in some cases, that has meant instituting maximum order quantities. What’s been interesting to track is the demand for items as families stay busy at home, including paint, kitchen products, gas cans, air and water filtration products and items for craft projects.” —DENT JOHNSON

Vice President of Merchandising, Do it Best

“We have a system in place that we execute during natural disasters that we’re using now. Every day, our management team joins a video call to review the safety and health of employees, supply chain updates, regulatory changes and feedback from sales and senior management who have spoken to our customers.” —BOYDEN MOORE

President and CEO, Orgill Inc.

“We’re trying to keep conducting business as usual as much as we can. Suppliers are also using our extranet to post special notices regarding availability, delays in shipments or new products that are available. We’ve been using Zoom conferences to let manufacturers be aware of special circumstances distributors are facing based on local market stay-at-home orders.” —STEVE SYNNOTT

President and CEO, PRO Group

“Like the rest of the industry, our supply chain is under stress. Currently, we are receiving orders for 110-300 percent of production capacity on any given day. To get caught up and back to “on-time, every time” delivery, we have added staffing, equipment and training and have taken steps to reduce the number of lines required to be picked and shipped. We’re also working closely with our suppliers daily to expedite product delivery, adding new items and vendors as alternatives arise and recommending substitute products for out-of-stock items, like KN95 and 3-Ply face masks. We’ve also instituted limits on certain products to make sure we’re —LYNDSI LEE

Senior Vice President, Supply Chain, True Value

HARDWARE RETAILING | June/July 2020

3 W A Y S TO M AN A G E C R IS IS T H R O U G H

Leadership BY RO B M ATHEWS Great leaders rise up in times like this. They elevate because leadership excellence in times of crisis is very much the same as it is in normal times.

However, no one is perfect, and there are some nuances to crisis management. After talking to dozens of retailers and drawing on my own experiences, I’ve come to the conclusion that great leaders excel at communication, reducing stress and promoting self-care and collaboration in times of crisis.

Communicate With Your Team

First and foremost, solicit ideas and solutions from your team. Give them a voice and leverage their unique perspectives. You will not use all of their ideas, and that is alright, but let them know you want to hear from them. In the same vein, talk with each of your employees one on one. Find out what their personal needs and challenges are—such as family, scheduling, energy, stress, health concerns and perhaps even their reluctance to want to work with the risks of the current situation. Show them you care by listening and meeting those needs the best you can. Make sure you ease their concerns by reassuring them of paycheck security and the long-term sustainability of the company. In addition, communicate changes in policy and procedures often. Finally, don’t forget to regularly acknowledge their accomplishments and show genuine appreciation for their work and commitment.

Take the Edge Off

Uncertainty, change and chaos can trigger stress for your employees. Work with your team to create systems and processes to reduce stress and meet potential moments of chaos head-on. Many retailers have done a great job creating systems for efficient checkout queues, traffic flow, physical distancing and customer interaction. It is also important to properly equip your team, including safety gear. Your employees need to feel safe to give you their best.

Many leaders are taking the edge off by having friendly competitions, such as dance-offs, singing duels and costume battles, and then posting the videos and photos on social media. Let your team be the stars of the show! Finally, consider dressing up harsh reminders of crisis moments. For instance, employees at Home Hardware in Nova Scotia cut shapes (such as fish and animals) out of paint chips and placed them on sneeze guards to create themed “windows” at the checkouts and paint and service counters. Themes included an aquarium, zoo, and celebrity photo booth. This festive idea has lightened the mood and provided conversation pieces. Finally, give employees regular opportunities to take a break and vent as needed. Be cognizant of their body language and anticipate what they may need from their leader in a moment of uncertainty.

Prioritize Self-Care and Collaboration

Remember to take care of yourself. Don’t fall into the trap of thinking you have to come up with all of the solutions. Talk to other leaders, store owners and friends in and out of the industry. Share your frustrations, vent and collaborate on innovative solutions. Continue to exercise and eat healthy. Foundational research that came out of the Entrepreneurial Leadership Institute at Ball State University revealed that the most productive entrepreneurs and leaders who also had the greatest longevity in their businesses exercised regularly and stayed healthy. Great leadership is “exposed” in times of crisis. Listen to your team’s ideas, meet their needs, regularly communicate with them, be intentional about taking the edge off and don’t forget to take care of yourself. You won’t be perfect, but you can have a great impact on your team, your business, and your communities. You were made for this!

Dr. Rob Mathews is the executive director of the Entrepreneurial Leadership Institute at Ball State University. Mathews holds a doctorate in higher education from Ball State. He also has owned and managed home improvement operations and serves as an instructor for the North American Retail Hardware Association’s Retail Management Certification Program.

June/July 2020 | HARDWARE RETAILING

COMMITTED O TO O YOU OU The Industry y Honors Essential Heroes

ince the onset of the COVID-19 CO pandemic, h i il home improvement retailers across N h America A i have h b h d at workk North been hard idi their h i communities i i with i h the h providing p d d support they h need d to keep k h i homes h products and their f f and productive.. and families safe F many, this meant finding f For new and unique k h i operations i i h i ways to keep their running, their f Long customers supplied and their employees safe. ff hours, reduced staffing and new protocols tested t resolve and ingenuity off independent home the i il h . improvement retailers everywhere. A they h have h d i i the h past, As done so many times in th il h occasion. i Wh h that h these retailers rose to the Whether h meant implementing i l i services i lik contactless l has like f to delivery and curbside pickup or making it safer i h i in-store, i i d d h continue shopping independent home f f their vital improvement retailers continued to fulfill role in their communities even during one off the m f most daunting challenges the world has faced in i . recent times. I is i also l important i i companies i It to recognize t f throughout the channel that have also had to find new f ways to operate and continue to manufacture and d li h products d d services i h il d deliver the and these retailers need t stay operational. i l. to

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HARDWARE RETAILING | June/July 2020 0

Th i no doubt d b that h independent i d d h There is home i il ’ ability bili to support their h i improvement retailers’ ff communities has been a team effort. The North A i R il Hardware H d A i i (NRHA) American Retail Association d Hardware H d R ili g are humbled to have and Retailing b ff . been able to play even a small role in this effort. Th h h pandemic, d i we have h h to Throughout the sought p f provide whatever information and support we could t help retailers stay informed f to about best practices, f learn from the success stories off their peers and g i the h insights i i h they h might i h need d to keep k i gain operating f f safely and profitably. F li resources and d podcasts d From online to retailil t h ll webinars bi d articles, i l d town halls, and NRHA and H d R ili g have developed the guides Hardware Retailing r il h d d to workk through h h this hi crisis. i i . retailers have needed I this hi issue i H d R ili g we have h In off Hardware Retailing, put t h the h following f ll i special i l advertising d i i section i together t give i the h industry’s i d ’ vendors d i to to an opportunity h h i support off our frontline f li heroes h h are share their who h l i their h i communities. ii . helping Th advertisers d i i this hi section i are committed i d The in t helping h l i independent i d d il dl h to retailers regardless off the h ll h face, f d each h and d every company challenges they and f d here h f l it i was important i i and d featured felt to recognize il ’ efforts ff d i this hi challenging h ll i time. i . support retailers’ during

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RESOURCE REVIEW | PODCAST

Behind Your Back A Podcast With Bradley Hartmann

his podcast review is the third installment in a bimonthly series Hardware Retailing is publishing to highlight books, podcasts and other resources retailers recommend to fellow business owners in the independent home improvement industry. P. Brett Thorne is chief operating officer for Thorne Lumber Co., which has three locations in Missouri. He values the focused learning opportunities podcasts offer and recommends Bradley Hartmann’s “The Behind Your Back Podcast” because of its perspective on sales in the building materials industry.

Thorne’s Takeaways

1 2 3 4

P. Brett Thorne Thorne Lumber Co. Missouri

Onboard and Coach Truly onboard new sales staff. Don’t forget to teach and coach them. The podcast offers refreshers on selling techniques that are helpful for experienced staff to remember and new employees to learn.

Remember: Selling Is an Art What I see in our industry as a whole is that we have lost some of the art of selling. People really need to go out and know the sales process, find customers and build relationships. They need to learn to be strong, hold their pride and define the value proposition your business offers.

Look Beyond Selling Products Even with our existing customers, we need to go beyond, “What can I do for your business?” and “What products can I pick out for you today?” We need to ask, “How can I help your business be more profitable?”

Interrupt in the Right Way Sales people interrupt pro customers by showing up at a job site or making a phone call. If you catch a customer at a bad time and catch them in the wrong way, you can hurt them in the sales process.

“Bradley Hartmann provides a lot of value. He goes in depth and he even has some tools, such as call structures and call sheets, he offers to listeners. He doesn’t take a bland topic and keep it bland. He finds great ways to keep things entertaining and colorful.”

June/July 2020 | HARDWARE RETAILING

HARDWARE RETAILING | June/July 2020

M E R C H A N D I S I N G

If These Aisles Could Talk W H AT YO U R M E R C H A N D I S I N G TELLS YOUR CUSTOMERS

BY JESSE CARLETON

JCARLETON@NRHA.ORG

erchandising has a lot to say to shoppers. It shapes their perception of your pricing, inventory position and expected level of customer service, and it can influence how much they buy. Powerful merchandising can build your average transaction size and help customers find what they need quickly. Hardware Retailing editors have been collecting photos of compelling displays that send customers a message. Each display can influence shoppers in a specific way, such as help them with projects, alert them to a bargain price or encourage add-on sales. Use these ideas from retailers across the U.S. and Canada for inspiration as you develop your merchandising strategy for the coming months. Even if you are not allowing customers to spend much time browsing the store right now, you want to be ready with fresh display ideas when customers start coming back.

June/July 2020 | HARDWARE RETAILING

Visit this department.

Find something unique.

Projects start here.

Point them in the right direction.

At Harris Home Hardware in London, Ontario, these endcaps introduce the rest of the department and draw customers deeper into the aisle. “We want everyone who enters our store to feel welcome and intrigued to see what is over there,” says Kevin Harris, store manager. The endcaps also help join two departments, housewares and home goods, so customers are more likely to visit both.

Wendy Weiler, owner of Sunbury Ace Hardware in Sunbury, Ohio, says an effective project display inspires customers to start projects. “Maybe they weren’t thinking about painting, but if they come into the store and it’s 50 percent off, they might change their mind,” she says. “We also put something in there they may not have thought about, like the ladder, as a suggested add-on sale.” 68

HARDWARE RETAILING | June/July 2020

Homemade endcap displays at Harris Home Hardware slow down customers and encourage them to browse. They also give the signal that there’s something unique about the store’s product selection. “These displays add flair to the area that a regular endcap would never be able to do,” says Harris. “They add something a little different than what customers normally see, and that can make all the difference in retail.”

Bulky inventory normally stocked in the lumberyard gets fair play at Central Valley in Napa, California. Garret Ippolito, chief marketing and merchandising officer, uses strategically placed signs and TVs to make sure items such as fencing or straw bales don’t go unnoticed. “If something is out of sight, it’s out of mind, so we bring those hidden items front and center and let customers know what we have,” he says.

Focus on lifestyle.

Creative labeling at Outdoor Supply Hardware in Napa, California, gives departments the feeling of a destination where customers can outfit their lifestyle. Custom signage and a little creativity can go a long way in catching shoppers’ attention and enhancing their overall shopping experience. Give your store a unique flair, and customers will be more likely to remember you the next time they plan a shopping trip.

“Never limit yourself by thinking there is only one way to do something or focusing on one plan to follow. Add some flair, take some risks and have fun!” KEVIN HARRIS H A R R IS H OM E H A R DWA R E

June/July 2020 | HARDWARE RETAILING

05 06

HARDWARE RETAILING | June/July 2020

6 COM PO N ENTS O F AN EF F E C TI V E D I S PLAY 01

Sharp Assembly

Curated Assortment

Targeted Signage

Seasonal Suggestions

Add-on Sales

Custom Displayer

Show products assembled and out of the box so customers can touch them and understand how they work.

Let customers see the wide assortment of products you carry in the highlighted category and how it differs from your competitors.

Reinforce your merchandising message with signage; in this case telling customers about your ability to serve a specific customer group.

Change displays with the season to remind customers of the products they’ll need for upcoming projects.

Boost transaction size by suggesting the necessary accessories that go with the tool or project you are selling.

You likely can construct a simple but effective merchandiser using materials you already have around the store.

“To have effective merchandising, you need to understand the role of each category in your store. Everything else gets aligned to that strategy. We are constantly reviewing our promotional strategies and asking what we can do better.” GARRET I PPO LITO C E NT R A L VA L L EY June/July 2020 | HARDWARE RETAILING

RESOURCES

DOCUMENTS

ADVISERS

COMMUNICATION

Who’s in Charge? 3 Quick Ways to Prepare for the Unexpected

he COVID-19 pandemic has required many business operators to test their agility to the extreme. There have been numerous stories about retailers supporting their community members with supplies to stay safe at home and providing frontline workers with supplies to stay safe in other essential sectors. Supplying equipment and goods to customers to help them be prepared for emergencies is one key role retailers have played during this time. But how many of you have stopped to think about preparing your own business for emergencies? Even if you have a will or trust, those may only account for personal assets, not business operations.

HARDWARE RETAILING | June/July 2020

If you’re not ready to take on a formal succession plan, at least take time to create the framework so your business can operate in the event you need to take extended time off for an unexpected illness or injury. You should have policies, procedures and people in place so decisions can be made without your approval. Take the following steps to create an “in-a-pinch” succession plan to give yourself, your staff and your family peace of mind. While you’re putting this plan together, you may end up finding the person who could be your successor, and you can identify people who can take on more responsibility than you originally thought.

NUMBERS

PLAN IN A PINCH

FAMILY

See additional resources from Hardware Retailing’s series at TheRedT.com/succession.

FINANCES Appoint another person who can sign checks, transfer funds company accounts and understands the basic accounting for your operation. Tip: Get a refresher in accounting with the Basic Retail Accounting training program from the North American Retail Hardware Association at nrha.org/online-training.

OPERATIONS Have additional staff in place for inventory and employee management, including ordering, hiring and scheduling. Tip: In the same way you have fire drills, test your process before it needs to be executed in a pinch. Knowing where there may be hurdles can help streamline it and avoid complications later.

COMMUNICATION Be sure your family knows who your secondary people are, especially if your family isn’t involved in the business. Send notices to banks, vendors, attorneys and other advisers so they know who may contact them in your stead. Tip: Download a template letter at TheRedT.com/succession to fill out and send to your advisers.

June/July 2020 | HARDWARE RETAILING

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High Performance Retailing Brought to You by Hardware Retailing and The Farnsworth Group

SUMMER 2020 V3 | H1

Giant Leap

Commending Industry Innovation Page H3

Knowledge Is Power

Cost of Doing Business Study Gives You the Edge

Page H4

Facing the Future

Understand the Months Ahead for Home Improvement Page H6

ONLINE

Connect With Us CONTENTS

SUMMER 2020 | VOLUME 2 | ISSUE 2

Website HPRmag.com

Features H6

ANALYSIS

The Way Forward

The effects of COVID-19 have been inescapable for every player in the home improvement industry. High Performance Retailing speaks to experts in human resources, home construction and the global economy to discover what the coming months—and years—hold for retail.

93%

of U.S. homebuilders say the virus has impacted homeowners’ willingness to remodel Source: National Association of Home Builders

High Performance Retailing is a collaboration between the North American Retail Hardware Association and The Farnsworth Group. Both organizations are committed to helping the home improvement industry prosper with relevant, informative and timely data. Executive Vice President and Executive Editor, NRHA Dan Tratensek, dant@nrha.org Senior Partner, The Farnsworth Group Jim Robisch, jrobisch@thefarnsworthgroup.com Market Research Analyst, The Farnsworth Group Amy Theophilus, atheophilus@thefarnsworthgroup.com

Editorial, Design + Production Managing Editor Melanie Moul, mmoul@nrha.org Trends Editor Todd Taber, ttaber@nrha.org Copy Editors Kate Klein Hans Cummings Director of Communications Whitney Daulton Production Manager Nancy Vondersaar

Sponsorship Opportunities

Departments H3 Foundations Jim Robisch, senior partner of The Farnsworth Group, recaps retail’s turbulent months and highlights industry innovation. H4 In Conversation Dave Gowan, vice president of finance and business services for the North American Retail Hardware Association, details the value of the annual Cost of Doing Business Study.

Online Exclusive The Farnsworth Group is hosting regular webinars analyzing COVID-19’s extensive impact on the home improvement, construction and housing markets. Read a summary of the recent session with Kermit Baker of Harvard University’s Joint Center for Housing Studies by visiting HPRMag.com/tfg-webinar.

High Performance Retailing Summer 2020

Vice President of Sales and Publisher Kevin Hohman, khohman@nrha.org 317-275-9430 Northern Region Sales Director Brad Lyons, blyons@nrha.org 317-275-9424 Business Development Representative Matt Caruso, mcaruso@nrha.org 317-275-9409 Southern Region Sales Director Scott Gilcrest, sgilcrest@nrha.org 317-275-9414 Business Development Representative Jordan Rice, jriceo@nrha.org 317-275-9443

LEARN MORE

Connect With Jim Email jrobisch@thefarnsworthgroup.com

FOUNDATIONS

LinkedIn Jim Robisch

What We’ve Learned High-performance operators are expected to rise to any challenge. Once again, we’ve seen this made clear as independent home improvement stores across North America contend with the COVID-19 pandemic. While being deemed essential businesses certainly helped galvanize the industry, there was no go-to guidebook for dealing with the numerous unexpected challenges thrust upon the industry. The last few months have been totally uncharted territory. A fundamental change in retail took place in a matter of days. Home improvement operators quickly had to learn to offer stellar customer service from a distance, shuffle their staffing to balance physical and emotional health and develop new ways to deliver products to customers. High-performance retailers had to figure out a new set of retail rules under fire. In reflecting over the past three months, there are some vital takeaways every home improvement operator can learn and use to benefit their business. Customers have changed forever. It doesn’t matter if they’re DIYers or pros—they’ve changed the way they shop for home improvement products. We used to only see curbside pickup at grocery stores and some mass merchants, but now it’s part of the new business model, not only for home improvement, but retail as a whole. Customers who live in areas with shelter-at-home restrictions quickly adapted to utilizing technology to shop for home improvement products. For some customers who have used the internet for items from other retail sectors for years,

many wondered why they had never before included home improvement products in those online transactions. A sentiment of ‘Why haven’t I done this before?’ emerged and will continue. Retailers who had been expanding their online presence and e-commerce capabilities reaped the benefits of these new, more tech-savvy customers. High-performance retailers are greeting new customers, even from afar. Many of these new customers are leaving big boxes because they see independent enterprises as providing a safer and more expedient shopping experience. The most successful retailers will welcome new shoppers with open arms and highlight the customer service for which independents are known. Even against uncertain odds, high-performance retailers have forged new paths and continued as essential operations in their communities, all while maintaining superior customer service and adapting to supply chain uncertainty. Above all, the past few months have shown the resilience of home improvement retail and brought into focus the solid opportunities the future holds for the industry.

High-performance retailers had to figure out a new set of retail rules under fire.

Jim Robisch Senior Partner, The Farnsworth Group

Summer 2020 High Performance Retailing

Dave Gowan is the vice president of finance and business services for the North American Retail Hardware Association. Among his duties, Gowan oversees the production of the annual Cost of Doing Business Study, which collates data from more than a thousand independent home improvement, hardware and lumberyards across the U.S.

IN CONVERSATION

Build Your Base

Get Powerful Insights With the Cost of Doing Business Study

racking each aspect of your business’s performance is more important than ever for high-performance retailers. As each day brings new obstacles for you and your team to overcome, understanding where your business has been—and where it’s going—gives you the competitive advantage in your community.

Make Your Mark Submit your data for the 2020 Cost of Doing Business Study now through July 15. Visit nrha.org/codb to discover the many options you have to safely and securely share your data to strengthen the independent channel and illustrate a powerful baseline for your business.

“With the study, retailers can determine where they stand compared to typical and high-profit peers. This information gives you head start to make quick adjustments.”

For more than a century, home improvement leaders have counted on the Cost of Doing Business Study for unparalleled insight into their operations. The annual report helps operators identify trouble spots and quick wins to run more streamlined, efficient home improvement operations. “With this study, retailers can determine where they stand compared to typical and high-profit peers,” says Dave Gowan, vice president of finance and business services for the North American Retail Hardware Association. “This information gives you a head start to make quick adjustments.” Gowan explains how you can use the study to improve your business.

High Performance Retailing Summer 2020

Know the Right KPIs Using aggregated financial data from income statements and balance sheets of independent hardware stores, home improvement centers and lumberyards, the study reveals key metrics for typical and high-profit operations, including GMROI, debt to equity, sales per customer and more.

BERYARD

HA R

CE N T

$21

$68

$112

Inventory Per Square Foot “This metric helps you see how your products are performing,” Gowan says. “Do you have too little, or too much?”

CE N T

E LU

ME O

BERYARD

RE ST WA O D

HA R

2019 High-Profit Store Metrics

$58

$111

$218

Sales Per Employee “This is certainly one to know,” Gowan says. “If the typical home center makes $3.5 million a year, can you afford to hire new employees?”

E LU

C E NT

BERYARD

ME O

RE ST WA O D

2019 High-Profit Store Metrics

RE S

Prepare for the Future “The Cost of Doing Business Study helps you stay agile,” Gowan says. “The study lets you make strategic decisions to better position your business for the years ahead.”

ME O

Confirm Your Position “Every time you borrow money, you’re educating the lender about your business,” Gowan says. “They don’t understand your business like you do. Having an in-depth tool like the Cost of Doing Business Study offers a representation of the industry to a bank or financial institution.”

RE ST WA O D

Set New Goals By participating, you get a free copy of the Cost of Doing Business Study. Along with those results comes a What-If Scenario tool. You can adjust your operation’s performance to see how minor changes in certain metrics can yield results across your business.

2019 High-Profit Store Metrics

Analyze Your Performance “It’s amazing to see the number of companies with multiple stores that have truly been successful and around for generations still participate in the study,” Gowan says. “They still want to benchmark their performance. They’re always questioning how they can get better.”

“This figure is always important to retailers,” Gowan says. “It’s so consistent year over year. If I were a hardware operator, I’d want to see where I fall. Am I consistent with typical and high-profit operations?”

Retailers across the U.S. rely on the Cost of Doing Business Study to help them understand their businesses better, establish new performance standards and illustrate their place in the industry to people outside it.

Transaction Size

HA R

Personalize the Study

$203K

$251K

$406K

Summer 2020 High Performance Retailing

AUTHOR

Todd Taber Trends Editor

ANALYSIS

ttaber@nrha.org

What Comes Next

3 Expert Views on COVID-19’s Home Improvement Impact

ummertime in North America is traditionally a season of momentum for the home improvement industry. Construction crews take advantage of warm weather to build new homes and offices. Families spend more time outdoors, discovering small projects—a doorknob to replace, pavers to upgrade—that prompt a trip to the local home improvement store. COVID-19 has upended traditions. Since March, when many states and provinces began enacting shelter-in-place orders,

High Performance Retailing Summer 2020

the novel coronavirus has disrupted almost every facet of the home improvement industry: from supply chain stability and product availability to the basic ways you greet your customers. Even if home improvement stores are operating, they’re serving customers with strapped wallets and frayed nerves. High Performance Retailing spoke to three experts representing three fields critical to home improvement success to help you make sense of an unprecedented situation. Discover their insight in the following pages.

ONLINE

Keep It Running Visit HPRMag.com/covid-hr for more insights from SHRM’s Julie Schweber, including the importance of maintaining performance reviews.

Uncovering New Guidelines THE LEGAL IMPLICATIONS OF PROTECTIVE MASKS IN RETAIL

Julie Schweber Senior Knowledge Adviser Society for Human Resource Management shrm.org

the workplace, so COVID-19 could meet that definition. OSHA requires business owners to assess those possible risks and develop an action plan. That means retailers must list the steps the employer is taking to minimize them, which can include revised cleaning protocols and employee training.

As home improvement operators How should employers handle balance a new set of health situations where an employee does and safety guidelines alongside not want to or cannot wear a mask? shifting customer service If a state requires anyone in a public-facing job to wear a mask, an employer might want to start by expectations, Julie Schweber, training and educating employees to follow local senior knowledge adviser for guidance. Sharing the benefits of wearing masks the Society for Human Resource and how to properly care for them will also be especially important. Sharing the rationale behind Management (SHRM), offers any decision an employer makes is crucial to help employees understand why it’s so important. clear guidance to retailers. Many retailers are mandating masks be worn in stores. Does SHRM have guidance on the use of masks in retail? Above all, an employer should check their state or county regulations. In some areas of the country, local or state governments are requiring public retail workers to wear masks. Some locations are even requiring customers to wear some type of face covering before entering a retail establishment. By the same token, even if wearing a mask is not specifically required, OSHA regulation says business owners have a general duty clause, which applies to recognizing potential hazards in the workplace. Employers have to be aware of potential hazards and act to prevent or minimize them in

Don't present wearing a mask as an ultimatum. Help employees understand why you or your city are encouraging employees to wear them. If someone has a preexisting condition that prevents them from wearing a mask, an employer should know that it might represent a potential disability, which would include Americans with Disabilities Act protection. At that point, having a constructive conversation about what else could be done to accommodate an employee with a medical condition would be the right step. Maybe there is a certain type of mask that works better for their condition, or maybe their work could be done away from customers or other employees to limit interaction. It might have to be a oneon-one conversation with every employee to gauge their comfort level.

Summer 2020 High Performance Retailing

Housing Struggle COVID-19 DISRUPTS CONSTRUCTION MOMENTUM Robert Dietz Chief Economist National Association of Home Builders nahb.org

The National Association of Home Builders (NAHB) regularly surveys its members to guage their confidence in getting new jobs. In December, that figure hit a 20-year high. In April, the same metric plunged to an all-time low as COVID-19 paralyzed home construction in the U.S. How has COVID-19 impacted the 2020 housing market? We entered the year with a pretty strong builder sentiment: We had seen greater new home sales and single-family construction. We were expecting 2020 to see about a 3 percent gain in single-family building starts, and some were even projecting up to 7 percent. We had low unemployment, and we had strong housing formations. Apartment construction in 2019 had the best year since the Great Recession, and remodelling continued to be solid. That all changed. In April, builder confidence took a 42-point drop, the largest we’ve ever seen. It was the first reading below 50 since 2014 (and 50 denotes a neutral outlook). What that points to is a sharp decline in

High Performance Retailing Summer 2020

single-family home construction in the middle of this year. We anticipate single-family starts will be down about 20 percent through 2020, but we see the beginning of a rebound in the second half of this year. If the economy can open up safely, and we can get through some additional economic weakness we anticipate in the third quarter, the construction industry could be on its way to a recovery in the coming months.

How does COVID-19 compare to the housing crisis a decade ago? There are many differences between the Great Recession and what we’re experiencing now. COVID-19 is biological, while the Great Recession was largely due to a financial crisis. Going into 2008, we were overbuilt. There was a surplus of housing, which lowered overall home prices. Today, there’s a deep deficit of up to a million residences throughout the U.S. That shortage matters because while there could be some weakness in near-term home prices as demand falls off and unemployment goes up, in the long run, home prices will probably remain steady because of the limited supply of resale and new homes.

How can U.S. construction and the economy begin recovery? Housing’s share of the U.S. GDP is right around 15 percent, so home building’s impact is huge in the overall U.S. economy. On average, every single-family home built supports the equivalent of three full-time jobs in the labor force. Every apartment is one full-time job and every $100,000 in remodeling is one full-time job. Then there are downstream benefits of construction: building supply manufacturers, home improvement stores and

Data Dashboard COVID-19’s Effect on Remodelling

others. Real estate is high volatility, but it has a really high multiplier effect because that market stimulates construction and retail sales directly. As we begin to open up local economies safely, most economists would agree construction and manufacturing are two industries where you can practice social distancing measures. These sectors have a huge impact on the U.S. economy and could eventually help lead an overall economic recovery.

What are homebuilders saying about jobs in their areas? Homebuilding was considered an essential service and allowed to continue during most stay-in-place orders. Buyer traffic is down, but we witnessed more activity toward the beginning of May. As cities and states begin opening up as the pandemic subsides, you’re going to see more activity. It’s important to remember construction doesn’t require a dense concentration of people in the same way a retail store might. The typical construction site has fewer than 10 people at any given moment, so they can spread out. We’re hearing some jurisdictions are being flexible and are allowing for virtual inspections or one-on-one tours of properties to reduce the number of people on a job site. We’re going to have to continue these kinds of measures for the foreseeable future, but when you think of an economic sector that can continue and provide a lot of economic impact, U.S. home construction is one of them.

What would you want home improvement retailers to know about U.S. construction in the months ahead? It’s probable that home remodeling will fare better than construction in 2020. Remodeling did decline after the Great Recession, but nowhere near as sharply as multi- and single-family home construction. Our data suggests some homeowners are uncomfortable with having workers in their homes, but we are seeing relative strength for repair and remodeling done outside the home.

96%

96% of NAHB survey respondents say COVID-19 is affecting the rate of remodelling requests

93%

93% say the virus has impacted homeowners’ willingness to remodel

84%

84% say COVID-19 has delayed or caused cancellations of existing projects

Source: National Association of Home Builders

As we begin to open up and deal with a new reality, we’ll need to recognize a fundamental change in people’s perceptions of their homes and what they can do. More people work from home, and we don’t see that trend reversing. If that becomes permanent, they’ll want a true home office, even spaces for home gyms. Based on NAHB surveys, some builders indicate they are concerned about access to certain building materials. They’ve mentioned certain lighting and plumbing fixtures and specialized window and door hardware, so ensuring retailers carry those products could directly benefit builders.

Summer 2020 High Performance Retailing

A Variable Situation COVID-19 DAMPENS CONSUMER OPTIMISM

James Bohnaker Associate Director of Economics IHS Markit ihsmarkit.com

COVID-19 has brought economic instability not seen in generations. In response, the U.S. government has readied more than $2 trillion in economic aid through the CARES Act. As of June 2020, more than 40 million Americans remain unemployed, putting massive strain on the U.S. economy and the home improvement channel. What is your greatest economic concern amid COVID-19? Given the unprecedented nature of this situation and knowing that it’s tied to a health pandemic, my biggest concern is that we won’t get a handle on the disease and that it will last for much longer than we expect, or we have recurring outbreaks. That would

H10 High Performance Retailing Summer 2020

cause a situation where we’re in an uncertain mode where we don’t know if businesses can only reopen temporarily: that would be the worst-case scenario for a lot of businesses, especially nonessential retail.

Have stimulus payments sent to U.S. families had a tangible effect on the economy? Stimulus payments and the extension of unemployment insurance benefits have had a bit of an impact. Pretty much all of those payments were sent out April 15, and in the week following, we did see a rise in consumer spending. We saw increased spending in grocery sales (which were already high), a little bit in health care and general merchandise stores, which includes big-box and hardware stores.

Consumer confidence has fallen according to several organizations that track that metric. What does that drop mean for retailers? Overall consumer sentiment doesn't always translate directly into spending, but it certainly is a negative indicator for consumers’ mood and willingness to spend. It’s definitely a leading indicator of what we expect to be an extended period of weak spending. We’ve already seen that because many stores have been closed necessarily, but even once the economy truly reopens, you’ll need to see a rebound in consumer sentiment before people are willing to spend on discretionary items.

Data Dashboard

“I think it’s important

Small Business Jobs Report

to know that a V-shaped economic recovery is unlikely. A true recovery will probably be much more nuanced.”

Across the U.S. in May, businesses with fewer than 50 employees reported overall job losses compared to the same period in 2019.

—James Bohnaker, IHS Markit All consumer confidence readings are pointing to the fact that people are feeling nervous about their economic prospects going forward. Twenty million people lost jobs in April alone; that’s mind-boggling. That’s going to have a very real impact on their bank accounts and psychology.

Percent of Decline

What would you want home improvement retailers to know about their role in the U.S. economy in the months ahead?

-4%

-3.6%

-4.6%

Source: Paychex | IHS Markit Small Business Employment Watch

Consumer Sentiment Index

Consumers' willingness to spend remains low during COVID-19.

INDEX VALUE (NEUTRAL = 100)

I think it’s important to know that a V-shaped economic recovery is probably unlikely. A true recovery will probably be much more nuanced. I think the number of positive COVID-19 cases and the fear factor both have to decrease quickly to hope for a V-shaped recovery, especially for industries that are predicated on having close contact with others, like travel and entertainment. I think it’s important to understand that retailers will be operating with uncertainty for some time. They should set their own standards for how they want their businesses to function in this time, using guidance from federal, state and local governments. It would be a good idea for retailers to talk among their peers and set the standards they want to see for their industry going forward.

-3.5%

100 95 90 85 80 75 70

19 UL G P J SE AU

Y C R R V ' 20 E B F NO DE JAN MA AP MA

Source: University of Michigan Consumer Sentiment Index

Summer 2020 High Performance Retailing

H11

Newsmakers

Data Reveals COVID-19’s Home Improvement Impact

o understand how COVID-19, shelter-in-place restrictions and customers’ new expectations for safe, reliable home improvement shopping were impacting the industry, the North American Retail Hardware Association (NRHA) recently deployed the COVID-19 Business Impact Survey. In total, nearly 300 independent home improvement operators representing roughly 1,500 storefronts participated in the survey, shedding light on the obstacles and opportunities the pandemic has brought to the industry. “Now that everyone has been living in this environment for a few months, we wanted to understand the impacts COVID-19 has had on independent home improvement businesses, from a performance perspective and an operational perspective,” says Dan Tratensek, executive vice president of NRHA. Sales Are Strong for Retailers Nearly 72 percent of retailers say sales have risen at their businesses amid COVID-19 compared to the same period in 2019. On average, retailers say sales have risen about 17 percent. Additionally, more than 90 percent of surveyed retailers say COVID-19 has had some impact on their overall sales performance. Staffing Remains a Constant Concern Roughly 45 percent of survey respondents say they have employees who opted not to work at the store during the outbreak. More than one-third are running their businesses with fewer

HARDWARE RETAILING | June/July 2020

employees at their operation. Nearly 15 percent of respondents have furloughed or laid off employees. “The number of operators who have furloughed or laid off employees is still relatively small,” Tratensek says. “It looks like most of the reasons for laying off or furloughing employees center around areas of the businesses that couldn’t function during COVID-19, like remodeling crews or delivery teams.” Curbside Pickup Is Gaining Traction Retailers have adjusted their operations in myriad ways, but one of the clearest developments is the growth in curbside pickup services. More than 71 percent of retailers say they have instituted it in their stores. Supporting that business model is a simultaneous growth in online orders, which almost half of all respondents report. “It’s a very interesting development,” Tratensek says. “One of the reasons retailers are finding it so advantageous is not only because it’s a necessity, it’s also something big boxes weren’t doing. This is a great example of a process independent retailers figured out quickly.” Dig In to the Data There’s much more to discover in NRHA’s COVID-19 Business Impact Survey, including information on how retailers are incentivizing employees for their hard work. Visit TheRedT.com/covid-survey to learn more about the pandemic’s ripple effects on home improvement.

Get a free personalized analysis of your business. Participate in the 2020 Cost of Doing Business Study today!

Meet Bill. Bill runs a typical home improvement business in Indianapolis. Five years ago, he was operating an average store. Then, he used NRHA’s Cost of Doing Business Study to compare his business to high-profit stores. He learned he was missing out on more than $100,000 in annual profit. How did he use this information to help grow his profits? Watch the rest of Bill’s story at nrha.org/codb.

Canadian Headlines • Canadian Retail Sees Online Sales Surge Total retail sales fell 10 percent to $47.1 billion in March, setting a historic record for a monthly decline. In the U.S., retail sales fell 8.3 percent in the same period. Retail e-commerce sales in Canada reached $2.2 billion (not seasonally adjusted) in March, an atypical uptick for the month and more similar to the pattern normally observed at the start of the annual holiday shopping period. Sales at LBM and garden retailers amounted to $3.3 billion, unchanged from February and 1.5 percent higher than in March 2019, retail data shows. Follow NRHA and Hardware Retailing on social media for updates.

• British Columbia Retail Excluded From Wage Subsidy Only health care, corrections and social services workers will receive the benefit. According to the province, the lump-sum subsidy is equivalent to an extra $4 per hour for up to 16 weeks of work, retroactive to March 15. In light of COVID-19, many industry events are either postponing or transitioning to online platforms. For the latest information on major upcoming home improvement events, head to TheRedT.com/calendar.

@nrha_official

@hardwareretailing

Ad Index

Allway Tools ................................................................ 9 www.allwaytools.com; 718-792-3636

Mars/Coast Air........................................................... 17 www.coastair-ac.com

PRO Hardware .......................................................... 11 www.prohardware.com; 303-792-3000

Datacolor ................................................................... 55 www.datacolor.com; 609-924-2189

Midwest Fastener Corp........................................IFC, 1 www.fastenerconnection.com; 800-444-7313

Quikrete....................................................................... 5 www.quikrete.com; 404-634-9100

Distribution America.................................................. 47 www.distributionamerica.com; 800-776-7474

MiTek Industries Inc.................................................. 61 www.mitek-us.com; 800-325-8075

Red Devil Inc. ............................................................ 26 www.reddevil.com; 800-423-3845

Do It Best Corporation ......................................... 18-19 www.doitbestretail.com; 888-364-8237

National Hardware Show........................................... 25 www.nationalhardwareshow.com

Rescue! Sterling International Inc. ............................ 63 www.rescueMadeInUSA.com; 800-666-6766

Dutton-Lainson Company.......................................... 14 www.dutton-lainson.com; 402-462-4141

North American Bancard ........................................... 62 www.nynab.com; 866-481-4604

RMR Brands .............................................................. 56 www.RMRsolutions.com; 866-822-8744

EZ-AD Corporation..................................................... 58 www.ezadtv.com; 888-580-5593

North Dakota Safety Pros Inc.................................... 52 www.clearfacemask.info; 651-210-7717

Rust Patrol................................................................. 15 www.rust-patrol.com; 803-396-8400

Fluidmaster Inc............................................................ 3 www.fluidmaster.com; 800-631-2011

NRHA 2020 Cost of Doing Business Study .............. 87 www.nrha.org/codb

Shurtape Technologies LLC ...................................... 27 www.frogtape.com; 800-321-1733

Ganymede Technologies Corp. ................................. 51 www.j3pos.biz; 888-600-5522

NRHA Foundations of Leadership Program .............. 89 www.nrha.org/fol

Simpson Strong-Tie Company Inc............................. 57 go.strongtie.com; 800-999-5099

Gutster....................................................................... 64 www.handywipebucket.com

NRHA Retail Management Certification Program ..... 74 www.nrha.org/rmcp

Soudal........................................................................ 14 www.soudalusa.com; 877-873-8739

Home Improvement Research Institute.................... 29 members.hiri.org

Orgill Inc. ........................................................... 92, IBC www.orgill.com; 800-347-2860

Stinger Brush Company ............................................ 50 www.stingerbrush.com; 888-49-STING

Impact Absorbents Inc. ............................................. 60 www.spillhero.com; 800-339-7672

Paladin Data Corporation .......................................... BC www.paladinpointofsale/nrha.com; 541-803-6060

SureCan USA............................................................. 59 www.surecanUSA.com; 801-827-0500

Ironclad Performance Wear....................................... 23 www.ironclad.com; 844-200-5664

Phifer ......................................................................... 13 www.phifer.com; 205-345-2120

U-Haul International................................................... 53 www.uhaul.com; 800-468-4285

Lighthouse for the Blind............................................ 54 www.rapidfix.com; 800-542-3697

Plylox Hurricane Window Clips ................................. 22 www.plylox.com; 800-583-4289

Verus Direct............................................................... 50 877-843-5818

Major Steelz .............................................................. 60 www.majorsteelz.com; 305-244-5260

Police Security...................................................... 32-33 www.policesecurity.com; 866-880-9297

Wagner ........................................................................ 7 www.wagnerspraytech.com; 800-328-8251

Maple Avenue ........................................................... 48 www.mapleavenue.com; 800-236-4774

PPG Architectural Finishes Inc. ................................. 49 www.ppgpaints.com; 800-441-9695

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

HARDWARE RETAILING | June/July 2020

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nrha.org/fol

Last Word

What Makes an Appliance Buyer?

ccording to a recent survey from the Home Improvement Research Institute (HIRI), appliance buyers have certain characteristics and preferences. Appliances can be a competitive category, but there may be an opportunity in your community as department stores close or people seek local options for sourcing large purchases. For more insight into how the appliance category is changing, visit TheRedT.com/appliances.

HARDWARE RETAILING | June/July 2020

Top 5 Themes of Appliance Buyers Respondents to the HIRI survey were asked how strongly they agreed to statements about their homes and home improvement purchases. Based on their responses, they were sorted into the following themes.

ONE-STOP SHOPPER These buyers prefer to make just one stop for their home improvement needs. Identify these customer types by zeroing in on regular shoppers who consistently purchase a diverse basket of items. These shoppers were most likely to purchase clothes washers and refrigerators, according to the survey.

HOME INVESTORS

1 2

These shoppers see their home as their primary investment and value making improvements to it. Identify shoppers who regularly choose the highest quality items or who aren’t put off by spending more if it means the resale value will remain high.

ENVIRONMENTALLY CONSCIOUS These shoppers feel personal satisfaction in finding the most energy-efficient products for their homes. Help these shoppers find the right fit for their homes by having the latest information from the Department of Energy and appliance manufacturers on the efficiency of appliances.

RETAIL RELIANT

3 4

These shoppers rely on home improvement retailers to provide product information and advice and to recommend specific brands of products. You’ll know these shoppers because they will come in with specific questions and will want your guidance on making the right purchase.

INFORMATION SEEKER These shoppers want to know as much information about a product as possible before buying it. Support these customers by staying on top of appliance trends and being able to make recommendations according to specific projects.

Source: Product Purchase Tracking Study, Major Household Appliances, Home Improvement Research Institute, 2018

June/July 2020 | HARDWARE RETAILING

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