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Picking Up the Pieces How LBM Retailers Help Communities Rebuild 70 NRHA All-Industry Conference Brings Retailers Together 84 Successful Women Retailers Honored in Top Guns Class 98

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TRUTH : IT’S TIME TO TAKE CONTROL. Our competitors talk about independence, but we walk the talk. You’re the boss of your store. You know your community, so you make the decisions. There’s no forced participation, no penalties. Use the True Value® brand name or use your own. Either way, you get our full commitment in service, training and support. ❯ No stock requirements or program mandates ❯ The strength of an iconic national brand ❯ Complete flexibility

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TRUTH : YOU CAN BREAK THE CHAINS. If you’re in a co-op, you’re living by someone else’s rules. Isn’t it time to break those chains? To pick and choose what to buy and what to sell? It doesn’t matter who your supplier is today— True Value® is open for business. ❯ Hundreds of assortments to customize your store your way ❯ Volume and growth rebates based on warehouse purchases

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Picking Up the Pieces How LBM Retailers Help Communities Rebuild 70 NRHA All-Industry Conference Brings Retailers Together 84 Successful Women Retailers Honored in Top Guns Class 98

VOLUME 214 • ISSUE 5 • MAY 2018 • HARDWARERETAILING.COM

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Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger

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

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

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

WEB DEVELOPER Kevin Trehan

PRODUCTION SERVICES PRODUCTION MANAGER Nancy A. Vondersaar

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

SALES AND PRODUCTION ASSISTANT Freda Creech

MEMBER SERVICES

CIRCULATION

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

CIRCULATION DIRECTOR Richard Jarrett

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

NRHA would like to thank Megan Menzer, executive vice chairman of Newton’s True Value, for serving as chairman of the NRHA board of directors for the past 12 months. Menzer has helped lead the association to find new ways to serve independent retailers across North America and has been a strong advocate for NRHA and her fellow business owners. This month, Menzer will transition to immediate past chairman to serve one more year on the board of directors.

GRAPHIC DESIGNER Kelsey Truex

PRESIDENT AND CEO Bob Cutter

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

Thanks for a Great Year, Megan!

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

“The education and networking resources available through the association are extremely valuable. I’ve made great friends through NRHA and have gained so many new ideas for my business.”

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

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

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

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

NRHA MISSION

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

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00.

David Dishke, Grand River Home Hardware, Caledonia, Ontario

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

Steve Fusek, Fusek’s True Value, Indianapolis

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2018 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

HARDWARE RETAILING | May 2018

SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN James Cabirac, Kief Hardware, Cut Off, Louisiana

Contents MAY 2018 | VOLUME 214 | ISSUE 5

172 OPERATIONS

Gina Schaefer Reflects on Effective Leadership A Few Good Hardware Stores’ co-owner Gina Schaefer has grown the business from a single location to a dozen with more than 280 employees. In this article, discover the six traits Schaefer believes are key to becoming an effective retail leader.

184 MARKETING

CATEGORY SPOTLIGHT

Rebuilding After the Storm

After severe weather ravages an area, lumberyards and building material centers often lead the charge to rebuild communities. Hardware Retailing spoke with retailers in California, Florida and Missouri to learn how their teams prepare for severe weather and how they serve their customers as the skies clear.

190 OPERATIONS

The Power of Cross-Merchandising Find new ways to highlight products and increase sales with innovative cross-merchandising techniques. Take a look at the various strategies you can use to intrigue customers and dramatically grow your operation’s average transaction size. 4

HARDWARE RETAILING | May 2018

196 FEATURES

Road Tripping With Renee Renee Changnon, profiles editor for Hardware Retailing, traveled with Independent We Stand along the Mississippi River to visit enterprising independents. Read about the many common challenges and opportunities independent retailers share nationwide.

Let Video Build Your Brand Dennis Yu, chief technological officer of BlitzMetrics, shares his perspective on building your brand, one quick and informative video at a time. Read to learn about Yu’s 3x3 video grid and how it can help tell your story, engage customers and boost your brand.

210 PROFILE

Working to Make Big Bucks When Todd Buckingham opened Bucks & Bolts Hardware & Outfitters, he knew his cousin Jake Buckingham would be the right person to take the reins. Find out how the retailers have used a mobile app to build an engaging customer loyalty program.

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Contents

INDUSTRY EVENT

Take a Tour Around the NRHA All-Industry Conference

The NRHA All-Industry Conference can help you strengthen your business. Held in conjunction with the National Hardware Show®, the conference’s keynote speakers and industry research can give you the competitive edge.

See you at the show!

126 INDUSTRY EVENTS

Mother-Daughter Duo Makes Moves Karen E Laine and Mina Starsiak Hawk will discuss how they turned their passion for rehabbing homes in Indianapolis into a hit HGTV show. Read their story, and don’t miss their keynote presentation Tuesday, May 8 at the NRHA All-Industry Conference.

140 INDUSTRY EVENTS

Going Green in Texas For Jason Ballard, CEO and co-founder of TreeHouse, stylish, eco-conscious living begins now. Read to learn his inspiration to launch the home upgrade company. On May 9, Ballard will deliver a keynote address at the 2018 NRHA All-Industry Conference.

152 OPERATIONS

INDUSTRY AWARDS

The 2018 Top Guns

This year, the North American Retail Hardware Association honored four women as the industry’s Top Guns, the first all-female panel in the program’s history. Learn how these women are excelling in their careers, spearheading growth in their businesses and looking ahead to address changes in retail that will impact the entire independent home improvement industry.

Amanda Fancy

100 Gow’s Home Hardware

Jamie Gentner

106 Center Hardware & Supply

Menards 360 In 1958, college student John Menard began a pole building company in Wisconsin. The business later became home improvement center Menards, which now operates 306 stores in 14 states. Learn about Menards’ history, finances and its future opportunities in our annual 360-degree overview.

Departments 08 . . . . . . . . . . . . . . . . . On the Web 10 . . . . . . . . . . . . . . . . . . . On Social 12 . . . . . . . . . Independent Thinking 14 . . . . . . . .Taking Care of Business 18 . . . . . . . . . . . . . . . . NRHA News 26 . . . . . . . . . . . . . . . . . . . . . Trends 32 . . . . . . . . Spring Product Preview 60 . . . . . . . . . . . . . . . . . . Checkouts 220 . . . . . . . .Newsmakers/Calendar 226 . . . . . . . . . . . . . . The Last Word

On the Cover Chuck Strong, general manager of Shell Lumber & Hardware, stands at the ready . NRHA photo by Kelsey Truex

Megan Menzer

112 Newton’s True Value 6

HARDWARE RETAILING | May 2018

Angela Merritt

118 Ederer’s Do it Best

On the Web

RESEARCH

How Are Retailers Planning for Their Futures? NRHA recently released its Succession Planning Study. Visit TheRedT.com/sp-study to download the study for an in-depth look at where independent home improvement retailers stand on planning for their company’s future, and to read insights from those who have developed and executed a succession plan.

BLOG

An Inside Look at Local Businesses Along the Mississippi Hardware Retailing profiles editor Renee Changnon spent five days road tripping along the Mississippi River with Independent We Stand, visiting only locally owned business along the way. Read her trip recap on page 196, then go to TheRedT.com/road-trip-pics to see photos from her adventure. VIDEO

PROFILES

A Bird’s-Eye View of 5 Big-Box Retailers In this issue, you get an inside look at Menards in Hardware Retailing’s annual 360-degree feature. Visit TheRedT.com/360-overview to read up on the history and inner workings of other big-box companies, including Target, Amazon, Tractor Supply Co. and Walmart to learn what makes these retailers so successful. 8

HARDWARE RETAILING | May 2018

Build Your Brand and Market Your Business With Video Hear marketing and branding expert Dennis Yu’s strategy for using videos to increase brand awareness, encourage customer engagement and achieve conversions at TheRedT.com/3x3-videos.

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail

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On Social Media

LIVE FROM LAS VEGAS Join the Action at the NRHA All-Industry Conference and National Hardware Show®

6 Ways to Follow

NRHA On NRHA’s Facebook page, you’ll get photo, video and status updates on events and seminars in the NRHA Village.

Hardware Retailing Stay tuned for posts on the latest news from the conference and products and updates from the show floor.

NRHA Check NRHA’s Twitter feed regularly to see which events and seminars are coming up next in the NRHA Village.

Hardware Retailing Editors will be tweeting about newsworthy aspects of the event like awards and seminar highlights.

NRHA Experience the excitement by watching live story updates from the event on NRHA’s Instagram. Get ready for

behind-the-scenes peeks, exclusive event extras and a daily overview from the conference floor.

NRHA @NorthAmericanRetailHardwareAssociation

#NRHAConference Search this hashtag on Instagram, Facebook and Twitter to see an overview of posts related to the NRHA All-Industry Conference from your association and event attendees. If you’re at the conference, make sure to include the hashtag in your posts.

HARDWARE RETAILING | May 2018

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Hardware Retailing @HardwareRetailing @hardwareretail

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Independent Thinking

Know Your Business

“This financial

benchmarking tool can be a game-changer for your business.

”

ome people make money in spite of themselves! If you’ve ever heard me give a presentation on the North American Retail Hardware Association’s (NRHA) Cost of Doing Business Study, you’ve more than likely heard me utter those words. It seems a little harsh, and most of the time, the room starts with a few chuckles until people take the time to think through some of the examples I give them. At the end of the day, they realize the statement is very true. Have you ever been in a restaurant and had such horrible food or service that you decided to never go back? And yet, the restaurant is there, day after day, week after week, somehow making money in spite of itself. Before coming to NRHA almost six years ago, I was one of those restaurant owners. For 20 years, I was a Wendy’s franchisee with 17 stores and 600 employees. One of our internal jokes was that Dave Thomas must have had a great product because we spent a lot of years working hard to screw it up but couldn’t. The Wendy’s business was a people business first, but it was also heavily driven by operations. We didn’t turn the corner until we fixed our people issue and our operations. Much like NRHA training, Wendy’s had a world-class training system as it related to operations, and once we embraced their training philosophy, operations really took off. Pickup window time improved, food costs went down, turnover was reduced and sales grew year after year. And from an operations perspective, Wendy’s provided us with all sorts of data from their system that allowed us to compare our operations to other stores. We used that information to help guide us on how to improve our operational inefficiencies. If the average store produced food at the pickup window in 85 seconds during lunch and it took us 95 seconds, we knew we had an issue. Was the wrong person on the register, was food not prepped properly, did we have broken headsets? The one key here is we knew because Wendy’s provided that data. Where Wendy’s lacked data, however, was financially. It was probably due to the fact that about 90 percent of the Wendy’s system is a franchised business. Wendy’s International wasn’t able to compile all the data from the individual entities. So, while I could tell you at any given time that our food cost was 29 percent and our theoretical food cost was 28.3 percent, I couldn’t tell you how those numbers compared to other stores in the system. Imagine my surprise on the day I started at NRHA when I was presented the wonderful tool called the Cost of Doing Business Study. My immediate response was, “I would have given my firstborn to have this tool at Wendy’s.” Now, I have four kids, so that’s not a tremendous sacrifice. Nonetheless, this financial benchmarking tool can be a game-changer for your business. Now in its 101st year, the Cost of Doing Business Study compares balance sheets and income statements from over 1,000 stores, just like the ones you operate. It is free to participate, and your individual information stays completely confidential. In addition to getting a complimentary copy of the study, participants get a Personalized Financial Analysis that includes your company’s financial results compared to industry averages, a what-if scenario generator, your company’s financial ratios and other financial tools. Visit TheRedT.com/2018-codb-participate to learn how you can submit your data, and don’t be left wondering, “Do I make money in spite of myself?”

David Gowan, Vice President of Finance and Business Services

dgowan@nrha.org

HARDWARE RETAILING | May 2018

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Taking Care of Business

I’ve Got a Few Questions for You

“Exploring new

ideas, products and points of view is a critical component in driving your overall success.

”

t the beginning of this month, retailers, distributors, manufacturers and other folks allied to the home improvement industry will all gather in Las Vegas for the National Hardware Show®. During the show, millions of ideas will be sparked, tens of millions of conversations will be had, hundreds of thousands of steak dinners will be ingested, and there might even be a few cocktails thrown in for good measure. If you are going to be at the show, we definitely want you to stop by the NRHA All-Industry Conference being held in the NRHA Village. We will have a variety of expert speakers on hand, you can meet some other independent retailers just like yourself and join everyone for a refreshing beverage. For those of you who aren’t going to make it to the show, I have a few simple questions I’d like to ask you. • Why not? I mean, I do understand things come up, like your daughter is getting married or you are going in for knee surgery to fix that old golfing injury. Aside from that, the National Hardware Show affords you one of the best opportunities to interact with other retailers, learn about trends impacting the industry and see a variety of new products you might not otherwise be exposed to. • Do you go to other events throughout the year that introduce you to new ideas and points of view? If the National Hardware Show doesn’t pique your interest, are you at least attending other events throughout the year that allow you to broaden your business horizons and think beyond the four walls of your own operation? Exploring new ideas, products and points of view is a critical component in driving your overall success. • Are you happy with how your business is performing? One good reason retailers sometimes list for not attending the National Hardware Show or other industry events is that they are too busy or that their operation is doing fine. If this is the case—congratulations! While I am pleased your business is chugging along, here’s the problem. If you don’t actively pursue new ideas and challenge yourself to look for new ways to run your operation better or to grow at an even faster pace, you are putting your business at risk should the winds of economic change begin to blow in a different direction. Honestly, no matter what reasons you come up with for not attending the National Hardware Show or other industry shows throughout the year, I want to leave you with this little observation. I have been going to the National Hardware Show and dozens of other similar shows for more than two decades. I have also visited with hundreds, if not thousands, of successful independent retailers over this same time span. Before I even arrive in Las Vegas, I can tell you with a degree of certainty that I will run into some of the industry’s most successful and progressive independent retailers while I am at the show. They find the time to get away from their operations to be in attendance. They don’t think their operations are “just fine” without attending these kinds of events. So, I guess I have one last question: What are you waiting for?

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | May 2018

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NRHA News

4 Insurance Policies Overlooked by Retailers

hen a retailer fails to invest in the proper types of insurance coverage, their business could be at major risk in the event of an accident or disaster. Below, Carl Dent, vice president of claims and risk services at Member Insurance, explains four types of coverage options

Roadside Assistance Why It’s Overlooked Dent says business owners often avoid investing in roadside assistance for commercial fleets in an effort to save money. But now, Member Insurance is making it easier than ever to stay protected on the road. “The Member Insurance plan offers business owners the ease of having their roadside assistance covered by the same company that handles the rest of their business coverage needs,” Dent says. The Risk to Your Business Without roadside assistance coverage, owners risk having their delivery vehicles stranded on the side of the road. This experience can be stressful for your employees and may reduce productivity.

Flood Insurance Why It’s Overlooked According to Dent, retailers neglect flood insurance because they believe they can’t afford it or they don’t live in a zone where it’s required. “If a business owner is not required by their mortgage lender to have flood insurance, there is a false feeling of security that the business isn’t at risk for flooding,” Dent says. “In reality, it can flood anywhere it rains.” The Risk to Your Business Without flood insurance, retailers are left to pay for any flood damages out of their own pockets. Dent explains that these costs can be very expensive and can result in a small business closing its doors after the disaster.

HARDWARE RETAILING | May 2018

that retailers often overlook, but should consider to protect their businesses. For more information about Member Insurance, a North American Retail Hardware Association (NRHA) business services partner, visit memberinsurance.com.

Cyberliability Insurance Why It’s Overlooked Small business owners often think they’re too small for hackers to target. But if someone can hack a big-box retailer, they can attack an independent company. The Risk to Your Business When a retailer does not obtain coverage, they’re responsible for all expenses in the following areas. • Data Breach Liability protects a business when customer information is compromised. • Data Breach Expense covers expenses incurred while responding to a data breach. • Website Liability includes claims of libel, slander, invasion of privacy, plagiarism and more. • Identity Theft Expense covers costs if the owner is compromised and customer data is obtained.

Employment Practices Liability Insurance Why It’s Overlooked According to Dent, the most common objection involves retailers assuming they won’t need it because their company feels tight-knit and family-like. Even so, unpredictable scenarios can occur. The Risk to Your Business Without this type of coverage, business owners are responsible for the cost of any lawsuit claiming sexual harassment, discrimination or wrongful termination, to name a few. Even in a smaller operation, retailers can never be too careful. Even if the owner is innocent, they are still financially responsible for lawsuits brought on as a result of their employees’ behavior.

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NRHA News

NRHA Celebrates This Year’s Young Retailer of the Year Honorees

RHA is proud to announce the new class of Young Retailer of the Year honorees. Now in its 22nd year, this program honors the creativity, diligence and hard work that retailers under the age of 35 display each day. From improving their businesses to strengthening their communities, these retailers are truly committed to their companies and moving the industry forward. Honorees from across the U.S. and Canada were judged on a range of factors, including community involvement, continuing hardware education and career highlights. Honorees were hand-selected as some of the best and brightest in the industry. The eight honorees represent three categories, including stores with annual sales under $2 million, stores with annual sales over $2 million and retailers who operate multiple locations. Congratulations to the following 2018 honorees.

“Hearing their stories and

seeing how they’re leading the way in bringing fresh new ideas to the table is always inspiring. —Scott Wright, executive director of NRHA’s Retail Leadership Institute

Under $2 Million in Annual Sales • •

Ronna Kilts—manager, Mattson’s Hardware in Howard City, Michigan Megan Zarbano—owner, Handy Hardware Hank in Valley City, North Dakota

Over $2 Million in Annual Sales • • •

Sean Angelo—general manager, Budget Home Supply in Longmont, Colorado Taylor Baker—owner, Foothills Hardware & Builders Supply in Pilot Mountain, North Carolina Michael Wilson—general manager/dealer owner, Wilson’s Home Hardware Building Centre in Barrington Passage, Nova Scotia

Multiple Stores • • •

Byron Clouse—owner, Lewiston Ace Hardware in Lewiston, Michigan Nate Ludwig—general manager, Dazey’s Building Center in Garberville, California Diana Newton—vice president, Bay Hardware in Seal Beach, California

“Showcasing the achievements of our Young Retailer of the Year honorees to the industry is one of the highlights of the NRHA All-Industry Conference,” Scott Wright, executive director of NRHA’s Retail Leadership Institute, says. “Hearing their stories and seeing how they’re leading the way in bringing fresh new ideas to the table is always inspiring.” Sponsors of the 2018 Young Retailer of the Year program include Channellock Tools; Delta Faucet Co.; The Fluidmaster Co.; Intertape Polymer Group; and Midwest Fastener. The Young Retailer of the Year banquet will be held Monday, May 7 at the Renaissance Las Vegas Hotel the evening before the NRHA All-Industry Conference begins. For more information on the program and conference, visit nrhaconference.com.

HARDWARE RETAILING | May 2018

Jarrod Haines, 2017 Young Retailer of the Year Honoree

”

NRHA News

NRHA Website to Get a Major Facelift

n the coming months, NRHA will launch an updated version of its website. The new site will showcase several new features for retailers, allowing them to access information and tools for their businesses, learn about new programs and share ideas with other business owners. All visitors to nrha.org will experience better organization and search functionality, making it easier to find and download NRHA resources. The site will be reorganized to highlight the four main areas of NRHA’s product offerings, including training, business services, research and events. Each of these categories will give visitors the ability to navigate and discover extra information. You will also be able to consult the new website to learn more about how association membership is structured, including free membership, NRHA Training Membership and individual program and resource offerings. Continued on Page 24

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This Niche Hits a Sweet Spot

hoppers at Andy’s Ace Hardware in Anchorage, Alaska, usually have a difficult time turning down a free sample of fresh fudge the retailer offers. For those who want to purchase some to take home, their biggest decision might be what flavor to try next. At any given time, there are approximately 25 different flavors in the fudge department at Andy’s Ace, ranging from traditional favorites such as peanut butter, rocky road and chocolate, to the more adventurous, such as strawberry shortcake, orange cream, butter pecan and jalapeno. Owner Stephanie Van Ness says several of the hardware store’s employees are trained to make the fudge. They make it in a kitchen on the store’s second floor, and it’s a simple process that only takes a few hours. “We generally make about 100 pounds a week, which we can keep for six weeks as we sell through it. The margins are very good since we make it ourselves,” she says. Their vendor, Calico Cottage, provides them with all of the recipes and ideas for unique flavors. For a business that has many niches, having a fudge department centrally located on the salesfloor offers a perfect impulse buy, especially when there’s a free sample to entice customers. Andy’s Ace also sells Abdallah chocolates and freshly roasted nuts from the Nutty Bavarian Co., made in the store. “We offer free fudge samples all day, every day,” says Van Ness. “Customers have to walk right past the fudge shop to get just about anywhere in the store. Business is very good around Christmas, because we have a post office in our store. When there’s a line of people waiting to mail their packages, we often use the opportunity to offer fudge samples. This niche has really grown in the eight years we’ve had it.”

At any one time, the fudge department at Andy’s Ace Hardware may have 25 different flavors of fudge. The department sits in a prominent place in the store, so customers are tempted with a tasty impulse purchase.

HARDWARE RETAILING | May 2018

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EMPLOYEE RELATIONS

Incentives Are In

ater this year, the minimum wage in Alberta, Canada, is expected to rise to $15 per hour, and that poses a dilemma for Josh Beusekom, owner of Next Home and Garden in Fort Macleod, Alberta. That’s the wage he’s already paying his employees because he wants to set himself apart as a premium employer. So he’s come up with a different plan, which may turn out to be even better in the long run. His Team Focused Rewards program offers perks, which he’s calling Next Dollars, to employees who meet certain sales goals and contribute to in-store events. Employees can redeem their Next Dollars for rewards ranging from store logo wear to a vacation. While the initial motivation of the program may have been to encourage employee retention, it has become more about team building. “If we can focus on giving our staff value and making them part of something team or growth focused, then being a part of the staff is not just about wage,” he says. “It has really brought everyone closer together.” Beusekom has seen tangible results, too. For the first three months of 2018, he’s already increased his average transaction size by $2. “We’re not going for the hard sale with customers just so we can reach our goals,” he says. “Rather, we are focused on offering more complete customer service.”

One way employees at Next Home and Garden can earn incentives is through their contributions to in-store events.

MARKETING

Retailer Stays Colorful by Design

Wankel’s Hardware in New York City has had its distinctive storefront look since the 1970s.

HARDWARE RETAILING | May 2018

he streets of New York City don’t often find ways to surprise visitors or New Yorkers with their style. The hustle and bustle of such a metropolis means most people are hurrying to be somewhere or focusing on keeping their path clear on the sidewalk. Wankel’s Hardware isn’t like most other New York City buildings. Following a design change in the 1970s, Wankel’s Hardware has sported a patriotic motif that stands out among the brick and steel buildings in its vicinity. With white and blue paint framing the windows of the upper floors and bright red on the fire escapes and ground-floor storefront, the design certainly draws the eyes of passers-by. “It’s a unique color scheme for sure, and we get a lot of interest from people who want to take photos for Instagram,” vice president of sales Sean Wankel says. Wankel is the fifth generation of his family to work in the store. The only changes in recent years were to update the color of the doors leading into Wankel’s Hardware, which had been red like the rest of the first floor. “We run our business as a community store for people in our neighborhood, and showing our unique nature in our building design is part of that,” Wankel says.

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COMMUNITY RELATIONS

Stop and Honor With Roses

or the past four years, Nyberg’s Ace Hardware has offered its customers a way to remember fallen veterans on Memorial Day. The company, which has five locations across Sioux Falls, South Dakota, gave free roses to its customers. Staff encouraged them to lay the roses on the headstone of the grave of a veteran buried locally on Memorial Day. On the two days preceding the national holiday last year, Nyberg’s gave out a total of 1,000 roses, split between each location, to all its customers. “It’s our way of reminding the public the true meaning of the Memorial Day holiday, to honor those who gave their lives for us and fought for our freedom,” says Kevin Nyberg, owner of Nyberg’s Ace. Marin Huber, the company’s advertising director, says the flower giveaway project is a joint effort with the Memorial Day Flowers Foundation, a nonprofit organization that partners with civic groups, florists and retailers to put

For the past four years, employees at Nyberg’s Ace Hardware in Sioux Falls, South Dakota, gave out 1,000 flowers to customers in the two days preceding Memorial Day.

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“Our staff has heard many

touching stories from our customers who come in for their rose to honor their loved one. —Marin Huber, Nyberg’s Ace Hardware

”

long-stemmed roses on graves of veterans for Memorial Day. The organization has been distributing roses since 2011 in Arlington National Cemetery and in hundreds of communities all across the country. When Nyberg’s Ace purchased 1,000 flowers to give to its customers, the foundation pledged to place 600 additional roses on headstones at Arlington National Cemetery on Memorial Day to honor Nyberg’s contribution. “We are true believers in the Memorial Day Flower Foundation and being part of a project that honors those who have served. This is a win-win, feel-good, community project in which we have received overwhelming response from our customers about our store’s recognition to veterans,” says Huber. “Our staff has heard many touching stories from our customers who come in for their rose to honor their loved one. It’s a wonderful project we are happy to be a part of and an important program for our customers as well as our staff.”

Customers who received flowers were asked to place them on the grave of a veteran. The flower distribution was part of a nationwide effort to honor veterans.

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By Chad Husted, chusted@nrha.org

After the Storm LBM Retailers Learn From Rebuilding Communities

hrieking winds, pounding rain, choking smoke— these portents of disaster can haunt communities around the world. Whether it is landslides in the hills of California or the hurricane-ravaged Atlantic Coast, many areas of North America must be on constant alert for natural disasters that can leave communities desperate to rebuild their homes and retain their spirit and morale. Lumberyards and building materials retailers play a crucial role in this process. While rebuilding a business after a natural disaster hits can be a challenge unto itself, these retailers are some of the first looked to for support by communities hoping to begin the healing process after losing their possessions, property and possibly the lives of citizens. Adverse situations can alter how a business plans product selection, hiring practices and even buying strategies. Lessons learned during these situations can extend beyond areas prone to natural disasters as well,

as businesses even far from the center of a storm can be affected by them through supply chain issues and increased need for certain products. Shell Lumber & Hardware’s original storefront has been located in Miami since 1928, enduring season after season of South Florida’s hurricanes. The business recently opened a second location in Key Largo, Florida. On the West Coast, Hayward Lumber has seven lumberyards across central California. The Santa Barbara, California, location was recently part of rebuilding efforts after forest fires and landslides closed down roads and demolished nearby homes. In the Midwest, Joplin, Missouri, is known for tornado damage and the struggle of rebuilding a community after a disaster. Herrman Lumber has been in Joplin since the 1960s and was a member of the business community when a multiple-vortex tornado struck the town in 2011. These three retailers have endured disasters of different kinds and have learned how best to prepare and adapt.

May 2018 | HARDWARE RETAILING

Putting the ‘B’ in LBM Building material centers are particularly affected by natural disasters in their communities. With a storm on the radar, these retailers are relied on to have the materials needed to fortify homes and buildings. While hardware stores of all sizes are often called on to help rebuild after a destructive event, lumberyards are often key for consumers due to the increased availability of building materials such as plywood boards and common cut sizes. After the disaster has passed, homeowners and other residents looking to replace or repair damaged buildings come to these retailers to begin the process and access needed products. John Ruark, branch manager for Shell Lumber’s store in Key Largo, Florida, has been with the company since 1998 after a career with big-box retailers. The Miami headquarters for the business has a 10,000-square-foot hardware store paired with 25,000 square feet of lumberyard that routinely services hundreds of area contractors, builders and homeowners.

“Some storms, like Hurricane Katrina, you’ll see a lot of rain, and that’s when products like sandbags, mold removers and tarps are important to have.

Shell Lumber also maintains a separate distribution center a few miles away from its Miami storefront, which allows for more storage potential and is a key part of its ability to maintain products and keep them in stock for potential storms and hurricanes, says Shell Lumber general manager Chuck Strong. Along with the normal supplies for high-end construction, the 2 ½-acre distribution center has evergreen supplies often in high demand and low supply during hurricanes, such as bottled water, construction-strength plastic garbage bags and fencing that is easily set up. With years of hurricane preparation under his belt, Ruark says Shell Lumber has been able to stay stocked with needed materials like plywood boards for boarding up windows and openings in a home. Yet each storm is different, he says. “Some storms, like Hurricane Katrina, you’ll see a lot of rain, and that’s when products like sandbags, mold removers and tarps are important to have. Hurricane Irma brought more wind damage and knocked down every fence in Miami-Dade County, so now we’re selling those materials like never before,” Ruark says.

”

—John Ruark, Shell Lumber & Hardware

Supplies commonly needed during hurricanes and natural disasters are stored at Shell Lumber & Hardware’s distribution center in Miami. Customers often seek products like water, heavy-duty garbage bags and ready-to-assemble fencing during storm season.

HARDWARE RETAILING | May 2018

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Shell Lumber’s off-site storage and ability to quickly resupply through its distribution center allows it to maintain a strong back-stock in needed materials, but not all retailers can be so prepared year-round. Tornadoes don’t often have the courtesy of signaling their intentions beforehand. When Joplin was hit in 2011, Herrman Lumber store manager Brian Lewis returned to a store with no roof and no power. Demand for tarps, plastic floor mats and generators quickly rose to untenable levels, so Lewis relied on his close relationships with vendors to get materials into the area. Wholesalers can also be helpful in establishing supply lines before a crisis. Lewis recommends that retailers take particular care to keep themselves loaded with their staples, even when a disaster isn’t looming. Because Herrman Lumber is already heavily invested in roofing, a freak hailstorm in 2017 didn’t deplete its stock even as roofing needs skyrocketed for homeowners.

“There are always changes, and

storms can alter buying strategies in the short term so you have to be prepared to change course. —John Ruark, Shell Lumber & Hardware

”

“If you’re known for a certain product or service, make sure it’s always on hand and you can’t be caught off guard,” Lewis says. “As far as vendors, that’s also a long-term plan that becomes most important after a disaster. The choices you make months before about who you’re sourcing from will pay off or be a real problem once the storm hits.” When rebuilding starts, the supply chain for lumberyards can be particularly taxed in regards to commonly needed lumber and construction supplies. For example, Shell Lumber stocked up on drywall after seeing the destruction from Hurricane Harvey, Ruark says. Lewis has seen sheet rock and roofing supply costs increase after disasters far away from Joplin, and Herrman Lumber has looked to alter its buying strategies accordingly. Natural disasters and the subsequent rebuilding phase can alter the industrywide outlook for pricing and buying, Ruark says, but many issues can be mitigated by regional suppliers. The industry as a whole has learned to make adjustments over the years as well. “Even without building booms after storms, we’re always in the commodity market with our products. There are always changes, and storms can alter buying strategies in the short term so you have to be prepared to change course,” Ruark says. “Long-term plans are easier to keep on track because the industry has gotten so good at logistics.

One way retailers can assist communities after a natural disaster is by offering services or items that few other businesses can offer. Hayward Lumber in Santa Barbara, California, offered a local zoo its fleet of trucks if it needed to evacuate animals due to forest fires.

HARDWARE RETAILING | May 2018

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Smoke from the Thomas Fire in 2017 can be seen from the Santa Barbara, California, location of Hayward Lumber. Forest fires and landslides are some of the natural disasters that plague California communities and retailers.

A Flood of Customers How a business reacts in a time of crisis is where it earns trust from its customers or loses their confidence for years to come. Turning around after a disaster and keeping business moving is a point of pride for many retailers. But it’s also just part of doing business in the LBM industry. Scott Jones, southern market manager for Hayward Lumber, oversees several locations of the company and knows the fine line businesses must walk after a disaster. Pricing for in-demand items will be under intense scrutiny, and any indication of profiteering from customers will draw withering criticism. “Some items you have to just maintain their price, even if supply is down and prices on your end are rising. Sometimes we donate items for organizations designed to help in relief efforts. There was also a ‘bucket brigade’ of volunteers that was helping homeowners recover after landslides. We sold those buckets at cost,” Jones says. Assisting customers can go beyond supplying materials, Jones says. Finding nontraditional

HARDWARE RETAILING | May 2018

ways to assist community members can also earn customers’ loyalty, but more importantly, can help a community in ways few others can. “During the most recent fires, we were contacted by the Santa Barbara Zoo for a possible evacuation of their animals,” Jones says. “We have trucks and manpower that not too many others have in the immediate area, and that’s just one way we could help community members. Luckily the zoo wasn’t forced to evacuate, but there are other areas where we can be of unique help.” Strong with Shell Lumber says it isn’t surprising to see customers lining up hours before the business opens in the days leading up to an expected hurricane. Procrastination and the general panic induced by an impending storm can trigger many customers seeking the same products, which is why Shell Lumber has built a plan around how to best serve the most customers. “We have employees who will go through the line at the register, which can be an eight-hour wait at times, and let them know how much of each item they can purchase,” Strong says. “This customer

wants 200 pieces of plywood. Well, the one after him does, too, so we can’t do that. They can have seven. That way the last person in line, even after eight hours, can expect to get his seven boards, too.” Rationing products can cause some discomfort for customers, but it ultimately engenders more positive reactions when the storm has passed and customers are no longer panicked, Strong says. Those same customers will remember they were able to get some supplies and that Shell Lumber sells those much-needed supplies at the same price they sell them for when it’s a sunny day in Miami. Other ways to assist customers after a disaster include working with them in selecting contractors and other professionals they’ll need to rebuild homes and offices. After the 2011 tornado, Joplin was inundated with contractors and builders from outside the affected area, ostensibly there to help rebuild the community. Lewis is quick to say most were professional and genuinely looking to help while also building their businesses,

yet some were taking material on credit and not paying it off, using bad checks and offering exorbitant terms for repair work. “I truly believe that, after a disaster, the level of trust you can build with your neighbor is astounding. People are asking for help, and it brings out the good in people,” Lewis says. “A retailer can be a good neighbor by making sure customers are taken care of. In this industry, we have resources to check out contractors that our customers likely don’t have, so we want to be that resource.”

Top right, bottom left: Shell Lumber & Hardware is known for keeping its lumber and hardware shelves stocked. Bottom right: Shell Lumber GM Chuck Strong (left) works with a customer on selecting the proper lumber product.

May 2018 | HARDWARE RETAILING

“We have so many

employees who have been with us for many years, and that’s because we’ve been able to work so closely with them to keep them and their families safe while also getting work done.

”

—Chuck Strong, Shell Lumber & Hardware Taking Care of the Home Team Assisting customers recently affected by a disaster is a priority for an LBM retailer. Care must be taken to remember another group of area residents who are concerned for their homes and loved ones: employees. While a retailer will likely need all hands available to restore a business to operation, those employees are also working with their minds on their personal struggles. Shell Lumber has worked with its employees through a number of storms, Strong says, and being

just as generous with employees as customers is common practice. If an employee has requested to leave town before a storm hits, it is usually granted by management. The Miami location closed the day before the expected landfall of Hurricane Irma as well, which angered customers seeking last-minute supplies, but allowed employees to protect their own homes after working multiple 18-hour days to cater to the demand at the business. “There are limitations you have to accept in the short term, such as staffing shortages if your employees can’t reach the store or if they’ve had to leave town to keep their families safe,” Strong says. “We have so many employees who have been with us for many years, and that’s because we’ve been able to work so closely with them to keep them and their families safe while also getting work done.” When mudslides blocked the Pacific Coast Highway south of Santa Barbara in January, Jones knew Hayward Lumber was going to be severely affected by both employee shortages and altered delivery schedules. The Santa Barbara location draws most of its employees from communities on the other side of the closure, so close to a quarter of them would have a difficult time getting to work for what turned into more than a week of closure.

Herrman Lumber was one of many businesses damaged in 2011 when a multi-vortex tornado struck Joplin, Missouri. While the business was dealing with its own damages, the staff quickly began looking for ways to help customers with their needs as well.

HARDWARE RETAILING | May 2018

In the days leading up to a hurricane’s landfall, customers will swarm Shell Lumber & Hardware for plywood boards and flood control products. Employees have developed methods of crowd control and rationing to best serve their customers in their time of need.

“An emergency disaster plan,

properly laid out and practiced frequently, is what keeps a business going and its employees secure. —Brian Lewis, Herrman Lumber

”

Jones and his managers worked with employees based on their needs as well as the business’s, with employees who were able to be away from home for a few days staying with family close by if available. The idea was also floated, but not implemented, to put employees in hotels if needed. Managers took on responsibilities for workers who couldn’t reach Santa Barbara. Jones credits Hayward Lumber’s training program for allowing this kind of flexibility during a disaster, with heavy emphasis on cross-training employees from onboarding throughout their time with the business. “The job market in California is such that it can be very difficult to find qualified individuals in the LBM industry. So when we find one, we train them correctly, from inside sales to support staff and all throughout our salesfloor,” Jones says. “Any inside sales employee or dispatcher, anyone in the organization, starts learning the

HARDWARE RETAILING | May 2018

product in stocking and learning the industry at the sales counter. That’s how you can have depth of knowledge when your staffing situation isn’t ideal.” Preparing employees for disaster scenarios can keep a business alive after the destruction has passed, but keeping employees alive is more important. From working with employees who are affected during a natural disaster to protecting those on hand during a potential one, retailers are responsible for keeping their workforce safe, Lewis says. The 2011 tornado hit on a Sunday, a day which Herrman Lumber is commonly closed. However, having a plan in place is necessary in a region of the country that can have storms spring on communities with little to no warning. “We were fortunate, but you can’t plan on that always being the case. First you plan for everyone’s safety, so if you’re at the store when a storm hits, you know where you’re going and what you’re doing when you get there,” Lewis says. “Once the storm has passed, what are your responsibilities? Everyone has a role, both to keep themselves and the business safe. An emergency disaster plan, properly laid out and practiced frequently, is what keeps a business going and its employees secure.”

Top Guns This year, NRHA has selected four women as examples of high-achieving retailers who are pushing the industry forward. Page 98

National Hardware Show® Check out thousands of products from hundreds of vendors just steps away from the conference. Page 97

Keynote Speakers Read up on “Good Bones” and TreeHouse for a keynote preview. For insight into our third keynote visit TheRedT.com/the-grommet. Page 126

DISCOVER, CONNECT, THRIVE The NRHA All-Industry Conference at the National Hardware Show® Brings the Industry Together Insights

Association

The industry experts and retailers who will take the NRHA Village stage during the conference will share their stories. Attend these sessions to take back new information and ideas to implement in your operation.

The North American Retail Hardware Association (NRHA) All-Industry Conference is the only event tailored to independent retailers, regardless of wholesaler. Find out what your association can do for you.

Page 90

Social Media You won’t miss a minute from the NRHA Village or the show floor with all the coverage NRHA has planned. Page 96

HARDWARE RETAILING | May 2018

Page 86

What’s This Conference About? Every program and event the North American Retail Hardware Association (NRHA) develops is specifically for independent retailers. The association is committed to providing tools and resources to help business owners grow their operations and adapt to a changing marketplace, regardless of wholesale affiliation. The NRHA All-Industry Conference displays this mission on a large scale. NRHA is hosting its annual conference in conjunction with the National Hardware Show® in Las Vegas, May 8-10. The lineup of speakers, panelists and presentations at the free event are all focused on giving retailers information that they can apply to their businesses as soon as they return home. Along with valuable presentations, the conference takes place in conjunction with one of the home improvement industry’s largest product showcases. The National Hardware Show features thousands of industry vendors that are all ready to

introduce the latest products to boost your bottom line and increase your foot traffic. The following guide to the NRHA All-Industry Conference is a preview of what you can expect to see in the NRHA Village, where the conference happens, right outside the show floor in the Main Hall. Plan to attend the three keynote sessions this year and hear from other valuable speakers and retailer panels in between. Find the complete conference schedule on Page 90. For those who aren’t able to attend this year’s event, you can follow all the excitement on social media. Check out the social media guide on Page 96 and get ready to like, comment and share. Find even more information about the conference, the speakers and how to attend (it’s not too late, and retailers attend for free!) at nrhaconference.com.

What’s the Benefit of Attending?

Ideas and Inspiration

Networking

Products

The diverse group of presenters at this year’s conference will provide key insights and actionable takeaways suitable for all retailers. Grab a front-row seat to learn something new from industry experts and retailer panelists. Be sure to be in the NRHA Village to celebrate this year’s all-female Top Gun honorees and attend their panel discussion.

The association strives to create opportunities for retailers to make meaningful connections with each other. Retailers should plan to attend the Independent Retailer Reception for free on Tuesday, May 8 to meet other retailers in a casual environment. The event is exclusively for independent retailers. RSVP at nrhaconference.com/reception.

In between retailer panels and expert speakers, take time to walk the floor of the National Hardware Show® to explore products, talk to vendors and discover something new for your operation. There are thousands of opportunities right on the other side of the convention center doors to find your business’ next top seller or innovative niche.

HARDWARE RETAILING | May 2018

What’s New? This year’s conference features three new components to feed your need for insightful content, actionable industry-specific research and a way to unite with retailers across wholesale affiliations. • Three keynote speakers. That’s right, this year we have three impactful keynote presentations on the NRHA Village stage. Karen E Laine and Mina Starsiak Hawk, stars of HGTV’s “Good Bones;” Jason Ballard, CEO of TreeHouse; and Jules Pieri, CEO of The Grommet will all tell their stories of entrepreneurship. • The latest data. Home Sweet Home: Amazon Edition focuses on the benefit to communities when consumers choose to shop online with independent retail outlets instead of on Amazon. • Social media. Ensure you don’t miss a beat, no matter where you are. Check out the details of where to follow us and how we’re highlighting the event of the year on Page 96.

Snap, Share, See New in the NRHA Village is SharingBox, a collaborative connected photo booth. Grab a friend or make a new one in front of the camera that has a digital frame designed to look like the cover of Hardware Retailing. You’ll get the photos in an email and can share them to social media with just one click. Strike a pose for a chance to be in a future issue of the magazine!

May 2018 | HARDWARE RETAILING

Speakers in the Spotlight NRHA finds speakers who will deliver compelling insights and actionable feedback that you can take home to your business. The conference features three keynote speakers

this year, bolstered by several other expert presenters. Check the conference schedule on Page 90 so you’re on time for each speaker’s presentation and the retailer panels.

Keynote

Jason Ballard

Bill Brunelle

Daniel Duty

Karen E Laine & Mina Starsiak Hawk

Ballard is co-founder and president of TreeHouse, the world’s first eco-conscious home upgrade company. TreeHouse’s third location in Dallas, Texas, is the first energy-positive home improvement retail store, producing more energy than it consumes.

Brunelle is co-founder of Independent We Stand, a movement that supports local businesses. Along with NRHA’s Dan Tratensek, Brunelle will discuss the impact on local communities when consumers choose to shop online with independents instead of on Amazon.

In his former executive role at Target, Duty formed the business development and negotiations team. His presentation will discuss how to engage in collaborative forms of negotiation and successful strategic partnerships to drive growth.

Jules Pieri

Scott Reynolds

Andrea Ridout

Jim Robisch

A decade ago, Pieri co-founded The Grommet, a company that discovers artisans with innovative, problem-solving products and sells their wares on its online platform. Find out how you can spot up-and-coming niches and products.

Small businesses aren’t immune to hacking. Cybersecurity is a large-scale concern that can dramatically impact your operation. Learn from Reynolds, CEO of Member Insurance, how to be proactive against cyberthreats to your business.

Ridout is a former independent retailer who has successfully grown and then sold three home improvement businesses. Hear how a rooster helped her make the right choices to put her hardware store into the best hands.

Robisch, senior partner of home improvement research firm The Farnsworth Group, keeps his eye on the data. In his presentation, he will overview how independents can appeal to a wide range of customers: young and old, DIY and pro.

On their HGTV show “Good Bones,” Laine and Starsiak Hawk revitalize old homes in Indianapolis. Hear their story about creating their renovation business and their passion for their hometown.

Keynote

HARDWARE RETAILING | May 2018

May 2017 | HARDWARE RETAILING

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Keep this schedule on hand as you make your way around the show floor at the National Hardware Show®. Set reminders so you don’t miss the valuable content on the NRHA Village Stage.

Tuesday, May 8 8:45 – 9:00 a.m. NRHA Village Stage Opening 9:30 – 10:15 a.m. Rooster Economics — Understanding Your Flock Can Help You Sell Your Business Speaker: Andrea Ridout, author In her presentation, former independent home retailer Andrea Ridout will share how her own company was challenged and how she turned it around, saved the business and eventually sold it—with a little help from her company’s mascot, George the rooster. Ridout will talk about the cock-a-doodle-dos and cock-a-doodle-don’ts that every business owner needs to know. 10:30 – 11:15 a.m. NRHA Young Retailer Panel Moderator: Scott Wright, NRHA’s Retail Leadership Institute Hear how yesterday’s young retailers have continued to excel in their careers and the industry, and find out what’s on the horizon for those from the two newest classes. 11:30 a.m. – 12:15 p.m. KEYNOTE: Small Business Management: Turning a Hobby Into Something More Speakers: Karen E Laine and Mina Starsiak Hawk, Stars of HGTV’s “Good Bones” Lawyer Karen E Laine and real estate agent Mina Starsiak Hawk started rehabbing houses in Indianapolis in 2007. The mother-daughter duo’s hobby became a business, which then became “Good Bones,” a hit show on HGTV. Their mission is to revitalize Indianapolis, one property at a time. Laine and Starsiak Hawk will share stories of how their passion led to a successful home renovation company and a television show, and how their work has revitalized the neighborhoods around them. 12:15 – 12:45 p.m. Meet and Greet With the Stars of “Good Bones” Speakers: Stars of HGTV’s “Good Bones” Karen E Laine and Mina Starsiak Hawk 1:00 – 1:45 p.m. Reimagine Retail Panel Presented by: The National Hardware Show

HARDWARE RETAILING | May 2018

2:00 – 2:45 p.m. Competing Online: Appealing to Multiple Consumer Generations and Pros Speaker: Jim Robisch, The Farnsworth Group More and more shoppers across all market segments and all generations are going online in pursuit of a better shopping experience. This session will present recently released industry research conducted by The Farnsworth Group and NRHA on what consumers and pros expect online. Learn how often customers are shopping online for home improvement products, how websites are used and how expectations differ among generations and market segments. This session is a must for anyone addressing the challenges of going online. 3:00 – 3:45 p.m. KEYNOTE: How to Discover the Next Big Thing Speaker: Jules Pieri, Co-founder and CEO of The Grommet The Grommet is a product discovery platform that supports makers and launches innovative products—but how does The Grommet discover them? Since 2008, The Grommet has launched more than 2,800 products in 16 categories, many of which have become household names, including FitBit, GoldieBlox, IdeaPaint, OtterBox, PopSockets and others. With Ace Hardware’s acquisition of a majority stake in The Grommet in October 2017, Pieri will share how The Grommet succeeds and how being part of the Ace family will help to further change product discovery across the U.S. 4:00 – 4:45 p.m. Collaborating to Win: New Approaches to Retailer-Supplier Engagement Speaker: Daniel Duty, Founder and CEO of Conlego Retail market dynamics are causing increased tension between retailers and their suppliers as both look for ways to innovate, while cutting costs and growing profit. Learn from Daniel Duty, who is a former Target executive, how to engage in collaborative forms of negotiation, successful strategic partnerships and joint business planning to drive growth and success. 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.

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Wednesday, May 9 9:00 – 9:45 a.m. How to Address Cybersecurity as a Small Business Speaker: Scott Reynolds, CEO of Member Insurance According to Small Business Trends, 43 percent of cyberattacks target small businesses. Cyberattacks are on the rise, and the hackers continue to get bolder and more creative. The cost of being hacked can be substantial and can disrupt your operation. What should you do? Scott Reynolds, CEO of Member Insurance, will discuss where attacks have come from recently and where they may be headed. He will outline measures you should be taking to avoid being a victim and how to limit the damage from an attack. 10:00 – 10:45 a.m. KEYNOTE: How TreeHouse Grew Its Roots and Where It’s Headed Speaker: TreeHouse Co-founder and CEO, Jason Ballard Jason Ballard, co-founder and president of TreeHouse, the world’s first eco-conscious home upgrade company, will offer a glimpse into what he sees as the “Future of the Home.” In his presentation, Ballard will discuss how we can build healthier, more sustainable and more beautiful spaces while keeping an eye on our carbon footprints. Learn how you too can build sustainably and make a difference.

11:00 – 11:45 a.m. Home Sweet Home: Amazon Edition Speakers: Bill Brunelle, Independent We Stand and Dan Tratensek, NRHA In this update to the initial Home Sweet Home Study, launched in 2015, Bill Brunelle and Dan Tratensek explore the impact on local communities when consumers choose to purchase home improvement products online through local businesses instead of on Amazon. Discover how much money remains in a community when consumers choose bricks over clicks. 1:00 – 1:45 p.m. NRHA Top Gun Awards Presented by: NRHA and Hardware Retailing Moderator: Melanie Moul, NRHA Each year, NRHA honors some of the industry’s top performers with the Top Gun Award. This year, join us for the first-ever all-female group of honorees and hear how these retailers are innovating their businesses to continually rise to the top. 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.

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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 and Decorating Retailers Association 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 Tratensek, publisher, Hardware Retailing and executive vice president, NRHA For more than 50 years, Hardware Retailing has been highlighting 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. This event is invite-only.

Thursday, May 10 9:00 – 9:45 a.m. Last Chance Look From the Show Floor: NRHA Panel Moderator: NRHA Find out what caught the eyes of show attendees from this panel of showgoers for one more opportunity to experience the 2018 National Hardware Show. 10:00 – 10:45 a.m. Inside NRHA’s Social Media Strategy at Events Presented by: Hilary Welter and Renee Changnon, NRHA 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 Presentation times and topics are subject to change. Get the latest updates by connecting with NRHA on Facebook, Twitter and Instagram.

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Stay in the Know

This year at the NRHA All-Industry Conference and the National Hardware Show®, NRHA is making it so nothing goes unshared. Whether you’re in the seat next to us or enjoying the excitement from your store, be sure you’re following along on social media to get the scoop in the moment. NRHA and Hardware Retailing will keep you in the loop on all the action at the Las Vegas Convention Center on Facebook, Instagram and Twitter. From behind-the-scenes sneak peeks to front-row seats to the event’s biggest moments, we’ve got you covered.

@NorthAmericanRetailHardwareAssociation @nrha_official @nrha_official @HardwareRetailing @hardwareretail Be sure to follow #NRHAConference and #NHShow to see all the highlights.

Tune in for opportunities to win NRHA swag!

Ideas and Inspiration We have a solid lineup this year of expert speakers and retailer panelists who are eager to share their perspectives on the industry to help you better your operation. We’ll capture the highlights, but check the schedule on Page 90 to make sure you don’t miss a moment.

Your Name Las Vegas Convention Center

Social Cue For insights from our keynotes all year long, check out @TheGrommet, @TreeHouseOnline and @TwoChicksIndy on Twitter.

Networking The NRHA Village is where you are sure to find a retailer peer to swap stories and best practices. Stay tuned to NRHA’s Instagram Stories to see inside the Village, including highlights from the Independent Retailer Reception on Tuesday, May 8 at 5 p.m. Social Cue When you’re in the NRHA Village, grab a friend and check out the SharingBox photo booth. Your selfie could end up in a future issue of Hardware Retailing!

1,000 likes Your Name Add your comment here! #NRHAConference #HardwareRetailing

Products We are always on the lookout for the latest items to hit the market that could help your business. Our social media team will be making its way around the National Hardware Show floor to check out the activity and see what’s new, what’s cool and what’s about to break through. Social Cue Tune in daily for our coverage of the coolest products we find on the show floor. Use and follow #productpicks to share what you find and see what retailers on the floor love.

HARDWARE RETAILING | May 2018

The Show Is On With a new logo and new tagline—the tool that powers your business—the National Hardware Show® is bringing a variety of updates this year. We’ve compiled a preview here of the new elements that you can’t miss. Check out #EvolvingNHS or visit nationalhardwareshow.com for more information.

Exciting Experiences

Reimagine Retail 2.0

The National Hardware Show knows the trends that are impacting your business, and this year, you will find new ways to explore everything your customers are asking for.

The Reimagine Retail program is back, with a technological twist. All entries for this year’s program were from independent home improvement retailers who would use the award toward technology improvements for their business.

• Get smart. Featured Areas of the show floor are always at the top of the list for attendees. This year, the Smart Home Virtual Reality Experience will show users how smart home products integrate throughout a home in each different room. • Go outside. After you’ve experienced a virtual home, it’s probably time for some sunshine. The new Ultimate Backyard, sponsored by Adams USA, shows attendees what a real backyard can look like with the ultimate setup. • Think tiny. Operation Tiny Home is hosting a daylong workshop on Tuesday, May 8 at the National Hardware Show. The workshop will end with a complete tiny home on-site. You must register to participate. Military veterans can participate for free. • Dream big. Prior to the show floor opening, on Monday, May 7, the Home Shopping Network is hosting the American Dreams Academy for people who are looking for ways to grow their businesses. The free event features one-hour sessions throughout the day on lessons such as licensing requirements, marketing and quality assurance. You must preregister for each session you wish to attend.

“We are thrilled to once again present $100,000 to a small business owner through Reimagine Retail,” says Rich Russo, vice president of the National Hardware Show. “Our goal is to empower retailers to decide the best way forward for their business and to support them every step of the way as they make their retail vision a reality.” Submissions could include improvements to a variety of business areas, including inventory management systems; checkout process; e-commerce platforms; training software; customer relationship management systems; marketing, advertising and public relations; or the in-store experience. Five finalists will take the NRHA Village stage to talk about their projects on Tuesday, May 8 at 1 p.m., and the winner will be announced on Wednesday, May 9 at 2 p.m. Last year, Robert Lau, owner of Caribou Jack’s Trading Co. in Soda Springs, Idaho, won $100,000 to invest in business improvements. Read his story at TheRedT.com/caribou-jacks. Stay tuned to a future issue of Hardware Retailing to find out more about this year’s award recipient and their plans.

May 2018 | HARDWARE RETAILING

Facing Forward

Amanda Fancy

Find Out How These Women Became Industry Top Guns

he North American Retail Hardware Association (NRHA) has celebrated independent home improvement retailers for a century. For the last 11 years, NRHA and Hardware Retailing magazine have honored high-achieving retailers through the Top Guns program. These remarkable business operators often lend a voice to national conversations and extend a hand to their neighbors. This year’s Top Guns are the first all-female group in the program’s history. While the home improvement industry may still be predominantly male, many women own and operate successful businesses. NRHA highlights these four women who are moving the industry forward.

Jamie Gentner

• Amanda Fancy, Gow’s Home Hardware After buying the family business seven years ago, Amanda Fancy has continued to grow the operation despite its somewhat limited market. By using proactive marketing and merchandising strategies, she has positioned Gow’s Home Hardware as one of the industry’s top retailers.

• Jamie Gentner, Center Hardware & Supply Center Hardware & Supply serves mostly commercial and industrial customers in downtown San Francisco. In that environment, Jamie Gentner sees unique challenges with the decline in trade professionals. She is passionate about the industry working toward a solution.

Megan Menzer

• Megan Menzer, Newton’s True Value Megan Menzer has looked for ways she can contribute outside her store. She has taken active leadership roles in organizations within her community and industry. Today, Megan is serving as chairman of the NRHA board and has emerged as a high-profile advocate for independent businesses.

• Angela Merritt, Ederer’s Do it Best Angela Merritt did not anticipate a career in hardware, but 19 years ago, she took on the role of manager of her parents’ new business. Since then, she has helped the operation grow to three locations in rural Wisconsin, where she is leading and teaching the next generation of farm owners.

HARDWARE RETAILING | May 2018

Angela Merritt

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GROWTH

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GOALS MOTIVATED

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May 2018 | HARDWARE RETAILING

Amanda Fancy Gow’s Home Hardware • Bridgewater, Nova Scotia 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? Amanda Fancy (AF): Gow’s Home Hardware has been a

as far as equality goes. In 1848, a woman would have never even been given the opportunity to work at the store, never mind own it!

family operation in Bridgewater, Nova Scotia, since 1848, and the store has been in four locations. The last move was in 1989 when it moved from a 15,000-square-foot building to its current location, a 33,500-square-foot store. I began working as a cashier at Gow’s as a teenager. I left for a short time to attend business college, and upon my return, I worked in the accounting department and later became the systems manager. I worked closely with my uncle, Peter Gow, for many years, learning the ropes of the business and going to markets and buying shows. I was trusted and knowledgeable and ideally suited to continue the Gow family legacy. In 2012, my uncle retired, and he sold the business to me, a loyal, then-32-year-old enthusiastic employee.

HR: What unique challenges do you think independent retailers face in today’s market? AF: There are several important components to this question.

HR: When did you decide this is what you wanted to do? AF: My interest was piqued in hardware when I started as a part-time cashier 23 years ago. My uncle encouraged me to continue my education in business to advance my role, if I chose to do so. As time moved forward, my role grew, and the opportunity presented itself to take over in 2012. I was eager to make my mark as an independent retailer and continue the Gow’s legacy into its next chapter. Hardware has always been my passion. I can’t imagine doing anything else with my life. There have been so many great women in the Gow family who have either worked directly in the business or behind the scenes, including Peter’s aunt, Jean Fielding, and Peter’s sister, Pat Gow. However, given the era when they worked at the store, they never seemed to be recognized for their contributions to the longevity of the family business. When I purchased the business, the change in leadership at Gow’s marked keeping up with the times,

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HARDWARE RETAILING | May 2018

For one, we have 60 people on staff who have over 600 years of combined retail experience in many fields, and maintaining that level of knowledge and customer service for our customers is difficult. Staff are the backbone of our business, but it’s a struggle to fill the void left when someone retires. Also, retail has changed dramatically over the last few years. In the past, newspaper and radio, along with our strong promotional schedule and brand recognition, positioned us very well in the market. Today, Amazon and the big-box stores are constantly on our heels, and we are collectively trying to individually increase our market share. Our customers have many choices, and the key is to make us their No. 1 choice. It’s all in how you brand yourself in the retail market. Our top priority is to target all customer groups and analyze where the gaps are to target a specific group. This strategy means making sure we have an accurate ideal customer profile so when we develop something, individuals and groups of customers know we are speaking directly to them. Our goal is to define and target our customers at the right time with the right messages. At Gow’s, we are always thinking strategically in everything we do to breathe life into our marketing strategies. We use humorous, promotional and informative types of marketing techniques. We are looking closely at our company’s overall needs and deciding how we can leverage our marketing strategies to continue to grow our customer base.

HR: What strategies have you used recently? AF: We’ve changed our marketing strategy dramatically over the last seven years. Bridgewater is about 7,500 people, but our trading area is about 42,000 people.

Topping the Category Gow’s Home Hardware has been among Home Hardware’s top paint dealers in Canada for more than two decades.

“In today’s market, next week is unpredictable, however, the key is to continue to be able to change and adapt with the challenges that present themselves.”

May 2018 | HARDWARE RETAILING

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Our customers also span several generations. We serve grandparents and parents who are listening to the radio and looking at the local paper, but their kids and grandkids are on social media. We used to primarily use newspaper and radio, but we’ve cut back, especially on radio and even with the local paper. We are using a lot of social media. Right now, Facebook is No. 1, with about 5,000 likes on our page. We’re also constantly trying to grow our following on Instagram and Twitter. One program we have maintained on radio is a local fishing show, called The First Cast. It’s something people in the community know about us. We are known as a fishing destination. We work with a local producer on a biweekly basis to produce videos for Facebook and YouTube. Videos promote a different department throughout the store. We’re always on social media, including YouTube, and videos have been a strong focus for us over the last year to capture a larger audience. We invested a lot initially to try to build engagement, and we’ve seen strong results.

HR: What are some key opportunities independent retailers have in the short term? AF: As an independent retailer in a rural setting, our skill set isn’t the same as that of a big box

The staff at Gow’s Home Hardware is a close-knit team. They enjoy engaging with customers and spending time together at store events.

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or our online competitors. For us, our image is everything, and branding and promoting ourselves as the local choice for our customers is one of our main focuses. We have worked very hard to promote buying local and ensuring we have the products our customers want so they don’t look elsewhere. Part of our strategy is to have on-hand products that you can’t find anywhere else. Whether that is the latest fad, advertised Home Hardware-exclusive products or local vendors selling their products in our store, we do our best to draw our customers into our store by offering one-stop service. We want customers to be able to get specialized service in every department.

HR: How do you connect with local vendors? AF: Sometimes vendors approach us and sometimes products come in through customer recommendations. We have a lot of small businesses in our area, and we do our best to promote as many as we can. Once a year in November, we have a customer appreciation night that is tax free. We host local vendors at the store during that event. Even if we don’t carry their product in the store, we are able to highlight them and give them exposure.

HR: What advice would you give to someone considering getting started in the independent industry? AF: The independent hardware industry is not for the faint at heart. My best advice is to never lose focus of your goals. I won’t lie, there are many challenging days, which is why it’s so important to not allow yourself to deviate from the end result you are striving for. You can’t lose focus! For me, that means on the bad days, taking a deep breath and looking at the big picture. I remember that tomorrow is a new day, and it’s important to start each day with a fresh outlook. I try to encourage my staff in the same way. All staff members are encouraged to give their thoughts and ideas. We’re a team, and everyone contributes in a different way. We make up this family called Gow’s. We maintain a staff Facebook page, a closed group that everyone belongs to. It’s a good way to not only get information out to everyone, but we also encourage staff there. We also host staff barbecues monthly to continue to keep staff engaged. We offer paid birthdays off and full benefits, and we match pension for our full-time staff. Being a seven-day retail operation, those are some things you don’t get in other places.

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“The key to success is to stay focused on changing with the market because those who don’t get left behind.

”

HR: Where do you see your business in the next five years to 10 years? AF: We have plans to transition into furniture and appliances in 2019. With Sears out of the market, it’s a huge opportunity for us. We are in the planning stages of a 54,000-square-foot space to accommodate that new area of our business. One of the key components to our future success is marketing ourselves as the one-stop shop for our customers. Continuing to retain staff with experience and offering exceptional customer service gives us an edge over our big-box and online competitors. What that looks like in five or 10 years? That’s yet to be determined. In today’s market, next week is unpredictable, however, the key is to continue to be able to change and adapt with the challenges that present themselves.

HR: What do you think the industry will look like as a whole in five to 10 years? AF: I think our future is very optimistic in the Canadian landscape as a whole. Things are

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changing so quickly, so it’s difficult to pinpoint what the industry will look like that far out. The key to success is to stay focused on changing with the market because those who don’t get left behind. Sears Canada is a perfect example of that. (The department store chain closed operations in Canada in January.) Our customer base is 80 percent DIY consumer, and as our base continues to transition more toward millennials, the need is greater than ever to be able to offer the skills and knowledge to our customers who need DIY advice. That forward-thinking was part of the impetus for the change of Home Hardware’s national advertising program last year to the tagline “Do it yourself doesn’t mean do it alone. Let me show you how! Here’s how.”

HR: Can you talk about the value and importance you place in furthering your education and networking with other independent retailers? AF: Networking with other independent retailers gives us a huge advantage over our competition. Being with other retailers is huge because every good idea is borrowed. If you can take one idea from a brainstorming session and go back and implement it, you can often see positive results right away. Continuing to develop our team is also key. Home Hardware and NRHA offer many tools to assist in this area. It’s important that we offer training and resources to everyone so our customers experience consistent service no matter when they shop. People have come to expect that from us.

Jamie Gentner Center Hardware & Supply • San Francisco Hardware Retailing (HR): Can you give us a little background on your company and how you got involved in the business? Jamie Gentner (JG): Center Hardware has been operating in San Francisco since 1880, so it’s been reinvented several times to change with the city. It began as a hardware and glass shop, and then eventually lost the glass to concentrate more on hardware. When my father bought the business and merged it with the San Francisco neighborhood store (opened by his great uncle after the 1906 earthquake), he shifted Center Hardware’s focus to commercial and industrial hardware supplies. He concentrated on municipalities, facility engineers, contractors and trade professionals while maintaining a healthy inventory for walk-ins. Those customers include makers, DIYers, artists, students, homeowners and renters, local businesses, restaurants and designers.

HR: When did you decide this is what you wanted to do? JG: I started working at the store when I was about 11, but during high school I chose to work at clothing retailer the Gap, and then during college I worked at Kelly-Moore. I eventually ended up with a degree in copy editing and print journalism. I moved back to San Francisco and asked to work at the store while I was job hunting. During that time, I realized I’ve always been proud of my father’s work, and I loved the store, its customers and being in it. So I decided to stay on full time; I was 23.

HR: What challenges does your business face in an urban environment? JG: Crime is always a challenge. Recently, we had our propane cage broken into and 16 tanks were stolen. San Francisco’s unemployment rate is 2.6 percent right now with unprecedented housing costs, so recruiting new people to our team is also a real challenge here. It can be difficult to compete with the endless perks that some of the tech companies provide. We aren’t a direct competitor for

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a software engineer, obviously, but when there’s gossip about work perks, people listen, and they want those things, too. We have high rent, high wages, higher costs of doing business, but we still have to offer competitive prices. We can’t charge $100 for a hammer that sells across the country for $20. We work tirelessly to make it up in volume.

HR: What training initiatives have you invested in? JG: We traditionally have people on staff who have experience in the trades. Not always, but at least a few of them. They can help supplement knowledge on our salesfloor for people who haven’t worked with the material. We try to have a staff with experience actually using our products, and we’ll look for that when we’re recruiting. For other training, we use videos that Ace provides and videos from NRHA. Everyone needs to leverage any opportunity to strengthen their store, and if you aren’t already, you should take the time to dig into the well of resources that wholesalers and NRHA provide. We’ll also bring in vendors to do daylong training. The vendors can show our associates how the products work and detail their benefits. Sometimes, we’re able to host all-day plumbing and electrical training through the Ace Dealer network, which is hands-on training. The trainees who participate in those events actually run a complete circuit in between studs and get a lightbulb working. The man who led a recent class was from a local community college, but it’s difficult to find people who are willing or know how to do that. As the trades diminish, those people who have that knowledge and those skills don’t have as much time to come in and do demos. Experience and knowledge is something we look for, but it’s not always the first thing. If we find someone who is totally jazzed and excited about retail, we would go for that, because that’s hard to find now.

“Everyone needs to leverage any opportunity to strengthen their store, and if you aren’t already, you should take the time to dig into the well of resources that wholesalers and NRHA provide.”

Engage the Trades Center Hardware & Supply hosted a fundraising event at the store for the trade program at its local high school. The inaugural event raised nearly $5,000. Photo by Scott R. Kline

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HR: Can you overview the move your business went through recently? JG: In 2016, SocketSite, a San Francisco real estate trends website, reported without fact-checking that Center Hardware was closing its doors for good because housing development plans were submitted for our site in San Francisco. Although we were in the process of finding a new location, we weren’t closing. We needed at least 20,000 square feet in a tiny city with parking and access. It seemed impossible, but our customers and other businesses started calling us with ideas for where we should go, telling us about properties, feeding us ideas and connections. We have a great relationship with our landlord, and even though we looked at several sites in San Francisco, we ended up in a fantastic location with the same landlord. We began the prep of moving a store that was 140 years old from an old steel warehouse it had lived in for 30 years. We had 70,000 SKUs in about 16,000 square feet. After many months working with paper and ideas, we took our amazing crew of people, called in every favor, apologized in advance to everyone and closed for the four business days between Christmas and New Year’s in 2016 and were able to open for customers at the new location on Jan. 3, 2017. Everything that could go wrong essentially did. Construction was delayed. Some of our staff worked 52 days straight. Things broke. Fixtures were missing. Merchandisers set our sections wrong. New critical inventory was delayed from storms. A terrible cold ripped through the staff.

The new paint machines didn’t work properly. We’d been in a drought, so no one had any idea the roof was going to leak in a million places. Our customers were calling wanting to know why we were closed. It became a public relations nightmare fighting rumors that we were no longer in business. It was a Herculean effort by many and because of it, we can all be proud of having a store with an unmatched depth of inventory, that’s bright, organized and beautiful. It was a tremendous feat that’s rewarded daily by our commitment to and from our customers, trust earned from our vendors and a whole bright future to figure out what’s next.

HR: What growth opportunities are you looking into? JG: We spent the last year watching, listening and learning. It gave us a tremendous amount of information to reinvent our outside sales department. We have reconnected with a number of groups in San Francisco to have these conversations about why they should invest with us and not Grainger or HD Supply. We are bringing in tool lines that increase our foot traffic and credibility. Last year we became the only full-line Festool dealer in San Francisco, and we’re proud to be chosen this year as the first STIHL dealer in the city. We carry the full line. With our new location, we have an amazing amount of space outside, so we are working with our neighborhood and often host makers, pop-up shops, food trucks, tool demos and DIY projects.

Center Hardware & Supply recently moved locations in downtown San Francisco. In four days, the staff helped move 70,000 SKUs.

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boxes and the independents and NRHA—needs to be in the same room and agree to the same message. There needs to be a message targeted to parents that takes the shame away from choosing the trades as a career path. It’s an important conversation, and all of us need to participate in it. Everyone needs to find their comfort level. It’s critical at this point, as far as doing your part. As a first step, we’re implementing tool-buying programs for people who have just completed trade programs. We get a customer, and they get discounted products. I would encourage every store to find what the version of a trade program is in their community. Whether it’s a city program, a trade school, a union, whoever it is that still supports skilled labor and trades. Partner with those groups, not necessarily financially, but let them know you support them and want to help. It’s harder and harder to be independent, but so many owners I know connect to their cities in such a critical way and that’s inspiring. The event at Center Hardware & Supply that raised money for the trade program at the local high school brought in 150 attendees.

“It’s harder and harder to

be independent, but so many owners I know connect to their cities in such a critical way and that’s inspiring.

”

HR: What unique challenges do you think independent retailers face in today’s market? JG: The stock answers for all of us have to do with online competition, securing inventory that can provide healthy margins and creating a workplace that inspires people to choose retail in 2018. Those are all real and massive challenges. It is increasingly difficult to target the trades as customers, and as that workforce diminishes, who will replace them? Home Depot, Lowe’s and others are bringing solutions to the table, but the skilled labor shortage is a national stigma that we all should be working together to address. What’s the solution to the diminishing trade workforce? How can independent retailers help bring them back? I really think we need to stop talking about it on a micro level. Everyone needs to come together. The entire industry—all the big

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HR: Can you talk about the value and importance you place in furthering your education and networking with other independent retailers? JG: I learn from other retailers on a weekly basis and I am so thankful for it. Center Hardware is stronger because of it. We make sure our staff is always learning by engaging our vendors as teachers for product knowledge and listening to staff feedback. It’s important to get outside feedback, too, and check your ego at the door. We have found valuable ideas from people outside the hardware channel because it’s a fresh point of view. We also got recommendations from other independent stores to find other types of products we should carry. Products that relate to hardware, but are locally made. I’ve also looked at places outside the industry for hiring. I’ve talked to other retailers in town to find out how they are recruiting people to work in their shops. A well-run business can look like anything. I’ve also gotten a lot of information using direct messages on Instagram. On social media, people respond immediately. If I can’t get access to a higher up person, I’ll reach out to the company in a direct message on Instagram, and every time, I’ve gotten what I needed. I think retailers everywhere can find those opportunities. It’s rare that you are a lone wolf in town. If you are isolated, you can still build that network. You can take part of a day once a month and go have lunch with someone. Connect yourself to other people.

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Megan Menzer Newton’s True Value • 2 Stores, Southeast Kansas 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? Megan Menzer (MM): Newton’s True Value was founded by my great-grandparents Grace and Earl Newton in 1924. They later passed the business on to their daughter, Nellie, and her husband, Albert, my grandparents. My dad took over the business in the late 1970s. I had the opportunity to work with my great-grandmother and my grandmother in the store. We were probably one of the first stores to computerize in our area. We computerized in 1991 when I was in high school. I went to computer classes with my grandma in Kansas City to do training. Today, we have two locations. Both stores sell hardware and appliances and feature large gift departments. The original business is in four old buildings downtown. The second location, which we opened in 2012, is a Destination True Value-style store. My family also operates a plumbing, electrical and HVAC company. Working at the store was always my first career choice. Growing up, my sisters and I would work part time down at the store. I would help my grandma with the business administration side of it. I remember doing books at her house. I would help her do payroll and write ledgers. I continued working part time at the store throughout high school and college.

HR: What unique challenges do you think independent retailers face in today’s market? In your area of the country? MM: The consumer is changing every day, and trends don’t seem to last as long. What’s hot today isn’t hot tomorrow. So there’s a balance in determining how much inventory to carry and what products to carry. The consumer’s shopping habits are also completely different than they used to be. We used to have a lot of loyal customers, and now it’s more about convenience. They’re on their phones shopping instead of coming into the store.

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Saturdays used to be busy, but now kids have activities that the whole family is involved in. Instead of them shopping or being home fertilizing their lawn, they’re at the soccer game. So, one of our challenges is getting customers into the store and getting them engaged. Another challenge is with employees and finding knowledgeable people who want to work. It’s a huge challenge we never had in the past. Here in rural Kansas, there has been a decline in population that has really hurt us in the last five years. We had an Amazon distribution center and a hospital close, so those people left the area.

HR: What are immediate solutions to those challenges? MM: We’re doing an inventory analysis and looking at resetting our store. I don’t think a 17,000-square-foot store is a necessity anymore. If there are other retailers out there who are looking to expand, I would recommend not having as large as a store. It may be beneficial to use that extra space for storage. Buy online, pickup in store is critical in today’s shopping experience.

HR: Independent retailers say one of their primary appeals is convenience, but your experience suggests the definition of convenience has changed. How should retailers think differently about convenience? MM: With the changes to the entire shopping experience, convenience is a whole new dynamic. People need things immediately, and since they have the option to order online, and in some cases get same-day delivery, they won’t wait until you open your store in the morning. I think it’s important for independent retailers to be available to their customers. Give your customers your cellphone numbers, so if a waterline breaks, they can call you and you can be their immediate solution. I’m also interested in putting lockers in to give customers an option to pick up purchases after hours.

Getting Involved Menzer is active in her community, serving on various boards and on local business groups. She says engagement helps build business.

“The more competent you and your employees are, the more you will sell. And you will be able to pass on that knowledge to your customers.”

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That would help pick up sales, but we’re figuring out where to install them and how to manage that.

HR: What do you think the industry will look in five to 10 years? MM: That’s a million-dollar question.

HR: What are some of the key opportunities that you feel independent retailers will have in the short term? MM: Connecting with your communities in new

If I was asked that question 10 years ago, it would have been a lot easier to answer. I think in 10 years, the independent hardware store will look more like a convenience store. There will be smaller salesfloors, fewer staff members. We’ll be offering online shopping and expanded services, like deliveries. The change in technology will the biggest change in five years. It’s so hard to pinpoint because it’s so versatile. It’s really hard to say where things will go. I think we will definitely need to evolve or we will not succeed. Implementing and growing with technology is definitely a big demand on our area, so I hired a marketing person. We’re pretty small, but we needed it for our Facebook presence, and we’re also on Instagram now. We’re also changing up our website by putting our in-store inventory online. We’re making those changes right now trying to enhance our online presence. All of these changes we’re making now go back to how the idea of convenience has changed, because we’re not open 24/7.

and unique ways. We are focused on creating connections with customers and engaging with the community, but even that has changed. Sponsoring Little League teams used to mean something to customers, but it doesn’t really matter that much anymore. We have family-oriented events, like bringing in Disney characters Elsa and Moana. We host Pinterest project weekends to bring people in. It’s also important to be out in your community, serving on chambers and committees and getting to know people. I think people shop at places because they know the associates. That’s an advantage we have over the big boxes. It goes back to knowing who your consumer is and creating personal relationships. We have opportunities to create sales in our communities at the events we’re already going to, as well. Talking business with the other parents at the baseball game, that’s an opportunity.

HR: Why was it important to you to get involved in the local organizations and with NRHA? MM: I’m involved in a lot of local groups, and

The original Newton’s True Value spans four buildings in downtown Cherryvale, Kansas.

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it’s because I want to support my community. I’m on the alumni board for my high school, and I’m on an E-Community board that supports entrepreneurs. I’m involved in our chamber of commerce and our Main Street organization. In the past, I’ve coached Little League, and I served on the church board and as a Boy Scout leader. When you’re in a small town, that’s what you do. I didn’t pursue it just because I’m a business owner in a small town. It’s just who I am. I’ve also connected with other business owners locally to create partnerships and cross-promote. There is a local gun store in town, and we’ve worked with them to get our name on the back of their shirts. There’s also a local jewelry store that we’re trying to find a way to partner with. It’s about showing you support each other locally. For retailers who are looking to get involved at the local level, I recommend starting with your chamber. There are a lot of activities that the chamber of commerce does. You can pick something that is a hobby or something that you enjoy. They’re always looking for volunteers.

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Menzer has been an active member of NRHA and a vocal proponent for independent retailing since being named Young Retailer of the Year in 2005.

“One of the largest benefits of training and networking with other retailers is the knowledge you gain.

”

If you want to get involved with other businesses, I say start small. Find something you have a passion for and get involved with other business leaders. Get your name out there. I think it’s very important for a business owner to be involved in organizations. Even if you start doing something because it’s something you’re interested in, all of those people you meet help you make connections in your community. If you make those connections, they start shopping with you and they will support your business. On the national level with NRHA, I always attended conferences because I think education is so important. The more educated you are in any subject, the more you can help the consumer. I’ve always really enjoyed the conference speakers and networking with other people.

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I received the Young Retailer of the Year award in 2005, and since then, I’ve kept getting more involved with the association. I was elected to the board of directors in 2009, and now I’m in my last few months of serving as chairman.

HR: Can you talk about the value and importance you place in furthering your education and networking with other independent retailers? MM: One of the largest benefits of training and networking with other retailers is the knowledge you gain. The more competent you and your employees are, the more you will sell. And you will be able to pass on that knowledge to your customers, which will result in repeat customers because they will leave the store saying, “They know what they’re talking about.” The education portion is huge. Through NRHA, the networking part of it has also been phenomenal for me. I’ve become such good friends with other retailers, and we spend a lot of time bouncing ideas off each other. We talk about everything. When we opened our second location, it was a new experience for me. I had a retailer friend tell me he would work with me for a month to help us get the store off the ground. The information that I’ve gotten from networking, meeting people and asking questions is invaluable.

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Angela Merritt Ederer’s Do it Best • 3 Stores, Southern Wisconsin 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? Angela Merritt (AM): The hardware stores are an offshoot of Ederer Dairy Supply. My parents, Don and Jan Ederer, started the dairy business in 1973. When I was young, the business was actually in our house. We were all accustomed to having customers come to the house to get dairy parts. When I was in college, they bought an old lumberyard to operate the dairy in. From a young age, I answered the phone and recorded radio ads for the dairy. My parents joined HWI in 1997 when I was in college. (HWI became Do it Best in 1998 when it merged with regional co-op Our Own Hardware.) At the dairy, they install and service all the dairy equipment, and it made sense at the time to pair up with HWI. Initially, they didn’t think they would have a hardware store. Then in 1999, they bought land in Plain, Wisconsin, and built a 15,000-square-foot hardware store. Then in 2000, my parents bought out another dairy equipment dealer in Blanchardville. The town didn’t have a local hardware store, so we set up a space for the dairy equipment business and also added hardware to the mix. In 2012, we opened another store in Dodgeville. Initially, that location was going to be strictly dairy supplies, when the existing local hardware store closed, we expanded into hardware there, too. In college, I studied retail merchandising and management, and I always thought I would work with soft goods, like clothing. But one year out of college, I became the manager of Ederer’s Do it Best in Plain. It wasn’t my first direction, but 19 years later, it’s definitely where I belong.

HR: How do the businesses complement each other? AM: We supply the dairy with all kinds of equipment, like plumbing, electrical, fasteners and tools. The dairy staff buys things from my store, and we special order items for them.

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The same is true on my side. Some of our customers drive an hour to get dairy parts and supplies they can’t find other places. They also utilize our hardware store. In southern Wisconsin, Ederer Dairy Supply is one of the bigger dairy suppliers. There are a few smaller dairy suppliers, but we bought up a lot of the competition.

HR: When did you decide this is what you wanted to do? AM: I worked in management for Lands’ End in Minneapolis right after college. It was a great company to work for, and I still use many of the retail tools I learned there. But, being from a big family, I felt like I was missing out on too many big events back home. About the time I was relocating to southern Wisconsin, my parents had started on the construction process on the Plain store, and they needed a manager for the hardware division. Initially, the excitement of filling and designing a new store was pretty great, but then reality set in, and I had to hire people, fire people, maintain prices, manage inventory, plan marketing. It was overwhelming at first, and I was young. I had to prove to a lot of customers that I could help them and that they didn’t need the “guys in the back.” I soon found out I really enjoyed helping people with their home improvement problems. It’s very rewarding. Now, I manage three hardware stores. We’re in the process of splitting the dairy and the hardware businesses. By the end of this year, I’ll be my own LLC and I’ll own the stores.

HR: What unique challenges do you think independent retailers face in today’s market? In your area? AM: Staffing is one of the toughest areas. Attracting and keeping good employees is challenging. I have been very fortunate and have amazing staff at each of my three stores, but I think it will be more challenging in the years to come. For us, word of mouth is the best place to get anyone. I even post openings on my personal Facebook page because I can get more quality candidates through recommendations. Obviously, in a small community

“An increasing number of customers are choosing to spend locally as they see the overall benefit to the community. It’s our job to drive that message year round.”

Next-Generation Farmers As her customer base shifts to millennials taking over family farms, Angela has refocused her service model to address next-gen needs. May 2018 | HARDWARE RETAILING

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everybody tends to know everybody else. You can get a pretty accurate reference just going to the local fish fry. I really want my employees to enjoy coming to work. I often shop in stores and find myself face to face with an individual who just isn’t comfortable working retail. I can train my staff to understand and sell the hardware we stock, but I have to hire the right personality. Young people today prefer to communicate with written words, through text messages and on Snapchat. Verbal communication skills are harder to come by, and I think that’s something that is very useful in a retail environment.

HR: What are some key opportunities independent retailers have in the short term? AM: Our area is mostly farmland, and we’re now serving the next generation, the children who have taken over. They need a lot more direction than the previous generation when it comes to fixing things,

“Personal relationships matter,

and our customers need to trust us. In order to get to that point, we’re constantly engaging and asking questions. That all builds rapport with customers.

”

and serving them is different from serving their parents or grandparents. They come in with their phones and show us pictures of what they want to do. They need our help picking out the items they need. This generation does considerably more research about the project, including brands and pictures of products and final projects. Many new homeowners are very “green” when it comes to home maintenance. They are willing to learn, and our relationship with our customers allows us to spend time with them and walk them through the project. We know 90 percent of our customers by their first names. Personal relationships matter, and our customers need to trust us. In order to get to that point, we’re constantly engaging and asking questions. My staff asks customers how the painting project turned out or if the new puppy likes the dog food we sold them. That all builds rapport with customers. It’s a gift when they come through your door. Use their time well when they’re in the store. I think the shop small movement the last few years has also been a great opportunity to really define our stores as local “mom and pops.” An increasing number of customers are choosing to spend locally as they see the overall benefit to the community. It’s our job to drive that message year round, not just the Saturday after Thanksgiving.

HR: What do you think the industry will look in five to 10 years? AM: I think you will see more small-town stores close or shift into general store models that sell everything from beer to nails. As retailers, we need to sell what our customers want to buy,

Angela Merritt joined the family business to manage Ederer’s Do it Best, which her parents opened as a supplement to their dairy supplies business. She is now the general manager of three locations.

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Our two most effective advertising methods are the coupon books our co-op puts out and our radio ads. The coupon book tends to be easier to measure because the customers bring the coupons into the store with them. We get a lot of positive feedback about the radio ads, too. I think many customers feel like they’ve grown up listening to me. They come into the store and say, “I heard you on the radio!” We have a loyalty program through our co-op, but because it’s fairly new, we haven’t gathered a lot of customer data. We are getting a really high return rate on our monthly rewards, and I think that will grow as we move through spring and summer.

HR: Where do you see your business in the next five years to 10 years? AM: Our model is very agriculture-focused. Many

One of the appeals Ederer’s Do it Best offers its customers in rural Wisconsin is the staff’s knowledge of farm life and the wide variety of unique products.

not what we think we should sell, and that is constantly changing. I am grateful that my co-op lets me be my own store, really a true independent. I can stock the things my community members are looking for. Busy families value quick shopping, simple parking, helpful staff, getting in and out (at times with three little kids) really quickly. We have a play area in the Plain store where little shoppers can hang out while their parents shop. The kids enjoy it and it makes their parents’ shopping experience better. I think there will be a real focus on “simple” shopping because time is so valuable.

HR: How do discover what your customers want to see in your store? Do you use a loyalty program? AM: Marketing to our current customers is probably one of the most difficult parts of my job. I work hard to decide where to spend my dollars to target the people who are frequenting our store. We do regular circulars, put out spring and fall catalogs with a shopping spree, and utilize local newspapers. Local customers also hear me on the radio quite often. I have been voicing my own commercials since we opened, and I still do. We use Facebook, but we haven’t paid for advertising yet.

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of our local farmers are facing a very difficult decision, either to get much bigger or get out of farming. For those who decide to sell, there has been a shift to hobby farms. I think that trend will continue as people see value in getting back to their roots or try to grow roots they never had. There is a desire to raise your kids simply with apple trees in the yard, chickens out back and a huge garden. I think Ederer’s can play an important role in bringing that vintage, nostalgic vision to our communities for many years to come. I look forward to helping my customers raise animals on the same property I helped their parents raise animals on.

HR: Can you talk about the value and importance you place in furthering your education and networking with other independent retailers? AM: I really enjoy spending time with my hardware peers, but I don’t do it very often. I wear a lot of hats at work, and it’s difficult for me to get out of the store. I read often, and I try to keep up with new products and retail trends via newsletters, magazines and online. This magazine, Hardware Retailing, is a great resource. I also find interesting reads through the merchandising information that they send out. I have the opportunity to meet people and network at Do it Best markets and seminars. Like my customers, my time is very valuable, and most weeks I don’t have nearly enough of it. I am involved in my local chamber and business groups, and I enjoy talking shop with my fellow local business owners. It may already exist, but I would to utilize an online forum that discusses our industry weekly. What’s working, what’s not, what vendors are shipping product late or not at all. The technology is there to do it, so it’s just about making it happen.

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Opening Doors, New and Old Mother-Daughter Duo Talk Revitalizing Neighborhoods, ‘Good Bones’ TV Show

hen Indianapolis native Mina Starsiak Hawk graduated from Indiana University in 2007, she was ready to begin her career and build a space she could call home. With the support of her mom, Karen E Laine, she was able to buy a house close to downtown Indianapolis. However, she knew she’d have to roll up her sleeves and get to work, because the home dated back to the early 1900s and needed major repairs and upgrades. While rehabbing homes was a new endeavor for Starsiak Hawk, Laine had fond childhood memories of helping her parents complete DIY projects around their house. This early exposure to demolishing the old and building the new made Laine eager to help her daughter with her home rehab project. After helping her daughter by her house, she spent the weekends with Starsiak Hawk working on the home. “Around the same time that Mina bought her first house, I had bought a home in the Fountain Square neighborhood of Indianapolis to use as an office for my law firm,” Laine says. “We renovated Mina’s home and my office.

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After working on those homes, we started buying more old buildings that had become eyesores in the neighborhood, and we took to rehabbing them. By the fourth home we bought and rehabbed, Mina suggested we give our work a name, and our company Two Chicks and a Hammer was born.” As their business was starting to take flight, Laine was practicing as a lawyer full time and Starsiak Hawk was waitressing full time. Their weekends were busy working on one of their many projects. When Starsiak Hawk was contacted by a production company that saw their side business as something worth showcasing, she had no idea how much their business would grow. “We had a lot of great ideas, but with our full-time jobs, we really didn’t have a lot of time to do any more than about two house renovations a year,” Starsiak Hawk says. “We were always coming up with great ideas on how we could grow our company, but we weren’t able to see anything to completion. So when I was contacted by a production company interested in us and our story, it just felt like it was meant to happen.”

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Mina Starsiak Hawk (left) and her mom Karen E Laine began rehabbing homes when they bought houses southeast of downtown Indianapolis in the Fountain Square neighborhood. In 2015, their passion to revitalize the neighborhood became their own TV show.

“The production company discovered us by mistake. They stumbled upon our Two Chicks and a Hammer Facebook page and saw something they liked.

”

—Karen E Laine, “Good Bones” That call led to “Good Bones,” which is now in its third season on the popular network, Home and Garden Television (HGTV). The first season of the show began filming in July 2015. What began as a side business and hobby turned in to a life-changing pursuit when HGTV picked up the show. Through Two Chicks and a Hammer, they now renovate about 13 houses a year in addition to starring on “Good Bones.” To learn more about how their passion led to a successful home renovation company and hit television show, attend Laine and Starsiak Hawk’s keynote presentation, “Small Business Management: Turning a Hobby Into Something More,” at the North American Retail Hardware Association’s (NRHA) All-Industry Conference, on Tuesday, May 8 at 11:30 a.m. Following the presentation they’ll be available for a meet and greet with show attendees. Learn more at nrhaconference.com.

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Random Discovery to Reality TV Stars It’s not every day you have someone call and tell you they think you should be on TV. So when the Denver-based production company High Noon Entertainment initially reached out to Starsiak Hawk with a pitch for a show about her mother-daughter rehabbing business, she wasn’t sure it was legitimate. “The production company discovered us by mistake,” Laine says. “They stumbled upon our Two Chicks and a Hammer Facebook page and saw something they liked. We had a Skype interview with them, and they sent us a video camera to film ourselves and return it. From that, they made what is called a sizzle to pitch the concept of the story. They brought the sizzle to HGTV, and the rest, as they say, is history.” After HGTV picked up the show, their side company Two Chicks and a Hammer became a full-time endeavor immediately. In their first season of “Good Bones,” they went from rehabbing an average of two homes a year to 10 the first year. By seasons two and three of the show, they were rehabbing 13 homes a year. Because of this jump in production, they needed the funds to purchase homes and invest in the rehabbing process, but they also quit their full-time jobs because the show demanded their full attention. Continued on Page 132

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A Makeover Experience to Get Excited About Since Laine and Starsiak Hawk began their rehabbing business in 2007, they have been revitalizing Indianapolis neighborhoods that were desperate for attention, repair and new families. Through their TV show “Good Bones,” the pair is able to impress viewers with how the homes look before and after they take on houses as projects.

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Here are some before-and-after examples from a few of the episodes of “Good Bones.” The mother-daughter team enjoy taking the worst homes on the block and making them the best. Through the show, they also try to offer practical advice and tips viewers can use for their own home improvement projects.

Before

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“Before we got started, we were a bit naive about what was going to happen,” Starsiak Hawk says. “We thought someone would just follow us around with cameras, but we quickly learned that’s not how it works. Filming the show is a full-time job. But managing Two Chicks and a Hammer with 13 different homes going through the rehabbing process is, too. We quickly realized we needed to gather a strong team around us.” While Laine and Starsiak Hawk are the stars of the show, they also have other family members involved. Viewers get a chance to see a Midwestern family’s take on their shared goal of revitalizing Indianapolis one home at a time.

“With our company, I very much

am the business end. I have my real estate license and I think about the numbers more, while Mom is the soul of the business with her endless creativity and ideas. —Mina Starsiak Hawk, “Good Bones”

”

“If you take the worst house on the block and make it the best house on the block, you’ve changed that entire street,” Laine says. “The neighbors are happy about the changes, and their pride in their home and neighborhood increases as well.” As far as running the business together, Starsiak Hawk says they each have found their own place in the operation. “I think my mom and I are very similar, but there are areas where I’m her complete opposite,” Starsiak Hawk says. “With our company, I very much am the business end. I have my real estate license and I think about the numbers more, while Mom is the soul of the business with her endless creativity and ideas. I often have to be the one who says ‘no’ to things to balance out her ideas. I just try to inject realism, so sometimes I come across as the bad guy.”

A Transformation: DIYers Turned Pros When Laine and Starsiak Hawk first began rehabbing homes together, neither of them had professional training. What they did have was a creative vision and the patience to teach themselves how to do different projects. “After I bought my first house and began the process of remodeling, I went out and bought ‘Home Remodeling for Dummies,’” Starsiak Hawk says. “If I didn’t find what I needed in there, I would search online and watch YouTube videos.”

When it comes to home improvement projects, Starsiak Hawk and Laine say they learn what they need to complete remodels by reading books, watching videos online and consulting with experts, like the staff at Fusek’s True Value Hardware in downtown Indianapolis.

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In season two, episode three of “Good Bones,” Laine and Starsiak Hawk purchased this four-bedroom, four-bath, 4,300-square-foot house, which included a third-floor attic with useable space for a large bonus room. On the left is how the property looked before its transformation.

On top of reading and watching videos, they learned through trial and error, gaining hands-on experience by tackling home improvement projects. “Before we installed bamboo floors in my house, I had a lot to learn,” Starsiak Hawk says. “Together we took on the project, and while we made mistakes, we did it ourselves and learned a lot in the process.” Another project they decided to tackle was installing cabinets in a kitchen. Since neither of them had done a project like that before, they researched before and during the project, making a point to double check their work every step of the way. “When we installed kitchen cabinets, we knew they needed to be level, plumb and square,” Laine says. “A kitchen installer would usually only take a day to install kitchen cabinets. We wanted to take our time, and kept a close eye on our measurements. Later on, the cabinet installers came with their laser measure and asked us who installed our cabinets. When we told them we did, they let us know it was the best cabinet install job they’d ever seen. That was such a great feeling.” In addition to being self-taught rehabbers, the duo says they turn to their local independent hardware store, Fusek’s True Value Hardware. “We try to shop and support independent businesses wherever and whenever we can,” Starsiak Hawk says. “For many things we need, we’ll go to Fusek’s. I know when I call them I’ll get someone who knows me. When I call a big-box store, I’m often bounced around from person to person.”

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The relationship with the team at their local hardware store gives them access to educated people who can help them work through a problem or remodeling question. “I let them know what I need and they’ll find it for me. If I can get there by 4 to 6 p.m., I’ll get the happy hour 10 percent discount that customers get on weekdays,” Laine says. “If they don’t have it but they can order it, they will, which is great. Plus, they’re full of really good advice. If I’m working on a project, I never hesitate to tell them what I’m working on.” To stay on top of all the projects they have going on, from their hit TV show to the homes they’re rehabbing, having a hardware source to help is huge.

“Being in a family

business also means taking issues from a normal family dynamic and putting it in a pressure cooker. Instead of going our separate ways, we stay professional and fix issues much faster. —Karen E Laine, “Good Bones”

”

“The biggest thing for me when working with a retailer is the responsiveness they can give me,” Starsiak Hawk says. “Independent businesses can usually get materials in our hands quickly.” Laine also values retailers who understand time is precious. “You want to talk to someone who knows their stuff,” Laine says. “Someone who knows what I need and can answer my questions can save me time, effort and trouble—that’s huge!” Laine and Starsiak Hawk both realize the impact that shows like “Good Bones” and online resources like Pinterest have in establishing trends and helping homeowners find their style and design preferences. “We try not to focus on trends,” Starsiak Hawk says. “Since I work in real estate, I don’t like following trends; I’d rather incorporate a more timeless look into the homes we rehab. However, I know our viewers say they get ideas and inspiration from the projects we’ve done on our show. What’s so cool is that if they see something on TV or online, they can go to a retailer and show them exactly what they’re trying to replicate. This ensures they have a better chance of getting the desired look than if they had no visuals to present.”

Family Business Builds Strong Relationships The third season of “Good Bones” premiered in April, and Laine says they are still happy when they hear from fans who say they enjoy watching their mother-daughter dynamic play out each week. “We have a lot of parents and kids who watch the show together and enjoy learning about another family and seeing projects that they feel they could do,” Laine says. “It’s cool to hear people say they watch our show to relax and forget about work and stress.” Laine and Starsiak Hawk have worked together for more than a decade, but seeing their family dynamic play out on TV has brought them closer, the pair says. “There is a certain level of trust you have when you work with your family,” Laine says. “We know we’ll figure out issues and when we have success, we get to enjoy it together. Yet being in a family business also means taking issues from a normal family dynamic and putting it in a pressure cooker. Instead of going our separate ways, we stay professional and fix issues much faster.” Although Starsiak Hawk and Laine couldn’t share any future plans or news about “Good Bones,” they did say their intention was to continue growing Two Chicks and a Hammer. Their office building is located in a home they rehabbed themselves, and nearby is a warehouse that Laine says they want to transform into a retail space with a liquor license.

Both Laine and Starsiak Hawk say working in a family business that’s on TV has helped them solve any personal issues they have much quicker.

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“We’re creating good

homes and providing a good investment for our buyers. —Mina Starsiak Hawk, “Good Bones”

”

Though their journey is now broadcast on TV, Laine says their true satisfaction comes from seeing the neighborhoods they work in receive much-needed updates. “We couldn’t do what we’re doing if there weren’t people who cared,” Laine says. “For someone who has been living in the neighborhood, it’s not their fault if there is a vacant home on the block. We like to think that we step in and can do something to fix the vacant home and add a new family to the neighborhood. ” Laine says she hopes the TV show and the nationwide interest in home renovations can clean up neighborhoods and even slow crime. However, they don’t want to change or push out the people and the character that make a neighborhood unique. “The neighborhoods we work in are where we live and work ourselves,” Laine says. “We like our neighborhood, and we’re not trying to change it.

What we want to do is get rid of the vacant homes and remove the crime. If we can do that, we can elevate our neighborhood as a whole.” When they first started transforming homes in the Fountain Square and Bates-Hendricks neighborhoods of Indianapolis, which are just southeast of downtown, they knew there would be challenges. These neighborhoods had a reputation for crime and most of the homes needed repairs. They had to ask for a lot of trust in buyers, too, Starsiak Hawk says. “I have to explain to potential buyers it may not seem like it makes sense to make a purchase in a neighborhood they aren’t sure about, but the vision is that it will increase in value and is worth it,” Starsiak Hawk says. “We’re creating good homes and providing a good investment for our buyers.” Although transitioning from working as a lawyer to owning and operating a family business had its challenges, Laine says the passion she had for the people she helped in both careers remains. “When I was a prosecutor, I met people on their worst days,” Laine says. “I was there to help my clients through the process of finding themselves again. And that’s what we do with these homes. We find a home on its worst day and make it look good again, bringing a new family to the home.”

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Taking on homes that are in serious need of work is not something a lot of people would want to invest in. However, Starsiak Hawk says they ask their potential buyers to trust the vision and be part of the change to see the neighborhood continue to improve.

May 2018 | HARDWARE RETAILING

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CUSTOMER SUCCESS STORY

TAYLORSVILLE HARDWARE RockSolid MAX™ software is a key component to a miraculous business turnaround

hese are good times for the Olivers at Taylorsville Hardware in Taylorsville, Kentucky. The family—the husband and wife team of Jason and Gwynn Oliver and Jason’s father, Jim, and his wife, Dee—are new to the hardware business. They only bought the store they now call home in June, 2017. But business, since they took over, has been little short of spectacular!

ROCKSOLID MAX PROVIDED THE FOUNDATIONAL SUPPORT NEEDED TO FOCUS ON GROWTH Sales are up a heady 35 percent, lost customers are coming back in droves, and new regulars are joining them. The store added more than 300 “likes” to its Facebook page in just three months. Meanwhile, the whole operation has been revitalized and refreshed with stepped up advertising and promotion, much improved merchandising, and a broader and more customer-centric product mix. The new team at Taylorsville Hardware even won first place in the local Chamber’s Christmas tree contest! The Olivers’ success story, of course, didn’t just happen. It has been the result of a lot of hard work and some smart business decisions. One of the smartest, says Gwynn, was bringing in the RockSolid MAX cloud-based software for hardware stores to run the operation. “RockSolid MAX has not only given us the information we need to manage the store properly, but it’s also made clear to our customers our commitment to them, and given us so much more time to focus on the things that are truly important to our growth. When the Olivers first took over, they found a business sorely in need of some major changes. The store had been a long-time fixture of the Taylorville community, but it looked old and tired. Its product mix was essentially stagnant and its merchandising plan made

life far too difficult for customers and employees alike. To make matters even worse, the previous owners had been running the business manually, and paper was everywhere. The first thing the Olivers did was change the name of the store to emphasize its new commitment to the local community. The second thing they did was to search for business software that would provide a strong foundation for everything else they wanted to do. Fortunately for Gwynn and the rest of the team, it didn’t take long to find the system they needed.

ROCKSOLID MAX’S INDUSTRY EXPERTISE AND TECHNICAL SUPPORT WAS VITAL TO A SUCCESSFUL IMPLEMENTATION “As a long-time Do it Best store, we wanted software that had a proven track record of working smoothly with them,” she recalls. “RockSolid MAX certainly met that requirement and we were also impressed with all the capabilities and efficiencies it had to offer.” What really made the difference, though, had a lot less to do with technology and a lot more to do with the people at RockSolid MAX. “The RockSolid MAX representatives we talked to clearly knew the program inside out,” Gwynn explains. “They presented it very fluently and there was no hesitation when it came to answering our questions. They also knew the hardware business and they knew Do it Best and all that was really important to us.” It helped, too, she says, that the program was so easy to learn. Because it is a cloudbased system, the Taylorsville Hardware team would not have to worry about taking care of upgrades, backups, and other maintenance issues themselves.

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And once Gwynn decided to go with RockSolid MAX, she found even more reasons to be pleased. “The support we got from RockSolid MAX to help us prepare for the conversion was amazing,” she says. “They gave us detailed guidelines and a timetable on what we needed to accomplish each month and there was a library of very useful videos online that we could watch and learn from.” In addition, she says, RockSolid MAX technical support staff walked the Taylorsville Hardware team through set up for every piece of equipment and tested everything once it was hooked up to make sure it was all working perfectly. It was five-star support all the way on the conversion and Gwynn says it’s continued that way ever since. “A lot of times with software, you don’t know what you don’t know until you need it but that hasn’t been a problem with RockSolid MAX.” “The representative at RockSolid MAX who helped us with our initial set up is still as available today as he was back then. He’s there every time we call him and he always has the answer that we need,” she says.

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HOURS OF WORK AND MOUNTAINS OF PAPERWORK—GONE! Once RockSolid MAX was live, life at Taylorsville Hardware got a whole lot easier. About half of the store’s business comes from house accounts. “In pre-RockSolid MAX days, putting monthly statements together and mailing them used to take as long as eight hours,” says Gwynn. When we talked to Gwynn Oliver, Taylorsville Hardware had been using RockSolid MAX for less than six months, but that was more than enough time to prove to her and the rest of the team that they had made the right software decision. “With all the extra time RockSolid MAX has given us and the information it’s generating on what’s happening in the store, the program is basically paying for itself,” she says. “If we didn’t have RockSolid MAX, we’d still be spending a huge amount of time sorting through paperwork instead of using that time to work on refreshing the store. RockSolid MAX has been a key reason behind our sales growth and we’ve been very happy with our investment.”

By Renee Changnon, rchangnon@nrha.org

Not Your Average Treehouse A Business Reinventing Home Improvement

rowing up in Southeast Texas, Jason Ballard was conflicted. He spent his days playing outside in a heavily forested, biodiverse area called the Big Thicket National Preserve. However, that same community was also home to a very high concentration of oil refineries. “I had a very ‘Huckleberry Finn’ type of childhood growing up surrounded by the beauty of nature,” Ballard says. “Yet at the same time, almost everyone in my family worked in the oil industry. This crossroads of different ideas led me to have a cognitive dissonance, seeing that I lived in an amazing place and realizing it was horrible what we were doing to it.” This glaring contrast took Ballard on a journey to figure out how he could help fix the problem. He got his undergraduate degree in conservation biology at Texas A&M University, and after much research, he realized that the No. 1 use of energy came from structures like homes and commercial buildings that consume energy every day. He moved to Boulder, Colorado, after graduating and began working in sustainable building. “While working in Boulder, I realized that many companies were willing to take up better practices in building and construction,” Ballard says. “However, I saw there was a need for a place that sold the best products and offered the best services. With the help of my girlfriend at the time, who is now my wife, we came up with the idea for TreeHouse, a business that reinvents home improvement with the goals of ecological and human health, without lacking great design.”

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While it took several years to make his dream a reality, TreeHouse has been growing its roots in Texas, now with three locations in the state. Ballard returned from Boulder because he says he believed his home state would benefit from his business. In this article, Ballard, the co-founder and CEO of TreeHouse, shares his story, the vision of his company and explains why he believes the home improvement industry should be making energy efficiency and green practices the new normal. To learn even more about Ballard and how to bring sustainability to the forefront, attend his keynote presentation, “How TreeHouse Grew Its Roots and Where It’s Headed,” at the North American Retail Hardware Association (NRHA) All-Industry Conference, at 10 a.m. May 9. For more information, visit nrhaconference.com.

Standardizing Sustainability Having a vision and actually working to see it through can be difficult. When Ballard and his wife came up with the idea for TreeHouse in 2006, it was just the beginning. Ballard continued to work in sustainable building and forestry, but he spent all of his free time meeting with industry experts and investors, pitching the TreeHouse business plan to anyone who would listen.

“From 2007 to 2011, we were in the midst of the Great Recession,” Ballard says. “It was tough to create a business model and find investors for a new company, especially home improvement.” After he had enough investors join his cause to invest in TreeHouse, Ballard was finally able to open the first store in Austin in 2011. Once TreeHouse opened for business, it was time to attract the right customers. Rather than modeling TreeHouse after big-box retailers like Lowe’s or Home Depot, which serve DIYers, Ballard says his team wanted to serve the “do-it-for-me” market, and advance the company mission of creating healthy homes. Simply selling products was not enough for Ballard. He believed that to move the needle toward a healthier environment, TreeHouse employees should be able to help customers take bigger steps in their home improvement projects. “It was an unoccupied space in the market, and we decided we needed to be the world’s best project delivery company with an amazing initial presentation,” Ballard says. “Our retail stores are the place where we help you start your journey. Maybe it’s just a lightbulb today, but you’re going to hear and learn things that inspire and excite you about your home, and you know where you have a partner to take those steps with when you’re ready.”

Jason Ballard, CEO and co-founder of TreeHouse, developed the Texas home improvement business to help consumers create the most eco-friendly spaces they can without sacrificing design.

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When walking through the Austin, Dallas or Plano, Texas, TreeHouse showrooms, customers are able to discover a variety of projects that improve how healthy a home is for them and the environment. They can also realize these projects can have stylish, well designed features.

As TreeHouse began to gain notoriety in Austin, and word spread throughout the home improvement industry about the unique business, it sparked curiosity in executives from a certain big-box retailer. “I don’t know the rank or title of the people who walked through our store, but we had a group of men in suits who definitely looked out of place,” he says. “We welcomed them to the store, asked what we could help them with and shortly after we figured out they came in from Atlanta. It was an interesting moment, realizing TreeHouse caught the attention of Home Depot, arguably the biggest player in the home improvement game. That was validating.”

“Our goal is for customers to be inspired and help lead a mass adoption of the attitude that a sustainable, healthy home is a better home.

”

—Jason Ballard, TreeHouse 144

HARDWARE RETAILING | May 2018

Promoting a New Way to Build In order to grow TreeHouse’s customer base and really push the company’s mission of reinventing home improvement forward, Ballard wants to make sure TreeHouse offers products that give customers a way to transition their living spaces into more energy-efficient and eco-friendly homes. “I think it would be hard to visit a TreeHouse location and not realize we promote healthy homes,” Ballard says. “However, you might not realize it because we don’t want design to suffer in the process of adding eco-friendly products. Our goal is for customers to be inspired and help lead a mass adoption of the attitude that a sustainable, healthy home is a better home.” Although Ballard says other companies have attempted to create a “green big box,” their approach hasn’t worked with consumers. “We ensure our customers know we’re all on the same team,” Ballard says. “We are not judging anyone for what they have done in the past, and we let them know we want to help them design a great home. Part of that equation incorporates health and sustainability, too.”

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In order to stay at the top of their game, Ballard says he and his team continually keep an eye on the industry, striving to have the best products and technology available to their customers. For example, a few years ago when their only retail store was the Austin location, Ballard saw connected home technology starting to make advancements. He was determined to get those types of tech products in the store. TreeHouse executives did whatever they could to get the attention of Nest Labs, a home automation company. Their goal was to bring Nest smart thermostats and other products to TreeHouse. “At the time, we were a one-store operation in Austin trying to work with companies like Nest and Tesla, leaders in the transition to sustainable energy,” Ballard says. “Just setting up a meeting with these companies was difficult. But we were persistent, and I think from our meetings they could see we genuinely were passionate about what TreeHouse is all about. For those reasons, I believe they both made the decision to work with us, which was a big deal for a business of our size.”

To sell the many great brands and products in the store, however, Ballard says having the right people on staff has been vital to the success of TreeHouse. “I know we have a very smart team,” he says. “When a customer comes to our store, they are talking to design professionals. We have a licensed architect working in our stores, former building energy auditors; we have experts who really know what they’re talking about.” Not only does TreeHouse sell great products, but they provide service to their customers through a team of highly trained professionals who install and complete the project for the customer, Ballard says. The majority of Treehouse’s employees specialize in the departments they work in. “Often the person selling in our stores is professionally trained in the department they work in,” Ballard says. “This elevates our entire company. It would be hard to casually work at TreeHouse. When we hire someone lacking experience, they can learn directly from our knowledgeable employees to close the gap.”

TreeHouse differs from big-box retailers in that products are arranged in an open concept and departments are primarily organized by project, rather than retail product categories. If customers have questions, employees with professional backgrounds can assist.

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Projects Promoted by Treehouse For consumers in Austin, Dallas, or Plano, Texas, creating a healthy, ecologically focused home with great design has been made possible with help from TreeHouse. Unlike a traditional big-box store that divides the

salesfloor into aisles of similar products, TreeHouse has made projects the focal point. Here are offerings within TreeHouse that customers can explore and implement with help from knowledgeable employees.

Flooring Customers choose their eco-friendly flooring from a selection of high-quality materials.

Rainwater Harvesting TreeHouse offers small-scale rainwater-harvesting materials and installation to reduce outdoor treated water use.

Outdoor Living TreeHouse stores have a variety of outdoor products, from house plants to a smart WiFi sprinkler to conserve water.

Windows Strategic window placement can lower energy use. Employees help customers choose the best option.

Residential Solar Energy Adding solar panels to a roof can add value to the home and cut down on power usage, reducing the cost of electricity.

Kitchen and Bathroom Remodels TreeHouse offers kitchen and bath fixtures and cabinetry that are modern and made from eco-friendly products.

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Planning for a Bright Future

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When TreeHouse started, the business opened in an existing building in Austin. In the years that followed, the original store allowed the company to test out new, sustainable, eco-friendly design elements. However, as they planned to add their second and third locations, Ballard says he and the TreeHouse team knew they wanted to build ground-up stores. Building would allow new stores to practice what TreeHouse preaches, demonstrating the techniques and products the stores specialize in, he says. “Our first TreeHouse location was a petri dish of ideas,” Ballard says. “I consider it TreeHouse 1.5. Then we built the Dallas and Plano stores. Both of those

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At the Plano, Texas, TreeHouse store, the outdoor living area has a bocce ball court set up for inspiration and fun.

stores were built from the ground up, so I like to think of them as TreeHouse 2.0. Our buildings showcase high design, an exceptional experience and dedication to education.” Ballard did not share any specifics on upcoming new developments or future TreeHouse locations, but he did confirm that the ultimate goal of the company is to continue to grow and fulfill its eco-friendly mission. “What TreeHouse offers needs to become the new normal,” Ballard says. “We don’t ever call our offerings ‘green building,’ because we don’t want to label it as a special kind of building. It just makes more sense.” While Ballard admits there is competition in the home improvement industry, he says every business should have its own distinctive offerings or goal in order to survive. “I think independent retailers should remind themselves that they are not Home Depot, Lowe’s or Amazon,” Ballard says. “I’m a biologist by training. In nature, for example, every single thing has its own purpose and unique way of doing things. In that same way, every business has something unique to offer. Figure out what sets your business apart from the crowd, and then find a way to make that trait the best it can be.” As an entrepreneur, Ballard always strives to stay focused on the journey and not be distracted by what others are doing. “There are a few things that have stuck with me from the book ‘The Art of War’ by Sun Tzu,” Ballard says. “You need to ‘be where your enemy is not,’ and ‘break the enemy’s resistance without fighting.’ To me that means if you try to be Amazon, you’ll fail. So be what Amazon can’t be. Being an entrepreneur in any industry is difficult, but if you have personal conviction and you enjoy what you are doing, you will succeed.”

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HARDWARE RETAILING | May 2018

Menards M

enards is a big-box enigma in the U.S. home improvement industry. Older than Home Depot and smaller than both Home Depot and Lowe’s, the Wisconsin company has stayed quietly regional and privately owned for more than 50 years and counting. At the same time, the bold lettering on Menards-sponsored race cars, the iconic “Save Big Money” jingle, and the founder’s reputation are not quiet. Founder John Menard cannot avoid public scrutiny, as he lands on Forbes’ annual list of American billionaires year after year and appears at NASCAR races to watch his race car driver son, Paul. But, as a private company, the third-largest home improvement retailer in the U.S. does not release financial information, unlike its publicly traded competitors and independent cooperatives such as Ace Hardware and True Value. In addition, Menards’ leadership has mostly avoided requests for media interviews and closely controls information the company releases. Hardware Retailing has been among the media outlets that have contacted the company for more information without receiving a response. A comprehensive look at how Menards operates is difficult to get, and people who haven’t worked in executive roles within the company know little about it. Because few public documents are available and Menards did not provide interviews, Hardware Retailing writers compiled information from existing research and approached retail industry observers for added insight. On the following pages, you will find the results of their work in a 360-degree look at the company.

What We’ll Cover 154 The History of Menards 156 Who Is John Menard? 158 A Snapshot of Menards 160 Menards in Recent Years 164 SWOT Analysis 166 The Financials 168 Menards on Its Home Turf 169 Menards’ Market

and Opportunities 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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360

The History of Menards

The year 1962 was a busy one in American retail. That year, entrepreneur Sam Walton opened the first Walmart store in Rogers, Arkansas;1 in Minneapolis, the first Target retail store opened;2 and John Menard incorporated Menards as a Wisconsin company.3 Walmart would grow its discount model astronomically and permanently transform the way businesses buy, sell and transport

products worldwide. Target became a national company known for its trendy products and strategic business partnerships with fashion designers and companies such as Starbucks. Both general merchandise retailers went on to become public companies with stockholders around the world. Throughout the nearly 50-year boom of discount retailers and home improvement competitors, Menard kept his business closer to the vest. He maintained controlling ownership, and as a result, kept the independence of growing and experimenting with retail concepts in relative privacy.4 In the home improvement sector, Lowe’s Cos. had been steadily growing in the Southeast for nearly two decades when Menards incorporated. Lowe’s opened for business in 1946 and, just one year prior to Menards’ incorporation, went public in 1961.5 Home Depot entered the home improvement marketplace with two stores in 1979 and went public in 1981.6 Menards was born out of a growing local demand for pole buildings. Menard began his business to serve the rapidly changing farm

Timeline: From 1958 to the Present

1958

1962

1963

In the Beginning

Big-Box Boom

Business Acumen

Retail Outlet

John Menard starts a business constructing pole buildings in his hometown of Eau Claire, Wisconsin.

Menard incorporates3 the company in Eau Claire the same year Walmart1 and Target2 open their first retail stores.

Menard graduates from the University of Wisconsin-Eau Claire with a degree in business administration.8

The first Menards retail location, called Menard Cashway Lumber at the time, opens in Eau Claire.

The source for the timeline entries is Menards.com, unless noted otherwise. 8 University of Wisconsin-Eau Claire Alumni Association 9 Milwaukee Journal Sentinel 10 Time magazine, March 19, 2013

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1964

industry in 1958.7 As more machinery was introduced into dairy farming, he recognized a need for low-cost agricultural buildings to house livestock and equipment.7 Within a year, Menard’s pole building construction business was already gaining a reputation in Eau Claire, Wisconsin, where Menards’ corporate headquarters is now located.7 As consumers started requesting lumber and building materials, Menard entered into the building materials business, calling his retail outlet Menard Cashway Lumber and opening the first retail location in 1964.4 The company expanded into manufacturing more substantial building materials on-site, opening a truss plant in the late 1960s.7 The truss plant eventually developed into the Menard Building Division and manufactured steel siding and roofing, interior and exterior doors, decking and treated lumber and other materials.7 Menards sold the Menard Building Division in 1994, ending more than 30 years in the pole building business.7 During that same period, the company operated 78 Menards stores.4

An early experimentation for the retailer was using an efficient delivery system to supply its stores. Menards was the first DIY home improvement company to use the “hub-and-spoke” system, with all deliveries originating from the company’s distribution facility in Eau Claire.4 Home Depot and Lowe’s would later adopt similar distribution strategies, and a Forbes analyst speculates that the companies were inspired by Menards to implement similar methods in their businesses. Menards supplied all of its stores from its distribution center in Eau Claire until 1998, when a second center opened in Plano, Illinois, according to the company. Menards now operates 11 distribution centers in eight states, including two in Wisconsin and three in Iowa.7

corporate.walmart.com corporate.target.com Office of the Wisconsin Secretary of State 4 Forbes (multiple articles) 5 Lowes.com 6 corporate.homedepot.com 7 Menards.com 2 3

1969

1990s

New Ventures

Growth and Change

The Big Time

Labor Trouble

Menards launches its truss plant, which became Menards Building Division and manufactured building materials, such as siding.

Menards doubles its store count throughout this period. The company sells Menards Building Division in 1994.

Menards opens several large-format stores, each at more than 200,000 square feet, throughout the Midwest.10

The National Labor Review Board rules Menards violated federal law, its second violation in as many years.9

2000s

2016

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360

Who Is John Menard?

The story of Menards is incomplete without a short biography of founder John Menard, who not only built the company, but has also directed its course for decades. Born in 1940, Menard was the oldest of eight children and “learned the value of hard work and frugality” while doing chores on his parents’ dairy farm in Wisconsin, Mary Van de Kamp Nohl writes in Milwaukee Magazine. In the 1950s, Menard was a young man working to pay for college in Eau Claire who saw an opportunity for entrepreneurship.7 Menard set out to start his own business when he left his high school job to construct pole buildings. His customers asked to buy building materials,so he went into retail, opening the precursor to today’s Menards stores, Menard Cashway Lumber.11 In business, Menard is detail-oriented, thrifty and an opportunist, similar to many retail entrepreneurs who built large companies in the 20th century.11 Like Sam Walton, who founded Walmart, Menard has been carefully frugal, opting for a lowest-price-possible retail model and negotiating heavily with vendors to slash product costs.11 Also like Walton, he is willing to try selling a broad array of products in his stores,

including groceries, diapers and toys, alongside traditional home improvement departments such as electrical supplies and lumber and building materials. Menard stands out as eclectic, with a penny-pinching approach to business but a famous, expensive interest in car racing.11 In addition, he has provided material for tabloid-style writing due to friendships and fallings out with other billionaires, including President Donald Trump.12 In a 2013 article, Forbes reports that Menard told the magazine he no longer runs his retail chain. However, “insiders say he still oversees the smallest details, from the material for store parking lots to answering company mail,” Forbes says. Perhaps confirming active involvement in the company, Menard made a public appearance with car dealer Tom Kelley in March to announce a business partnership that would include expanding two Menards stores in Indiana.13 Regardless of how active he is in the company currently, Menard, at nearly 80 years old, is the wealthiest Wisconsin resident and one of the richest people in the U.S.4

Milwaukee Magazine, April 30, 2007 Indianapolis Monthly, Indianapolis Business Journal 13 The Journal Gazette, March 7, 2018, Fort Wayne, Indiana 12

University of Wisconsin-Eau Claire

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360

A Snapshot of Menards

At the end of 2017, Menards operated 306 stores in 14 states.

Menards’ first major piece of equipment was a 1946 Chevy truck.

45,000+ Store Employees in the U.S.

Sources: Menards and Menards.com

Source: Menards.com

Menards has sponsored NASCAR teams and drivers, including John Menard’s son Paul, since 2001. Menard’s involvement in the IndyCar series dates back to 1979, when he bought a car to race in the Indy 500. Sources: NBC Sports and Milwaukee Magazine

In 1958, John Menard started the company that became Menards to pay for his college education at the University of Wisconsin-Eau Claire. He graduated in 1963.

Sources: Menards.com and University of Wisconsin-Eau Claire Alumni Association

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In 2017, Forbes magazine ranked John Menard the 45th wealthiest person in the U.S.

John Menard’s son, Paul, earned $3.25 per hour at about age 10 stapling papers in Menards’ accounts receivable department. Source: USA Today, Sept. 14, 2015

Iowa radio station owner Bob Holtan wrote the lyrics to Menards’ “ Save Big Money” jingle in the 1970s. Source: City Pages, Jan. 13, 2015, Minneapolis

Unlike primary competitors Home Depot and Lowe’s, Menards has been a private company since its inception.

incorporated the same year that Walmart and Target started, 1962. Sources: Office of the Wisconsin Secretary of State, company filings

Paul Menard drove to victory in the 2011 Brickyard 400 in the NASCAR Cup Series. His win came despite this comment about him from racing champ Tony Stewart: “You can have your father buy a ride and write a big check, but you can’t buy talent.” Source: ESPN, Aug. 1, 2011

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Menards in Recent Years

Menards currently has more than 300 stores in 14 states: Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and Wyoming.7 The company employs an estimated 45,000 workers,7 and the National Retail Federation estimates the company pulled in $10.7 billion in sales during fiscal year 2016. That estimate is about $84 billion less in 2016 sales than Home Depot reported and about $54 billion less than Lowe’s. However, according to Hardware Retailing estimates, Menards’ sales ring up at about $6.4 million less per store than Home Depot, and $4.6 million more per store than Lowe’s. Big-box retailers like Target, Walmart and Lowe’s have been rolling out small-format versions of their stores. However, Menards has expanded into more locations throughout the Midwest with buildings that are larger in size than their predecessors and retail competitors, too. In 2011, Menards debuted its remodeled Eden Prairie, Minnesota, store, which was a 235,000-square-foot, two-story operation, according to a 2012 article in the Minneapolis Star Tribune newspaper. “Menards has accomplished contradictory feats: It builds stores of enormous size at a time when retailers are downsizing, while also maintaining

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its reputation as a salt-of-the-earth, family-owned business,” the Star Tribune reports. “The retailer has somehow merged intimacy and big box into the same sentence, retail observers say.” While some companies wouldn’t want to close up shop to remodel a massive building, Menards has done that in many situations. The company can likely do so because of its private ownership.14 Menards has the flexibility to make changes without reporting to a massive number of stockholders. In addition to expanding salesfloors in many of its existing stores and new locations, Menards has also made a name for itself with its eclectic mix of merchandise. Customers can expect to find everything from standard hardware tools and gardening equipment to groceries and furniture. The company has gained a reputation similar to Walmart, reassuring its customers they can “Save big money at Menards,” as their iconic jingle says. The company reports that its stores offer the lowest prices in town and a wide range of categories housed under one roof, creating a one-stop shop for customers.7

Star Tribune, Jan. 29, 2012, Minneapolis The Blade, July 12, 2017, Toledo, Ohio 16 Leader-Telegram, Dec. 1, 2017, Eau Claire, Wisconsin 17 The Progressive, Dec. 15, 2015 18 The Capital Times, April 1, 2016, Madison, Wisconsin 15

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Menards in Recent Years

One method Menards has for bringing in repeat customers is its strong rebate program, which offers store credit instead of cash.

In December, the Leader-Telegram in Eau Claire reported on the company’s plans for a new warehouse run by machines. Menards “plans to build a 121,700-square-foot warehouse with a 60-foot-tall automated system that will organize merchandise and process orders,” the Leader-Telegram reports. The goal for this addition is to get products to customers faster, Jeff Abbott, spokesman for Menards, says in a statement.16 “The robotic warehouse allows the company not only to speed delivery time but also cut costs and keep prices low,” Abbott says in the newspaper article. In addition to manufacturing projects and distribution enhancements, Menards continues to open stores throughout its current service area. In March, John Menard joined Tom Kelley, president of Kelley Automotive Group, in Fort Wayne, Indiana, to announce expansion plans for Kelley’s business and Menards. The company plans to invest up to $6 million to expand its stores to upgrade the size, product line and service in two Fort Wayne Menards locations. Kelley plans to invest millions in updates to nearby land.13

Fines, Lawsuits and Disgruntled Employees Dropping Prices and Internal Manufacturing Menards has built a reputation as the destination for low-priced home improvement goods. The company’s rebate program draws customers back to stores, as its policy of giving in-store credit instead of cash pays off.14 This approach inspires customer loyalty, as they return to use their credit in the store and spend more money in the process. Menards demands low prices from its suppliers to keep its low-price promise to its customers. On top of working with brands to get deals on merchandise, the company also keeps prices low by manufacturing many of its building materials, which include doors, roofing and siding. In July, the company was finalizing plans to open a new manufacturing operation in Holiday City, Ohio. Menards will be manufacturing a variety of materials, such as steel roofing and siding, and concrete blocks. Plus, the facility will act as another distribution center for Menards.15

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While founder John Menard has created a company from the ground up, and in turn has become the wealthiest person in the state of Wisconsin, his rise to success has come with scrutiny for him and his business. The company has faced different legal challenges over the years, and currently is dealing with lawsuits from former employees. For example, in 2015, managers at the company shared that in their employment agreement, they had to agree to a substantial cut in pay should the workers under their supervision form a union.17 Lawsuits followed, and by April 2016, the National Labor Relations Board found Menards guilty of violating multiple federal labor laws.18 The violations could impact the company’s relationship with all of its employees, the article says. In February, an Ohio law firm sued Menards “on behalf of workers who say they weren’t properly paid wages and overtime,” the Dayton Daily News reports.

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SWOT Analysis

Strengths

Weaknesses

• Broad Inventory. From plumbing and electrical supplies to sports drinks and plush dinosaur toys, Menards is known for its wide selection. In 2017, customer experience analysis firm Market Force Information surveyed 7,800 U.S. consumers to learn about shoppers’ opinions of home improvement stores. Menards scored highest in the merchandise variety and value category, topping Ace Hardware, Home Depot and Lowe’s.

• Mobile App Adoption. Menards, as a regional company, is a distant No. 3 behind national companies Home Depot and Lowe’s in many areas. For example, Market Force surveyed more than 7,800 Americans and learned that their usage of Menards’ mobile app lags behind use of apps from Lowe’s and Home Depot. The Menards app offers bar code scanning to learn more about products, in-store department maps and augmented reality to help customers visualize home renovation projects.

• Memorable Marketing. Menards’ signature “Save Big Money” song is memorable and has run on TV and radio for decades. The retailer’s billboard and print circular advertising often looks like it could have come from a local business, and some of the language sounds similar to small business marketing material, such as, “Put your money where your house is.” Menards has also advertised on race cars, emblazoning its logo on Menards-sponsored vehicles and race team uniforms.

• Store-Branded Credit Card Use. Menards also trails its main competitors, Home Depot and Lowe’s, in the number of consumers using its store-branded credit card, the Market Force survey reveals. Among respondents, 25 percent used Lowe’s credit card, 21 percent used Home Depot’s and 7 percent use Menards’ store-branded credit card.

• An Affordable Reputation. Menards’ “Save Big Money” mantra and regularly advertised 11 percent discounts on products have helped the company establish itself as an affordable option against competitors, according to Anne Brouwer, retail consultant from the firm McMillan Doolittle.

• Being Regional. Brouwer calls Menards “a regional player.” Because the retailer operates stores in only 14 U.S. states, many Americans do not have local access to Menards locations but can shop at the brick-and-mortar locations of the company’s largest big-box competitors all across the country.

• Business Diversity. In addition to its retail outlets, Menards operates subsidiary businesses, including Midwest Manufacturing, Menards Self Storage, Menards Transportation and Menards Real Estate.

• Unclear Trajectory. If founder John Menard is still the business’ majority shareholder and continues to provide close operational oversight, then the company’s future is highly dependent on an untested succession plan.

Unless other sources are cited, the opinions expressed in this SWOT analysis are based on market knowledge and research from the Hardware Retailing editorial team.

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HARDWARE RETAILING | May 2018

Opportunities

Threats

• Repurposing Vacant Stores. In January, U-Haul acquired a vacant Menards store in Indianapolis. U-Haul plans to renovate the building and use it as a self-storage facility, according to uhaul.com. Menards could continue to sell vacant stores to noncompetitors to earn money if stores close.

• Distant Third. In 2017, The Home Depot scored $100 billion in fiscal year sales and Lowe’s earned $67 billion. The National Retail Federation estimated Menards saw $10.7 billion in sales in 2016. Menards is in a distant third place among the nation’s top three big-box home improvement centers, though it is 16 years older than Home Depot.

• Capitalizing on E-Commerce. Menards has the financial means to bolster its e-commerce offering in a way smaller retailers cannot. By investing more in e-commerce, the retailer could increasingly reach customers in locations where it does not physically operate brick-and-mortar locations. • Investing in Technology. In 2017, Menards announced plans to build a new distribution center featuring a robotic system to speed up delivery times and cut operating costs. If effective, Menards could replicate its success by renovating existing distribution centers or building new facilities.

• Legal Entanglements. Both Menards the company and its president and CEO John Menard have faced several lawsuits over the years covering a wide range of issues, including environmental violations, wage theft and sexual harassment. These legal issues could potentially be costly both financially and in terms of the retailer’s public image among employees and customers.

• Increasing Productivity per Store. Brouwer reports that while all Home Depot, Lowe’s and Menards locations are roughly the same size, Menards’ stores often earn less per store. By increasing productivity and sales at existing locations, Menards could close the gap.

• Closing Loopholes. Menards has been able to reduce its taxes by arguing that its stores should be taxed as if they are empty, not as operational businesses with full, diverse inventories. Tax loopholes in several states have allowed Menards and other retailers to diminish their tax burdens, but as states tighten regulations, Menards’ costs will also increase.

• Adding Distribution Centers. Menards currently has at least 11 distribution centers. The retailer could add facilities where it does not currently have a brick-and-mortar presence to facilitate deliveries and better serve markets outside the company’s Midwest base.

• The Independent Sector. Independent operators, including businesses with Ace Hardware, Do it Best and True Value branding, run successful stores near many Menards locations, and often have reputations for better service and higher quality products.

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360

The Financials

Menards’ Revenue and Retail Sales, Over Time 2010

2011

2012

2013

2014

2015

2016

Revenue (dollars in billions)

$6.95

$7.17

$7.9

$8.3

$8.7

$9.5

Retail Sales (dollars in billions)

$7.2

$7.6

$9.3

$8.7

$8.3

$10.7

Sources: Forbes, Hardware Retailing estimates

6 Years of Growth: Store Counts

Number of Stores

325

305

306

2016

2017

297 300

285

2013

2014

270

275

250

285

2012

2015 Year

Sources: Menards, Hardware Retailing estimates

John Menards’ Increasing Net Worth 2010

2011

2012

2013

2014

2015

2016

2017

Net Worth (dollars in billions)

$5.2

$4.5

$6.0

$7.5

$7.9

$9.2

$9.4

$9.9

Forbes 400 List Rank

Source: Forbes

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Menards on Its Home Turf

Thomas Kemp Professor and Chairman, University of Wisconsin-Eau Claire

Thomas Kemp, Ph.D., is a professor and chairman of the department of economics at the University of Wisconsin-Eau Claire. He has a doctorate in economics from Colorado State University.

Hardware Retailing (HR): How would you describe the economic role Menards plays in Wisconsin? Thomas Kemp (TK): Menards is the dominant home improvement chain, certainly, here in Eau Claire. They’re also the single largest employer in the city employing around 3,000 people, so of course they have a huge economic impact on our local economy because of that.

HR: Menards is one of the largest private companies in the U.S. How does that benefit Wisconsin? TK: I think it benefits the state because the

HR: What are Menards most effective growth strategies? TK: It seems to me that Menards is remarkably in tune with their particular value prospect. That’s likely the key to their success in terms of growing or maintaining profitability. That value prospect seems ridiculously simple, but it seems to work: Whatever they can provide at a competitive cost, whatever retail segment that is, they’ll pursue it. It’s known as a home improvement chain, but my family gets its laundry detergent and other household things from Menards more than any other store.

HR: What benefits does Menards derive from being headquartered in Wisconsin? TK: They’ve been here since the beginning of

control is local. Because Menards is based here in Wisconsin, their interests are—to some extent—in line with the needs of the state, so I think that’s helpful locally. Their roots from the very beginning are closely tied to Wisconsin.

the company, so they do have deep roots here. But generally in Wisconsin, they have access to a well-educated, low-cost workforce to draw from. Housing is very affordable here compared to other locations in the Midwest, which is likely another benefit.

HR: In your opinion, what are Menards’ greatest strengths as a company? TK: I think their greatest strength is being flexible

HR: What are some of the biggest challenges Menards has faced in its history? TK: Over the years, their challenges with various

in terms of their business plans. I’ve grown up with Menards my whole life, and they always seem to be in tune with what a community needs. If they notice that another retailer is doing something that they think they can do better, they go ahead and do that, even if it’s not totally central to their core mission of home improvement.

regulatory agencies have probably been difficult. Menards is pretty tight-lipped about their internal practices and lots of other things. As a private company, they don’t have to disclose much and by and large, they don’t.

“I think their willingness to offer products that aren’t traditional for a home improvement chain will increasingly serve them well over time.

”

168

For example, they generally carry a line of foodstuffs and that’s consistent with their broader business plan of offering relatively high-quality products at low prices. They’re very creative with product lines.

HARDWARE RETAILING | May 2018

HR: What opportunities and challenges do you see for Menards in the future? TK: I think their willingness to offer products that aren’t traditional for a home improvement chain will increasingly serve them well over time. In terms of challenges, I think their industry is likely to continue to be strong. People talk about “the end of brick-and-mortar retail,” but I don’t think that’s super applicable to them. Certainly online competition will pose a challenge to some degree, but customers just aren’t going to buy two-by-fours from Amazon.

Menards’ Market and Opportunities

Anne Brouwer Senior Partner, McMillan Doolittle

Anne Brouwer, Wisconsin-based senior partner at retail consulting firm McMillan Doolittle, offers her perspective on Menards. Brouwer serves on the National Retail Federation Associate Member Council and belongs to other retail organizations.

Hardware Retailing (HR): Can you describe the average Menards consumer? Anne Brouwer (AB): In general, I would say their customer is probably not too different from those of Home Depot and Lowe’s. Menards’ customers are often looking for a lot of the same products and services. There are a number of markets where these stores overlap, and in those markets, a Menards’ customer might be slightly more price-sensitive.

HR: What is Menards’ position among its major competitors? AB: When you talk about Menards, they’re clearly No. 3 after Home Depot and Lowe’s. But they’re a regional player and often about one-tenth of the overall size of these major competitors in terms of earnings. There’s a significant difference in the productivity among these three companies. Most of these companies have 200,000-square-foot stores, but Menards brings in $10 to $12 million less per store.

HR: What opportunities can Menards capitalize on in the coming years? AB: One of their biggest opportunities is to look at how to increase the productivity of each store, rather than building new stores, which is costly. I think Menards’ opportunities fall into three main areas. One is improving operational excellence, which starts with recruiting and training the right kind of people with the right kind of skills. It includes improving their processes, in-store and beyond, and it includes their ability to solve problems and deliver a satisfactory solution to customers. Another area is in information and data management. That involves an underlying combination of systems and analytics and access to accurate, timely information. The third area is culture. Menards has a reputation for not necessarily always being a happy place to work or a satisfying place for customers,

particularly post-purchase. These challenges are not unique to Menards; many retailers need continuous improvement in these areas.

HR: Can you discuss Menards’ e-commerce presence compared to Amazon and direct competitors Home Depot and Lowe’s? AB: I think you could argue that they’re lagging behind in that area. This is clearly one area that represents an opportunity for them. It’s an area that’s tough for all retailers, not just Menards, because so much is changing so quickly, and the consumers are often far out in front of a retailer’s current capabilities. It’s a huge investment of resources. It’s time, money, skills and access to the right solutions.

HR: You’ve called Menards a “regional player.” What benefits come from sticking to certain regions as opposed to expanding? AB: It takes huge investments to open new stores. Unless you have a model that gives you a break-even and return on investment, new stores can sometimes give you a temporary boost, but not always a sustainable long-term model. In the last few decades, lots of retailers expanded too quickly and now have too many stores, leaving them needing to shrink their retail footprint because they need to invest in other touch points to match customers’ needs. The second advantage of staying regional should be to more deeply understand their trade area and tailor their products and services to meet that demand. They should, theoretically, be able to outmaneuver national chains that might not be able to understand or capitalize on differences between regions. If you look at home improvement, we already have two very strong national players and strong independent competitors and local specialists like lumberyards and plumbing, kitchen and lighting product suppliers. You have to ask whether there really is room for a third national player in these markets. There may be opportunities in mid-size markets for companies like Menards, where Home Depot and Lowe’s would never invest.

HR: What value does Menards derive from being a private company? AB: Menards has a lot more leeway to run with different kinds of margins, operating profits and net profits than a public company that’s constantly being hammered by the markets and challenged by analysts who expect faster growth and higher profits.

May 2018 | HARDWARE RETAILING

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Leading With Me What Retailing Has Taught Gina Schaefer About Leadership

n March, A Few Cool Hardware Stores, headquartered in Washington D.C., celebrated its 15th anniversary. That amount of time may seem short compared to retail operations that have been around for generations. But during those years, owners Gina Schaefer and Marc Friedman have grown the business from one location to 12 with more than 280 employees. Today, the husband-wife duo shows no signs of slowing down. For Schaefer and Friedman, fast growth has required a style of leadership that isn’t afraid to let go of some control. Their business consists of convenience-style hardware stores scattered throughout urban Washington, D.C., neighborhoods. Each store is custom-made to meet the unique needs of its local community. Each is run by a store manager empowered to make decisions about what is best for that location. While letting go of some control may seem frightening to some business owners, Schaefer believes it’s been essential to the growth of her business. It’s also one of the marks of a strong leader. Growing and managing a successful, multilocation operation takes a lot of hard work and strong leadership, not only from yourself but also from those around you.

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While Schaefer and her husband have been developing staff to help run their stores, she has distinguished herself both locally and nationally for her insights on leadership. She has served on the board of directors for a variety of organizations, including her co-op, Ace Hardware, and several nonprofit organizations. Currently, she is on the board of the multibillion dollar company CCA Global, a co-op whose holdings include the Carpet One Floor & Home chain of stores. She has presented on the topics of customer service and leadership to companies across the country. In the community, she is a vocal advocate of buying local and urban growth. In 2011, the North American Retail Hardware Association named her one of its Top Guns, an award given to best-in-class retailer operators. On the following pages, you can look deeper into Schaefer’s perspective on what she feels every retailer needs to know to be an effective leader. And since an important part of her work has revolved around teaching others to lead, two of her team members will share how they’ve developed their own leadership styles.

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Trust Your Employees It may be both a flaw and a strength, but Schaefer admits she and her husband are both very trusting people. “I know that can get you into trouble with some people, but at the same time, because we are trusting, we’ve been able to work with some cool people throughout the years,” she says. Trust is a critical characteristic of a leader. If you can’t trust those you’ve hired, then you might need to rethink why you’ve hired them. If you do have that trust, then you can make tremendous progress in your business. “There’s a little bit of vulnerability involved,” she says. “You can’t teach trust, but as a leader it’s an important trait. If you can hold on to that trust, then magical things can happen.” The best example Schaefer can point to is the challenge of expanding a business to multiple locations. Many business owners struggle with opening the second location because they want to be in two places at once. They’ve either not found an employee fit to run the second location, or they’re unwilling to relinquish control to someone else. However, learning to trust an employee to make critical decisions will free up your time. That attitude shines through in Schaefer’s decision-making process. While she and her husband are ultimately in charge of the business,

they are always seeking input from their leadership team. “There’s not always one easy way to solve a problem,” she says. “And some people assume that the boss is going to come down from on high and dictate what is going to be done. But I truly believe work is a collaborative effort.” She wants her leadership team to have input on matters that affect the entire company, just as she expects their support for the final decision that is made. One of the reasons Schaefer can put so much trust in her team is that she’s been careful to develop their skills. Most of her leaders come from within the company, so they usually have hands-on experience with many parts of the operation. Managers receive leadership training at an off-site program offered by their co-op. There are also monthly management meetings that include a leadership training component. For employees who aspire to move up in the company, Schaefer will put together an individualized development plan that shows the steps they need to complete and the skills they need to acquire to reach their goal.

Become a Stellar Motivator Supporting the communities surrounding her stores is something Schaefer does every day, so it’s no surprise that her first exposure to business leadership was through nonprofit organizations.

Schaefer’s employees embrace a set of core values that forms the foundation to their approach to customer service.

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Throughout high school and college, she worked for a nonprofit in event management and development, and she expected that to be the trajectory of her career. When she moved to Washington, D.C., as an adult, it was to join a nonprofit organization. That experience tempered her perspective on how leaders motivate. “Managing a business and a nonprofit has many similarities, but when you start managing a team of people who are doing something for very little financial compensation, you develop good motivational skills,” she says. Those working for a nonprofit are less likely to be working with a paycheck as the end result, as the pay is generally low. Rather, they tend to be working for some greater good. That sense of a more intangible goal has to be the source of inspiration, especially when juxtaposed against a low wage. In fact, Schaefer discovered that not all employees are motivated by wages alone. After working for nonprofits, she spent time working for a technology firm at a time when that industry was experiencing a bit of volatility. As a member of the human resources department, Schaefer says her job was to try to keep employees from leaving to go work

somewhere else. “People were jumping ship daily because other companies were throwing money at them,” she says. “We built a game room, threw parties, took trips, all to keep employees, who were already very wellcompensated, from leaving the company.” Today, she draws on both experiences when it comes to engaging her staff. Schaefer wants her employees to be well-compensated. She pays a higher-than-average wage for retail (she’s actually a vocal advocate for raising the minimum wage) and offers a range of benefits, such as a health care plan, profit sharing and a 401(k) program. She also wants the store to be a fun place to work. “We do a lot of really fun stuff, whether it’s offering discounted movie tickets or throwing summer picnics,” she says. But Schaefer also realizes that, similar to her time in the nonprofit sector, motivation needs to come from a deeper sense of mission. Her business operates on a set of eight core values, such as “communicate respectfully,” “be an awesome team member” and “embrace and drive change.” Just as those in a nonprofit look to their mission statement for direction and motivation, Schaefer holds up those eight core values as the code for all employees. Motivated employees are happier, too. There’s a trickle-down effect that starts at the top and goes all the way to the customer. Good upper-management leaders inspire good store managers, and if those managers lead well, they create happy employees. If employees are happy, then they treat customers like they want to be treated. Happy customers mean more sales.

Never Stop Learning

Schaefer wants her stores to be fun places to work, so she offers several perks, including paying higher than the minimum wage.

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One of the greatest misconceptions leaders may have about themselves is that they shouldn’t ask for help, says Schaefer. “We don’t know everything and we can’t think we know everything,” she says, adding that it’s important to look around for opportunities to learn. To start, be aware of your weaknesses as a leader. Schaefer says her strengths lie in her ability to see the big picture, to cast a vision. She doesn’t much enjoy the details or the numbers side of the business. She’s thankful her husband is willing to run the finance department. But she also knows it’s important for her to keep her skills in that area sharp. “I knew that to be a good leader, I needed to fill the gaps in my knowledge,” she says. About three years ago, she hired a business coach to increase her knowledge of finances, even though her husband would continue to run the department.

Taking the Lead Mark Wasson Inventory Manager, A Few Cool Hardware Stores Some of Schaefer’s leaders at A Few Cool Hardware Stores spend a lot of their time behind the scenes. Mark Wasson oversees inventory for all 12 stores and works with managers at each location. He’s helped open 10 of the locations. A leadership role was something he grew into over time. Here’s what he has to say about his experience. Where I Started My first job was unloading the truck one day a week as a part-time employee when I started with the company 13 years ago. Eventually, I moved into the plumbing and electrical departments. Then I got the chance to help set up the store’s automated ordering process. I moved on to an assistant manager position but was still involved in the inventory process. As Marc and Gina started opening up new stores, I helped with each one to get the inventory up and running in addition to my other duties. Then, eight years ago, I went full time as the company’s inventory manager. I’ve grown into this position mainly by taking on more responsibility as it was offered. When I started, I never would have guessed I would someday be in charge of maintaining and ordering inventory for 12 stores, but I saw the opportunity and ran with it.

Mark Wasson (left) works with employees, including Carl Banks, to help them understand the company’s inventory process.

manage our inventory, so there is some training that goes on. But spending that time is about more than just knowledge. I want to create open lines of communication with all employees.

How I Learned Gina has invested in me by sending me to training around the country. At the Top Gun retail training at Ace Hardware, for example, I really started learning leadership skills. We’ve also had an outside consultant come in to work with our team. Something else that was very valuable was taking the DiSC® assessment, a tool that helps us understand each other’s personality differences. That test gave us a lot of insights into how we could interact and communicate with each other more effectively.

One of the most challenging parts of being a leader is also one of the most rewarding. Marc and Gina give us a lot of freedom to plot our own course. I get to use my own judgment on what I think is important and what I should prioritize. They want to know what I’m doing, but they let me run with my plans. I think this model is great for effective leaders. It allows you to think outside the box and does not limit the possibilities. Even if it’s something that doesn’t end up working, it allows for creativity.

How to Be an Effective Leader Communication and building relationships is key. I spend time with every new hire as part of the onboarding process. Everyone in the company has a role to play in helping us effectively

Finally, I think it’s important for a leader to lead by doing, not by telling. I’ve never asked anyone to do anything I’ve not done myself. That’s one of the most effective teaching tools I have, being able to share my experience.

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Creating a team environment means offering ways for employees to share their own ideas. When that happens, employees can feel they are making meaningful contributions to the company.

In addition to personal development, there’s a lot to learn by studying the careers of others who have been successful in business. In fact, Schaefer utilized a leadership coach to work with her entire leadership team. For three years, the coach came in once a quarter and led the team through a variety of exercises to help them develop and refine their leadership skills. Schaefer looks for opportunities to expand her own knowledge anywhere she can. A few years ago, she was accepted to a program called Leadership Greater Washington. It’s part of a network of leadership groups across the country. Along with networking and learning from a cohort of leaders outside of her industry, Schaefer learned more about a wide range of topics that were pertinent to her local business community. And what else does she do? “I admit I’m a bit of a leadership nerd,” she says. “I read books, listen to podcasts, whatever it is that can help me be better.”

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Identify Leaders to Admire In addition to personal development, there’s a lot to learn by studying the careers of others who have been successful in business. When Schaefer gives a presentation to another group of retailers, she will often share stories about leaders who have influenced her in some way. While there are many Schaefer says have been an inspiration to her, a few rise to the top, and they are all from outside the home improvement industry. Paul Saginaw and Ari Weinzweig are business partners who formed Zingerman’s Delicatessen, a family of businesses in Michigan. Schaefer met them at a leadership conference several years ago and quickly resonated with their commitment to their community. While the two had aspirations to become a large company, they wanted to stay local and grow by promoting leaders from within their company. “They are a very large and successful company, and they’ve created a lot of good leaders,” she says. “They’ve helped me home in on my mission to be fiercely urban as I think about growth.” Another leader who’s stimulated her creativity is Judy Wicks. Wicks is a former restaurateur from Philadelphia and author of the book

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“Good Morning, Beautiful Business.” After selling her business, the White Dog Cafe, which she operated for 30 years, she’s now busy as a speaker, blogger and activist. “Judy grew her business by holding a lot of events,” says Schaefer. “I really started building events into our marketing plan after reading her book and learning more about her story.” Finally, Schaefer admires the leadership of Howard Brodsky and Rick Bennet, co-CEOs of CCA Global, a multibillion-dollar company that started the Carpet One Floor & Home chain of stores. “Howard is a true visionary, a risk taker who is not conservative when it comes to investing in new companies or giving young people chances,” Schaefer says. In addition to their willingness to take risks, Schaefer also sees the cooperation between the two in their role as co-CEOs as a model to follow. It’s unusual for a company to be run by co-CEOs. But the two offer a great example of what can be achieved by working together. “They’ve been able to put their egos aside and work together,” she says. “They have a very healthy mutual respect for each other, which is apparent when they’re in the same room.”

Get Out of Your Store Retailers who want their businesses to grow need to make sure they’re staying relevant. Those who don’t risk getting left behind in an increasingly competitive business environment. “Our industry is changing quickly,” Schaefer says. “The competition is always better funded, smarter and more present. If we stand a chance to survive, we need to be constantly asking ourselves and our team, ‘What do we need to do to be better?’” She believes home improvement retailers need to not only be thinking about nuts and bolts, but also about any product or idea that could strengthen their competitive edge. Whenever she is at a trade show or buying market, she is looking for those products that have nothing to do with hardware that might be the next hot niche for her business. She also spends time talking with business owners in other fields, asking for their perspectives on how they are improving their own operations. “Get outside the hardware world. Don’t be afraid to try something new, whether it be products or events,” she says. Also think about hiring employees with experiences outside of the hardware industry. Continued on Page 183

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Schaefer (second from right) advocates for independent retailers in a variety of ways, including a series of meetings where she discussed employment topics with business owners from around the country.

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Taking the Lead Noe Delgado Store Manager, Glover Park Hardware Noe Delgado has been with Glover Park Hardware, one of the A Few Cool Hardware Stores, since 2010. He hasn’t always been a store manager, but starting out as an entry-level employee and moving up through the ranks has given him both hands-on knowledge of every part of the operation and respect from his employees. Where I Started I started working at Glover Park Hardware during college. It was only going to be a temporary job, but after graduation, I realized I really enjoyed working at the store and wanted to run my own store someday, a place where I could put my own vision. So I started moving up the ranks and began taking on some leadership roles. There’s almost no job in the store I haven’t done. One of the most important roles I’ve had was as an inventory coordinator. If you don’t have the right items on the shelf, customers aren’t happy, so someone who understands inventory is a true asset to the company. That experience taught me a lot, and soon I had the opportunity to move to assistant manager, then eventually to manager. How I Learned One of my biggest challenges was getting the confidence I needed to lead, but Marc and Gina helped by providing a lot of training. We went to workshops at Ace Hardware, where I was able to learn from others in my position. I visit other stores whenever I can to get ideas for my own store. We also had a consultant come teach us how to deal with difficult situations. Those classes were amazing in how they helped manage people. What’s also helped me the most is having a staff behind me, supporting and encouraging me. How to Be an Effective Leader To be an effective leader, the first thing you need to do is listen to your staff. Understand their learning styles, because not everyone operates at the same pace. If you think you have employees who are struggling, that doesn’t always mean they don’t want to learn. It’s important to first be patient while you understand everyone’s strengths and weaknesses.

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While being a store manager includes a variety of responsibilities, Noe Delgado (right) believes communication with employees is critical to being an effective leader.

Communication is critical. Be transparent with your staff, communicate with them daily and get them involved. Ask for their opinions and feedback. We have store meetings every quarter so everyone understands what’s happening at the store and what we’re planning. Encourage leaders in your staff. There are usually people who want to move up and take on lead roles. Even if those positions are not available, let them know you want to help them grow. It’s easy for people to get too comfortable and not want to take on extra responsibility. So I will sit down with those prospective leaders and make a list of what they need to learn to move up. When I learn something new, I pass it on. I give them constructive criticism, so when there’s an opportunity, they’re ready.

Continued from Page 180

Leadership Resources From NRHA For example, while Schaefer often promotes from within her company, several months ago when she was looking for a new director of operations, she found someone working for a company that ran fitness facilities. “If I were just looking for a person who ran a hardware store, I would have gotten the same type of person everyone else had,” she says. “But I wanted someone from a niche market who would give us a completely different perspective.”

Be Open to Criticism Everyone likes a compliment, but a critical assessment of what might be going wrong is what will make you better. That’s something leaders especially need to understand, says Schaefer, so she’s been intentional about seeking outside perspectives to her business. She is part of a group of seven other Ace retailers in various parts of the country who have committed to helping each other improve their businesses. They’ve each spent many days traveling to each other’s stores, taking a hard look at the operations from top to bottom and offering their honest evaluations. There’s enough trust in the close-knit group that they’re not afraid to be brutally honest. “The point of the exercise is not to tell each other how great we are, but to tell each other our faults,” she says. “And it’s painful. The first time they came to my store for a critique, I went home and cried!” But the next day, she got to work. She wanted to correct the issues the group had found as soon as possible. To be successful in business, it’s important to keep moving forward and look for ways to improve. “You can talk to anyone in our group and they will tell you they’ve grown through the experience, because we’ve all told each other what we need to do better,” she says. It’s a tactic any retailer can use, even if you don’t have the resources to fly across the country to visit another business. Look for other small business owners in the community who are willing to honestly critique your operation and let you return the favor. Sometimes even a customer or family member can offer valuable insights. Some larger retailers run by a board of directors will reserve a spot for someone outside the company to offer a fresh perspective on the inner workings of the business. It’s easy for any retailer to grow blind to problems after being in the store day after day. Letting in an outsider to uncover those issues will make sure you’re not leading your business in the wrong direction.

Want to connect with others in the industry and develop your own leadership skills? NRHA has a way to help. To learn more about any of these programs, visit nrha.org or contact Tom Marcum at tmarcum@nrha.org. • Foundations of Leadership Program Students in this 16-week online course will learn key concepts of leadership and personal development. • Retail Management Certification Program This six-month, college-level course is focused on teaching business concepts to the next generation of owners and managers. • Roundtables These events allow retailers a venue for discussion around an important theme, such as human resources, finances or marketing and merchandising.

Each store in the A Few Cool Hardware Stores family is anchored in an urban neighborhood.

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Marketing: Building a Brand

By Todd Taber, ttaber@nrha.org

Pressing Play on Your Brand How Creating Simple Videos Can Help Tell Your Story

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hen you say your business’s name, what comes to mind? More importantly, what comes to mind for your current shoppers and potential customers? “A brand is no longer what an ad agency says about you in a clever TV jingle,” Dennis Yu, chief technological officer of BlitzMetrics, says. “A brand is the sum of the positive and negative experiences everyone in your community has regarding your business—customers, partners and employees.” In his role with BlitzMetrics, Yu trains students on digital best practices to manage campaigns for several high-profile clients, including the Golden State Warriors, Rosetta Stone and Nike. Yu says that today, a company’s overall brand is far more than a single ad or shopping experience. Yu’s insights have been featured in The New York Times, The Los Angeles Times and on NPR, and he regularly contributes to AdWeek’s SocialTimes column. Yu says retailers can use Facebook—what he calls the most efficient social media platform—to build their brand, brick by brick and click by click.

Understanding Brand Basics Yu stresses that under his definition, it’s the customer who helps define and amplify your brand. “If you don’t provide a good experience to your customers, whether that’s at the point of sale or post-purchase, no amount of marketing is going to overcome that,” he says. “I think that’s where a lot of traditional brands are struggling. They try to crank up the ad machine when the issue is that they’re not taking care of customers. If you have a broken bone, a massage isn’t going to fix it.” Yu recommends that retailers view every online interaction, every photo click, every like, as a way of building their brand. “A review isn’t just going on Yelp or Google; it’s whenever they engage with you online or offline,” he says. “Whether that’s liking your latest post or telling their friends about you, those are all micro reviews that are brand-building opportunities.” Although building your brand includes telling your story through a variety of media outlets, such as TV and in print, it also encompasses your business’s online reputation. Above all, Yu emphasizes the importance of creating unique, original video content for Facebook. “The brands that win on Facebook are those that recognize that they have to systematically produce video. Video is no longer a side project that you hire an agency for—it’s core to marketing these days.”

Cultivating Your Brand Yu has great news for independent retailers: They have an advantage over big boxes when it comes to building a brand on an authentic, organic level.

Dennis Yu, chief technology officer for BlitzMetrics, says independents should share their expertise and create community connections online.

“A brand is the sum of the positive and negative experiences everyone in your community has regarding your business—customers, partners and employees.

”

—Dennis Yu, BlitzMetrics

“Independents can be more intimate in their relationships with customers,” Yu says. “They don’t have to worry about a brand in the same way a big box does. Independents need to tell a story.” Yu recommends that retailers stay on the lookout for teachable moments in their stores. What are your customers asking for when they visit? Yu says the answers to these questions can help retailers create a series of nine short videos that build their brand and boost their sales all while engaging customers. “When you amplify stories of people in your town—it could be the mayor, or the local soccer team or anyone else—that’s something a national big-box retailer can’t compete against. They can’t get down to the local level and tell those stories in the same way you can,” Yu says.

Going on the Grid Yu says that Facebook has reconfigured the algorithm it uses to display content. Now, posts from family and friends are often displayed near the top of your newsfeed as opposed to posts from business pages. Continued on Page 188

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Funneling Customers Toward a Purchase Yu recommends retailers create a series of nine videos to build awareness, spur engagement and finally drive sales. Check out the prompts below to help you get started.

Consider your business’s highlights, then grab your smartphone and start recording. Be brief, be informative and be ready to see increased traffic online and in-store.

Row 1—The Why Take common questions you hear in your store and provide answers.

Awareness

Engagement Video 1

Video 2

Video 3

How can customers best tackle popular home renovation projects?

How can customers protect their homes against severe weather?

How can you make a big home improvement splash on a small budget?

Conversion

Row 2—The How With these videos, tell customers who you are and what your business means to you, and connect with the local community in an honest way.

Awareness

Engagement Video 1

Video 2

Video 3

Why did you start your business?

Why do you love your local community?

Why is supporting independent business vital?

Conversion

Row 3—The What Here’s where retailers do what they do best: sell. Use this final set of videos to actively promote new products, specials and services.

Awareness

Engagement

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Video 1

Video 2

Video 3

What items are on sale for the first time in months?

What products have the biggest discount in your store?

What new features does the latest line of power tools include?

HARDWARE RETAILING | May 2018

Conversion

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Continued from Page 185

One way businesses can effectively overcome this algorithmic shift is to embed photos and videos in their posts. Facebook gives greater prominence to these kinds of posts, so Yu recommends retailers adapt accordingly and start incorporating as much multimedia content as possible to stay visible while building brand recognition. But it’s critical that retailers do this carefully and precisely. “Most people hear about the importance of videos on Facebook, and they think they have to

“No one wants to sit there for

20 or 30 minutes; people want to consume video in bite-size segments. When you sequence it in a checklist, customers can move toward the goals you’ve set. —Dennis Yu, BlitzMetrics

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”

go live all the time,” Yu says. “It’s a lot like so many New Year’s resolutions where people go to the gym a lot but quit after a few weeks. Retailers say, ‘I tried that and it didn’t work.’ But it didn’t work because they didn’t have a plan.” Yu recommends retailers use a 3x3 video grid to build their brand through video. (See the graphic on Page 186.) He describes the grid as nine separate 60-second videos. The first three videos focus on brand awareness, the next center on engagement and the final trio creates conversions. He says these categories also align with the “why,” “how” and “what” of your business. According to Yu, the grid can act as a funnel that aims for sales and positive brand connotation. First, it introduces customers to your store and your employees, then encourages them to see your business as a reliable expert in the field, and finally leads them to specific products and services you offer to drive conversions. “Eighty percent of Facebook videos are watched on smartphones,” Yu says. “No one wants to sit there for 20 or 30 minutes; people want to consume video in bite-size segments. When you sequence it in a checklist, customers can move toward the goals you’ve set.”

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HARDWARE RETAILING | May 2018

Yu advises retailers to be patient with their Facebook videos as they build their brand. He says many retailers only focus on the final set of videos, those which focus on the actual products and services their businesses offer, but that’s a mistake. “You have to go through the courtship of building relationships as you build your brand,” he says. “That takes time and investment, but the good news is that it’s affordable and only takes a few minutes of your time.” The 3x3 video grid also gives retailers a manageable data set to examine as they build their online brand. By reviewing which videos get the highest views and engagements, retailers can quickly learn which type of content resonates with their audience and adjust future videos accordingly to capitalize on that interest.

Defending Your Brand After you’ve created videos to help consumers recognize your operation’s unique brand, Yu says the next step is entering the brand maintenance stage. He advises retailers keep track of which videos have performed the best historically.

These videos are great options for future paid Facebook promotions, which Yu says are extremely affordable. For just a few dollars, retailers can pay to boost a high-performing post that introduces new audiences to your brand and has an established track record of success. “The videos that perform best are like your greatest hits—they’re evergreen content that’s always applicable. It’s not like a post about a Mother’s Day sale that fades away,” Yu says. Yu says that unlike online opportunities, traditional advertising has limitations in building your brand. Often, print ads only focus on sales and don’t give customers a true view of your individual brand. Retailers shouldn’t rely on traditional advertising alone to build brand recognition among prospective customers. In the end, building a brand comes down to independent retailers having the patience to create engaging, unique content that consistently resonates with audiences. “It’s like planting a seed,” Yu says. “And that doesn’t mean you have to blindly wait. You can watch the seeds grow over time.” For more information on how videos can boost your brand, visit TheRedT.com/3x3-videos.

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Merchandising: Cross Merchandising

By Jesse Carleton, jcarleton@nrha.org

Locations That Sell How Cross-Merchandising Leads to Add-on Sales

ou may have heard it from real estate agents. What sells a house? Location, location, location. It’s not much different in your store. Where a product is placed on the salesfloor can have a big impact on how well it sells. Every product belongs to a department. But then there are the times when you switch it up. You pull products from the in-aisle places where they normally live and put them in a place where shoppers don’t expect to see them. That’s the power of cross-merchandising. Strategically locating certain products in multiple locations can dramatically increase sales. It’s also a convenience for customers, as they can get more of what they need all in one place. It prompts an impulse sale at just the moment a customer is ready to buy. This strategy was a big success during the North American Retail Hardware Association’s (NRHA) Merchandising for Profit Study, conducted in 2017. For example, the study found that a clipstrip of work gloves got a 25 percent boost in sales when merchandised near the garden tools, away from all of the other gloves. Putting that same clipstrip of gloves on an endcap with lawn chemicals boosted sales 177 percent. You can read the full study at TheRedT.com/merch-for-profit. Cross-merchandising works because you’re presenting the right products in just the right places. You can use the strategy to encourage add-on sales, impulse buys and project purchases. You’re getting into your customers’ heads and asking, “If they’re going to buy product A, wouldn’t they want to buy product B as well?” To inspire you to find cross-merchandising opportunities in your own operation, Hardware Retailing editors gathered photos and insights from retailers who have effectively used this valuable strategy. Examine your store and think about how you can begin relocating merchandise for higher sales.

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The Real Shocker! One of these stories is actually true!

SMALL STORE IN CANTON, GA SELLS OVER $167,000 OF COLE’S BIRD SEED EVERY YEAR! That’s an amazing amount of bird seed. Even more amazing, the whole store is only 2,000 square feet and the Cole’s products use a mere 40 square feet. Do the math. That’s over $4,000 per square foot of retail space. Is this one lucky store owner? No, luck has nothing to do with it.

IS THIS STORE THE TOP COLE’S RETAILER? NO, NOT EVEN IN THE TOP TEN! — BUT WAIT, THERE’S MORE — Not only is this store selling Cole’s at an unbelievable rate, but - are you ready for this it rarely, if ever, puts Cole’s on sale!

They sell 11,000 bags a year at full price.

That’s a lot of sales. That’s a lot of profit! ®

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HARDWARE RETAILING | May 2018

Look for something unique.

Change with the seasons.

Encourage a project.

Not every product you suggest as an add-on sale needs to be part of your core hardware mix. Ryan Flaherty, store manager at Balsam Lake Hardware in Balsam Lake, Wisconsin, has added garden hats as a natural accompaniment to his garden department. “We look for ways to place fun or unique items that are going to catch the customer’s attention,” he says. “The hat, for example, makes them want to grab it and put it on.” If he can first get customers to stop and pick up the item, he’s brought them one step closer to the sale. He carries that philosophy throughout the store. Near his hunting and fishing department, he offers snacks, such as chips, salsa and trail mix.

At Cottonwood Hardware Hank in Cottonwood, Minnesota, ice melt, snow shovels and cold-weather hats and gloves (just across the aisle) are a natural fit. Owner Ben Andersen leaves them up front, where it’s easy for shoppers to see them. “It’s important to follow the season when you’re thinking about cross-merchandising,” he says. “Think about the needs of the customer and how you can encourage impulse purchases.” Retailers with small spaces can use the power aisle to put cross-merchandising to work. That area is where you are able to bring together larger items too, such as lawn furniture, grills and coolers.

One of the most effective ways to use cross-merchandising is to promote project sales, and there’s more than one way to do that. Merchandisers such as clipstrips can help combine two products that might be used together. Product signage can provide a checklist of items a customer needs, too. At Brewer’s True Value in St. Peters, Missouri, aisle violators offer an explanation of how to use certain plumbing fittings and suggest other items used to complete the project. While product checklists don’t get actual products in front of the customer, they give them important information, save space and will help drive customers into other parts of the store.

Embellish pallet displays.

Find destination items.

Make a scene.

Pallet displays in a wide aisle of the store are already guaranteed to catch shoppers’ attention, so why not make the most of them? At the Buchheit chain of stores in Missouri and Illinois, a simple wooden frame holds a sidewinder, typically used on endcaps. These merchandisers can then be stocked with items that pair with the product on the pallet. They don’t take up much space, either. Since pallet displays convey a low-priced image, shoppers may be more likely to add an extra item to their carts if they believe they are already saving money. This method is also a great way to promote new or related items from the same categogry.

If you sell greeting cards, take a cue from convenience drugstore chain Walgreens. This retailer realizes that many people purchasing a birthday card also want an easy gift, and gift cards are a popular choice. Placing a few gift cards alongside the greeting cards gives shoppers an instant gift idea and makes it easy for them to get everything they need at one spot. As you are developing your cross-merchandising strategy, start with the destination item, or where the customer is likely to go first. Then, consider the entire project that might surround that item and look for an inexpensive item that might go well with it. Even a small add-on sale can boost your store’s average transaction size.

Big-box retailer IKEA is famous for its vignette displays showing the layout of an entire apartment. But this type of display doesn’t have to take up a lot of space. IKEA also uses just a few items to create a scene, as shown here. It’s a technique used frequently by building materials retailers, too. Show the products you’re selling within the context of how they could be used together. By merchandising this way, you offer customers ideas they can take home. It also displays multiple items. For example, for a display of patio furniture, set the table with dishes from your housewares department, beverages from your snack aisle and flowers from your live goods area.

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Think like a decorator. Customers walking into the paint department at Connolly’s Do it Best Hardware in Fort Wayne, Indiana, may have more than just painting walls on their minds. Owner Michael Connolly wants to make the most of their time in that area by promoting products from other areas of the store. There’s a display of high-end kitchen mixing bowls nearby. While there’s no project connection between the bowls and paint, the display is intended to appeal to customers most likely shopping in that area. “We’re in the decorating business,” he says. “We operate the paint department with that in mind. There are a lot of women shopping that area, so as they’re looking at paint and wallpaper, we’re giving them something else to consider.” He’s also placed a display with special-order cabinet hardware near the paint chip racks. Changing out the hardware on a kitchen or bath cabinet can enhance what the painter is already doing in the room. It’s an add-on many might consider while they’re thinking of redecorating.

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Use existing space. Creating cross-merchandising opportunities doesn’t always mean finding extra shelf space. Often it’s just an embellishment of the space you already have, which makes it easier if you’re limited by a small salesfloor. Football fans at Vickie Davison’s store, Bloomington Hardware located in Bloomington, Indiana, take tailgating seriously. So if a tailgater is looking for a grill, Davison makes a simple suggestion— why not buy an Indiana University (the local university) spirit flag to go with it? She only needs to display a single flag, and the space required is minimal. If you want to be more effective at add-on sales, predict what your customers might need. “Cross-merchandising is simply thinking about the customer’s total needs, whether it’s putting glove warmers with gloves, lighters with grills and tiki torches, or disposable gloves with anything messy,” she says. Learn to fill up spaces in such a way that you’ll make the extra sale.

BOOTH # 10147 May 2018 | HARDWARE RETAILING

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By Renee Changnon, rchangnon@nrha.org

On the Road Again Highlighting Independent Retailers Along the Mississippi River

itting the open road and embarking on a journey is something you have to do at least once in your lifetime. Whether you’re excited to see roadside attractions or you dream of watching the sun rise above the Grand Canyon, a road trip creates lasting memories. Imagine experiencing those adventures while patronizing only local businesses, including home improvement stores, along the way. My name is Renee Changnon, and I’m the profiles editor at the North American Retail Hardware Association (NRHA). In March, I joined small-business advocacy group Independent We Stand for its annual road trip as NRHA’s representative. It was my third time hitting America’s highways with Independent We Stand, and I was excited for the journey that lay ahead. The Great American River Road Trip had

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our team traveling 1,400 miles along the Mississippi River with many stops along the way. The purpose of this trip, and everything Independent We Stand represents, is to promote independently owned businesses and to share the impact America’s Main Streets have on local economies. This road trip showed me, once again, that what makes a city or town great is its unique, independent businesses. Yet to keep these businesses thriving, consumers must make shopping locally a priority. Small businesses across the country are showing resolve and creativity in the face of unprecedented online competition, proving their value and enriching communities each day. To read all of my blog posts from each day of the trip, go to TheRedT.com/IWS-road-trip-2018. Now hop in the car and join me on my trip along the Mississippi River!

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Day 1

While in Minnesota, we visited Hirshfield’s, a family-owned paint and wallcovering business that’s been in operation for over 125 years. We met CEO Hans Hirshfield (left), and his daughter, Samantha Hirshfield, who is learning the ins and outs of the business.

fter weeks of planning and coordinating with Independent We Stand, the Great American River Road Trip was here. On Sunday, March 11, I flew from Indianapolis to Minneapolis-St. Paul, ready for our adventure.

Travel Itinerary Minneapolis-St. Paul, Minnesota, to La Crosse, Wisconsin Miles Traveled: 150 Hotel: The Charmant Independents Visited • Jerry’s Do it Best Hardware & Rental • Hirshfield’s • Fair State Brewing Cooperative • Aki’s BreadHaus Food and Fun • 12welve Eyes Brewing • The Bulldog • Holy Land Bakery and Deli Fun Fact: The Mississippi River stretches from northern Minnesota to the Gulf of Mexico. While many cities lie along the river, St. Paul boasts more shoreline than any other city.

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We stayed at Hotel 340 in St. Paul, Minnesota, an independent hotel located inside a historic building, which dates back to 1917. I think it’s remarkable that someone found a way to save this timeless building from being leveled and gave it purpose again. That night, I met up with Bill Brunelle, co-founder of Independent We Stand; Katherine Seibt, communications manager for the organization; and videographer Scott Sonnenberg for dinner and planning before Day 1 kicked off. Our first stop Monday morning was at Jerry’s Do it Best Hardware & Rental, located in Eden Prairie, Minnesota, in a building connected to an independent grocery store. As I chatted with employees, they told me the history of the business. In 1947, Jerry Paulsen was the neighborhood butcher in Edina, Minnesota. When the grocery store he worked in was put up for sale, Paulsen decided to buy it, eventually naming it Jerry’s Foods. Over the years, his businesses continued to thrive, and he added hardware to create several one-stop shop destinations. Paulsen died in 2013, but his legacy remains. His company, Jerry’s Enterprises, operates four grocery stores named Jerry’s Foods, has several franchised grocery stores, including Cub Foods, County Market and Save-A-Lot; five hardware stores, bakeries, print shops and more.

Learning about Paulsen and his accomplishments was inspiring. His story is just another example of the great things independent retailers have done and are continuing to accomplish. At the store, I also got to talk to the manager, Trent Pearson, who has been a part of the business since 1998. “Our products and services at Jerry’s are different than a big box in the way that they’re tailored specifically to the communities we’re located in,” Pearson says. “Being an independent retailer, we’re able to be more in touch with the community.” After visiting Jerry’s, we went to a variety of businesses, including a cooperative-owned brewery, an independent paint store and a bread shop. We had lunch at Holy Land Bakery and Deli, which was on the popular Food Network show “Diners, Drive-Ins, and Dives.” By early afternoon, we started the first leg of our road trip, heading to La Crosse, Wisconsin, for the evening. For a more detailed look at all the businesses we visited in Minneapolis-St. Paul, visit TheRedT.com/trip-mn.

At Jerry’s Do it Best Hardware & Rental in Eden Prairie, Minnesota, I had the chance to talk with store manager Trent Pearson (right) about the business.

THE COMPANY INC.

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Day 2

While traveling to different locations, several local television stations reached out to spread the word about Independent We Stand and the importance of shopping locally. In Davenport, Iowa, Bill Brunelle (right) answered questions for a segment on the local evening news.

fter the first day of the Great American River Road Trip came to a close in Minnesota, we arrived in La Crosse, Wisconsin, and went to The Charmant, a luxury boutique hotel. The building is a renovated candy factory, which was built in 1898 and was in operation for 35 years.

Travel Itinerary La Crosse, Wisconsin, to Davenport, Iowa Miles Traveled: 187 miles (337 total) Hotel: The Current Independents Visited • The Silver Key Tattoo • The Brewed Book • Abernathy’s • The Full Kit Food and Fun • Simply Coffeehouse & Eatery • Up Bar • Me & Billy Kitchen and Bar Fun Fact: Ronald Reagan began his career as a radio broadcaster in Davenport, Iowa, before moving to Hollywood to be an actor and eventually becoming the 40th president of the U.S.

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This was one of my favorite hotels, and it wasn’t just because I received chocolate during check-in. The interior design choices were carefully made to capture the golden era of candy manufacturing. For example, a picture box with candy tins that were used to package the chocolate manufactured in the building was showcased in my room. On Tuesday, we continued to Davenport, Iowa. By early afternoon, we began our second day of visits. This was the only day that we did not visit a hardware or home improvement business, but we discovered other wonderful independent businesses. One of my favorite stops was at a used bookstore and cafe called The Brewed Book. We met Tony Fuhs, who opened the shop with his son Trevor when he retired. They purchased a vacant building in Davenport’s Hilltop Campus Village and had a lot of work to do before opening. Fuhs says they worked with architects and construction companies to update the building. At the store, we met Scott Tunnicliff, director of the Hilltop Campus Village, a Main Street Iowa Urban commercial district. He says revitalizing buildings to house businesses like The Brewed Book makes a bigger impact than new construction. After a long day of retail visits, we checked in at The Current to rest before heading on to Cape Girardeau, Missouri, in the morning. For a more detailed look at all the businesses we visited in Davenport, visit TheRedT.com/trip-ia.

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Day 3

While in Cape Girardeau, Missouri, we met Tammy and Fred Elias, owners of Elias Ace Hardware. They spoke about how they met, operating their family business and the many ways they support their community.

fter a six-hour drive from Davenport to Cape Girardeau, Missouri, we made our way to Elias Ace Hardware. Store owners Fred and Tammy Elias were there to welcome us.

Travel Itinerary Davenport, Iowa, to Cape Girardeau, Missouri Miles Traveled: 380 (717 total) Hotel: Drury Plaza Hotel Cape Girardeau Conference Center Independents Visited • Elias Ace Hardware • Heroes Way • Crader Distribution Co. Food and Fun • The Southerner by Tractors Fun Fact: Travelers had to use ferries to cross the Mississippi from Missouri to Illinois until the state built a bridge in 1928.

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They shared how they met working in Fred’s family hardware store, got married and had children. The business was founded in Illinois, and they later opened a second location in Cape Girardeau, which is now their only location. They say Cape Girardeau is the place they plan on staying the rest of their lives. Customers return because the business not only stocks much-needed items, but also offers hands-on demonstrations, Fred says. According to Tammy, that advantage stems from having knowledgeable employees. “We have a great team who genuinely likes being around people and will go the extra mile for our customers,” Tammy says. “Customer service is huge. We provide the extra level of service you won’t find in the big-box stores.” Scott Crader, co-general manager of Crader Distribution Co., the exclusive distributor of STIHL Outdoor Power Equipment in Missouri, Kansas, Nebraska and southern Illinois, stopped by the store, too. As a family business operator who serves other family businesses, including Elias Ace Hardware,

he was able to share the importance of not only shopping locally but also buying quality equipment from independent businesses, which is where STIHL equipment is exclusively available. Our last stop of Day 3 of the Great American River Road Trip was at The Southerner by Tractors, a southern-style restaurant in Cape Girardeau. We met the owners, Steve and Teresa Blankenship, who share their love of good food with the Cape Girardeau community. The new restaurant is the Blankenships’ second culinary venture after previously opening a restaurant in Jackson, Missouri. After visiting with Steve and Teresa, we enjoyed dinner at The Southerner. The food was mouthwatering and the atmosphere and design was very eye-catching. Conveniently, the Southerner was attached to the Drury Plaza Hotel Cape Girardeau Conference Center, which is a family-owned hotel chain that opened its first hotel in Cape Girardeau. For a more detailed look at our day in the town, visit TheRedT.com/trip-mo.

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Day 4

Our first stop in Memphis, Tennessee, was in a commercial neighborhood called the Memphis Medical District. We met several entrepreneurs who were getting their start, like Brian Christion (left) of Shab Chic Marketplace, a creative market and social hub.

n the fourth day of our road trip, we made our way from Cape Girardeau, Missouri, to Memphis, Tennessee. The trip was half way over, but we were still excited to see what the rest of our destinations along the Mississippi River would have in store for us.

Travel Itinerary Cape Girardeau, Missouri to Memphis, Tennessee, to Greenville, Mississippi Miles Traveled: 322 (1,039 total) Hotel: The Lofts at 517 Independents Visited • Paulette’s Closet • Shab Chic Marketplace • Germantown Hardware & Paint Food and Fun • Central BBQ • Downtown Grille • Doe’s Eat Place Fun Fact: Elvis got his start in Memphis where he recorded his first album at Sun Studios. His home, Graceland, is the second-most visited house in America, after the White House.

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My oldest brother Nick lives in Memphis, so coming into the city I had high expectations, but was blown away by all of the entrepreneurial-minded people who call this city home. We spent some time in an up-and-coming neighborhood called the Memphis Medical District. We met with several business owners who were doing whatever it took to gain a foothold in the retail marketplace. One of the owners we spoke to set up shop in a shipping container, and others were leasing space before setting up a permanent shop. Talking to these driven individuals who had such a spark in their eyes when they spoke about their goals and dreams was inspirational. You can’t visit Memphis without getting your hands on some barbecue, so we had to visit Central BBQ downtown. We pulled up to the restaurant and saw a line around the building. That’s when I knew the food was going to be legendary. While there, we met Felix Vega, manager of the downtown location. He spoke about the restaurant’s popularity and what makes their barbecue so tasty. He even gave us a behind-the-scenes tour through the kitchen. After we ordered our lunch, we enjoyed our meal at the bar where we were able to continue talking to Vega about food, barbecue, and the finish line of our whirlwind road trip.

Not just a source. We are the solution. BLISH-MIZE Atchison, KS Clay Uhrmacher · (800) 995-0525 Ext. 124 sales@blishmize.com · www.blishmize.com States Served Include: KS, MO, IA, NE, IL, CO, WY, SD, NM, OK, TX, AR FLORIDA HARDWARE Jacksonville, FL Michael Zody · (800) 793-0926 Ext. 2015 www.ﬂoridahardware.com States Served Include: FL, GA, AL, NC, SC HDW, INC. Marshall, TX Jimmy Horne · (318) 382-8009 www.hdwinc.com States Served Include: TX, LA, TN, AL, MS, AR, MO, OK, NM, CO, FL

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HOUSE HASSON HARDWARE Knoxville, TN Pat McCutcheon · (800) 333-0520 www.househassonhardare.com TN, PA, OH, IN, IL, AR, KY, MS, AL, WV, VA, NC, SC, GA, AL, MS, FL, Carribean MONROE HARDWARE Monroe, NC Matt Patti · (800) 222-1974 Ext. 7701 www.monroehardware.com States Served Include: NC, SC, MD, VA, DE, TN, GA, AL PACOA Port Washington, NY David Steuerman · (516) 284-3050 www.pacoa.com States Served Include: NY, NJ, MA, CT, NH, VT, DE, RI, ME, MD, PA UNITED HARDWARE Plymouth, MN Chad Ruth · (763) 559-1800 www.unitedhardware.com States Served Include: MN, WI, MI, ND, SD, ID, MT, KS, MO, NE, IL, IA, CO, UT, WY

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Day 4 (continued) Before leaving town, we made our way to Germantown Hardware & Paint, in Germantown, Tennessee. We talked to two employees, including Mary Faulk. Our visit with Faulk reminded me how much independent retailers not only give back to their communities, but also how they support their employees. For example, when Faulk lost her home to a devastating fire, the team at Germantown Hardware & Paint was there for Faulk. “The first thing store owner Justin Wagner did for me was set up a fundraiser on GoFundMe,” Faulk says. “Justin helped make sure we got all the things we’d need for our home. I love every one of my co-workers with my whole heart. They’re like family.” After leaving the store, we had a few more hours on the road before we arrived at the Lofts at 517, a hotel located in downtown Greenville, Mississippi, in a Sears Building constructed in the 1940s. Overall, it was an eventful day, and I got a better understanding of the Mississippi Delta. For more about our day in Memphis, visit TheRedT.com/trip-tn.

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On the fourth day of our trip, we visited Germantown Hardware & Paint in Germantown, Tennessee, where we met key employees.

High-Profit vs. Typical Store

10.4% 4.2% Net Profit Before Taxes At High-Profit Stores

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Average Transaction Size At a high-profit store, the average transaction size is $30, while the average at a typical hardware store is $22. Do you know how your business compares? Participate in the 2018 Cost of Doing Business Study to receive a free Personalized Financial Analysis, and to see how you measure up to typical and high-profit retailers in the industry.

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Day 5

Holmes Building Materials in Baton Rouge, Louisiana, welcomed our team to the store. We met John Holmes (left) and his son Matthew, who he owns and operates the business with. They spoke about their deep support for their employees.

ur last day on the road required another early wake-up call. We packed our bags and began our trek to Baton Rouge, Louisiana. Our first visit was to Holmes Building Materials, where we met John and Matthew Holmes, the father-son team that runs the family-owned home improvement business.

Travel Itinerary Greenville, Mississippi to Baton Rouge, Louisiana, to New Orleans Miles Traveled: 361 (1,400 total) Hotel: Alder Hotel Independents Visited • Holmes Building Materials • Mike’s Hardware and Supply • Massey’s Professional Outfitters Food and Fun • Angelo Brocato’s Original Italian Ice Cream Parlor • Wayfare Fun Fact: New Orleans is often called the Crescent City because of the distinctive curve of the Mississippi River that runs right through it.

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John and Matthew told us about the company’s history, how they support their employees and what they did after the destructive flooding that occurred in the summer of 2016. Many of the employees at Holmes Building Supply were directly affected by the flood, and several lost their homes from the floodwaters. But the support of their employer and fellow employees helped them find their footing even after a natural disaster. It was so uplifting to see how close all of the employees were to each other and their deep gratitude for the help that the John and Matthew provided. After spending time with them and seeing their store, we left for our last location: New Orleans. We met with Lee and Robert LaFleur, brothers and second-generation owners of Mike’s Hardware and Supply. They spoke about their experience through Hurricane Katrina and how the business helped hundreds of people in the aftermath of the storm. They also spoke about the power of being independent business owners and why they love what they do. “Our father built this business in hopes that one day we would show an interest and want to take over, and we did,” Robert says. “I think he’s very proud. It’s enjoyable to be able to make decisions and call the shots without having to go through anyone else.”

Our last stop along the Great American River Road Trip was at Massey’s Professional Outfitters, a local business that offers clothing and outerwear. We met Mike Massey, owner of the business and founder of Locally, a website that connects brands to local businesses. The website shows shoppers where products and brands they want are in stock in their communities. He and his colleague Mark Strella spoke about the concept and how it brings brands and retailers together to drive commerce. Once we ended wrapped up our final visit, we made our way to the Alder Hotel, where we rested before heading home after a long week on the Great American River Road Trip. Our group grabbed dinner near the hotel at Wayfare to celebrate our trip and reflect on the many great businesses and the hardworking, diligent and creative entrepreneurs we met along the way. During the trip, we visited with more than 25 independent retailers who all have something their communities rely on. For more about our last day in Louisiana, visit TheRedT.com/trip-la.

The last hardware store we visited on the trip was Mike’s Hardware. We met brothers (from left) Lee and Robert LaFleur, second-generation owners of the business.

WARRANTY 1 YEAR

By Renee Changnon, rchangnon@nrha.org

Bucking Tradition Hardware and Outdoor Goods Business Grows Customer Loyalty

rowing up in Croghan, New York, Jake Buckingham enjoyed spending time outside, especially if it meant he was hunting, fishing or camping. During high school, he worked part time at his cousin Todd Buckingham’s hardware and sporting goods business in town, Buckingham Hardware & the Great Outdoors. While working, Jake discovered his other passion—helping people solve problems. While working at the store, Jake had the opportunity to talk with other serious outdoors people, but he also enjoyed helping customers figure out how to tackle their home improvement and repair projects. Through high school and college, Jake continued his part-time position at the store, eventually working full time before starting a job working in forestry for the state. However, his journey with retail was not over yet. After a few years, his cousin approached him with an opportunity he couldn’t pass up.

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“Todd asked me if I would be willing to help him open, operate and manage a second location he was considering purchasing,” Jake says. “Even though I had been out of retail for a while, I was ready for the challenge.”

A New Opportunity On Christmas Eve 2013, the Buckingham cousins closed on the space where they would open up shop in Blossvale, New York. They immediately began renovation projects, yet they remained open for customers through it all. However, coming up with a name for this second location took some time and a little extra creativity, Jake says. “Like the other store, the new location was going to offer a mixture of sporting goods products and hardware,” Jake says. “In the community, hunting and fishing are really popular, and our hardware goods are needed all year. Todd, my wife and I wanted to incorporate the hardware and outdoors aspects in the name. After lots of brainstorming, we came up with Bucks & Bolts Hardware & Outfitters.”

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“I like making the hard

decisions and figuring out solutions to challenges we face. Running the business works with my personality. No day is the same here!

”

—Jake Buckingham, Bucks & Bolts Hardware & Outfitters With the last name Buckingham, and a love for hunting, among many outdoor adventures, Jake knew it was the perfect name. Although Todd owns the business, it is completely managed and run by Jake. “Todd has given me full range of the store,” Jake says. “I like making the hard decisions and figuring out solutions to challenges we face. Running the business works with my personality,

because I don’t enjoy doing the same thing day in and out. No day is the same here!” Jake didn’t have previous experience as a manager, but with the help of Chad Hirschey, manager of Buckingham Hardware & the Great Outdoors, as well as his cousin, Jake was able to learn the ropes by asking questions. However, he learned the bulk of his new position by educating himself through books and on-the-job learning. “Even though I had worked in the other hardware store, I didn’t realize how much goes in to managing a business until I took on the responsibilities,” Jake says. “I handle billing and receiving, I’ll set up the employee schedule, and if technology is acting up, I act as the tech guy to troubleshoot a problem before calling someone to the store.” Bucks & Bolts Hardware & Outfitters has a staff of eight people, and Jake says they are a very tight-knit group. To help the team do their job to the best of their abilities, Jake says he is always on the hunt for a variety of tools and resources they can use.

Bucks & Bolts Hardware & Outfitters is Todd Buckingham’s second store, which his cousin Jake Buckingham manages. The store serves local customers as well as seasonal vacation tourists who make a point to visit the store every summer, Jake says.

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Attracting Customers, Rewarding Loyalty Like many places with extreme changes in weather, the seasons in central New York make a big impact on which products will fly off the shelves, especially when it comes to sporting goods and outerwear. In the winter, ice fishing is the sport of choice and fall is when the hunting crowd gears up for a new season. Summer brings hardware product demands along with a larger customer base—the population doubles in the summer with an influx of tourists who visit Sylvan Beach, Jake says. “Our business is very busy in the summer with tourists, but because we have hardware and sporting goods that cross all the seasons, the departments balance each other out,” he says.

At Bucks & Bolts Hardware & Outfitters, most of the store’s customers are extremely loyal. With the help of a company that specializes in handling retail rewards programs, the business launched an app for users to track loyalty points and get special in-store deals.

To continue to improve the business, finding new products and niches is a priority. Recently the store added a greenhouse, selling annual plants in the fall, and live Christmas trees and wreaths in the winter. To keep customers coming back, both stores share a loyalty program that started organically and has become a database with thousands of members, Jake says. “In the beginning, we collected everything for our loyalty program by hand,” Jake says. “However, by the time we had 6,000 members in our program’s database, which was plugged in manually on spreadsheets, the monthly rewards took a large chunk of time to go through. We looked into many different systems and found one that works for us. Through that program, we introduced an app to customers as well.” With assistance from the rewards company they began working with, the app was designed to allow loyalty program holders to sign into their accounts to review transactions and manage their loyalty points. At both stores, Jake says the rewards program has helped increase sales, and it allows them to target specific customers and demographics. They send out coupons and rewards to customers for their loyalty, which in turn leads to store visits and more money spent at the store.

May 2018 | HARDWARE RETAILING

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“We’ve also been testing

out Google’s My Business, which is a service that shows you how many times a month people search key words, in our case ‘Bucks & Bolts.’

”

—Jake Buckingham, Bucks & Bolts Hardware & Outfitters Staying Social Online and In-Store Not only does the Bucks & Bolts team stay in touch with customers through the rewards program app, but social media is another avenue Jake says they’re continuing to explore. “Social media is free, so we do what we can to create a presence online,” Jake says. “My wife is very active on social media, so she’ll help with the Facebook page. We’ve also been testing out Google’s My Business, which is a service that shows you how many times a month people search key words, in our case ‘Bucks & Bolts.’”

In addition to his wife’s ideas, Jake also brainstorms with his employees on how to best use their Facebook page. From an employee’s suggestion, they began posting polls to get customer feedback on things they’d like to see in the store, or other questions they come up with. After the first year of business, they held a grand opening in May and had a great turnout. The event went so well that it’s become an annual customer appreciation day, held every August. “Our customer appreciation event is really an entire weekend of festivities,” Jake says. “We offer deep discount sales, we bring in vendors, we’ll have book signings and we have a free barbecue, which is a big draw as well.” Just as the loyalty program has drawn more business, the annual customer appreciation event always boosts sales, especially in a time when seasonal tourists head home and business starts to slow, Jake says. Jake says they have hosted other events at the store, like a Christmas tree celebration, and a Small Business Saturday event, but they’re continually looking for new ways to attract customers. “We would like to increase our business with contractors,” Jake says. “No matter what, we want our customers to know we’re a hometown store.”

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In August, Blossvale, New York, residents visit Bucks & Bolts Hardware & Outfitters for its annual customer appreciation event, which is a weekend celebration offering in-store discounts and free barbecue.

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GIVE SUPPORT, GET SUPPORT Vendor Partners Help NRHA Build a Better Future

ndependent retailers represent a significant segment of the overall home improvement industry, and there are many organizations and companies that are committed to its success. To help connect manufacturers and vendors to the independent channel, the North American Retail Hardware Association (NRHA) created its Vendor Partner Program. Through the program, companies that are already in the home improvement space can give back to independent retailers. The support that these organizations provide, through advertising in Hardware Retailing and other methods, is invested back into NRHA programs that are tailored to the specific needs of retailers like you. The resources that the Vendor Partner Program benefits run the gamut from industry-specific research, like the annual Cost of Doing Business Study,

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to retailer training and networking programs, like the Retail Leadership Institute. Each year, NRHA researches industry trends that impact independent retailers and compiles the data into studies that help retailers run more efficient operations. The NRHA Retail Leadership Institute provides advanced, industry-specific training opportunities for retailers who are looking to further their careers. These resources are made possible in part through the Vendor Partner Program. On the following pages, you will see the list of NRHA’s current Vendor Partners. NRHA encourages retailers to thank these companies for their ongoing support of the independent channel. If you are a manufacturer or vendor interested in joining the NRHA Vendor Partner Program, you can contact Nick O’Connor, director of vendor programs, at 317-275-9409 or noconnor@nrha.org.

Embrace your industry peers. NRHA represents all independent home improvement retailers, regardless of wholesale affiliation. Through your association, you can connect with other business owners who experience the same challenges and opportunities you do.

Grow your network. Get involved today! NRHA offers themed roundtables, educational conferences, events and retail-specific leadership development programs. Connect with NRHA to learn what options are best for your business needs.

“NRHA is made up of people of who have the same values and are looking for the same things you are. The programs are geared toward our core values.” Adriane Naillon | Wilco JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

Nearly a decade ago, NRHA established its Vendor Partner Program. As Vendor Partners, the companies listed here support a variety of NRHA initiatives, including industry-specific research, comprehensive training and more through advertising and other investments.

focused on retailers

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Vendor Partner

Contact Us For more information about the program, contact Nick O’Connor, Director of Vendor Programs, at 317-275-9409 or noconnor@nrha.org.

May 2018 | HARDWARE RETAILING

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Newsmakers

Shifting Marijuana Laws Daze Employers

s of May, 30 states and the District of Columbia allow some form of legalized marijuana, including eight states that allow marijuana use without a doctor’s prescription. This year’s midterm elections could bring another wave of legalization as voters in six states decide on marijuana ballot measures. For employers, the increasing access to legal marijuana is posing new challenges. While voters have moved to legalize marijuana in certain states, it remains illegal on the federal level. Because of this discord between state and federal law, the Society for Human Resource Management (SHRM) notes that employers across the country need to review their existing policies and determine for themselves how to navigate federal and local laws. Hardware Retailing consulted SHRM and Jim Reidy, an attorney with Sheehan Phinney and director-at-large for SHRM in New Hampshire, where the possession of small amounts of marijuana was recently decriminalized. Reidy and SHRM offer insight on how shifting marijuana laws are impacting the workplace and what retailers should know to safeguard their operations. 1. A One-Size-Fits-All Policy Isn’t Ideal SHRM advises employers to review their company policy regarding marijuana use. Reidy recommends employers craft workplace policies that cover specific positions, especially those that involve customer interaction or operating heavy machinery or specialized equipment. “Employers who manage safety-sensitive positions will have to tailor policies to those positions and their own expectations. Policy also needs to reflect the company’s culture and performance expectations,” he says. 2. Testing Poses Problems Reidy says that testing for marijuana and other controlled substances is possible via hair, urine and blood tests. Employers are legally allowed to test for controlled substances whenever they wish but some testing methods do pose potential problems, he says. “Employers can test post-offer and pre-employment, but based on reasonable suspicion, they can also test after an accident or randomly,” he says. But because marijuana can stay within a user’s system for up to a month after being smoked or ingested, he says it’s difficult to test for impairment at specific times.

Upcoming Events May 8-10 National Hardware Show® Las Vegas

8-10 NRHA All-Industry Conference Las Vegas

18-21 Do it Best Spring Market Indianapolis

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

July 27-29 United Hardware Buying Market Minneapolis

August 14-16

3. Employers Need to Take Action SHRM suggests retailers review their existing workplace policies with legal counsel or local organizations to determine if they’re following state and federal law while maintaining a safe and welcoming workplace for employees and customers. “Whether it’s used for medical or recreational purposes, applicants and employees in increasing numbers will likely use marijuana at some point. Employers need to look at their policies and determine what legal obligations apply,” Reidy says.

Independent Garden Center Show Chicago

16-18 Ace Hardware Fall 2018 Convention & Exhibits Chicago

23-25 Orgill Inc. Fall Dealer Market Las Vegas

Jim Reidy has legal experience pertaining to labor and employment law with an emphasis on assisting employers to effectively avoid and defend against disputes. He has represented several organizations ranging from multinational corporations to not-for-profits and family-owned businesses.

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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.

Ace Hardware CEO Focuses on ‘Rational Optimism’ The Ace Hardware Spring 2018 Convention & Exhibits brought together independent retailers, vendors and Ace corporate personnel in an environment designed for easy product ordering and sharing information. TheRedT.com/ace-spring-2018

Lowe’s CEO Niblock Announces His Retirement A big change is coming to the Lowe’s Cos. leadership team— longtime chairman, president and CEO Robert A. Niblock has announced plans to retire. The board of directors has begun the search for his successor, and Niblock will remain in his role with the company until the new leader is named. TheRedT.com/lowes-ceo-retires

tariff on steel imports and a 10 percent tariff on aluminum imports. TheRedT.com/steel-tariffs

The show featured a wide selection of innovative products from the kitchen and housewares categories. TheRedT.com/housewares-chicago

Sherwin-Williams, Lowe’s Announce Partnership

CANADA

Lowe’s is becoming “the only nationwide home center to offer top-selling stain brands” from Sherwin-Williams, including Minwax, Cabot and Thompson’s WaterSeal, according to Lowe’s. TheRedT.com/sherwin-williams-lowes

BMR Grows Agrizone Farm Store Banner, Supports Unimat

Sears Continues to See Dropping Sales and Revenue Sears Holdings’ year-end financial results for 2017 reflect falling sales and revenue, continuing a pattern of dipping numbers for the retailer. Revenue for the company was $16.7 billion for the year, down from $22.1 billion in 2016, according to the retailer’s annual report. TheRedT.com/sears-2017

House-Hasson Names New VPs House-Hasson Hardware, America’s largest independent regional hardware distributor, has named John Sullivan as vice president of retail development and Taylor Hasson as the company’s vice president of marketing. TheRedT.com/house-hasson-vps

Enthusiasm Jump-Starts Blish-Mize Buying Market Spring break means the beginning of the warm season, a reason to get excited for better weather. Blish-Mize tapped into that enthusiasm to present its retailers with plenty of great prices and fun during its Spring Buying Market, held in Overland Park, Kansas. TheRedT.com/blish-mize-market

Amazon Buys Smart Home Company Ring for $1B In an attempt to get deeper into the growing smart home market, Amazon has been digging into its pockets to invest in and acquire several companies, including smart home manufacturer Ring. TheRedT.com/amazon-ring

Big Boxes Aim to Close Skilled Labor Gap Home Depot is investing $50 million to train 20,000 skilled laborers by 2028. Lowe’s is giving employees up to $2,500 to pursue specialized skills education. TheRedT.com/labor-gap

The Potential Impact of Steel Tariffs In March, the U.S. initiated tariffs on steel and aluminum imports, with initial exceptions made for imports from Canada and Mexico. The Trump administration imposed a 25 percent

Independent Retailers Find High-End Housewares in Chicago Visitors to Chicago’s 2018 International Home + Housewares Show found products designed to steam, saute, clean, store and simply impress.

Groupe BMR has grown its Agrizone farm concept and supports its farm and hardware dealers. Agrizone, started out primarily as a store-within-a-store concept, but now has 10 stand-alone stores, says Pascal Houle, president of Groupe BMR.

RONA Rolls Out Parcel Delivery for Online Purchases RONA now offers parcel shipments, allowing customers to shop online and have their orders delivered almost anywhere in the country in one or two days. This new service complements the in-store pickup and truck delivery services introduced in 2017.

TIMBER MART President’s Product Scarcity Concerns During the recent TIMBER MART buying show in Montreal, group president Bernie Owens spoke on the importance of maintaining product availability for customers. He says the potential for shortages during the start of the spring season could be one of the major issues facing dealers this year.

Ace Canada’s VP Bill Morrisson Details Urban Plans Urban retailers face many challenges as they manage their operations. According to Ace Canada’s vice president Bill Morrison, the company is prepared to open stores in major urban markets. He says new investors “are excited about the urban potential.” For the full story of these briefs, visit hardlines.ca/hardwareretailing.

May 2018 | HARDWARE RETAILING

221

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 six-month college-level program is 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

AD INDEX

224

Abatron Inc. ...................................................... 47 www.abatron.com; 800-445-1754

Distribution America....................................... 205 www.daonline.com; 704-940-4801

Independent Garden Center Show ...Polybag, BC www.igcshow.com; 800-727-9254

Ace Hardware................................................... 33 www.myace.com; 630-990-6900

Diversey.......................................................... 189 www.diverseybrands.com; 980-221-3235

International Products Group.......................... 206 www.ipgsales.net; 561-948-4632

Ajax Wire Specialty Co. Inc. ............................. 89 www.ajaxwire.com; 855-966-2529

Do it Best Corp............................................ 16-17 www.independentsdoitbest.com; 888-364-8237

IPG.................................................................. 131 www.itape.com; 888-898-7834

Ajustco......................................................... 68-69 www.ajustco.com; 855-258-7826

Dutton-Lainson Company............................... 180 www.dutton-lainson.com; 402-462-4141

Jeske Company Inc, ....................................... 199 www.jeskecompany.com; 800-677-3383

Allway Tools Inc. ............................................ 109 www.allwaytools.com; 718-792-3636

ECI Software Solutions ........................... 138-139 www.ecisolutions.com; 800-588-5128

Kness Mfg. Co. Inc........................................... 66 www.kness.com; 800-247-5062

Apache.............................................................. 19 www.apache-inc.om; 866-757-7816

Federal-Mogul Motorparts.............................. 111 www.championautoparts.com; 800-334-3210

LHB Industries.................................................. 79 www.tearmender.com; 800-552-8252

Apex Tool Group, LLC. ............................... 1, 179 www.apextoolgroup.com; 800-688-8949

Fiskars Brands Inc. ......................................... 105 www.fiskars.com; 866-348-5661

Lifetime ................................................... 150-151 www.lifetime.com; 800-225-3865

Benjamin Moore................................................. 7 www.benjaminmoore.com; 855-724-6802

Flame Engineering Inc.................................... 195 www.flameeng.com; 800-255-2469

Lock-tile Industries LLC.................................. 136 www.locktileusa.com; 888-562-5845

Big Green Egg .................................................. 85 www.biggreenegg.com; 800-793-2292

Flexon ...................................French Door Cover www.flexonhose.com; 800-327-4673

Lumax............................................................... 46 www.lumax.com; 844-660-6876

Bird•B•Gone Inc.......................................... 94-95 www.birdbgone.com; 800-392-6915

Franmar .......................................................... 161 www.franmar.com; 800-538-5069

Mars Comfort-Aire.......................................... 121 www.marsdelivers.com

Blue Rhino ........................................................ 75 www.bluerhinoglobalsourcing.com; 800-258-7466

GCI Outdoor...................................................... 203 www.gcioutdoor.com; 800-956-7328

Master Magnetics Inc. ................................... 149 www.magnetsource.com; 888-293-9190

Bonide .............................................................. 42 www.bonide.com; 315-736-8231

GelSeal Technologies........................................ 194 www.gelseal.com; 920-376-5105

Max USA Corp.................................................. 36 www.maxusacorp.com; 800-223-4293

Bosch..............................................................22 www.boschtools.com; 877-267-2499

General Pipe Cleaners, Div. of General Wire Spring Co..43 www.drainbrain.com; 800-245-6200

Merrifield Paint Co............................................ 27 www.maddogprimer.com

Broil King Barbeques ........................................ 61 www.broilkingbbq.com; 800-265-2150

GenTent Safety Canopies............................... 215 www.gentent.com; 781-334-8368

Metaltech Scaffolding ...................................... 35 www.metaltech.co; 800-363-7587

Calico Brands Inc............................................ 181 www.calicobrands.com; 800-544-4837

Hillman Group Inc....................................... 97A-D www.hillmangroup.com; 800-800-4900

Midwest Fastener ................................... 124-125 www.fastenerconnection.com; 800-444-7313

Channellock Inc. ............................................... 63 www.channellock.com; 800-724-3018

Home Improvement eRetailer Summit ............ 73 www.eretailerssummit.com; 203-295-3385

MiTek.............................................................. 167 www.MiTek-US.com; 800-328-5934

Chapin Mfg. ....................................................67 www.chapinmfg.com; 800-950-4458

House-Hasson Hardware Co. ........................... 53 www.househasson.com; 800-333-0520

Mi-T-M Corporation .......................................... 55 www.mitm.com; 800-553-9053

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

Howard Products Inc...................................... 206 www.howardproducts.com; 800-266-9545

Modern Home Products Corp. ......................... 38 www.mhpgrills.com; 888-647-4745

Cole’s Wild Bird Products Co. ................. 11, 191 www.coleswildbird.com; 877-426-8882

HSI.................................................................. 117 www.hardwaresuppliers.com; 800-334-5625

Mr. Longarm..................................................... 54 www.mrlongarm.com; 800-821-3508

Collier Metal Specialties Ltd............................. 34 www.colmet.com; 800-829-8225

Hyde Tools Inc.................................................. 13 www.hydetools.com; 800-872-4933

National Hardware Show.................................. 23 www.nationalhardwareshow.com

Danco ......................................................... 5, 157 www.nextbydanco.com; 800-523-5135

Impress Art....................................................... 49 www.impressart.com/diy; 631-940-9530

NRHA Cost of Doing Business Study..............207 www.TheRedT.com/codb-survey-2018

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

Indeck Ladysmith ........................................... 201 www.grillersgold.com; 715-532-3042

NRHA Health Insurance Plan ...........................211 www.cbigi.com/nrha-program

HARDWARE RETAILING | May 2018

NRHA Membership..........................................217 www.nrha.org/membership

SKM Products.................................................41 www.skmproducts.com; 800-851-8464

NRHA Retail Leadership Institute .................222-223 www.nrha.org/RLI

Southwire Company .....................................163 www.southwire.com; 770-832-4242

NRHA Retail Management Certification Program..187 www.nrharmcp.com

Stihl............................................................58-59 www.stihlusa.com; 757-486-9100

Old Masters.................................................... 115 www.myoldmasters.com; 800-747-3436

Summit .............................................................3 www.summitresponsiblesolutions.com; 800-227-8664

Orgill Inc. ................................................. 228-IBC www.orgill.com; 800-347-2860

Summit Chemical Company ...............................103 www.cowpots.com; 860-824-7520

Paladin Data Corp. ........................................197 www.paladinpointofsale.com; 541-803-6060

Sunnyside Corporation....................................37 www.sunnysidecorp.com; 800-323-8611

Phifer .................................................................. 9 www.phifer.com; 800-841-9473

Superior Pump.................................................. 81 www.superiorpump.com; 800-495-9278

PRO Hardware ........................................ 170-171 www.prohardware.com; 303-792-3000

SureCan USA ................................................209 www.surecanUSA.com; 801-827-0500

ProSource ....................................................... 143 franchise.prosourcewholesale.com; 844-729-4861

Tacoma Firelogs..............................................48 www.tacomafirelogs.com; 253-272-4107

Quikrete.......................................................... 145 www.quikrete.com; 404-634-9100

Tarter Farm & Ranch Equipment ....................29 www.tarterUSA.com; 800-414-2837

Red Devil ........................................................ 137 www.reddevil.com; 800-423-3845

True Value.......................................................25 www.truevaluecompany.com; 888-291-7229

Red Lion ......................................................... 129 www.redlionproducts.com; 844-250-4981

Twist and Seal ............................................. 82-83 www.twistandseal.com; 888-945-4545

Rescue! .....................................................30-31 www.rescue.com; 800-666-6766

UGL ................................................................ 123 www.ugl.com; 800-845-5227

Rust Patrol ......................................................40 www.rustpatrol.com; 704-588-3670

Warner Tool.................................................... 175 www.warnertool.com; 800-444-0606

S-Line by Ancra International ........................188 www.ancra.com; 800-626-8353

Warp Bros. ....................................................... 24 www.warpbros.com; 800-621-3345

Sakrete ........................................................... 133 www.sakrete.com; 214-991-0280

Wastequip ...................................................... 148 www.toter.com; 800-424-0422

Santint.............................................................51 www.santintusa.com; 847-350-6911

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

Scepter ...........................................................21 www.scepter.com; 855-857-3252

Woodland ......................................................... 50 www.pinecar.com; 573-346-5555

Seal-Once .......................................................92 www.seal-once.com; 888-363-2628

Wooster Brush Co.................................... 15, 173 www.woosterbrush.com; 800-392-7246

ShurTech Brands/Frog Tape............................93 www.frogtape.com; 877-376-4827

XTend+Climb.................................................... 91 www.xtendandclimb.com; 612-330-9915

Sika ...............................................................214 www.usa.sika.com; 800-933-7452

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

Simpson Strong-Tie Co. Inc. ...........................65 www.strongtie.com; 800-999-5099

May 2018 | HARDWARE RETAILING

225

Last Word

Snapshots From the Road

Create a Welcoming Entrance Having a well-lit and inviting entrance to your business can make a big impression on your customers and potential customers. Jerry’s Do it Best Hardware & Rental in Eden Prairie, Minnesota, uses crisp, clean signage and highlights a mix of products near the front of the store.

hopping is more than just buying items from a list—it’s also about exploring the store before you. My name is Renee Changnon and I’m the profiles editor for Hardware Retailing. Whether I’m visiting a hardware store for a photo shoot or I’m off the job, design and merchandising ideas grab my attention at every turn. In March, I joined Independent We Stand for its annual road trip as a representative for the North American Retail Hardware Association (NRHA). It was my third time tagging along for the trip, and once again, I had unique takeaways from the journey, which had us travel 1,400 miles from Minneapolis to New Orleans. Check out these photos to see the ideas that stood out to me most on the trip. Perhaps you might get an idea that you can bring into your retail operation. For more on the trip, go to Page 196.

Jump On Board With Creative Displays Unique objects not often seen in a store is another way to grab a customer’s attention. At Massey’s Professional Outfitters in New Orleans, they used a truck tailgate to display items. You could do something similar in your business by thinking of an unusual item that sparks a conversation with customers.

226

HARDWARE RETAILING | May 2018

You Scream, I Scream, We All Scream for... Lighting One of the easiest ways to make a business more inviting is by incorporating more lighting throughout the store. At Angelo Brocato’s Original Italian Ice Cream Parlor in New Orleans, lighting goes beyond illuminating the space; it creates an old-school look and feel.

Show Off Your Store With Creative Details Your store may be well designed and merchandised, but a little creativity can add the finishing touch. All of the shelving at The Full Kit in Davenport, Iowa, is made out of items found in a hardware store. The owner used reclaimed wood and added metal pipes and water spouts for an extra add pop of interest.

Promote and Market Upcoming Events Providing educational events and fun workshops for your customers is a great way to build strong relationships. At Hirshfield’s in Edina, Minnesota, a sign listing in-store events, seminars, classes and workshops marks it as a reliable resource for project knowledge.

Boost Your Employee (or Loyal Customer’s) Ego Showing appreciation for your loyal customers and employees is an easy way to create a positive work and store environment. Fair State Brewing Cooperative recognizes its loyal co-op members each month with a sign in the brewery. Honored employees may receive benefits for the month.

A Direction to Customer Support In order to serve a balance of DIYers and pro customers, provide options for both. At Holmes Building Materials in Baton Rouge, Louisiana, signage helps direct customers to the right area. Any type of customer can visit the service counter to get help they need, so expert help is vital.

May 2018 | HARDWARE RETAILING

227

In With the New Hyde Group category managers bring the art of innovation to the National Hardware Show

Hyde Group’s Christian Michaud, Paint Applicator Category Manager, with a vast array of the products he oversees.

n the heels of the international hardware show in Cologne, Germany, Hyde Group heads next to Las Vegas, where the group’s Construction Division

will showcase hundreds of tools for retailers at the National Hardware Show. It is here that Hyde Group shows its chops, as it has since the very first show in 1945. This year, once again, promises innovation in virtually every category — with new tools in paint, drywall, surface prep, masonry, tile, wall repair, sanding, and airless spray. “Our target is 20% new every year, and we put a lot of resources behind that,” confirms Christian Michaud, Category Manager for the group’s broad array of paint applicators sold under the RICHARD brand. RICHARD,

Visit Hyde Group at the National Hardware Show, Booth #5915 the #1 pro tools brand in Canada, is now penetrating the U.S. market with full paint programs and a variety of products unique to American painters. ®

“Like HYDE , RICHARD is a pro-oriented brand supported by a strong research and innovation process,” notes Corey Talbot, Vice President of Marketing and Product Development. “Our first-

NEW FROM HYDE GROUP Better Finish™ Nail Hole Filler and Wall Repair Kit • 3-year shelf life • Promotes a better finish with less flashing • Easier than spackle to sand & apply

hand knowledge of the pro market definitely informs our new product mix, and many of the new products we offer are significant refinements to painters’ everyday, must-carry items.” Among products being released in both brands this year is a line of joint knives with a flip-up #2 screw bit — the size used by drywall professionals.

9" & 18" Flexi-frame Rollers • Applies uniform pressure • Roller won’t “walk” off frame • Handle rotates from 0° (walls) to 30° (floors)

In airless spray, a new dual head tip extension promises twice the productivity and a better finish for paint pros. HYDE® will also preview a new streamlined version of its RVT® Spray System, which is slotted for release this summer.

HYDE ® Dual Head Tip Extension • Spray twice as fast • Overlaps for better coverage

For DIY markets, two new Better Finish™ wall repair products replace spackle with drywall compound – and in the process eliminate consumers’ top three complaints about drywall repair. “Retailers looking for profitable new items will find them here,” said Talbot, “but they’ll also find

HYDE ® and RICHARD Drywall Knives with Flip-up Bit • #2 Screw bit preferred by drywall pros • 3", 4", 6" and Multi-tool

complete and cohesive category programs that have been created by category specialists. Where we once had several safety knives, we now have a full line. Where we once carried a few innovative dust-free sanders, we now own the category, with a complete

RICHARD Adjustable Mini Roller Frame • Adjusts for edging angle • Smoothest rolling action • Greater accuracy • Soft-grip handle

line of sanders that spans DIY and pro use. “In short,” says Talbot, “We have a two-brand program that’s ideal for North American selling, plus full programs that incorporate new products to meet consumer and pro demand. I call that a win-win, and look forward to bringing new growth to Hyde’s North American retail customers.”

HYDE ® Safety Knives • Top-slide and side-slide versions • Complete line now available

Jackie and Michael Sacks Round Top Mercantile Company Texas

“Orgill is extremely professional, and we know they’re here for us. They stand behind us 100 percent.”

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