Hardware Retailing March 2020

Serving Hardware, Home Center & Building Material Retailers

Golden State

Acquisition Brings New Opportunities for California Retailer

Page 32

It’s Time to Get Comfortable With Your Discomfort Page H1

6 Questions to Ask Your Advisers Page 52

Volume 218 • Issue 3 • March 2020 • hardwareretailing.com

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It’s Our Business Orgill Understands Our Company and Our Customers

“Our business is a relationship business. We try to do the right thing for all of our customers, suppliers and employees.

Orgill radiates these same values in everything they do.”

Larry Huot l La Valley/Middleton Building Supply l An Orgill customer since 2001

Why We Like Working With Orgill: • Strong product selection • Variety of retail programs • A solid understanding of our company

Watch the video to see how Orgill’s services have helped LaValley/Middleton continue to grow!

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com

It’s Time to Get Comfortable With Your Discomfort Page H1

6 Questions to Ask Your Advisers

YOUR 2020 GUIDE TO NRHA

Page 52

Volume 218 • Issue 3 • March 2020 • hardwareretailing.com

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Serving Hardware, Home Center & Building Material Retailers

Golden State

Acquisition Brings New Opportunities for California Retailer

Page 32

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Serving Hardware, Home Center & Building Material Retailers

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It’s Time to Get Comfortable With Your Discomfort Page H1

6 Questions to Ask Your Advisers Page 52

Volume 218 • Issue 3 • March 2020 • hardwareretailing.com

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Headquarters Your NRHA Team

136 N. Delaware St. #200 Indianapolis, IN 46204 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.

What’s the coolest upgrade you’ve made to your home?

“We put in a tankless water heater, which has lowered our energy costs and will last longer than a traditional water heater.”

Kevin Hohman Vice President of Sales & Publisher

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

Todd Taber Assistant Editor

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

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

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

HARDWARE RETAILING | March 2020

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 ASSISTANT EDITOR Todd Taber, ttaber@nrha.org PRODUCTION EDITOR Hans Cummings, hcummings@nrha.org GRAPHIC DESIGNER Autumn Ricketts WEB DEVELOPER 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

“I added glass-block windows to my basement to improve energy efficiency and security.”

NRHA BOARD OF DIRECTORS

2

At NRHA headquarters, there is a team of dedicated people who work every day to uphold the association’s mission. In this space, we’ll ask a few of them to answer a question of the month so you can get to know us a little better.

EDITORIAL, DESIGN & PRODUCTION

“We have a three-season screened-in porch that overlooks our wooded backyard.”

Dave Gowan Vice President of Finance & Business Services

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 TRAINING MANAGER & EDITOR Jesse Carleton, jcarleton@nrha.org

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year.

All other countries $100.00 year. (Air Mail $60.00 year additional).

Single copy $7.00. The Annual Report issue can be purchased for $30.00.

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

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

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

All editorial contents copyrighted 2020 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher.

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

REPRINTS: For price quotations, contact the Editorial Department at 317-275-9400 or fax requests to 317-275-9403. Printed in the USA.

CIRCULATION DIRECTOR Richard Jarrett, 314-432-7511, Fax: 314-432-7665

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Contents MARCH 2020 | VOLUME 218 | ISSUE 3

“We want people to know we’re in this community and we care about it deeply.”

—Steve Patterson, Central Valley

Departments On the Web . . . . . . . . . . . . . 06 Editorially Speaking . . . . . . . 08 Taking Care of Business . . . . 10 NRHA News . . . . . . . . . . . . . 12 Trends . . . . . . . . . . . . . . . . . 20

32

New Products . . . . . . . . . . . 22

COVER STORY

Through the Grapevine Central Valley president Steve Patterson adapts to changing laws, pro builder needs and local vineyards as he grows his business in Napa, California .

Discover the growth plan for the 65-year-old company and how Patterson creates fertile community connections .

38

4

CATEGORY SPOTLIGHT

52

SUCCESSION PLANNING

Serenity and Sustainability

Take Some Good Advice

There are simple changes anyone can make to enhance ambiance and make bathrooms more eco-friendly .

Discover some solutions you can recommend so your customers can accomplish both goals .

When transitioning your business to new ownership, it’s important to seek the advice of experts . Read these questions you should ask to find the advisers who are the best fit to lead your business through its next steps .

46

H1 SPECIAL ISSUE

CATEGORY

Sleigh the Season

Challenge the Status Quo

Some of your customers may have only recently taken down their trees and their twinkle lights, but it’s already time for you to prepare for the holidays . Take a peek at some of the trends that are coming up for the most wonderful time of 2020 so you can create a magical customer experience .

Discover new opportunities for your company to break out of business as usual in this edition of High Performance Retailing . Check out new data from Kantar how growth opportunities come from unexpected places . Plus, see how Friedman’s Home Improvement is streamlining operations with technology .

HARDWARE RETAILING | March 2020

Checkouts . . . . . . . . . . . . . . 30 Newsmakers . . . . . . . . . . . . 72 Last Word . . . . . . . . . . . . . . . 74

On the Cover In Napa, California, Central Valley president and CEO Steve Patterson is growing his business alongside his community .

Photo by Whitney Daulton

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On the Web OPERATIONS

Grow Your International Garden Book your plane ticket for Cologne, Germany, to attend spoga+gafa 2020, the international lawn and garden trade show. Before you pack your bags, learn about trends you’ll see at TheRedT.com/spoga-gafa-2020.

Browse highlights of the upcoming event on Page 74.

2,100+ 2.4

More than 41 million people in the U.S., or 14% of the population, speak Spanish.

Source: U.S. Census Bureau

exhibitors from 61 countries

OPERATIONS

million square feet of exhibition space

Talk the Talk Overseeing a growing building materials supplier in California requires Central Valley president Steve Patterson to find new ways to engage customers. Take a look at how his company is speaking directly to its customer base with bilingual signage and region-specific translations at TheRedT.com/spanish-signage.

CATEGORY

Sustainability Is Fun Teach the next generation of DIYers how to save water and energy using these kid-friendly resources from the EPA. Check out the guides at TheRedT.com/sustainability.

PODCAST

What’s Your Plan Now?

OPERATIONS

Let’s Get Festive Holiday decor means more than Christmas trees and twinkling lights.

Get inspiration on how independent home improvement retailers across the country are putting their best foot forward ahead of major holidays by visiting TheRedT.com/holiday-setup.

6

HARDWARE RETAILING | March 2020

WaterSenselabeled toilets can reduce water usage by

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Gary Pittsford, president and CEO of Castle Wealth Advisors, explains the team you’ll need on your side as you plan for the future of your business. Stream the episode in full at TheRedT.com/pod.

Stay Connected @HardwareRetailing @hardwareretail

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Editorially Speaking

When the Goal Doesn’t Stick We’re Here to Help If Your 2020 Resolution Fell Through

A

few years ago, instead of choosing one New Year’s resolution, my husband decided to have a new resolution for each month of the year. From limiting screen time to trying a vegetarian diet, his goals ran the gamut.

I didn’t set any goals for myself, but I did join him on some challenges that I thought would push me out of my comfort zone, like cutting down on sugar.

Those first two weeks without sugar were hard, especially when I was surrounded by candy bars at work and Starbucks drive-throughs around every corner.

But once I got over that hurdle, I stopped craving those snacks and I could function without a caramel macchiato in each hand. When I first started the challenge, I didn’t think it would be possible, but my sweet tooth actually significantly diminished.

Now, this column isn’t a manifesto about the evils of sugar or corporate coffee chains. Shortly after the month ended, I indulged in sugar again, and coffee continues to be a regular part of my routine (especially now that I have a toddler at home).

And I’m not alone in my return to normalcy. According to a Nielsen study, about one-third of New Year’s resolutions don’t stick past January and less than half make it to summer.

Even though I didn’t stick with my goal long term, that was never my plan. I wanted to challenge myself to try something new for 30 days, and I actually went past that by a few weeks. And even though I’m back on the sugar bandwagon now, I do know it’s possible for me to make challenging lifestyle changes if I decide I want to try something new again in the future. I don’t consider myself a failure.

I encourage you to apply the same philosophy to your business ventures. If you did set a New Year’s resolution and you’ve since abandoned it or couldn’t make it part of your routine, don’t view it as a failure. See it as something

you tried and it didn’t work the first time. Figure out why it didn’t work, readjust and try again when the timing is right.

If you didn’t set a resolution, then take the opportunity to create small challenges for yourself. Think about an initiative or change you’ve wanted to make in your operation, and test it out.

Set up an Instagram account for your business and challenge yourself to post every day for 10 days, or take the next step to kick off that 90-day training program you’ve been planning.

All change takes preparation and support, and the North American Retail Hardware Association (NRHA) is focused on providing both of those things to help you become a better, more profitable operator. From leadership development and training to human resources and even health insurance, there are solutions available to help you improve your business. Head to nrha.org to find the right options for you.

Another powerful tool we have with Hardware Retailing is the ability to share your success stories.

If you want to share your path to sticking to a resolution—or not sticking and it ending up OK anyway—I know your peers would love to hear about it. Send me a note to tell me what strategies worked for you so other retailers can learn how to refocus when things don’t go as planned.

Now, it’s time for my next cup of coffee, and I’m not ashamed to report that I’m going to grab some candy from the office bowl on the way.

“If you didn’t set a resolution,

then take the opportunity to create small challenges for yourself. Think about an initiative or change you’ve wanted to make in your operation, and test it out.

8

HARDWARE RETAILING | March 2020

”

Melanie Moul Managing Editor | mmoul@nrha.org

SINGLE-SOURCE success.

DO IT BEST IS GILLMAN HOME CENTER’S POWERFUL SINGLE-SOURCE PARTNER.

“Do it Best gives me a single-source

Industry award winner Charlie Gillman built his thriving, multi-location home

I need to succeed.”

center business by serving his DIY and pro customers through the convenience of a single source—providing the hardware and building materials they need, when they need them. A commitment like that demands a partner who understands his business model. As the largest single-source, pro LBM and hardlines wholesaler in the industry, Do it Best is a perfect match.

Charlie relies on the streamlined ordering process, strategic purchasing power, and vendor and mill relationships Do it Best provides to keep all of his locations stocked with inventories of in-demand, high quality brands. Additionally, the Do it Best LBM Total Solution approach ensures that Charlie is able to deliver everything his contractors need—on time and on budget. He even turns to the Do it Best Retail Performance and Signature™ Store Design teams to help him get his newest locations up and running quickly and worry-free.

» Partner with Do it Best and find your single source for success.

Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestretail.com.

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Taking Care of Business

Put Down the Turkey Sandwich Some Change Will Do You and Your Business Good

I

once knew a guy who ate the same thing for lunch every day. He’d have a turkey and cheese sandwich, a bag of Lay’s potato chips, another bag of carrot sticks— all washed down with a Coke.

On the surface, there is absolutely nothing wrong with this.

In fact, it sounds like a pretty solid lunch. It’s tasty, it’s moderately nutritious and it’s pretty reliable.

The only problem I see eating this same lunch day after day, month after month, year after year, is that you miss out on the other possibilities that are available to you. You might have been a huge fan of pastrami on rye or hummus and pita, but because you never deviate from your devotion to turkey and cheese, you will never know.

I kind of think the same principle applies to your business. While you might mix up your daily lunch menu, I know a lot of retailers who do the same things every year when it comes to running their operations. They create a budget in November (with a guess at what their growth might be), they go to their two wholesaler markets every year, hold the same events every year, and at the end of it all, they probably post a modest profit.

Like my white bread-addicted colleague, there’s really nothing wrong with that approach. It can be a pretty solid plan for your business. It’s responsible, it produces modest profits and it’s pretty reliable.

But what are you missing?

What opportunities are out there that you might be overlooking because you are stuck in your routines?

There is no doubt a business can get by on the basics.

Doing the same thing year after year can work—for a little while. In today’s business environment, however, when your competition (like Home Depot, Amazon, Wayfair, Walmart) is anything but content to do the same thing, how long can you go on operating with a narrow perspective?

Take for instance the National Hardware Show that’s coming up May 5-7 in Las Vegas. If you haven’t made a trip to this event in the past, now is an ideal time to venture outside your comfort zone.

The National Hardware Show is the perfect opportunity to break out of your business rut. Not only are you likely to see a lot of products that might help you differentiate your operation, but you will also have the opportunity to talk to other independent retailers, hear new ideas and broaden your horizons.

During the National Hardware Show, we also host the NRHA All-Industry Conference, which is designed to bring together independent retailers from all across North America to learn from one another.

This year’s conference theme is Industry Disrupters. Our two keynote speakers are Do it Best president and CEO Dan Starr and Kevin Hancock, the president and CEO of Hancock Lumber in Maine.

(To learn more about these speakers and their presentations, head to nrhaconference.com.)

So, if you’re tired of eating those turkey sandwiches, the best way to disrupt your daily routine might just be trying something new and planning a trip to the National Hardware Show and NRHA All-Industry Conference, the pastrami and rye of the hardware industry. (I didn’t even charge them for that tagline.)

After all, a little change just might be the healthiest thing you can do for your business.

“What opportunities are

out there that you might be overlooking because you are stuck in your routines?

10

HARDWARE RETAILING | March 2020

”

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

NRHA News

NRHA Honors Moran With Creation of Best in Class Award

I

Marcus Moran Jr., former Aubuchon Hardware CEO, committed to educating and encouraging the next generation of home improvement retailers until his death in December. To honor his commitment, NRHA created the Marcus Moran Jr. Best in Class Award of Distinction, which is given to outstanding students in NRHA’s Retail Management Certification Program.

Hear From the Students

12

Corinne Courtney Nailed It! Hardware Washingtonville, NY

“I’m new to this industry, and the information I learned was priceless. When I heard who Marcus Moran was and what he did for this industry, and how he gave back, it felt extremely special to what I’m trying to do with my hardware store and in my community. Marcus Moran definitely sounded like someone I would have wanted to know.”

Robin Smith Petersburg Hardware Petersburg, IN

“It is very rare to find myself speechless. Never did I imagine I would receive a distinction with so much prestige. When Josiah was speaking about Marcus’ commitment to his employees, community and the hardware industry, I felt so very proud that I am part of something so much bigger.”

HARDWARE RETAILING | March 2020

n 2020, the North American Retail Hardware Association (NRHA) will honor the top student in each class of the NRHA Retail Management Certification Program (RMCP) with an award of distinction bearing the name of former Aubuchon Hardware CEO Marcus Moran Jr., who died in December.

Moran was involved in the initial design of the program before it launched in 2013, and he also served as an RMCP instructor.

“Marcus was known for his commitment to excellence, his willingness to share best practices and his passion for continued learning, and he was instrumental in helping us launch RMCP,” says Scott Wright, executive director of NRHA’s Retail Leadership Institute. “For all he has done, in 2020, we will be honoring the top student of each class with the Marcus Moran Jr. Best in Class Award of Distinction, which can be awarded to any student.”

“This award is very fitting,” says Josiah Gates, vice president of Aubuchon Hardware. “Marcus began his career as a professor at local community colleges, and he ended his career at RMCP, so to have an RMCP distinction in his name is a touching tribute to somebody who always wanted to further education.

He loved to give back to people.”

Recipients of this distinction will be handpicked by NRHA’s program administrators and Aubuchon Hardware executives based on the student’s performance in RMCP, their enthusiasm for learning and networking and for work completed during the semester on their business improvement project.

Corinne Courtney from Nailed It! Hardware and Robin Smith from Petersburg Hardware attended the Fall 2019 RMCP after being awarded a Marcus Moran Jr. RMCP Scholarship, a program launched by NRHA in 2017 that covers half of the recipient’s tuition to attend the class. Wright says they became the inspiration for this distinction moving forward.

“Robin and Corinne were leaders in the classroom and were exemplary in their enthusiasm for the course,” Wright says. “Marcus would have been so proud of their efforts. So we decided to also include this award of distinction in honor of Marcus moving forward.”

For more information, visit nrha.org/rmcp.

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NRHA News

Tune In to Hardware Retailing ’s Latest Podcast Episodes Listeners of Hardware Retailing’s two podcast series “Tell Me More…” and “Taking Care of Business” have much to look forward to in 2020 with new episodes and special guests. So what can listeners expect for the rest of 2020? Subscribe or listen to the podcasts at TheRedT.com/pod.

TELL ME MORE...

TAKING CARE OF BUSINESS

On this podcast, NRHA retail outreach coordinator Renee Changnon talks to retailers from across the U.S. and Canada. They discuss their challenges, successes and the realities of working in the independent hardware industry.

“I enjoy having the opportunity to speak to retailers from all walks of life, different locations and wholesale affiliations to show that ultimately, we’re stronger together,” Changnon says. “Every retailer I have talked to has a unique story. No matter how they got into the industry, they all are working to keep it strong and vibrant, which is inspiring.”

NRHA executive vice president and Hardware Retailing executive editor Dan Tratensek interviews industry experts, executives and thought leaders to get insights into where the industry, consumers and retail in general might be headed.

“The goal of this podcast is to take some of those one-on-one conversations that we get to have with industry leaders and experts and let the rest of the industry listen in,” Tratensek says. “Hopefully, our podcast gives listeners a better understanding of where things might be headed while at the same time giving them a better, more casual insight into some of the people who are driving those changes.”

Future Episodes • Joe Franquinha of Crest Hardware & Urban Garden Center in Brooklyn, New York • West Coast Cruisin’ Road Trip featuring various retailers

Future Episodes • Rich Russo, industry vice president of the National Hardware Show • Boyden Moore, president and CEO of Orgill

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NRHA News

NRHA All-Industry Conference to Focus on Disrupters

T

he NRHA All-Industry Conference gives independent retailers a once-a-year opportunity to explore the industry beyond their wholesaler market and regional meetups. The conference takes place this year May 5-7 in Las Vegas in conjunction with the National Hardware Show.

Spend three days networking with a variety of independent channel partners, attending seminars and discovering new products.

This year’s conference theme is “Industry Disrupters: How Today’s Leaders Are Winning the Retail Game.” Discover how independent retailers are reacting to disruption in retail or how they are creating it in their own markets to remain competitive.

The two keynote presentations take on this theme. Put these speakers on your calendar so you don’t miss their insights into how disruption can be the key to success. Book your flight, and then head to nrhaconference.com for the latest details.

KEYNOTE PRESENTATIONS Tuesday, May 5, 10 a.m.

How Independents Are Still Disrupting, a Conversation With Dan Starr Do it Best president and CEO Dan Starr will talk with NRHA’s Dan Tratensek about the opportunities there are for independents to innovate, compete and win. Attendees will understand the value of the independent model and how the most successful retailers stay relevant through disruption.

Wednesday, May 6, 10 a.m.

Employees First: Disrupting Assumptions for More Loyal Customers and Stronger Sales Hancock Lumber CEO Kevin Hancock discusses the social and economic benefits of creating an employee-centric company. Hancock explains how starting the flywheel of corporate success with the employee experience creates enhanced results for customers, communities and corporations.

Follow NRHA on Instagram @nrha_official for updates and live coverage at the event.

Make it Personal

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March 2020 | HARDWARE RETAILING

15

NRHA News

Trainer’s Corner: Faucet Add-on Sales

H

omeowners looking to change the look of a kitchen or bathroom may choose to swap out their old faucet for an updated style. Your employees can best help customers by answering questions on how to complete the project and suggesting potential add-on sales.

These add-on sales will boost the transaction size, typically with high-margin items. Having the proper tools will also make the installation easier, resulting in a satisfied customer.

This month’s Trainer’s Toolbox lesson, “Faucet Add-on Sales,” walks employees through some of the common add-on items you can potentially sell with every new faucet. This free guide is available at nrha.org/trainers-toolbox. Download the PDF to use in a staff meeting, or ask employees to view it on their own.

Make sure your employees understand how to use each of the necessary tools in a faucet installation. One great way to get that training, along with an understanding of the importance of add-on sales, is to watch “How to Replace a Kitchen Faucet” from NRHA’s Project PRO training series.

This course is available to NRHA Training Members. Call NRHA today at 800-772-4424 to sign up and learn more.

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V/H LOG SPLITTERS | HORIZONTAL LOG SPLITTERS | TRACTOR MOUNT LOG SPLITTER | SKID STEER LOG SPLITTER

KISCUTTER™ SOD CUTTER Cutting sod has never been faster (or easier)!

The revolutionary lightweight design of the Kiscutter allows it to cut up to 9,000 square feet per hour. It is the most maneuverable, easy-touse sod cutter on the market. And when you purchase Turfco Rental equipment - you can easily call for the replacement parts you need.

Iron & Oak products are built solid with innovative designs and exclusive features to provide you with years of reliable service.

IRONANDOAK.COM/HRM | (866) 281-4509

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

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

800.444.7313

fastenerconnection.com

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 Retail Sales (Building material and garden centers; in millions)

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

150

DEC

NOV

OCT

SEP

AUG

JUL

JUN

MAY

APR

MAR

$20

60

FEB

$30 JAN ‘19

DEC

NOV

OCT

SEP

AUG

JUL

MAY

APR

JUN

90

MAR

JAN ‘19

120

FEB

$40

$10

30

Existing Home Sales

Housing Starts

600

500

(in thousands)

400

300

200

100

JAN ‘19

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

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

20

HARDWARE RETAILING | March 2020

DEC

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New Products Alarmed Safe Available in three sizes, Yale’s solid steel Alarmed Value Safes feature a built-in 130 decibel alarm, an antibump cylinder, digital keypad entry with 100,000 possible combinations and backup keys.

They’re suitable for a range of safe storage uses, from laptops to family photos, important documents, heirlooms and more.

Yale 855-492-0505 or yalehome.com

Countertop Vending Machine The World’s Smallest Toy and Candy Tower vending machines by Brand Vending Products offer new opportunities for retailers to increase their average transaction size. These new towers are the next generation of vending dispensers using sealed containers.

They vend from $0.50 to $1.00 and can take tokens.

These machines fit on a countertop or on a stand and are manually operated with no need for electricity.

Handheld Puller

Brand Vending Products 800-967-3048 or brandvendingproducts.com

The Versi-Tugger™ is a handheld cordless puller from Greenlee that works with most cordless drills to provide 1,000 pounds of peak pulling force. The universal pulling head attaches to any conduit from ½ inch to 4 inches in diameter, and the 17-inch rotatable boom adjusts to fit each job with three length positions to choose from. The boom can be extended with 1 inch rigid conduit.

Greenlee 800-435-0786 or greenlee.com

Galvanized Pet Dishes Behrens’ Galvanized Steel Pet Dishes won’t leach harmful chemicals into your pet’s food. They’re chewproof, easy to clean and are available in three sizes.

Behren Mfg. 800-657-4939 or behrensmfg.com

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.

22

HARDWARE RETAILING | March 2020

Cabinet Organizer The Cabinet Caddy fits standard cabinets, or can be used on the countertop. The modular design is intended to function side-by-side to create a “library” of organized items.

Each unit holds over 20 bottles and no assembly is required.

Store It! 512-657-0164 or storeitcaddy.com

Retrofit Shower System The Spectra Versa Retrofit Shower System uses existing plumbing to convert your shower space into a spa-like experience. It is available with a fixed or rain showerhead and both include a handheld feature. The Easy Glide Holder and adjustable height are ideal for families, allowing each user to customize their shower experience.

American Standard 800-442-1902 or americanstandard.com

“Mason Cash has been making great

quality bowls that have stood the test of time, but they also keep improving their bowls with modern touches.

”

—Kandis Albertson, Billings Hardware & Garden Center

Stoneware Mixing Bowl Lid Organizer The StoraLid by YouCopia brings organization to food container lid collections cluttering cabinets.

Compartments fit lids of various shapes while adjustable dividers let homeowners customize spaces to keep lids upright.

Mason Cash mixing bowls are made from chip-resistant earthenware, making them heavy enough to stand when mixing, but light enough to hold in one arm. The distinct patterned exterior is designed to help bakers grip and tip the bowl.

Mason Cash rayware.co.uk

YouCopia 888-973-9288 or youcopia.com

March 2020 | HARDWARE RETAILING

23

New Products

All-Purpose Cleaning Wipes Gourmac’s Pizza Slice ‘n Serve is a multifunction pizza wheel that can slice and serve pizza. The stainless steel blade is suitable for thin and thick crusts, and the tongs unlock after slicing for serving. The Pizza Slice ‘n Serve is dishwasher safe.

These nontoxic wipes from Method Products clean with naturally derived ingredients. They wipe up grease and grime and are compostable in municipal composting facilities.

Gourmac 800-243-7700 or gourmac.com

Method Products 866-963-8463 or methodhome.com

Pizza Slicer and Server

American Made & Profitable For o Over O 80 Years rs

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

Ask for our Product Catalog which provides product descriptions and size specifications.

Toll Free: 855-966-AJAX (2529) www.ajaxwire.com ajaxwire@aol.com 119 Bloomingdale Road,Hicksville,NY 11801 24

HARDWARE RETAILING | March 2020

Decorative Knobs Top Knob’s Ellis Collection Telfair Series knobs are a modern reinvention of designs influenced by the historic architecture of Savannah, Georgia. The hardware is zinc alloy and available in brushed satin nickel, polished chrome, flat black, honey bronze and ash gray finishes.

Top Knobs 800-499-9095 or topknobs.com

“Our customers like it because they can watch the crabgrass turn white, so they know it is working.

—Ken De Bruyn, De Bruyn Seed Store

”

Crabgrass Herbicide Roundup® for Lawns Crabgrass Destroyer kills crabgrass and other grassy weeds down to the root for northern lawns.

Each bottle treats up to 1,000 square feet and works within four to seven days.

It includes an attached extended comfort wand for easy and precise application.

Roundup 866-324-2647 or roundup.com

Digging Shovel The Fiskars® Pro D-handle Digging Shovel is made from heavy-gauge steel for digging, chopping and prying.

The D-handle keeps your wrist in a neutral position, reducing strain.

It features an extruded aluminum handle and double-bolted connections for strength and durability.

Fiskars 866-348-5661 or fiskars.com

March 2020 | HARDWARE RETAILING

25

New Products

Biscuit Cup Roaster The Wolf’em® Stick is a biscuit cup roaster cooking head attachment that allows campers to cook biscuit cups over the campfire using store-bought biscuit dough.

An easy-turn rotary handle assists in even roasting and the backward-facing roasting fork keeps food secure while roasting.

It features solid hardwood and stainless steel construction for durability in outdoor environments and includes a hot dog and marshmallow roasting fork attachment.

Wolf’em 801-556-1439 or wolfem.com

Down-Filled Clothing Cleaner Nikwax’s Down Wash Direct® is designed specifically for hydrophobic and regular down-filled clothing and gear. It restores water repellency and maintains down quality and insulation.

Nikwax 800-563-3057 or nikwax.com

26

HARDWARE RETAILING | March 2020

Reusable Shopping Bag Lotus Trolley Bag’s patented reusable shopping bag allows shoppers to organize their products.

They can hold 50 pounds in each bag and feature pockets for eggs and wine bottles, an insulated bag and mesh bottoms.

Lotus Trolley Bag 760-688-9962 or lotustrolleybag.com

Smart Lock Kwikset’s Halo Touch Smart Lock features fingerprint access technology and is Wi-Fi enabled. Available in traditional and contemporary styles, Halo Touch Smart Locks work over a home's existing Wi-Fi network; no smart home hub required.

Users can manage the lock from anywhere using the iOS or Android Kwikset app.

Kwikset 800-327-5625 or kwikset.com

New Products

“Our customers

frequently tell us that Lignetics hands down performs better than any other pellets. Lignetics burn hotter and create less ash, which cuts down on maintenance of their pellet stove.

”

—J.R. Horn, General Manager, Prescott Valley Ace Hardware

28

HARDWARE RETAILING | March 2020

Wood Fuel Pellets With higher wood density and lower moisture content, Lignetics pressed wood fuel pellets deliver more BTU per pound than logs. They burn with fewer particle emissions and ash than cordwood. Wood fuel pellets create little to no creosote buildup and are a carbon-neutral substance.

Lignetics 800-544-3834 or lignetics.com

Work Boots Iron Age Footwear’s Reinforcer work boot features leather lea uppers pp and easy-scrape wedge outsoles made of polyurethane. polyurethane The included BootBed™ removable insole provides comfort for extended wear. exten Steel toe protection makes these boots suitable for steel stee workers, brick layers, concrete finishers, stone fitters and more.

Iron Age Footwear 877-753-2426

AMERICA’S BEST KEPT SECRET!

Clip-On Kneepads Special Operations Clip-On Kneepads feature ½-inch thick neoprene padding, Clip-Lock™ safety retainers, 1-inch hook and loop retention straps and 1-inch extra heavy-duty clips with coated teeth. The flexible rubber cap is stitched down to prevent debris entry. Adjustable straps allow a comfortable, secure fit without binding or cutting off circulation.

Dexter Meadow Enterprises 661-392-8769 or cliponkneepads.com

Old World Formula Furniture Polish

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Water-Resistant Toolbox Stanley®’s 28-inch FATMAX® Structural Foam Toolbox features a patented watertight seal to protect your equipment. It is ideal for carrying power tools, hand tools and medium to large items. It features a soft-grip handle and a V-groove with ruler on top of the lid to hold materials for cutting.

Stanley Tools 800-262-2161 or stanleytools.com

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29

Checkouts

Providing Compassionate Customer Service

T

Fletcher Slutman holds a portrait of his son, Christopher, who died while serving in the Marines. E.M. Herr Ace Hardware honored the Slutman family in a ceremony at the store.

he man shopping for a statue at E.M. Herr Ace Hardware was crying when he asked store manager Cyndi Maley for help. He explained what he needed and Maley’s tears began to roll, too. The man’s name was Fletcher Slutman and he was building a memorial garden in his backyard to honor his son, Christopher, who died in 2019 while serving in the Marines in Afghanistan.

Instead of telling Slutman the price of the statues, Maley bought one for him. Special events coordinator Susan Riehl overheard the story and bought him solar lights for the garden.

Supporting military families is built into the culture of the business in Columbia, Pennsylvania, Maley says. Staff members frequently take time to thank veteran customers for their service.

They also recognize veterans, firefighters and other public servants in a ceremony every October at the store and give a gift to a guest of honor.

“To us, all of them are heroes,” Maley says.

Maley and Riehl have planned the annual event for 10 years running, but had never had a guest of honor who was killed in action. In 2019, they asked if they could honor Christopher.

Slutman and his wife Mary hesitated due to the fragility of their grief, but agreed and brought a portrait of their son.

To honor Christopher, a local veterans organization played taps and provided a 21-gun salute. Slutman shared memories of his son. Military veterans, community members, store employees and a mother from American Gold Star Mothers, a group that supports women who have lost children in military service, joined in honoring the Slutman family.

“This event was emotional for all of us,” Maley says.

“It touched so many people outside the store.”

Plant Revivals Clinton Hardware in Clinton, Maryland, is offering a new service. The store now charges a small fee for a staff member to evaluate the health of customers’ potted plants, repot them, fertilize and treat the plants for any diseases and keep an eye on them for a few days to make sure they respond well to repotting. Customers are excited when they find out about the service and are impressed with the results, manager Belinda Billman says.

“When one customer came back to pick up her plants, she couldn’t believe they were hers,” Billman says.

“They were just gorgeous.”

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 | March 2020

Coming Up Roses Twice per year, Shafer’s Ace Hardware in Eureka, California, invites the county rose society to teach free seminars for customers about rose care.

Shafer’s Ace Hardware advertises the event and hosts it in its garden center, providing tables, chairs, rose plants and products to give away.

Nursery manager Darryl Aberbom asks employees to attend so they can see the hands-on pruning demonstrations and learn more about plants.

“We help keep our customer base strong by providing education in proper plant care techniques,” Aberbom says.

Cascading Paint Colors The ceiling over the paint department at Ambridge Do it Best Home Center in Ambridge, Pennsylvania, has an art installation the staff spent three months developing and hanging. Store employees took about 100 paintbrushes, dipped each one in a different paint hue, let them dry and then hung them from the ceiling in a colorful cascade.

“It’s like a waterfall of paintbrushes,” general manager David Strano says. “It’s a very good focal point in the department and it makes people realize that we’re different from other stores.”

HOLDS

700 + LBS THE ABSOLUTE STRONGEST DUCT TAPE THE ABSOLUTE STRONGEST DUCT TAPE Holds more than 700 pounds with a single loop of tape.

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T R All Rights T Reserved.

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E Extreme real-world test; tape not weight-rated g for towing g applications.

By Todd Taber, ttaber@nrha.org

Growing Season

A

t the helm of a business spanning three Northern California counties and three generations, Steve Patterson is searching for the perfect balance.

As his company honors 65 hard-won years, he shares what it takes to stay at the forefront of shifting legislation, the evolving demands of pros and finding new fields to grow.

Central Valley is a building materials supplier focused primarily on the needs of pro construction outfits, vineyard operators and landscapers. Named for the fertile agricultural area that includes California’s famed winemaking region, the company’s inventory, customer base and internal focus have adapted through the decades as the local market demanded.

In 1955, Patterson’s grandparents, Robert and Evy, founded the business. As the generations passed, the company celebrated new milestones, adding locations and growing deep roots in the region. Central Valley now counts 41 acres of inventory and 55 delivery trucks, making it a key home improvement player in the region, whose separate industries intermingle to promote tourism, real estate and retail in tandem.

The region’s wine industry is estimated to produce more than $9 billion in local economic activity, and serves as a major influence on the company's inventory, which has deepened and diversified over the years to meet customers' needs authentically.

A New Chapter Patterson knows retail success requires more than one iron in the fire. In January, Patterson was at the Pro Desk of his company's flagship Napa location, greeting employees by name and chatting with customers in Spanish.

Just one year removed from a defining event in the company’s history, Patterson is ready for a new chapter.

In late 2018, Central Valley acquired Foster Lumber, a full-service lumberyard with locations in nearby Fairfield and Vallejo.

Once the deal was final, the Central Valley collective grew to eight locations and extended its service area by hundreds of miles. To Patterson, the deal was a powerful reminder that growth requires precision and patience.

“We had been considering acquisitions as a way to grow our business for about eight or nine years,” he says. “It took a lot of good old-fashioned footwork, but pursuing the acquisition was the right choice for us.”

Patterson and his team set to work, developing a list of qualities they wanted from a potential acquisition. One defining feature of their ideal company to acquire was size.

Steve Patterson, president and CEO of Central Valley, says a recent acquisition brought new possibilities to his business.

March 2020 | HARDWARE RETAILING

33

Patterson says that as the economy and the wine industry recovered from the fallout of the Great Recession, mergers and acquisitions became more common in construction, but many larger operations were uninterested in purchasing smaller companies. He saw things differently.

“Smaller companies were more digestible to us,” he says.

“We could add value to smaller companies all while helping Central Valley grow. Acquiring a smaller company put us in new communities, added new products and introduced our business to new customers.”

Patterson decided Foster Lumber was the right addition for Central Valley’s future. Patterson had known the company’s previous owner for 20 years and says the cultures of the two organizations united seamlessly.

“When people talk about the success or failure of acquisitions, they’re talking about the merging of two separate cultures,” he says. “In the end, our companies had many more similarities than they had differences.”

Both companies were family-owned and -operated, which Patterson says was appealing to Foster Lumber’s former owner, who wanted to continue the company’s legacy, even as it transitioned owners. Foster Lumber now operates as a separate though wholly owned subsidiary of Central Valley and will celebrate its 100th anniversary later this year.

As Central Valley expands its presence in California through acquisition, Patterson says he remains open to new acquisition possibilities that fit the company’s objectives and priorities.

A New Vision for HR Patterson says hiring and training are critical for lumber and building material success in California, where the statewide unemployment rate has plunged to historic lows and finding long-term, qualified employees is challenging.

“The construction industry is still not building at the top end of production; we’re nowhere near construction levels from 2000 to 2006,” he says. “Yet in terms of workload, it still feels like it did back then. Our biggest challenge is finding and retaining employees.”

He says for many years, human resources at his company was devoted to administrative tasks like hiring and compliance. As the company emerged from the Great Recession and began to seriously consider how acquisition could begin a new era, Patterson wanted to take a more holistic approach to his company’s HR.

Central Valley primarily serves the needs of professional builders and local vineyard operators, but includes DIY assortments, too.

“We started considering it talent management as opposed to simple HR,” he says. “It can’t just be about finding employees; it has to cover what we do with them when they’re here. I wanted our HR to cover our hires from start to finish: Where do we find employees? How do we train them? How do we keep our employees growing? If you’re not growing, you’re dying.”

The company’s current vice president of human resources came from the tech world and incorporated some of that industry’s best practices into Central Valley’s operations.

Patterson also began a mentoring program that exposed new employees to areas outside their normal duties.

“It gave everyone a view of how our different departments work,” he says. “The program lets them develop empathy for what it’s like to do someone’s job. My goal was to make a new hire better at what they do by helping them understand how they interact with every other department.”

Central Valley undertakes salary benchmarking reviews every two years to ensure the company is offering fair and enticing compensation to draw talented workers in an increasingly competitive industry and corner of the country.

We could add value to smaller companies all while helping Central Valley grow.

Acquiring a smaller company put us in new communities, added new products and introduced our business to new customers.

—Steve Patterson, Central Valley

34

HARDWARE RETAILING | March 2020

Golden State Gridlock Patterson says doing business in California is at once a moving target and his sole focus. All small business owners face operational and legal obstacles, but in California, a state which itself is often at the center of political, economic and cultural flux, staying abreast of emerging legislation takes constant attention.

“One of the biggest challenges to doing business in California is staying on top of new regulations. In 2019, more than 2,500 bills were introduced. That quantity just doesn’t exist in other states,” he says.

In August 2018, just as Central Valley was in the midst of the Foster Lumber acquisition, new regulations concerning California’s Safe Drinking Water and Toxic Enforcement Act, better known as Proposition 65, went into effect. Under the new mandates, businesses must provide visible warnings about potentially harmful compounds found in many products—including a host of items on sale in most home improvement stores.

Many business owners, even if they support the legislation, find it difficult to interpret. Unless manufacturers operate predominantly in California, they ship products without Proposition 65-compliant warning labels, putting Patterson and other small business owners across the state in a difficult limbo. Small businesses can be fined as much as $2,500 per day per infraction, forcing retailers across industries to find new solutions quickly.

“Since Proposition 65 went into effect, we’ve really relied on local business organizations to help us navigate that terrain,” he says.

Every aisle in Central Valley’s stores includes prominent warnings about products, clearly identifying the potentially harmful materials so customers can make their own informed choices about the products they purchase.

Recently, tariffs on softwood and key building materials have also played a large role in how Central Valley does business. Though Patterson says rising lumber prices ultimately bring benefits to his business, they do create uncertainty in the market.

“When you do business in California, and in the building industry, there are so many things beyond our control,” he says. “We have to roll with the punches; we try not to concern ourselves too much with things we can’t control.

Rather, we focus on understanding how tariffs and other legislation will affect us on a day-to-day operational level.

We don’t want to be caught behind the eight ball.”

Despite the volatility tariffs have caused, Patterson and his team have to be resourceful to save customers money and provide the products they need.

“Central Valley sources much of its lumber from Washington and Oregon, so we were relatively insulated from Canadian softwood tariffs,” he says.

Recent trade uncertainty with China was a larger concern.

“We tried to keep as much extra product on hand as we could,” he says. The company used its five warehouses to store extra products, which has helped protect the company from rising costs through international tensions.

PRODUCTS ON THE VINE Central Valley has deepened its inventory to meet the needs of local vineyards.

Here’s an overview of some of their key products for these customers.

Pruning Supplies After grapes are harvested, vines must be pruned. The company carries a range of hand-pruning shears to prepare plants for the next growing season.

Erosion Control Bales of hay, jute netting and silt fencing help protect nutrient-rich soil from being swept away between the harvest and winter months.

Frost Protection Systems Frost damages buds, blossoms and fruit alike.

Overhead sprinkler irrigation systems minimize the effects of cool temperatures on crops.

Spray Equipment Backpack sprayers are used by vineyard workers to add nutrition to growing crops. Patterson says durability is a key sales driver for these products.

March 2020 | HARDWARE RETAILING

35

At Central Valley’s flagship Napa location, builders benefit from a drive-through lumberyard and a team ready to cut lumber to their specifications. The company has also started offering prefabricated walls to better serve its contractor customer base.

The Vineyard Vocation

CENTRAL VALLEY

BY THE NUMBERS Each year, Central Valley sells more than

36

1.4M

feet of PVC pipe

670

acres of trellising

42K

miles of vineyard wire

HARDWARE RETAILING | March 2020

Closer to home, Patterson says Napa’s winemaking industry has a powerful pull on how his company operates. Vineyards account for roughly 15 to 20 percent of his business, and he says they function much like regular contractor customers.

“We have farmers who are like remodelers or small contractors,” he says. “Then we have vineyard managers who are like subcontractors; they’re in charge of growing and protecting the crop. We also have direct relationships with wineries, which operate a lot like a general contractor and will have broader, more common construction needs.”

The company has been serving vineyards since the mid-1980s and now sells everything above and below ground in the rich fields: trellises, T-posts, PVC piping, irrigation systems and erosion control. Patterson says his company’s involvement with the profitable local industry fortifies Central Valley against national competitors.

“It’s a solution for the community we serve,” Patterson says.

“Listening to local needs is something independents do well: We localize our business to our market, which isn’t something the big boxes do at all. Serving the needs of the wine producers requires Central Valley to truly understand how they do business.”

That commitment to meeting customers’ needs takes personal resonance for Patterson, who spent three years working in Mexico and speaks Spanish fluently, allowing him to communicate with customers and employees alike.

“Part of my job is to connect with customers and employees authentically,” he says. “It’s a recognition of the reality of California and an acknowledgement that many trades are managed, owned and dominated by Spanish-speaking people.

If we’re in tune with our environment, we should offer products and services on an authentic level.”

The Pro Connection Central Valley stocks a full array of hardware, but staff and inventory are geared toward meeting pro building customers’ high-priority needs.

At each Central Valley location is the Pro Desk, a hub of activity where employees help pro customers plan large-scale products and order the materials they’ll need. It’s a way to offer comprehensive service to dedicated customers.

“The Pro Desk is project-focused,” Patterson says. “It’s less transactional than traditional retail; it focuses on people who may need to do special orders or match existing building materials precisely. The staff usually has prior building experience and can truly understand what our pro customers need to be successful.”

The Pro Desk helps Central Valley stay nimble, as employees manage project estimates, direct-to-site delivery and securing special pricing on more than 44,000 products when possible. Central Valley has also recently started offering prefabricated walls for pro builders, adapting as market demand dictates.

“The Pro Desk offers a new level of service to professional builders,” Patterson says. “It’s a long-running feature of the business, and it’s really what our customer base has said they need.”

Besides boosting sales, the hub serves an important role in developing and maintaining business with pro customers.

“Over the years, the pro customers have come to see Pro Desk employees as extensions of their business: people they know well and trust to be proactive and find solutions,” he says.

Fire in the Distance Alongside new legislation and rapidly refining customer needs, one of the chief variables business owners in California must contend with is the destruction caused by natural disasters, including wildfires.

Since December 2017, wildfires in the state have destroyed almost 1 million acres and caused at least 118 deaths, according to data from California’s Department of Forestry and Fire Protection. In 2017, three separate fires grew dangerously close to the Napa region, advancing and retreating around the community Patterson has sought to serve. He says the fallout from these devastating fires is inescapable and has a direct impact on how Central Valley operates in 2020.

“We’re seeing a lot of fire-related products spike in demand,” he says. “Wherever the fires strike, we see tremendous demands for fire-rated items in those areas.

California has a Wildlife Urban Interface regulation that stipulates any home close to areas susceptible to wildfires must meet certain building requirements, and we’re bringing in new products to keep homes and businesses safe.”

Patterson says new advances in time-tested products have led to remarkable innovations, including products that can sense burning embers and react to extinguish them quickly. Even as his company brings fire-prevention products to customers, Patterson says his team keeps a sharp focus on the finished product.

“People are investing in products that are maybe a little less traditional, but they really do safeguard homes and buildings,” he says. “These days, many of these products are designed to appear exactly like traditional options and not sacrifice the aesthetics of a home.”

On the Horizon Patterson says one of his key goals as a California business owner is giving back to the region that has supported his company’s multigenerational success.

In addition to its support of Habitat for Humanity and other organizations, Central Valley donates 2 percent of its profits to local families and affordable housing developments. What’s more, all full-time and nonseasonal part-time employees are given eight hours of paid time to volunteer in the community.

“The community has been so good to us,” he says.

“Our customers are our neighbors, so we don’t want to be a faceless corporation. We want people to know we’re in this community and we care about it deeply.”

As the Foster Lumber acquisition scales his company to new customers and communities, Patterson is also considering the future of the business and how to guide it successfully to the fourth generation.

Statistics on long-term family business survival are stark: Some estimates say only 12 percent of all family businesses survive into the third generation and only a fallow 3 percent will enter a fourth generation of ownership.

Central Valley has already beaten monumental odds, and Patterson plans to continue.

“There is a possibility of a fourth generation running Central Valley, but we’re not actively involved in that process yet,” Patterson says. “Of my seven kids, I have a son and daughter who have spent time in the business similar to how I did.”

No matter what the future looks like for Central Valley, Patterson says acquisition has taught him a key retail lesson.

“Growth is a process,” he says. “Sometimes when you least expect it, opportunities arrive and you have to explore those as they come.”

At Central Valley’s Pro Desk, builders and vineyard operators receive personalized support as they plan large-scale projects.

March 2020 | HARDWARE RETAILING

37

DROP BY DR

P

Help Your Customers Save With Sustainable Plumbing Solutions

By Jerry Rabushka

O

ver the last several years, homeowners have been given more options to customize their bathrooms into spaces that rival high-end spas. Changes and improvements in plumbing products have made it easier than ever for DIYers to bring paradise closer to home.

“When it comes to bathroom-related projects, DIYers are doing everything from simpler plumbing fixtures and fitting replacements to full-blown remodeling projects,” says Pete DeMarco, an executive from the International Association of Plumbing and Mechanical Officials (IAPMO Group), a nonprofit that

38

HARDWARE RETAILING | March 2020

specializes in developing standards for the plumbing industry. “Consumers are increasingly looking at their bathrooms as places of refuge and relaxation from their busy lives.”

Consumers are also more concerned with energy and utility cost savings, whether they are installing solutions themselves or purchasing a home with the upgrades already installed.

Learn more about trends in sustainable plumbing solutions on the following pages and see how you can serve customers looking to create an energy-efficient oasis inside their homes.

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Today’s DIYers Have It E-Z Plumbing Manufacturers International (PMI) is a trade association that represents companies that sell about 90 percent of all plumbing products across the U.S. PMI CEO and executive director Kerry Stackpole says, thanks to new technology, there are a lot of exciting developments in both style and sustainability.

Stackpole says when it comes to plumbing upgrades, the average DIYer will most likely be looking to replace a showerhead or a faucet, but you’ll find a few who are looking to put in a toilet, even though those are more often installed by a pro. A lot of this, he says, is due to the innovation coursing through the pipes of the plumbing manufacturing industry, for example standardized threads for showerheads.

“You don’t have to sweat a pipe anymore,” he says. “These are projects DIYers can efficiently handle themselves.”

Homebuilders are also taking sustainable products into consideration, Stackpole says, which give occupants of new construction a head start on energy savings.

“Homebuilders understand that people are interested in utilizing natural resources responsibly, so a lot of them are installing WaterSense fixtures,” he says.

“WaterSense products are certified by the U.S. EPA to be 20 percent more efficient than regular fixtures, which can lower your utility costs and shrink your footprint in terms of use of natural resources.”

Stackpole says one national building company installs about 600,000 WaterSense products in new homes every year. While some customers might not see energy conservation and water conservation in the same light, Stackpole says it takes gas or electric energy to keep the hot water hot, so the less water used, the less energy it takes.

40

HARDWARE RETAILING | March 2020

Head to TheRedT.com/plumbing for a learning activity to get kids interested in sustainable plumbing solutions and ways to save resources.

“WaterSense is a labeling program that is run and managed by the EPA and works in a similar manner to the Energy Star labeling program for products that consume energy,” DeMarco says. “The EPA works with the industry and other stakeholders to develop performance specifications that go beyond the minimum product standards in order to deliver great performance as well as water and energy efficiency to consumers.”

Efficient Yet Effective Changes in water usage standards give you a chance to offer customers significant improvement even over the plumbing of 10 years ago.

“The biggest advancements have been in toilet design and performance,” DeMarco says.

“In recent years, manufacturers have been able to apply new product tools, such as computational fluid dynamic (CFD) platforms, that allow them to develop well-performing models.”

DeMarco says new toilets are significantly more efficient with water than older toilets.

“Today’s toilets flush better than older systems that used almost three times as much water,” DeMarco says. “For the most efficient and best performing models, I recommend DIYers look for WaterSense-labeled models. They get the job done in one flush, conserve huge amounts of water and save money.”

Continued on Page 44

Don’t Fixate on Fixtures Aside from updating fixtures to more efficient models in an effort to be more environmentally friendly, eliminating paper products and installing reuse systems is another way to go green.

Stackpole says a bidet can significantly reduce or even eliminate the need for toilet paper, and bidet seats that attach to the top of the toilet are becoming increasingly popular. New technology also allows households to install water reuse systems.

Tankless water heaters can last up to 20 years, nearly twice as long as traditional models.

“Some homebuilders are making reuse systems available, and they may even be mandated in some areas,” says Stackpole. “These systems reuse water that might normally just drain out of the sink or shower. The water is filtered and recirculated back to use for tasks such as watering the lawn or washing the car. They’re bound to change the way we think about water usage.”

After the upfront investment, many of these installations will pay for themselves quickly.

The U.S. bidet market is expected to grow 15 percent by 2021 up to $106 million.

Sources: U.S. Department of Energy; BRG Building Solutions report, 2018

March 2020 | HARDWARE RETAILING

41

Flushing Inefficiency Down the Drain Many consumers may think their older bathroom fixtures work just fine, and while they may get the job done, Pete DeMarco of the IAPMO Group says they use a lot more water than newer fixtures. If a customer comes in asking how they can save money on their water bill, a simple suggestion would be to replace their showerheads or faucets, while an advanced solution is to replace their inefficient toilet. Here’s a breakdown of the efficiency standards for toilets and what cost savings installing a modern toilet could equate to.

Toilet Efficiency By the Numbers Before 1994

(Energy Policy Act of 1992)

3.5 to 5 gallons per flush (GPF)

Today

1.6 GPF maximum

1.28 GPF WaterSense-certified

The Fixtures Builders Are Installing The National Association of Home Builders (NAHB) recently surveyed builders from across the country about their installation of toilets that are more efficient than the federal standard. See the results here and use the data to talk to your pro customers about what options they want and what homeowners are requesting in new builds when it comes to efficient fixtures in the bathroom.

Did you install any plumbing products more efficient than the federal standard?

34%

66%

Were the above-standard plumbing products you installed WaterSense labeled?

59% 0

25

41% 50

75

100

Yes No

WaterSense-labeled models can reduce toilet water usage by

20% to

60%

“It feels good to help customers with clean and odor-free solutions.”

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Source: epa.gov March 2020 | HARDWARE RETAILING

43

Continued from Page 40 Showerheads also offer consumers an amazing array of options; you can escape the world into a tropical rainstorm, a misty morning or other nature-inspired features just by stepping into the shower.

Stackpole says these features are some of his favorite plumbing developments.

“They’re designed to use less water, but still deliver the feel of a full shower by engineering the size of the drops of water coming out of the shower head,” he says. “Now we have options like misting or rainwater showerheads that mimic the feel of those conditions. The beauty here is that consumers don’t have just one choice—they have nearly 30,000.

There’s a huge number of products—showerheads, toilets, faucets and more—out there that help people be efficient.”

DeMarco says handheld showerheads are also an option for consumers looking to save water and energy.

“They’re great, not only for showering, but for easier cleaning of bathtubs and shower compartments and also for bathing pets,” he says. “They deliver the same water efficiency levels that fixed showerheads provide.”

Does Your Product Mix Hold Water?

More products than space to put them means you need to be strategic about the selections you have on the salesfloor. Stackpole recommends stocking a cross-section—for example, stock products at the major price points, styles and colors so customers get a good idea of what they can choose from.

“Having both an inexpensive and a high-end faucet helps consumers understand the range of products,” he says. “You can’t stock all of them but knowing what’s available is key.”

According to Stackpole, black is the new chrome, so having this option will alert savvy customers that you’re on trend.

If you don’t have space on your salesfloor for every model, clearly communicating your ability to complete special orders is key to making the sale.

Through signage and knowledgeable staff members who understand the special-order process, you can serve nearly any customers’ needs.

“Where retail space is at a premium, it’s best that hardware retailers do the research and feature the ‘best in category’ offerings,” Demarco says.

“The advantage independent stores offer is a higher level of knowledge about the products they sell and the ability to help DIYers prepare for and try to mitigate common challenges that are encountered with plumbing projects.”

He says customers looking for sustainable products will most likely purchase products made by companies that provide clear information about their commitments to the environment and sustainability in their manufacturing processes, so having signage in your plumbing department showing sustainable options is crucial.

Training employees to answer questions knowledgeably and understand the full scope of projects will help your store stand out.

“An important selling point is that they’ll make fewer trips back to the store to get things that they should have been told they’ll need during the initial purchase,” DeMarco says. “This is where independent stores can really shine.”

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DECK YOUR HALLS

By Heather Kauffman-Peters

2020 Holiday Trends and Why You Should Be Planning Now

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Although spring is just beginning, you finished plans for tulip caretaking and birdhouse building months ago.

In retail, it’s crucial to plan seasons ahead, which is why holiday decor is a large segment of many wholesaler markets in the spring.

Home decor made up 21 percent of gift sales over Thanksgiving weekend in 2019, according to the National Retail Federation’s (NRF) Annual Thanksgiving Holiday Consumer Survey.

Nearly one-quarter of sales is significant, and that doesn’t include what consumers spent on holiday decor for themselves or what they spent during the ramp up to one of the biggest spending weekends of the season.

The season is larger than gifts, though. Independent home improvement retailers have an opportunity to pare their stock of

holiday goods, no matter how many SKUs they bring in, to create a complete holiday experience for customers.

“I think independents can be too cautious sometimes,” says Pat Sullivan, owner of Sullivan Hardware & Garden Center, which has three locations in the Indianapolis area.

“You’ve got to stand for something— what are you a leader in?”

In 2005, Sullivan asked himself that question when he was looking to try something new at the 66-year-old business that his parents, Robert and Rita Sullivan, founded.

“Where we are, we couldn’t just be a hardware store because we’re ringed with big boxes,” says Sullivan.

“So I picked five things I wanted to be a leader in: live trees, artificial trees, fireplaces, mid-priced patio products and grills. Almost 15 years later, we are leaders in all but one

“I think independents can be too cautious sometimes. You’ve got to stand for something—what are you a leader in?

—Pat Sullivan, Sullivan Hardware & Garden Center of those categories. We failed with fireplaces for some reason, but the others took off.”

That first year, Sullivan spent $70,000 on artificial trees. He wanted to offer over 70 different styles because the big boxes didn’t offer as many. His goal was to offer top quality and variety.

Trees, Trimmings and Trinkets 3 Holiday Decor Trends You Should Know for 2020 Based on data collected by the National Christmas Tree Association (NCTA) in 2017 and 2018, Pat Sullivan may have chosen the most opportune time to become a leader in artificial trees.

According to NCTA, artificial tree sales have recently started climbing, from 21 million units sold in 2017 to 23.6 million in 2018. Combine that with the latest census data from the U.S. Department of Agriculture that indicates aging

farmers are leaving tree farming, and one could conclude that the artificial tree business has more potential than ever before.

In 2020, the supply side may drive trends in holiday decor just as much as consumer demand.

With this new data in mind, here are the latest trends in holiday decor driven by interior design trends, pop culture influences and consumer favorites.

DID YOU KNOW?

21M

units of artificial trees sold in 2017

Source: National Christmas Tree Association

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HARDWARE RETAILING | March 2020

23.6 M

”

Average Retail Prices (2018) units of artificial trees sold in 2018

$78

real tree

$104

artificial tree

During the holiday season, Sullivan’s Hardware & Garden Center operates two Santa Express trains that takes visitors on rides through a holiday setting and ends at Santa’s Workshop. Ticket sales for the train rides topped $300,000 in 2019.

1. Get the Unsheared Look Recently, interior design trends have driven a growing demand for artificial Christmas trees with an unsheared look, and Sullivan says he has been selling more of those types of trees. This new tree design has fewer branches and a visible trunk, giving the trees an open, natural style, which in the past was more popular in Europe than in the U.S. Unsheared trees can have big branches that highlight large ornaments or thin, wispy branches reminiscent of a Charlie Brown Christmas tree.

2. We Need More Foliage on Set Sullivan says artificial garland has become increasingly popular, outselling fresh and decorated garland. The growing demand may have more to do with pop culture than design trends. Dominating the holiday season, Hallmark Channel’s Christmas movies show garland strewn over mantels, windows, doorways and home entries. According to Forbes, the Hallmark Channel attracted more female viewers ages 18 to 54 than any other network during the fourth quarter of 2018. Any retailer interested in growing their holiday decor category should stay tuned in to the Hallmark Channel.

3. Hit the Regional Highlights Housewares items from wall signs and dishes to pillows and food can fall under the broad umbrella of holiday decor. These items, however, can be riskier to stock than trees and garland because they are influenced by annual fashion trends. Because of the risk, Sullivan recommends not going too deep in ornaments and holiday decor inventory. Instead, he recommends choosing regional items, like local sports team ornaments, state or city-themed items and popular local decor that you know will sell. Just as with traditional sales, holiday decor inventory benefits from niche options.

March 2020 | HARDWARE RETAILING

49

Setting Up the Holidays at Sullivan’s Sullivan Hardware & Garden Center is a basic hardware store with a “monster seasonal business.” At the flagship store, there are about 12,000 square feet dedicated to Christmas supplies. The gift shop on the property contributes to the overall total of up to $1.4 million in holiday decor sales. See the average holiday sales here.

Sullivan’s Holiday Sales at a Glance $800K

Pat Sullivan, owner of Sullivan Hardware & Garden Center in Indianapolis, took customer experience to another level with his Sullivan Santa Express train experience.

Tickets for the Sullivan Santa Express train go fast. In 2019, 775 tickets were sold in the first hour they were on sale.

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“I thought, ‘What’s the worst thing that can happen? If I don’t sell them, I can get my money back by selling them for what I paid,’” says Sullivan.

“Now I sell six containers full of trees and offer 170 different varieties.”

In those early years, Sullivan says they focused on bringing in Christmas and holiday products.

Now, their focus has shifted to creating experiences in the store around the holidays.

“Our biggest competitor on holiday products is the internet, so we have to give customers more than our competitors,” Sullivan says. “At our store, they can have a drink and touch and feel the trees before buying.”

In 2015, Sullivan added an outdoor garden center on his store’s 5-acre property and designed it around trackless trains that provide rides to the North Pole during the holiday season. The trains travel through scenes that change each year.

In 2018, the trains traveled through a reindeer workout room, a sleigh shop and downtown North Pole.

At the end of the ride, families get 15 minutes with Santa in a building that is equipped with craft supplies and toys to keep kids entertained while they wait their turn to see Santa.

The company operates two trains (four cars on each train) each arriving at its own North Pole. Sullivan says the goal was to eliminate the long wait in line to see Santa and to make the experience more fun. The plan is working.

Tickets for the train go on sale at 4 p.m. on November 1. Tickets are $60 per family for a weekend ride and $50 per family during the week. In 2019, 35,000 people rode the train.

“The first year, we sold 89 tickets in the first hour,” says Sullivan.

“Now, in our fifth year, on average, we sold 775 tickets in the first hour.

We sold out before Thanksgiving.”

“Our biggest competitor on holiday products is the internet, so we have to give customers more than our competitors.

”

—Pat Sullivan, Sullivan Hardware & Garden Center Ticket sales alone totaled $325,000, plus visitors spent additional money on food, drinks and gifts, including custom ornaments that look like the Sullivan Santa Express train.

“It is the most successful thing I’ve ever done,” says Sullivan. “I’ve never done anything that so emotionally attached people to my business.”

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03

RESOURCES

DOCUMENTS

ADVISERS

COMMUNICATION

Who’s On Your Side?

6 Questions to Ask When Choosing Advisers

W

hen hiring staff, most retailers put a great deal of effort into the application process to make sure they’ve found the right person. Choosing your business advisers is equally important. These are the people you rely on to help you with specialized areas of the business, such as helping you understand estate laws and doing your taxes. When it comes to succession planning, these are the people who will be by your

side as you negotiate the terms of the sale and set up estate plans.

Wayne Rivers, co-founder and president of the Family Business Institute, has extensive experience helping small businesses transition to new ownership.

He offers guidance on what you should consider when choosing advisers, both for helping in your day-to-day operations and also in guiding your business through a succession plan.

Wayne Rivers is the co-founder and president of The Family Business Institute Inc., a team of consultants offering a variety of services, including succession planning, family governance, conflict resolution and leadership development. He has authored four books on the subject of business families, including “Our Family Business Crisis and How It Made Us Stronger.” Rivers has appeared on major news networks to discuss family business. He also writes his own blog addressing the unique needs of a family-run business. Learn more at familybusinessinstitute.com.

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HARDWARE RETAILING | March 2020

Start With a Unified Front Before you start a succession plan, make sure your team shares the same goals. For example, you may be involved in a partnership and will be bringing other leaders to discussions about your company’s future. If that is the case, work out your differences (as much as possible) before sitting down with an outside adviser. That will help you make better use of your time spent with the professionals guiding your plan.

“Make sure everyone in leadership has a common vision,” says Rivers. “Partnerships or other cases where there are multiple owners are notoriously hard to manage

because it’s rare they all share the same vision for the company. If there’s not a shared vision, then they end up with competing agendas. When the leadership is confused, the rank-and-file employees are confused. That can lead to strife and be unproductive.”

Also, Rivers says it’s vitally important to involve your spouse in the process, even if they are not involved directly in the business. While they may not be a part of all discussions with your advisers, keep them apprised of major decisions so there are no surprises.

“Don’t waste time and effort preparing your plan before you discuss it with your spouse, because you could set yourself up for trouble,” Rivers says.

6 Questions to Ask

the energy and capacity to help you through this important transition?

There are five advisers every retailer needs to have on their team at all times throughout their business career: A banker, a lawyer, a CPA, an insurance professional and an investment professional. In special cases, such as planning for succession, you might want to add a consultant. They may not all play an equal role, but they all will have something to contribute in their area of expertise.

Here are some questions Rivers suggests you ask as you are choosing those advisers.

3. Do they interact well with upcoming leaders?

1. Who will do the bulk of the work?

Don’t think you have to get all of your advisers to sit down together when you’re contemplating a big decision.

While sometimes it could be ideal, it will also be expensive. You might also get conflicting advice.

Choose the one who will help construct most of your plan; consult the others as needed. And if you do need to get several of them together, keep a tight agenda so you don’t waste your time and money.

“Most of the time, you’ll find one adviser who will do 80 percent of the heavy lifting,” says Rivers. “You can go to the others to help fill in the gaps.”

2. Is my current team of advisers still the best for me?

More than likely, you already have advisers. They may have been with your business for decades. But as you are thinking about planning for succession, it’s critical that you take a close look and consider if they are still the best fit for you going forward. Do they still have

When you’re thinking about succession, the decisions you make about the business are no longer about you.

You need to create a vision that will appeal to the next group of leaders following you. The advisers you choose need to interact well with that new group of leaders because they will be a big part of the transition.

4. Do they specialize in the industry?

Look for advisers who understand the home improvement industry, preferably those who have experience helping other retailers in a business transition. Similar to going to a specialty doctor, the advisers you choose should be dialed in to your unique needs.

5. Who else have they helped?

Ask for references or find who else they have helped.

This will tell you a lot about what they can and cannot do.

If your CPA, for example, has never helped another business with a succession plan, then they are the wrong pick for you.

6. What do other retailers say?

Consult your peers in the industry who have already been through the succession process, either as incoming or outgoing owners. They can help you sort through your adviser options and other aspects of the process.

“If you can, find someone who operated a hardware store and then sold it successfully,” says Rivers. “They know what worked and what didn’t. That retailer can teach you more about succession planning than anyone else.”

In every issue of Hardware Retailing in 2020, we will be highlighting a component of succession planning. In addition to catching up on all of the print content, see additional resources at TheRedT.com/succession.

March 2020 | HARDWARE RETAILING

53

KEYNOTE ANNOUNCED

HOW INDEPENDENTS ARE STILL DISRUPTING A Conversation With Dan Starr President & CEO | Do it Best Corp.

NRHA All-Industry Conference May 5-7 | Las Vegas

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

SPRING 2020 V2 | H1

Prime Position

Give Online Shoppers What They Need Page H4

Digital Unity

ERP System Brings Operations Insight Page H10

The Comfort Conundrum

Challenge Yourself to Meet the Needs of Underserved Customers

Page H6

ONLINE

Connect With Us Website HPRmag.com

CONTENTS

SPRING 2020 | VOLUME 2 | ISSUE 1

Features H6

STRATEGY

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.

The New Normal

As customer demographics shift across the nation, new data from Kantar highlights how retailers can boost sales by exploring previously untapped customer bases. J. Walker Smith, chief knowledge off icer with Kantar, explains how being uncomfortable might be the best growth strategy of the new decade.

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 H10 OPERATIONS

The Invisible Manager

Enterprise resource planning (ERP) systems are becoming more popular for high performance retailers. Discover how Friedman’s Home Improvement’s five California locations implemented an ERP system to streamline service and unite employees.

Departments H3 Foundations Understanding High Performance H4 In Conversation Q&A With Jim Robisch, The Farnsworth Group H15 Springboard Video Marketing Insight H16 Between the Lines Organized Crime Targets Retail

H2

Online Exclusive Friedman’s Home Improvement president and CEO Barry Friedman says the company’s new ERP system is not only modernizing the business’s inf rastructure, it’s also bringing new opportunities for employees to lead teams to success. Get the full story now at HPRmag.com/friedmans-culture.

High Performance Retailing Spring 2020

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

Sponsorship Opportunities

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

LET’S TALK

Connect With Dan Email dant@nrha.org LinkedIn Dan Tratensek

FOUNDATIONS

What Is High Performance?

If you read our magazine enough, (and look at the cover of this supplement) you will see the term “high performance” retailing thrown around a lot. But have you ever really wondered what we mean by “high performance?”

On one hand, I will admit it is one of those blatant marketing terms that is used to make our readers feel like they are in some kind of a special club. You know, like magazines or blogs that say they are “for the stylish male” or connecting with an audience of “leading-edge influencers.”

So, just by nature of the fact that you read the blog or subscribe to the magazine, you must be stylish or an influencer.

So, congratulations, if you are reading this supplement you are part of the high performance retailer club. (Your badge and decoder ring are coming in the mail.) But aside from this pure marketing allure, what is it that makes some retailers high performance and others, well, just average?

For starters, it’s the numbers. In the North American Retail Hardware Association’s annual Cost of Doing Business Study, we actually have a definition of what we mean by high performance. In the study, high performance retailers are the operators whose net operating profits fall within the top 25 percent of all respondents.

A pretty simple definition.

While this description is adequate when we are comparing cold hard data, it doesn’t necessarily work in a more holistic sense. There are plenty of retailers out there who are focused on

growth, actively trying new things in their businesses and constantly crunching numbers who might not have hit their desired performance marks just quite yet. Does this mean they aren’t high performance?

With this thought in mind, I recently heard someone reference an old business axiom that asks, “Are you working in your business or on your business?” To me, this adage may be one of the best lines to describe what I would call a high performance retailer. It is someone who isn’t content to just open the doors to their store every day and go about the business of running a retail operation.

A high performance retailer, like the ones you will read about in this issue, is someone who ensures that all basic retail tasks get done but who is also constantly looking for ways to reach the next level.

While you await your membership card in the high performance retailer club, I hope you can take a few minutes to browse through this issue and take some inspiration from the other club members who are working on making their businesses even better. Oh, and look for the code to decipher in the next issue.

A high performance retailer ... is constantly looking for ways to reach the next level.

Dan M. Tratensek Executive Editor, NRHA

Spring 2020 High Performance Retailing

H3

IN CONVERSATION

Jim Robisch is senior partner at market research firm The Farnsworth Group.

Based in Indianapolis, the organization has studied trends in the home improvement and building materials market for more than 30 years, delivering insights throughout the channel. For more information, visit thefarnsworthgroup.com.

Doing the Research Your Web Presence Can Make or Break Sales

U

nderstanding how home improvement customers research products online and ultimately make their purchases is critical. As customers begin to expect more online interaction from the businesses they shop, discover how you can position your website for ongoing success.

H4

High Performance Retailing Spring 2020

The 2019 research report “Communicating With Hardware and Home Improvement Customers” from The Farnsworth Group sheds light on how customers access and interpret retailers’ websites. The report tracks the opinions of 1,200 home improvement customers from diverse backgrounds. While shoppers research and shop for home improvement products online more regularly, Robisch tells High Performance Retailer that the data reveals brick-and-mortar home improvement stores are more relevant than ever. Read more of his thoughts here.

Why do you purchase in-store?

86% On average, 72% of consumers’ home improvement shopping was done in brick-and-mortar stores.

Why is it important for home improvement retailers to track customers’ online behavior? The Farnsworth Group is committed to bringing operational insight to all of our clients, many of whom are home improvement retailers. When we conduct advertising studies, clients always want to know how best to communicate with pros and DIY consumers. Retailers are struggling to understand how to best serve their customers, and digital outreach is a huge part of that equation.

What are the main motivations for customers shopping online, specifically in the home improvement vertical? Convenience is the main driver. No matter where you are, you can look around and usually see someone shopping on their mobile devices. Beyond convenience, I think price transparency is a big factor for increasing online shopping.

People can compare products and prices quickly, in their kitchens or at a ball game. Many people say the main motivation for customers to shop online is lower prices—and that’s definitely part of it—but above all, online shopping provides convenience.

Is home improvement insulated from online competition from the likes of Amazon and other e-commerce players? Home improvement is not insulated from online competition, but it is resistant. The nature of the

Need it immediately

products plays a big role. Customers need home improvement products immediately, which causes them to visit brick-and-mortar locations in person when they need products.

Customers might be willing to wait to receive housewares and decorative products, but if you need nails or key plumbing parts, the chances of waiting to receive them is slim.

How can independent retailers build their websites to best meet customers’ needs? People are starved for time. Hands down, customers want to be able to visit your website and see what you have in stock and if you have competitive prices. When you offer that information quickly, it motivates online browsers to visit your store.

What were some of your biggest takeaways from the report? The data reveals just how important having a web presence is. Beyond that, offering e-commerce—or at least an overview of the products you carry and their prices—is increasingly important. The data also shows just how many touchpoints there are before a customer makes a purchase.

These are chances to engage customers, and digital tools enable you to leverage those opportunities.

Ultimately, you should research your market and see which advertising methods—print, TV, digital, some combination—appeal to your specific customer base.

35% Ability to return

Why do you purchase online?

75% Free shipping

49% Ability to ship to store for free

Put It to Use: Even if you don’t yet offer e-commerce, ensure your website includes subpages for your key departments with general pricing information.

Spring 2020 High Performance Retailing

H5

AUTHOR

Todd Taber Assistant Editor

STRATEGY

ttaber@nrha.org

Discomfort Is Your Next Great Growth Strategy 5 Uncomfortable Retail Realities Bringing New Opportunities

Y

ou’ve felt the winds of change. In this new decade, retail realities that once seemed like figments of the imagination are now commonplace. Robots work alongside humans in big boxes, and customers can have an entire shopping experience on the same device they use to order a pizza and videochat with relatives.

As retail trends move faster and with more impact, adhering to business as usual can be a costly mistake for independent home improvement retailers.

J. Walker Smith serves as chief knowledge officer for brand and marketing at Kantar, a research and consulting firm. Smith and his team search for macro

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High Performance Retailing Spring 2020

shifts in consumer behavior and interpret how those changes will affect retail and commerce at large, including independent home improvement businesses.

He was instrumental in the development of Kantar’s Uncomfortable States of Opportunity report, a panoramic survey of economic and consumer trends that highlights how certain demographic segments are neglected when companies stick to standard protocol.

On the following pages, Smith discusses five key takeaways from Kantar’s report. Discover how Smith says retail is changing, and doing business as usual is no longer an option in an increasingly interconnected marketplace.

ONLINE

Build Better Social Media Learn more about how to power up your business’s social media reach at HPRmag.com/social-skills.

1|

Growth opportunities are found in niches.

Kantar’s research finds that from 1980 to 2016, the average income for the world’s poor grew by 94 percent, the middle class’s income grew by 43 percent and the world’s top earners grew their income by 70 percent.

Smith says with income growth strongest at the top and bottom of the economic spectrum, the most powerful growth opportunities are outside the traditionally targeted middle class.

While the report notes the idea of an hourglass economy is not new, many brands have struggled to find new ways to reach new customers as middle class income shrinks.

Smith says this splintering of the economy is creating fragmented niches, preventing companies from relying on “the straightforward efficiencies of mass production and mass marketing.”

“I think most companies can spot niches in their customer base,” Smith says. “I think business operators are aware of these niches, but these niches tend to reflect specific subgroups, which might have different tastes or require special products. Retailers have to find new ways to reach these customers.”

Smith points to companies that have flourished by finding new ways to make sales and meet consumer needs. Specifically, subscription services like Dollar Shave Club or HelloFresh have made inroads with budget-conscious consumers looking to add convenience to their lives.

“Most companies have zeroed in on a certain way of doing business,” he says. “It’s the smaller players who are finding new ways to break down barriers and reach new customers by exploring their niches.”

Spring 2020 High Performance Retailing

H7

“Brick and mortar has an opportunity around human touch.”

J. Walker Smith, Chief Knowledge Officer, Kantar

4| 2|

Consumers are seeking personal connections to brands.

Smith says research shows the public’s trust in government, media, businesses and organizations has declined recently.

“People don’t trust big institutions as much as they used to; it’s a fundamental social shift,” Smith says. “Trust hasn’t vanished, but it has shifted to smaller, more intimate networks.”

He says the impetus is on brands to find authentic ways to connect with customers in these smaller spaces, and they must venture outside their comfort zones to do so.

“Authority is no longer concentrated at the top,” Smith says.

“Trust and influence are now bottom-up and found in smaller, more intimate worlds. If brands can authentically join these spaces, big opportunities will be found.”

3|

The future is digital— and analog.

Brands put themselves at a disadvantage when they rely too heavily on digital possibilities, Walker says.

“We’ve lived through about 15 years of increasing digital immersion,” Smith says. “There’s now an ongoing pushback against sterile digital, and people want a balance. Fostering human connections will be pivotal in the years ahead.”

Brick-and-mortar retailers may have an advantage in finding the balance between digital efficiency and human touchpoints.

Embracing the shop-local movement is one key way of adding personal connections to your business, Smith says.

“Brick and mortar has an opportunity around human touch,” he says. “If retailers think of ways to improve the customer experience and deliver value for the time consumers spend in their stores, they’ll discover adding human interaction alongside digital connections will work to their advantage.”

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High Performance Retailing Spring 2020

Consumers value unique experiences.

Consumer spending on services is growing. They account for 77 percent of all spending in the U.S., meaning retailers should find ways to add or enhance services to their offerings.

“The broader takeaway is that growth isn’t just found in traditional experience purchases like dining or travel; people are looking for a benefit to their lives,” Smith says. “This change suggests people want an intangible, experientially based benefit in their lifestyle and spending.”

Smith advises retailers to add value to the traditional shopping experience without commanding too much of a shopper’s time.

“The consumer mindset these days is less about accumulation of products and more about experiences. That’s where retailers should put their strategic focus,” he says.

5|

Entice customers to opt in.

Smith points to a 1956 review of scientific experiments which determined the average human could remember about seven facts at a time in their short-term memory. As time has passed, the amount of data humans receive each day has grown exponentially. Kantar now estimates humans encounter about 74 gigabytes of information each day, about the size of 25 episodes of your favorite Netflix series. Retail must break through the noise.

“For a long time, brands fought against people opting out of their online offerings, but the focus is changing. These days, retailers must encourage people to opt in—to deliver products and services that encourage engagement,” he says.

Smith says this notion has direct effects on marketing.

“Retailers understand that their marketing has to be simple and direct,” he says. “Our tendency is to try to overcontrol the retail experience, but instead, we should be requiring less from customers and making our systems more efficient.”

Smith says Amazon has found ways to leverage simplicity and encourage customers to opt in to new products and services.

“Each day, Amazon asks how they can make their customers’ shopping experience easier and less time-consuming,” he says.

“It’s all about a seamless retail experience that we’ve lost sight of.

We tend to overcomplicate customer outreach, but in this case, less is more.”

Facing Uncomfortable Truths As part of the Uncomfortable States of Opportunity report, Kantar has identified several consumer profiles that are gaining new retail power. Explore a few of these emerging customer demographics below, and learn more by visiting kantar.com.

No Kids Zone Households with children, once at the forefront of marketing, are shrinking. Kantar says many businesses still target nuclear families, often overlooking couples without children. Many young households are buying homes without ever expecting children, and retailers should know these customers often have heavy spending power.

Percent of households with at least one family member under 20 54% 50%

44% 40%

36% 1960

Singletown Worldwide, single-person households are the fastestgrowing type, forcing businesses to shift their marketing focus from the traditional images of families in order to connect with a growing customer base. Home improvement operators can best serve single-person households by emphasizing products that add convenience and safety to these customers’ lives.

The Urban Influence Kantar notes that as cities grow, they begin to have more in common with other large urban areas, not with the states or provinces in which they’re located. Simply stated, successful marketing tactics and products in one urban marketplace often work in another. Retailers can best meet urban customers’ needs by offering storage solutions and bundling materials for popular projects together for extra convenience.

39%

1970

1980

1990

2000

480

1.9%

277

Source: Euromonitor International

153

2011

1996

2018 (est.)

2030 (est.)

Urban vs. Rural Global Population

By 2050

, nearly 7 billion people are projected to live in urban areas, more than double the number of rural citizens.

4B

2B

Growth of single-person households over the next decade is projected at

CAGR—the fastest growing of all household types.

360

3B

Sources: United Nations Household Size and Composition 2019, and U.S. Census Bureau, Current Population Survey

2010

Number of single-person households worldwide (in millions)

60%

In 2016, of U.S. adults aged 25-34 had no children living in their household. In 1967, the same figure was just above 20%.

Rural

Urban Source: Our World in Data, Urbanization Study

1B 1970

1980

1990 2000 2007 2017

Spring 2020 High Performance Retailing

H9

AUTHOR

Todd Taber Assistant Editor

OPERATIONS

ttaber@nrha.org

H10 High Performance Retailing Spring 2020

Friedman's Home Improvement president and CEO Barry Friedman and vice president of technology Richard Marano say a new ERP system modernizes infrastructure and provides a foundation for the future.

The Guiding Force How Friedman’s Home Improvement used a new ERP system to gain deep operational insight and enrich its company culture.

Spring 2020 High Performance Retailing

H11

The new ERP system will standardize processes across the business, giving teams access to realtime inventory information and enabling employees to focus on their department's success.

How can an ERP system improve your operation?

Every company will have different goals for its ERP system, but there are a few common benefits most businesses seek when they implement or upgrade their ERP system.

Real-time access to data.

Modern ERP systems enable employees from all corners of a business to access a single data set to make decisions and provide customers with information.

Improved collaboration.

With a functioning ERP system, employees benefit by being able to see the big picture of any business’s operations.

Separate departments can anticipate each other’s needs and act accordingly to ensure a smooth retail experience.

Greater customer service.

Most ERP systems come complete with a customer relationship management (CRM) tool to help organize key information of your top customers. This database can grow with time, giving your team insight into customers’ contact information, purchasing history and other key details to serve them best.

F

or more than 70 years, Friedman’s Home Improvement has sought new ways to serve its California customers. With four locations and a

diverse customer base that includes weekend DIYers, professional builders and every trade in between, the Friedman’s team is committed to finding new ways to meet the challenges of modern retail.

H12 High Performance Retailing Spring 2020

95% of companies improve their processes following ERP implementation.

In December, the company implemented a new enterprise resource planning (ERP) system, which standardizes processes across the company and modernizes its infrastructure.

Friedman’s Home Improvement president and CEO Barry Friedman and Richard Marano, vice president of technology, say implementing the new ERP system provided a foundation for the future of the business.

Source: 2018 Panorama Consulting Solutions

ERP systems promote teamwork and specialization.

ERP systems refer to a suite of integrated business applications companies can use to manage core activities, from point-of-sale interactions to warehouse management and accounting. They can be tailored to fit a business’s individual needs, prioritizing certain tasks and collecting data from each corner of a company while providing real-time information to employees.

“The new ERP system enables Friedman’s employees to fulfill one of our core values: to connect,” Marano says. “Our mission is to deliver the human side of home improvement, and we knew we needed to do that for this project.”

Under Friedman’s former system, a salesperson would write an order, then complete a purchase order and follow up with it. As time passed, the delivery would arrive at the store and then the salesperson would contact the customer to arrange delivery or pick up. In this workflow, employees had to constantly monitor the progress of their activities, hoping nothing fell through the cracks and customers received what they ordered when they needed it.

With the new system, employees are running a relay race; always focused on their department and their core activities.

The ERP system oversees individual processes, allowing employees to specialize in a single line of work and thereby improve their contributions to customer service.

“At Friedman’s, everyone has always been a part of the same team, but we didn’t need each other to win,” Friedman says. “We’ve been evolving to a more specialized system of work, which makes individual contributions critical to the success of the entire organization.”

Consider what your business needs from an ERP system.

Friedman and Marano agree finding the right system for your specific business needs is critical. When the former ERP system turned 20, the team decided it was time for a replacement.

“Knowing retail is moving so quickly, we wanted to choose a system that would be continuously improving. We didn’t

want to get painted into a corner, we wanted to evolve at a more rapid pace than we had over the last 73 years,” Friedman says.

Roughly five years ago, Friedman sent a team of employees to the National Retail Federation’s Big Show, a retail conference, and charged them with learning more about ERP providers.

After considering multiple options, Friedman’s ultimately chose Microsoft D365 as its ERP solution. Friedman says employees were already familiar with Microsoft’s programs.

Microsoft D365 also relies on cloud computing technology, which provides extra security and convenience for the team.

“Friedman’s isn’t just a lumberyard, and it’s not just a hardware store,” Friedman says. “We’re a hybrid, and there was no system that fit our needs right out of the box. Microsoft allows us to be a little bit of both industries.”

Marano says choosing Microsoft also positioned the company to benefit from a host of other products and services.

“The beauty of the Microsoft platform is that it allows people who specialize in your industry to extend the functionality of your particular system,” he says. “Microsoft has modernized the D365 product for years and stands behind all the infrastructure pieces, meaning we can go to one partner and get every solution we need.”

Implementation partners are critical.

Marano joined the company roughly 18 months ago to oversee ERP implementation and other tasks. He brought years of home improvement retail insight and direct ERP implementation experience, motivating team members to call him “the rudder” of the project.

Spring 2020 High Performance Retailing

H13

ONLINE

How an ERP System Influences Company Culture Friedman’s Home Improvement leaders say the new ERP system is a key component in preserving the company’s commitment to teamwide unity. Learn more about the emphasis on positive culture at HPRmag.com/friedmans-culture.

Companies implement ERP systems to...

64%

Improve business performance

57%

Reinforce company growth

57%

Reduce working capital

54%

Improve customer service Source: 2018 Panorama Consulting Solutions

He says one of the key aspects of successful ERP implementation is finding both a software provider to deliver a reliable product and collaborating with an implementation partner to ensure that system fits your company’s needs.

“When you’re talking about so many areas of the company that require functionality, that affects how this company does or wants to do business, your implementation partner is key,” Marano says. “Properly vetting your ERP system and your implementation partner ensures that both the tech side and the business side of the company know where we’re going.”

Friedman’s chose Sunrise Technologies as its implementation partner, specifically because it understood home improvement retail and could make key alterations to the new ERP platform.

“Sunrise understood some of the key functions of our ERP system, especially around job site locations and specific contractor needs,” Marano says. “They also understood how pricing needs to be competitive for contractors.

They are very retail-focused, and that was hugely important in the decision.”

ERP systems reveal hidden facets of your company.

Both Friedman and Marano agree the process of researching and implementing a new

H14 High Performance Retailing Spring 2020

ERP system requires everyone involved to learn more about their company.

Friedman says a major component of implementing the new system was understanding specific workflows from different departments and identifying how they connect with one another. His team began reviewing each corner of the business, recording processes across departments to standardize them within D365.

“We didn’t have those processes written down before,” he says. “Now, we can teach those processes and share them with new team members. It’s brought more standardization to the company.”

Marano says these written processes were critical in implementing the ERP system.

“When departments had clear SOPs, we were able to provide ERP training that addressed those procedures concretely,” he says. “They were a huge benefit to the company.”

Friedman says that legwork was valuable not just in the ERP implementation, but in understanding the company he guides.

“Before taking on a tech project, you have to understand your team,” Friedman says. “Technology doesn’t solve the process problems, but it does give you the tools to solve them.”

ONLINE

Video Marketing Tools Ready to take the plunge into using video to promote your business? Visit HPRmag.com/video-strategy to learn how short, simple videos can propel your brand.

SPRINGBOARD

Lights, Camera, Sales Understanding the Power of Video as a Marketing Tool As social media use grew in the past decade, so did the reach of online marketing videos, according to a recent report from marketing firm Wyzowl. Data from nearly 700 marketers and consumers reveals some of the powerful reasons video has become one of the key ways for business owners to share company information, quick DIY tips and personal insights about their teams.

Video's marketing potential is growing: 92 percent of marketers say it's an important part of their strategy and 20 percent of marketers used video for the first time in 2019.

- MARKETING SIDE 80%

of video marketers say video has directly helped increase sales for their companies.

43%

of video marketers say video has decreased the amount of support calls they field.

95%

of marketers plan to increase or maintain their video spend in 2020.

Nearly half of all marketers say they started using video because it became more affordable. Of the marketers who used video for the first time in 2019, 47 percent say it’s becoming less time-consuming to create video content.

While YouTube remains the most popular platform to post videos, marketers are expanding their reach, Wyzowl reports. After YouTube, the most popular places to post videos are Facebook, LinkedIn and Instagram. New social media platform TikTok is still relatively unexplored, but 66 percent of marketers who have used it report success.

- CONSUMER SIDE 96%

of customers have watched a video to learn about a product or service.

16 hours

is the average time consumers spend watching online videos each week.

Customers are

2x more likely to

share video content than other media.

Source: The State of Video Marketing 2020, Wyzowl

Spring 2020 High Performance Retailing

H15

ONLINE

Have Your Say Is your business seeing an uptick in organized retail crime?

How is your team combating it? Share your experience online at nrha.org/retailer-forum.

BETWEEN THE LINES

Retail at Risk New Data Highlights Costly Impact of Organized Retail Crime Throughout retail industries, the financial toll of organized combatting retail crime is more of a priority now than in the retail crime is growing. The National Retail Federation (NRF) past five years and is driving operational strategy at their recently compiled data on retail theft, shedding light on businesses. Roughly half of the retailers NRF surveyed say one of the industry’s most pressing problems. they are allocating additional technology resources and A staggering 97 percent of retailers say they’ve been increasing their budgets to address the rising risk. victims of organized retail crime, including cargo theft, In recent years, cities and states have raised the return scams and large-scale shoplifting. dollar threshold on stolen merchandise for prosecuting The problem seems poised to rise. More felonies. However, the NRF than two-thirds of the retailers NRF says these policies have had surveyed say they’ve seen a rise in an unintended consequence retailers store thefts in the past year. as retail thieves can steal have been victims of cargo The NRF estimates increasing amounts of theft in the past 12 months. for every $1 billion of merchandise without risking Source: The National Retail Federation merchandise sold, a felony conviction. More organized retail than 70 percent of retail crime costs retailers respondents say new laws to more than $703,000. combat organized retail crime About 65 percent say need to be established.

Over 7 in 10

Retailers Take Action As the costs associated with retail theft rise, many operators are considering new tactics to safeguard their stores.

Changing Policies 30%

8%

59%

33%

30%

En route from the DC to a store

At the DC

En route from one store to another store

24%

22%

2%

At the store

En route from the manufacturer to the DC

Other

Return Policy

16%

21%

Point-of-Sale Policy

16%

11%

Employee Screening Policy

16%

8%

Trespass Policy

Have changed

Where Retail Theft Occurs

Plan to change

Source: NRF’s 2019 Organized Retail Crime Report

H16 High Performance Retailing Spring 2020

KEYNOTE ANNOUNCED

EMPLOYEES FIRST: DISRUPTING ASSUMPTIONS for More Loyal Customers and Stronger Sales

Kevin Hancock | CEO | Hancock Lumber

NRHA All-Industry Conference May 5-7 | Las Vegas

Experience the social and economic benefits of creating an employee-centric company. Learn how channeling corporate success through employee experience enhances your business and your community. Learn more at nrhaconference.com.

Newsmakers

Lowe’s Supports the Trades

T

he struggle to find enough workers for skilled trade jobs is impacting the home improvement industry as a whole. Mike Mitchell, who leads Lowe’s skilled trades initiatives, including a national movement called Generation T, spoke with Hardware Retailing about why Lowe’s has developed programs to help reduce the skilled labor gap and strengthen the industry.

Hardware Retailing (HR): Why is Lowe’s developing programs to promote careers in skilled trade jobs?

Mike Mitchell (MM): Pros are the backbone of our business. We’re committed to them. A little more than 18 months ago, we started to invest in the future pro by paying for our own associates to pursue skilled trade careers. These are in-store associates who are working our plumbing aisle, our electrical aisle. We’ve helped enroll more than 2,000 associates nationwide to get a pre-apprentice certification in plumbing, electrical, HVAC, appliance repair or carpentry. As that program started to get popular, a lot of high school leaders reached out to us and said, “We would love if you’d come out and talk to our kids about careers in construction.” We started to realize that the scope of this work is actually much bigger and that’s why we’ve decided to make a movement and not just an alliance.

HR: Why is a project that also helps competitors so important to Lowe’s?

MM: It’s critically important to Lowe’s for creating a future workforce and helping our installers grow their pipeline of talent. Lowe’s partners with some of the best installers and repair companies around the country. But a lot of them have said they need help recruiting new talent. So this is our way of stepping up and saying, “We’re going to help you. We’re going to create a national rallying cry.” We’ve always said we want to do business with contractors all around the country. The pro is a huge focus for us.

But if their business is not growing, ours isn’t, either. We need to help them grow their businesses, but along the way, we’re helping people jump-start their careers in areas that are high growth with high potential. It really is a win-win.

HR: Why does the gap exist and what can small businesses do?

MM: There is no trade school for skills such as shower door installation and granite countertop installation. These are specialized areas where, historically, family members passed down the knowledge over time within small businesses. That has changed.

I feel like the workforce and the education systems have been misaligned for 40 years. We know that only 14 percent of parents currently say their high school kid is in any kind of shop class. However, in the same research Lowe’s did, 67 percent of parents say they would see extreme value to have their kids exposed to different types of work, like construction. Lowe’s is willing to commit not only to help the foundation of our industry, but also help students who don’t know what to do if they’re not going to a four-year university. That’s a discussion we need to have in the U.S. about workforce and education in a way where we’re helping build bridges.

Mike Mitchell is Lowe’s director of trade skills and learning innovation. Under his leadership, the company launched Track to the Trades, a pre-apprenticeship program for Lowe’s associates interested in pursuing skilled trades careers and Generation T, a national movement intended to help fill the skilled trade gap that analysts predict will leave 3 million jobs open by 2028.

72

HARDWARE RETAILING | March 2020

Top Headlines Go to TheRedT.com/subscribe to receive Hardware Retailing’s weekly industry news digest.

Receive the latest headlines, reports from industry events and exclusive online content in your inbox.

United States

1

Sears Holdings Corp.

Settles Lawsuit With Former CEO

2

Home Depot Unveils Company’s First Flatbed Distribution Center

3

More Builders Adding Energy-Efficient Features Throughout the Home

Canada

1

Gagnon Group of Stores Leaves BMR, Aligns With Octo

2

End of an Era as the Last 2 Zellers Stores Close Their Doors

3

Strong Turnout and Good Weather Help Success of WRLA Show

To read Canadian industry headlines, visit hardlines.ca/hr.

March 1-4 International Hardware Fair Cologne, Germany

12-14

April 14-17

5-7

International Home + Housewares Show Chicago

Home Hardware Spring Market St. Jacobs, Ontario

Follow NRHA and Hardware Retailing on social media! @nrha_official @hardwareretailing

19-21

Ace Hardware Spring 2020 Convention & Exhibits Chicago

Blish-Mize Spring Market Overland Park, Kansas

Industry Calendar

13-15

25-27

PACOA Spring Dealer Market Flushing, New York

Wallace Hardware Spring Dealer Market Pigeon Forge, Tennessee

Visit TheRedT.com/calendar to find more information about these upcoming industry events and see what else is coming up. Contact editorial@nrha.org to get your event on the calendar.

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

Lighthouse for the Blind............................................ 42 www.rapidfix.com; 800-542-3697

Sakrete ........................................................................ 1 www.sakrete.com; 866-725-7383

Bee’s Wax Polish ...................................................... 29 www.beeswaxpolish.com; 844-673-3729

Mars/Coast Air........................................................... 13 www.coastair-ac.com

Sashco ......................................................................... 3 trycleanz.com; 800-767-5656

Brave ......................................................................... 17 www.braveproducts.com/HRM; 866-281-4421

Maxim........................................................................ 17 www.maximmfg.com/HRM; 888-376-0849

Shurtape Technologies, LLC ..................................... 51 www.frogtape.com; 800-321-1733

Coles Wild Bird Products Co. .................................... 47 www.coleswildbird.com; 877-426-8882

Mayhew Tools........................................................... 28 www.mayhew.com; 800-872-0037

Shurtape Technologies, LLC ..................................... 31 www.T-RexTape.com; 800-321-1733

Do it Best Corp............................................................ 9 www.doitbestretail.com; 888-364-8237

Mi-T-M Corporation ................................................... 45 www.mitm.com; 800-553-9053

Sika ............................................................................ 14 usa.sika.com/retail; 800-933-7452

Dutton-Lainson Company.......................................... 50 www.dutton-lainson.com; 402-462-4141

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

Turfco Rental ............................................................. 17 www.gnedi.com/turfco-rental; 800-822-0295

Fluidmaster................................................................ 39 www.fluidmaster.com; 800-631-2011

National Hardware Show........................................... 75 www.nationalhardwareshow.com; 888-425-9377

U-Haul........................................................................ 11 www.uhaul.com/hardware; 800-468-4285

Franmar Inc. .............................................................. 16 www.franmar.com; 800-538-5069

NRHA All-Industry Conference............................ 54, 71 www.nrhaconference.com

UGL ............................................................................. 5 www.zar.com; 800-845-5227

GE Sealants & Adhesives......................................... BC www.GEsealants.com; 877-943-7325

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

Wallace Hardware Co................................................ 21 www.wallacehardware.com; 800-776-0976

Howard Products....................................................... 50 www.howardproducts.com; 800-266-9545

Phifer ........................................................................... 7 www.phifer.com; 205-345-2120

Wastequip ................................................................. 43 try.toter.com/odorcontrol; 800-424-0422

Impress Art................................................................ 15 www.impressart.com; 631-940-9530

Pro Hardware ...........................................................IFC www.prohardware.com; 303-792-3000

Woodland .................................................................. 26 www.pinecar.com; 573-346-5555

Iron & Oak ................................................................. 17 www.ironandoak.com/HRM; 866-281-4509

RMR Brands .............................................................. 44 www.RMRsolutions.com; 866-822-8744

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

Ironclad Performance Wear Corp.............................. 27 www.ironclad.com; 972-996-5664

Rust Patrol................................................................. 25 www.rust-patrol.com; 803-396-8400

readers. The Publisher assumes no liability for errors or omissions.

March 2020 | HARDWARE RETAILING

73

Last Word

See the Trends at spoga+gafa 2020 spoga+gafa is the world’s largest annual international lawn and garden trade fair. Book your trip today to stay fashion-forward in this trend-focused and lucrative category. Get more details about spoga+gafa 2020 to start planning your trip at TheRedT.com/spoga-gafa-2020.

September 6-8 Cologne, Germany Sustainable Gardening Theme Explore this year’s theme through events, lectures and special exhibition areas.

Exhibitors and experts will demonstrate how a garden can be designed to save resources and be eco-friendly.

Shipping Logistics spoga+gafa works with logistics companies that offer consolidated shipping back to North America, so attendees have the opportunity to be the first in their markets to sell these product trends.

Easy Travel Transportation to and around Cologne is made easy. Many fair visitors fly into Frankfurt directly from North America and take the train from the airport to Cologne, about an hour trip. The high-speed train travels up to 185 mph.

Boulevard of Ideas Vignettes in the hallways connecting the exhibition halls give attendees small inspiration pieces as they move from one area of the trade show to another.

4 Show Floor Segments VIP Buyer Program spoga+gafa highlights four Register as a VIP buyer to categories on the show floor: receive free admission, access Garden BBQ, Garden Unique, to the VIP lounge, exclusive Garden Living activities, and Garden travel assistance Creation & Care. and more. VIP The theme buyers discover will come alive opportunities million square feet in each area beyond the trade of exhibition space through current show, including trends and how store visits, technology can sightseeing tours help achieve and customized sustainability programs for exhibitors from goals. groups.

2.4

2,100+ 61 countries

74

HARDWARE RETAILING | March 2020

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