Issuu

Serving Hardware, Home Center & Building Material Retailers

Feeding The Need Farm, Pet and Ranch Customers Speak Up 100

Meet This Year’s Top Guns 132

VOLUME 212 • ISSUE 5 • MAY 2017 • HARDWARERETAILING.COM

Your guide to the National Hardware Show® starts on Page 130.

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Orgill Makes Success Personal Reliable Relationship, Sharp Pricing

“Orgill’s people are smart and they care. You can call them any time and they always know who you are.” Bobby Fuller l Fuller & Son Hardware, Arkansas l An Orgill customer since 2002

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Great People

“I love doing business with Orgill because I know that when

“We have a really close relationship with Orgill. It feels

someone from Orgill tells me something, you can chisel it in

like we pretty much know everyone at the company. Orgill is a

stone because it’s a done deal.”

big operation, but you wouldn’t know it by the way they treat their customers. They are just very real people.”

Competitive Advantage “We are known for being competitively priced with everyone in

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our market, including the boxes. Orgill’s pricing lets us do this.

“At the Dealer Markets, we always see things we never

We also use their Market Specific Pricing system that makes sure

saw before. We also take advantage of the Market pricing to

we are always competitive on price without giving up any margin.”

remain competitive and boost our margins.”

For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 373 • information@orgill.com • www.orgill.com • Orgill, Inc. P.O. Box 140, Memphis TN 38101-0140

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“Epicor Eagle N Series software merges everything we’ve bought and built to date, enabling intelligent, timelier and ultimately more proﬁtable decisions. The Eagle N Series solution ‘brings to life’ Compass analytics because it puts useful analytics into employees’ hands.”

Feeding The Need Farm, Pet and Ranch Customers Speak Up 100

Meet This Year’s Top Guns 132

Virgil Cox, Owner | Cox Hardware and Lumber

However you deﬁne growth, Epicor® Eagle® business management solutions can help you focus on what matters most. Designed to reinforce retail best practices, Eagle has the complete solution set for retailers who want to grow revenue and proﬁts, tightly control inventory costs, make smarter decisions quickly, and maximize the customer experience. Contact an Epicor expert today or stop by the Epicor Booth #F113 at the Do it Best May Market May 19–22, 2017 and experience the Eagle advantage for yourself. epicor.com/eagle | eagle@epicor.com | 1.888.463.4700

VOLUME 212 • ISSUE 5 • MAY 2017 • HARDWARERETAILING.COM Copyright ©2017 Epicor Software Corporation. All rights reserved. Epicor, the Epicor logo, Grow Business, Not Software, and Eagle are registered trademark or trademarks of Epicor Software Corporation in the United States and certain other countries.

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The Cost of Doing Business For 100 years, NRHA has been compiling data submitted by independent home improvement retailers to create its Cost of Doing Business Study (CODB). The CODB helps retailers like you gauge your financial performance against typical and high-profit operations.

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Your guide to the National Hardware Show® starts on Page 130.

“The tools you receive for participating are tremendous resources every retailer can use to analyze and make better decisions for the business.” Gary Copp | Carson City Lumber FOR MORE INFORMATION, GO TO THEREDT.COM/CODB2017

MAY SPONSOR

“At the NRHA State of Independents Conference, I mentioned a few issues I had with vendors. They reached out to me directly wanting feedback on how to change their programs.”

Megan Menzer | Newton’s True Value | Member since 2009

We’re Stronger Together. While you are hard at work, the North American Retail Hardware Association (NRHA) works hard for you. NRHA cultivates industry relationships and creates opportunities, like the State of Independents Conference, for independent home improvement retailers to communicate directly with channel partners. Joining NRHA makes sure your voice is heard.

JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

Serving Hardware, Home Center & Building Material Retailers

Feeding The Need Farm, Pet and Ranch Customers Speak Up 100

Meet This Year’s Top Guns 132

FLEX CHARGE VOLUME 212 • ISSUE 5 • MAY 2017 • HARDWARERETAILING.COM

DUAL POWER

Your guide to the National Hardware Show® starts on Page 130.

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JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

Serving Hardware, Home Center & Building Material Retailers

Feeding The Need Farm, Pet and Ranch Customers Speak Up 100

Meet This Year’s Top Guns 132

VOLUME 212 • ISSUE 5 • MAY 2017 • HARDWARERETAILING.COM

Your guide to the National Hardware Show® starts on Page 130.

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NEXT MONTH

Everything Plus the Kitchen Sink

n the June issue of Hardware Retailing, we explore hardware stores in concrete jungles. Urban retailing poses challenges many rural and suburban retailers may not experience, but we discovered there are similar goals, no matter the neighborhood. Next month’s Category Spotlight features decorative plumbing. We explore the plumbing showrooms of a retailer and a designer to

see what is in demand, whether it’s for a renovation or a ground-up build. Finally, we give you a front-row seat to the Reimagine Retail contest at the National Hardware Show®. One retailer who delivers a stellar plan for a business improvement project will receive the $100,000 prize from the National Hardware Show to put that business improvement project in motion.

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May 2017 | HARDWARE RETAILING

Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton FEATURES EDITOR Liz Lichtenberger

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

ASSISTANT EDITOR Renee Changnon ASSISTANT EDITOR Kate Klein ASSISTANT EDITOR Melanie Moul

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

SENIOR DESIGNER Lynnea Chom GRAPHIC DESIGNER Graeme Haase GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan

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

CIRCULATION

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

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

SALES/NRHA VENDOR PARTNER

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

STATE AND REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 2301 Country Club Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, or 97305 (UPS, FedEx); P.O. Box 17819, Salem or 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; Alaska, Idaho, Ore., Wash. SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; Ark., Kan., La., Mo., Neb., N.M., Texas

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

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, Ind. 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00. Periodical postage paid at Indianapolis, Indiana, and additional mailing offices. POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2017 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

“It’s been amazing to see the transition of the association over the past few years. NRHA is offering more to independent retailers now than ever before. It truly is a voice and productive resource for the industry.”

CIRCULATION DIRECTOR Richard Jarrett

RETAIL LEADERSHIP INSTITUTE

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

NRHA would like to extend a heartfelt thank you to James Cabirac, owner of Kief Hardware in Cut Off, Louisiana, for serving a term as NRHA board chairman. For the past 12 months, Cabirac has led the association in finding new opportunities to educate, advocate for and associate with independent retailers in the U.S. and Canada. Starting this month, Cabirac will transition to immediate past chairman for a final year on the board.

ASSISTANT EDITOR Chad Husted

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

Thank You, James Cabirac!

NRHA MISSION

The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD James Cabirac, Kief Hardware, Cut Off, Louisiana EXECUTIVE VICE CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas FIRST VICE CHAIRMAN T.J. Comstock, Northwest Hardware, LLC, Billings, Montana SECOND VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin THIRD VICE CHAIRMAN Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois DIRECTOR Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts DIRECTOR Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina DIRECTOR David Dishke, Grand River Home Hardware, Caledonia, Ontario DIRECTOR Steve Fusek, Fusek’s True Value, Indianapolis SECRETARY-TREASURER Bill Lee, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Adam Busscher, Picton Home Hardware, Picton, Ontario

HARDWARE RETAILING | May 2017

Contents

100

MAY 2017 | VOLUME 212 | ISSUE 5

CATEGORY SPOTLIGHT

Farm, Pet and Ranch

Knowing your customers’ needs for their everyday projects is part of the job description for retailers. What about your customers’ specific needs? Farm, pet and ranch customers explain how you can exceed their expectations with product knowledge, product mix and community engagement.

COVER FEATURE

“Educating customers up

front on how to take care of their animals—that goes hand in hand with getting the sale.

”

78 OPERATIONS

120 CATEGORY FEATURE

158 INDUSTRY EVENTS

Target 360 In this in-depth feature, we set our sights on Target Corp. The retailer opened in the 1960s and has grown to a $50 billion-per-year operation. Now, learn how Target plans to address omnichannel retailing and differentiate itself.

Core Category All-Stars: Part II Last month, we covered the best in electrical, plumbing and lawn and garden in this two-part merchandising series. In Part II, we showcase best-in-class merchandising in hardware and fasteners, paint and tools.

NRHA All-Industry Conference at the National Hardware Show® This comprehensive guide covers the many opportunities available for independent retailers at the 2017 NRHA All-Industry Conference, held in conjunction with the National Hardware Show®.

HARDWARE RETAILING | May 2017

Crush it. Grip hard. Then grip harder. New Crescent Locking Pliers. DEEP RIB

KNURL

HEX KEY

INCLUDED

ANGLED

TEETH

MAX

Adjuster knob has hex key recess for extra tightening — even after pliers are locked down

ATG-3266

Deep rib knurl on adjuster knob for easier gripping and turning

GRIP

Angled tooth design for maximum torque

Cushioned release lever for added comfort

www.CrescentTool.com

More Innovation from

When Precision is Your Top Priority

So tough you’ll never think of scissors the same way again.

New Micrometer Torque Wrenches are dependable, fast, and accurate

Reversible ratcheting heads Audible target torque alert n Laser-etched markings n n

www.CrescentTool.com

www.wisstool.com

Contents

132

INDUSTRY AWARDS

Top Guns Special Edition: Meet the Young Guns

For this year’s Top Guns program, NRHA and Hardware Retailing are mixing things up by recognizing the industry’s next-generation leaders. These retailers have excelled in their roles, pushing to innovate and differentiate their operations.

182 EXPERT COLUMN

Retail Is... Technology Retail consultant Dustin Kaehr says staying current with technology trends—even with something as simple as providing guest Wi-Fi— can help boost your customer experience score. Want to Hear More? Kaehr is speaking at the NRHA All-Industry Conference at the National Hardware Show® at 9:30 a.m. Tuesday, May 9, on the NRHA Village Stage.

134

Scott Jerousek Farm and Home Hardware

140

Jonathan Miller Miller Hardware

190 INDUSTRY EVENTS

The Packaging and Merchandising Awards These manufacturers designed and produced this year’s best of the best in product packaging and merchandising. Want to See More? All of the entries will be on display in the NRHA Village at the NRHA All-Industry Conference.

Newton 146 Diana Bay Hardware

Woods 152 Matt Woods Hardware

Don’t Miss the Top Guns Presentation! Hear how these retailers plan for future growth and success at 1 p.m. Wednesday, May 10, on the NRHA Village Stage.

172 EXPERT Q&A

Why the Store Still Matters Jim Robisch, senior partner with The Farnsworth Group, shares why retailers must not lose sight of in-store customer experiences. Want to Hear More? Learn more from Robisch during his presentation, “The Store is STILL Important,” at 11 a.m. Wednesday, May 10, on the NRHA Village Stage.

HARDWARE RETAILING | May 2017

Departments 8 . . . . . . . . . . . . . . . . . . On the Web 10 . . . . . . . . . Independent Thinking 12 . . . . . . . .Taking Care of Business 16 . . . . . . . . . . . . . . . . NRHA News 26 . . . . . . . . . . . . . . . . . . . . . Trends 30 . . . . . . . . Spring Product Preview 64 . . . . . . . . . . . . . . . . . . Checkouts 208 . . . . . . . .Newsmakers/Calendar 214 . . . . . . . . . . . . . . The Last Word

On the Cover Darrell Kingsland, owner of BDK Feed & Supply in Blanchester, Ohio, serves a variety of farm, pet and ranch customers who all have specialized needs . NRHA photo by Graeme Haase

WE KNOW

RETAIL PLUMBING For over 64 years, Lincoln Products has been providing innovative packaging solutions and turnkey plumbing programs to both retail and wholesale markets. Our capabilities are your advantage. World class distribution network, global sourcing, depth of inventory, knowledgeable associates, genuine OEM repair parts and merchandising solutions make Lincoln the retail leader.

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On the Web

360 LIBRARY

CORE CATEGORY ALL-STARS PART 2

An In-depth Look at Big-Box Retailers

Merchandising Tips from Some of the Best

What’s really going on with your big-box competitors? In recent years, Hardware Retailing has compiled stories on four massive retail companies to give you 360-degree views of the companies, including history, growth initiatives, expert insight and more. View them all at TheRedT.com/big-box-360s.

NRHA CONFERENCE

Plan Out Your Schedule On Page 158, we give you a full overview of what’s going on in the NRHA Village at the 2017 NRHA All-Industry Conference and National Hardware Show®. In addition to the information in the magazine, you can visit nrhaconference.com for a full seminar schedule, information about awards ceremonies, speaker details and more. The website is your tool to get all the information you need to plan your conference schedule.

PACKAGING & MERCHANDISING

Experts Identify Top Trends During judging for NRHA’s Packaging & Merchandising Awards, our panel of industry experts shared thoughts on today’s packaging trends. Watch the video at TheRedT.com/pma-trends to know what you should keep an eye out for when scouting new products. 8

HARDWARE RETAILING | May 2017

Strong, creative merchandising leads to more sales. We’re bringing you Part II of the Core Category All-Stars to give you new ideas for merchandising your hardware and fasteners, paint and tool departments. See a full gallery of real-life examples at TheRedT.com/all-stars.

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is geared toward all levels of employees. Visit nrha.org/freetraining to download this month’s lesson, listed below. PDF: Pet Product FAQs Does your staff know the answer to common questions your customers might ask about their pets and the supplies they need? Use this resource as a refresher.

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

Independent Thinking

Your Industry’s Main Event

he May issue of Hardware Retailing magazine is the “National Hardware Show® Issue.” The National Hardware Show and the NRHA All-Industry Conference, which is held in conjunction with the show, is the largest event that welcomes every retailer, vendor and distributor that sells, or hopes to sell, home improvement products in this marketplace. If you’re an independent retailer, the NRHA Village is your home at the show. Use it to meet with people, take breaks or listen to one of many speakers on tap. There are many events throughout the conference designed for independent retailers, including Top Guns, the Independent Retailer Reception and the Retailers’ Choice awards. In addition, it’s a place to introduce yourself to the 2017 Young Retailers of the Year, who will be honored in a ceremony prior to the opening of the conference. The National Hardware Show is the place to see the latest product trends and vendors. It’s a place to rub elbows with independent retailers from every wholesale brand, as well as big-box retailers, specialty retailers and online players. You’re sure to return home from the show with a wealth of new ideas and a better perspective about the future of home improvement retailing.

Your Association’s Industry Role

“NRHA’s service

mission is summed up in this simple phrase: Educate, Advocate, Associate.

Like the National Hardware Show, NRHA serves as a unifying force in the industry. Your association’s mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. NRHA serves as a place where all independents and channel partners come together, voice concerns and learn from each other. NRHA’s service mission is summed up in this simple phrase: Educate, Advocate, Associate. Here’s how we do it.

”

• Educate. Hardware Retailing magazine reaches about 264,000 readers every month through its print, web and e-newsletter formats, making this free monthly “how-to guide” to retail best practices one of NHRA’s most visible education tools. NRHA also offers various free and paid training resources for everything from hardware and building materials to merchandising and selling skills. The NRHA Retail Leadership Institute offers the Retail Management Certification Program and the Foundations of Leadership Program, which are retail education programs.

• Advocate. NRHA is the voice of independents to their channel partners and government representatives. The NRHA State of Independents Conference, held each year in December, gathers channel partners to hear the results of research with independents that explore common concerns. Independents are invited to come to the new Small Business and Government Roundtable, held June 28-29, to voice top concerns to our government leaders.

• Associate. Through events like the National Hardware Show, industry roundtables and other retailer events, your association provides a place to learn and share ideas with others retailers. We invite you to get involved with NRHA in any way that will help make your business better. Get in touch and we can help you get started.

Bill Lee, President and CEO

blee@nrha.org

HARDWARE RETAILING | May 2017

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Taking Care of Business

Dream a Little Dream

“You might not reach

your goal as quickly as you would like, or the path to it might not be so smooth, but if it is truly your dream, nothing should stop you from getting there.

”

here are some exercises in life that can be both joyful and depressing at the same time—take, for instance, seeing your youngest child head off to college or maybe eating an entire pizza by yourself while watching Netflix. But there is one of these self-inflicted events that most everyone has engaged in at one point or another: the old “If I won the lottery...” conversation. One thing I find fascinating about this subject is hearing all the things people would do with their found riches. Almost all of us start with an altruistic binge: helping family, friends, the church and other charities. Once these obligatory niceties are out of the way (and we’ve made sure others are impressed with our giving hearts), we move on to the fun stuff. The cars. The trips. The toys. Recently, the organizers of the National Hardware Show® asked independent home improvement retailers to play a real-life game of “what if” as part of their Reimagine Retail program. This month, at the National Hardware Show in Las Vegas, they are awarding $100,000 to one independent home improvement operator to realize his or her dreams. There are a number of reasons the National Hardware Show is sponsoring this program. For starters, they recognize how important independent retailers are to the overall health of the home improvement industry and want to encourage innovation within the channel. Second, they want to really cast a spotlight on all of the fantastic ways independent operators continue to advance the retail model. This is the first year of the Reimagine Retail program, and the National Hardware Show has said they would like it to be an annual event tied to the show. After the winner is named at this year’s show, we plan to follow their story and share insights into how the project came together and the ultimate impact it has on their operation. We also hope to share some of the other exciting ideas from other entries to help create a sort of “idea bank” for possible business improvement projects. I am very excited to have a small role in this process, and it will be rather thrilling to watch a retailer see their concept become reality. Outside of what happens to the winner of the Reimagine Retail program, though, I want to pose one more question about the whole lottery conversation: If your lottery-fueled dreams are to write the next great American novel, sail the Caribbean or visit the Grand Canyon, why wait for the winning ticket? Sure, having all the money in the world can help fund your dreams, but not having the money handed to you doesn’t necessarily end them. Are there other ways you can achieve your vision? If so, how do you start working toward them, hour by hour, day by day, until you reach them? The same is true for your business. If you have a vision of where you want to take your operation, you can’t wait to win a prize. You have to start finding a way to make those dreams a reality. You might not reach your goal as quickly as you would like, or the path to it might not be so smooth, but if it is truly your dream, nothing should stop you from getting there. Why not start today? Oh, and by the way, if I win the lottery, I hope you like whomever they find to write this column next. I will be too busy guzzling rum drinks out of a coconut on my yacht to do much writing.

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | May 2017

Nevada Hardware

Handy Ace Hardware, Mesa, AZ

Moore Lumber & Hardware, Castle Rock, CO

Stockbridge Fort White Ace Hardware, Hardware, Stockbridge, MI Fort White, FL Crete Ace Hardware, Crete, NE

Courtland Hearth & Hardware, Bel Air & Fallston, MD

Jerry’s Paint & Hardware, Narragansett, RI

Martens Ace Hardware, Waupun, WI

Elk Point Ace Hardware, Elk Point, SD

McGuckin Hardware, Boulder, CO Dexter Ace Hardware, Dexter, ME

Hermon Ace Hardware, Hermon, ME

Ace Hardware, Spring Valley, MN

Cashman’s Ace Hardware, & Rental, Nevada, IA East Berlin, PA Mehama Ace Hardware, Stayton, OR

Cotton’s Ace Hardware, Ste. Genevieve, MO

Welcome to the Ace Family!

Over 370 retailers have converted to Ace since 2011!

Rothbury Hardware, Rothbury, MI

Big Star Ace Hardware, Las Cruces, NM

Lindner Ace-Little Chute, Little Chute, WI

Idaho Lumber & Ace Hardware, Hailey, ID

Ace Marketplace, Oceana Builders Kamiah, ID Supply, Shelby, MI

Apple Lumber, Luling, Yorktown & Smithville, TX

Fresno AG Hardware, Fresno, CA

Noxon Hardware, Boston’s Ace Hardware, Page, AZ Braley North Creek & Warrensburg, NY

J & M Sully’s Ace Hardware, Ace Hardware, Beulah, ND Sullivan, MO

Westmoreland Ace Hardware, Portland, OR Hope Hardware & Plumbing, Colchester, CT

Service. Convenience. Quality. myace.com 630.990.6900 TXT

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NRHA News

NRHA’s Retail Leadership Institute Setting the Pace for Growth

any retailers across the industry are saying the same thing about employment: “We need help finding the right people to work in our stores and eventually lead our businesses” and “When we find those with potential, what can we do to keep them engaged and help them grow?” The North American Retail Hardware Association (NRHA) launched its Retail Leadership Institute in 2013 to focus on helping retailers develop their employees. The newest program to come out of the Institute, NRHA’s Foundations of Leadership Program, focuses specifically on developing leadership and personal development. The online program is designed to help prepare next-generation leaders, such as store managers and other employees with growth potential. NRHA created the program with the help of Ball State University, STIHL Inc. and a consortium of independent retailers, including Aubuchon Hardware, Buchheit, Friedman’s Home Improvement, Foxworth-Galbraith, Jerry’s Home Improvement, Sunshine Ace Hardware and Wilco Farm Stores. Improving leadership skills and performance starts with the student’s learning style. This class is designed to help students discover their core identity and use it effectively when building and leading teams. The course covers topics that include: • Understanding Me • Understanding My Strengths • Leadership and Me • Problem-Solving • Constructive Conflict and Communication • Communication Skills • Developing Talent • Building a Team Retailers looking for a more robust program can have key employees participate in NRHA’s Retail Management Certification Program (RMCP). This college-level, industryfocused course allows next-generation leaders to learn skills in all of the core areas of running a business, including operations, finance, marketing and more. As NRHA’s initial program launched through the Institute, RMCP continues to grow and has resulted in more than 110 graduates and over $6.5 million combined return on investment for business owners. After students complete either program, they and their sponsors can continue developing leadership skills at NRHA’s new annual conference. The NRHA STIHL Foundations of Leadership Conference invites students and business owners to a two-day event that will allow the group to explore concepts of leadership in an exciting, inspiring and highly interactive environment. Attendees will learn more about developing personal leadership skills, building stronger teams to fuel future growth for their businesses and much more.

HARDWARE RETAILING | May 2017

Course Benefits The Foundations of Leadership Program is a 16-week introductory leadership course providing students with: • A flexible learning schedule • An online learning environment • A small class size • An industry-relevant curriculum • Top instructors in leadership development • An applied learning focus • A final business assessment project For more information about any of NRHA’s Retail Leadership Institute programs or events, please visit nrha.org/RLI or contact Scott Wright, executive director of the Retail Leadership Institute, at 317-275-9417 or swright@nrha.org.

RIP OPEN A BAG OF

CONFIDENCE.

The Pro’s most trusted brand of bagged concrete. Sakrete has been supporting professionals and homeowners alike for over 80 years. From prep-work to installations and repairs, Sakrete has the right product for every application. With unmatched quality and service, we make it easy to offer your customers the best in concrete, mortar and stucco mixes.

Concrete, Mortar and Stucco Mixes Maintenance and Repair Products for Concrete and Asphalt

T HE PR O ’ S CHO I CE | SA K R ET E. CO M

NRHA News

How to Increase Sales This Season

hen a customer walks into your store looking for one item, do your employees recognize it as an opportunity to make an add-on sale? Selling a customer an entire project instead of one item is a sure way to increase sales, but in order to make those add-on sales happen, your staff should know how to complete and sell the most common DIY projects that customers will likely be searching for. How can they obtain this information? Enter: NRHA’s Project PRO. This course is a project-based sales training program that covers: • The impact that project selling can have on a company’s financial success. • Video tutorials showing how to complete the most common DIY projects. • How to answer your customers’ most frequently asked questions. • How to better recognize your customers’ product needs. • How to increase transaction size using add-on sales and upselling techniques. Send your employees through this course so the next time a customer comes in for paint, your employees will recognize what type of project the customer may be working on and what other products he or she may need. Project PRO is one of several online training programs available to NRHA training members. Other courses include the Basic Training Course in Hardware Retailing, Basic Training Course in Building Materials Retailing, Basic Training Course in Selling Skills, Basic Training Course in Merchandising, Our Three Pennies of Profit and the Loss Prevention Series.

Course Modules Offered NRHA’s Project PRO course offers modules on the most popular DIY projects, including: • Lawn mower care • Lawn repair • Spring lawn care • Replacing a faucet • Electrical fixtures

• Refinishing an antique • Priming and painting interior walls

• Exterior painting

• Installing electrical outlets and switches

• Home weatherization

• Fixing a leaky toilet

• Repairing drywall

• Deck maintenance and repair.

• Plumbing supply lines

• Planting and pruning trees and shrubs

HARDWARE RETAILING | May 2017

If you’re already an NRHA training member, you can access Project PRO and other courses in the training section of nrha.org behind the member login. If you’re not currently an NRHA training member, visit nrha.org/membership for details on the programs available and information on how to join. Or, NRHA’s Member Services team at 800-772-4424 or nrha@nrha.org.

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

IT’S NEVER BEEN EASIER TO

PAINT LIKE A PRO

Find out more at TITANHEA.COM

NRHA News

2016 Do You Value Industry Research?

o make sure you have the resources you need to do what makes sense for your company, NRHA regularly conducts research in several areas, including financials, operations, products and more. But in order to do this, we need your help. The association is looking for retailers who value fresh, pertinent research on trends and best practices in the independent home improvement sector to join its Retailer Research Panel. When you join, you’ll be part of a group of more than 200 retailers that completes monthly surveys used for research published in Hardware Retailing and various NRHA research reports and projects. Regular participants are entered to win a $250 gift card and exclusive access to proprietary research. The Retailer Research Panel has assisted in the following NRHA studies and projects: • Outdoor Living Trends Study • 2016 Social Media Study • 2015 State of Pricing Study • 2016 Retailer’s Website Usage • Proprietary research presented at the NRHA State of Independents Conference

HARDWARE RETAILING | May 2017

Social Media Usage Study Retailers’ Perspectives on Improving Their Social Media Presence and Which Platforms Work Best

For more information about the NRHA Retailer Research Panel, or to join, visit TheRedT.com/join-the-panel. To view NRHA’s studies available to the public, visit TheRedT.com/research-guides.

NRHA News

Stay Connected at the Conference

eetings with your current manufacturer reps, browsing new products, catching up with friends, attending seminars—there is a lot on your to-do list for the NRHA All-Industry Conference, held in conjunction with the National Hardware Show®. We get it, and we want to make it easy for you to keep up with what’s happening in the NRHA Village. This year, you can find all the information you need in real-time through NRHA’s Facebook and Twitter. Search #NRHAConference for the latest updates. We’ll be posting photos, videos and schedule updates for what’s happening and who’s presenting on the NRHA Village Stage, fun behind-the-scenes details, insights and inspiration shared during awards ceremonies and seminars and more. For more information about the NRHA All-Industry Conference, visit nrhaconference.com and read our story on Page 158.

Be sure to follow us! • •

Facebook: @NorthAmericanRetailHardwareAssociation Twitter: @NRHA_Official

introducing… ®

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NRHA News

Honor Mom and Dad by Promoting Shop Local

id you know purchases made at a local home improvement store keep twice as much money in your community as the same purchases made at a big box store? This Mother’s Day and Father’s Day, let your town know! According to the National Retail Federation, in 2016, shoppers planned to spend more than $3.2 billion on Mother’s Day and Father’s Day gifts, which included categories like housewares and gardening, tools and appliances, sporting goods and leisure items and automotive accessories. To make sure your store stands out as a destination for these gifts and to promote the impact that spending money at local small businesses can have on a community, NRHA and Independent We Stand developed free Mother’s Day and Father’s Day shop-local signage, using data from NRHA’s Home Sweet Home Study. This free signage package includes posters, shelf talkers, bag stuffers, a press release, social media photos and social media post ideas. To download these free marketing materials, visit TheRedT.com/momdad. The full study and other marketing materials that can be used all year can be downloaded at TheRedT.com/shoplocal.

Spring, summer, winter, and fall.

Tillers

Gas Log Splitters

Power Wheelbarrows

Snow Blowers

Get a FREE GIFT when you visit us at National Hardware Show 2017 Booth #12563 or visit yardmax.com/year-round ®

HARDWARE RETAILING | May 2017

Trends Selling to Animal Owners, Even If Pet Products Aren’t Your Niche Millions of U.S. households own animals, and on any given day, these owners are in the market for everything from dog sweaters to pet-friendly home renovations.

6 Pet Product Trends for 2017

According to the National Association of Realtors, nearly 60 percent of U.S. households own animals, and about 52 percent of animal owners made home renovations in 2016 with their pets in mind.

Even if you don’t have space in your store for niche animal products, you can still sell an array of items to pet owners.

Functional Pet Beds That Are Easy to Clean and Are Durable

Applied to Retail If you’re already strong in the pet category, keep trends in mind so you can continue offering customers products that are popular. Trends in 2017 include items that are made in the USA, pet beds that are easy to clean and designer cat clothing, according to research firm Packaged Facts.

Designer-Brand Cat Clothing

If animal products aren’t your niche, then consider what your business may already stock that isn’t pet-specific but can still serve animal owners.

Promote the materials owners will look for when planning pet-related home projects, such as fencing. Build a creative, handmade doghouse and display it with a short piece of fence that has products hanging from it. You can give customers project ideas through an attractive display showcasing the supplies you stock.

Homeowners’ Top Pet-Related Projects Of the 52 percent of owners who made home renovations to accommodate animals, these were the top three projects:

Products Made in the USA

Food and Water Bowls Designed to Improve Digestion and Reduce Neck Strain

Maximum Visibility Pet Collars

23% Added a Fence to Their Yard

12% Added a Dog Door

Installed Laminate Flooring Source: 2017 NAR Animal House: Remodeling Impact, National Association of Realtors

HARDWARE RETAILING | May 2017

Pet Carriers That Look Like Purses

Source: Durable Dog and Cat Petcare Products in the U.S., Packaged Facts

Dave Guiterrez is proud that his son Scott, daughter-in-law Rory and son Jeff now operate the business.

38 YEARS LATER, TRUE VALUE STILL FEELS LIKE HOME “True Value® is family. The company has stood by our side and helped our business grow for 38 years. We know everyone cares about our success. They provide innovative business solutions and resources to help us stay competitive,” says Scott Guiterrez. “When my dad Dave started Penn Valley True Value thirty-eight years ago, he fulfilled his dream of opening a great business.”

“Today, my brother Jeff and I each own one of the two stores our father founded.” “People love coming into our store—especially women,” says Scott. “Pinterest and other crafty websites lead them here. We do our best to engage these customers.” The Guiterrez family is looking forward to the next 38 years.

FREEDOM TO RUN THEIR COMPANY THEIR WAY WITHOUT INTERFERENCE

FIRST QUARTER 2017 RESULTS

+11% SALES INCREASE

+7%

GROSS MARGIN DOLLARS

+25% +5% HOUSEWARES & CLEANING

SALES TRANSACTIONS

Penn Valley True Value proudly shares the business results the company achieved as a member of our co-op. (Your individual results may vary.)

Spring Product Preview

nother winter has come and gone, and the busy spring selling season returns in its place. The time for outdoor projects and fun as well as the return of spring cleaning will have consumers looking for the latest products to help them along the way. As a retailer, be prepared to supply them what they need. While you plan for the busy selling season, take a look at the annual Spring Product Preview on the following pages. This preview will give you a head

HARDWARE RETAILING | May 2017

start discovering the latest products to hit the market. Products featured include a top-of-the-line backpack spraying system to the most in-demand backyard grilling system, and everything in between. After browsing through what manufacturers have to offer, be sure to visit them in person at the 2017 National Hardware Show®, May 9-11 in Las Vegas. For more information about the National Hardware Show, visit nationalhardwareshow.com.

Spring Product Preview

2 1

3 1. Blade Dispenser

3. Wood Repair Epoxy

The SEB100AD Single Edge Blade Dispenser provides the quickest and most convenient blade access by utilizing a unique spring mechanism. The clear case enables users to remove one blade at a time while easily seeing how many blades remain. Blades are not paper wrapped, so they can be used immediately. The dispenser holds 100 high-quality, No. 9 single-edge blades. Used blades can be safely disposed of in a built-in compartment.

LiquidWood® and WoodEpox® make permanent, cost-effective repairs to rotted or damaged wood. The products are available separately yet work together; LiquidWood serves as a primer for WoodEpox. LiquidWood is ideal for regenerating and waterproofing rotted, dried-out or spongy window sills, thresholds, window and door frames and millwork of all kinds. WoodEpox bonds permanently with high strength to most surfaces. It fills cracks, holes and voids of any size without the shrinking and crumbling of common wood fillers. It can replace or add missing or new sections in window frames and sills, furniture, sculptures, structural and decorative components both indoors and outdoors.

Allway Tools, Inc. 718-792-3636 or allwaytools.com

2. Wood Protectant Protect and enhance wood with the flexibility and convenience of water. The Total Wood Protectant WS Series is a unique combination of chemicals that penetrates deep into wood without surface film buildup, and it highlights existing grain patterns with clarity and warmth. The WS series contains water repellents, which inhibit the damage caused by water absorption and contain carefully selected mildewcides that deter the growth of mildew on the surface of the stain. TWP WS is a low volatile organic compound formula, making it compliant in all 50 states. All of the benefits of TWP are now available in a water-based formula. Amteco Products 800-969-4811 or amteco.com

HARDWARE RETAILING | May 2017

Abatron, Inc. 800-445-1754 or abatron.com

4. Electronic Pest Deterrent The Pest-X Electronic Pest Chaser is easy-to-use and effective. It is ideal for use in homes and offices. When plugged into a wall outlet, it sends out ultrasonic signals, which are above the average hearing range of humans, cats and dogs but irritate common rodents and insects. Pest-X is available in one- or two-pack sizes. Bird-X Inc. 800-662-5021 or bird-x.com

Spring Product Preview

6 5. Hummingbird Feeder The Hummer High Rise™ by Cole’s Wild Bird is a hummingbird feeder with ergonomically designed elevated perches to provide comfortable, stress-free feeding for hummingbirds. The birds are more relaxed when they eat, and bird watchers get a better view of them around the feeder while they perch. The Hummer High Rise™ is easy to fill and dishwasher-safe, and it comes with a built-in ant moat, which stops ants from invading the feeder and spoiling the nectar. Cole’s Wild Bird Products Company 877-426-8882 or coleswildbird.com

6. Knife and Scissor Sharpener One of DMT’s most popular tools, the Single Sided Diafold® sharpener works with many edged DIY and home tools like scissors, kitchen knives and shears, wire snips, utility knives and a wide range of garden tools. Faster than conventional stones, the sharpener’s fine diamond grit provides a razor-sharp edge with just a few strokes and doesn’t require any oils. Folding plastic handles protect the sharpener when it’s not in use, and its durable construction will provide years of consistent performance and reliable service. The sharpener is made in the USA. Diamond Machining Technology 800-666-4368 or dmtsharp.com

HARDWARE RETAILING | May 2017

Power Tool Accessories and Hand Tools

Your name depends on ours...

What company is a cut above the rest?

8 7. Bedbug Room Fogger Bonide’s new Dual Action® Bedbug Room Fogger has five active ingredients to kill bedbugs and their eggs for long-term control. The three-pack box contains 2-ounce aerosol room foggers. Each canister is designed to treat an average-sized bedroom. Additional new Dual Action® products include liquid ready-to-use and an aerosol spray. Bonide Products Inc. 315-736-8231 or bonide.com

8. Multifunctional Headwear UV multifunctional headwear from Buff, Inc. is a simple, innovative, effective layer. It can be worn 12 different ways–from cap to balaclava, neck gaiter to hair tie. For best performance, this headwear boasts built-in sun protection, which blocks up to 95 percent of harmful rays. The COOLMAX® PRO fiber wicks moisture and dries fast for comfort on the move, while the Polygiene® treatment resists odors and the unique seamless construction minimizes potential irritation. Buff, Inc. 707-569-9009 or buffusa.com

Innovation Rules May 2017 | HARDWARE RETAILING

Spring Product Preview

9. Classic Measuring Tape The Lufkin Legacy Series™ measuring tapes feature a classically designed exterior, but inside they’re built for performance. The measuring tapes are easy to use and durable, featuring eight feet of standout and quad-riveted end hooks on 1-inch-wide blade models. The ribbed Hi-Viz® orange accent stripe provides a better grip. Apex Tool Group 866-907-9716 or lufkintool.com

10. Multi-Purpose Lighter The EZ-Squeeze™ Multi-Purpose Lighter from Scripto® has an adult-friendly squeeze-grip ignition for ease-of-use. It is designed for all indoor and outdoor lighting activities. It features a refillable tank, ergonomic design, visible fuel supply, angled nozzle and a built-in hook for storage. The lighters are available in four colors. Calico Brands 800-544-4837 or calicobrands.com

HARDWARE RETAILING | May 2017

NEW

11 11. Fire Starter The Mini Dragon™ JR fire starter can be connected to a standard 1-pound fuel cylinder. The fire starter works well when camping, as it can even start damp or wet wood. It is also great for fire pits, barbecues, chimneys, heating, melting and thawing. The Mini Dragon™ JR has 25,000 BTU’s of power, which allows for up to two hours of flaming. It comes fully assembled and is made in the USA. Flame Engineering, Inc. 800-255-2469 or flameengineering.com

ONE TON

TWO TON

FOUR TON

12. Rechargeable Flashlight The Polysteel 600R flashlight features a patented rechargeable system with Dual Power, allowing it to run on lithium or alkaline batteries. The lithium battery doubles as a power bank with a USB-out port that enables the charging of other devices. It is waterproof, drop-proof and crush-proof and includes a Pure Beam Optics system with a twist focus. It is available in five different colors. COAST Products, Inc. 800-426-5858 or coastportland.com

3/4 -Ton Rope Puller

1-Ton Strap Puller

Fence Pliers

1/2-Ton Wire Grip

Woven Wire Stretcher

Fencing Wire Stretcher

Contact Ancra Consumer / Industrial Customer Service at 800-626-8353 www.ancra.com May 2017 | HARDWARE RETAILING

Spring Product Preview

463371316

463672016

13. Horizontal Winches

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

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

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

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

HARDWARE RETAILING | May 2017

The new DLx line of products features 1,200-, 1,500-, 1,900- or 2,300-pound winches for horizontal pulling applications. Additionally, they have a 1,500-pound swivel tongue jack. All winches feature a streamlined design with a charcoal gray finish and deluxe handle grip that’s softer and fits a user's hand better. The winches have a patented reversible ratchet pawl and a 15-, 20- or 25-foot strap with hook installed. The jack has a heavy-duty, 8-inch slotted independent wheel, dual grease fittings to keep interior parts fully lubricated, bushing between tubes to prevent scratching and tighten fit and a vinyl sleeve on a ½-inch swivel pin to make swiveling comfortable. Dutton-Lainson Company 402-462-4141 or dutton-lainson.com

See Us at The National Hardware Show Booth # 11307

14 FABRICS FOR EVERY REASON. PRODUCTS FOR EVERY SEASON. DeWitt PRO-5 Weed-Barrier ® Industry’s Best 5 oz. Fabric, PRO-5 blocks weeds, increases growth and conserves water. It is approved by leading landscape architects.

conserves

WATER

BY DESIGN

Polytuf Black Stallion®Mesh Tarps The Black Stallion®Mesh Tarps are ideally suited for a multitude of uses. Great for use as a truck cover, shade cloth cover, netting, landscaping lawn care and nurseries.

NEW

14. Well Pump The Superior Pump 94705 ¾-Horsepower Shallow Well Jet Pump features a rugged cast iron pump body and is designed to work with wells up to 25 feet deep. The pump features a fully adjustable pressure switch preset at 20/40 psi. A dual voltage motor, with built-in thermal overload protection, can be set for 115 or 230 volts. A glass filled thermoplastic impeller and diffuser are designed to move up to 708 gallons per hour at 1 foot of lift. The pump is built using a cast iron seal plate and offers 1-1/4 inch NPT suction and 1 inch NPT discharge. Superior Pump 800-495-9278 or superiorpump.com

15. Battery Powered Backpack Sprayer The Chapin 24V Battery Powered Backpack Sprayer features a 24-volt lithium ion battery that provides two hours of continuous spraying and up to 58 gallons on a single charge. The operating pressure ranges from 35 to 40 PSi and features a 35-foot maximum horizontal spray stream. Santoprene seals in the pump provide chemical resistance. Padded straps offer comfort for extended use. The sprayer weighs nearly 40 percent less than competitive units, and a battery charger is included. Chapin International, Inc. 800-950-4458 or chapinmfg.com

Polytuf SUNSHIELD-UVI ® Silver/Black Tarp

SUNSHIELD-UVI ® used with the reflective silver side up will divert both heat and ultraviolet light, while using the black side up will absorb heat/divert ultraviolet light. Both sides are heat and cold resistant.

NEW

One Company. One Call. Over 600 Products! 800.888.9669 • dewittcompany.com

May 2017 | HARDWARE RETAILING

Spring Product Preview

16. Chalk Paint Additive

17. Automatic Paint Shaker

Howard’s Chalk-Tique Powder Additive for paint was created specifically for turning any latex or water-based paint into chalk-style paint. The additive gives paint a thick, creamy texture that adheres to any surface, such as wood, glass, ceramic and more. It requires minimal prep-work and adds life to furniture finishes that are beyond restoration.

HERO’s new S2650 5G automatic shaker is a quiet, sturdy and reliable 5-gallon shaker with a small footprint designed for a variety of containers in many shapes and sizes. It incorporates vibrational technology with a clamping system that mixes a 1/2-pint to a 5-gallon container. Mix 1-, 2-, 3- or 4-gallon cans, or a case of 4 gallons. The shaker features easy-to-use digital controls, a reversible door and stainless steel tray for easy loading.

Howard Products, Inc. 805-227-1000 or chalktique.com

HERO Products Group 800-494-4376 or hero.ca

Drywall and Plaster Hand Tools

“Hand Krafted” in the USA Since 1981 Over 5,000 Concrete, Masonry, Drywall, Plaster, Asphalt, Tile and Floor Covering Tools 913.422.4848 800.422.2448 www.KraftTool.com 40

HARDWARE RETAILING | May 2017

Tile and Flooring Tools

Concrete Finishing Hand Tools

19 18 18. Workforce Management Software

19. Multi-Purpose Pump

Labor is one of the largest expenses for a retailer, so profits depend on getting employee schedules right. Mistakes result in costly overstaffing or disappointed customers that move on to other stores. Epicor Scheduling+™ makes staff scheduling easier, faster and more accurate. Optimize your employee scheduling and discover how you can minimize labor costs, improve profits and deliver even better customer service.

The Red Lion® MPFV12CAMO Multi-Purpose Pump allows the transfer of water in remote and semi-remote locations. The pump has a handle, camouflage detailing, a stainless steel pump head and a steel motor cover. It has a dual thread intake and discharge with both a 3/4-inch male garden hose thread and 3/8-inch female thread for PVC pipe connection. Its vehicle power adapter with 6-foot power cord works with any 15-amp (or greater), 12-volt DC vehicle outlet.

Epicor Software Corporation 800-999-1809 or epicor.com

Red Lion 844-250-4981 or redlionproducts.com

May 2017 | HARDWARE RETAILING

Spring Product Preview

20. Water Heater Accessory The new SmartBoost by EcoSmart allows homeowners to enjoy hot water for almost twice as long, so everyone in the home can take a hot shower. SmartBoost installs directly on the outlet of a tank and increases the hot water delivery of any tank. When the tank outlet water drops below a set temperature, SmartBoost activates and heats the water to the desired temperature. EcoSmart Green Energy Products 877-474-6473 or ecosmartboost.com

21. Kamado Charcoal Grill The Kamander™ Charcoal Grill is made of an insulated double-wall steel, which heats quickly and evenly, sealing in heat and moisture. The convenient and innovative controls maintain temperatures for any type of cooking, from high-temperature searing and cooking to low-and-slow smoking. Char-Broil LLC. 866-239-6777 or charbroil.com

HARDWARE RETAILING | May 2017

Convenience Products 800-325-6180 or www.touch-n-foam.com

23. Multi-Purpose Work Gloves The Kobolt Denim is a versatile, multi-purpose pair of work gloves. The gloves are made of flexible goatskin leather to provide all-day comfort. With a stretch denim back and reinforced thumb and fingertips, the gloves are breathable and durable. Use them for projects that require great fit and dexterity, such as construction, gardening and yard work, driving and equipment operation, hand tool use and precision handwork. Hestra Job USA 888-939-9969 or hestrajobusa.com

•B

ees

BLOCKS •

•

Touch ‘n Foam sealants expand to fill gaps and cracks, creating an effective barrier against the loss of heated (or cooled) air. The sealants ensure homeowners get the most out of standard insulation and HVAC systems. Touch ‘n Foam sealants are also great for blocking moisture, dust, sound and insects. The product line includes a maximum expanding sealant and a minimum expanding sealant, a flame-resistant sealant, an exterior filler adhesive, a window and door sealant and a latex formula sealant.

•

Mic e

22. Spray Foam Insulation

ts • Roaches Ba

nts •A

Bird s•

id e

rs • Insec

TAKE A STAND AGAINST MICE. Mouse Shield™ contains an EPA-registered pesticide that protects the foam from attack by mice and other pests such as birds, bats and tree squirrels. It also blocks ants, roaches, spiders and bees. Use Mouse Shield to seal gaps and cracks inside your garage, attic, crawl space, basement, under sinks, around pipe/electrical penetrations or any areas where pests, insects or drafts can enter your home and living spaces. Discover Mouse Shield Premium Pest Block at Touch-n-Foam.com/pest – then order it for your customers today by contacting us at 1-800-325-6180.

Spring Product Preview

26 27 24. Ultra-Thin Painter’s Tape

26. Magnetic Pocket Level

FineLine™ Ultra Thin Painter’s Tape is designed to provide precision paint lines while preventing paint bleed and edge buildup. It can be used on walls, windows and trim, hardwood floors and more. This painter’s tape provides conformability and clean removal for up to seven days.

The Smarty Magnetic Pocket level by Kapro is the only pocket level on the market to incorporate OPTIVISION™ Red: a Kapro invention that creates a strong color definition around the horizontal bubble. The bubble edges are significantly easier to see, for fast and accurate placement between the vial’s reading lines. The level is made from durable cast aluminum and features gradient lines for slope measurement up to 2 percent. With strong magnets, shockproof rubber protectors and clip belt housing, it is designed for the professional tradesman.

Intertape Polymer Group 888-898-7834 or itape.com

25. Aviation Snips The Fiskars PowerGear® Aviation Snips feature PowerGear® technology with leverage-enhancing gears to provide 40 percent more power. A spring-assisted handle helps reduce hand fatigue, and heat-treated steel blades and a forged handle improve strength and durability. The snips have a lifetime warranty. Fiskars Corporation 866-348-5661 or fiskars.com

Kapro Tools Inc. 920-648-2900 or kapro.com

27. Oil-Base Enamel Diamond Brite Oil Base Enamel is a smooth, durable, stain-resistant finish of oil-based enamel. Diamond Brite offers quality enamel in 12 colors and three size variations. The formula is for use on wood, concrete, masonry, hardboard and metal. Diamond Brite Paint 773-254-7600 or diamondbritepaint.com

HARDWARE RETAILING | May 2017

POWERFULLY SIMPLE

POINT OF SALE SOLUTION The power of

EASY in today’s complicated world

Paladin offers a dynamic, yet easy-to-use point of sale solution, equipped with cutting-edge tools and services to keep your retail business growing and successful in today's ever-changing market. • Simple, easy-to-use interface • Intelligent and powerful inventory management

541.803.6060 paladinpointofsale.com/?NRHA

Spring Product Preview

28 29

28. Rodent Capture Cover

30. Cork Handle Trowel

The Snap-E® Cover is designed for rodent control in common areas. The product keeps captured rodents out of sight and safely keeps the Snap-E® Mousetraps (included) away from children and pets. The cover comes in a choice of four colors, including gray, black, brown and white. The Snap-E® Cover comes with one safety key to prevent accidental opening. Both the Snap-E® Cover and Mousetraps are manufactured in the USA.

The Kraft Tool Co. introduces the trowel Cork Handle, which provides a secure and comfortable grip. The trowel handle shape is designed for functionality and to reduce fatigue. Slightly curved with a wider back, the handle is made to fit the hand comfortably. The natural moisture wicking properties of cork keep the handle feeling dry. The soft texture of cork creates a more comfortable grip for contractors and DIYers. It is available exclusively on Kraft Tool’s Elite Series™ product line.

Kness Pest Defense 800-247-5062 or kness.com

Kraft Tool Co. 800-422-2448 or krafttool.com

29. Electric Pressure Washer

The K2000 electric pressure washer delivers 2,000 PSI of TruPressure™ cleaning power and is powered by a durable induction motor. It includes convenient features, such as an on and off foot switch, a handy storage bin and two removable half-gallon detergent tanks. No tools are needed for assembly, and users can set it up and start using the K2000 in five minutes or less. Backed by a three-year warranty, the K2000 is Kärcher’s top-of-the-range consumer electric pressure washer in North America.

31. All-Purpose Adhesive

Kärcher North America 877-722-6555 or karcher.com/us

Lighthouse for the Blind Industries 800-542-3697 or tearmender.com

HARDWARE RETAILING | May 2017

Simple Bond is a nontoxic, all-purpose adhesive that forms strong, flexible and water-resistant bonds to porous and non-porous materials including cement, brick, tile, metal, fabric, ceramic, wood and foam. It dries clear, making it ideal for home repairs, crafts, furniture repairs and more. Simple Bond joins the Tear Mender line of adhesives that also includes Tear Mender Instant Fabric & Leather Adhesive and Vinyl Mender Clear Adhesive Patch.

Spring Product Preview

32. Window and Solar Panel Cleaning Kit Mr. LongArm’s DIY Deluxe Window & Solar Panel Cleaning Kit allows users to extend their reach to clean windows and solar panels easily. The ProCurve® system can reach and clean difficult-to-access windows and solar panels. The HydraSoar® flow-thru extension pole with flow control shutoff valve and soft flow-thru brush expedites the cleaning process when a water supply is available. Mr. LongArm, Inc. 800-821-3508 or mrlongarm.com

33. Insect and Mosquito Trap The DYNATRAP® Insect and Mosquito Trap Sonata line of products come in a stone color with a design wrapped around the retaining cage. The DYNATRAP® uses a combination of UV-fluorescent light and carbon dioxide to lure insects. The powerful vacuum fan traps and collects insects into the retaining cage, helping users get rid of pests efficiently. Dynamic Solutions Worldwide, LLC. 877-403-8727 or dynatrap.com

HARDWARE RETAILING | May 2017

Come By & Visit Us! Booth

4909

Get A ‘New

Handle’

to Increase All Aerosol Product Sales!!!

34. Snack Display The new Jack Link's assortment and POP display rack was created for hardware retailers. The presentation was designed specifically for hardware store checkout schemes and is accessible from three sides to increase impulse sales. It features all of Jack Link’s new items as well as the core top sellers. This assortment of snacks is available for purchase through all major hardware cooperatives and wholesalers. Link Snacks, Inc. 715-466-2234 or jacklinks.com

Aerosol Spraying Made Easier &

MORE EFFICIENT!

35. Landscape Edging COL-MET is the largest manufacturer of commercial-grade steel landscape edging and galvanized nursery sign holders. COL-MET Steel Landscape edging products are available in green, brown and black powder-coat finishes. Unpainted or galvanized finish is also available on most products. Collier Metal Specialties 800-829-8225 or colmet.com

* than other products in this category.

SafeWorld™ Int’l., Inc.

info@safeworld.com 800.743.0115 U.S. Utility Patent # 8,272,542 & U.S. Design Pat. # D592,953 May 2017 | HARDWARE RETAILING

Spring Product Preview

• DURABLE POWDER COAT • STAYS IN PLACE FOR YEARS • EASY TO SHAPE AND INSTALL! • LONG LASTING SOLUTION TO RETAIN MULCH, ROCK AND STONE

37 36. Professional Fastener Line

COLORS: Green, Brown & Black Galvanized or Unpainted Available

As part of its new ProSeries line of fasteners, MiTek now offers Washer Head Structural Wood Screws and Bugle Head Structural Wood Screws. Available in lengths of 2.5 to 10 inches, hot-dipped galvanized and approved for exterior use, MiTek’s ProSeries also comes with in-line display options. MiTek 800-328-5934 or USPCustomerService@mii.com

37. Angle Selecting Cutter The Easy Cutter Ultimate by Midwest Products is a tool that features a unique angle selector with seven popular angles. The angles range from 45 degrees to 135 degrees, which allows the user to make multiple cuts of a particular angle. Users just select the angle and click the gauge into position. It can cut wood strips up to ½-inch thick. 2017 COLLIER METAL SPECIALTIES LTD.

HARDWARE RETAILING | May 2017

Midwest Products 800-348-3496 or midwestproducts.com

39 38. Portable Dehumidifier The BHDP-701H Portable Dehumidifier is easy to use with top mounted controls. The unit automatically shuts off when the bucket is full. BHDP models have a built-in pump for fast, direct draining. It features an auto defrost and auto restart as well. The slide-out filter can be removed easily for washing and reusing. MARS® customerservice@marsdelivers.com or marsdelivers.com

39. Fence Tools Retail Display Unit Retailers looking to offer high-quality fence tools to the agricultural shopper can turn to Red Brand’s fence tools display unit. The unit fits standard Lozier fixtures and it includes tools for bracing, splicing, stretching and installing wire fence. The Replenishable Tool Guide tear sheet helps customers determine the tools they need. Red Brand 800-447-6444 or redbrandstore.com

PO Box 70 · Albia, IA 52531 800 247 5062 · kness.com · 17-0109

May 2017 | HARDWARE RETAILING

Spring Product Preview

40 40. POS System

41. Replacement Grip

Paladin Data Corp. provides an easy-to-use point of sale solution for retail hardware stores of all sizes. Paladin’s Market Driven Inventory Management™ uses a retailer’s own sales data to predict which products customers will be looking for in the weeks to come. The system allows users to dramatically reduce price shopping and ordering time, lower their inventory investment and have the right products available when customers need them.

Re-Grip is a simple way for homeowners to replace the grip on practically any handle, lever or tool. To use the Re-Grip, users slide it onto a handle and hold it securely in place where they would like their new grip. Then, pull the tab to unwind the inner coil. Instantly, the grip will constrict and form snugly around the handle. It is UV resistant, chemical and dip tested and uses a strong, durable material to provide mechanical and environmental protection while enhancing comfort for the user.

Paladin Data Corp. 800-725-2346 or paladinpointofsale.com

Preval 800-607-8931 or re-grip.com

RE IMAGINE RETAIL Rethink the way you do retail. Take a fresh look at the industry’s most comprehensive collection of hot new trends, proven best sellers and unexpected finds to compare quality and price, replace underperforming lines and experiment with new merchandise categories. Reimagine what’s possible.

What’s in store for you? www.nationalhardwareshow.com

May 9–11, 2017 Las Vegas Convention Center

Spring Product Preview

42. Paint Mixer/Shaker and Mixing Equipment RADIA, the new name of Red Devil Equipment Co., supplies retailers with mixing equipment. RADIA supplies 1-gallon, 5-gallon and multi-size mixers and shakers. The company works with retailers to create a layout optimized for safety and efficiency, and has developed a system integrating mixers with can closers, driers, roller racking and more. As the same company with a new name, RADIA upholds its dedication to unmatched durability in equipment for retailers. RADIA/Red Devil Equipment Co. 800-221-1083 or radiaproducts.com

42 Stop Rust Before It Starts

Zerust provides the ulitimate line of products to protect your metal valueables from rust and corrosion. The patented technology is odorless, non-toxic, eco-friendly, and lasts up to five years.

l Nationa w re Sho Hardwa

Booth #8856

Zerust Toolbox Drawer Liners

combine Zerust’s corrosion-inhibiting formula with a heavy-duty, non-slip PVC rubber. The quality rubber liners can be cut to fit insidetoolboxes, drawers, storage boxes or shelves to prevent denting, slipping, mold, mildew and, most importantly, rust.

The Zerust Table Saw Cover

is made with a corrosion-inhibiting formula to provide Vapor Corrosion Inhibitor (VCI) protection to the surface of your table saw. The Table Saw Cover protects against rust and corrosion for up to five years. • 63” x 45” x 19” (L x W x H)

• 72” x 45” x 19”

Provides protection for five years. Fire-retardant and non-toxic. • 12” x 72” Non-Slip Solid & Non-Slip Mesh • 18” x 96” Non-Slip Solid • 22.5” x 118” Non-Slip Mesh

For the Ultimate Protection from Rust and Corrosion!

www.zerustproducts.com

Look for us on Facebook

Zerust Consumer Products LLC • Twinsburg, Ohio 44087

Zerust Consumer Products

HARDWARE RETAILING | May 2017

H A R DW A R E C O M P A NY

Summer Hardware Savings SPLASH Event DEALER MARKET “Grow your business and your future with House-Hasson”

June 15-17, 2017 Sevierville Events Center Sevierville, TN

We invite you to join us to see what we have to offer:

Wilderness at the Smokies Hotel & Waterpark Resort

• • • • • • • • •

Hot deals at Bonus Buy Breakfasts Travel Rewards Program Educational Seminars Unbeatable Prices and Payment Terms Electronic Ordering Marketing & Store Service Solutions Great Food and Entertainment Family Friendly Attractions Enjoy Pigeon Forge and Gatlinburg

Come check us out! Call Pat McCutcheon at 800-333-0520 ext. 212 or go to www.househasson.com

Spring Product Preview

44 43

43. Fast-Setting Concrete Mix The new QUIKRETE® Fast-Setting Concrete Mix Bonus Bags now contain 60 pounds of QUIKRETE® Fast-Setting Concrete Mix. The mix hardens in 20 to 40 minutes and gains enough strength to build on in two hours. It’s recommended for pouring sidewalks, patios, driveways and other concrete surfaces that need to quickly reopen for foot or vehicle traffic. The QUIKRETE Companies 800-282-5828 or quikrete.com

44. Smart Video Doorbell

Broad Customer Base High Margins Small Footprint 800.348.3497 | midwestproducts.com 56

HARDWARE RETAILING | May 2017

The Smart Video Doorbell from smanos is an all-new addition to the smanos smart home portfolio. When someone presses on the bell button or the built-in motion sensor detects movement, homeowners get an instant notification on their smartphones, enabling them to see and speak with the visitor no matter where they are in the house or in the world. Video doorbell owners can also proactively wake up the doorbell on demand and see what's happening. smanos Holding Ltd. smanos.com

45 46

45. Covered Mouse Trap The d-CON® No View, No Touch™ Trap hides dead rodents from sight and protects the user when throwing them away. The trap kills mice instantly and seals in a snap. To use the product, peel back the small self-adhesive label to apply bait. Bait is approximately a pea-sized amount of whatever is on hand, like peanut butter or cheese. Then, reseal the self-adhesive label over the compartment and turn the trap over. Once a mouse is caught, discard the entire trap. Reckitt Benckiser Group 800-228-4722 or d-conproducts.com

46. Mortar and Stucco Repair Sealant Mor-Flexx® is a mortar and stucco repair sealant from Sashco. Textured to blend in with stucco, stone, and mortar in-between bricks, it won’t crack or dry hard, and it can expand and contract. The sealant is paintable, made in the USA and backed by a limited lifetime warranty. Retailers can request free displays.

Booth #5215

Sashco, Inc. 800-767-5656 or sashco.com

May 2017 | HARDWARE RETAILING

Spring Product Preview

47. Model Car Product Line PineCar® Racers are small models built to specific dimensions and raced by gravity down an inclined track. PineCar is a leading supplier of these small racers and all their accessories. The selection of car bodies, weights, speed accessories, tools and body customizing details give racers a fair chance to compete. All PineCar products include easy, step-by-step instructions. Woodland Scenics 573-346-5555 or pinecar.woodlandscenics.com

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

frogtape.com

48 48. Battery-Powered Trimmer The STIHL FSA 56 string trimmer has an adjustable shaft to fit different user heights for enhanced comfort. The trimmer’s AutoCut® head feeds out new line with just a tap on the ground. Users can trim the length of five football fields on one charge. This STIHL AK Series battery trimmer weighs just 7.3 pounds for easy portability and maneuverability. STIHL 800-467-8445 or sithlusa.com/dealers

49. Electrical Fire Safety Fire Shield™ products, with patented Heat Sensor Technology, constantly monitor the heat created at the wall receptacle and devices plugged into it. If a high level of heat is detected, Fire Shield triggers an alert by sounding an 80-decibel alarm and emitting a flashing red LED light, giving individuals an advanced warning of a potential issue before it becomes dangerous. The integrated self-test button confirms Fire Shield is monitoring electrical safety, and tamper-resistant receptacles keep small hands from accidental shock.

Visit us at the National Hardware Show, Las Vegas - Booth #1812

Woods Products, Inc. facebook.com/woodselectricalproducts

May 2017 | HARDWARE RETAILING

Spring Product Preview

51 53

52 50. Epoxy Floor Paint

52. Premium Spray Can Tool

The DRYLOK E1 1-Part Epoxy Floor Paint is an all-in-one floor paint that utilizes advanced epoxy technology for excellent durability. E1 is resistant to hot tire marks, chemicals, oil, grease and gasoline stains. It can be cleaned with water and is storable. The formula protects concrete floors quickly and easily, and the low-VOC formula is also tintable for customized color.

The CANGUN1 by SafeWorld International is a premium spray can tool that features a FullGrip™ trigger, with 21/2-to-1 leverage advantage. This makes spraying up to 8 times easier while providing professional, pain-free results. The product is ergonomically tested and has an arthritis-friendly patented design to make it the only spray can tool suitable for use while wearing gloves. It fits all cans and hands. The product is made in the USA from 80 percent recycled plastic.

United Gilsonite Laboratories 800-845-5227 or drylok.com

SafeWorld International 800-743-0115 or cangun1.com

51. Fast-Setting Concrete Mix Sakrete’s Fast-Setting Concrete Mix sets fence posts and poles in 30 minutes without requiring bracing. The mix speeds installation time and can be open to foot traffic within four to six hours, making it ideal for flat work and repairs that require a quick return to service. Sakrete 866-725-7383 or sakrete.com/hardware

53. Spackling Kit ONETIME® Lightweight Spackling fills dents, cracks, nail holes and other small holes. The lightweight, pre-mixed formula spreads easily for fast, professional repairs to walls and ceilings in just one application. It dries fast, doesn’t need sanding and won’t shrink, crack or flake. It can be painted within minutes and cleans up easily with water. The kit includes: a wall repair patch, sandpaper, a putty knife and the pre-mixed formula. Red Devil 800-423-3845 or reddevil.com

HARDWARE RETAILING | May 2017

High Value Low Cost INTRODUCING

A cloud-based business management system for hardware and home centers. Cutting-edge technology to run your hardware store is available at a mouse-click and at one fixed monthly price. Your business and your bill, simplified.

POINT OF SALE

INVENTORY

PURCHASING

MOBILE

ACCOUNTS RECEIVABLE

EDI COMMUNICATIONS

REPORTING

(EM)POWERING YOUR HARDWARE BUSINESS Contact us today for a Demo! 800.588.5128

info@ecisolutions.com

www.ecirocksolid.com

Spring Product Preview

54 55

56 54. Power Wheelbarrows and Trackbarrows New to the YARDMAX product line are the power wheelbarrow and trackbarrows. The YARDMAX Power Wheelbarrow offers self-propelled, all-wheel drive with a zero turn radius. Operators can navigate safely to move and dump up to 660 pounds of materials. The YARDMAX Trackbarrow’s models include a 660-pound capacity with Gas Shock Dump Assist in either hopper or flatbed style. Also available is the 1,100-pound capacity Power Trackbarrow with Hydraulic Dump Assist. YARDMAX 847-327-0566 or yardmax.com

55. Plastic Sheeting Merchandiser The CHA3 is an exclusive wire-rack merchandiser that displays popular 4-mil, 12-roll product assortments of Carry-Home Coverall consumer plastic sheeting. The product line is made in the USA. WARP BROS. 800-621-3345 or warpbros.com

57 56. Calcium Lime Remover The Whink® Calcium Lime Remover helps eliminate water problems fast. It is designed to eliminate buildup caused by soap scum and calcium stains. As the newest addition to Whink’s product line, the Calcium Lime Remover is formulated to work on bathtubs, showers, sinks, toilets, shower doors, tile, fiberglass and more. Additionally, it is made in the USA. Whink Products 800-247-5102 or whink.com

57. Decorative Outdoor Hardware Outdoor Accents® decorative hardware is a new line of connectors and fasteners from Simpson Strong-Tie that provides both design elegance and structural strength to custom outdoor living areas. This load-rated, patent-pending hardware accommodates 4- and 6-foot lumber sizes, providing the flexibility your customers need when designing and building custom outdoor structures, like pergolas and patio covers. The new mission-style connectors include post bases, strap ties and angles and are made from galvanized steel with a black powder-coat finish for corrosion protection. The screws are exterior rated and also feature a black powder-coat finish. Simpson Strong-Tie Company Inc. 800-999-5099 or strongtie.com/outdooraccents

HARDWARE RETAILING | May 2017

Espresso

Aged Oak

Weathered Wood

Checkouts

Reed, a young trainee with service dog organization Circle Tail, waits for instructions during a visit to BDK Feed & Supply in Blanchester, Ohio. BDK, which specializes in high-quality pet products and feed, opens its doors to service dogs in training.

CUSTOMER RELATIONS

It’s Basic Training Time For Puppy Recruits

hardware store can be a busy, noisy place. A key machine could be cutting a new set of keys, or a paint mixer might be firing up. But that noise, and those potential distractions, are just what Ohio company Circle Tail’s service dog trainers are looking for as they find places to work with new service dogs in training. BDK Feed & Supply in Blanchester, Ohio, gets weekly visits from Circle Tail’s newest puppy recruits. Owned by Darrell Kingsland, the store caters to a large farm and pet owner customer base and has received visits from Circle Tail’s newest puppy recruits at least once a week for about five years. “It’s a fun relationship for a store to have,” Kingsland says. “We try to accommodate the dogs’ training as much as we can.” Circle Tail trains hearing and seeing-eye dogs, as well as service dogs that can help someone with a physical impairment that limits mobility. Recently, the nonprofit organization began training diabetic alert dogs as well.

The store offers a unique training ground for new service dogs because of the diversity of distractions it offers for a properly trained dog, says Circle Tail executive director Marlys Staley. With large products being moved, loud machinery in use and lots of foot traffic, it gives the trainers a good look at how a potential service dog may react in many situations. “When you start out with young dogs, you don’t know what skills they’ll have—whether they can be distracted too easily, or if they have trouble not saying hello to everyone they meet,” Staley says. “You get a good feel for the temperament of the dog,” says Staley. “Is it able to keep up with someone active, or is it going to be content to lay under a desk and retrieve a pen or open a cabinet?” BDK has more than a great atmosphere, Staley says. The employees and customers have been quick to welcome the trainers and puppies into the store and even help get the trainees ready.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising, special events or unique advertising, we cover it here. Have an idea? Contact Liz Lichtenberger, llichtenberger@nrha.org, to have your story considered for publication.

HARDWARE RETAILING | May 2017

THE VALUE OF KEEPING IT IN THE FAMILY This table has played host to everything from family dinners to grandma’s bridge tournaments and arguments about politics and sports. When you sit at our table as a True Value® Member, you are family. You not only plug into the buying power of a successful company, but you have your choice of solid programs with our support every step of the way.

Here at True Value the word value isn’t only in our name, it inspires everything we do. There are many reasons why more than 600 new stores have joined us during the past three years.

Checkouts

CUSTOMER EVENT

How Lezzer Lumber Builds Loyalty

ith all of the new products on the market, updates in building codes and changes in workplace regulations, it can be difficult for contractors to keep up. Lezzer Lumber makes it easier. Every February, the company, which operates 11 retail locations in Pennsylvania, holds its Vendor Expos. The purpose is to bring together vendors and customers to see and learn what’s new. This year, the company held four Expos—in different locations spread between the stores—and attracted approximately 2,000 customers. It’s a special event designed for both existing customers and potential customers who want to see what Lezzer Lumber has to offer, says Bill Thomas, marketing coordinator for the company. While there may be some business transactions

“The Expos are productive

for our vendors, because our outside sales force does a good job of taking customers to the different booths, so everyone’s time is well spent.

”

—Bill Thomas, marketing coordinator of Lezzer Lumber

made at the Expos, the events are just as much about offering information and building relationships between vendors and customers as they are selling. “Our contractors and vendors look forward to this event,” says Thomas. “The Expos are productive for our vendors, because our outside sales force does a good job of taking customers to the different booths, so everyone’s time is well spent. “Some of our customers are small-scale contractors, and they are not able to keep up with all of the new products on the market and the code changes,” he says. “The Expo gives them one place to get that information.” The half-day events are held at a hotel or other convention space, and may include as many as 40 of Lezzer’s vendors. In addition to the vendor booths, attendees can sit in on seminars covering timely topics, such as OSHA fall protection or a presentation by the local builder’s association. There are also door prizes and a buffet dinner as a way for Thomas and the rest of the staff to show their appreciation for their customers. This year, Lezzer Lumber celebrates its 90th anniversary, and it’s events like the Expos that emphasize how the company has earned its customers for nearly a century. “The Expos have helped us create a lot of loyalty with our customers, because they know we’re looking out for their best interest,” says Thomas. “We’re helping them to promote their businesses, too, because they’re up to date on all of the new products for their customers,” he says.

Lezzer Lumber’s Vendor Expos are held at multiple locations to accommodate as many customers as possible. The half-day events include seminars, vendor booths and a customer appreciation dinner.

HARDWARE RETAILING | May 2017

Safety is all we do. And we do it well.

For over 10 years, SAFETY WORKS has provided customers a full-line of high quality safety products, carefully selected and merchandised for maximum sell-through. Today, as part of Protective Industrial Products, Inc., we renew our commitment to you as your most trusted one-stop solution provider of Safety products for your professional and Do-it-Yourself customers. CONTACT SAFETY WORKS TODAY 800-969-7562 | sales@safetyworks.com | www.safetyworks.com

SAFETY WORKS, INC. YOUR PERSONAL SAFET Y SPECIALISTS™

See our new product lineup at NATIONAL HARDWARE SHOW Booth 6906 May 9-11, 2017

Checkouts

MERCHANDISING

Cashiers Go Nuts For Reference Board

very cashier no doubt has had to deal with a similar situation. A customer brings up a handful of nuts and bolts from the bulk sales section of the fasteners department. The customer doesn’t have the SKU number or size, which means the cashier has to hunt for the correct bin label to ring up the order, delaying the checkout process while the line backs up. Susan Harlan, owner of Vickery Hardware in Smyrna, Georgia, found a solution. Her son, who is an artist living in Brooklyn, created a reference board with the popular bulk fastener items sold at the store. “It’s an easy way to help employees reference those products and their prices when customers forget to label them,” she says. “It’s been very useful.” A sample of each fastener along with its price is attached to the board. The board is two-sided and rotates so cashiers can quickly reference more than 300 SKUs.

A reference board with a store’s bulk fasteners attached helps cashiers find the correct price for each item.

W LO C R VWO ATE UP AN

CLE

TWP® WS Series

All the benefits of TWP now available in a water based formula. For additional information visit our website www.usetwp.com or call 1-800-969-4811 TWP® is a registered trademark of AMTECO Inc.

PROUDLY MADE IN THE U.S.A.

HARDWARE RETAILING | May 2017

THE NEW BENCHMARK

In electric pressure washers

The all-new K2000 was developed to offer best-inclass cleaning performance and unparalleled ease of use. It delivers 2000 PSI of TruPressure™, ensuring the highest level of cleaning power, and is driven by a rugged induction motor. No tools are needed for assembly – set up and start cleaning in five minutes or less! Backed by a three year warranty, the K2000 is Kärcher’s top-of-the-range consumer electric pressure washer and the ideal cleaning companion for demanding homeowners. karcher.com/us

Visit Us at NHS Booth # 5212

Checkouts

COMMUNITY RELATIONS

Store Team Keeps On Rolling

arshall Hardware in Duluth, Minnesota, has kept a tradition alive for over 15 years. What started as an employee bowling team has seen some changes during that time, but one thing hasn’t changed: Marshall Hardware still knows how to get its name out into the community while having a good time. The store has worked with several community organizations by contributing its name and some funds to various groups. One has been a bowling team that competes in a local league. Marshall Hardware serves as a sponsor for that team. “It started with a longtime customer who asked if we would be interested in helping out a bowling team. It’s not a true ad campaign, but we like to get involved in groups on our end of town,” store co-owner Steve Marshall says. Steve and co-owner and brother Scott Marshall have owned Marshall Hardware for 40 years. Their grandparents started the company in 1939, and it’s been in the family ever since.

The family is still involved with bowling—Steve was part of the original employee team, and his nephew bowls in another team in the same league. Other organizations that Marshall Hardware works with include an area Little League team as well as an annual golf tournament, where the store provides headgear with its logo for a sponsored team. “You never know when you can reach someone with your name,” Steve Marshall says. “It can be at any time. Maybe they see your logo and it triggers a memory or an urge to finish a project. That’s how we look at keeping our name in the community.”

Leading Technology at the Best Value

S L E

Members of the Marshall Hardware bowling team in Duluth, Minnesota, pose before taking to the lanes.

In response to users’ demand and market trends for more efficient POS paint equipment, HERO Products Group has added the A300 Series Automatic Colorant Dispenser and the S2650 5G Automatic Platform Shaker

Accuracy Repeatability Reliability A

URAC

PCP

Technology

HARDWARE RETAILING | May 2017

MIXING TECHNOLOGY

Self - Service Model

Multi-size Capabilities

15 minutes Pump Replacement

Quiet, Sturdy, Reliable

Up to 80 oz/min. Max Dispense

Reversible Door

Small Footprint

A300 Series Enhanced, smoother, and robust new frame for improved performance and self-maintenance capabilities

TECHNICAL SUPPORT NETWORK THROUGHOUT NORTH AMERICA

ELLIPTICAL

S2650 5G Automatic Platform Shaker

Full line of paint equipment

www.hero.ca

NEW FENCE TOOL MERCHANDISER LEVERAGE THE NUMBER ONE NAME IN AG FENCING WHEN YOU OFFER EXCLUSIVE RED BRAND TOOLS TO YOUR CUSTOMERS. This unique, first-of-its-kind collection of high-quality tools provides everything needed for a successful fence project. • Convenient compact display • Fits on a standard 4’ lozier fixture • Tool Guide tear sheet helps customers determine what they need • Red pegboard backer included

Be the ﬁrst in your market to offer Red Brand fence tools. To learn about the fence tools, display features, and proﬁt opportunities, contact your regional Red Brand representative for complete details.

7000 SW Adams Street Peoria, IL 61641

p 800.447.6444 f 309.697.7487

redbrand.com

Checkouts

UNIQUE DISPLAY

Ohio Retailer Draws Outside the Lines

ustomers at Boliantz Hardware instantly notice the endcaps around the store’s salesfloor. Typically, endcap signage gives retailers limited creativity, outside of swapping pricing for featured items. At Boliantz, however, endcaps provide much more visual interest, as well as functionality. Casey Sutter, store manager of the Shelby, Ohio, store, painted the existing fixtures with chalkboard paint. Now, each time a sign needs to be changed, he works with sales associates Sherrie Loveless and Miki Jones to create the new designs. And they don’t just put the price on the sign: They add the product’s name or a witty saying as well. “Customers like these signs—they are colorful and stand out,” Sutter says. “They were easy to create, since they were already made to fit on endcaps, and they are easy to erase and start over whenever we change the display.”

HARDWARE RETAILING | May 2017

The endcaps at Boliantz Hardware have an extra touch: Chalkboard signs with creative designs and witty sayings.

Wall Adapter

Advanced Safety Cord

Our patented Heat Sensor Technology alerts you when electrical heat builds up, well before it becomes dangerous.

Our patented LCDI Technology eliminates electrical fires before they begin, shutting off the current in .025 of a second if danger is present.

Back-lit Test Button

Test and Reset Buttons

Grounded Outlets

Unique 4 outlet wall tap design

Tamper resistant receptacles

Special Copper Sleeve carries the cord status to the monitor

80 db Alarm

Checkouts

UNIQUE NICHE

It’s a Dog’s Life in the Arizona Heat

hen Kory and Stephanie Kehle, owners of Southwest Exchange in Yuma, Arizona wanted to do something with unused space in their facility, they decided to let it go to the dogs. “We know what products our winter visitors want, but we started looking at what else we could provide,” Stephanie says. “Winter residents have dogs that they pamper, and we looked into how we could help in that department.” Beginning with a grooming department, the pet-centric business now includes an extensive pet product department and a boarding facility. This year, the store expanded its boarding facility to include an outside area with shade, play facilities and even a pool. “When you’re working with dogs, it’s not the dog that you have to sell—it’s the owner,” Stephanie says. “We wanted to have a high-class facility.” The grooming department was a tough business to get started, Kory says, as finding a groomer was one of the toughest hires they made. “Our grooming crew has a great work ethic and a lot of determination,” he says. “We have a lot of guests that seek our grooming service.”

Southwest Exchange in Yuma, Arizona, recently installed a pool in its dog boarding area to help cool off canine guests.

OUR BEST

PRODUCT ’

DOESN T COST

A THING

Red Lion’s in-store aisle training program and Technical Service Hotline will turn your sales associates into pump experts who provide valuable solutions to your customers. Bring personal service to your pump aisle to deliver a better customer experience that will move more product and make your store the local destination for pump sales.

Real People. Real Answers. Real Experience.

See us at National Hardware Show Booth 2212 74

HARDWARE RETAILING | May 2017

redlionproducts.com

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Built in America. Believing in America.* STIHL believes in the power of American manufacturing and our employees are proud to help rebuild our economy one American-built product at a time. We also believe in local businesses and that’s why for 40 years we have only retailed our products through servicing dealers like yours.

Because it’s real people, STIHL people, who help make STIHL the number one selling brand of gasoline-powered handheld outdoor power equipment in America.* To become a STIHL dealer: STIHLusa.com/Dealer

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360 VIEW

HARDWARE RETAILING | May 2017

Target T

arget has a reputation: The big-box retailer with flair. The company’s stores are destinations for parents picking up groceries, newly engaged couples adding bedsheets to wedding registries, college students looking for dorm decor and fashionistas eager to buy out celebrity-designed clothing lines. The first Target location opened in Roseville, Minnesota, in 1962—the same year Sam Walton launched Walmart, the largest big-box discounter in the world. Target’s parent business, The Dayton Company, didn’t race against Walmart to win at the lowest-price model, but distinguished itself as the upscale discount store. Today, Target has maintained its chic image while competing for customers in a contracting brick-and-mortar retail market. At the same time, the company is also finessing its reputation to overcome setbacks such as an extensive payment card data breach in 2013 and the rapid dissolution of Target Canada in 2015. To get past those obstacles and improve sales, the Minneapolis-based company announced in February that it is investing $7 billion to “support its plans, which include price reductions to get more people into stores,” the Minneapolis Star Tribune reports. On the following pages, we will look at how Target grew from a single store to a big-box chain with more than 1,800 locations and a growing e-commerce presence. We will also highlight some of the company’s latest initiatives and its current financial position, as well as hear from an expert about its future prospects.

What We’ll Cover 80 The History of Target 82 Timeline: 1962 to the Present 84 A Snapshot of Target 86 Target Today 92 SWOT Analysis 94 The Financials 96 Expert Perspective:

Target’s Future

The information in this 360-degree overview was gathered by Hardware Retailing staff from a variety of resources that are attributed throughout.

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The History of Target

The department store that was the starting point for Target may never have come to fruition had the founder’s first investment project not been derailed by Minneapolis’ stringent liquor laws in 1901. Banker, businessman and entrepreneur George Draper Dayton purchased property in Minneapolis, initially planning to build a 10-story hotel with a bar in the lobby. According to accounts from Laura Rowley’s book “On Target: How the World’s Hottest Retailer Hit a Bull’s-Eye,” the developers scrapped the plans when they found out liquor couldn’t be sold south of Sixth Street. The property was just one block south, on the corner of Nicollet Avenue and Seventh Street. Instead, Dayton built a six-story retail store and convinced the owner of the fourth-largest department store in Minneapolis, Goodfellow’s Dry Goods Company, to move into the space, Rowley reports. The new store sold clothing and accessories, home essentials and housewares. Dayton bought out his partners in 1903, gave the store his name and further developed the store’s reputation for “quality goods at fair prices, catering to a range of income levels,” Rowley writes. For the next 50 years, The Dayton Company served the downtown Minneapolis community as a home goods department store. Two new stores were added in the mid-1950s before the company focused on a new retail opportunity—mass discount retailing.

Becoming Target Target was established to capture shoppers who sought low-priced merchandise but a high-end shopping experience, founding president Douglas Dayton says in Rowley’s book.

In the early 1960s, discount stores were fairly new to the retail market and had a reputation for stocking cheap goods in unkempt stores, Douglas says in the book. Because Target created a department store experience but sold low-priced goods, the store exceeded shoppers’ expectations, he says. The first Target retail store opened in May 1962, according to the company. By the end of the decade, Target had expanded into four states outside of Minnesota and opened its first distribution center. In 1979, Target posted $1 billion in annual sales for the first time and operated 74 locations in 11 states. Ten years later, after significant growth during the 1980s, Target opened 30 more stores in six states, all on the same day: April 30, 1989.

Expansion Plans Target launched two new store formats in the 1990s. According to Target.com, the store featured “wider aisles, faster and more efficient checkout lanes and automatic teller machines (ATMs)” in addition to expanded pharmacy and photo services. The first Super Target opened in 1995 in Omaha, Nebraska, and highlighted the retailer’s interest in expanding into the grocery market, according to the company. In 1997, Target launched a new donation initiative as part of its overall philosophy of giving to communities. The program donates 1 percent of all Target RedCard credit card sales to schools. In 1999, the company entered e-commerce with the launch of Target.com, which now has 26 million unique monthly visitors and is the fourth most-visited retail site in the world, Target says.

Three Quick Facts About Target

1 2 3 In 1946, Target started its tradition of giving 5 percent of its profits back to stores’ local communities.

Seven years after opening the first Target store, there were 17 locations in Colorado, Minnesota, Missouri, Oklahoma and Texas.

Sources: Target and “On Target: How the World’s Hottest Retailer Hit a Bull’s-Eye”

HARDWARE RETAILING | May 2017

Target introduced its first planograms in 1974 to create consistent merchandising across all store locations.

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Timeline: 1962 to Present

1962 In the Bull’s-Eye The Dayton Company launches a discount store in Roseville, Minnesota, called Target. Three other locations open in other Minneapolis suburbs by the end of the year.

1979 Sales Records With 74 stores in 11 states, Target achieves $1 billion in annual sales for the first time.

1988 Tech Savvy Target introduces UPC scanning at all of its stores and distribution centers.

1990 Mission: Acquisition Dayton-Hudson Corp., Target’s parent company, acquires Marshall Field’s department stores.

1995 Extra Credit Target debuts its first store credit card, the Target Guest Card.

1999 Entering E-Commerce The retailer launches Target.com.

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2017 Growing Grocery Target hires former Kroger executive Jeff Burt to lead its grocery business.

2015 Staffing Cuts

Canadian Collapse

Target lays off 2,600 employees in the MinneapolisSt. Paul area.

In January, Target announces plans to exit Canada, and all stores are closed by May.

2013 Crisis With Data Target experiences a data breach of its credit card processing systems, which affects more than 100 million customers.

2011 Going International

OPEN

Target acquires 189 Zellers store locations in Canada with plans to transition up to 135 of them into Target stores.

2004 Department Sales Target Corp. sells Marshall Field’s.

SOLD

2000 Target Official Dayton-Hudson Corp. becomes Target Corp. Sources: Star Tribune, Target Corp. Annual Report filings, Target.com, The New York Times and Minneapolis Star Tribune

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A Snapshot of Target

1,802 Stores in the U.S.

300,000+ Store Employees in the U.S. Target has 40 distribution centers.

Median Age of Customers

40 57%

43%

Have Children at Home

Graduated From College

Median Household Income of

$64K & both opened in the same year: 1962. 84

Vermont is the only state where Target doesn’t have a retail store.

HARDWARE RETAILING | May 2017

Target donated

$1 MILLION to help fund the restoration of the Washington Monument in 1996.

240 MILLION Total Square Footage of All Target Stores

TARGET

Target stopped selling tobacco products in 1996, citing the high cost of preventing sales to minors.

In 2016, Target spent approximately

$1.46 BILLION

Target introduced its red carts in 1978.

on advertising. Target chose to model its customer service training after Disney’s program.

24% of 2016 purchases were made with Target-branded credit or debit cards. Sources: Target 2016 Annual Report,“On Target: How the World’s Hottest Retailer Hit a Bull’s-Eye,” Target.com, Walmart.com and The New York Times.

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Target Today

Refocusing the Business Refocus, simplify, prioritize and redefine are the key words for Target’s growth strategy under Target CEO and chairman Brian Cornell. Shortly after Cornell joined the company as its top executive in 2014, he began leading rapid-fire changes. In January 2015, Target Corp. announced it would close all 133 of its Target Canada stores and its Canadian distribution centers. The oldest Target Canada locations had been open barely two years. However, Target couldn’t come up with a plan for quickly turning a profit in Canada, Cornell said in a statement from the company. “When I joined Target, I promised our team and shareholders that I would take a hard look at our business and operations in an effort to improve our performance and transform our company,” Cornell says in a press release. Target’s leadership, including its board of directors, decided the company would benefit overall by leaving Canada to “focus on driving growth and building further momentum in our U.S. business,” Cornell says in a statement. Next, the retailer made plans to cut thousands of U.S. jobs, eliminating about 2,600 positions in the Minneapolis-St. Paul area alone, according to the Star Tribune newspaper in Minneapolis.

That same spring, Cornell also led the sale of Target’s pharmacy business to CVS Pharmacy. The big box unloaded 1,672 pharmacies in that deal, according to Target reports. CVS now operates the pharmacies located in Target stores. In the midst of dramatically shedding businesses and staff, Cornell described “simplifying how we work, and practicing financial discipline” as necessary for the company’s growth. “We’re focused on our future and building the capabilities that will take us further, faster,” Cornell says in a press release. When describing its refocus, the company’s leadership outlined plans for building seamless store, online and mobile shopping experiences; customizing its store product offerings for individual markets; differentiating its style, baby, kids and wellness categories; and testing smaller stores “to cater to guests in rapidly growing, dense urban areas.” Zeroing in on what customers are looking for in retail experiences has included in-person interviews with shoppers, and even visits with customers in their homes, the Star Tribune reports. “Redefining Target will require a renewed emphasis on prioritization and innovation, and above all else, putting our guests first in everything we do,” Cornell says in a news release.

Technology Initiatives To engage its customers, Target keeps technology at the forefront. From designing Target. com and mobile applications to using in-store beacons and opening Target Open House—a smart-home test store in California—the retailer is constantly looking for ways to deliver a seamless shopping experience.

Target.com and a New Approach to Online Fulfillment Target has had a presence online since 1999, and from 2001 until 2011, the retailer had a partnership with Amazon.com to power its e-commerce offerings, according to Business Insider, an online business news source. In 2011, Target cut ties with the online bookseller, which was becoming a competitor. In order to compete better online, Target announced in February that part of a $7 billion reinvestment into the company would be used to beef up its e-commerce business.

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Target Today Target has been making efforts to push back against e-commerce competitors by investing in fulfillment capabilities at about 25 percent of its total retail locations, Cornell shared in February. In those stores, back rooms serve as online order fulfillment centers. The company’s online sales were less than 5 percent of total sales in 2016, but are growing, according to the Target 2016 Annual Report. Brick-and-mortar store sales were down for the past few quarters, but digital sales grew more than 30 percent, the company reports.

Mobile Apps and an Integrated Shopping Experience Target.com continues to be a focus for Target, as is an emphasis on mobile selling because of how frequently customers are shopping on mobile devices. In June 2016, the retailer unveiled an updated Target.com, which provides a consistent and unified experience, no matter where a customer browses.

HARDWARE RETAILING | May 2017

In addition, the company has created a variety of apps to help customers shop conveniently. One of them, the coupon app Cartwheel, has become a popular way for consumers to save money at stores. Launched in 2013, Cartwheel has saved customers nearly $500 million, according to an April 2016 press release from Target. The app provides store maps to show customers where in the store they can find discounted items. Shoppers can also get emails and push notifications about special deals. Target doesn’t currently offer mobile payment options in retail locations. But chief information and digital officer Michael McNamara told tech news source Recode that the retailer plans to introduce mobile pay features on one or more of its apps eventually. Doing so would be following the lead of retailers like Walmart and Kohl’s, which now offer their own mobile payment features that compete with Apple Pay and other payment apps.

Brick and Mortar Changes As Target looks to the future and plans to invest in its digital experience, the company is also prioritizing reimagination of its stores.

The Retail Experience of the Future The company emphasizes that its brick-and-mortar stores will play a major role in its success, regardless of digital growth, because of the experiences they offer. At Shoptalk, a recent retail conference, Cornell discussed Target’s vision for its physical locations. “Our guests still love shopping in Target stores—we’re known for creating a sense of inspiration and discovery that can’t be replicated online in quite the same way,” Cornell says. “So while we are investing heavily in digital, we’re also doubling down on our stores to offer guests an elevated experience, and at the same time ensuring fast, easy pickup for online orders—giving guests every reason to keep coming to Target.”

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Target Today In the next three years, Target plans to remodel and fully renovate more than 600 store locations. The first of the redesigned stores is slated to debut in October near Houston. The store will provide two different shopping experiences, accessible through separate entrances, according to Target. One entrance will be designed to draw customers in to browse, and the other will be a quick stop for picking up web orders or groceries. To further improve the customer experience, Target will also be giving store employees new tools. The plan is to provide technology that will allow workers to search for inventory, take mobile payments and arrange for deliveries, all from the salesfloor, according to Target.

Adding Locations, Decreasing Space Although many retailers are scaling back on brick-and-mortar locations, Target’s investment in improvements will include new stores.

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A new store being built in Texas that is 126,000 square feet will offer customers products from categories such as apparel, baby, home, electronics, health and beauty and grocery. It will be the prototype for the massive store remodels that the retailer is planning, according to the Minneapolis/St. Paul Business Journal. Plus, store services include an optical department, a pharmacy, Target Mobile and order pickup. On top of revamping its existing locations, the retailer will be opening 30 small-format stores in 2017, which are primarily designed for urban markets and college campuses. By 2019, the company says it will operate more than 130 small-format stores. Unlike its typical stores that cover more than 100,000 square feet, the planned stores range in size from 20,000 to 50,000 square feet. The smaller stores will be more customized to the markets where they are located. Depending on the location and its shopper demographics,

Target will vary the merchandise selections and services. For example, a small store set to open in July at the University of Florida will bring college students dorm essentials, apparel and accessories, local sports team clothes, health and beauty products, grab-and-go groceries and will also serve as a pharmacy and order pickup location. No matter the size of a Target location, the stores will remain just as important as e-commerce development, Cornell says in a press release. “The future of retail is digital,” he said in his Shoptalk conference discussion. “And people will also be shopping in stores for a long time. So that means we need to keep investing in our stores to give guests every possible reason to shop.” In addition to in-store pickup, Target will be using stores as fulfillment locations for local deliveries. “Think of a Target store of the future being a hyper local, shoppable distribution center,” Cornell says.

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May 2017 | HARDWARE RETAILING

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SWOT Analysis

W Strengths

• Discount Chic: Target maintains a trendier, more upscale image than other general merchandise retailers such as Walmart and Kmart, while also using a discount model.

• Price Image: Target’s upscale image limits its appeal to a relatively uniform customer base. A more expensive price reputation creates obstacles to attracting a varied audience.

• Customers With Cash: Target stores appeal most to well-educated, middle-class customers who have money to spend.

• Wide Variety of Products: Target’s sales are spread almost evenly across five broad product categories, which could hinder the company’s ability to develop a focused strategy for improving sales. Its product mix includes a wide variety of departments, such as children’s clothing, groceries and sporting goods.

• Philanthropy: The company, from its start, has built a reputation of generosity by donating 5 percent of profits to the communities where stores are located. • Strong Business Partnerships: Target has partnered with well-known companies, including CVS Pharmacy and Starbucks, to offer in-store experiences with popular brands. • Exclusive Collaborations: The company has found success with exclusive collaborations with celebrities, such as Isaac Mizrahi and, most recently, Victoria Beckham, to offer upscale clothing lines. • Investing in Innovations: Target partnered with Amazon to develop its original e-commerce business and has built successful mobile apps to help drive sales. The company also works with technology innovators to develop projects such as Target Open House, a store consumers can visit to test smart home products before buying. • Successful Target-Only Brands: About one-third of Target’s 2016 sales came from its own product lines and brands offered exclusively through Target stores by companies such as Levi’s, OshKosh and Carter’s.

Weaknesses

HARDWARE RETAILING | May 2017

• Recovery Mode: Target’s recent renewed focus on its U.S. business, which has seen declining sales, has involved rapid staff cutsand an abrupt, expensive exit from Canada. The company also lost money due to a 2013 data breach that exposed payment information from tens of millions of customers. • New Store Formats: Target is investing in opening small stores in urban markets, but the smaller format is unproven and could be costly due to high overhead expenses in urban areas. • E-Commerce Sales: Target has touted its growing online and mobile sales, but e-commerce contributes less than 5 percent of its overall sales. • Investing in Innovations: Target has spent money developing futuristic tech projects it has had to scrap. That may be financially draining. • Limited Reach: Target is not an international company. Target Canada, its one retail venture outside of the U.S., was never profitable.

O Opportunities • Positive Image: Maintaining its philanthropic efforts and becoming a leader in areas such as gender-neutral bathrooms and fitting rooms give Target a mostly positive reputation as a socially conscious company. • Winning With Innovation: Target’s early partnership with Amazon to develop its e-commerce store positions the company as an innovator online. • Small Stores: If Target can make small store formats work, then the company will have the opportunity to expand into upscale urban communities with dense populations and high incomes. Small stores extend the retailer’s reach into areas where Super Targets won’t fit. • Strategic Partnerships: Enhancing partnerships with other respected companies, such as CVS and Starbucks, allows Target to focus on growing its primary retail business while also making its stores destinations for more than general merchandise shopping. • Celebrity Excitement: Target has generated excitement among shoppers with unique fashion lines developed by celebrity designers. The company has the opportunity to continue building on its track record of forging relationships with famous personalities. • A Changing Retail Landscape: The shuttering of J.C. Penney, Sears, Kmart and other competitor locations provides opportunities for Target to continue improving the customer experience at its stores. Target could appeal to more shoppers and fill holes opening in the retail marketplace.

T Threats • Competitive Powerhouses: Amazon and Walmart are massive, with extensive supply chains, efficient sourcing and reputations for selling nearly every product imaginable at the lowest prices. Amazon’s growth and convenience make many products difficult for traditional retailers to sell. • Shop-Local Initiatives: Growing consumer interest in supporting locally owned businesses could weaken the appeal of the publicly traded big box. • Data Breaches: Target’s 2013 data breach burned customers, and more breaches could weaken the retailer’s relationship with shoppers and incur high legal costs. Large companies continue to appeal to hackers. • Political Controversy: Taking political stances on issues such as transgender rights inspires shopper boycotts, which could harm sales. • High Overhead Costs: Target’s forays into expensive, high-rent urban markets with small stores may backfire if the stores don’t quickly become profitable. • Rapid Changes: Extensive changes within Target, such as employee layoffs, discarded tech projects and sold businesses, could prove to be symptoms of company instability if they don’t result in sales growth. • The Economy: If the economy becomes more sluggish or appears unstable, then customers could react by cutting their spending and turning to retailers with reputations for lower prices.

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The Financials

U .S . Statistics 2012

2013

2014

2015

2016

Percent Growth (From 2012 to 2016)

U .S . Retail Sales (dollars in millions)

$71,960

$71,279

$72,618

$73,785

$69,495

-3 .4%

Target U .S . Store Count

1,778

1,793

1,790

1,792

1,802

1 .3%

Canada Statistics Year

Sales From Physical Stores and Digital Platforms 2013

2014

Target Canada Store Count

124

133

Canada Retail Sales (U.S. dollars in millions)

$1,317

$1,902

Distribution Centers

Stores Digital

2014

97.4%

2.6%

2015

96.6%

3.4%

2016

95.6%

4.4%

*Sources were a variety of news reports.

2016 Sales by Channel Percent of Sales

Household Essentials . . . . . . . . . . . . . . . 22% Food, Beverages and Pet Supplies . . . . 22% Apparel and Accessories . . . . . . . . . . . . . 20% Home Furnishings and Decor . . . . . . . . . 19% Hardlines . . . . . . . . . . . . . . . . . . . . . . . . . 17%

Sources: Target Corp. Annual Report filings

HARDWARE RETAILING | May 2017

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Expert Perspective: Target’s Future

Brian Yarbrough Senior Analyst for Equity Research Edward Jones

Yarbrough has studied Target for years. Yarbrough has been quoted by Forbes, Bloomberg, the Associated Press and many other global news sources.

Hardware Retailing (HR): Target says about 57 percent of its customer base have college degrees and the median income is around $64,000. Why do you think the Target brand resonates so well with these consumers? Brian Yarbrough (BY): Target has cleaner stores, nicer stores. But the thing that really drives that is housewares, apparel, kids and baby. They know their customers well. For a few years, they were lost before Brian Cornell came in. They were trying to push food, which became stale, and they lost cheap, fast fashion, which they’ve done a good job with recently.

HR: How can Target make its small-format stores successful? BY: I’m not 100 percent convinced they will be. When Walmart first opened small-format stores, they got to about 100 locations and it got more difficult. Target has some good ideas with college towns, and entering into urban markets makes sense, but I don’t know from a distribution standpoint. You’re used to having a full truck to fill a regular Target store, but the express stores are much smaller. Six or seven small stores equal one traditional store.

HR: What are Target’s growth opportunities and what obstacles exist? BY: Honestly, I don’t know that there’s a lot of opportunity for growth. They’re pretty saturated. I think they’re going to have to close stores. The bigger issue is, how do you keep your current market share? They need to fix their current box before they think about growing, and online competition will make it difficult. It’s not the same profit margins, so how does Target keep its margins from serially declining? Where they can capture some market share is in their niche offerings.

HR: What are Target’s strengths in home improvement, sporting goods, home decor and automotive products? BY: Home decor has been a great category for them because it’s fashionable stuff that’s cheaper and

HARDWARE RETAILING | May 2017

looks like a Pottery Barn knockoff. It’s probably their strongest category overall. They’ve done a great job with reasonable pricing and good quality that fits current trends. Sporting goods, auto and home improvement haven’t expanded because they’re not really known for those categories. Target is not a destination for those items.

HR: What challenges does Target have when competing against Amazon, Walmart and other similar retailers? BY: I just don’t think they can compete on pricing. There isn’t really any other sizable online retailer that matters more than Amazon, and Target is doing a solid job of being an omnichannel retailer. When you look at price, they’re more expensive. But being brick and mortar allows them to offer options like buy online, pick up in store and returns of online purchases in the store. To really compete, Target needs to drive people into its stores by differentiating and focusing on housewares and apparel with exclusive and private-label products.

HR: What effect did closing Target Canada have on the company? BY: Financially, leaving Canada was a positive thing for Target because it was bleeding money. As far as public perception, there were a lot of people who were really angry in Canada. The stores and the supply chain were a disaster. The entire expansion damaged their brand up there. They tried to do too much, too fast. Their biggest mistake was training Canadian employees on one inventory system, and then it was a different system once they opened. They said they were fixing it, and they claimed it was fixed, but it wasn’t. Consumers continually came in the stores and found empty shelves. You’ll never get them back. I think the Target board would hesitate about going international because of what happened there in Canada.

HR: What are Target’s biggest weaknesses? BY: Grocery has really held them back. Fresh food is a totally different model than boxed and dry food, and Target never mastered that. They’re between a rock and a hard place in the food business because there is so much competition from grocery stores and other retailers.

“Midwest was our choice of fastener suppliers for several reasons. The sales rep provides wonderful service and the selection and display make the fastener department a true destination. As a result, the fastener department is our highest traffic area and the focal point of our store! ” Ted Jankowski Owner, Westhampton True Value, Westhampton, NY

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By Chad Husted, chusted@nrha.org

Food for Thought Farm, Pet and Ranch Customers Speak Up

ou know your customers. You know the necessities for your farmers, your ranchers and your pet owners. Feed, bedding and other supplies are all available and stocked for customers’ use. That leaves the question—what else are these customers looking for? What really makes the difference for a customer in the farm, pet and ranch industry when deciding which retailer to frequent? To find out, it’s best to go to the source. For Darrell Kingsland, owner of BDK Feed & Supply in Blanchester, Ohio, knowing what products to carry is just part of bringing in customers. Being able to speak intelligently with an urban farmer or pet owner about the products they need, as well as offering tips and ideas for projects or problems, can turn a first-time visitor into a loyal customer. Kingsland credits this kind of focus on relationship building with his store’s ability to win over farm, pet and ranch shoppers. “Our focus is on having the skill to help customers,” Kingsland says. “Because we work so closely with them, we have sources they can turn to for help with whatever they need. From a vegetable farmer looking to protect against some kind of bug to a pet owner that has a problem, we have the products they’re looking for and experts they can turn to. We can get them the answer; we don’t have to tell them to go down the road.” Whether your business caters to a farming community like BDK or you’re just adding a selection of products within the farm, pet and ranch category to your business, it’s important to understand what customers want. Hardware Retailing spoke to four different customers from across the country with distinct needs in the category. On the following pages, you’ll hear from a 4-H participant, a small-scale farmer, a pet owner and an urban farmer. Each customer shares what they’re looking for when shopping at stores that sell farm, pet and ranch products. In addition, Kingsland offers insights on how to best reach each type of customer. May 2017 | HARDWARE RETAILING

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4-H Member Matthew Meyer 4-H member Sarcoxie, Missouri Growing up in a farming family, Matthew Meyer got started in 4-H at an early age. Joining as a Clover Kid, the agricultural organization’s youth program, Meyer has shown multiple animals in competition. He has also competed in welding and woodworking projects. Meyer, a senior at Sarcoxie High School, is the oldest of three siblings all involved in 4-H. His father, Eugene, is an agricultural instructor, and his mother, Lori, is a volunteer in the county 4-H program. Meyer often shops at Race Brothers Farm & Home Supply in Carthage, Missouri, and here’s what he says he wants from them.

Products He Needs Sarcoxie is a rural area, so there’s no shortage of stores that can supply locals with farm products to meet their needs. However, that doesn’t always mean a store is the best for 4-H. Finding a place you know will stock the items a 4-H member needs for their animals or projects can help, according to Meyer.

There are a lot of different projects to get involved with in 4-H, he says. Members can compete in a number of projects, from art to nutrition, so they don’t always involve animals. The Meyer family is highly involved in showing animals for competition, and that requires specific types of feeds and products that wouldn’t normally be needed by a farmer. “We use special adhesives and oil-based products to give our show animals the best sheen we can. We also need feed and additives that are designed to help an animal get to a goal weight for their appearance at competitions,” Meyer says.

Services He Wants Experience in 4-H goes a long way toward earning Meyer’s business, and that’s a big reason his family shops at Race Brothers. Sometimes it’s not just the supplies he needs; it’s the knowledge if he’s working on a new project and not sure where to start. “I was showing a new breed of sheep and didn’t know much about it. I came in to Race Brothers for answers, and the staff there was able to provide tips for that breed,” Meyer says. “You can only get that kind of help when there’s a base of 4-H experience in an area. We’re treated like family, and they make us and our project their No. 1 priority.”

4-H Club members often require specialized feed and cosmetic materials to get their show animals in perfect shape for competition. Race Brothers Farm & Home Supply in Springfield, Missouri, works closely with groups like 4-H.

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HARDWARE RETAILING | May 2017

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4-H Member Events He Attends The main events for 4-H members are the county, district and state fairs, which are the big stages for most 4-H groups to show projects and animals. Race Brothers is very involved in the fair, Meyer says, including buying animals at the annual auction after the fair. The auction money often funds next year’s projects or goes into a college fund for the member. Race Brothers also conducts a showcase throughout the year, giving time for each 4-H club in the area to show projects they’ve been working on. “That plays an important part for a lot of members like me, because it gets some of the lesser-seen projects into the spotlight. 4-H isn’t just showing animals. There are a lot of projects beyond the barn,” Meyer says. “Not everyone in the community can get out to the county fair each year, so it’s a chance for everyone to come out and see what each kid is working on.”

Zach Mason (left) a manager at Race Brothers in Carthage, Missouri, talks chickens with 4-H member Matthew Meyer.

Darrell’s Directions: “Working with 4-H members is about backing up products with support. You need the specific products they want, but being a resource for young people working in agriculture is just as important. We’re an education source, with our chick seminar being an example of that. Our attitude is, we want to make everyone a champion.”

“Make your store available. We do farm calls, where we can go out there and see an animal firsthand to help the club member get in the running for the show. Being a smaller store might help us in some ways, because we have the knowledge and we can focus on each animal and project.”

“We have two scholarships that we sponsor through another agricultural organization, the National FFA Organization. With our 4-H kids and clubs, we give 1 percent of their sales back to them. We’re big into supporting clubs at the county fair, and we like to supply gift cards and food that they can use for fundraisers.”

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Small-Scale Farmer Kyong Soh Senior Production Manager, Tilth Alliance Auburn, Washington

Products She Needs On a smaller farm, Soh needs all of the same equipment that any farmer needs to cultivate the land. However, she’s often working with a smaller budget and on a smaller scale. Access to as many products in one place is important as she’s often in a rush to gather supplies, but she also values the relationship she builds with a retailer. “After product selection and pricing, we really choose retailers by our values system. We try to source from individually owned businesses and cultivate those operations,” Soh says. “We try to source from them and support them, because we’ve seen the impact that buying from locally sourced retailers can have on communities. That money is coming right back in beneficial ways.”

With original roots stretching back to an agricultural family and community in South Korea, Kyong Soh cultivated her sustainable agricultural experience in New York before transplanting to the Pacific Northwest with her family. Soh’s primary experience is in cooperative farming systems, sustainable and organic farming, educational farming and regional food security systems. She supports over 35 farmers in their business development while operating a 40-acre farm. Tilth Alliance is a nonprofit organization in Washington state that brings people from diverse backgrounds, such as rural and urban; farmers and eaters; and gardeners, cooks and environmental advocates; together to learn about growing and eating fresh, nourishing food while regenerating healthy ecosystems. Here is what she says about her shopping habits.

Services She Wants Staying local also means retaining relationships. An important part of Soh’s relationship with retailers is purchasing. Having flexibility in how she can purchase from a retailer is important,

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For Kyong Soh, senior production manager for Tilth Alliance in Washington state, finding a local retailer isn’t just about supplying goods and services. A shared attitude favoring locally owned and operated businesses is key.

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Small-Scale Farmer and with some larger stores it can get “cookie cutter,” Soh says. She prizes custom, unique and flexible ways of purchasing, and that’s more easily accomplished at smaller stores. Retaining employees is also important. “Long-time employees have a historical reference of your farm and operation. To have an extra pair of ears that knows the store intimately, that will win me over,” Soh says. “It’s someone you can always talk to about your business. They’ll say, ‘You want this bolt, not that. You want to work the project this way.’” A small farm, by its nature, does more with less. That can often mean few workers on the farm, and sometimes Soh needs specialized skills to finish a job. A retailer that either employs or has contacts for tradesmen, such as welders, is a great benefit. “Those are skills that are fading, and we want to encourage people to seek those trades,” she says.

Partnerships She Values Soh partners with businesses and retailers that are willing to head out to the farm if the need arises. “It’s a really great selling point for a business when they do that; it gives a stamp of approval that this is a community-based business that is contributing back into the community, so I should reciprocate,” she says. Some hardware stores offer supplies and materials, and then partner with a group that has labor to build out a shed or improve a hiking trail. “Organizational partnerships foster what I call the “Cheers” effect. You want to know someone’s name at a business, and customers want to be known,” Soh says. “That culture is a lot harder to find at a big-box store. Any event that creates that environment, especially for a small-scale farmer, is one we want to get behind.”

Darrell’s Directions: “Our whole business is small-scale farmers. Where we can help them best is giving them access to features or services beyond their farms, while also having the products they need. For such a vital part of our business, it’s important that farmers can walk in and get all of the supplies they need in one stop.”

“Through our feed suppliers, we have contacts that would be difficult for a farmer to maintain. For example, a farmer may have a hay problem, like the horses aren’t responding to the hay they are being fed. We can have that hay analyzed for its proteins see what is lacking. In this way, we provide a solution.”

“Most small-scale farmers will have their own garden spots, so updating their garden supplies is a must. Retailers need insecticides and weed control for these customers, too.”

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Pet Shopper Wendy Ralph Owner, Golden Acres Farm & Kennel Blanchester, Ohio Wendy Ralph and her large family run Golden Acres Farm & Kennel in Warren County, Ohio. They raise cattle, poultry, goats and rabbits for their own needs and for sale. The Golden Acres team has bred and raised golden retrievers, golden retriever-poodle mixes and standard poodles for six years, and the kennel offers dog boarding, too. BDK serves as a supplier for Golden Acres’ feed and hardware needs. Here is what Ralph says about why she shops at BDK.

Products She Needs At Golden Acres, there are a lot of chores that need to be done, including taking care of several types of animals. Ranch animals are mostly for the Ralph family’s needs, though the farm does raise and sell livestock when orders come in.

The family boards dogs as well, but the main part of the business is the breeding operation. “Because of the kennel, we always have a lot of dogs on hand. We feed them as much natural product as possible. I used to be a veterinary technician, and I really think it’s important to stay away from grains in dog food,” Ralph says. “It just goes right through their system and doesn’t leave any nutrients behind for them to grow from.” A big reason why Ralph uses BDK is that the store carries the kind of high-end feed that Ralph supplies the dogs, while also having everything else she needs in a hardware store. “If I’m picking up supplies for repairs, I’ll pick up my dog food there. Bedding is also a big need for us with how many dogs we have,” she says. “They have cedar bedding that we use for our breeding operation and for the dogs we board.”

Services She Wants Ralph is most interested in services she’s seen involving convenience for pet owners. She likes

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With pet food and supplies making up a large portion of BDK Feed & Supply’s business, owner Darrell Kingsland makes sure to stock the highest-quality items at the Blanchester, Ohio, store.

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Pet Shopper events like a mobile veterinarian that can visit a store on occasion to take appointments. “Owners can bring their dog in so they can get their shots, get a checkup and so forth. Those kinds of things that can help an owner care for their pets in a convenient way is neat,” she says. Those connections don’t have to stop with a vet. Ralph is a connection for BDK with the dog boarding business in case a customer is looking for someone to watch their pets. That can expand beyond the pet category—for example, referrals for plumbers—but being known as a place with connections in the pet world is important.

Events She Attends

A well-stocked pet display is pictured at Race Brothers in Springfield, Missouri.

Educational events have attracted Ralph’s attention, especially those that teach pet owners how best to care for their animals. BDK conducts special events that will offer information, such as how to protect pets from ticks. “These kinds of educational tools are how retailers can show they have my pets’ best interests in mind. That gets that retailer better business in the long run,” she says.

Darrell’s Directions: “Keep the pet department prominent if you want customers to know you for your pet products. Ours is right by the entrance to the store and stocked up at all times. Pets can be a great draw for customers, and being open and friendly to pets is a big part of that.”

“We cater to the high-end pet customer. That means quality feed and treats that are really beneficial to the animal. It might cost more, but high-protein feed will satisfy a pet with smaller servings, ultimately costing the owner less.”

“Partner with dog training organizations, 4-H members showing dogs and cats, and veterinarians. We work with a vet that knows we stock the feed, supplement or medicine he will recommend.”

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Urban Farmer Laura Matter Garden Hotline Manager, Tilth Alliance Seattle, Washington Laura Matter has been a practicing horticulturist for the past 30 years. During 10 years with Seattle City Light, she worked with her crew to replace and reduce pesticide use. Under her guidance, a large electrical station was registered as a Backyard Wildlife Sanctuary in the state of Washington after being enhanced with native plants and birdhouses and using natural pesticide alternatives. Matter ran her own landscape maintenance business for 14 years and currently provides landscape consultations and urban farm tutoring. Here’s what Matter says she wants from her local retailer.

Products She Needs Urban farmers are very concerned about proper housing for animals, Matter says, so materials and

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knowledge that can help them in that regard are key. She highlights neighbors, property lines and predators, such as possums, in urban environments, as potential issues for urban farmers. “In Seattle, we still have coyotes in urban environments, so livestock needs to be protected,” Matter says. “That means farmers are looking for waterers and feeders; they’re looking for food; they’re looking for warming lights and metal tubs to keep chicks in.” A home improvement store doesn’t need to always have chicken coops on site, but they should have materials for them to build the coops or be able to refer customers to a contractor who can handle the job. Access to straw is also important. Urban farmers tend to be looking for organic, clean straw with no herbicides. Matter cites a large market in decorative items, which might not be an obvious item to stock. For any livestock, their shelter in an urban environment is going to be part of a home’s overall appearance, and farmers like to personalize and

Shelter requirements and proper knowledge of an animal’s needs are the most important aspects of urban farming for new agriculturalists to learn, says Tilth Alliance garden hotline manager Laura Matter.

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Urban Farmer decorate these areas. People look for roosts that are more festive with colorful stands, Matter says. Items made out of recycled materials and inventive sculptural items are also popular.

Resources She Wants It’s important for the store to have knowledgeable people and also to have educational materials on hand. An employee who can assist a customer who is just beginning as an urban farmer is a great asset, particularly if the customer is asking what animals and breeds they want to raise. From chicks to goats and beyond, there are different breeds within each species, and someone who can deliver on that kind of in-depth knowledge is very important. Building a collection of resource materials at the store that can help a customer even after they leave will help many first-timers on their way, Matter says.

Partnerships She Values Supplying feed and shelter needs brings customers in, but being connected with others who tie into farming and livestock can be just as important. Even hardware retailers that carry chicks and ducks won’t normally carry goats, Matter says. Being able to connect customers with breeders for different types of animals can garner attention for a store. Farmers will look for veterinarians who work with livestock, so having those connections is key as well. Then, particularly in urban farming, it’s helpful to have contact with pet sitters who know how to care for urban livestock. “I am really looking for people to trust with my animals, so a recommendation from a retailer I’m familiar with can help,” Matter says. “An event where a vet or pet sitter is in the store and can have a conversation with a customer helps establish that relationship.”

Darrell’s Directions: “Feed quality is different for backyard and urban farmers compared to other livestock farmers. A backyard farmer is looking for dried meal worms and other high-quality feed to supply their animals, while a farmer with a large flock wants their chickens to go find their own.”

“Make sure the customer knows the details. That means how large a coop needs to be for the number of chickens they want to raise. Educating customers up front on how to take care of their animals—that goes hand in hand with getting the sale.”

“Education and connections are key for urban farmers. Be a resource of knowledge for them and have connections for anything you can’t answer or supply. Those connections, combined with programs we conduct on different topics, like an introduction to raising chicks, is vital for us.”

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f you want to boost sales in your core categories, a good place to start is to review your merchandising. While having profitable categories means finding well-trained employees and an inventory selection that meets your customers’ demands, don’t overlook the importance of clean, well-maintained displays. With good merchandising, you encourage add-on sales and impulse buys, you point customers toward higher-margin items and you make the best use of your shelf space. If you put extra effort into making displays that will compel customers to stop and shop, you will be rewarded with higher margins and higher transaction sizes.

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Do you need some ideas for giving your merchandising a facelift? The staff at Hardware Retailing has been scouring our photo files for inspiration. Last month, we offered examples from retailers of good merchandise techniques in the electrical, plumbing and lawn and garden categories. This month, we’ll showcase tools, paint and hardware and fasteners. While the following pages contain some great examples, visit TheRedT.com/all-stars to see our complete photo library of innovative merchandising techniques. If you try some of these ideas, you’ll no doubt find your core categories hit a home run with customers every time.

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Core Category All-Stars

Hand and Power Tools

“Signage is the silent salesman to educate the customers when a sales associate isn’t around,” says Leigh Ann Akard, owner of Akard True Value in Zionsville, Indiana. “For some of the younger part-time staff, it gives them a resource to use that is close when helping a customer.”

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A strong brand presence is one of the principles of effectively merchandising the power tools category. A manufacturer planogram with brand signage and coordinating colors helps focus a customer’s attention on the brand. The finishing touch at Fitzpatrick’s Hardware in Alpena, Michigan, is the special lighting that makes the display a focal point for the department.

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One appealing way to show hammers is by angling the hooks, as pictured here at Cherry Street Building Supply in Culpeper, Virginia. Use a good-better-best arrangement, and teach your employees features of better hammers so they can upsell customers to a better model.

At Nuts and Bolts True Value in Overland Park, Kansas, a mini power aisle dominates the power tools department. Tools are displayed out of the box so customers can pick them up and compare different models. Low racking in the middle creates open space so the area doesn’t feel crowded. The chrome plating replacing the traditional pegboard adds to the character of the department.

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With only 5,000 square feet, Mayer Paint and Hardware in Rochester, New York, has sliding racks in several departments. “This allows us to make the most of every square inch. Some areas have two layers of sliders,” says store manager Dennis McCarthy. “For us, merchandising is a constant process. Even the most recently updated department has already been marked for changes.” That works in his favor, as customers don’t always go to the same spot in the store. They also are more likely to see what’s new. “Customers bask in all of the new and different products we are always getting in, but sometimes, those are items we’ve had all along, but were just recently moved to a better spot.” May 2017 | HARDWARE RETAILING

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Core Category All-Stars

Paint

This endcap at Akard True Value uses a couple of simple props to dress up the top of an endcap. It pairs a project starter (paint) with an add-on sale (tape) for an effective merchandiser.

To sell paint to do-it-yourselfers, find a way to inspire them. This cabinet at Klingbeil Lumber in Medford, Wisconsin, showcases specialty paint as it might be used on a piece of furniture, creating interest and prompting an impulse sale.

Stacking caulk tubes vertically is a way to get the full product label out in front of customers. At Cherry Street Building Supply, this method allows for a lot of product to be displayed in a compact space.

The sleek paint counter in the recently remodeled paint department at Lugbill Supply in Archbold, Ohio, provides a showcase for the store’s paint brands. “We wanted a custom counter that set us apart from the other paint stores, and a place to make customers feel more invited and at home,” says Steve Nafziger, marketing manager. “We created this to be a space where people can envision their projects and receive help without feeling like they are lost in a flurry of random products.”

A separate room for paint draws attention to the category and invites customers to sit and choose colors. At Northwoods Hardware Hank in Spooner, Wisconsin, paint cans are stored behind the room, placing the focus on the color chip racks.

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Core Category All-Stars

Hardware and Fasteners

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Boxes of fasteners may not create the prettiest display in the store, but they need to be organized and functional. This display at A & R Home Center in Washington, Indiana, organizes nails by type using manufacturer color coding. Since these items may move quickly, it’s important employees monitor it throughout the day so shelves are full and fronted.

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Another hot trend in interior decorating is using barn door hardware to add a country, vintage feel to the home. This display at B & B Hardware in Milan, Illinois, uses a miniature barn door to show what it will look like when finished. While additional styles are available, having only one type out of the box is adequate for showing customers how easy a product is to install.

Customers can order just about any style and color of mailbox at Rollier’s Hardware in Mt. Lebanon, Pennsylvania. This display lets shoppers know at a glance that they don’t need to go anywhere else for a wide selection. Having high-end mailboxes at eye level mounted on a wooden display encourages an upsell to a higher-margin item.

When merchandising hardware such as door stops and window locks, display an example on the outside of the bin so it’s easy for customers to see the range of options you offer and for them to quickly grab what they want. That technique has worked for Cherry Street Building Supply.

According to trend-watching consumer website Houzz.com, satin brass will be a popular finish in 2017. Seeing the latest fashion trends as well as old favorites will be important to customers shopping the door hardware category. At Saskatoon Co-op, in Saskatoon, Saskatchewan, Canada, door hardware options are displayed so they’re easy for customers to touch. Above the top row of shelving, roll-down signage hides the overstock.

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Plot Twist The industry’s Top Guns typically include established, leading-edge retailers, but this year, hear from a quartet of Young Guns blazing trails for all independent retailers. Page 132

If you’re in Vegas for the show, make sure you take a look at all that’s available in the NRHA Village! Page 158

Lookin’ Good “There’s no doubt that these retailers represent the future of our industry.” —Scott Wright, executive director of NRHA’s Retail Leadership Institute

Product packaging and merchandising matters to you and your customers. Check out which companies took home top honors at this year’s NRHA Packaging and Merchandising Awards. Page 190

WHERE IT ALL HAPPENS

Stay up-to-date with all the interesting products, events and goings-on! Page 164

Learn about the main event, and then see it all for yourself at the NRHA All-Industry Conference at the National Hardware Show® in Las Vegas, May 9-11. Differentiate Yourself While online retail receives all the attention, the “in-store experience” still plays a critical role in shoppers’ buying habits. Page 172

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“The store is the environment in which retailers can showcase all the things they’re good at and differentiate from their competitors.” —Jim Robisch, senior partner of The Farnsworth Group

Get Connected Is your in-store technology up to snuff with your customers’ expectations? Page 182

Special Edition: Young Guns

The Industry’s 2017 Young Guns Find Out How These Young Retailers Climbed to the Top 132

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Scott Jerousek

I Jonathan Miller

t’s a brave new world for independent home improvement retailers today. Retailing is changing, and welcoming the challenge head-on is a new breed of independents embracing a bright future for our channel. For the past decade, the North American Retail Hardware Association (NRHA), Hardware Retailing magazine and the National Hardware Show® have honored the industry’s leaders in the Top Guns program. This year, there’s a new spin as we feature four next-generation independents who continue to grow the legacy of their family businesses. “This year, we are recognizing these Young Guns to give the industry some insights into their thoughts and dreams, and to demonstrate the vitality of the next generation of progressive independent home improvement retailers,” says Scott Wright, executive director of NRHA’s Retail Leadership Institute. The Young Guns will gather at the 2017 National Hardware Show for a panel discussion that will take place at 1 p.m. Wednesday, May 10, on the NRHA Village Stage. The 2017 Young Guns include:

• Scott Jerousek, Farm & Home Hardware Since purchasing the business in 2007, Scott has grown sales from $3.8 million in 2007 to $5.2 million by driving sales and customer counts in the store’s lawn and garden and outdoor power equipment departments. He is looking at expansion opportunities in the region.

• Jonathan Miller, Miller Hardware

Diana Brunjes Newton

Jonathan represents the fourth generation of his family’s business, spearheading the online ordering and purchasing at all three locations. He’s currently working through the succession of the business with his father and older brother.

• Diana Brunjes Newton, Bay Hardware Diana made a career change in 2008, returning to the independent home improvement business. Instead of joining the family business outside Chicago, her father purchased a hardware store in Seal Beach, California, and bought a second location nearby in 2013. Diana is currently spearheading a remodel of the original location.

• Matt Woods, Woods Hardware

Matt Woods

Late last year, Matt moved the family’s existing 1,500-square-foot hardware store and locksmith business to an 8,000-square-foot location a block away. During this time, he also acquired an existing four-store hardware operation and Internet business.

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Scott Jerousek Farm & Home Hardware Wellington, Ohio Hardware Retailing (HR): Can you give us a little background on your company and how you got involved in the business? Was this your first career choice? Scott Jerousek (SJ): You could say being an entrepreneur is in my blood. My grandfather is proof of that. Back in 1960, he believed so much in the idea of Farm & Home Hardware that he put the family farm up as collateral for his first loan. I started earning my keep about the same time I started walking. Back then, for the grueling job of dusting and stocking the shelves, I was paid with sandwiches and all the snacks I could eat. As the years passed, even though I worked retail to help out the family, I never thought it would be my career path. I thought a degree in finance was the way to go. I was intrigued with big business and the stock market, and the financial world encompassed both of my passions. However, my dreams of a degree from Ohio University were quickly put on hold due to my father’s dwindling health. I returned home to help my family and to help the faltering business.

HR: When did you decide this is what you wanted to do? SJ: As I grew up, I watched my father age much too quickly due to the stress of owning a small business. While trying to build a future for his family, he worked himself to the bone with little compensation. I still cherish our time together. He made me the man I am today. He taught me so much, but I knew that there had to be a better way. I learned to do things smarter, not harder. We started to implement training programs for our staff, and we realigned our key departments. Those small changes showed positive increases. Then the housing boom started. If you weren’t seeing 10- or 15-percent increases every year, you must have been doing something wrong. Business growth was easy, but there was no way it could sustain at that pace. With a wary eye toward the future, we wondered what effect an economic downturn would have on the business.

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How do we prepare ourselves for life after the crash? That’s when the analytical side really started to resonate with me, and suddenly retail became so much more interesting. I bought the business in 2008. As predicted, the market could not sustain, and the housing crash and recession started. It was time to put my theories to the test.

HR: You emerged stronger from where you started after buying the business in 2008, growing top-line revenue from $3.8 to $5.3 million during one of the toughest economic times in recent memory. What are some of the growth opportunities you have your eye on for the future? SJ: I took a hard look at my business. Growth had slowed, and I needed to understand the factors. By utilizing market potential reports, I found that we had done a great job

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maximizing our current location’s top-end sales. We had nearly doubled the potential predicted by the experts. I felt our growth opportunity was in acquisitions. By focusing on top-line growth, we were able to start extending our brand and business model to adjoining communities. This also created operating efficiencies that would help to increase profitability for the business. We are again looking at market potential reports to find more of these opportunities. Then we will analyze their business situation and project our model into their location. By looking at the growth opportunities and risks associated with each business, we can then calculate a ROI for that location. This process was made significantly easier by the relationship I have established through NRHA with the good folks at Aubuchon Hardware. Marcus [Moran, Jr.] and Josiah [Gates] have been instrumental in helping me establish evaluation metrics for the acquisition process. I would again like to thank them for their time and professionalism.

For Scott Jerousek, who bought the family business in 2008, future growth lies in acquiring additional businesses and adding categories.

HR: What unique challenges do you think independent retailers face in today’s market? SJ: We want to continue to cultivate our relationships with our current customers while also preparing to fulfill the needs of our next generation of consumers. We identify want they want, and we make it happen. Online retailing is here to stay, but people still crave personal interaction. Interpersonal communication is a must in our business. Even with our 360-degree marketing plan, we make it personal, and we make it relevant. We utilize print advertising and some direct marketing through our customer rewards program. On the digital side, we utilize our website, email marketing, social media and Google AdWords to promote the Farm & Home Hardware brand. Thanks to Independent We Stand, Small Business Saturday by American Express and other organizations, being a small business is cool again.

HR: So acquisitions will play a major role in your future growth? SJ: Acquisitions are definitely an opportunity for our future, and we are working every day to find the right fit, but both parties must get a fair deal in order for that to work. I want to be able to look the owners in the eye, shake their hands, and tell them that they have done a great job building their business. I want them to know we are only adding our story on to their legacy. There are plenty of great hardware people in the business today. Quite a few are ready to retire and hit cruise control instead of investing time or money in growth. Unfortunately, their stores become stagnant and their business starts to decline. Finding these opportunities to work

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While lawn and garden is a pillar department, Jerousek looks to other categories to supplement sales during the off season.

with experienced owners is paramount to our growth in the future. Eventually, I can see Farm & Home Hardware with five or six locations.

HR: Outside of acquiring new hardware stores, what are some of the other growth opportunities you are pursuing? SJ: Independent business is demanding in hardware and in all other fields. We have grown significantly by identifying these opportunities. Both independent garden centers and outdoor power dealers deal with the same issues. How do they remain relevant and profitable with increasing big box competition? Business is booming for a portion of the year and dead in others. It’s difficult to deal with these ebbs and flows and still remain profitable. Our parents had great work ethic. They had no problem working 50 to 60 hours a week to build a business. Their children would like a better return on their investment, and have moved on to build their own careers. With that, there has been a huge change in the retail landscape. We looked at these opportunities as pillars of our business for the future. We needed departments that could compete with big-box chains. We are able to offer the same uniqueness as other independent stores, but we don’t need to support the entire business with any one pillar. I feel appliances and furniture are great opportunities, too. Again, customers are looking for a personal experience at a store they can trust. We offer service for everything we sell, so the opportunity for additional transactions is there. With the decline of Sears and other appliance stores, there has been a huge hole that needs to be filled. The big-boxes

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have seen the benefits of appliances. I feel we can offer people another viable option. It’s all about the operating efficiencies. We have a current service program in place for our outdoor power department. We deliver, we sell the parts and we can repair your equipment. Adding appliances to the mix should be interesting. I love the challenge.

HR: Can you talk about the value and importance you place in furthering your education and networking with other independent retailers? SJ: I’m a big believer in networking with other critical thinkers. My first mentor in hardware was a numbers guy who taught me about the analytical side of the business. I still run ideas by him. Over the last five years, I’ve focused on personal growth and recognized the importance of working on the business. Running the operation from 30,000 feet has helped me develop our staff and programs to prepare us for the future. Dealing with other people in the industry who are the best at what they do is imperative for the continued success of my business. The best way to overcome obstacles is to learn from other retailers. NRHA is championing the cause of independents and facilitating discussion. We are all facing the same issues, and by working together as independent retailers, it’s going to make us, and our industry, stronger. I believe your customers can love your business only if your staff loves it first. There are many different business models to follow, but the ones that have enduring success are the ones where employees felt valued. Invest in your culture, and it will reflect on your bottom line.

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Jonathan Miller Miller Hardware Valdosta, Georgia (Three locations) Hardware Retailing (HR): Can you give us a little background on your company and how you got involved in the business? Was this your first career choice? Jonathan Miller (JM): Just as most anyone who grows up within a family business, I worked at the store throughout my middle and high school breaks. As the youngest of four children, I was always chasing the footsteps of my brothers and sister growing up. As I finally reached the ripe age of 18, I knew very little of what was to come, but I could tell you that the hardware store and Valdosta was not going to be part of it. Leaving town as fast as I could, I set out for Auburn University, where I pursued a bachelor’s degree in finance. I cherish every second I spent in Alabama. The friends I made and network I built is totally invaluable. From Auburn, I moved on to Atlanta, where I pursued my MBA at Mercer University. As graduation neared, I began looking heavily toward a job involving the financial markets. In an ideal world, I wanted to put in my time as an internal fund wholesaler, working my way to an external position. The lifestyle seemed attractive, the pay substantial, plus it would more than likely keep me within a large city—close to friends and other people similar in age. At a distinct point in time, between personal quiet time and close friends’ testimonies, I decided to list my true priorities and the best ways to enhance those relationships and reach those goals. The commitment to work for Miller Hardware Company was one of many God-invoked decisions that have impacted my life. It’s part of a path that led me to the most incredible person in the world, my wife, while giving me an opportunity to interact with my family on a daily basis. My father couldn’t have been more encouraging or less pressuring. We do not always agree, but the process of working toward a compromised solution always works in the benefit of the business. I’m blessed beyond belief and owe it all to my family.

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HR: You operate three very diverse and different businesses. How did these three businesses come about, and what are some of the challenges in serving such a diverse customer base? JM: Miller Hardware Company was founded in 1908 and is made up of three distinct divisions: Whitehead Industrial Hardware, which serves the industrial market, primarily MRO and the construction trade; Miller Hardware, which is the founding, downtown core hardware location; and Seasons Garden Center, which is our retail hardware and garden center location. I believe each division sprung out of an opportunity to diversify. Each business spawned during a separate generation of ownership. The difficulty lies in tailoring a major decision that supports the best interest of each division. For example, we serve the industrial channel,

“The commitment to work for Miller Hardware Company was one of many God-invoked decisions that have impacted my life. I’m blessed beyond belief and owe it all to my family.” May 2017 | HARDWARE RETAILING

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A Multi-Faceted Business Miller Hardware Company is a diverse business with a broad customer base. Its three divisions cover the industrial market, the core hardlines categories and the popular retail hardware and lawn and garden arena. Along with brick-and-mortar stores, each division has a strong online presence.

The worst part about it is, there’s no clear formula. Every generation brings to the table certain strengths that you can’t afford to ignore or leave out. Change management is obviously a large piece of the equation; for success, it’s most important to have a non-discriminatory team who sincerely understands the necessary reasons for change. Miller is currently working through a succession plan with his family. He says it’s key to start the process early and give unfailing love and respect to everyone involved.

commercial contractor and the garden enthusiast all out of the same ERP (Enterprise Resource Planning) and accounting department. What’s beneficial for one industry may be a hindrance or poor decision for another. Aside from financial resources, it’s important to disperse your level of attention appropriately. It’s easy to become blinded by sales volume and nearsighted by success. I’m incredibly thankful to have my brother involved, allowing us the flexibility to shift through each area of the business.

HR: What unique challenges do you think independent retailers face in today’s market? JM: I feel the common answer to this question would be Amazon and the big boxes. However, looking beyond the uncontrollable, the greatest area of concern is bridging the generation gap—not only with customers, but even so with employees. This concept will bleed into all key areas of a business. It’s critical to step back and realize that the way not only your customer buys, but also the way you should be buying from vendors and probably most importantly, the way your employees buy in to your culture is changing significantly— effective yesterday!

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HR: What are some of the key opportunities that you feel independent retailers will have in short term? JM: Drive home the point that you are local, and encourage customers to buy that way. Many Millennials and Gen Y, specifically those with higher discretionary incomes, are attracted to a more premier, intimate shopping experience. This concept is best illustrated in the restaurant industry. The key word here is experience. Find a niche that may be a void in your community. In 1996, my father built a retail hardware store with a small garden center attached. Twenty years later, we have a garden center with a hardware store attached. People shop our hardware store hoping to fulfill a need or fix a problem, but wander outside and you’ll find folks in search of an experience that involves a consumable product.

HR: Where do you see the business in the next five years? JM: I would like to see us take a much more progressive stance as an organization. Far too many of our current processes are results of our business’ evolution. Rather than us taking into account current variables, we are still playing outdated strategies in many of our high-impact areas. I’m not saying we are not eager to increase in number of locations, but I do believe there’s far more to it than a financial decision.

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I’m a believer that a sustainable, succeeding business must carry a healthy anatomy. Identifying operating inefficiencies is just as critical as an uptick in sales. We don’t have the necessary procedures or road maps built just yet to convince me to consider acquisition. Hopefully in 10 years, we will have positioned ourselves to pursue physical growth. Learning from others’ acquisition models has stirred a motivation in me to pursue non-succeeding family hardware and garden retail centers at some point in my career.

HR: Where do you see the home improvement industry in five years? JM: I’m a strong believer in the omnichannel concept. If you aren’t currently providing multiple channels for your customer to transact, you are behind the game. A productive ecommerce website is not ‘plug and play’, nor does it come to existence quickly, regardless of your resources. If you choose to pursue selling online, be very aware that there are a prolific amount of people who will gladly take your money in return for a weak jab at developing your site. Integration into your ERP system, mobility and having a key, vested person overseeing the project is vital.

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Since establishing our presence online in 2011, we have set aggressive marks for this division of our business. In the future I see BOPIS (‘Buy Online, Pickup In-Store’) affecting all three of our markets. It’s interesting to notice that some retailers are already reserving privileged parking closer to the doors for such transactions.

HR: Can you talk about the overall value and importance you place in furthering your education and networking with other independent retailers? JM: I believe industry education and networking is an invaluable resource for better understanding our businesses. Human nature is always going to gravitate toward comfort, and most people find comfort in their homes and community. However, the truth is that the industry we operate in does not pulse out of our backyard. So many aspects of our business vary geographically. Opportunities to learn these differences and identify our weaknesses are readily available. Attending trade shows such as the National Hardware Show, or becoming involved with industry-specific associations, such as NRHA, are great places to start.

HR: You are currently going through a succession plan with your family. What advice would you give to other families as keys to success in this process? JM: Start early—as in now. I have an unfailing love and respect for every person in my family. It’s important to realize that each required decision is in consideration of the longevity of the company. I can only suggest that you apply adequate attention and involve professional consultation that can identify every possible angle. Ultimately, the method you devise must make the most sense for the longevity and valuation of the company.

HR: What advice would you give to someone considering getting started in this industry? JM: Don’t box yourself in. Thinking back to my late grandmother’s influence to move into a larger market, my grandfather’s ambition to construct a new retail space, my father’s motivation to oversee an acquisition, then eventually extending the company into plant materials—all came as a result of stepping out of the core. My personal goal is to simply exploit every industry resource I can possibly find and constantly pursue practical opportunities that enable growth.

Miller expects omnichannel to play a major role in the growth of the home improvement industry in the coming years.

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Diana Brunjes Newton Bay Hardware Seal Beach, California (Two locations) Hardware Retailing (HR): Can you give us a little background on your company and how you got involved in the business? Was this your first career choice? Diana Brunjes Newton (DBN): I grew up working in our family business, Craftwood Lumber & Hardware, in Highland Park, Illinois. But when I went off to college in 2002, I decided to go into education, as I always wanted to be a high school math teacher and teachers were in demand. By the time I graduated in 2006, that market was very saturated, so I ended up working part-time at a tutoring center, and also part-time in the family business. I would work at Craftwood from 6 a.m. until noon. Then I would start tutoring at 2 p.m. and be there until 8 p.m. I received several promotions while at the tutoring center, and was essentially running the place after a couple of years. It was great. I got my fill of education while working with students and teachers, but also got to work in the family business. Unfortunately the owner of the tutoring center and I butted heads a lot. I didn’t feel appreciated and expressed that to my father. At about the same time, he had been talking to the owner of Bay Hardware in Seal Beach, California. We had to check it out before moving on with any real negotiations. My parents and I came out to California to visit the store for the first time, and I just fell in love.

HR: What was the store like when you purchased it? DBN: The store was in a tailspin financially, but I could see its potential. It was going to require a lot of work. When we first walked in, we were struck by the size: only 3,000 square feet. A lot of hooks were empty, pricing seemed inconsistent and a couple employees passed us by without a hello. So my parents and I talked about it, and we decided to go for it! For me, this was the best decision I had ever made.

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These series of events to follow have changed my whole life. But looking back, I definitely wasn’t as prepared as I thought. Operationally, some procedures in place were inefficient, and the inventory file was a bit of a mess. When I came in, I tried to lead by example, and I brought forth my ideas, work ethic, care, love and appreciation for what I do. If you don’t care about what you do or where you are working, it’s reflected in what your store looks and feels like to your customers. That was in was 2009. I was 25 years old, and I really had to prove myself to the employees and the customers. I was criticized for any mistake or bad decision I made—which were truly learning lessons, looking back. There were a lot of

“I feel it takes a really special kind of person to own and operate an independent hardware store. You have to know everyone, and everyone has to like you.” May 2017 | HARDWARE RETAILING

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Newton had to work hard to break into a tight-knit town. She embraced the local community by getting involved in community organizations.

customers who didn’t want to deal with me back then, who I now see in the store every day and who ask for my help. Seal Beach is very close-knit, and change is hard. But we were becoming more businesslike, and we were doing a lot of things to make the store better, and eventually people started realizing it. These changes were always with the best intent to make things better. There is no doubt that the store would not be here today if we hadn’t made these improvements and changes. Then, in late 2013, we purchased a second store in Palos Verdes Estates, about 20 miles north of Seal Beach.

HR: Like your father, did you feel a need to return to the family business after initially pursuing a very different career path? DBN: There is just something really cool about this business. It works for my family. My grandmother started at Craftwood, and my mom worked there in high school, which is how my dad got involved. All of us kids grew up there, and I feel it takes a really special kind of person to own and operate an independent hardware store. You have to be kind of weird or very unique. I can’t explain it. You have to know everyone, and everyone has to like you. That’s why they keep coming back.

HR: What unique challenges do you think independent retailers face in today’s market? DBN: I think the biggest one is staying relevant. We need to find ways to make sure people know we’re here and that they continue to shop with us.

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Branching Out When she was young, Diana’s family moved from California to the Chicago suburbs to join the family business, Craftwood Lumber. They vowed to return one day to California. In 2009, her father stumbled upon a store for sale near where they used to live.

We also have to do the things people expect us to be doing, such as having a nice website and a social media presence, offering special services, price matching and stocking certain products. There is also the challenge of being the “old school” store everyone remembers from their childhood. That isn’t always a good thing, when customers expect a modern-looking store with good lighting and signage and clean floors. You have to look at it from the customer’s perspective. For independents who have been in the same location for a long time, the hardest thing is opening your eyes and trying to see the store like you are seeing it for the first time. Another challenge facing independents is that we have a really hard time finding qualified, awesome people. I was reading an article about how difficult it is to find qualified tradesmen, as young people aren’t choosing that career path. I think the same is true for our industry.

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A lot of people are moving into service-oriented fields and technology, and it’s going to be tougher finding someone to hang your door or fix your faucet, or finding knowledgeable staff members for hardware stores moving forward. What will that look like in 20 years? I don’t know, but maybe that will be another opportunity.

HR: Where do you see the business in five years? DBN: I think every beach town could definitely support an independent hardware store of our size. But we’d have to do it right. I would love to open or purchase a number of stores up and down the coast. We’ve had several conversations with owners letting them know we are interested if they are looking to sell. At this point, I’m looking for people who aren’t already committed or towns I feel could support a store. I’m also interested in opening other related stores nearby, such as a full paint store or a rental store. I want to stay by the coast. While it’s a little more expensive to be here, there’s no chance of a box store coming in within a couple of miles. The space doesn’t exist. In this area, you’re looking at $50 million just for the property.

Newton says networking with other retailers and finding ways to further her education has been vital to her understanding of the industry.

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HR: Where do you see the home improvement industry in the next five years? DBN: In the near future, I think we will see the strong independent retailers taking over more stores. Every year, I hear a story about an owner passing, and his kids weren’t interested in the business, and they have to sell what was a viable store. Had we not come along, our second store would have probably closed by now. The owner didn’t have a succession plan; he was going to close and liquidate. I think there will be a lot of opportunities for acquiring good stores in both the short and the long term, and I am certainly keeping my eyes open for this. I’m excited for the future. We just had our best year ever at both stores. It would make me very happy if I would have 10 stores one day, helping make other people’s lives better, and getting to work with my friends at the same time. It doesn’t get any better than that.

HR: Discuss the overall value you place in furthering your education and networking with other retailers. DBN: I got involved in a networking group for local businesses about a year after I moved out here. I didn’t know anybody, so it seemed

like a good idea just to meet people. I joined the chamber of commerce, and eventually was president of the board. I was also secretary for the Lion’s Club. Being part of these groups was very important because it helped me develop my business acumen, while making friends at the same time. These networking opportunities helped me to meet like-minded individuals. We get so lost in what we do every day to make things happen and keep things going that we sometimes forget about the bigger picture, especially for those who are managers or owners. You can get lost on the salesfloor and lose sight of the things that can make your business successful. Going to classes like NRHA’s Retail Management Certification Program and Do it Best’s Leadership Development Institute really reminded me that you can’t run a business from the floor. I love the ideas I gather from them. It’s not always about doing something the same way someone else does it, but being able to make that concept work for you. These types of gatherings really motivate me to try new ideas and make things happen!

Matt Woods Woods Hardware Cincinnati, Ohio (Six locations) Hardware Retailing (HR): Can you give us a little background on your company? Was this your first career choice? Matt Woods (MW): I am fourth generation. My family

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started a locksmith business in 1933. As a kid, I was always in the store cutting keys, cleaning up brass and being underfoot of my father and grandfather. I actually went to college and majored in marketing and sales and ended up going to Florida, living there for 10 years and taking a job as a financial advisor. That was my first career choice. But after having our first child, my wife and I realized we wanted to be in more of a family working environment where I wasn’t just a number and could control my own destiny. We were a locksmith and door company up until 2006. But when many of the small, urban hardware stores in downtown Cincinnati were closing, my parents had the foresight to open a convenience hardware store as part of our locksmith business. It made sense because many of our customers were either maintenance or janitorial guys who needed other hardware items. Then several years later it became very popular to move back to the urban corridor, and we started seeing a huge swell of new residents and new businesses popping up as the downtown was growing.

We purchased that building in November 2015 and wrapped up construction in November 2016. We opened for business in the new store in January of this year.

HR: You recently moved your existing 1,500-square-foot store to a larger, 8,000-square-foot location down the street. How did this move come about? MW: At the time this opportunity presented itself, we were

HR: At the same time, an opportunity to acquire a well-established, four-store hardware operation presented itself. MW: I’ll never forget it. I was in Indianapolis attending the

actually thinking of expanding to a 3,000-square-foot store. We started talking to all of our customers, some of whom are property managers, and one of them let us know about a building right around the corner that was 8,000 square feet. They said they would give us the deal of a lifetime, and that they just wanted to do the development work. When I walked in, I was floored by the space, and the rest is history. It was half a block away, and we didn’t know about it.

NRHA Young Retailer Roundtable in the fall of 2015, where one of the topics for discussion was acquisitions. When I was driving home from that meeting, I got a call from my co-op’s sales rep, who said there was an opportunity to acquire a four-store hardware chain in Cincinnati. It was a chain owned by the Small family, and we felt that the opportunity was a perfect fit for our business plan. At first we only wanted two of the four stores, but as part of the

HARDWARE RETAILING | May 2017

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due diligence, we realized that the cash flow of the business was really in the two stores we didn’t initially want to purchase, as well as in their online division. We started peeling away at the onion and realized there was a lot of potential in acquiring all four stores and the online division. The biggest challenge is that this was our first acquisition, so we didn’t know what to expect as far as timelines, attorney’s fees or understanding how the acquisition process takes place. We thought it would be a six-month process, and it ended up taking almost 12 months to close the deal. That was last October, and we ended up moving our main location down the street in January of this year. Now we are in the process of remodeling each of those four stores. They are all going to have a similar footprint and design, with the same inventory across all stores.

HR: What are some of the key opportunities that you feel independent retailers operating urban locations have today? MW: We are seeing more millennials and empty nesters starting to move back downtown. Property might be a little more expensive in the city,

Woods’ parents added a convenience hardware store to their locksmith and door business in 2006. The company has grown as more people make their homes downtown.

but when you are going from a 4,000-square-foot home to an 1,800-square-foot home, it actually nets about the same. People want to be back in a community where you can walk to the local café. So you are seeing higher density, and it’s challenging for the competition to come in, due to higher costs. It’s not like a big box is going to come in a wipe out an entire city block to build a store. We really want to continue to focus on adding urban locations; however, we won’t pass up an opportunity for a good suburban store. We just feel like people moving into urban areas is a trend that will continue. We’re keeping our eyes out for finding the right location and the right people to run it. But with all we have been through recently, we’re focused on these six locations right now. I haven’t boxed myself in on how many stores we’ll have one day. Over the next two years I want to continue to refine the model and the SOPs (standard operating procedures) and then continue to grow from there.

HR: So growing through acquisition is part of the plan moving forward? MW: I heard a statistic that 45 percent of the attrition that independent hardware retailers are experiencing is due to lack of succession planning. We feel this will create acquisition opportunities moving forward. As long as interest rates remain low and credit is available, there will be more acquisitions in our future. But it’s not easy. It seems like there would have been more people interested in the acquisition we just went through. But very few wanted to take on the entire company at the same time, and the owners didn’t want to piecemeal the deal. It was also uncertain if the former owners would get a buyer, and they were

Fast Growth: In a 15-month span from October 2015 to January 2017, Woods went from owning a single, 1,500-square-foot store located in downtown Cincinnati to being a multi-store retailer after acquiring an existing four-store chain. During the same timeframe, he also moved his original store down the street to a much larger 8,000-square-foot building.

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So far, Woods has been focusing his attention on urban locations and capitalizing on the influx of residents moving to the downtown.

starting to slip into retirement mode. They had hit that fine line where they were trying to sell the business but hadn’t been reinvesting in it for several years. If interest rates remain low, and if you can get capitalized well enough, I have a strong feeling you will see more mid-size chains growing their presence across the country.

HR: Can you discuss the importance of having a succession plan? MW: As part of our family’s succession planning process, we have developed a trust. My parents are in their 50s, so they still have quite a few working years left. Because of our future growth plans, we worked with some really smart advisors and put together a trust and a financing plan that made sense for all involved parties. I also have three siblings who don’t work in the business, so we had to address that as part of the succession planning as well. You always hate talking about the death of your parents, but it was really important to have a sit-down and address all of these issues to make sure what my parents were planning was fair for everyone and that the business can continue succeeding well past their days. There were definitely some uncomfortable moments between me and my parents during this process, and I recognize that all of the growth we have been doing has been off of their foundational work. So it becomes a reciprocation of respecting their leadership and what they have accomplished. At the same time, they have really entrusted me and have given me a lot of leeway to try to grow this thing.

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HR: What unique challenges do you think independent retailers will face in the next five or 10 years? MW: Some of the challenges we face involve regulatory uncertainty. We like certainty, so whether the Affordable Care Act continues or the tax rates change or stay the same, it’s hard to grow when you don’t know what the future holds. My parents and I set up this trust based on the currently regulatory environment. Now there are huge changes taking place, so it throws some of our planning into limbo, and we’re asking ourselves, “Should we expand now, or should we expand later?”

HR: What is the value in furthering your education and networking with other independent retailers? MW: When I was in school for my MBA and being honored as an NRHA Young Retailer of the Year, every time I met someone who had “been there, done that,” I found myself learning some really great best practices and some great tips that we were able to incorporate into our business that have made a big impact. It’s really about the people you surround yourself with and the guidance they provide. If I could say anything to anyone who’s reading this article regarding future growth, it’s this: Get two or three very wise people with lots of business experience to help guide you. You don’t want to surround yourself with “yes” people, but rather with people who are going to tell you the truth. I’ve been fortunate enough to have three business development coaches who have all given me tremendous insight.

You Are Here Your Exclusive Guide to the NRHA All-Industry Conference and the National Hardware Show®

he excitement on the Las Vegas strip can’t compare to the buzz inside the Las Vegas Convention Center, May 9-11. The North American Retail Hardware Association (NRHA) All-Industry Conference, which is held in conjunction with the National Hardware Show®, has come to town. NRHA’s mission is to help independent home improvement retailers, regardless of wholesaler affiliation, become better and more profitable merchants. To achieve this, NRHA offers dozens of programs, services and resources focused on educating and training, advocating for the success of the independent channel and creating networking opportunities for retailers and other industry partners. The NRHA All-Industry Conference is the one place each year where independent home improvement retailers can learn more about NRHA’s programs, services

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and resources all at once. At this year’s conference, NRHA is thrilled to present industry expert speakers and host networking events in the NRHA Village. Located in the main lobby of the Las Vegas Convention Center, the Village serves as the hub for all things NRHA at the conference and the National Hardware Show. NRHA has organized the Village so it’s easy to pop in for a quick chat with another retailer, take a seat for an expert presentation or discover something new about your association. To be sure you don’t miss any of the action, use the icons at the top of this page to see where you will find education, advocacy and association opportunities. Use the Village map on Page 160 and the detailed conference schedule on Page 164 to plan your show floor circuits and networking meetings around the activity in the NRHA Village.

The NRHA Village Is the Place to Be at This Year’s Show

Learn Something New Connect With Others The NRHA Village Stage is where the spotlight shines on expert speakers and industry leaders at the conference. Experts will discuss everything from highlighting your superior customer service to delving in to what customers really think about your operations. Take a seat in front of the stage to gain knowledge that you can take home to your store.

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Other independent retailers understand your challenges and your triumphs, and the NRHA Village is where you can share and learn from one another. Whether it’s networking at the NRHA Independent Retailer Reception on Tuesday evening or just making casual conversation while you catch up on emails, this space is about you.

Discover New Products Outside of the thousands of products on the show floor, the NRHA Village is another place where retailers can learn about the latest products. The entries from the NRHA Packaging and Merchandising Awards will be on display in the NRHA Village throughout the entire conference so retailers can see the most innovative merchandising and packaging.

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

NRHA All-Industry Conference Speakers Stop By the NRHA Village Located in the main lobby of the Las Vegas Convention Center, the NRHA Village is home to the NRHA All-Industry Conference and serves as a hub for independent retailers who attend the National Hardware Show®.

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Will Aubuchon

Dustin Kaehr

Make sure to visit the NRHA Village to hear presentations from a variety of industry speakers. More information about each of the speakers is listed on this page.

Eugene Andreassi is vice president of retail services for Benjamin Moore & Co. He leads development and installation of next-generation retail store design, customer experience and merchandising concepts for the company’s independent paint, decorating and hardware retailers.

Will Aubuchon is CEO of Aubuchon Hardware, which is headquartered in Westminster, Massachusetts, and has more than 100 locations throughout the Northeast. Aubuchon was introduced to his family-owned and -operated company as a child and became a full-time employee in 1999. He was elected to the NRHA board in 2014.

Dustin Kaehr is a retail motivator and consultant with over 17 years of experience working with independent hardware, farm and agriculture retailers, national retail chains and small businesses. He presents seminars and training sessions on a range of topics, including marketing, sales growth, employee retention and the customer experience.

Al Meyers

Jim Robisch

Mary Walter

At Kalypso, Al Meyers brings innovation and new product development services to the retail sector and speaks on the future of retailing and innovation. His retail consulting experience includes developing strategies and implementation for customer focus, competitive appeals, omnichannel transformations and more.

Jim Robisch is senior partner with The Farnsworth Group, a market research and strategy consulting firm that specializes in the hardware, home improvement and building supply markets. He directs all retailer and wholesale service activities, including customer intelligence, brand positioning, advertising, market expansion, consumer research and more.

Mary Walter is a renowned retail expert. With more than 20 years’ experience in helping managers become exceptional leaders, she has the secret to accelerating leaders’ development and transforming results. She serves clients with a focus on measurable change and solutions that align with the business model and customer priorities.

Kit Yarrow, Ph.D.

HARDWARE RETAILING | May 2017

Eugene Andreassi

Kit Yarrow, Ph.D., is an award-winning consumer psychologist, professor and consultant. She is the author of the best-selling book, Decoding the New Consumer Mind, and co-author of Gen BuY. She also writes about consumer behavior for Time and Money magazines.

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Conference Events Schedule Tuesday, May 9 8:45 – 9:00 a.m. NRHA Village Stage Opening 9:30 – 10:15 a.m. Customers Uncensored: What They Wish You Knew Speaker: Dustin Kaehr, retail consultant Retail consultant and motivational speaker Dustin Kaehr will speak the honest truth about what customers say when you aren’t around. 10:30 – 11:15 a.m. KEYNOTE: Decoding the New Consumer Mind Speaker: Kit Yarrow, Ph.D., author, “Decoding the New Consumer Mind: How and Why We Shop and Buy” Kit Yarrow will share sociocultural shifts that have changed the psychology of consumers; how consumers are motivated to buy differently today; and actionable recommendations to tap into today’s new consumer psychology. 11:30 a.m. – 12:00 p.m. Home Sweet Home: PRO Edition Speaker: Bill Brunelle, Independent We Stand, and Dan Tratensek, NRHA This seminar will reveal the results of new research that illustrates exactly how meaningful a pro shopper’s choices can be when it comes to supporting the communities they serve. 1:00 – 1:45 p.m. Break Out of the Pack Speaker: Al Meyers, Kalypso Drawing on his years of experience in consulting, Al Meyers will present the different approaches high-performance retailers are using to innovate—and stay afloat—in today’s tough retail environment.

2:00 – 2:45 p.m. Packaging and Merchandising Awards Speaker: Lowell Huffman, NRHA NRHA will introduce the winners of the 2017 Packaging and Merchandising Awards and share a summary of judge commentary and emerging packaging trends. 3:00 – 3:45 p.m. Aubuchon Hardware’s Omnichannel Initiative “Aubuchon Go” Speaker: Will Aubuchon, CEO, Aubuchon Hardware In this session, we will explore the topic of omnichannel retailing, and Will Aubuchon will guide attendees through the process of Aubuchon Hardware’s 2016 launch of its omnichannel initiative, Aubuchon Go. 4:00 – 4:45 p.m. Lighting: The Smart Home Conduit Speaker: GE Listen as GE Lighting experts share how lighting is opening a channel to simple, smart home adoption and interoperability with a new generation of efficient lighting that listens, learns and sees. 5:00 – 6:30 p.m. NRHA Independent Retailer Reception Presented by: NRHA and Hardware Retailing NRHA invites all independent retailers attending the show to stop by the NRHA Village for a networking reception upon close of the show floor. Mix and mingle with fellow independent hardware store, home center and lumberyard owners and NRHA staff in a casual and welcoming setting.

Be Two Places at Once

#NHShow

Follow the excitement at the conference and the show, no matter where you are. Connect with NRHA, Hardware Retailing and the National Hardware Show on Twitter and Facebook for in-the-moment event highlights. Search for #NRHAconference and #NHShow on both platforms to see what stands out to retailers, vendors and NRHA staff. @NRHA_Official @hardwareretail @NHS_Show @NorthAmericanRetailHardwareAssociation @HardwareRetailing @nationalhardwareshow

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#NRHAconference

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Wednesday, May 10 9:00 – 9:45 a.m. PDRA Presents: Benjamin Moore: “Store of Tomorrow” Speaker: Eugene Andreassi, vice president of retail services, Benjamin Moore Eugene Andreassi will discuss Benjamin Moore’s new store of the future concept, its origins and development and how the new retail model mirrors the future of what consumers are expecting. 10:00 – 10:45 a.m. KEYNOTE: Your Remarkable Service Advantage Speaker: Mary Walter, retail expert Mary Walter will discuss customer service and engagement strategy and share how retailers can inspire their teams to provide winning service, drawing on more than 20 years of big-box retail experience to share firsthand stories of customer service solutions. 11:00 – 11:45 a.m. The Store is STILL Important Speaker: Jim Robisch, The Farnsworth Group While online retail receives all the attention, Robisch will share proprietary consumer research that suggests the in-store experience still plays a critical role in shoppers’ buying habits. Robisch will explain why this is good news for independent retailers.

1:00 – 1:45 p.m. NRHA Top Gun Awards: Young Guns Presented by: NRHA and Hardware Retailing Moderator: Scott Wright, Executive Director–NRHA Retail Leadership Institute This year, NRHA and Hardware Retailing have assembled a panel of the industry’s Young Guns, the most successful and innovative young independent retailers who will share their stories and thoughts on the industry. 2:00 – 2:45 p.m. Reimagine Retail Presented by: The National Hardware Show The National Hardware Show will award the grand prize of $100,000 to the winner of its Reimagine Retail promotion, which will give one independent home improvement retailer the funds for a business improvement project. 3:00 – 3:15 p.m. Made in the USA Awards Presented by: Made in USA 3:30 – 3:45 p.m. PDRA Scholarship Presentation Presented by: Paint & Decorating Retailers Association (PDRA) PDRA will present its ninth annual $5,000 scholarship to a deserving student nominated by an independent paint and decorating retailer.

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See a live demostration at the National Hardware Show! Booth 5031

Paint & Urethane Stripper Effectively remove multiple layers of paint, varnish, enamel, urethane, And other simple coatings. A low odor soultion made with soybeans, BLUE BEAR Paint & Urethane Stripper is the choice for safe, low-odor, non-caustic coating removal for any DIY project. • SAFER! No Methylene Chloride • Removes Multiple Layers of Paint, Varnish, Enamel, Urethane, Lead Based Paint, and More with ONE Application • Made with 100% American Grown Soybeans

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3:45 – 4:00 p.m. Lawn, Garden & Outdoor Living Awards Presented by: Lawn & Garden Retailer 4:00 – 4:15 p.m. Homewares Awards Presented by: HomeWorld® Business 5:00 – 6:30 p.m. NRHA Retailers’ Choice Awards Presented by: NRHA and Hardware Retailing Moderator: Dan M. Tratensek, publisher, Hardware Retailing and NRHA For more than 50 years, Hardware Retailing has been singling out the best of the best products at the National Hardware Show with its Retailers’ Choice Awards. This program not only honors manufacturers for their innovations, but also helps retailers identify new products to check out at the show.

Thursday, May 11 9:00 – 9:45 a.m. Last Chance Look From the Show Floor: NRHA Panel Moderator: NRHA A group of representatives from NRHA will share their favorite areas and memories from this year’s show. 11:00 – 11:15 a.m. New Product Launch Awards Presented by: Amazon 11:15 – 11:30 a.m. New Product World Awards Presented by: DIY Network 1:00 p.m. National Hardware Show Closes

Schedule a Meeting with NRHA Please stop by the NRHA Village to learn about all the NRHA programs available to independent retailers. Visit nrhaconference.com/meet-us to schedule an appointment.

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6 Ways to Network at the National Hardware Show®

Attend the Retailer Happy Hour in Tailgate, Backyard & BBQ.

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Explore the featured areas.

Go for a run.

Tuesday, May 9, 3:00 – 5:00 p.m. Once you’ve taken in all the new tips, tricks and products in this exciting category, stick around to make new friends and trade tailgating and barbecuing secrets. This year’s Tailgate, Backyard & BBQ area moved back to the Silver Lot and was redeveloped to better serve retailers’ needs. Join other retailers at this casual afternoon event— retailers receive free drinks!

Central Lobby and Featured Product Gallery The featured areas at the National Hardware Show are sure to be full of conversation starters! Check out the New Product World, Made in USA products and the Inventors Spotlight to see the latest in product innovation. In addition, learn about emergency preparedness and energy efficiency in the Emergency Preparedness & Disaster Recovery and Energy Efficient and Eco-Friendly areas.

Wednesday, May 10, 7:30 a.m., Sunset Park Get a head start on Wednesday morning and join other show attendees for the Raise the Roof Run, a 5K run or 1-mile walk, at Sunset Park in Las Vegas. Proceeds from the run benefit The Fuller Center for Housing, a nonprofit group that provides housing for families around the world. To register, sponsor the run or donate, contact Henry Downes at henry@fullercenter.org.

Check out New Exhibitors.

Download the mobile app.

Share on social media.

Whether this is your first time at the show or your 15th, there is always something new to explore. There are nearly 500 new exhibitors this year, spread across each hardlines category. To find the list, visit nationalhardwareshow.com/newexhib or check out the new exhibitors list on the NHS mobile app. On the website, you can also see which new exhibitors will be showcasing new products.

Through the mobile app, you can access the exhibitor list and save your favorites, view the show floor map, get directions to booths and schedule appointments with vendors. You can even export the agenda to your device’s calendar app. You can also access My Show through the NHS app, which analyzes your information to provide personalized exhibitor recommendations. Download the app through your smartphone’s app store.

Keep your employees and your community engaged with everything you’re seeing and doing at the show so they know you are committed to your business. Share photos and videos of products you are considering, and ask your followers to weigh in. Be sure to use #NHShow and #NRHAconference with each post so everyone at home can follow along with the excitement of the event.

HARDWARE RETAILING | May 2017

Measure up! What’s in it for you? Participation is free, easy and confidential. When you submit your data, you receive valuable tools to help evaluate your business, including a free Personalized Financial Analysis, financial ratios, a strategic profit model and what-if scenario tool.

Q&A With Jim Robisch

In-Store Experiences Still Matter. Big Time. Jim Robisch Senior Partner The Farnsworth Group

Robisch conducts research on the independent home improvement sector.

n an interview with Hardware Retailing, Robisch discusses how retailers must not lose sight of the importance of in-store customer experiences while trying to compete against e-commerce businesses, such as Amazon. Hardware Retailing (HR): What should retailers learn from recent research on what customers want from in-store experiences? Jim Robisch (JR): Retailers have to recognize that although online retailing is important and relevant, the store hasn’t lost its importance. The brick-and-mortar location is both an avenue for selling products and a support system for online sales.

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In-Store Remains Key

66%

of online shoppers opt to buy online and pick up in store multiple times a week.

50%

of customers use ship to store when ordering online.

46%

of customers have made in-store purchases while picking up their online orders at stores.

Sources: Ecommerce Trends: 128 Stats Revealing How Modern Consumers Shop, Walker Sands 2016, 2016 UPS Pulse of the Online Shopper

HR: What can retailers take away from the recent Merchandising for Profit Study that you helped NRHA compile? JR: The study confirms, once again, that there are things that happen in the store that can only happen in the store. For example, promotional merchandising. When you merchandise, you can do more sales and make more profit.

It’s hands-down solid confirmation once again that people tend to forget why you need to discipline your stores around detailed merchandising. Our market research on store image shows that retailers are spending time, energy and money on things that aren’t as important as they think they are. The reason they think they’re important is carryover. “We always did this. We live by this.” When they’re doing that, they’re ignoring what’s extremely important. They should be polishing their price image and becoming a place where people think they can get a deal. Customers think independent stores are naturally more expensive. Retailers don’t spend enough time trying to offset that perception. Promotional merchandising can help reshape their price image. HR: What are some key reasons for why the in-store experience is important? JR: The store is the environment in which retailers can showcase all the things they’re good at and differentiate from their competitors. They really can have an impact in the store. Independent home improvement stores tend to have a loyal customer base that shops weekly, monthly or every day. Retailers should ask,

Customers’ Shopping Preferences Does Your Store Do Better?

66%

More than half of consumers prefer to shop online, but the rest like walking into stores to make purchases. Don’t let your business make shopping online appealing. Promote the benefits you offer that e-commerce businesses can’t, and stay well stocked so customers can walk out of your store with the products they want.

51% 49%

Percentage of Customers That Decided Not to Buy an Item Due to Shipping Costs Prefer to Shop Online Prefer to Shop in Store Sources: Walker Sands 2016, Ecommerce Trends: 128 Stats Revealing How Modern Consumers Shop, 2016 UPS Pulse of the Online Shopper

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Grow Where It Counts: Loyalty, Wallet Share, and Margins.

Copyright ©2017 Epicor Software Corporation. All rights reserved. Epicor, the Epicor logo, Grow Business, Not Software, and Eagle are registered trademark or trademarks of Epicor Software Corporation in the United States and certain other countries.

“What are we communicating to them about the brand? How are we showing that we have broader and deeper assortments than perhaps they thought?” They can do that through merchandising, pricing and service. A strength of independents is that they are typically viewed as having more knowledgeable employees than big-box stores have. HR: What are some problems you often see in stores and what do you recommend for improving those locations’ in-store experiences for customers? JR: When we ask customers what they like and don’t like about a store, we find that stores are often less than easily self-shopped. Some stores are lax, I guess, at what I call house cleaning. The store is still important because it gives the independent a theater for showing the movie of why they’re great and why they’re better than competitors. You can compete better if you pay more attention to the store. HR: What are retailers doing instead of focusing on improving in-store experiences? JR: There are operators who are so obsessed with Amazon. They want to know how they are going to compete in e-commerce. They can never battle

Home Improvement Shoppers’ Expectations Necessities:

Differentiators:

• Product in stock • Knowledgeable staff • Easy to get questions answered • Friendly employees • Easy returns • Quick checkouts • Easy to find merchandise

• Signage that helps select products • High level of personal service • Provides special services • Easy to special order • Provides delivery • Signage that lists products for projects • Offers installation service

Source: The Farnsworth Group, 2016

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it on their own. Or they are trying to be social media gurus at the expense of other aspects of their business. They’re ignoring what’s happening in the store. I think they need to know what’s important to their customers and balance various aspects of their business based on what their customers really want, not based on what they think is cool or what people are telling them to do. E-commerce and social media are critical. But when you start talking to customers who have water leaking on their floor and they don’t know why, you’re dealing with their problems in store. HR: How can retailers determine what they need to prioritize to improve the in-store environment? JR: Retailers have to ask themselves, “Would I shop at this store myself?” If the answer is “yes,” then why? If “no,” then why not? If they’re not wowing themselves, they’re not wowing their customers. Retailers need to step back and make a concerted effort to look at their stores with a new set of eyes.

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HARDWARE RETAILING | May 2017

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If they can’t do that, they should ask themselves, “What are the five things that I’ve been talking about and thinking about doing and haven’t done in the past 18 months?” Those things are probably very important. Then they need to put a plan together to get them done. Most of them know what the heck they need to do, but they don’t know how to get off the square and just do it. They’ve got to take the first step.

HR: Why is it so difficult to take that first step? JR: When business is good, a lot of retailers get complacent. Most independent retailers are very smart people. But I think they too often let emotional biases get in the way of rational thinking. For example, someone might ask, “Why can’t independent hardware stores sell more paint?” The answer is that they won’t do the things they need to do to sell more paint. Business owners often talk about expanding, modernizing or making other changes for years without doing anything. If it’s continually on your mind, it’s important. Why not check it off your list?

Robisch will be presenting data on the continuing importance of carefully developed merchandising and in-store experiences at the North American Retail Hardware Association (NRHA) All-Industry Conference, which is held in conjunction with the National Hardware Show®, May 9-11 in Las Vegas.

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Expert Perspective: Retail is...

Technology T

echnology is an ever-changing, ever-advancing piece of your business, your life and the lives of your customers. Think about how quickly our reaction to new technology goes from “wow” to “duh.” “Wow! You mean I can put this piece of paper into this facsimile machine and it will print out somewhere across the country?” (Fax machines were becoming a standard part of business by the 1970s.) “Wow! I can type this email address and send a note to someone across the ocean through this computer?” (Email was becoming common practice in the mid-1990s.) “Wow! I can call someone on the other side of the globe and see them on my cell phone while I talk to them, like on ‘Star Trek’?” (Apple introduced FaceTime in 2010.) Do you remember the first time you had a video chat with someone? I sat on my couch and could see my neighbor across the street on a screen. It was amazing. Now, my five-year-old wants to walk off with my phone so he can casually “FaceTime Grandpa.” If he had my password or thumbprint, he could complete the process without my help. What was “wow” just a few short years ago is now “duh” to the generation behind me and my fellow Gen Xers and even Millennials.

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Think about how these advances in technology are now another customer expectation in retail. There’s free in-store Wi-Fi, mobile payments, emailing monthly statements and buy online, pick up in store. Don’t forget about regular interactions on social media. It’s 2017, so you cannot be promoting and bragging about how you take credit cards and offer gift cards. Brag about accepting Apple Pay and the ability to send gift cards via text. Remember, you become “behind the times” the minute you do not meet your customers’ expectations. You do not necessarily need to be a technology trendsetter, but you do need to be in line with what your customers experience in other retail environments. The minimum expectations customers have every time they step in your store are ever-escalating, and being a local retailer as opposed to a big box doesn’t give you a pass. For example: It is a major pet peeve of mine when retailers do not have Wi-Fi in their stores, especially if cell reception is poor in their big, metal building. How else am I supposed to call my wife and make sure I’m buying the right product, or look at a YouTube video to make sure I’m purchasing what I need?

“This is Rob’s

Hardware. How can I help you today?

”

3 UNREAD EMAILS Rob Joseph: Inventory

Missed Call Ann Taylor

New Message Meeting at 2pm?

May 2017 | HARDWARE RETAILING

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“When you network with

other retailers, find out how others are using technology in their operations.

”

Technology is always evolving. You need to listen to your customers about what technology your store can offer them. More importantly, watch your customers as they shop your store. How are they interacting with their technology and the technology in the store? What can you learn from how they shop? Read retail magazines and blogs to see what is new and trending; this magazine is a great resource. When you network with other retailers, find out how they’re using technology in their operations. I recently discussed with some retailers what software they use to schedule their employees. Are you leveraging technology to build your schedules? If you’re unsure where to start, use your internal resources. Ask your employees what kind of

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1,000+ Exhibitors | 820+ New Product Introductions Fashions & Accessories, Natural Products, Grooming, Dog & Cat, Small Animal & Aquatic and Much More!

BETTER

uperzoo.org

Pet product sales have never been better. Find all the latest merchandise, all together in one spot—and get your share of this profitable, growing market. Americans spend more than $65 billion a year on their pets—and they should be buying high-margin pet products at your store. Give your customers what they want by stocking up on the latest pet merchandise at SuperZoo, North America’s leading pet retail trade show for sourcing top-quality products and new trends.

LEARN MORE AND REGISTER AT at www.superzoo.org

JULY 25-27, 2017 CONFERENCE JULY 24-26 Mandalay Bay, Las Vegas, NV, USA

technology they prioritize when they are shopping. Find out what upgrades they think the store needs. I promise they will be eager to embrace it if they are the ones who suggest it. As a retailer, you do not need to use every app, widget or tablet package that comes along. Some will just not be a good fit for your store. That’s OK. But you do need to always be evaluating what you do (and don’t do) and why you do it (or don’t do it). That simple evaluation will ensure you keep up with the constantly changing world of retail technology. Dustin Kaehr is a retail consultant with over 17 years of experience working with independent retailers, national retail chains and small businesses. His presentation, “Customers Uncensored: What They Wish You Knew,” will take place at the NRHA All-Industry Conference, held in conjunction with the National Hardware Show®, May 9-11 in Las Vegas. Learn more about Dustin at dustinkaehr.com.

FINDING STUDS

JUST GOT A LOT EASIER » EASY » ACCURATE » INSTANTLY DETECTS Front Offer your customers the World’s Best Stud Finders! Our patented technology surpasses every competitor in accuracy and ease. Unlike the one or two sensors in conventional stud finders, our new ProSensor T6 has six deep-sensing sensors working together to instantly pinpoint the location of studs. No calibration is required. Just press and scan — the 3-inch LED display simultaneously shows the center and edges of the stud. BECOME A DEALER • NHS Show, Booth #8566 • 208.918.2405 • www.franklinsensors.com • sales@franklinsensors.com 186

HARDWARE RETAILING | May 2017

comfort, room by room

www.marsdelivers.com

NRHA Foundations of Leadership Program This online program is a 16-week introductory leadership course designed to teach employees who are new to management about key concepts of leadership and personal development.

Who should attend?

What will they learn?

How do you benefit?

• Employees who are new to management or are looking to improve basic leadership skills. • Ideal for new store managers, assistant managers and supervisors who want to build better, more engaged teams.

• Leadership styles through several assessment tests and how to develop leadership skills based on those styles. • Best practices in communication and problem-solving and how to build and develop teams.

• Stronger teams, which improve employee retention and reduce turnover. • Managers participate online while still maintaining day-to-day duties. • Employees who are better able to lead and manage others.

Invest in Your Team Invest in Your Business Invest in Your Future

NRHA Retail Management Certification Program This program is a six-month college-level course designed to teach key employees, future owners and new owners industry-focused business practices across all areas of running and operating a retail hardware, lumber or home improvement business.

Who should attend?

What will they learn? How do you benefit?

• Next-generation leaders and owners who have experience in the business and leading teams. • Ideal for store managers, general managers, directors of retail operations, human resources managers and other key personnel.

• How to plan, implement and manage real-world business improvement projects. • Skills in such areas as finance and accounting, operations, customer service, sales, marketing, applied business strategy, leadership, technology and more.

• Instructor-guided business improvement projects can have an immediate bottom-line impact. • A network of peers, experts and retailers to share ideas and best practices. • More confident employees who have the skills to run the business.

Whether you have employees just starting their leadership journey or someone you’re ready to hand the business over to, NRHA has a program that’s right for your business goals.

FOR MORE INFORMATION, GO TO NRHA.ORG/RLI

Retail Leadership Institute

Honoring Excellence NRHA Announces Winners of Annual Packaging and Merchandising Awards

icture this. A customer is standing in front of a shelf of products he or she is unfamiliar with. Sure, there are several factors, including price, that will influence this person’s purchase decision. But, they’ll likely grab the most attractivelooking product first. Product packaging and merchandising plays a large role in this consumer’s decision-making process. While looking at a product, this person may be asking questions like, "Am I getting good value for my money?" Or, "Does the brand look reliable?" In 2016, the North American Retail Hardware Association (NRHA) asked more than 300 retailers what industry manufacturers could do to better serve their business. Respondents listed “focus on stronger packaging” as one of their top three answers. To continue encouraging industry manufacturers to keep packaging and merchandising top of mind, NRHA has once again recognized some of the best packaging and point-ofpurchase displays in the industry as part of the eighth annual Packaging and Merchandising Award program.

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The Judging Process North American manufacturers submitted their finest materials to the awards committee in hopes of being identified as the best in the industry. NRHA invited three expert judges to convene at association headquarters in Indianapolis to review and critique each entry, based on criteria like shelf and sales appeal, innovation, selling features and more. The judges' scores were tallied, and winners were selected for each of five award levels. • Judges’ Choice Award was given to a line of products that achieved Gold Award-status individually, demonstrating strong overall branding and design. • Whole Package Awards were given to entries that received top ranking, scoring highest in their category. These winners exemplify the highest standard of excellence. • Gold Awards were given to entries that received the highest scores and demonstrated a superior level of excellence. • Silver Awards were given to entries that displayed above average efforts. • Honorable Mention Awards were given to entries that displayed average efforts and met all judging criteria.

Packaging & Merchandising Trends The judges combined their unique backgrounds and expertise with the most outstanding aspects of this year’s entries to identify a list of packaging and merchandising trends. The trends, their suggestions on how the industry can improve and insights on why packaging and merchandising are so important will be presented in a video at the awards ceremony. The video will also be available online at TheRedT.com/pma-trends.

Throughout the show and conference, all program entries will be prominently displayed in the Packaging and Merchandising Expo located in the NRHA Village. Judges Choice, Whole Package and Gold Winners will also be recognized during a presentation on the NRHA Village Stage at 2 p.m. Tuesday, May 9.

Sponsored by: PMAs at the Show The National Hardware Show® and Hardware Retailing magazine are sponsors of the 2017 Packaging and Merchandising Awards program. The National Hardware Show is also sponsoring the NRHA Village and All-Industry Conference, which will be held in conjunction with the show May 9-11 at the Las Vegas Convention Center.

PAC K A G I N G A N D MERCHANDISING

AWA R D S

Brought to you by

2017

Meet the Judges Andy Garringer

Sue Fusek

Tom Hirons

Brand Packaging Graphic Designer Do it Best Corp. 33 years in the packaging industry

Owner Fusek’s True Value Hardware 13 years in the hardware retail industry

President & CEO Hirons 39 years in the advertising industry

Garringer designs and develops packaging for four private brands. He oversees each step of the process from concept to print for packaging, instructional manuals, point-ofpurchase and planograms. Do it Best serves thousands of member-owned home improvement stores in the U.S. and 52 other countries.

Fusek owns and operates a 10,000-square-foot hardware store in downtown Indianapolis. She is currently focused on the company’s e-commerce business and day-today operations. Also contributing to her packaging expertise is nine years of experience in selling corrugated packaging.

As CEO of award-winning Indianapolis advertising and public relations firm Hirons, Hirons is responsible for branding, including packaging and merchandising, for all major agency initiatives. Additionally, Hirons spent 18 years teaching copywriting, concepting and branding at Indiana University.

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Judges' Choice Award The Judges' Choice Award was given to DAP® DYNAGRIP® Construction Adhesives for exemplifying a high standard of branding and design across the entire product line.

Whole Package Award The Whole Package Award went to the top entries in both the packaging and merchandising categories. These two winners exemplify the highest standard of packaging and merchandising excellence in this year’s competition.

DAP Products Inc.® DAP® DYNAGRIP Advanced Subfloor This premium-grade construction adhesive is specifically formulated for subfloor and deck installation. It is VOC-compliant, and its solvent-based adhesive prevents floor squeaks and improves the structural performance of floor assembly when used properly. Delivering high-strength, DYNAGRIP® Advanced Subfloor creates a weatherproof bond.

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Sashco®, Inc. Through the Roof!® Rolling Rack Through the Roof! clear roof, gutter and flashing sealant makes persistent repairs a thing of the past. The brush-on, high-performance formula goes on easily and remains elastic year after year to permanently seal nagging leaks.

Packaging Gold Award

DAP Products Inc.® DAP® Plastic Wood-X® Wood Repair Kit All-Purpose Wood Filler with DryDex® Dry Time Indicator Plastic Wood-X® Wood Repair Kit provides the end user with all the materials necessary to complete a wood repair project. The kit includes a high quality, latex-based wood filler, a dual-grit medium/fine sanding block and a 2-inch plastic putty knife.

Packaging Gold Award The winners of the Packaging Gold Award were chosen based on the following criteria: overall shelf and sales appeal, graphic design, innovation, packaging efficiency, shelf life and selling features.

DAP Products Inc.® DAP® DYNAGRIP Tub Surround DYNAGRIP® Tub Surround is specifically formulated for installing tub surrounds, is guaranteed safe for showers, and won’t burn or etch surrounding material. It applies white and dries clear, making it ideal for soap dish and tile repairs.

DAP Products Inc.®

DAP® DYNAGRIP Heavy Duty Max

DAP® DYNAGRIP Mirror-Marble-Granite

Featuring new cutting-edge hybrid technology, this product delivers up to five times faster bond strength than competitive polyurethane heavy-duty adhesives for tough applications where bond strength and speed are critical. This moisture-curing adhesive provides exceptional adhesion to all materials with an easy-to-gun formula.

This premium grade hybrid adhesive is specifically formulated for mirror and countertop installation. It provides a permanent vertical hold in one hour, ideal for mirror installation. DYNAGRIP Mirror-Marble-Granite is easy to gun and will not stain or damage mirrors, countertops or finished surfaces.

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Packaging Gold Award

Simple Green® Simple Green® Pro HD Heavy-Duty Cleaner This multi-purpose cleaner and degreaser is part of a five-product professional-grade line. Simple Green Pro HD breaks down tough grease, grime and stains on metal, plastic, painted surfaces, sealed wood, concrete, carpet and more. It can be custom diluted or used in pressure washers, carpet cleaners and floor scrubbers.

Spectrum Brands Pet, Home & Garden J-B Weld® Company J-B ClearWeld Syringe J-B Weld ClearWeld is a multipurpose, two-part epoxy that provides a strong and lasting bond on most surfaces including tile, most plastics, ceramic, glass, wood and metal. It sets in five minutes, with a tensile strength of 4400 PSI.

Black Flag Extreme Insect Killer Plus Fungus Control Known for extremely effective insect control and killing millions of insects over 130 years, the Black Flag brand set out to create a no-nonsense weapon to take the guesswork out of treating lawns — Black Flag Extreme Lawn Insect Killer Plus Fungus Control.

Spectrum Brands - Pet, Home & Garden Spectracide And Cutter Quick-flip Sprayer And Bottle The Quick-Flip sprayer simplifies the application process of insecticide products. Starting mid-2017, this product will be sold to use as Spectracide Triazicide Insect Killer for Lawn and Landscapes Concentrate and Cutter Backyard Bug Control Spray Concentrate.

Morton Salt® Safe-T-Pet® Ice Melt Created by Morton Salt, this product prevents harm to animals during winter months. With Safe-T-Pet, pet owners can have peace of mind during play time in the snow. Safe-T-Pet is salt and chloride free, and melts down to 10 degrees Fahrenheit.

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Merchandising Gold Award

Merchandising Gold Award Sashco, Inc.® Big Stretch® 2-Foot Window Display Big Stretch® high performance, water-based sealant provides powerful adhesion and extreme elasticity that will stick, twist, bend, compress and stretch more than 500 percent of original size to handle most any movement a home can dish out without cracking.

These entries represent some of the industry’s most superior examples of merchandising and point-ofpurchase displays based on the following criteria: ability to attract attention, graphic design, innovation, material usage and selection and informational value.

MiTek® MiTek® Builder Products Bin Display MiTek Builder Products consists of a complete range of innovative steel structural connector products used in new construction, repair, remodel and DIY projects. MiTek Builder Products offers cost-saving connector solutions for the construction industry.

Sashco, Inc.® Big Stretch® Floor Display This high-performance, water-based window, door and siding sealant can handle almost any move a home makes. It’s powerful adhesion and extreme elasticity sticks, twists, bends, compresses and stretches more than 500 percent of original size to solve any caulking needs.

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Packaging Silver Award

Sashco, Inc.®

Packaging Silver Award

eXact Color® Sealant With eXact color®, just add paint and mix to create a caulk to match any color. The product can be applied in joints up to 2 inches wide. Its super elastic and powerful adhesion ensures that it won’t pull away or crack for years, creating a lasting seal.

Silver Awards were given for entries that displayed above-average packaging performance in this year’s competition.

Simple Green® Simple Green® Clean Finish® Disinfectant Cleaner This ready-to-use cleaner, disinfectant and deodorizer kills 99.9 percent of bacteria in five seconds. The multipurpose product also fully disinfects hard, nonporous surfaces in as little as 30 seconds. It quickly and safely kills cold and flu viruses and is also effective against common household germs such as salmonella, E. coli, MRSA, norovirus and many more.

Lavelle® Industries Korky® Ultra 2X High Performance Flapper The Korky Ultra 2X Flapper is the longest-lasting, most universal two-inch flapper available. The proprietary Chlorazone II rubber formulation lasts two times longer than other flappers. Korky red rubber resists chlorine, bacteria, city water treatment, hard water and well water. The flapper adjusts to match original toilet settings and eliminates water waste by decreasing the amount of water flushed.

Roto-Rooter ® Roto-Rooter® Preventive Pipe Shield Maintenance Treatment Roto-Rooter is a commercial-grade pipe treatment that prevents organic materials such as greases, soaps, fats and detergents from building up and causing drain clogs. It provides a protective coating to pipe interiors to prevent buildup and clogs from recurring.

Char-Broil® Char-Broil Kamander™ Char-Broil® Kamander™ Grill provides insulated, double-wall steel construction that heats quickly and evenly, sealing in heat and moisture. The convenient and innovative controls maintain temperatures for any type of cooking, from high temperature searing and cooking to low-and-slow smoking.

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Kärcher North America VersaGRIP Pressure Washer Trigger Gun

Fluidmaster®

VersaGRIP is an innovative pressure washer trigger gun. Its dual action triggers provide multiple ways to spray, enabling the user to clean at any angle. The product’s "Shoulder Stock" allows customers to use their body as an anchor, providing a secure grip while relieving stress from fingers, hands and wrists. Ergonomic design features over molded grips, providing comfortable and secure handling.

The Premium Tank Lever comes in a variety of styles and finishes, making replacing or upgrading the toilet handle an easy and simple way to update the look of a toilet. The lever was designed to adjust to fit most tanks and make the installation easy and simple. The upscale metal handles match today’s popular finishes and are engineered with precision spring action.

Premium Tank Lever

Kärcher North America K1700 CUBE The K1700 CUBE offers convenience, value and power. This pressure washer is designed for portability and ease of use. Weighing less than 20 pounds and standing only 12 inches tall, the K1700 Cube is the perfect companion for general cleaning tasks.

Jack Links Beef Jerky Simple Green

Simple Green Professional Grade Shower, Tub & Tile Cleaner Part of a five-product professionalgrade line, the dual-purpose formula provides heavy-duty descaling and effective daily cleaning of bathroom and kitchen surfaces. The concentrated formula dissolves even the toughest built-up lime scale, soap scum and mineral deposits from sinks, toilets, tubs, ceramic tile, shower and faucet fixtures, glass shower doors, chrome and stainless steel.

A.M. Breakfast Bacon Jack Link’s A.M. Applewood Smoked Bacon provides the perfect on-the-go breakfast snack with a protein-packed punch in a ready-to-eat pouch. This tender, savory snack is served in a bag to be eaten all day long, but especially during breakfast.

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Packaging Silver Award

J-B Weld® Company

Char-Broil®

Epoxy Putty SteelStik™

Oklahoma Joe’s® Highland Offset Smoker/Grill

This hand-mixable, steelreinforced, non-rusting epoxy putty quickly repairs or rebuilds anything made of metal. After mixing, it forms an industrial-strength polymer compound that can be molded into shapes or used to build up, patch and repair steel components. SteelStik sets in three to five minutes, and after 60 minutes, can be drilled, tapped, machined, ground, filed and painted.

Crafted from high-temperature steel and modeled after smokers from the Texas oil fields, the Oklahoma Joe’s® Highland Offset Smoker/Grill cooks just the way customers want. The heavygauge construction, convenient fire access door, and multiple dampers gives the griller total control over their pit.

H.D. Hudson Manufacturing Company® Hudson® All-Purpose Extractor™ The new, All-Purpose Extractor™ is the ideal solution to easily extract transmission fluid, power steering fluid, engine oil, gear oil, coolant, well water and more, from vehicles, stationary engines, lawn mowers and industrial machines. The included eight-foot hose and manual pump allow for high-speed extraction of lubricants and other liquids without requiring a power source or batteries.

Jacobs-Thompson PD Extreme Weatherproofing Self-Adjusting Foam Tape This flexible and durable foam tape is used to remove the gaps between your door and window frames. It removes drafts, reducing heating and cooling loss, saving on energy costs and allowing noise reduction. It includes A2LA premium adhesive.

Simple Green® Simple Green® Professional Grade Carpet Cleaner Simple Green Professional Grade Carpet Cleaner is a nontoxic, biodegradable and professionalgrade formula certified by The Carpet and Rug Institute not to damage carpet fibers or backings. It cleans a wide variety of carpets, rugs, fabrics and upholstery without harmful peroxides or bleach that can cause damage and discoloration.

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Merchandising Silver Award

Merchandising Silver Award Merchandising displays that demonstrated above-average performance were given the Silver Award.

Sashco, Inc.® Mor-Flexx® 2-Foot Countertop Display Mor-Flexx® repairs crumbly mortar, cracked stucco and textured walls. It’s textured to blend in seamlessly with mortar and stucco, yet its elastic-like rubber allows it to span cracks for permanent, years-long repairs.

Jack Link's Beef Jerky Jack Link's New Hardware Assortment Jack Link’s protein snacks provide fuel for people to "feed their wild side™," no matter the occasion. Jack Link’s current product assortment includes jerky, bites, steak and strips, meat sticks and sausage.

Kärcher North America Gallows Signage System Whatever the cleaning task may be, Kärcher has a solution. Offering a complete line of cleaning devices for use around the home, Kärcher offers electric pressure washers, gas pressure washers, wet and dry vacuums and more to help customers achieve professional cleaning results in less time.

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Merchandising Silver Award

Sashco, Inc.® Big Stretch® Rolling Rack Big Stretch® is a high-performance waterbased sealant designed to fix cracks in window and door frames. Its powerful adhesion and extreme elasticity will stick, twist, bend, compress and stretch more than 500 percent of the original size to handle most any movement your home can dish out, all without cracking.

Sashco, Inc.® Slab® Floor Display Slab® is the serious fix for concrete cracks. It’s an easy-to-apply, water-based sealant that stretches up to 300 percent of original crack size to create a permanent, weatherproof repair that stands the test of time. This product is ideal for sidewalk, garage, patio, pool deck and basement repairs.

MiTek® MiTek® Builder Products Carton Display MiTek Builder Products consists of a complete range of innovative steel structural connector products used in new construction, repair, remodel and DIY projects. MiTek Builder Products offers cost-saving connector solutions for the construction industry.

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Packaging Honorable Mention

Packaging Honorable Mention Packaging entries that displayed average efforts and met all judging criteria were given Honorable Mention.

Simple Green® Simple Green® D Pro 3 One-Step Germicidal Cleaner

Honey-Can-Do® International Bamboo 4-Hook Wall Hanger

This one-step disinfectant and deodorizer is now part of a five-product professional grade line. EPAregistered, this germicidal cleaner contains high levels of active ingredients to ensure performance against illness-causing threats including E. coli, HIV-1, athlete’s foot, MRSA and more. It's ideal for keeping small businesses, day care centers, office buildings and similar types of establishments clean and disinfected.

This four-hook wall hanger adds function and style to any wall. Each hook can be flipped down when in use, and closes when not in use. The bamboo construction is durable and adds a pop of style without being overwhelming. Plus, mounting hardware is included.

Jack Link's Beef Jerky Jack Link’s Extra Tender Jerky Looking for a moist tender bite that’s full of flavor? Jack Link’s is shaking up the jerky aisle with new Jack Link’s Extra Tender. These extra tender, savory and smoky steak strips are sure to please any meat lover’s palate. Available in Original, Teriyaki and Sweet & Spicy.

Hatchlift Products Utility Lift Kit Utility Lift Kits are general-purpose retrofit hydraulic lift kits available in four popular weight ranges. Utility Lift Kits provide lift assistance for storage boxes, floor and crawl space accesses, TV compartments and many other applications. The DIY kits are easy to install and come with a 12-month warranty.

Willert Home Products airBOSS® Dry Zone Refillable Dehumidifier Starter Kit The Dry Zone Dehumidifier Starter Kit uses calcium chloride to efficiently remove excess moisture from the air. The clever holder is refillable and designed to stand or hang to eliminate moisture wherever it is a problem. Each Dehumidifier tray features a one-way moisture-permeable film to help prevent leaks or spoils. For added protection, collected water is turned into a gel-like substance.

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Packaging Honorable Mention

Sashco, Inc.® MildewFree Sealant 6 oz. Squeeze Tube

Leviton® Manufacturing Co., Inc. Decora Smart™ Decora Smart™, Leviton’s newest collection of home automation products, offers advanced lighting control via smartphone or tablet. The Decora Smart product family includes dimmers and switches with Z-Wave®, HomeKit™ and Wi-Fi® technology so users can control their lights remotely, anytime.

Stop the re-caulking cycle with Sashco’s high-performance MildewFree Sealant. This sealant is loaded with super doses of environmentally safe and nose-friendly biocides that effectively prevent mildew growth on the caulk year after year. Plus, it’s extremely elastic and able to expand and contract with everyday movement.

H.D. Hudson Manufacturing Company® Spray Smart™ Eco-Edition Sprayer from Hudson® The Spray Smart™ Eco-Edition is made from 25 percent polyethylene recycled materials. This sprayer applies just the right amount, only where you need it. The SpraySmart™ Eco Edition can be used over and over again, and the easy-to-use hand pump pressurizes quickly without batteries, fossil fuels or chemical propellants that can end up in landfills.

Jacobs-Thompson PB Weatherproofing Ultimate Value Package This ultimate value package includes window film, window tape, self-adjusting foam tape and universal outlet seals. Use of the value package helps to remove drafts, reduces heating and cooling loss, saves on energy costs and reduces noise. Plus, it includes AZLA premium adhesive.

Simple Green® Simple Green® Professional Grade Glass Cleaner Part of a five-product professional grade line, this cleaner removes fingerprints, air pollution, smears and grime from both indoor and outdoor surfaces. The easy-to-use cleaner does not contain ammonia and bleach. It cleans glass and reflective surfaces without leaving streaks or film behind.

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MiTek® MiTek® Builder Products MiTek Builder Products consists of steel structural connector products used in new construction, repair, remodel and DIY projects. The entire line includes nearly 3,500 SKUs.

EZ Lawn and Garden™ EZ Leaf Hauler The EZ Leaf Hauler holds more than four times the volume of a wheelbarrow. Robust stakes secure the tarp on windy days with six built-in handles for easy transport. It includes reinforced sides for increased capacity and folds for easy storage.

Sashco, Inc.® MildewFree Sealant 10.5 oz. Cartridge Moldy and mildewed caulking means bad smells, ruined aesthetics, and wasted time and money every time you have to replace the caulk. Stop the re-caulking cycle with Sashco’s high-performance MildewFree Sealant. It’s loaded with environmentally safe and nose-friendly biocides that effectively prevent mildew growth on the caulk year after year. Plus, it’s extremely elastic.

Spray & Forget™ Cleaning Products Spray & Forget Outdoor Furniture Cleaner Spray & Forget Outdoor Furniture Cleaner cleans all outdoor furniture, including plastic, wicker, metal, glass and fabric. Fabric application is a no-rinse cleaning process that works over time and causes no fading. Spray & Forget Outdoor Furniture Cleaner provides sun fade protection from UV rays as well.

SIMPSON® PS60841 SIMPSON® PowerShot Gas Pressure Washer SIMPSON® 3300 PSI 2.5 GPM PowerShot Series Gas Powered Pressure Washer uses a KOHLER® SH265 OHV commercial series engine and AAA™ industrial triplex plunger pump with PowerBoost® technology to provide higher pressure at the nozzle. The Morflex hose provides high flexibility, is non-marring, kink- and abrasion-resistant and equipped with M22 connectors.

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Packaging Honorable Mention

Ames® Research Laboratories, Inc. Ames® Blue Max Liquid Rubber 1 Gallon Ames® Blue Max® is a special blend of adhesive, high-strength elastomeric liquid rubber. It is a new, impenetrable rubber technology for waterproofing in extreme wet situations such as below-grade foundations, basement walls, and cisterns. It’s high in solids and dries to a tough 800-percent elastic membrane that resists cracking and peeling.

Ames® Research Laboratories, Inc. Ames® Maximum Stretch Roof Coating 1 Gallon White ®

Ames Maximum-Stretch is a thick, high-quality rubber and acrylic elastomeric coating designed specifically for waterproofing, repairing and maintaining many different types of roofs. It has remarkable adhesion and is easy to apply. The coating dries rapidly to form a cool white, watertight roof membrane with up to 750 percent elasticity that expands and contracts with the roof surface.

Bonide® Bonide Products Bonide manufactures over 500 different lawn and garden control products, including herbicides, insecticides, fungicides, combination products, animal repellents and home pest controls.

Flame Engineering, Inc. Mini Dragon™ JR The Mini Dragon™ JR is the Ultimate Fire Starter when connected to a standard onepound cylinder. Its effectiveness with extreme convenience and portability allows for it to go anywhere. It’s perfect for camping and even starts damp or wet wood.

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Spray & Forget™ Cleaning Products Spray & Forget House & Deck Outdoor Cleaner Ready to Use Trigger Spray This no-rinse cleaner works over time to remove stains caused by mold, mildew, algae, lichen or moss. This product saves consumers time because they can simply spray the stains, and Mother Nature takes care of the cleaning. It is activated by rainfall and cleans over a period of time. It keeps cleaning for up to 18 months on the surface.

Merchandising Honorable Mention

IPG® Iron Grip™ Planogram

Merchandising Honorable Mention

This premium duct tape is a coated cloth tape with an aggressive pressure-sensitive natural rubber adhesive that adheres well to a wide variety of surfaces under a wide range of temperature conditions.

Merchandising entries that displayed average efforts and met all judging criteria were given Honorable Mention.

Sashco, Inc.® Transformation Stain® Log & Timber Selling Center Sashco’s Transformation Stain® restores the wood nature destroyed. This no-peel formula looks beautiful year after year and is semi-transparent to show off the beauty of the wood grain. Its oil-in-water hybrid formula provides the protection of an oil with the ease of water cleanup. Ideal for usage on decks, fences and interiors.

Sashco, Inc.® Slab® 2-Foot Countertop Display Slab® is the serious fix for concrete cracks. It’s an easy-to-apply water-based sealant that stretches up to 300 percent of original crack size to create a permanent, weatherproof repair that stands the test of time. This product is ideal for sidewalk, garage, patio, pool deck and basement repairs.

Kärcher North America K2000 Premium Electric Pressure Washer On-Product Merchandising The K2000 offers best-in-class cleaning performance and ease of use. This model delivers 2000 PSI of TruPressure cleaning power, ensuring sufficient pressure. It includes convenience features such as a unique on/off foot switch, a handy storage bin, two removable half-gallon detergent tanks, four spray nozzles and a unique storage system.

Bonide® Bonified Assortment Bonide manufactures over 500 different lawn and garden control products, including herbicides, insecticides, fungicides, combination products, animal repellents and home pest controls.

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These NRHA Vendor Partners Support Independent Home Improvement Retailers

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HARDWARE RETAILING | May 2017

early a decade ago, the North American Retail Hardware Association (NRHA) established its Vendor Partner Program to help manufacturers and service providers gain a better understanding of the industry’s independent home improvement retailers. Below is a list of all the vendors that support the independent channel by participating in this program.

focused on retailers

May 2017 | HARDWARE RETAILING

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Newsmakers

How Do These Public Companies Stack Up?

he annual reports for your publicly traded competitors are out, and here is how some of the companies compare. Walmart, which is still the world’s largest brick-and-mortar retailer, had sales increase by less than 1 percent from the 2015 calendar year to 2016. The company operates about 9,400 more stores worldwide than the second largest retailer, Home Depot, which has 2,278 home centers. Sears has had steadily declining sales, and experienced the largest year-over-year decrease. Sales dipped 12 percent from 2015 to 2016. The company’s leadership has acknowledged that Sears could be at risk of insolvency if efforts to improve the company fail, according to its 2016 annual report. Due to sales’ downward trend, “substantial doubt exists related to the company’s ability to continue as a going concern,” the report says. Amazon is not included in this list, but the e-commerce giant had jaw-dropping sales increases compared to the traditional retailers. Its sales of $136 billion were a 27-percent jump from fiscal 2015. If Target had been included here, its $69.5 billion in 2016 sales would have ranked the company between Home Depot and Lowe’s. Target is analyzed in-depth starting on Page 78.

May 9-11 National Hardware Show® and NRHA All-Industry Conference Las Vegas

19-22 Do it Best Spring Market Indianapolis

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

19-21

Big-Box Sales Performance

PRO Group, Inc. 2017 Group Merchandising Conference Chicago

The retailers below are ranked by 2016 sales.

500

Upcoming Events

$481.3*

July 28-30 United Hardware Fall and Winter Buying Market Minneapolis

300

August 15-17

200

$94.6

100

$65

Independent Garden Center Show Chicago

$22.1

Sears Holdings

Lowe’s

Home Depot

Walmart

17-19

$6.8 Tractor Supply Co.

2016 Sales in Billions

400

*Walmart’s 2017 fiscal year ended Jan. 31, 2016. The numbers included here are from the most recent fiscal year. Sources: Company annual reports

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HARDWARE RETAILING | May 2017

Ace Hardware Fall 2017 Convention & Exhibits Chicago

24-26 Orgill, Inc. Fall Dealer Market Boston

Find more details about these events and others online at TheRedT.com/calendar. To have your event added, contact Kate Klein at kklein@nrha.org.

“At the NRHA State of Independents Conference, I mentioned a few issues I had with vendors. They reached out to me directly wanting feedback on how to change their programs.”

Megan Menzer | Newton’s True Value | Member since 2009

JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

Newsmakers

CNRG Buying 7 Washington Hardware Stores

If Sears Goes Bankrupt, Will Stanley Lose Craftsman?

Central Network Retail Group (CNRG), a multiformat, multibrand retailer with stores in 11 states, is buying McLendon Hardware of Washington state. TheRedT.com/mclendon-sells

Sears Holdings Corp. acknowledged “substantial doubt” in its ability to stay out of bankruptcy, which may jeopardize recent sales of its businesses, including the Craftsman tool brand. TheRedT.com/stanley-lose-craftsman

How HGTV Star Nicole Curtis Depends on Independents HGTV star Nicole Curtis was at the recent Ace Hardware Spring 2017 Convention & Exhibits and took time to tell Hardware Retailing about the independent retailers she relies on. TheRedT.com/nicole-curtis

Sherwin-Williams’ Purchase of Valspar Likely to be Delayed The Sherwin-Williams Co. announced that its deal to buy The Valspar Corp. likely won’t close as soon as planned. TheRedT.com/sherwin-valspar-delay

Ace Hardware CEO: In a Retail War, ‘Differentiate or You Die’ When Ace Hardware’s top executive stepped on stage at the start of the co-op’s spring buying show, he had fierce words for fighting competitors: find weakness and “attack it relentlessly.” TheRedT.com/ace-retail-war

Lowe’s Virtual Reality Tool Teaches DIY Projects Lowe’s recently launched a virtual reality tool that provides customers with hands-on training experience

American Made & Profitable For Over 80 Years

for DIY projects. The new tool, which Lowe’s calls the Holoroom How To, trains users how to install tile through a virtual reality program. TheRedT.com/lowes-vr

True Value Releases 2016 Year-End Results True Value Company recently released its year-end results for fiscal 2016, which included increases in gross billings, comparable store sales and net margin. TheRedT.com/true-value-2016

Stanley Finalizes Purchase of Craftsman Brand From Sears Stanley Black & Decker announced that it completed its purchase of the Craftsman brand from Sears Holdings Corp. for approximately $900 million. TheRedT.com/craftsman-sale

Ex-Lowe’s Exec Sues, Claims Racial Discrimination A former Lowe’s executive—who had been a potential successor for the company’s current CEO—is alleging he lost his job due to racism. TheRedT.com/lowes-lawsuit

Home Depot to Pay Another $25M in Data Breach Settlement Home Depot is adding a $25 million settlement with banks and credit card companies to its rising data breach costs, which are nearing $200 million total. TheRedT.com/home-depot-breach

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

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

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J.C. Penney Sees More Opportunities in Home Improvement J.C. Penney has started selling products such as bathtubs and power tools online and is expanding its services in some markets by offering basic bathroom remodels. TheRedT.com/jcpenney-homeimprovement

Kenmore Grills to Expand Beyond Sears, Kmart Kenmore grills will soon be sold in retail stores other than Sears and Kmart as part of a licensing agreement Sears recently entered. TheRedT.com/kenmore-grills

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

named two of Canada’s Best Managed Companies. The awards recognize excellence in private Canadian-owned companies with a focus on strategy, execution and workplace culture.

TIMBER MART’s Bernie Owens: ‘Independents Will Weather Changes’ The TIMBER MART 50th anniversary had President Bernie Owens enthusiastic, but also reflective. For him, the milestone offers a chance to look at the evolution of the home improvement industry and its future.

CANADA Home Hardware, Turkstra Among Canada’s Best Managed Companies A national co-op network and a privately owned regional Ontario chain have been

Feds Give Fort McMurray a Boost With Gypsum Tariff Ruling Finance minister Bill Morneau recently announced that the federal government will cut duties on U.S. drywall imports to Western Canada by 32 percent and will

give $12 million from collected duties into a rebuilding grant for the wildfirestricken community.

BMR Plans Conversion of Some Unimat Stores in Coming Months Groupe BMR is ramping up support for its core BMR banner and has no plans to diminish the Unimat banner that is also part of its stable of brands.

LumberZone Acquires North American Lumber Stores The LumberZone, a TIMBER MART member-dealer, has announced its acquisition of the business operations and assets of North American Lumber’s Winnipeg and Stonewall, Manitoba, locations. For the full story of each of these briefs, visit hardlines.ca/hardwareretailing.

May 2017 | HARDWARE RETAILING

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AD INDEX

212

Abatron Inc. ......................................................... 38 www.abatron.com; 800-445-1754

DeWitt .............................................................. 39 www.dewittcompany.com; 800-888-9669

Independent Garden Center Show .................... BC www.igcchicago.com

ABUS ................................................................... 25 www.abus.com; 800-352-2287

Diamond Brite/RDL Marketing .......................... 41 www.diamondbritepaint.com; 773-254-7600

IPG..................................................................... 169 www.itape.com; 888-898-7834

Ace Hardware...................................................... 13 www.myace.com; 630-990-6900

Diamond Machining Technology ....................... 137 www.DMTsharp.com; 508-481-5944

Jack Link’s Beef Jerky ...................................... 177 www.jacklinks.com; 715-466-2234

Ajax Wire Specialty Co. Inc. .............................. 210 www.ajaxwire.com; 855-966-2529

Do it Best Corp................................................ 3, 95 www.independentsdoitbest.com; 888-364-8237

K-CO Products, LLC ................................... 118-119 www.kco-products.com; 949-276-5252

Allway Tools Inc. ............................................... 139 www.allwaytools.com; 718-792-3636

Dutton-Lainson Company.................................. 106 www.dutton-lainson.com; 402-462-4141

Kapro ................................................................. 178 www.kapro.com; 920-648-2900

American Earth Anchors.................................... 111 www.americanearthanchors.com; 508-520-8511

Dynatrap ............................................................ 173 www.dynatrap.com; 877-403-8727

Karcher ................................................................ 69 www.karcher.com/us; 877-722-6555

Amteco Inc. ......................................................... 68 www.usetwp.com; 800-969-4811

ECI Software Solutions ....................................... 61 www.ecisolutions.com; 800-588-5128

Keystone Steel & Wire........................................ 71 www.redbrand.com; 800-447-6444

Apex Tool Group, LLC. .......................................... 5 www.apextoolgroup.com; 800-688-8949

EcoSmart ........................................................... 168 www.ecosmartus.com; 877-474-6473

Kness Mfg. Co. Inc.............................................. 51 www.kness.com; 800-247-5062

Berry Plastics Corp. ............................................. 31 www.nashuatape.com; 812-424-2904

Emerson Air....................................................... 131 www.workshopvacs.com; 888-455-8724

Kraft Tool Co........................................................ 40 www.krafttool.com; 800-422-2448

Big Green Egg ..................................................... 81 www.biggreenegg.com; 800-793-2292

Epicor Software Corp. ....................................... 175 www.epicor.com; 888-463-4700

LHB Industries................................................... 180 www.tearmender.com; 800-552-8252

Bird•B•Gone Inc................................................ 107 www.birdbgone.com; 866-781-7797

Fiskars Brands Inc. .............................................. 21 www.fiskars.com; 866-348-5661

Lincoln Products.................................................... 7 www.lincolnproducts.com; 844-223-4770

Bird-X ................................................................. 166 www.bird-x.com; 800-900-7613

Flair-It................................................................ 42 www.flairit.com; 800-842-2543

Magna Industries Inc........................................... 52 www.magna-insto.com; 800-969-3334

Bonide ............................................................... 115 www.bonide.com; 315-736-8231

Flame Engineering Inc......................................... 20 www.RedDragonTorch.com; 800-255-2469

Mars Comfort-Aire............................................. 187 www.marsdelivers.com

Buff.................................................................... 113 www.buffusa.com; 707-569-9009

Flexon ..............................................................157 www.flexonhose.com; 800-327-4673

Master Magnetics Inc. ........................................ 88 www.magnetsource.com; 888-293-9190

Calico Brands Inc............................................... 211 www.calicobrands.com; 800-544-4837

Franklin Sensors ................................................ 186 www.franklinsensors.com; 208-918-2405

Max USA Corp................................................... 165 www.maxusacorp.com; 800-223-4293

CaroCon Display & Packaging ............................. 22 www.caroconusa.com; 866-859-3334

Franmar ............................................................. 167 www.franmar.com; 800-538-5069

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

Caterpillar........................................................ 14-15 www.cat.com; 888-614-4328

General Paint & Mfg. ........................................... 48 www.generalpaint.com; 800-345-9218

Midwest Fastener .......................................... 98-99 www.fastenerconnection.com; 800-444-7313

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

General Pipe Cleaners, Div. of General Wire Spring Co... 59 www.drainbrain.com; 800-245-6200

Midwest Products ............................................... 56 www.midwestproducts.com; 800-348-3497

Chapin Mfg. .....................................................110 www.chapinmfg.com; 800-950-4458

HERO Products Group ........................................ 70 www.hero.ca; 604-522-6543

MiTek................................................................. 155 www.uspconnectors.com; 800-328-5934

Char-Broil ............................................................. 38 www.charbroil.com; 866-239-6777

Hestra JOB USA.................................................. 89 www.hestrajobusa.com; 888-939-9969

Mr. Longarm........................................................ 57 www.mrlongarm.com; 800-821-3508

Coast Products Inc. ................................ Belly Band www.coastportland.com; 800-426-5858

Hillman................................................................. 33 www.hillmangroup.com; 800-800-4900

National Hardware Show..................................... 53 www.nationalhardwareshow.com

Cole’s Wild Bird Products Co. ..................... 23, 117 www.coleswildbird.com; 877-426-8882

House-Hasson Hardware Co. .............................. 55 www.househasson.com; 800-333-0520

NRHA Cost of Doing Business ...........................171 www.TheRedT.com/CODB2017

Collier Metal Specialties Ltd................................ 50 www.colmet.com; 800-829-8225

Howard Products Inc......................................... 184 www.howardproducts.com; 800-266-9545

NRHA Membership.............................................209 www.nrha.org/membership

Convenience Products ........................................ 43 www.touch-n-foam.com; 800-325-6180

HSI..................................................................... 181 www.hardwaresuppliers.com; 800-334-5625

NRHA Retail Management Certification Program..188-189 www.nrha.org/RLI

Dap Products Inc. ................................................ 87 www.bit.ly/dynagrip.com; 800-543-3840

Hy-Ko ................................................................... 72 www.hy-ko.com; 800-292-0550

Old Masters......................................................... 63 www.myoldmasters.com; 800-747-3436

HARDWARE RETAILING | May 2017

Orgill Inc. .................................................... 216-IBC www.orgill.com; 800-347-2860

ShurTech Brands/Frog Tape.............................. 58 www.frogtape.com; 877-376-4827

Warp Bros. .......................................................... 91 www.warpbros.com; 800-621-3345

Paladin Data Corp. ............................................ 45 www.paladinpointofsale.com; 541-803-6060

Simpson Strong-Tie Co. Inc. ............................149 www.strongtie.com; 800-999-5099

Weber.................................................................. 11 www.weber.com; 800-446-1071

Phifer Inc. .......................................................... 163 www.phifer.com; 800-841-9473

Smanos Inc. ...................................................... 97 www.smanos.com/us; 214-396-8868

Whink Products ................................................. 121 www.whink.com; 800-247-5102

PRO Hardware ........................................... 128-129 www.prohardware.com; 303-792-3000

Starrett.............................................................. 35 www.starrett.com; 978-249-3551

Wood Industries ................................................ 159 www.eaglecompressor.com; 800-551-2406

Quikrete............................................................. 105 www.quikrete.com; 404-634-9100

Stihl...............................................................76-77 www.stihlusa.com; 757-486-9100

Woodland Scenics............................................... 36 www.pinecar.com; 573-346-5555

Radia.................................................................. 143 www.radiaproducts.com; 800-221-1083

Sunnyside Corporation.....................................161 www.sunnysidecorp.com; 800-323-8611

Woods Products Inc. ........................................ 73 www.woods.com

Reckitt Benckiser/d-Con ................................. 28-29 630-434-1350

Superior Pump................................................... 109 www.superiorpump.com; 800-495-9278

Wooster Brush Co....................................... 47, 215 www.woosterbrush.com; 800-392-7246

Red Devil Inc. .................................................... 179 www.reddevil.com; 800-423-3845

Tarter Farm & Ranch Equipment .....................103 www.tarterUSA.com; 800-414-2837

World Pet Association ....................................... 185 www.SuperZoo.org

Red Lion .............................................................. 74 www.redlionproducts.com; 844-250-4981

Threesixty Innovation Ltd.................................213 www.360innovation.co.uk; +44(0)1773 605100

Yardmax............................................................... 24 www.yardmax.com; 847-327-0566

Re-Grip, A Division of Preval............................145 www.re-grip.com; 800-607-8931

Titan Tool .......................................................... 19 www.titantool.com; 800-526-5362

XTend+Climb..................................................... 114 www.xtendandclimb.com; 612-330-9915

S-Line by Ancra International ............................ 37 www.ancra.com; 800-626-8353

Tri-Lynx Corporation.......................................... 90 www.trilynx.com; 800-463-5505

Zerust Consumer Products LLC.......................... 54 www.zerustproducts.com; 330-405-1965

Safety Works Inc. ................................................ 67 www.safetyworks.com; 800-969-7562

True Value................................................... 27, 65 www.truevaluecompany.com; 888-291-7229

SafeWorld Int’l. Inc.............................................. 49 www.cangun1.com; 800-743-0115

Twist and Seal ................................................... 151 www.twistandseal.com; 888-945-4545

Sakrete ................................................................ 17 www.sakrete.com; 866-725-7383

UGL ..................................................................... 75 www.ugl.com; 800-845-5227

Sashco ............................................................. IFC www.sashco.com; 800-767-5656

U.S. Wire & Cable ................................................. 9 www.uswireandcable.com; 800-327-4673

Sears Hometown Store ...................................144 www.ownasearsstore.com

Warner Tool....................................................... 150 www.warnertool.com; 800-444-0606

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

May 2017 | HARDWARE RETAILING

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Last Word

The National Hardware Show® and NRHA All-Industry Conference Timeline

2017

2009

2016

he North American Retail Hardware Association (NRHA) has supported, attended and exhibited at the National Hardware Show® (NHS) for decades. However, NRHA and NHS grew its relationship by introducing the NRHA Village in 2009. The Village is a place for independents to learn, network and escape the hustle and bustle of the show. To highlight the many changes and look back at fond memories from past shows and conferences, check out the timeline below.

There is a lot to look forward to this year. The National Hardware Show will announce the winner of the new Reimagine Retail program. The winner will be awarded $100,000 to use in their business operations.

Attendees learn from Charles Fishman, author of “The Wal-Mart Effect,” how retailers can succeed in spite of Walmart. He shares insights on the retail giant.

NRHA and NHS team up to offer more for attendees. The NRHA Village and All-Industry Summit were brought to Las Vegas this year.

2015

2010

Shop-local research, conducted by NRHA and Independent We Stand, is revealed. The Home Sweet Home Study examines the impact of shopping locally.

Pat Farrah, co-founder of The Home Depot, hosts the opening ceremony for the show from the NRHA Village Stage.

2014

2011

The theme of the NRHA All-Industry Conference is “Trend Spotting.” Speakers cover homebuying preferences, emerging consumer demographics and more.

This is the first time the NRHA All-Industry Conference is held in conjunction with NHS, rather than in a different location later in the year.

2012

The Young Retailer of the Year program is held in Las Vegas during the National Hardware Show and NRHA All-Industry Conference, honoring the deserving winners.

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HARDWARE RETAILING | May 2017

2013

The conference features a keynote speech from Kathy Daly-Jennings, head of industry, retail practice for Google. She gives insights into consumer behavior.

Bobby Fuller Fuller & Son Hardware Arkansas

“Orgill’s people are smart and they care. You can call them any time and they always know who you are.”

Orgill Makes Success Personal Reliable Relationship, Sharp Pricing

Promises Kept

Great People

“I love doing business with Orgill because I know that when

“We have a really close relationship with Orgill. It feels

someone from Orgill tells me something, you can chisel it in

like we pretty much know everyone at the company. Orgill is a

stone because it’s a done deal.”

big operation, but you wouldn’t know it by the way they treat their customers. They are just very real people.”

Competitive Advantage “We are known for being competitively priced with everyone in

Market Benefits

our market, including the boxes. Orgill’s pricing lets us do this. We

“At the Dealer Markets, we always see things we never

also use their Market Specific Pricing system that makes sure we

saw before. We also take advantage of the Market pricing to

are always competitive on price without giving up any margin.”

remain competitive and boost our margins.”

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